Financial Performance - For the first half of 2025, Bairong Inc. reported revenue of RMB 1,611.80 million, a 22% increase from RMB 1,321.35 million in the same period of 2024[9]. - The company's gross profit reached RMB 1,182.43 million, reflecting a 22% growth compared to RMB 967.16 million in the previous year[8]. - Operating profit for the first half of 2025 was RMB 200.89 million, up 28% from RMB 156.83 million in the first half of 2024[8]. - The non-IFRS profit for the period was RMB 254.45 million, with a non-IFRS profit margin of 16%, an increase of 1 percentage point year-on-year[9]. - Net profit for the period increased from RMB 142.83 million to RMB 201.22 million[50]. - For the six months ended June 30, 2025, the company's profit for the period was RMB 201,224,000, an increase from RMB 142,833,000 for the same period in 2024, representing a growth of 40.5%[52]. - The EBITDA for the six months ended June 30, 2025, was RMB 229,314,000, up from RMB 188,835,000 in 2024, marking a growth of 21.5%[54]. - The non-IFRS EBITDA for the same period was RMB 282,539,000, compared to RMB 243,481,000 in 2024, indicating an increase of 16.1%[54]. - The basic earnings per share rose to RMB 0.43, up from RMB 0.30, indicating a 43.3% increase[153]. - The net profit attributable to equity shareholders for the six months ended June 30, 2025, is RMB 190,264,000, up from RMB 139,956,000 in 2024, indicating a growth of 36%[200]. Revenue Segmentation - The revenue from the Business-as-a-Service (BaaS) segment grew by 23% to RMB 1,109.86 million, with the financial industry cloud contributing RMB 856.96 million, a 45% increase[8]. - In the first half of 2025, the company's MaaS (Model as a Service) business recorded a revenue increase of 19% year-on-year, reaching RMB 501.94 million[20]. - BaaS financial cloud revenue for the six months ended June 30, 2025, was RMB 856.96 million, a 45% increase from RMB 589.47 million for the same period in 2024[28][31]. - MaaS revenue rose by 19% from RMB 421.35 million to RMB 501.94 million, driven by expanded application areas and enhanced product competitiveness through AI optimization[40]. - BaaS revenue from the financial industry cloud surged by 45% from RMB 589.47 million to RMB 856.96 million, attributed to strong credit demand and improved operational efficiency[40]. Customer and Market Position - Bairong Inc. serves over 8,000 institutional clients, including major state-owned banks and numerous internet technology companies[12]. - The number of core customers increased to 167, with an average revenue per core customer of RMB 2.28 million, reflecting a 14% growth[21]. - The core customer retention rate improved to 98%, up from 96% in the previous year, indicating strong customer loyalty[21]. - The company is positioned to benefit from the growing demand for digital transformation and AI integration across various industries, as outlined in national policies[14]. - The company has established a strong moat by serving over 8,000 clients and leveraging over ten years of user profiling assets[19]. Research and Development - R&D expenses grew by 33% from RMB 225.88 million to RMB 301.54 million, with R&D spending accounting for 19% of total revenue, up 2 percentage points[44]. - The company has filed 461 patents and software copyrights covering key areas such as artificial intelligence and machine learning as of June 30, 2025[15]. - The company continues to prioritize AI development, focusing on generative and decision-making AI to enhance product offerings and operational efficiency[1]. - The company aims to expand its AI-driven solutions into non-financial sectors such as healthcare, education, and retail, enhancing service matching for B-end and C-end users[1]. Corporate Governance - The company has adopted and complied with the corporate governance code during the reporting period, with the chairman and CEO roles being held by the same individual, Mr. Zhang, to ensure effective strategic planning and decision-making[71]. - The audit committee, consisting of three independent non-executive directors, has reviewed the interim report for the six months ending June 30, 2025, and discussed accounting policies and internal control matters with the independent auditor[77]. - The corporate governance committee has reviewed the company's compliance with the corporate governance code and the disclosure of governance reports, ensuring alignment with the latest regulations[81]. - The corporate governance committee confirmed that sufficient measures are in place to manage potential conflicts of interest between the company and different voting rights beneficiaries[83]. - The company has established four committees: audit committee, remuneration committee, nomination committee, and corporate governance committee, to oversee specific areas of governance[76]. Shareholder Information - As of June 30, 2025, Mr. Zhang holds 73,234,312 Class A shares (100.00%) and 11,065,303 Class B shares (2.81%) through Genisage Tech Inc.[86]. - The company has two active share plans: the 2024 Share Plan and the Restricted Share Unit Plan, with the 2021 plans being terminated[94]. - The total number of issued Class A shares is 73,234,312 and Class B shares is 393,306,579 as of June 30, 2025[86]. - The company reported that 225,000 shares were awarded to the top five highest-paid individuals under the 2021 Share Award Plan[110]. - The company plans to issue new shares for the 2024 Share Plan, with a focus on retaining key talent and incentivizing performance[116]. Cash Flow and Financial Stability - As of June 30, 2025, the company reported cash and cash equivalents of RMB 833.52 million, up from RMB 739.23 million as of December 31, 2024, representing a growth of 12.8%[57]. - The company's cash reserves as of June 30, 2025, were RMB 2,895.78 million, slightly down from RMB 2,917.94 million as of December 31, 2024, a decrease of 0.8%[57]. - The company's debt-to-asset ratio as of June 30, 2025, was 0.15, a decrease from 0.21 as of December 31, 2024, indicating improved financial stability[62]. - The net cash generated from operating activities for the six months ended June 30, 2025, was RMB 150,740 thousand, compared to a cash used of RMB 126,671 thousand in the same period of 2024, indicating a significant turnaround[172]. - The company incurred a net cash outflow from investing activities of RMB 37,348 thousand for the six months ended June 30, 2025, compared to a net cash inflow of RMB 17,701 thousand in the same period of 2024[172]. Future Outlook - The company anticipates continued long-term growth potential as AI capabilities expand across various sectors[19]. - The company aims to enhance its technology capabilities and expand its existing product and service offerings through strategic investments and acquisitions, with RMB 475.56 million earmarked for this purpose[137]. - The company is actively monitoring regulatory developments to ensure compliance with foreign investment requirements in China[143]. - The company has adopted specific plans and will continue to invest financial resources to meet the qualification requirements for foreign investment in telecommunications[143].

MicroPort NeuroScientic Corporation 微創腦科學有限公司 （於開曼群島註冊成立的有限公司） 股份代號：2172 2025 中期報告 (Incorporated in the Cayman Islands with limited liability) Stock Code：2172 MicroPort NeuroScientic Corporation 微創腦科學有限公司 INTERIM REPORT MicroPort NeuroScientic Corporation 2025 微創腦科學有限公司 INTERIM REPORT 2025 中期報告 目錄 | | | 5 公司資料 7 總裁致辭 9 財務摘要 10 管理層討論及分析 34 企業管治及其他資料 43 獨立核數師報告 44 綜合損益表 45 綜合損益及其他全面收益表 46 綜合財務狀況表 48 綜合權益變動表 51 簡明綜合現金流量表 52 未經審核中期財務報告附註 釋義 於本中期報告內，除文義另有所指外，下列詞彙具有以下涵義。 | 「審核委員會」 | 指 | 董事會審核委員會 | | --- | --- | - ...

Financial Performance - For the first half of 2025, the company recorded revenue of approximately RMB 3,653.1 million, a year-on-year increase of 98.8% compared to RMB 1,837.9 million in the same period of 2024[13]. - Gross profit for the same period was approximately RMB 267.2 million, representing a year-on-year increase of 134.0% from RMB 114.2 million[13]. - The net profit attributable to the owners of the parent company was approximately RMB 74.6 million, a significant turnaround from a loss of RMB 34.3 million in the first half of 2024[13]. - The total comprehensive income for the period was RMB 125,312 thousand, compared to a loss of RMB 46,574 thousand in the same period of 2024[132]. - The company reported a net profit of RMB 77.6 million, a significant turnaround from a loss of RMB 41.0 million in the same period last year, resulting in a net profit margin increase from -2.2% to 2.1%[60]. - Basic and diluted earnings per share for the period were RMB 1.83, a turnaround from a loss of RMB 0.84 per share in the previous year[130]. Revenue Segmentation - The EPC segment's revenue increased by 108.5% year-on-year to RMB 3,518.1 million, driven by major construction and equipment delivery phases of key projects[45]. - The petrochemical segment revenue increased by 54.9% to RMB 2,562.2 million, driven by the peak construction phase of overseas projects[47]. - The coal chemical segment revenue surged by 648.0% to RMB 1,101.0 million, attributed to the commencement of major construction phases for domestic projects[48]. - The renewable energy segment reported revenue of RMB 7.3 million, up 386.7% from RMB 1.5 million in the previous year[47]. - Revenue from engineering services accounted for RMB 3,518,056,000, while technical services contributed RMB 135,041,000 in the first half of 2025[155]. Project Developments - The Yangmei One Chemical Synthesis Gas Transformation Project has achieved 100% design completion, 98% procurement completion, and 95% construction progress, with the main project expected to be completed by July 2025[16]. - The Panjin Sanli MMA project has successfully produced qualified MMA and is currently in commercial operation, with the production of qualified acetaldehyde and propanol intermediate products completed by December 28, 2024[16]. - The Guangxi Huayi MTO project has reached 100% design completion, 96% procurement completion, and 78% construction completion, with mechanical completion planned for December 2025[16]. - The Guangxi Huayi 1 million tons/year MTO project is set for mechanical completion by December 2025, establishing a benchmark for domestic methanol-to-olefins technology[26]. Strategic Focus and Investments - The company is focusing on core business areas such as ethylene, propane dehydrogenation (PDH), and methanol-to-olefins (MTO), which continue to develop steadily and contribute to performance growth[14]. - Investment in new energy technologies is being increased, with progress in areas such as biodegradable plastics (PGA) and carbon reduction technologies[14]. - The company aims to accelerate internationalization and green transformation as part of its long-term strategic goals[14]. - The company plans to increase strategic investments in the renewable energy sector and actively seek innovations to strengthen its position in the global energy transition[42]. Market and Economic Environment - The global economic environment remains complex, with China's GDP growing by 5.3% year-on-year, indicating resilience amid challenges[11]. - International crude oil prices fluctuated between $60 and $75 per barrel, impacting the petrochemical industry and prompting a shift towards green low-carbon transformation[12]. Operational Efficiency and Safety - The company achieved a total of 12.7 million safe man-hours across all projects, with no incidents of lost time accidents or environmental pollution[20]. - The company is committed to enhancing digital and modular capabilities to strengthen its core competitiveness in the energy and chemical engineering sector[10]. - The integrated platform project has improved digital and refined management levels across projects, enhancing the efficiency of material coding and document sharing among various stakeholders[36]. Financial Position and Liabilities - As of June 30, 2025, the company's cash and bank balances, including non-pledged cash, amounted to RMB 2,768.6 million, representing approximately 37.3% of current assets[62]. - The company's bank loans amounted to RMB 309.5 million in the current portion and RMB 782.0 million in the non-current portion, compared to RMB 595.0 million and RMB 1,097.5 million respectively as of December 31, 2024[70]. - The total liabilities decreased from RMB 9,640,863 thousand as of December 31, 2024, to RMB 8,724,856 thousand, indicating a reduction of approximately 9.5%[135]. Employee and Governance - The company is focusing on global talent acquisition and development, establishing a talent pool of nearly 2,000 international professionals to support international projects[39]. - The company signed the first round of equity incentive agreements to enhance employee growth pathways and has implemented various non-cash care initiatives[40]. - The audit committee, consisting solely of independent non-executive directors, reviewed the financial reporting process and internal controls during the review period[123]. - The company has adopted the corporate governance code and has complied with its provisions, except for the separation of the roles of Chairman and CEO[117]. Shareholder Information - The major shareholder, 惠生工程投資有限公司, holds 3,088,782,146 shares, representing approximately 75.82% of the total shares outstanding as of June 30, 2025[88]. - The total number of issued ordinary shares of the company is 4,073,767,800 as of June 30, 2025[90]. - The company issued a total of 67,760,000 stock options and 29,040,000 shares under its stock incentive plans to reward employee contributions[82].

[Company Information](index=3&type=section&id=Company%20Information) This section provides essential corporate details including board members, principal banks, share registrars, committee compositions, and office locations [Board of Directors and Company Secretary](index=3&type=section&id=Board%20of%20Directors%20and%20Company%20Secretary) This chapter lists the names of the executive directors, independent non-executive directors, company secretary, and authorized representatives of Kaisa Capital Investment Holdings Limited - Executive Directors include Mr. Kwok Ying Shing (Chairman), Mr. Yu Wai Ming (Chief Executive Officer), and Ms. Li Jianping[5](index=5&type=chunk) - Independent Non-Executive Directors include Mr. Xu Xiaowu, Mr. Li Yongjun, and Mr. Diao Yingfeng[5](index=5&type=chunk) - The Company Secretary is Ms. Poon Suk Chun, and the Authorized Representatives are Mr. Yu Wai Ming and Ms. Poon Suk Chun[5](index=5&type=chunk) [Principal Banks](index=3&type=section&id=Principal%20Banks) This chapter discloses the company's principal bank information in Hong Kong and Singapore - Principal banks in Hong Kong are Bank of China (Hong Kong) Limited and United Overseas Bank Limited[5](index=5&type=chunk) - The principal bank in Singapore is United Overseas Bank Limited[5](index=5&type=chunk) [Share Registrars](index=3&type=section&id=Share%20Registrars) This chapter provides the detailed addresses of the company's share registrars in the Cayman Islands and Hong Kong - The principal share registrar in the Cayman Islands is Ocorian Trust (Cayman) Limited[5](index=5&type=chunk) - The Hong Kong branch share registrar is Tricor Investor Services Limited[5](index=5&type=chunk) [Audit, Remuneration, and Nomination Committees](index=3&type=section&id=Audit%2C%20Remuneration%2C%20and%20Nomination%20Committees) This chapter lists the chairmen and members of the company's various committees - The Chairman of the Audit Committee is Mr. Xu Xiaowu[5](index=5&type=chunk) - The Chairman of the Remuneration Committee is Mr. Li Yongjun[5](index=5&type=chunk) - The Chairman of the Nomination Committee is Mr. Kwok Ying Shing[5](index=5&type=chunk) [Registered Office and Principal Place of Business](index=3&type=section&id=Registered%20Office%20and%20Principal%20Place%20of%20Business) This chapter discloses the company's registered office and principal place of business in Hong Kong - The registered office is located at Windward 3, Regatta Office Park, Cayman Islands[5](index=5&type=chunk) - The principal place of business in Hong Kong is 30th Floor, The Center, 99 Queen's Road Central, Hong Kong[6](index=6&type=chunk) [Independent Auditor](index=3&type=section&id=Independent%20Auditor) This chapter provides the name and address of the company's independent auditor - The independent auditor is BDO Limited[6](index=6&type=chunk) - The address is 8th Floor, K11 ATELIER King's Road, 728 King's Road, Quarry Bay, Hong Kong[6](index=6&type=chunk) [Listing Information](index=3&type=section&id=Listing%20Information) This chapter discloses the company's listing information on the Main Board of The Stock Exchange of Hong Kong Limited - The listing venue is the Main Board of The Stock Exchange of Hong Kong Limited[6](index=6&type=chunk) - The stock code is **936**[6](index=6&type=chunk) - The board lot size is **10,000 shares**[6](index=6&type=chunk) [Interim Financial Report Review Report](index=4&type=section&id=Interim%20Financial%20Report%20Review%20Report) This section presents the auditor's review report on the interim financial statements, outlining the scope and conclusion [Introduction](index=4&type=section&id=Introduction) The auditor confirms the review of Kaisa Capital Investment Holdings Limited's interim financial report for the six months ended June 30, 2025, prepared in compliance with HKAS 34 and Listing Rules - The interim financial report has been reviewed, covering the condensed consolidated statement of financial position as at June 30, 2025, and related statements for the six-month period then ended[7](index=7&type=chunk) - The report is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the relevant provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[7](index=7&type=chunk) [Scope of Review](index=4&type=section&id=Scope%20of%20Review) The auditor conducted the review in accordance with Hong Kong Standard on Review Engagements 2410, which is less extensive than an audit, thus no audit opinion is expressed - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants[8](index=8&type=chunk) - The scope of review is less extensive than an audit, therefore no audit opinion is expressed[8](index=8&type=chunk) [Conclusion](index=4&type=section&id=Conclusion) Based on the review, the auditor found no matters suggesting the interim financial report for the six months ended June 30, 2025, was not prepared in all material respects in accordance with HKAS 34 - The auditor found no matters indicating that the interim financial report was not prepared in all material respects in accordance with Hong Kong Accounting Standard 34[9](index=9&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This section provides a summary of the company's financial performance, including revenue, profit, and comprehensive income [Financial Performance Overview](index=5&type=section&id=Financial%20Performance%20Overview) For the six months ended June 30, 2025, the company's revenue from continuing operations increased by 5.88%, but gross profit decreased by 16.57%; however, profit for the period grew by 4.96% due to significantly improved other income and gains Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data | Indicator | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 117,727 | 111,185 | +5.88% | | Cost of sales and services | (57,145) | (38,575) | +48.14% | | Gross profit | 60,582 | 72,610 | -16.57% | | Other income and other gains and losses | 9,548 | (3,737) | +355.66% | | Profit before income tax | 6,473 | 4,657 | +38.99% | | Income tax expense | (2,013) | (398) | +405.78% | | Profit for the period from continuing operations | 4,460 | 4,259 | +4.72% | | Loss for the period from discontinued operations | – | (15) | -100.00% | | Profit for the period | 4,460 | 4,244 | +4.97% | | Exchange differences on translation of foreign operations | 4,196 | 2,252 | +86.32% | | Total comprehensive income for the period | 8,656 | 6,496 | +33.25% | | Basic and diluted earnings per share (continuing operations, HK cents) | 0.421 | 0.402 | +4.73% | - Total comprehensive income for the period significantly increased by **33.25%**, primarily driven by an **86.32%** surge in exchange differences on translation of foreign operations[11](index=11&type=chunk) [Condensed Consolidated Statement of Financial Position](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This section outlines the company's financial position, detailing its assets, liabilities, and equity [Asset and Liability Structure](index=6&type=section&id=Asset%20and%20Liability%20Structure) As of June 30, 2025, the company's non-current assets increased, while current assets and total assets decreased; both current and non-current liabilities increased, leading to an expanded net current liabilities, yet total equity still grew Condensed Consolidated Statement of Financial Position Key Data | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 395,317 | 364,864 | +8.34% | | Current assets | 93,990 | 109,875 | -14.46% | | Current liabilities | 363,312 | 337,745 | +7.57% | | Net current liabilities | (269,322) | (227,870) | +18.19% | | Non-current liabilities | 89,547 | 109,202 | -17.91% | | Net assets | 36,448 | 27,792 | +31.15% | | Total equity | 36,448 | 27,792 | +31.15% | - Net current liabilities expanded from approximately **HK$228 million** as at December 31, 2024, to approximately **HK$269 million** as at June 30, 2025, an increase of **18.19%**[12](index=12&type=chunk) - Total equity increased from approximately **HK$27.79 million** as at December 31, 2024, to approximately **HK$36.45 million** as at June 30, 2025, an increase of **31.15%**[13](index=13&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This section details the movements in the company's equity components over the reporting period [Equity Movement Analysis](index=8&type=section&id=Equity%20Movement%20Analysis) For the six months ended June 30, 2025, the company's total equity increased primarily due to profit for the period and exchange differences on translation of foreign operations, while accumulated losses decreased Condensed Consolidated Statement of Changes in Equity Key Data | Indicator | January 1, 2025 (HK$ thousand) | June 30, 2025 (HK$ thousand) | January 1, 2024 (HK$ thousand) | June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Share capital | 10,600 | 10,600 | 10,600 | 10,600 | | Translation reserve | 4,254 | 8,450 | 7,114 | 9,366 | | Accumulated losses | (475,867) | (471,407) | (363,351) | (359,107) | | Total equity | 27,792 | 36,448 | 143,168 | 149,664 | | Profit for the period | 4,460 | 4,460 | 4,244 | 4,244 | | Exchange differences on translation of foreign operations | 4,196 | 4,196 | 2,252 | 2,252 | | Total comprehensive income for the period | 8,656 | 8,656 | 6,496 | 6,496 | - As at June 30, 2025, total equity was **HK$36,448 thousand**, an increase of **HK$8,656 thousand** from **HK$27,792 thousand** as at January 1, 2025[14](index=14&type=chunk) - Profit for the period of **HK$4,460 thousand** and exchange differences on translation of foreign operations of **HK$4,196 thousand** collectively contributed to a total comprehensive income of **HK$8,656 thousand** for the period[14](index=14&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This section presents the company's cash flow activities, categorized into operating, investing, and financing [Cash Flows from Operating Activities](index=9&type=section&id=Cash%20Flows%20from%20Operating%20Activities) For the six months ended June 30, 2025, the company's net cash generated from operating activities slightly increased Cash Flows from Operating Activities | Indicator | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Cash generated from operations | 46,439 | 44,680 | | Interest paid | (387) | (799) | | Net cash generated from operating activities | 46,052 | 43,881 | - Net cash generated from operating activities increased by **4.95%** from **HK$43,881 thousand** in the prior year period to **HK$46,052 thousand** in the current period[15](index=15&type=chunk) [Cash Flows from Investing Activities](index=9&type=section&id=Cash%20Flows%20from%20Investing%20Activities) For the six months ended June 30, 2025, the company's net cash used in investing activities significantly increased, primarily due to higher expenditures on property, plant and equipment and right-of-use assets Cash Flows from Investing Activities | Indicator | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Purchase of property, plant and equipment and payments for right-of-use assets | (25,234) | (16,406) | | Proceeds from disposal of property, plant and equipment | 471 | 184 | | Net cash used in investing activities | (24,763) | (16,222) | - Net cash used in investing activities increased by **52.65%** from **HK$16,222 thousand** in the prior year period to **HK$24,763 thousand** in the current period[15](index=15&type=chunk) [Cash Flows from Financing Activities](index=9&type=section&id=Cash%20Flows%20from%20Financing%20Activities) For the six months ended June 30, 2025, the company's net cash used in financing activities slightly decreased, mainly due to reduced repayment of borrowings Cash Flows from Financing Activities | Indicator | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Repayment of lease liabilities | (25,000) | (20,974) | | Interest component of lease payments | (3,386) | (2,856) | | Repayment of borrowings | (4,766) | (10,572) | | Net cash used in financing activities | (33,152) | (34,402) | - Net cash used in financing activities decreased by **3.63%** from **HK$34,402 thousand** in the prior year period to **HK$33,152 thousand** in the current period[15](index=15&type=chunk) [Changes in Cash and Cash Equivalents](index=9&type=section&id=Changes%20in%20Cash%20and%20Cash%20Equivalents) For the six months ended June 30, 2025, the company's net decrease in cash and cash equivalents expanded, and cash and cash equivalents at the end of the period significantly declined Changes in Cash and Cash Equivalents | Indicator | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Net decrease in cash and cash equivalents | (11,863) | (6,743) | | Cash and cash equivalents at January 1 | 14,368 | 24,228 | | Effect of foreign exchange rate changes on cash and cash equivalents | 750 | (389) | | Cash and cash equivalents at June 30 | 3,255 | 17,096 | - Cash and cash equivalents at the end of the period significantly decreased by **80.96%** from **HK$17,096 thousand** in the prior year period to **HK$3,255 thousand** in the current period[15](index=15&type=chunk) [Notes to the Unaudited Interim Financial Report](index=10&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Financial%20Report) This section provides detailed notes explaining the accounting policies, significant judgments, segment information, and other financial disclosures [1. General Information and Basis of Preparation](index=10&type=section&id=1.%20General%20Information%20and%20Basis%20of%20Preparation) This chapter discloses Kaisa Capital Investment Holdings Limited's basic information, business scope (construction equipment business as continuing operations, property development business terminated in July 2024), listing status, controlling shareholder, and highlights the company's net current liabilities and accumulated losses, supported by financial backing from its major shareholder to maintain going concern - The Group is principally engaged in the trading and leasing of construction machinery and spare parts, and providing repair and maintenance services for construction machinery ("Construction Equipment Business"), and property development ("Property Development Business")[16](index=16&type=chunk) - The Group completed the disposal of its property development business on **July 8, 2024**[16](index=16&type=chunk) Financial Position as at June 30, 2025 | Indicator | Amount (HK$) | | :--- | :--- | | Net current liabilities | approximately 269,322,000 | | Accumulated losses | approximately 471,407,000 | | Total borrowings (including borrowings, other loans and related interest payable) | approximately 126,641,000 | | Current borrowings | approximately 125,480,000 | | Cash and cash equivalents | approximately 3,255,000 | - The Company's directors believe the Group will be able to meet its financial obligations for the next 12 months, as the major shareholder has provided a financial support letter for **15 months**[18](index=18&type=chunk) [2. Accounting Policies](index=11&type=section&id=2.%20Accounting%20Policies) During this interim period, the accounting policies and methods of computation used in preparing the interim financial report are consistent with those used in the 2024 annual financial statements, except for changes due to the application of revised HKFRSs - The accounting policies and methods of computation used in preparing the interim financial report are consistent with those used in the 2024 annual financial statements, except for changes due to the application of revised HKFRSs[21](index=21&type=chunk) [3. Application of Revised HKFRSs](index=11&type=section&id=3.%20Application%20of%20Revised%20HKFRSs) During this interim period, the company first applied the amendments to HKAS 21 "Lack of Exchangeability" issued by the HKICPA, but this application had no significant impact on the Group's financial position, performance, and/or disclosures in the interim financial report for the current and prior periods - The amendments to HKAS 21 "Lack of Exchangeability" were first applied during this interim period[22](index=22&type=chunk) - The application of the revised HKFRSs had no significant impact on the Group's financial position, performance, and/or disclosures in the interim financial report for the current and prior periods[22](index=22&type=chunk) [4. Application of Judgements and Estimates](index=11&type=section&id=4.%20Application%20of%20Judgements%20and%20Estimates) This chapter states that the significant judgments and estimates made by management in preparing the interim financial report are the same as those applied in the 2024 annual financial statements - The significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty are the same as those applied in the 2024 annual financial statements[23](index=23&type=chunk) [5. Segment Information](index=11&type=section&id=5.%20Segment%20Information) The company primarily operates the construction equipment business, with the property development business terminated on July 8, 2024; in this period, the construction equipment business contributed all reportable segment revenue and profit, with Hong Kong and Singapore being the main regional markets showing revenue growth, while the China segment's revenue decreased - The Group's reportable segments include the construction equipment business and the discontinued property development business[26](index=26&type=chunk) - The property development business segment is considered a discontinued operation since **July 8, 2024**[25](index=25&type=chunk) Reportable Segment Revenue and Profit | Indicator | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Construction equipment business revenue | 117,727 | 111,185 | | Property development business revenue | – | – | | Construction equipment business profit (loss) | 7,675 | 7,720 | | Property development business profit (loss) | – | (15) | | Profit for the period | 4,460 | 4,244 | Revenue by Major Geographical Market | Region | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Hong Kong | 60,260 | 60,015 | | Singapore | 44,454 | 39,083 | | China | 10,669 | 11,860 | | Korea | 410 | 8 | | United Arab Emirates | 1,809 | 217 | | Sri Lanka | 102 | 2 | | Australia | 23 | – | | Total | 117,727 | 111,185 | [6. Revenue](index=15&type=section&id=6.%20Revenue) For the six months ended June 30, 2025, the company's revenue from continuing operations primarily derived from the construction equipment business, with significant growth in sales of machinery, spare parts, and service income, while rental income from owned plant and machinery decreased, but rental income from subleasing leased plant and machinery substantially increased Revenue from Continuing Operations Breakdown | Revenue Source | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Sales of machinery | 1,935 | 221 | | Sales of spare parts | 1,557 | 288 | | Service income | 39,038 | 32,657 | | Rental income from owned plant and machinery | 68,220 | 75,541 | | Rental income from subleasing leased plant and machinery | 6,977 | 2,478 | | Total | 117,727 | 111,185 | - Sales of machinery revenue increased by **775.57%** year-on-year, sales of spare parts revenue increased by **440.63%** year-on-year, and service income increased by **19.54%** year-on-year[32](index=32&type=chunk) - Rental income from owned plant and machinery decreased by **9.69%** year-on-year, while rental income from subleasing leased plant and machinery increased by **181.56%** year-on-year[32](index=32&type=chunk) [7. Other Income and Other Gains and Losses](index=16&type=section&id=7.%20Other%20Income%20and%20Other%20Gains%20and%20Losses) For the six months ended June 30, 2025, the company's other income and other gains and losses turned from a loss of HK$3,737 thousand in the prior year period to a gain of HK$9,548 thousand, primarily due to a significant increase in net exchange gains Other Income and Other Gains and Losses | Item | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Net exchange gains (losses) | 9,043 | (2,926) | | Gains (losses) on disposal of property, plant and equipment | 282 | (1,481) | | Compensation received | – | 39 | | Sales of scrap materials | 117 | 445 | | Others | 106 | 186 | | Total | 9,548 | (3,737) | - Net exchange gains turned from a loss of **HK$2,926 thousand** in the prior year period to a gain of **HK$9,043 thousand** in the current period[34](index=34&type=chunk) - Gains on disposal of property, plant and equipment turned from a loss of **HK$1,481 thousand** in the prior year period to a gain of **HK$282 thousand** in the current period[34](index=34&type=chunk) [8. Other Operating Expenses](index=16&type=section&id=8.%20Other%20Operating%20Expenses) For the six months ended June 30, 2025, the company's other operating expenses slightly increased, mainly comprising depreciation of property, plant and equipment and depreciation of right-of-use assets Other Operating Expenses Breakdown | Item | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 15,387 | 14,945 | | Depreciation of right-of-use assets | 12,987 | 12,034 | | Amortisation of intangible assets | – | 412 | | Total | 28,374 | 27,391 | - Total other operating expenses increased by **3.59%** from **HK$27,391 thousand** in the prior year period to **HK$28,374 thousand** in the current period[35](index=35&type=chunk) [9. Finance Costs](index=17&type=section&id=9.%20Finance%20Costs) For the six months ended June 30, 2025, the company's finance costs slightly increased, primarily including interest expenses on borrowings, other loans, and lease liabilities Finance Costs Breakdown | Item | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Interest expense on borrowings | 387 | 799 | | Interest expense on other loans | 2,057 | 2,064 | | Interest expense on lease liabilities | 3,386 | 2,856 | | Total | 5,830 | 5,719 | - Total finance costs increased by **1.94%** from **HK$5,719 thousand** in the prior year period to **HK$5,830 thousand** in the current period[36](index=36&type=chunk) [10. Profit Before Income Tax](index=17&type=section&id=10.%20Profit%20Before%20Income%20Tax) For the six months ended June 30, 2025, profit before income tax was stated after deducting or crediting items such as impairment loss on trade receivables, gains on disposal of property, plant and equipment, employee costs, and net exchange gains Items Affecting Profit Before Income Tax | Item | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Net impairment loss on trade receivables | 622 | 678 | | (Gains) losses on disposal of property, plant and equipment | (282) | 1,481 | | Employee costs (including directors' emoluments) | 20,101 | 17,802 | | Net exchange (gains) losses | (9,043) | 2,926 | - Employee costs (including directors' emoluments) increased by **12.91%** from **HK$17,802 thousand** in the prior year period to **HK$20,101 thousand** in the current period[37](index=37&type=chunk) [11. Income Tax Expense](index=18&type=section&id=11.%20Income%20Tax%20Expense) For the six months ended June 30, 2025, the company's income tax expense primarily arose from Singapore corporate income tax provision, with no provision made for Hong Kong and China entities due to absence of assessable profits or absorption by tax losses Income Tax Expense | Item | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Provision for Singapore corporate income tax | 2,013 | 398 | - Income tax for the Group's entities in Singapore is provided at the applicable tax rate of **17%**[39](index=39&type=chunk) - No income tax provision was made for the Group's entities in Hong Kong and China due to the absence of assessable profits or absorption by tax losses[38](index=38&type=chunk)[39](index=39&type=chunk) [12. Interim Dividend](index=18&type=section&id=12.%20Interim%20Dividend) The Company did not pay or declare any interim dividend during this period - The Company did not pay or declare any interim dividend for this period (the six months ended June 30, 2025)[40](index=40&type=chunk) [13. Discontinued Operations](index=19&type=section&id=13.%20Discontinued%20Operations) The property development business was formally terminated following a sale and purchase agreement on July 2, 2024, and completion of disposal on July 8, 2024, having incurred a loss of HK$15 thousand in the prior year period - The Group entered into a sale and purchase agreement with an independent third party on **July 2, 2024**, to dispose of all its property development business for a cash consideration of **HK$20 million**[41](index=41&type=chunk) - The disposal was completed on **July 8, 2024**, and control of the property development business was transferred to the acquirer on that date[41](index=41&type=chunk) Loss for the Period and Cash Flows from Discontinued Operations (June 30, 2024) | Item | June 30, 2024 (HK$ thousand) | | :--- | :--- | | Administrative expenses | (15) | | Loss before income tax | (15) | | Loss for the period from discontinued operations attributable to owners of the Company | (15) | | Net cash used in operating activities | (9) | [14. Earnings (Loss) Per Share](index=20&type=section&id=14.%20Earnings%20(Loss)%20Per%20Share) For the six months ended June 30, 2025, basic earnings per share from continuing operations increased, and diluted earnings per share were the same as basic earnings per share as there were no potential dilutive ordinary shares outstanding in either period Basic and Diluted Earnings Per Share (Continuing Operations) | Indicator | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company | 4,460 | 4,244 | | Less: Loss for the period from discontinued operations | – | (15) | | Profit for the purpose of calculating basic earnings per share from continuing operations | 4,460 | 4,259 | | Weighted average number of ordinary shares | 1,060,000,000 | 1,060,000,000 | | Basic and diluted earnings per share (continuing operations, HK cents) | 0.421 | 0.402 | - Basic earnings per share from continuing operations increased by **4.73%** from **0.402 HK cents** in the prior year period to **0.421 HK cents** in the current period[43](index=43&type=chunk) - Basic loss per share from discontinued operations was **0.001 HK cents** per share for the period ended June 30, 2024[45](index=45&type=chunk) [15. Property, Plant and Equipment and Right-of-Use Assets](index=21&type=section&id=15.%20Property%2C%20Plant%20and%20Equipment%20and%20Right-of-Use%20Assets) For the six months ended June 30, 2025, the company's expenditure on additions to property, plant and equipment increased, while additions to right-of-use assets decreased, and a gain on disposal of property, plant and equipment was recorded Property, Plant and Equipment and Right-of-Use Assets Movement | Item | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Additions to property, plant and equipment | 25,234 | 16,406 | | Additions to right-of-use assets | 16,411 | 25,721 | | Proceeds from disposal of property, plant and equipment | 471 | 184 | | Gains (losses) on disposal of property, plant and equipment | 282 | (1,481) | - Additions to property, plant and equipment expenditure increased by **53.81%** year-on-year[47](index=47&type=chunk) - Additions to right-of-use assets expenditure decreased by **36.12%** year-on-year[47](index=47&type=chunk) - Gains on disposal of property, plant and equipment turned from a loss of **HK$1,481 thousand** in the prior year period to a gain of **HK$282 thousand** in the current period[47](index=47&type=chunk) [16. Intangible Assets](index=21&type=section&id=16.%20Intangible%20Assets) As at June 30, 2025, the company's intangible assets (construction licenses) had a carrying amount of zero, consistent with the end of 2024 Intangible Assets (Construction Licenses) | Item | June 30, 2025 (HK$ thousand) | January 1, 2024 (HK$ thousand) | | :--- | :--- | :--- | | At beginning of period (audited) | – | 412 | | Amortisation | – | (412) | | At end of period (unaudited) | – | – | - As at June 30, 2025, the carrying amount of intangible assets (construction licenses) was **zero**[48](index=48&type=chunk) [17. Trade Receivables](index=22&type=section&id=17.%20Trade%20Receivables) As at June 30, 2025, the company's net trade receivables decreased, but loss allowance increased, and the proportion of receivables aged over 90 days rose Gross and Net Trade Receivables | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Gross trade receivables | 71,509 | 74,432 | | Less: Loss allowance | (7,911) | (7,162) | | Net trade receivables | 63,598 | 67,270 | Ageing Analysis of Trade Receivables (Net of Impairment) | Ageing | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | 0 to 30 days | 29,363 | 35,646 | | 31 to 60 days | 7,565 | 8,600 | | 61 to 90 days | 3,783 | 3,591 | | Over 90 days | 22,887 | 19,433 | | Total | 63,598 | 67,270 | Movement in Loss Allowance for Trade Receivables | Item | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | At January 1 (audited) | 7,162 | 6,772 | | Impairment loss recognised | 622 | 678 | | Net exchange differences | 127 | (175) | | At June 30 (unaudited) | 7,911 | 7,275 | [18. Trade Payables](index=23&type=section&id=18.%20Trade%20Payables) As at June 30, 2025, the company's total trade payables increased, with a significant rise in payables aged over 90 days Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | 0 to 30 days | 9,232 | 8,876 | | 31 to 60 days | 1,954 | 8,882 | | 61 to 90 days | 476 | 2,683 | | Over 90 days | 88,175 | 65,427 | | Total | 99,837 | 85,868 | - Total trade payables increased by **16.27%** from **HK$85,868 thousand** as at December 31, 2024, to **HK$99,837 thousand** as at June 30, 2025[53](index=53&type=chunk) - Trade payables aged over 90 days increased by **34.77%** from **HK$65,427 thousand** as at December 31, 2024, to **HK$88,175 thousand** as at June 30, 2025[53](index=53&type=chunk) [19. Borrowings](index=24&type=section&id=19.%20Borrowings) As at June 30, 2025, the company's total borrowings decreased, with a larger reduction in non-bank borrowings; most borrowings are repayable within one year and are secured by the company's buildings, property, plant and equipment Borrowings Breakdown and Repayment Schedule | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Bank borrowings | 4,427 | 5,895 | | Non-bank borrowings | 4,281 | 11,062 | | Total borrowings | 8,708 | 16,957 | | Portion classified as current liabilities | (7,547) | (14,277) | | Non-current portion | 1,161 | 2,680 | | Repayable within one year | 7,547 | 14,277 | | Repayable after one year but within two years | 1,161 | 2,210 | | Repayable after two years but within five years | – | 470 | - Total borrowings decreased by **48.65%** from **HK$16,957 thousand** as at December 31, 2024, to **HK$8,708 thousand** as at June 30, 2025[54](index=54&type=chunk) - Bank borrowings are secured by the Group's buildings with a net book value of approximately **HK$26,085 thousand** and property, plant and equipment of approximately **HK$2,398 thousand**[55](index=55&type=chunk) - Non-bank borrowings are secured by property, plant and equipment with a net book value of approximately **HK$17,666 thousand**[55](index=55&type=chunk) [20. Other Loans](index=25&type=section&id=20.%20Other%20Loans) The company has multiple unsecured other loan agreements with Fook Kong Investment Limited, which bear interest at 5% per annum and are repayable on demand; directors consider these loans granted on normal commercial terms - Since **2018**, the Company has entered into several unsecured other loan agreements with Fook Kong Investment Limited[56](index=56&type=chunk) - These loans are unsecured, bear interest at **5% per annum**, and are repayable on demand[56](index=56&type=chunk) - On **August 6, 2020**, Fook Kong agreed to adjust the annual interest rate on the outstanding loan balance of **HK$183 million** from **10% to 5%** and waived interest payable of **HK$17.54 million**, which was credited to capital reserve[56](index=56&type=chunk) [21. Commitments](index=25&type=section&id=21.%20Commitments) The company has future minimum rental income commitments as a lessor, short-term lease payment commitments as a lessee, and contracted but unprovided commitments for the acquisition of property, plant and equipment Commitments as Lessor (Total Future Minimum Rental Payments) | Period | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Within one year | 118,171 | 141,062 | | In the second year | 30,648 | 31,518 | | Total | 148,819 | 172,580 | Commitments as Lessee (Total Future Minimum Lease Payments) | Period | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Within one year | 3,916 | 1,745 | | In the second year | 643 | – | | Total | 4,559 | 1,745 | Other Commitments (Acquisition Commitments) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Acquisition of property, plant and equipment – contracted but not provided for | 7,747 | 20,726 | [22. Related Party Transactions](index=26&type=section&id=22.%20Related%20Party%20Transactions) This chapter discloses the compensation of key management personnel for the period, including short-term employee benefits and post-employment benefits Key Management Personnel Compensation | Item | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Short-term employee benefits | 1,746 | 1,360 | | Post-employment benefits | 28 | 17 | | Total | 1,774 | 1,377 | - Total key management personnel compensation increased by **28.83%** from **HK$1,377 thousand** in the prior year period to **HK$1,774 thousand** in the current period[61](index=61&type=chunk) [23. Fair Value Measurement of Financial Instruments](index=26&type=section&id=23.%20Fair%20Value%20Measurement%20of%20Financial%20Instruments) As at June 30, 2025, and December 31, 2024, there were no material differences between the carrying amounts and fair values of the company's financial assets and liabilities accounted for at cost or amortized cost - As at June 30, 2025, and December 31, 2024, there were no material differences between the carrying amounts and fair values of the Group's financial assets and liabilities accounted for at cost or amortized cost[62](index=62&type=chunk) [24. Approval of Interim Financial Report](index=26&type=section&id=24.%20Approval%20of%20Interim%20Financial%20Report) The interim financial report for the six months ended June 30, 2025, was approved and authorized for issue by the Board of Directors on August 26, 2025 - The interim financial report for the six months ended June 30, 2025, was approved and authorized for issue by the Board of Directors on **August 26, 2025**[63](index=63&type=chunk) [Management Discussion and Analysis](index=27&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's perspective on the company's financial performance, business operations, future outlook, and financial position [Interim Dividend](index=27&type=section&id=Interim%20Dividend) The Board of Directors of Kaisa Capital Investment Holdings Limited has resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board of Directors has resolved not to declare an interim dividend for the six months ended June 30, 2025[65](index=65&type=chunk) [Business and Financial Review](index=27&type=section&id=Business%20and%20Financial%20Review) During the reporting period, the company's overall revenue and profit both increased; the construction equipment business performed strongly with significant growth in machinery sales, spare parts sales, and service income, though rental income slightly decreased; revenue grew in Hong Kong and Singapore segments, while the China segment's revenue declined; the property development business has been discontinued; other income and gains significantly increased, mainly from exchange gains Overall Financial Performance | Indicator | June 30, 2025 (HK$ million) | June 30, 2024 (HK$ million) | | :--- | :--- | :--- | | Revenue | approximately 117.7 | approximately 111.2 | | Profit | approximately 4.5 | approximately 4.2 | - Machinery sales revenue was approximately **HK$1.9 million**, an increase of approximately **775.6%** year-on-year, primarily due to increased demand for cranes in Hong Kong and Singapore[67](index=67&type=chunk) - Rental income decreased to approximately **HK$75.2 million**, a year-on-year decrease of approximately **3.6%**[68](index=68&type=chunk) - Spare parts sales were approximately **HK$1.6 million**, an increase of approximately **440.6%** year-on-year, mainly due to changes in market demand for machinery spare parts[68](index=68&type=chunk) - Service income was approximately **HK$39.0 million**, an increase of approximately **19.5%** year-on-year, mainly due to increased demand for services related to climbing and dismantling activities[68](index=68&type=chunk) Regional Segment Revenue | Region | June 30, 2025 (HK$ million) | June 30, 2024 (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | | Hong Kong | approximately 61.5 | approximately 60.0 | +2.4% | | Singapore | approximately 47.0 | approximately 39.3 | +19.6% | | China | approximately 9.2 | approximately 11.9 | -22.1% | - Other income and other gains and losses amounted to approximately **HK$9.5 million**, an increase of approximately **HK$13.3 million** compared to the prior year period, mainly due to exchange gains[73](index=73&type=chunk) [Future Prospects](index=28&type=section&id=Future%20Prospects) The company anticipates robust growth in the Singapore and Hong Kong construction sectors, driven by major infrastructure projects, increasing demand for tower cranes; the company plans to enhance market share and competitiveness through internal optimization, external expansion, and technological innovation, including a strategic partnership with Glodon Company Limited for smart construction site systems in developed markets - The Singapore construction industry is expected to maintain robust growth from **2025 to 2026**, driven by major infrastructure projects such as Changi Airport Terminal 5 and the Marina Bay Sands expansion[75](index=75&type=chunk) - Hong Kong's construction industry's average annual capital works expenditure is projected to be approximately **HK$90 billion** over the next five years, an increase of approximately **17%** compared to the past five years, which will significantly boost demand for tower cranes[75](index=75&type=chunk) - The Group has entered into a strategic partnership with Glodon Company Limited, a leading industry player in mainland China, to jointly develop the smart construction site system market in more developed regions such as Hong Kong, Singapore, and the Middle East[76](index=76&type=chunk) [Events After Reporting Period](index=29&type=section&id=Events%20After%20Reporting%20Period) The Group had no other significant events after the reporting period and up to the date of this report - The Group had no other significant events after the reporting period and up to the date of this report[77](index=77&type=chunk) [Liquidity and Financial Resources](index=29&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the company faced expanded net current liabilities and a significant reduction in cash and cash equivalents, but received financial support from its major shareholder; debts are primarily denominated in HKD, RMB, and SGD, with most repayable within one year Liquidity and Financial Resources Overview | Indicator | June 30, 2025 (HK$ million) | December 31, 2024 (HK$ million) | | :--- | :--- | :--- | | Cash and cash equivalents | approximately 3.3 | approximately 14.4 | | Total equity | approximately 36.4 | approximately 27.8 | | Net current liabilities | approximately 269.3 | approximately 227.9 | - More than half of the Group's revenue and some assets and liabilities are denominated in currencies other than HKD, primarily Singapore Dollars, Euros, or US Dollars[78](index=78&type=chunk) - The Group's debts denominated in HKD, RMB, and SGD, totaling approximately **HK$143.5 million**, are repayable within one year from June 30, 2025, and approximately **HK$53.1 million** are repayable after one year[78](index=78&type=chunk) [Capital Structure](index=30&type=section&id=Capital%20Structure) As at June 30, 2025, the company's share capital comprised 1,060,000,000 issued ordinary shares of HK$0.01 each, with no changes in share capital during the period - As at June 30, 2025, the Company's share capital comprised **1,060,000,000** issued ordinary shares of **HK$0.01** each[80](index=80&type=chunk) - The Company's share capital remained unchanged during the period[80](index=80&type=chunk) [Investment Status and Plans](index=30&type=section&id=Investment%20Status%20and%20Plans) During the period, the Group acquired approximately HK$41.6 million in plant and equipment and right-of-use assets, similar to the prior year period; other than what is disclosed in this report, the Group had no other plans for significant future investments and capital assets as at June 30, 2025 Acquisition of Plant and Equipment and Right-of-Use Assets | Item | June 30, 2025 (HK$ million) | 2024 (HK$ million) | | :--- | :--- | :--- | | Acquisition of plant and equipment and right-of-use assets | approximately 41.6 | approximately 42.1 | - Other than what is disclosed in this report, the Group had no other plans for significant future investments and capital assets as at June 30, 2025[84](index=84&type=chunk) [Pledge of Group Assets and Contingent Liabilities](index=30&type=section&id=Pledge%20of%20Group%20Assets%20and%20Contingent%20Liabilities) As at June 30, 2025, the company's bank facilities, lease liabilities, and other borrowings were all secured by assets, including buildings, property, plant and equipment, and corporate guarantees; the Group and the Company had no significant contingent liabilities - The Group's bank facilities are secured by the Group's buildings with a total net book value of approximately **HK$26.1 million**, property, plant and equipment of approximately **HK$2.4 million**, and corporate guarantees executed by the Company and certain subsidiaries[85](index=85&type=chunk) - The Group's lease liabilities are secured by machinery of approximately **HK$173.9 million**[85](index=85&type=chunk) - The Group's other borrowings are secured by property, plant and equipment of approximately **HK$17.7 million** and corporate guarantees executed by the Company and certain subsidiaries[85](index=85&type=chunk) - The Group and the Company had no significant contingent liabilities[85](index=85&type=chunk) [Employees and Remuneration Policy](index=30&type=section&id=Employees%20and%20Remuneration%20Policy) As at June 30, 2025, the Group employed a total of 113 employees in Hong Kong, Singapore, and China, a slight increase from the end of 2024; there were no significant disputes with employees, and remuneration policy follows industry practice, individual performance, and local labor laws Number of Employees | Period | Number of Employees | | :--- | :--- | | June 30, 2025 | 113 | | December 31, 2024 | 109 | - There were no significant disputes between the Group and its employees, and no business disruptions due to labor disputes[82](index=82&type=chunk) - The Group remunerates its employees in accordance with industry practice and provides employee benefits, welfare, and statutory contributions based on individual performance and the prevailing labor laws in the operating entities' locations[82](index=82&type=chunk) [Other Information Disclosure](index=31&type=section&id=Other%20Information%20Disclosure) This section provides additional disclosures required by listing rules, including directors' and substantial shareholders' interests, changes in director information, and compliance with corporate governance [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company and its Associated Corporations](index=31&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20and%20its%20Associated%20Corporations) As at June 30, 2025, no director or chief executive of the Company held any interests or short positions in the shares, underlying shares, and debentures of the Company or its associated corporations that are required to be disclosed under Part XV of the Securities and Futures Ordinance or Appendix C3 of the Listing Rules - As at June 30, 2025, no director or chief executive of the Company held any interests or short positions in the shares, underlying shares, and debentures of the Company or its associated corporations that are required to be notified to the Company and The Stock Exchange of Hong Kong Limited ("the Stock Exchange") under Divisions 7 and 8 of Part XV of the Securities and Futures Ordinance[86](index=86&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares](index=31&type=section&id=Substantial%20Shareholders'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares) As at June 30, 2025, substantial shareholders held long positions in the company's shares, with Grandeur Group, Kaisa Group, Excel Range Investments Limited, KS Holdings 2 Limited, Ms. Kwok Hiu Ting, Ms. Kwok Hiu Yan, and Ms. Kwok Ho Lai collectively holding 56.60% of shares, and Mr. Chan Mo holding 12.26% Substantial Shareholders' Long Positions in Shares | Shareholder Name | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage of the Company's Issued Shares | | :--- | :--- | :--- | :--- | | Grandeur Group Limited | Beneficial owner and party to agreement acting in concert | 600,020,000 | 56.60% | | Kaisa Group Holdings Ltd. | Interest in controlled corporation | 600,020,000 | 56.60% | | Excel Range Investments Limited | Beneficial owner and party to agreement acting in concert | 600,020,000 | 56.60% | | KS Holdings 2 Limited | Trustee | 275,600,000 | 56.60% | | Ms. Kwok Hiu Ting | Interest in controlled corporation | 600,020,000 | 56.60% | | Ms. Kwok Hiu Yan | Interest in controlled corporation | 600,020,000 | 56.60% | | Ms. Kwok Ho Lai | Interest in controlled corporation | 600,020,000 | 56.60% | | Mr. Chan Mo | Beneficial owner | 130,000,000 | 12.26% | - Grandeur Group, Kaisa Group, Excel Range, KS Holdings, Ms. Kwok Hiu Ting, Ms. Kwok Hiu Yan, and Ms. Kwok Ho Lai are deemed to be interested in a total of **600,020,000 shares** held by Grandeur and Excel Range respectively, representing approximately **56.6%** of the total issued shares[90](index=90&type=chunk) [Directors' Right to Acquire Shares or Debentures](index=32&type=section&id=Directors'%20Right%20to%20Acquire%20Shares%20or%20Debentures) During the period, neither the Company nor any of its holding companies or subsidiaries entered into any arrangements enabling directors, the chief executive, or their spouses or children under 18 to acquire benefits by purchasing shares or debentures of the Company or any other corporation - During the period, neither the Company nor any of its holding companies or subsidiaries entered into any arrangements to enable the directors or chief executive of the Company or their spouses or children under the age of 18 to acquire benefits by means of the acquisition of shares or debentures of the Company or any other body corporate[89](index=89&type=chunk) [Changes in Directors' Information](index=32&type=section&id=Changes%20in%20Directors'%20Information) This chapter discloses changes in the Board of Directors, including the addition of nomination committee members, the resignation of the Chief Executive Officer, and the appointment of a new Executive Director and Chief Executive Officer - Executive Director Ms. Li Jianping and Independent Non-Executive Director Mr. Diao Yingfeng have been appointed as additional members of the Board's Nomination Committee, effective **June 27, 2025**[91](index=91&type=chunk) - Mr. Zheng Wei resigned as an Executive Director and Chief Executive Officer of the Company and ceased to be an authorized representative of the Company under Rule 3.05 of the Listing Rules and Part 16 of the Companies Ordinance of Hong Kong, effective **July 18, 2025**[91](index=91&type=chunk) - Mr. Yu Wai Ming has been appointed as an Executive Director and Chief Executive Officer and an authorized representative of the Company under Rule 3.05 of the Listing Rules and Part 16 of the Companies Ordinance of Hong Kong, effective **July 18, 2025**[91](index=91&type=chunk) [Share Option Scheme](index=33&type=section&id=Share%20Option%20Scheme) The company's share option scheme adopted in 2015 expired on July 30, 2025; as at June 30, 2025, and the date of this report, no share options granted under the scheme remained outstanding - The Company's share option scheme adopted on **July 30, 2015**, expired on **July 30, 2025**[92](index=92&type=chunk) - As at June 30, 2025, and the date of this report, no share options granted under the share option scheme remained outstanding[93](index=93&type=chunk) [Compliance with Corporate Governance Code](index=33&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Company has complied with all code provisions of the Corporate Governance Code set out in Part 2 of Appendix C1 to the Listing Rules throughout the period - The Company has complied with all code provisions of the Corporate Governance Code set out in Part 2 of Appendix C1 to the Listing Rules throughout the period[94](index=94&type=chunk) [Review of Financial Information](index=33&type=section&id=Review%20of%20Financial%20Information) The Company's Audit Committee has reviewed the Group's unaudited condensed consolidated interim financial statements for the period, and the independent auditor, BDO Limited, has completed its review and issued a report in accordance with Hong Kong Standard on Review Engagements 2410 - The Company's Audit Committee has reviewed the accounting policies adopted by the Group and the Group's unaudited condensed consolidated interim financial statements for the period[95](index=95&type=chunk) - The Group's independent auditor, BDO Limited, has completed its review of the Group's condensed consolidated interim financial statements for the period in accordance with Hong Kong Standard on Review Engagements 2410[95](index=95&type=chunk) [Disclosure Pursuant to Rule 13.21 of the Listing Rules](index=33&type=section&id=Disclosure%20Pursuant%20to%20Rule%2013.21%20of%20the%20Listing%20Rules) During this period, the Company had no disclosure obligations pursuant to Rule 13.21 of the Listing Rules - During this period, the Company had no disclosure obligations pursuant to Rule 13.21 of the Listing Rules[96](index=96&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=33&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) During this period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During this period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities (including treasury shares)[97](index=97&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors](index=33&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted the Model Code as its code of conduct for directors' securities transactions and confirms that all directors have complied with it throughout the period - The Company has adopted the Model Code as its code of conduct for directors' securities transactions[98](index=98&type=chunk) - The Company has made specific enquiries with all directors, and they have all confirmed their compliance with the standards set out in the Model Code throughout the period[98](index=98&type=chunk)

Financial Performance - For the first half of 2025, the company achieved a revenue of RMB 12,236.6 million, representing a year-on-year growth of 13.8%[12] - The net profit for the same period was RMB 1,294.2 million, an increase of 31.1% compared to the previous year[12] - The company's overseas sales revenue reached RMB 4,018.9 million, marking a growth of 5.4% year-on-year[13] - The emerging industries segment saw a significant revenue increase of 276.2%, totaling RMB 2,594.4 million[14] - The company achieved a revenue of RMB 12,236.6 million for the first half of 2025, representing a year-on-year increase of 13.8%[17] - Profit for the period was RMB 1,294.2 million, up 31.1% year-on-year, with attributable profit to shareholders increasing by 25.3% to RMB 1,294.4 million[17][29] - International revenue reached RMB 4,018.9 million, reflecting a growth of 5.4% compared to the previous year[17] - Other income and gains increased by 61.2% to RMB 594.1 million, primarily due to higher government subsidies and bank interest income[20] - Sales cost rose by 14.9% to RMB 9,337.9 million, driven by increased revenue from oil and gas equipment and emerging industries[21] - Gross margin decreased to approximately 23.7%, down 0.7 percentage points from the previous year, attributed to a higher proportion of lower-margin product sales[22] - The company's pre-tax profit margin improved to 14.0%, up 3.3 percentage points, due to lower sales and distribution costs and increased other income[27] Cash Flow and Assets - The cash flow from operating activities improved significantly to RMB 368.4 million, compared to a negative RMB 152.9 million in the previous year, reflecting a 340.9% increase[5] - As of June 30, 2025, total current assets were RMB 28,553.6 million, while total liabilities were RMB 31,128.4 million, resulting in a debt-to-asset ratio of 63.5%[31][32] - As of June 30, 2025, the group's cash and cash equivalents totaled approximately RMB 6,219.5 million, with a net operating cash inflow of RMB 368.4 million for the six months ending June 30, 2025, compared to a net outflow of RMB 152.9 million for the same period in 2024[35] - The average inventory turnover days increased to approximately 106 days as of June 30, 2025, from about 82 days a year earlier, primarily due to increased inventory in emerging industries and additional overseas stock[36] - The net investment cash inflow was approximately RMB 92.6 million for the six months ending June 30, 2025, a significant improvement from a net outflow of RMB 346.7 million in the same period of 2024, mainly due to increased cash inflow from the sale of financial assets[35] - The group had a net financing cash inflow of approximately RMB 460.5 million for the six months ending June 30, 2025, a decrease from RMB 1,734.0 million in the same period of 2024, attributed to a significant reduction in new borrowings[35] Employee and Training - The group had 7,843 full-time employees as of June 30, 2025, with ongoing internal and external training programs to enhance employee skills and engagement[39] Research and Development - Research and development expenses were RMB 701.7 million, a decrease of 13.7%, with R&D expenses as a percentage of revenue falling to 5.7%[24] - The company is committed to enhancing its research and development capabilities and has collaborated with Northeast University to explore AI-driven industrial innovations[46] Corporate Governance - The board consists of nine directors as of June 30, 2025, including three executive directors, two non-executive directors, and four independent non-executive directors[93] - The audit committee, composed of three independent non-executive directors, has reviewed the unaudited interim financial statements for the six months ending June 30, 2025[94] - The company has adopted a standard code for securities trading, with all directors confirming compliance for the six months ending June 30, 2025[89] - The company has established an ESG committee to oversee environmental, social, and governance matters since February 20, 2023[99] - The remuneration committee is responsible for reviewing compensation strategies and evaluating executive performance as of June 30, 2025[96] - The strategic investment committee is tasked with business development and investment analysis, chaired by the executive director as of June 30, 2025[98] - The company has committed to improving corporate governance practices to enhance shareholder value[93] - The company has complied with the corporate governance code during the period from January 1, 2025, to June 30, 2025[88] Shareholder Information - As of June 30, 2025, the company has issued a total of 2,568,818,722 voting shares, with major shareholders holding 79.51% of these shares[52] - Mr. Liang Wengen holds a beneficial interest in 2,579,688,722 shares, representing 79.85% of the company's voting shares[52] - The company maintains sufficient public float as per the listing rules, ensuring compliance with regulatory requirements[54] - The 2013 Share Option Scheme, adopted on February 16, 2013, is set to expire on February 15, 2023, with no changes in options granted as of June 30, 2025[55][56] - The 2023 stock option plan was approved on August 11, 2023, replacing the expired 2013 plan, expanding eligible participants to include related entity participants and service providers[58] - The overall plan limit is set at 318,860,946 shares, with a service provider sub-limit of 31,886,094 shares, representing 10% and 1% of the issued share capital respectively[63] - The 2023 stock option plan is valid for ten years, expiring on August 10, 2033, unless terminated earlier by shareholders[64] - The vesting period for all stock options is a minimum of 12 months, with the board having discretion to shorten this period for employee participants[65] - Eligible participants under the 2023 stock option plan include employees, related entity participants, and service providers deemed to contribute to the group's performance[61] - The plan aims to incentivize eligible participants to contribute more significantly to the group and to retain key contributors[60] - No stock options have been granted under the 2023 stock option plan since its adoption[69] Dividend and Share Issuance - The company has not declared an interim dividend for the six months ending June 30, 2025, consistent with the previous period[91] - The company declared a final dividend of RMB (983,716) thousand for the year 2024[112] - The company issued 16,813,599 new ordinary shares during the six months ended June 30, 2025, increasing the total issued and paid-up ordinary shares to 3,230,704,104[193] - The total issued and paid-up capital as of June 30, 2025, was RMB 318,941,000, up from RMB 317,394,000 as of December 31, 2024, reflecting a growth of about 0.5%[193] Segment Performance - Total revenue for the six months ended June 30, 2025, was RMB 594,104,000, an increase from RMB 368,568,000 in the same period of 2024, representing a growth of 60.9%[133] - The mining equipment segment reported a profit of RMB 768.612 million, while the logistics equipment segment reported RMB 739.110 million, and the emerging industry equipment segment reported RMB 57.169 million[123] - The mining equipment segment generated revenue of RMB 4,636,791,000, while the logistics equipment segment contributed RMB 3,680,398,000, and the oil and gas equipment segment brought in RMB 1,324,966,000[130] Government Subsidies and Interest Income - Bank interest income rose significantly to RMB 118,623,000 in 2025 from RMB 59,234,000 in 2024, marking a 100.4% increase[133] - Government subsidies increased to RMB 293,842,000 in 2025, up from RMB 170,929,000 in 2024, reflecting a growth of 72.0%[133] Liabilities and Financial Position - As of June 30, 2025, total liabilities included RMB 12,047.422 million in unallocated corporate liabilities[123] - The company’s total liabilities increased to RMB 10,889,469,000 as of June 30, 2025, compared to RMB 9,934,599,000 at the end of 2024, reflecting a growth of approximately 9.6%[182] - The company’s interest-bearing bank and other borrowings totaled RMB 10,889,469,000 as of June 30, 2025, compared to RMB 9,934,599,000 as of December 31, 2024, reflecting an increase of approximately 9.6%[182] Impairment and Receivables - The group recognized a net impairment of trade receivables amounting to RMB 85.534 million during the period[123] - The impairment loss for trade receivables rose to RMB 798,661,000 as of June 30, 2025, compared to RMB 718,022,000 as of December 31, 2024, indicating an increase of about 11.2%[164] - The company reported that trade receivables from subsidiaries amounted to RMB 3,489,092,000 as of June 30, 2025, compared to RMB 2,433,709,000 as of December 31, 2024, representing a significant increase of approximately 43.4%[162]

目錄 2 公司資料 4 財務摘要 6 業務摘要 7 主席報告 12 管理層討論及分析 20 其他資料 44 中期財務報告的審閱報告 45 中期合併綜合收益表 47 中期合併資產負債表 50 中期合併權益變動表 51 中期合併現金流量表 52 未經審核的合併中期財務報告附註 64 釋義 公司資料 董事會 執行董事 劉春河先生（主席） 李平先生 葉椿建先生 蘇鑒先生 提名委員會 獨立非執行董事 高明先生（於2025年8月29日辭任） 池書進先生 陳思超女士 陳玉宇先生（於2025年8月29日獲委任） 公司秘書 宋朋亮先生 授權代表 李平先生 宋朋亮先生 審核委員會 池書進先生（主席） 陳思超女士 高明先生（於2025年8月29日辭任） 陳玉宇先生（於2025年8月29日獲委任） 薪酬委員會 陳思超女士（主席） 蘇鑒先生 高明先生（於2025年8月29日辭任） 陳玉宇先生（於2025年8月29日獲委任） 劉春河先生（主席） 陳思超女士 池書進先生 核數師 畢馬威會計師事務所 於《會計及財務匯報局條例》下的註冊公眾利益 實體核數師 香港 中環 太子大廈8樓 註冊辦事處 Maples Corporate Service ...

[Company Information](index=2&type=section&id=Company%20Information) This section provides an overview of the company's governance structure, key personnel, financial partners, and operational presence across various regions [Board of Directors and Committees](index=3&type=section&id=Board%20of%20Directors%20and%20Committees) This section lists the executive and independent non-executive directors of the company's board, along with the composition of the Audit, Remuneration, and Nomination Committees - The Board of Directors comprises **6 executive directors** and **4 independent non-executive directors**[5](index=5&type=chunk) - The composition of the Audit, Remuneration, and Nomination Committees is clearly outlined, with Mr. Kong Siu Chee as Audit Committee Chairman, Mr. Tsui Chi Kong as Remuneration Committee Chairman, and Mr. Pong Tai Fan as Nomination Committee Chairman[5](index=5&type=chunk) [Company Secretary, Principal Bankers, and Auditor](index=3&type=section&id=Company%20Secretary,%20Principal%20Bankers,%20and%20Auditor) This section provides information on the company's company secretary, principal bankers, and external auditor, as well as the addresses of its registered and head offices - The Company Secretary is Yu Ding Qian[5](index=5&type=chunk) - Principal bankers include The Hongkong and Shanghai Banking Corporation Limited, The Bank of East Asia, Limited, Hang Seng Bank Limited, and others[5](index=5&type=chunk) - The auditor is Ernst & Young[5](index=5&type=chunk) - The company's stock code is **01556**[6](index=6&type=chunk) [Business Locations and Contact Information](index=4&type=section&id=Business%20Locations%20and%20Contact%20Information) This section details the business locations and contact information for K. C. Group Holdings Limited and its principal subsidiaries in Hong Kong, Macau, and Singapore - K. C. Group Holdings Limited's head office is located at Room 2308, 23rd Floor, Wing On Centre, 111 Connaught Road Central, Hong Kong[7](index=7&type=chunk) - Principal subsidiaries such as K. C. Engineering Limited, Wing Fung Engineering Limited, and Drilltech Geotechnical Engineering Limited have business locations in Hong Kong, Macau, and Singapore[8](index=8&type=chunk)[9](index=9&type=chunk)[10](index=10&type=chunk)[11](index=11&type=chunk)[12](index=12&type=chunk) [Chairman's Statement](index=5&type=section&id=Chairman's%20Statement) This statement reviews the Group's financial performance, operational highlights, and strategic outlook, emphasizing growth, market challenges, and future development plans [Financial Performance and Dividend Policy](index=5&type=section&id=Financial%20Performance%20and%20Dividend%20Policy) The Group achieved significant growth in revenue and profit during the reporting period, but the Board recommends not declaring an interim dividend 2025 First Half Financial Performance Comparison | Indicator | 2025 First Half (HK$'000) | 2024 First Half (HK$'000) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 1,205,100 | 1,102,100 | +9.4% | | Profit and Total Comprehensive Income | 62,100 | 55,200 | +12.5% | - The Board recommends not declaring an interim dividend for the six months ended June 30, 2025 (2024: nil)[14](index=14&type=chunk) [Business and Operations Review](index=5&type=section&id=Business%20and%20Operations%20Review) The Group primarily engages in foundation construction and ancillary services, and drilling and site investigation works in Hong Kong, with numerous projects underway in both segments during the reporting period - The Group is engaged in foundation construction and ancillary services (Foundation Segment) and drilling and site investigation works (Drilling Segment) for public and private organizations in Hong Kong[15](index=15&type=chunk) Projects Overview as of June 30, 2025 | Segment | Number of Ongoing Projects | Contract Value (HKD) | | :--- | :--- | :--- | | Foundation Segment | 21 | 3,472,400,000 | | Drilling Segment | 46 | 1,118,000,000 | [Outlook and Future Plans](index=5&type=section&id=Outlook%20and%20Future%20Plans) Hong Kong's economy is steadily expanding with government infrastructure investment providing a growth framework, but private sector activity is shrinking, intensifying market competition; the Group will adopt a prudent strategy, focusing on risk-adjusted returns, and investing in talent development, digital innovation, and business diversification - Hong Kong's economy expanded steadily by **3.1% year-on-year** in real GDP during the second quarter of 2025, driven by regional development momentum and government stimulus measures[16](index=16&type=chunk) - The 2025-26 Budget reaffirms the government's commitment to long-term infrastructure and housing policies, allocating **HKD 3.7 billion** to accelerate the development of the Northern Metropolis[16](index=16&type=chunk) - Construction sector performance was mixed, with public sector output rebounding by **17.4%**, but private sector activity continuing to shrink by **10.7%**, and transport-related construction falling by **19.4%**[17](index=17&type=chunk) - Reduced tender preparation has intensified competition, leading the Group to maintain a prudent and selective strategy, focusing on risk-adjusted returns to preserve profit margins and manage risks[17](index=17&type=chunk) - The Group invests in K. C. Group Academy for systematic new talent training and actively invests in Artificial Intelligence (AI) applications and next-generation IT systems to enhance efficiency[18](index=18&type=chunk) - Drilltech successfully secured offshore exploration contracts and expanded laboratory testing services, while Wing Fung Engineering Limited actively explores development opportunities in site formation and civil engineering[19](index=19&type=chunk) - The Group will continue to prioritize investments in automation technology, modern equipment, and warehouse optimization, while expanding its business footprint in both public and private infrastructure markets[19](index=19&type=chunk) - Under the guidance of the Environmental, Social and Governance Committee, the Group is advancing carbon emission monitoring, employee well-being, and community engagement activities to strengthen its sustainability commitments[19](index=19&type=chunk) - Looking ahead, the Group will focus on enhancing operational resilience, seizing cross-sector growth opportunities, exploring alternative supply chain solutions for cost savings, and optimizing resource allocation and strengthening risk management[20](index=20&type=chunk) [Management Discussion and Analysis](index=7&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a detailed analysis of the Group's financial performance, including revenue, profit, financial position, cash flows, and significant related party transactions [Revenue and Profit Analysis](index=7&type=section&id=Revenue%20and%20Profit%20Analysis) The Group's revenue and net profit both increased, primarily due to strong performance in the Foundation Segment and higher other income, despite a decline in Drilling Segment revenue and a slight decrease in gross profit margin due to intensified competition 2025 First Half Revenue Composition and Change | Segment | 2025 First Half (HK$'000) | 2024 First Half (HK$'000) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Total Revenue | 1,205,100 | 1,102,100 | +9.4% | | Foundation Segment Revenue | 1,036,700 | 805,800 | +28.6% | | Drilling Segment Revenue | 168,400 | 296,200 | -43.1% | - The increase in Foundation Segment revenue was mainly due to the satisfactory progress of several foundation and pile cap contracts, while the decrease in Drilling Segment revenue was primarily due to higher-value contracts gradually nearing completion[23](index=23&type=chunk) 2025 First Half Gross Profit and Gross Profit Margin Change | Indicator | 2025 First Half (HK$'000) | 2024 First Half (HK$'000) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Gross Profit | 189,500 | 174,500 | +8.6% | | Gross Profit Margin | 15.7% | 15.8% | -0.1% | - The slight decrease in gross profit margin was due to intensified competition for new projects, with the Group maximizing contract profits through stringent project cost control[24](index=24&type=chunk) 2025 First Half Other Income and Gains Change | Indicator | 2025 First Half (HK$'000) | 2024 First Half (HK$'000) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Other Income and Gains | 15,700 | 10,700 | +46.8% | - The increase in other income was mainly due to interest income of **HKD 7,500,000** from a loan to a related company, partially offset by a decrease in bank deposit interest income[25](index=25&type=chunk) 2025 First Half Administrative Expenses Change | Indicator | 2025 First Half (HK$'000) | 2024 First Half (HK$'000) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Administrative Expenses | 125,300 | 119,800 | +4.6% | - The increase in administrative expenses was mainly due to an increase in staff costs of **HKD 4,400,000** and an increase in repair and maintenance costs of **HKD 1,500,000**[26](index=26&type=chunk) 2025 First Half Net Profit Change | Indicator | 2025 First Half (HK$'000) | 2024 First Half (HK$'000) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Net Profit | 62,100 | 55,200 | +12.5% | - The increase in net profit was mainly attributable to an increase in gross profit of **HKD 15,100,000** and an increase in other income of **HKD 5,000,000**, partially offset by an increase in administrative expenses of **HKD 5,500,000** and an increase in impairment of trade receivables of **HKD 4,500,000**[27](index=27&type=chunk) [Financial Review](index=8&type=section&id=Financial%20Review) The Group maintains a robust financial position with ample liquidity and no debt, adopting a prudent financing policy, and contingent liabilities primarily consist of performance guarantees Bank and Time Deposit Balances | Date | Balance (HK$'000) | | :--- | :--- | | June 30, 2025 | 634,400 | | December 31, 2024 | 562,500 | - The increase in bank and time deposit balances was mainly due to net cash inflows from securing several large foundation and site investigation contracts[28](index=28&type=chunk) - The Group maintained a **sound financial position** and remained **debt-free** during the review period[28](index=28&type=chunk) - The Group adopts a prudent financing and financial policy, closely monitoring its liquidity position[29](index=29&type=chunk) Contingent Liabilities | Date | Amount (HK$'000) | | :--- | :--- | | June 30, 2025 | 261,100 | | December 31, 2024 | 268,500 | - Contingent liabilities primarily consist of corporate guarantees and counter-indemnities provided to banks and insurance companies for performance bonds issued by the Group[30](index=30&type=chunk) - As of June 30, 2025, the Group employed **723 staff** in Hong Kong, with remuneration packages reviewed annually and various benefits provided[31](index=31&type=chunk) [Related Party Transactions](index=9&type=section&id=Related%20Party%20Transactions) The Group engaged in two main related party transactions: a loan to K. C. Industries Limited and a framework agreement for construction services with members of K. Wah Group Limited - The Company provided a loan of **HKD 250,000,000** to K. C. Industries Limited at an annual interest rate of **6%**, with the repayment period approved for a further **12-month extension**[32](index=32&type=chunk)[69](index=69&type=chunk) - For the period ended June 30, 2025, interest income receivable/received under the loan agreement was approximately **HKD 7,500,000**[33](index=33&type=chunk) - A framework agreement was signed with members of K. Wah Group Limited to provide certain services for three years from January 1, 2025, to December 31, 2027, with an annual cap of **HKD 135,000,000**[34](index=34&type=chunk) - For the period ended June 30, 2025, amounts receivable/received under the framework agreement were approximately **HKD 1,500,000**[35](index=35&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=10&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement presents the Group's financial performance for the period, detailing revenue, costs, profits, and comprehensive income [Profit or Loss Statement Overview](index=10&type=section&id=Profit%20or%20Loss%20Statement%20Overview) During the reporting period, the company's revenue increased by **9.4%** year-on-year to **HKD 1,205,100 thousand**, and gross profit grew by **8.6%** to **HKD 189,541 thousand**; despite increased administrative expenses and impairment of trade receivables, profit and total comprehensive income for the period still rose by **12.5%** to **HKD 62,084 thousand**, with basic earnings per share at **4.14 HK cents** 2025 First Half Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data | Indicator | 2025 First Half (HK$'000) | 2024 First Half (HK$'000) | | :--- | :--- | :--- | | Revenue | 1,205,100 | 1,102,053 | | Cost of construction | (1,015,559) | (927,571) | | Gross Profit | 189,541 | 174,482 | | Other income and gains | 15,705 | 10,695 | | Administrative expenses | (125,269) | (119,809) | | Impairment of trade receivables | (4,468) | – | | Finance costs | (5) | (56) | | Profit before tax | 75,504 | 65,312 | | Income tax expense | (13,420) | (10,115) | | Profit and total comprehensive income for the period | 62,084 | 55,197 | | Basic and diluted earnings per share | 4.14 HK cents | 3.68 HK cents | [Condensed Consolidated Statement of Financial Position](index=11&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement presents the Group's assets, liabilities, and equity at a specific point in time, providing a snapshot of its financial health [Financial Position Overview](index=11&type=section&id=Financial%20Position%20Overview) As of June 30, 2025, the company's total assets slightly increased, and net current assets remained robust; total non-current assets were **HKD 498,468 thousand**, and total current assets were **HKD 1,604,398 thousand**, with significant increases in trade receivables and cash and cash equivalents; total current liabilities were **HKD 1,257,085 thousand**, mainly comprising other payables and accrued expenses 2025 June 30 Condensed Consolidated Statement of Financial Position Key Data | Indicator | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Total non-current assets | 498,468 | 502,061 | | Total current assets | 1,604,398 | 1,502,488 | | Trade receivables | 270,071 | 203,081 | | Loan to a related company | 250,000 | 250,000 | | Cash and cash equivalents | 604,422 | 562,530 | | Total current liabilities | 1,257,085 | 1,159,486 | | Trade payables and retention money | 191,112 | 265,633 | | Other payables and accrued expenses | 1,056,530 | 888,225 | | Net current assets | 347,313 | 343,002 | | Net assets | 805,242 | 803,157 | | Total equity | 805,242 | 803,157 | [Condensed Consolidated Statement of Changes in Equity](index=12&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement illustrates the changes in the Group's equity over the reporting period, reflecting profits, dividends, and other comprehensive income [Equity Changes Overview](index=12&type=section&id=Equity%20Changes%20Overview) As of June 30, 2025, the company's total equity increased from **HKD 803,157 thousand** at the beginning of the period to **HKD 805,242 thousand**, primarily due to the contribution from profit and total comprehensive income for the period, partially offset by declared final and special dividends 2025 First Half Condensed Consolidated Statement of Changes in Equity | Indicator | June 30, 2025 (HK$'000) | January 1, 2025 (HK$'000) | | :--- | :--- | :--- | | Total Equity | 805,242 | 803,157 | | Profit and total comprehensive income for the period | 62,084 | N/A | | Final and special dividends declared for 2024 | (60,000) | N/A | - In the corresponding period of 2024, total equity increased from **HKD 730,206 thousand** to **HKD 725,403 thousand**, with profit and total comprehensive income for the period at **HKD 55,197 thousand**, and final and special dividends declared for 2023 at **(HKD 60,000 thousand)**[39](index=39&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=13&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This statement provides insights into the Group's cash generation and utilization from operating, investing, and financing activities [Cash Flow Overview](index=13&type=section&id=Cash%20Flow%20Overview) For the six months ended June 30, 2025, net cash inflow from operating activities was **HKD 102,313 thousand**, a significant decrease from the prior year; net cash outflow from investing activities increased to **HKD 60,343 thousand**, mainly due to purchases of property, plant and equipment and an increase in time deposits; net cash outflow from financing activities remained low; cash and cash equivalents at the end of the period increased to **HKD 604,422 thousand** 2025 First Half Condensed Consolidated Statement of Cash Flows Key Data | Indicator | 2025 First Half (HK$'000) | 2024 First Half (HK$'000) | | :--- | :--- | :--- | | Net cash inflow from operating activities | 102,313 | 200,010 | | Net cash outflow from investing activities | (60,343) | (29,676) | | Net cash outflow from financing activities | (78) | (426) | | Net increase in cash and cash equivalents | 41,892 | 169,908 | | Cash and cash equivalents at end of period | 604,422 | 736,443 | - The decrease in operating cash inflow was mainly affected by an increase in trade receivables and a decrease in trade payables and retention money[42](index=42&type=chunk) - The increase in investing cash outflow was primarily due to higher capital expenditure on property, plant and equipment (**HKD 46,353 thousand** vs **HKD 39,143 thousand**) and an increase in time deposits of **HKD 30,000 thousand**[42](index=42&type=chunk) [Notes to the Condensed Consolidated Interim Financial Statements](index=15&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated interim financial statements [Company Information and Accounting Policies](index=15&type=section&id=Company%20Information%20and%20Accounting%20Policies) This section reiterates the company's principal business activities and explains the basis of preparation and accounting policies for the interim financial statements, emphasizing consistency with annual financial statements and mentioning newly adopted accounting standards - The Company is an investment holding company, and its subsidiaries are principally engaged in foundation construction and drilling and site investigation works for public and private organizations in Hong Kong[44](index=44&type=chunk) - The unaudited condensed consolidated interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the disclosure requirements of Appendix D2 to the Listing Rules[45](index=45&type=chunk) - The accounting policies used in preparing the interim financial statements are consistent with those followed in the preparation of the 2024 annual financial statements, except for the initial adoption of revised Hong Kong Financial Reporting Standards accounting standards[45](index=45&type=chunk) [Segment Information](index=15&type=section&id=Segment%20Information) The Group categorizes its business into two operating segments based on service type: foundation construction and ancillary services, and drilling and site investigation, with detailed disclosures of revenue, results, assets, and liabilities for each segment - The Group has two reportable operating segments: foundation construction and ancillary services, and drilling and site investigation[47](index=47&type=chunk) 2025 First Half Operating Segment Revenue and Results | Segment | Sales to External Customers (HK$'000) | Segment Results (HK$'000) | | :--- | :--- | :--- | | Foundation Construction and Ancillary Services | 1,036,652 | 55,276 | | Drilling and Site Investigation | 168,448 | 17,589 | | **Total** | **1,205,100** | **72,865** | 2025 June 30 Operating Segment Assets and Liabilities | Segment | Segment Assets (HK$'000) | Segment Liabilities (HK$'000) | | :--- | :--- | :--- | | Foundation Construction and Ancillary Services | 1,441,004 | 725,648 | | Drilling and Site Investigation | 362,513 | 505,450 | | **Total** | **1,803,517** | **1,231,098** | 2024 First Half Operating Segment Revenue and Results | Segment | Sales to External Customers (HK$'000) | Segment Results (HK$'000) | | :--- | :--- | :--- | | Foundation Construction and Ancillary Services | 805,846 | 42,027 | | Drilling and Site Investigation | 296,207 | 24,903 | | **Total** | **1,102,053** | **66,930** | [Details of Revenue, Other Income, and Gains](index=19&type=section&id=Details%20of%20Revenue,%20Other%20Income,%20and%20Gains) This section provides a detailed analysis of customer contract revenue by type, geographical market, and timing of recognition, and specifies the composition of other income and gains, including bank interest income and interest income from related company loans - The Group's customer contract revenue is entirely derived from construction services, generated solely within the Hong Kong market, with revenue recognized over time as services are provided[58](index=58&type=chunk)[59](index=59&type=chunk) 2025 First Half Other Income and Gains Composition | Item | Amount (HK$'000) | | :--- | :--- | | Bank interest income | 6,550 | | Interest income from a loan to a related company | 7,500 | | Exchange gains | 497 | | Others | 1,158 | | **Total** | **15,705** | [Profit Before Tax and Taxation](index=22&type=section&id=Profit%20Before%20Tax%20and%20Taxation) This section lists the adjustments affecting profit before tax, including depreciation, staff welfare expenses, and impairment of trade receivables, and explains the basis for income tax calculation 2025 First Half Profit Before Tax Adjustments | Item | Amount (HK$'000) | | :--- | :--- | | Depreciation of property, plant and equipment | 32,198 | | Depreciation of right-of-use assets | 4,734 | | Staff welfare expenses (including directors' emoluments) | 332,708 | | Impairment of trade receivables | 4,468 | - Hong Kong profits tax is provided at a rate of **16.5%**, with taxes in other regions calculated based on prevailing local tax rates[62](index=62&type=chunk) [Earnings Per Share and Dividends](index=23&type=section&id=Earnings%20Per%20Share%20and%20Dividends) This section provides details on the calculation of basic earnings per share, reiterates the Board's recommendation not to declare an interim dividend, and discloses the final and special dividends paid for 2024 - Basic earnings per share are calculated based on profit attributable to ordinary equity holders of the Company of **HKD 62,084,000** and **1,500,000,000** ordinary shares in issue, amounting to **4.14 HK cents**[63](index=63&type=chunk) - The Group had no ordinary shares with potential dilutive effect in issue for the two periods ended June 30, 2025, and 2024[64](index=64&type=chunk) - The Board recommends not declaring an interim dividend for the six months ended June 30, 2025 (2024: nil)[65](index=65&type=chunk) - The final dividend of **2.0 HK cents** per ordinary share and a special dividend of **2.0 HK cents** per ordinary share for the year ended December 31, 2024, were paid on July 9, 2025[65](index=65&type=chunk) [Details of Assets and Liabilities](index=23&type=section&id=Details%20of%20Assets%20and%20Liabilities) This section details the acquisition of property, plant and equipment, the composition, aging, and concentration risk of trade receivables, the terms of related company loans, and the aging analysis of trade payables and retention money Property, Plant and Equipment Acquisitions | Period | Acquisition Amount (HK$'000) | | :--- | :--- | | 2025 First Half | 46,353 | | 2024 First Half | 39,143 | Trade Receivables | Date | Amount (HK$'000) | | :--- | :--- | | June 30, 2025 | 270,071 | | December 31, 2024 | 203,081 | - Trade receivables face concentration risk, with the largest and top five customers accounting for **23%** and **60%** of the total, respectively (December 31, 2024: **15%** and **33%**)[67](index=67&type=chunk) June 30, 2025 Trade Receivables Aging Analysis | Aging | Amount (HK$'000) | | :--- | :--- | | Current to 30 days | 137,792 | | 31 to 60 days | 65,604 | | 61 to 90 days | 54,904 | | Over 90 days | 11,771 | | **Total** | **270,071** | - A loan of **HKD 250,000,000** to a related company is unsecured, bears interest at **6%** per annum, and its repayment period has been approved for a further **12-month extension**[69](index=69&type=chunk) Trade Payables and Retention Money | Date | Amount (HK$'000) | | :--- | :--- | | June 30, 2025 | 191,112 | | December 31, 2024 | 265,633 | - Trade payables are typically settled within **30 days**, while retention money has a repayment period ranging from **one to two years**[71](index=71&type=chunk) - The issued and fully paid share capital consists of **1,500,000,000 shares** with a par value of **HKD 0.10** per share, totaling **HKD 150,000 thousand**[72](index=72&type=chunk) [Contingent Liabilities and Related Party Transactions](index=26&type=section&id=Contingent%20Liabilities%20and%20Related%20Party%20Transactions) This section discloses the Group's contingent liabilities, primarily performance guarantees, and details significant related party transactions during the period, including rent, franchise fees, purchases, construction revenue, and interest income Contingent Liabilities | Date | Amount (HK$'000) | | :--- | :--- | | June 30, 2025 | 261,124 | | December 31, 2024 | 268,510 | - Contingent liabilities primarily consist of corporate guarantees and counter-indemnities provided to banks and an insurance company for performance bonds issued by the Group in the ordinary course of business to its customers[73](index=73&type=chunk) 2025 First Half Related Party Transactions | Transaction Type | Amount (HK$'000) | | :--- | :--- | | Rent paid to fellow subsidiaries | 1,128 | | Franchise fees paid to a related company | 106 | | Purchases from fellow subsidiaries | 310 | | Construction revenue received from a fellow subsidiary | 1,459 | | Interest income received from a related company | 7,500 | - Rent paid to fellow subsidiaries and franchise fees paid to a related company are based on market rates[74](index=74&type=chunk) 2025 First Half Key Management Personnel Remuneration | Item | Amount (HK$'000) | | :--- | :--- | | Short-term employee benefits | 42,066 | | Employee retirement benefits | 289 | | **Total** | **42,355** | [Capital Commitments and Fair Value of Financial Instruments](index=27&type=section&id=Capital%20Commitments%20and%20Fair%20Value%20of%20Financial%20Instruments) This section discloses the Group's capital commitments, primarily for the acquisition of plant and machinery, and explains the fair value assessment of financial instruments, noting that the fair value of financial instruments maturing in the short term approximates their carrying amounts Capital Commitments | Date | Amount (HK$'000) | | :--- | :--- | | June 30, 2025 | 14,228 | | December 31, 2024 | 26,118 | - Management has assessed that the fair value of financial instruments maturing in the short term (such as cash and cash equivalents, trade receivables, trade payables, etc.) approximates their carrying amounts[78](index=78&type=chunk) - As of June 30, 2025, and December 31, 2024, the Group had no financial assets and liabilities measured at fair value[79](index=79&type=chunk) [Other Information](index=28&type=section&id=Other%20Information) This section covers corporate governance practices, directors' and major shareholders' interests, and dealings in listed shares [Corporate Governance](index=28&type=section&id=Corporate%20Governance) The company has fully complied with the Corporate Governance Code and the Model Code for Securities Transactions by Directors of Listed Issuers under the Listing Rules, and its interim results have been reviewed by the Audit Committee comprising independent non-executive directors - All directors of the Company have confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules throughout the six months ended June 30, 2025[80](index=80&type=chunk) - The Company has complied with all relevant code provisions of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules during the six months ended June 30, 2025[81](index=81&type=chunk) - The Audit Committee, comprising four independent non-executive directors, has reviewed the Company's interim results for the six months ended June 30, 2025[82](index=82&type=chunk) [Directors' and Major Shareholders' Interests](index=28&type=section&id=Directors'%20and%20Major%20Shareholders'%20Interests) This section discloses the interests and short positions of directors and major shareholders in the company's shares, with Director Yu Wing Sang holding **0.33%** of shares, and Dr. Wong Sai Chung and his associated companies being the largest shareholders, holding **74.50%** of shares Directors' Long Positions in the Company's Ordinary Shares (as of June 30, 2025) | Director Name | Number of Shares Held (shares) | Percentage of Company's Issued Share Capital | | :--- | :--- | :--- | | Yu Wing Sang | 5,000,000 | 0.33% | - As of June 30, 2025, none of the directors had any interests or short positions in the shares, underlying shares, or debentures of the Company or any of its associated corporations that were required to be recorded under Section 352 of the Securities and Futures Ordinance, or to be notified to the Company and the Stock Exchange under the Model Code[83](index=83&type=chunk) - At no time during the six months ended June 30, 2025, did the Company grant any rights to any director or their respective spouses or minor children to acquire benefits by means of purchasing shares or debentures[84](index=84&type=chunk) Major Shareholders' Long Positions in the Company's Ordinary Shares (as of June 30, 2025) | Name | Capacity and Nature of Interest | Number of Ordinary Shares Held (shares) | Percentage of Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Wong Sai Chung (deceased) | Interest held through controlled corporations | 1,117,500,000 | 74.50% | | K. Wah Group Limited | Beneficial owner | 1,117,500,000 | 74.50% | | Enhancement Investments Limited | Interest held through a controlled corporation | 1,117,500,000 | 74.50% | - Dr. Wong Sai Chung and Enhancement Investments Limited are both deemed to be interested in the same **1,117,500,000 shares**, and Enhancement Investments Limited is wholly and beneficially owned by Dr. Wong Sai Chung[85](index=85&type=chunk) [Dealings in Listed Shares](index=29&type=section&id=Dealings%20in%20Listed%20Shares) During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed shares - During the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed shares[87](index=87&type=chunk)

Financial Performance - The company reported a significant increase in revenue, achieving a total of $500 million for the first half of 2024, representing a 25% year-over-year growth[10]. - The company's revenue for the first half of 2025 was approximately RMB 143.5 million, a decrease of 57.4% compared to RMB 336.5 million in the first half of 2024[11]. - Gross profit for the first half of 2025 was RMB 44.4 million, down 68.9% from RMB 142.8 million in the same period last year[11]. - Net profit attributable to the company's owners for the first half of 2025 was RMB 6.9 million, a decline of 91.6% from RMB 82.5 million in the first half of 2024[11]. - Basic earnings per share for the first half of 2025 were RMB 0.18, a decrease of 93.5% compared to RMB 2.75 in the first half of 2024[11]. - The company's profit for the reporting period decreased by RMB 76.0 million or 92.6% to RMB 6.1 million, compared to RMB 82.1 million in the first half of 2024[40]. - The company reported a net cash outflow from operating activities of RMB 103,560 thousand for the six months ended June 30, 2025, compared to an outflow of RMB 14,908 thousand in the previous year[140]. Revenue Breakdown - Revenue from mainland China decreased by 58.9% to RMB 78.8 million in the first half of 2025, accounting for 54.9% of total revenue[13]. - Overseas revenue also declined by 55.3% to RMB 64.7 million, representing 45.1% of total revenue in the first half of 2025[13]. - Revenue from the ship desulfurization system dropped by 77.9% from RMB 204.4 million in H1 2024 to RMB 45.2 million in H1 2025, primarily due to new ship projects being in installation and commissioning stages[15]. - Revenue from ship energy-saving devices decreased by 65.9% from RMB 22.6 million in H1 2024 to RMB 7.7 million in H1 2025[16]. - Revenue from the ship clean energy supply system increased by 173.3% from RMB 13.3 million in H1 2024 to RMB 36.3 million in H1 2025[16]. - Maritime services revenue fell by 43.6% from RMB 96.2 million in H1 2024 to RMB 54.3 million in H1 2025, mainly due to longer delivery cycles for new orders[16]. Strategic Initiatives - The company provided guidance for the second half of 2024, projecting revenue growth of 20% compared to the first half[10]. - New product launches are expected to contribute an additional $100 million in revenue by the end of 2024[10]. - Market expansion plans include entering three new international markets by Q4 2024, targeting a 10% increase in global market share[10]. - The company is exploring potential acquisitions to enhance its product portfolio, with a budget of $200 million allocated for this purpose[10]. - A new strategic partnership was announced, expected to drive a 5% increase in sales through collaborative marketing efforts[10]. - The company aims to reduce operational costs by 10% through efficiency improvements in the supply chain[10]. - ESG initiatives are being prioritized, with a commitment to invest $30 million in sustainable practices over the next two years[10]. Research and Development - The company is investing $50 million in R&D for new technologies aimed at enhancing product efficiency[10]. - The company continues to invest in R&D for clean energy technologies, aiming to improve system performance and reduce costs[17]. - The company successfully obtained 6 new patents during the reporting period, bringing the total to 86 patents, including 45 invention patents[22]. Cash Flow and Financing - Cash and cash equivalents increased by RMB 163.3 million or 122.4% to RMB 296.7 million as of June 30, 2025, from RMB 133.4 million as of December 31, 2024, primarily due to proceeds from the issuance of H shares and bank loans[46]. - The net cash used in investing activities was RMB 132.4 million for the six months ended June 30, 2025, compared to RMB 36.5 million for the same period in 2024, primarily due to investments in principal-protected financial products and a deposit for vessel acquisition[52]. - The net cash generated from financing activities was RMB 398.8 million for the six months ended June 30, 2025, compared to a net cash outflow of RMB 44.0 million for the same period in 2024, mainly due to the completion of the listing on the Hong Kong Stock Exchange[53]. Shareholder Information - The board of directors did not recommend the distribution of an interim dividend for the reporting period[12]. - The company has not declared an interim dividend for the six months ending June 30, 2025, consistent with the previous period[65]. - The final dividend for the year ended December 31, 2024, is RMB 1.5 per ordinary share, totaling RMB 60 million, which was approved by shareholders[119]. - The total number of options under the pre-IPO share option plan is capped at 3,930,000 H shares, which accounts for approximately 13.1% of the issued share capital as of July 27, 2024[79]. - The pre-IPO share option plan aims to align the interests of employees and senior management with those of shareholders, promoting sustainable development[78]. Operational Metrics - The total backlog of orders as of June 30, 2025, amounted to RMB 861.7 million, an increase of RMB 278.6 million or 47.8% from RMB 583.1 million on December 31, 2024[23]. - Inventory increased by RMB 25.6 million or 89.5% to RMB 54.2 million as of June 30, 2025, from RMB 28.6 million as of December 31, 2024, due to a rapid growth in new orders and backlog[43]. - Trade and other receivables rose by RMB 83.7 million or 50.5% to RMB 249.3 million as of June 30, 2025, compared to RMB 165.6 million as of December 31, 2024[44]. - The workforce increased to 126 employees as of June 30, 2025, from 111 employees as of December 31, 2024, indicating growth in operational capacity[62]. Risk Management - The company has established risk management strategies for foreign exchange risks, particularly related to USD, although it has not implemented a currency hedging policy[61]. - The company has no significant contingent liabilities as of June 30, 2025, indicating a stable risk profile[59]. Market Conditions - The company attributed the revenue decline to longer delivery cycles for most new orders received at the beginning of 2025, resulting in unrecognized revenue during the reporting period[13]. - Overseas revenue decreased from RMB 144.7 million in H1 2024 to RMB 64.7 million in H1 2025, a decline of approximately 55.3% due to geopolitical tensions and rising dry dock fees[14].

Financial Performance - Production revenue increased by 197% to CAD 2,125,000 for the three months ended June 30, 2025, compared to CAD 715,000 in the same period of 2024[11]. - Daily average sales volume rose by 358% to 1,300 barrels of oil equivalent per day for the three months ended June 30, 2025, compared to 284 barrels in the same period of 2024[11]. - Net loss for the six months ended June 30, 2025, was CAD 3,503,000, a slight increase of 3% compared to CAD 3,390,000 in the same period of 2024[11]. - The company reported a basic loss per share of CAD 0.02 for the six months ended June 30, 2025, compared to CAD 0.01 in the same period of 2024[11]. - The company reported a net loss of CAD 5.31 million in Q2 2025, influenced by a CAD 2.4 million write-off of undeveloped land due to expiration[26]. - For the three months ended June 30, 2025, natural gas, LNG, and condensate royalties were CAD 71, a 134% increase from CAD (212) in 2024; for six months, royalties were CAD 161, a 156% increase from CAD (285) in 2024[37]. - The company reported a net loss of CAD 5,312,881 for the three months ended June 30, 2025, compared to a net loss of CAD 3,848,098 for the same period in 2024, indicating an increase in losses of approximately 38%[128]. Assets and Liabilities - Total assets decreased to CAD 21,924,000 as of June 30, 2025, down from CAD 25,888,000 as of December 31, 2024[12]. - Total liabilities increased to CAD 51,470,000 as of June 30, 2025, compared to CAD 47,349,000 as of December 31, 2024[12]. - The company’s accumulated losses reached CAD 267,961,000 as of June 30, 2025, compared to CAD 259,072,000 as of December 31, 2024[12]. - The company’s net debt as of June 30, 2025, was CAD 49,715,000, compared to CAD 45,443,000 as of December 31, 2024, indicating a rise in financial leverage[53]. - The capital structure showed a capital debt ratio of 246% as of June 30, 2025, up from 189% at the end of 2024, reflecting increased reliance on debt financing[53]. - The company has a working capital deficit of CAD 24 million as of June 30, 2025, with operating losses of CAD 5.3 million and CAD 7.8 million for the three and six months ended June 30, 2025, respectively[63]. Production and Sales - The company is focused on exploring and developing rich liquefied natural gas and light crude oil in Alberta Foothills and Peace River regions[4]. - Approximately 90% of the company's revenue comes from the Basing area, with ongoing evaluations for drilling in 2026 and 2027 if prices reach 2022 averages[18]. - In Q2 2025, the average daily production of natural gas was 7,194 cubic feet, while total production was 1,297 barrels of oil equivalent per day[24]. - Natural gas production increased by 429% to 7,194 cubic feet per day for the three months ended June 30, 2025, compared to 1,361 cubic feet per day in the same period of 2024[29]. - Total production revenue rose by 197% to CAD 2,125,000 for the three months ended June 30, 2025, compared to CAD 715,000 in the same period of 2024[32]. - The average market price for natural gas (AECO) increased by 63% to CAD 1.94 per cubic foot for the three months ended June 30, 2025, compared to CAD 1.19 in the same period of 2024[35]. Operational Strategy - The company plans to continue its operational strategies while navigating the challenges in the oil and gas industry[14]. - The company plans to explore forward sales contracts to secure production revenue during periods of low natural gas prices[25]. - The company had no forward sales contracts and adjusted nominations daily to reflect production changes, indicating operational flexibility[30]. - The company is continuously seeking additional financing opportunities, including alternative debt arrangements and joint venture opportunities, to manage its capital expenditures[91]. Financial Management - The company’s capital management policy aims to maintain financial flexibility and optimize capital use to provide appropriate returns to shareholders[52]. - The company is actively managing financial risks related to currency fluctuations, particularly with respect to its USD-denominated debt[84]. - The company has not entered into any financial derivative contracts as of June 30, 2025[84]. - The company manages liquidity risk by ensuring sufficient cash flow to meet obligations, aligning payment cycles with revenue collection[189]. Shareholder Information - As of June 30, 2025, the company has issued and outstanding 522,886,520 common shares, with 800,000 stock options at an exercise price of HKD 0.48[56]. - The company has a significant concentration of ownership, with major shareholders holding over 34% of the shares[108]. - The company has approved a stock option plan allowing the issuance of options to purchase common shares, capped at 10% of the total issued shares as of the approval date[111]. - The company did not declare any dividends for the three months and six months ended June 30, 2025, and 2024, maintaining a policy of reinvestment[179]. Risk Management - Management highlighted the importance of monitoring risks and uncertainties that could significantly affect actual results compared to forward-looking statements[14]. - The company anticipates that global uncertainties, including geopolitical tensions and supply chain disruptions, will significantly impact its operational performance and financing capabilities[63]. - The board has established a framework to identify, assess, and manage key risks faced by the company, with regular reviews of the internal control system[91].

2025 中期報告 2025 INTERIM REPORT GREATIME INTERNATIONAL HOLDINGS LIMITED 廣泰國際控股有限公司 INTERIM REPORT 2025 中期報告 王彬先生 杜書偉先生 舒達坤先生 非執行董事 目 錄 | 公司資料 | 2 | | --- | --- | | 財務摘要 | 3 | | 管理層討論及分析 | 5 | | 簡明綜合損益及其他全面收益表 | 20 | | 簡明綜合財務狀況表 | 21 | | 簡明綜合權益變動表 | 23 | | 簡明綜合現金流量表 | 25 | | 簡明綜合財務報表附註 | 27 | 1 廣泰國際控股有限公司 公司資料 執行董事 張炎林先生 獨立非執行董事 徐敦楷先生 趙衛紅女士 鄭冰先生 授權代表 舒達坤先生 李彥昇先生 審核委員會 鄭冰先生 （主席） 趙衛紅女士 徐敦楷先生 薪酬委員會 徐敦楷先生 （主席） 舒達坤先生 鄭冰先生 提名委員會 王彬先生 （主席） 趙衛紅女士 鄭冰先生 公司秘書 李彥昇先生， CPA 核數師 信 永 中 和（香 港）會 計 師 事 務 所 有 限 公 司 法律顧問 香港法律： 樂博律師 ...