Financial Performance - For the six months ended June 30, 2025, the company reported revenue of HKD 6,671 million, an increase of approximately 8% compared to HKD 6,157 million for the same period in 2024[17]. - EBITDA for the same period was HKD 338 million, up about 7% from HKD 315 million in 2024[17]. - Shareholders' profit attributable to the company was HKD 180.5 million, representing a 5% increase from HKD 172.1 million in 2024[17]. - The group's revenue growth was primarily driven by the sales increase of TFT products, touch screen display modules, and automotive systems, with automotive display business contributing approximately 94% of total revenue[20]. - Automotive display business revenue reached HKD 6,245,000,000, a 9% increase compared to HKD 5,752,000,000 in the same period of 2024[26]. - Operating profit for the same period was HKD 201,300,000, an increase of HKD 7,600,000 or about 4% year-on-year, despite challenges such as increased inventory costs and rising employee expenses[80]. - Net profit attributable to shareholders increased to HKD 180,500,000, representing a growth of about 5% year-on-year[22]. Cash and Debt Management - The company had total cash resources of HKD 4,748 million as of June 30, 2025, an increase of approximately 15% from HKD 4,122 million at the end of 2024[18]. - Bank loans amounted to HKD 434 million, a rise of about 16% from HKD 376 million at the end of 2024[18]. - The company aims to maintain a healthy debt level while ensuring that its primary funding source comes from operating activities[18]. - The company is committed to prudent working capital management to maintain strong cash resources[18]. - Cash resources amounted to HKD 4,748,000,000 as of June 30, 2025, an increase from HKD 4,122,000,000 at the end of 2024, reflecting strict control over working capital[85]. Market Position and Strategy - The company is focused on becoming a leading provider of automotive smart cockpit display solutions[7]. - The company has a leading global market share in automotive TFT display products and large to medium-sized display modules[7]. - The company is part of BOE Technology Group, a well-known supplier of semiconductor display technologies and services[7]. - The company maintains a strong market share in the global automotive display market, particularly in shipments of displays sized 8 inches and above[27]. - The company plans to continue its dual-driven strategy of "automotive + general industry" and aims to enhance its market position as a leading comprehensive smart cockpit display system solution provider[72]. Research and Development - The company has invested nearly HKD 900 million in R&D over the past three years, with a workforce of 464 R&D personnel focusing on key areas such as automotive OLED devices and AI integration[54]. - Research and development expenses for the period were HKD 151,000,000, a 10% increase compared to 2024, representing 2% of total revenue, indicating a stable R&D investment ratio[80]. - The PHUD technology has been successfully implemented in multiple automotive projects, enhancing driver experience by projecting critical information onto the windshield[55]. - The UB Cell display technology prototype has achieved a contrast ratio of up to 2,300:1, with ongoing development aiming for a target of 3,000:1[58]. - The company has successfully developed dual-view dual-touch display technology, generating significant customer interest and aiming for joint testing with clients in the automotive sector[64]. Sustainability and Environmental Goals - The company is committed to achieving carbon neutrality by 2050, with goals to reduce carbon emissions, energy and water consumption, and waste[52]. - The company has launched its first product carbon footprint certificate for a 10.1-inch vehicle-mounted LCD display panel, with a target to reduce carbon footprint by 2% by 2025[124]. - The company aims to achieve "carbon neutrality" by 2050, with a target to reduce carbon emissions/energy intensity by 70% by 2025, based on 2018 levels[118]. - The company plans to peak its carbon emissions from its own operations by 2028, with reductions of 30% and 50% by 2030 and 2035, respectively[118]. - The Chengdu factory achieved a renewable energy usage rate of over 60% in industrial production processes[132]. Employee and Community Engagement - The company continues to focus on employee well-being and community engagement initiatives[167]. - The company has implemented a talent development system through its "Youth Career Development Program," focusing on precise assessment and continuous training[164]. - The company is actively involved in leadership enhancement programs, such as the "鯤鵬計劃" for departmental leadership[165]. Shareholder Information - The company did not declare an interim dividend for the six months ending June 30, 2025, consistent with the previous year[170]. - As of June 30, 2025, the company had a total issued share capital of 791,575,204 shares, with directors holding a combined total of 3,905,700 shares, representing approximately 0.49% of the total[171]. - The largest shareholder, 京東方, holds 419,730,000 shares, accounting for 53.02% of the company's issued share capital[175]. - The company has a structured approach to share ownership and incentive plans, ensuring alignment with shareholder interests[174].

Operational Performance - As of June 30, 2025, the Group managed and operated a total of 103 medical institutions across 10 provinces and cities in China[17]. - The number of outpatient and emergency visits for self-owned hospitals was approximately 5.1 million, representing a year-over-year increase of 1.0%[17]. - In-patient visits were approximately 270,000, reflecting a year-over-year decrease of 3.9%[17]. - The hospital business segment reported revenue of RMB 4,259 million for the first half of 2025, a decrease of 7.4% compared to RMB 4,600 million in the same period of 2024[30]. - Out-patient and emergency visits increased by 1.0%, while in-patient visits decreased by 3.9% during the reporting period[32]. - The gross profit for the hospital business segment was RMB 670 million, representing a decrease of 27.4%, with a gross profit margin of 15.7% compared to 20.1% in the previous year[33]. - Revenue from other business segments was RMB 266 million, a decrease of 29.3%, while segment profit increased by 96.9% to RMB 292 million[34]. - The overall revenue for the group was RMB 4,525 million, down 9.1% from RMB 4,976 million in the previous year[30]. - The segment results for the hospital business recorded a profit of RMB 255 million, a significant decrease of 51.1% year-over-year[33]. - The average medical insurance fee per visit decreased, leading to a 5.8% decline in revenue per out-patient and emergency visit, as well as in-patient visit[32]. Financial Performance - The Group recorded a net profit of RMB 374 million for the Reporting Period, representing a decrease of 26.9% year-over-year, primarily due to a reduction in operating profits from member medical institutions[51][54]. - Finance costs for the Group amounted to approximately RMB 27.32 million, down from RMB 39.84 million in the corresponding period, attributed to proactive debt structure adjustments[49][52]. - The Group's income tax increased by 15.7% to approximately RMB 134 million, mainly due to a one-off compensation received under the Yan Hua IOT Agreement[50][53]. - The Group's consolidated bank balances and cash totaled approximately RMB 1.320 billion, an increase from RMB 1.054 billion as of December 31, 2024[56][59]. - The Group had bank borrowings of RMB 850 million as of June 30, 2025, down from RMB 1.436 billion at the end of 2024, with all borrowings consisting of fixed interest rates[57][58]. - The Group's gearing ratio was 9.9% as of June 30, 2025, a decrease from 10.8% at the end of 2024[58]. - The Group's leverage ratio was 9.9% as of June 30, 2025, down from 10.8% on December 31, 2024[61]. - Staff costs for the reporting period were approximately RMB 1,716 million, slightly up from RMB 1,704 million in the corresponding period[71]. - The Group had a total of 19,735 full-time employees as of June 30, 2025, a decrease from 19,953 employees on December 31, 2024[71]. - The Group declared an interim dividend of RMB 0.05 per share for the six months ended June 30, 2025, consistent with the corresponding period[78]. Investments and Acquisitions - As of June 30, 2025, the group did not have any significant investments or material acquisitions during the reporting period[37]. - The restructuring agreement with Jing Mei Group established two associates, JR Renkang and JR Holdings, with the group holding a 49% stake in JR Renkang[38]. - As of June 30, 2025, the Group's investment costs in JR Holdings and JR Renkang amounted to RMB874 million and RMB2.45 million, respectively, with a combined carrying amount of RMB1.036 billion, representing approximately 7.6% of the Group's total assets[39][41]. - During the Reporting Period, JR Holdings and JR Renkang achieved a total revenue of RMB231 million and a combined net profit of RMB97 million, with RMB47.77 million attributable to the Group[42][46]. Legal Matters - The Company is pursuing legal action regarding the Yan Hua IOT Agreement dispute, with a case filed in June 2025[87]. - The Company received liquidated damages of RMB 14,400,000 from Yan Hua Phoenix through court enforcement procedures due to a breach of the Yan Hua IOT Agreement[119]. - The Company filed a new litigation in June 2025 seeking termination of the Yan Hua IOT Agreement and compensation for breach of contract[123]. - The Company has a history of litigation with Yan Hua parties since 2019 regarding the Yan Hua IOT Agreement, with multiple court rulings in favor of the Company[121]. - The Company is actively pursuing legal actions to enforce compliance with the Yan Hua IOT Agreement and recover losses incurred[123]. Corporate Governance - The Company has complied with the CG Code during the reporting period, except for the roles of chairman and CEO being held by the same individual since June 19, 2025[94]. - The Company will review its corporate governance structure and practices periodically[96]. - The Board has reviewed the efficiency of the Group's risk management and internal control systems, covering financial, operational, compliance, and risk management aspects[108]. - The Board has overall responsibility for maintaining effective risk management and internal control systems to ensure compliance with laws and regulations[107]. - The Company has made appropriate disclosures regarding its financial performance and compliance with relevant regulations[105]. Shareholder Information - As of June 30, 2025, China Resources Company Limited holds 474,319,516 shares, representing 36.58% of the total issued shares[140]. - FIL Limited, Pandanus Associates Inc., and Pandanus Partners L.P. each hold 95,272,000 shares, accounting for 7.35% of the total issued shares[140]. - The total number of issued shares of the Company as of June 30, 2025, is 1,296,676,516[147]. - The Company maintained a sufficient public float as required under the Listing Rules throughout the reporting period[144]. - The Company did not have any treasury shares as of June 30, 2025[145]. Financial Reporting - The interim financial report for the six months ended June 30, 2025, is unaudited but has been reviewed by KPMG, ensuring compliance with relevant accounting standards[102]. - The Audit Committee has confirmed that the unaudited consolidated interim results were prepared in compliance with accounting standards and applicable legal requirements[101]. - The review of the interim financial report did not reveal any material discrepancies[153]. - The Company’s financial position and performance are presented in the interim financial report for the six-month period ended June 30, 2025[148]. - Revenue for the six months ended June 30, 2025, was RMB 4,524,803, a decrease of 9.1% compared to RMB 4,976,334 in the same period of 2024[157]. - Gross profit for the same period was RMB 712,527, down 31.2% from RMB 1,036,348 in 2024[157]. - Profit before tax decreased to RMB 508,123, a decline of 18.9% from RMB 627,328 in the previous year[157]. - Net profit attributable to owners of the company was RMB 339,521, down 21.7% from RMB 433,949 in 2024[157]. - Earnings per share (basic and diluted) for the period was RMB 0.27, compared to RMB 0.34 in the same period last year[157].

Financial Performance - The company's revenue for the six months ended June 30, 2025, was approximately HKD 82.4 million, representing a 17.2% increase compared to HKD 70.3 million in the same period of 2024[12]. - The gross profit for the same period was HKD 34.8 million, up 10.2% from HKD 31.5 million year-on-year[8]. - The loss attributable to owners from continuing operations was approximately HKD 9.4 million, an increase of 4.0% compared to HKD 9.1 million in the previous year[12]. - The gross profit margin for the company was 42.2%, down from 44.9% in the previous year[8]. - The company's revenue from the "in-situ thermal regeneration" projects decreased by 11.8% to HKD 51,578,000 for the six months ended June 30, 2025, despite an increase in service area[28]. - The gross profit margin for the "in-situ thermal regeneration" projects fell from 45.5% to 39.4%, primarily due to projects being conducted in lower-priced regions[29]. - The company reported a loss from continuing operations of HKD 9,355,000, compared to a loss of HKD 9,971,000 in the same period last year, indicating a 6.2% improvement[78]. - The company reported a net loss attributable to shareholders of HKD 9,414,000 for the six months ended June 30, 2025, compared to a loss of HKD 9,051,000 in 2024[102]. Revenue Segmentation - The asphalt pavement maintenance service segment recorded revenue of approximately HKD 51.6 million, a decrease of 11.8% compared to the same period in 2024, with a gross margin decline from 45.5% to 39.4%[15]. - The asphalt pavement maintenance equipment segment achieved revenue of HKD 30.8 million, a significant increase of 161.3% due to successful sales of a modular series of equipment[17]. - Revenue from maintenance services was HKD 51,578,000, while equipment sales contributed HKD 30,808,000, indicating a significant reliance on maintenance services for overall revenue[88]. - The mainland China market accounted for HKD 80,767,000 of total revenue, highlighting the importance of this region for the company's operations[88]. Research and Development - The company holds a total of 256 registered patents, including 37 invention patents, and has 18 pending patent applications[19]. - The company continues to focus on technological innovation to maintain its leading position in the asphalt pavement maintenance industry[18]. - R&D costs rose from HKD 4.0 million to HKD 7.3 million, an increase of approximately 82.5%, primarily due to costs associated with enhancing existing products[36]. - Research and development expenses increased to HKD 7,287,000, a rise of 81.5% from HKD 4,020,000 in the previous year[77]. Market Outlook - The Chinese road maintenance market is expected to exceed RMB 500 billion in the next five years, with preventive maintenance accounting for over 40%[11]. - The company anticipates that the Chinese government's investment in road maintenance will exceed RMB 100 billion, indicating a high growth rate in the sector[21]. - The company is focusing on increasing market penetration in cities with limited use of "in-situ thermal regeneration" technology[24]. Operational Efficiency - Administrative expenses from continuing operations increased from HKD 29.1 million to HKD 31.3 million, a rise of approximately 7.5% due to an increase in employee numbers and travel expenses[35]. - The group reported a segment loss of HKD 2,382,000 for its ongoing operations, with maintenance services showing a profit of HKD 4,891,000 while equipment sales incurred a loss of HKD 7,035,000[93]. - The company continues to monitor its operational segments, which include maintenance services, equipment sales, and property development, to optimize resource allocation and performance evaluation[90]. Cash Flow and Financial Position - Cash and bank balances decreased from HKD 293.8 million to HKD 241.6 million, a decline of approximately 17.7% due to cash flow used in operating activities and repayment of amounts due to a non-controlling shareholder[43]. - The net cash position decreased significantly to HKD 122,587,000 from HKD 279,258,000 at the end of 2024[79]. - The net cash used in operating activities for the six months ended June 30, 2025, was HKD 37,198,000, a significant decline from the net cash generated of HKD 5,850,000 in the same period of 2024[83]. - The company’s investment activities resulted in a net cash outflow of HKD 101,582,000 for the six months ended June 30, 2025, compared to an outflow of HKD 44,137,000 in the previous year[84]. Shareholder Information - The company’s major shareholders include Mr. Shi, holding approximately 50.30% of the issued share capital[58]. - Major shareholders include Yingda Technology holding 529,688,260 shares, representing approximately 49.09% of the issued share capital[60]. - Bank of Communications Trustee holds 101,536,200 shares, accounting for 9.41% of the issued share capital, having increased from 97,236,200 shares[60]. - The total number of reward shares available for further awards under the share award plan is 153,423,000 shares, which is 14.22% of the issued share capital as of June 30, 2025[66]. Corporate Governance - The board of directors emphasizes high corporate governance standards to protect shareholder interests and enhance corporate value[69]. - The company has established an internal control system to ensure effective decision-making and execution[69]. - The board includes three independent non-executive directors to provide diverse perspectives and independent opinions[69].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 （於百慕達註冊成立的有限公司） （股份代號：2689） 截至二零二五年六月三十日止年度 全年業績公佈 財務摘要 – 1 – • 本集團的銷量增加9.6%至約21.5百萬噸。 • 收入增加約6.3%至人民幣63,240.5百萬元。 • 毛利潤增加約26.9%至人民幣7,245.1百萬元。 • 淨利潤增加約177.3%至人民幣2,201.7百萬元。 • 本公司權益持有人應佔盈利增加約135.4%至人民幣1,767.1百萬元。 • 每股基本盈利增加約137.5%至人民幣0.38元。 財務業績 玖龍紙業（控股）有限公司（「本公司」）董事會（「董事會」）欣然公佈，本公司及其附屬公司 （「本集團」或「玖龍紙業」）截至二零二五年六月三十日止年度（「二零二五財政年度」）之綜 合業績，連同上一財政年度（「二零二四財政年度」）之比較數字如下。 綜合損益表 | | | | | 截至六月三十日止年度 | | | --- | - ...

Financial Performance - The company achieved a revenue of HKD 10.35 billion in the first half of 2025, representing a year-on-year increase of 175%[5] - Gross profit reached HKD 1.77 billion, up 63% year-on-year, with a gross margin of 17%, down approximately 12 percentage points compared to the same period last year[5] - The company reported a loss attributable to equity shareholders of HKD 2.62 billion, which, when excluding certain impacts, adjusted to a loss of HKD 490 million[23] - The company reported a mid-term loss of HKD 2,618,042,000 for the six months ended June 30, 2025, compared to a loss of HKD 1,101,144,000 for the same period in 2024, indicating a significant increase in losses[67] - Total comprehensive income for the six months ended June 30, 2025, was HKD (1,786,071,000), down from HKD (1,622,390,000) in 2024, reflecting a decline in overall financial performance[69] - The company reported a net loss before tax of HKD 1,906,874 for the six months ended June 30, 2025, compared to a loss of HKD 945,851 in 2024, reflecting a deterioration in financial performance[113] Revenue Sources - The real estate segment recorded contracted sales of approximately RMB 6.8 billion (about HKD 7.4 billion), a 10% increase year-on-year, despite a 5.5% decline in national new home sales[6] - The company’s property management revenue was approximately HKD 1.59 billion, an 8% increase year-on-year, with a total operational area expanding by 3.11 million square meters[8] - Hotel operations generated revenue of approximately HKD 210 million, a 3% increase year-on-year, with the company managing or operating a total of 8 hotels[9] - The advanced manufacturing segment saw revenue and net profit increase by 27% and 106% respectively year-on-year[10] - Revenue from property sales amounted to HKD 7,463,987 for the six months ended June 30, 2025, compared to HKD 1,017,626 in 2024, indicating a growth of about 634%[112] Asset Management and Investments - The company currently holds over 1.7 million square meters of quality properties, with flagship projects like Bay New Town Water Street and Tai Ran New Era expected to contribute to revenue and profit in the next three years[19] - The company plans to develop a real estate fund management business to optimize asset allocation and investment efficiency, enhancing capital recycling efficiency[20] - The group’s investment properties had a total area of approximately 1.734 million square meters, with a fair value of about HKD 33.5 billion as of June 30, 2025[39] - The company recognized property sales of approximately 292,489 square meters, a significant increase of about 439% year-on-year, generating sales revenue of approximately RMB 6.88 billion (equivalent to about HKD 7.46 billion)[24] Debt and Financial Management - The company successfully restructured HKD 4 billion in syndicated loans, reducing HKD 700 million in Hong Kong dollar liabilities[11] - The company maintained an asset-liability ratio of 68.1% after excluding advance receipts[11] - The group reported a net debt ratio of 73.0% as of June 30, 2025, compared to 66.3% at the end of 2024[49] - The group has sufficient financial resources to meet its debt obligations as they come due[94] - The average effective interest rate for bank and other borrowings is 3.58% for the six months ended June 30, 2025, down from 3.98% for the same period in 2024[151] Operational Strategies - The company will focus on "stabilizing performance" in the second half of the year, aiming to complete all tasks and stabilize core performance amidst intensified market competition[13] - The company plans to accelerate real estate sales and optimize inventory structure through targeted marketing strategies, aiming for a successful launch of five new projects[13] - The company aims to reduce the proportion of development business and expand real estate management scale, enhancing operational service capabilities over the next five years[18] - The company is focusing on optimizing organizational structure to support its transformation strategy and enhance operational efficiency[22] Market and Competitive Environment - The group operates primarily in China and is exposed to significant risks related to political, economic, and legal environments, as well as market competition[87] - The group faces various financial risks, including market risk (currency, interest rate, and price risks), credit risk, and liquidity risk[89] Corporate Governance and Compliance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange rules, with a temporary deviation regarding the separation of the roles of Chairman and CEO[187] - The company has confirmed compliance with the required standards of the code of conduct for securities transactions by directors during the period from January 1, 2025, to June 30, 2025[188] Future Outlook - The company will enhance property management by providing high-quality services tailored to different customer types, aiming to improve rental returns and operational efficiency[19] - The company is committed to building a technology industry investment service capability, focusing on creating specialized technology-themed parks and enhancing operational efficiency through digitalization[21] - The company will actively promote strategic resource landing and urban renewal projects to expand market share and ensure orderly release of existing resources[15]

Financial Performance - Revenue for the six months ended June 30, 2025, was RMB 4,561,692 thousand, a significant increase from RMB 518,038 thousand in the same period of 2024, representing a growth of approximately 782%[4] - Gross profit for the same period was RMB 93,478 thousand, down from RMB 103,552 thousand in 2024, indicating a decrease of about 9.9%[4] - Net profit for the period was RMB 1,654,217 thousand, compared to RMB 1,465,637 thousand in 2024, reflecting an increase of approximately 12.9%[4] - Basic and diluted earnings per share increased to RMB 0.33723 from RMB 0.29201, marking a growth of about 15.5%[4] - Total comprehensive income for the period was RMB 3,243,017 thousand, up from RMB 1,196,013 thousand in 2024, representing a growth of approximately 171.5%[6] - Total revenue for the period was RMB 561,692 thousand, representing a 8.4% increase compared to RMB 518,038 thousand in the same period of 2024[19] - The pre-tax profit before income tax expenses for the same period was RMB 1,906,261 thousand, reflecting a significant performance in the financial services segment[22] - Unreviewed profit before tax decreased by 35.1% from RMB 2,937,800,000 in the first half of 2024 to RMB 1,906,300,000 in the first half of 2025[89] Cash Flow and Liquidity - Cash and cash equivalents decreased to RMB 5,857,011 thousand from RMB 10,539,550 thousand, a decline of about 44.4%[7] - For the six months ended June 30, 2025, the net cash used in operating activities was RMB (257,757) thousand, a significant improvement from RMB (675,034) thousand in the same period of 2024[12] - The net cash generated from investing activities was RMB 527,525 thousand, compared to RMB 5,433,600 thousand in the previous year, indicating a decrease in investment inflows[12] - The net cash used in financing activities was RMB (4,952,307) thousand, down from RMB (8,258,244) thousand in 2024, reflecting a reduction in financing outflows[12] - As of June 30, 2025, cash and cash equivalents decreased to RMB 5,857,011 thousand from RMB 27,346,117 thousand at the beginning of the year[12] Assets and Liabilities - Total assets less current liabilities amounted to RMB 25,770,919 thousand, down from RMB 27,270,066 thousand in 2024, indicating a decrease of approximately 5.5%[8] - The total assets as of June 30, 2025, amounted to RMB 27,406,376 thousand, with manufacturing and sales assets accounting for RMB 11,910,293 thousand[24] - The total liabilities for the same date were RMB 1,804,155 thousand, with manufacturing and sales liabilities at RMB 1,595,858 thousand[24] - The company’s equity attributable to shareholders decreased to RMB 24,612,505 thousand from RMB 26,060,978 thousand, reflecting a decline of about 5.5%[8] - The total current liabilities as of June 30, 2025, were RMB 448,513,000, compared to RMB 408,187,000 as of December 31, 2024, indicating an increase of about 9.8%[59] Investments and Joint Ventures - The Group invested RMB 240,000,000 in Shenyang Hydrogen Energy Technology Co., Ltd., acquiring a 48% stake[36] - The company entered into a joint venture agreement to acquire 50% equity in Yuxin Intelligent Technology (Shenyang) Co., Ltd. for a cash consideration of RMB 700 million[40] - The company reported revenue from the joint venture of RMB 9,883,000 for the six months ended June 30, 2025, with a loss of RMB 23,166,000 during the same period[42] - The joint venture Yuxin, established with TCL Ningbo, focuses on developing and manufacturing smart cockpit and display components, with the company holding a 50% stake valued at RMB 688.4 million as of June 30, 2025[105] Shareholder Information - The major shareholder of the company is Shenyang Automotive Group Co., Ltd., holding a 29.99% equity interest[13] - Major shareholders include Shenyang San Shi Automotive Industry Development Co., Ltd., holding 1,512,875,802 shares, representing 29.99%[123] - First Beijing Investment Limited holds 253,116,000 shares as a beneficial owner[126] - The company has issued a total of 5,045,269,388 shares[125] Employee and Operational Costs - Employee costs, including directors' remuneration, totaled RMB 145,550 thousand for the six months ended June 30, 2025, compared to RMB 116,157 thousand in the previous year[28] - The employee count increased from 1,400 to approximately 1,890, with total employee costs for the first half of 2025 amounting to RMB 145.6 million, up from RMB 116.2 million in the same period last year[112] Market and Sales Performance - Total domestic sales of BMW vehicles by Brilliance BMW fell by 16.7% to 260,455 units in the first half of 2025 from 312,730 units in the same period of 2024[87] - The Chinese automotive market saw a total sales increase of 11.4% to 15.653 million vehicles in the first half of 2025, with NEV sales rising by 40.3%[90] - The company is preparing to start production of the "Neue Klasse" model in 2026, with over 300 test vehicles undergoing rigorous certification across more than 400 cities in China[91] Compliance and Governance - The company is committed to maintaining compliance with the revised Hong Kong Financial Reporting Standards, which are expected to have no significant impact on its financial performance[16] - The company has complied with all provisions of the Corporate Governance Code, except for the separation of roles between the Chairman and CEO, which is currently held by Mr. Zhang Yue[134]

[Corporate Information](index=3&type=section&id=Corporate%20Information) [Board of Directors](index=3&type=section&id=Board%20of%20Directors) The company's Board of Directors comprises executive and independent non-executive directors, with Mr. Li Xiongwei serving as Chairman and Chief Executive Officer, supported by audit, remuneration, nomination, and finance committees - Mr. Li Xiongwei serves as the **Chairman and Chief Executive Officer** of the Board[4](index=4&type=chunk) - The company has established an audit committee, remuneration committee, nomination committee, and finance committee to ensure a robust corporate governance structure[4](index=4&type=chunk)[5](index=5&type=chunk) [Company Details](index=3&type=section&id=Company%20Details) The company is registered in Bermuda, with its head office and principal place of business in Hong Kong, detailing its share registrar, auditor, principal bankers, stock code, and official website - The company's registered office is in Bermuda, with its head office and principal place of business located in Shun Tak Centre, Connaught Road Central, Hong Kong[7](index=7&type=chunk) - The Hong Kong share registrar is Tricor Investor Services Limited, and the auditor is National Auditing Company Limited[7](index=7&type=chunk)[8](index=8&type=chunk) - Principal bankers include DBS Bank (Hong Kong) Limited and Hang Seng Bank Limited, with stock code **764**[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) For the six months ended June 30, 2025, the company reported a slight revenue decrease of 0.4%, but significantly narrowed operating and pre-tax losses, with a 65% reduction in loss for the period, primarily due to the absence of goodwill impairment and a shift from loss to gain in fair value changes of financial assets Key Profit or Loss Data for H1 2025 | Metric | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 107,702 | 108,156 | -0.4% | | Gross Profit | 59,601 | 57,940 | +2.9% | | Investment and Other Income | 10,526 | 9,090 | +15.8% | | Other Gains and Losses | (19,236) | (87,599) | +78.1% (loss narrowed) | | Operating Loss | (3,548) | (82,862) | +95.7% (loss narrowed) | | Finance Costs | (37,639) | (44,036) | -14.5% | | Loss Before Tax | (41,187) | (126,898) | +67.5% (loss narrowed) | | Income Tax Expense | (4,179) | (1,085) | +285.2% | | Loss for the Period | (45,366) | (127,983) | +64.6% (loss narrowed) | | Basic Loss Per Share (HK cents) | (12.28) | (34.63) | +64.6% (loss narrowed) | - Loss for the period significantly decreased by **65%**, primarily due to the absence of a **HK$45,591,000** goodwill impairment loss recognized in H1 2024, and a shift in fair value changes of financial assets from a **HK$19,418,000** loss to a **HK$7,828,000** gain[297](index=297&type=chunk) - Regarding other comprehensive income, exchange differences arising from the translation of overseas operations turned from a **HK$9,182,000** loss in the prior period to a **HK$17,057,000** gain[13](index=13&type=chunk) [Condensed Consolidated Statement of Financial Position](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets slightly increased, but total equity decreased; net current liabilities improved but remain high, indicating ongoing liquidity challenges Key Financial Position Data for H1 2025 | Metric | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 2,601,962 | 2,599,323 | +0.1% | | Non-current Assets | 2,105,492 | 2,133,143 | -1.3% | | Current Assets | 482,735 | 452,653 | +6.6% | | Assets Held for Sale | 13,735 | 13,527 | +1.5% | | Total Equity | 1,027,472 | 1,052,646 | -2.5% | | Total Liabilities | 1,574,490 | 1,546,677 | +1.8% | | Net Current Liabilities | (549,160) | (563,632) | +2.6% (loss narrowed) | - Equity attributable to owners of the company decreased from **HK$1,058,200,000** as of December 31, 2024, to **HK$1,033,111,000** as of June 30, 2025, primarily due to the loss for the period, partially offset by exchange gains from the translation of overseas operations[77](index=77&type=chunk)[316](index=316&type=chunk) - As of June 30, 2025, the Group's net current liabilities were **HK$549,160,000**, with a current ratio of **0.47**, an improvement from **0.45** as of December 31, 2024[81](index=81&type=chunk)[327](index=327&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, the company's total equity decreased, primarily impacted by the loss for the period, but partially offset by exchange gains from overseas operations and the recognition of the equity component of convertible bonds H1 2025 Equity Changes | Equity Item | January 1, 2025 (HK$ Thousand) | Changes for the Period (HK$ Thousand) | June 30, 2025 (HK$ Thousand) | | :--- | :--- | :--- | :--- | | Share Capital | 38,196 | 0 | 38,196 | | Shares Held for Share Award Scheme | (24,455) | 0 | (24,455) | | Share Premium | 1,807,051 | 0 | 1,807,051 | | Total Reserves | 1,044,459 | (25,089) | 1,019,370 | | Subtotal Equity Attributable to Owners of the Company | 1,058,200 | (25,089) | 1,033,111 | | Non-controlling Interests | (5,554) | (85) | (5,639) | | Total Equity | 1,052,646 | (25,174) | 1,027,472 | - The loss for the period of **HK$45,366,000** led to an increase in accumulated losses[18](index=18&type=chunk) - Exchange differences arising from the translation of overseas operations resulted in a **HK$17,142,000** gain, partially offsetting the loss[18](index=18&type=chunk) - Recognition of equity-settled share-based payments of **HK$1,225,000** and the equity component of convertible bonds of **HK$1,910,000** occurred[18](index=18&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operating activities significantly decreased, net cash from investing activities also declined, but net cash used in financing activities substantially reduced, leading to a slower net increase in cash and cash equivalents compared to the prior period Key Cash Flow Data for H1 2025 | Cash Flow Type | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash From Operating Activities | 18,982 | 80,992 | -76.6% | | Net Cash From Investing Activities | 6,008 | 15,027 | -60.0% | | Net Cash Used In Financing Activities | (14,772) | (59,857) | +75.3% (reduced usage) | | Net Increase in Cash and Cash Equivalents | 10,218 | 36,162 | -71.8% | | Cash and Cash Equivalents at End of Period | 41,070 | 54,052 | -24.0% | - Net cash from operating activities significantly decreased from **HK$80,992,000** in the prior period to **HK$18,982,000**[20](index=20&type=chunk) - Net cash used in financing activities significantly reduced, primarily due to proceeds from convertible bonds of **HK$13,000,000**, and reduced interest paid and repayment of amounts due to directors and associates[20](index=20&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [1. BASIS OF PREPARATION](index=11&type=section&id=1.%20BASIS%20OF%20PREPARATION) The condensed consolidated financial statements are prepared in accordance with HKAS 34 and should be read in conjunction with the 2024 audited consolidated financial statements; the company faces ongoing concern challenges with current liabilities exceeding current assets, but directors have implemented measures to ensure sufficient working capital - For the six months ended June 30, 2025, the Group incurred a loss attributable to owners of the company of **HK$45,366,000**, with current liabilities exceeding current assets by **HK$549,160,000**[23](index=23&type=chunk)[25](index=25&type=chunk) - Directors have implemented several measures to improve the financial position, including actively recovering loans receivable, increasing occupancy rates of Beijing residential serviced apartments, negotiating renewal and extension of existing borrowings, considering realization of financial assets at fair value through profit or loss, and implementing aggressive cost-saving measures[26](index=26&type=chunk)[27](index=27&type=chunk) - The directors believe that, considering these measures, the Group will have sufficient working capital to meet its operational and financial obligations for the next twelve months, thus preparing the financial statements on a going concern basis is appropriate[28](index=28&type=chunk)[30](index=30&type=chunk) [2. PRINCIPAL ACCOUNTING POLICIES](index=14&type=section&id=2.%20PRINCIPAL%20ACCOUNTING%20POLICIES) The condensed consolidated financial statements are primarily prepared on a historical cost basis, except for investment properties and certain financial instruments measured at fair value; new HKFRS amendments applied this period had no significant impact on financial position or performance - The financial statements are prepared on a historical cost basis, with investment properties and certain financial instruments measured at fair value[31](index=31&type=chunk)[34](index=34&type=chunk) - The Group first applied HKAS 21 (Amendments) "Lack of Exchangeability" in the current period, but it had no significant impact on the Group's financial position or performance[33](index=33&type=chunk)[35](index=35&type=chunk) [3. OPERATING SEGMENTS](index=15&type=section&id=3.%20OPERATING%20SEGMENTS) The Group's business is divided into five segments: property investment, sales of financial assets, money lending, sales of jewelry products, and golf club operations; for the six months ended June 30, 2025, golf club operations contributed the most revenue, property investment incurred the largest loss, and sales of financial assets turned from loss to gain - The Group has five operating segments: property investment, sales of financial assets, money lending, sales of jewelry products, and golf club operations[36](index=36&type=chunk)[38](index=38&type=chunk) H1 2025 Segment Revenue and (Loss)/Profit | Segment | Revenue (HK$ Thousand) | (Loss)/Profit (HK$ Thousand) | | :--- | :--- | :--- | | Property Investment | 2,815 | (46,610) | | Sales of Financial Assets | (574) | 7,214 | | Money Lending | 6,774 | 8,466 | | Sales of Jewelry Products | 31,255 | 408 | | Golf Club Operations | 67,432 | 28,752 | | **Consolidated Total** | **107,702** | **(1,770)** | - The Group primarily operates in Hong Kong and Mainland China, with revenue from Mainland China totaling **HK$69,287,000** and non-current assets of **HK$1,632,740,000** in H1 2025[62](index=62&type=chunk)[63](index=63&type=chunk) [4. REVENUE](index=24&type=section&id=4.%20REVENUE) For the six months ended June 30, 2025, total revenue was HK$107,702,000, a slight decrease from the prior period, with golf club operations being the primary revenue source and sales of financial assets recording a net loss H1 2025 Revenue Breakdown | Revenue Source | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Sales of Jewelry Products | 31,255 | 31,796 | | Golf Club Operations (club activities, F&B, membership fees) | 58,404 | 55,667 | | Property Investment (property management income) | 662 | 729 | | Sales of Financial Assets (net) | (574) | (4,621) | | Golf Club Operations (rental income) | 9,028 | 8,946 | | Money Lending (loan interest income) | 6,774 | 11,133 | | Property Investment (rental income) | 2,153 | 4,506 | | **Total Revenue** | **107,702** | **108,156** | - Revenue from sales of financial assets is recognized on a net basis, recording a net loss of **HK$574,000** in H1 2025, which is a narrower loss compared to **HK$4,621,000** in the prior period[71](index=71&type=chunk)[72](index=72&type=chunk) [5. INVESTMENT AND OTHER INCOME](index=25&type=section&id=5.%20INVESTMENT%20AND%20OTHER%20INCOME) For the six months ended June 30, 2025, total investment and other income amounted to HK$10,526,000, a 15.8% increase from the prior period, primarily driven by estimated interest income from finance lease receivables H1 2025 Investment and Other Income Breakdown | Income Source | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Dividend Income | 196 | 228 | | Estimated Interest Income from Finance Lease Receivables | 9,938 | 8,540 | | Interest Income from Bank Deposits | 107 | 105 | | Miscellaneous Income | 285 | 217 | | **Total** | **10,526** | **9,090** | - Estimated interest income from finance lease receivables is the main component of investment and other income, increasing from **HK$8,540,000** in the prior period to **HK$9,938,000**[74](index=74&type=chunk) [6. OTHER GAINS AND LOSSES](index=26&type=section&id=6.%20OTHER%20GAINS%20AND%20LOSSES) For the six months ended June 30, 2025, net other gains and losses resulted in a loss of HK$19,236,000, a significant narrowing from the HK$87,599,000 loss in the prior period, mainly due to the absence of goodwill impairment and a shift from loss to gain in fair value changes of financial assets H1 2025 Other Gains and Losses Breakdown | Item | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Goodwill Impairment Loss | – | (45,591) | | Gains/(Losses) from Fair Value Changes of Financial Assets at FVTPL | 7,828 | (19,418) | | Loss from Fair Value Changes of Investment Properties | (27,058) | (22,444) | | Loss on Disposal of Niche | – | (146) | | Write-off of Property, Plant and Equipment | (6) | – | | **Total** | **(19,236)** | **(87,599)** | - No goodwill impairment loss was recognized in H1 2025, compared to **HK$45,591,000** in the prior period[76](index=76&type=chunk) - Fair value changes of financial assets at fair value through profit or loss shifted from a **HK$19,418,000** loss in H1 2024 to a **HK$7,828,000** gain in H1 2025[76](index=76&type=chunk) - Loss from fair value changes of investment properties increased from **HK$22,444,000** in H1 2024 to **HK$27,058,000**[76](index=76&type=chunk) [7. (REVERSAL OF ALLOWANCE)/ALLOWANCE FOR EXPECTED CREDIT LOSSES ON FINANCIAL ASSETS](index=26&type=section&id=7.%20(REVERSAL%20OF%20ALLOWANCE)%2FALLOWANCE%20FOR%20EXPECTED%20CREDIT%20LOSSES%20ON%20FINANCIAL%20ASSETS) For the six months ended June 30, 2025, the Group recorded a reversal of allowance for expected credit losses on financial assets of HK$1,702,000, primarily from loans receivable, contrasting with an allowance of HK$1,127,000 in the prior period H1 2025 Allowance for Expected Credit Losses on Financial Assets | Item | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | | :--- | :--- | :--- | | (Reversal of allowance)/Allowance for expected credit losses on loans receivable | (1,702) | (993) | | Allowance for expected credit losses on trade receivables | – | 2,120 | | **Total** | **(1,702)** | **1,127** | - Reversal of allowance for expected credit losses on loans receivable was **HK$1,702,000**, compared to **HK$993,000** in the prior period[78](index=78&type=chunk) - No allowance for expected credit losses on trade receivables was recognized in the current period, compared to **HK$2,120,000** in the prior period[78](index=78&type=chunk) [8. FINANCE COSTS](index=27&type=section&id=8.%20FINANCE%20COSTS) For the six months ended June 30, 2025, total finance costs amounted to HK$37,639,000, a 14.5% decrease from the prior period, mainly due to reduced estimated interest on guaranteed secured notes H1 2025 Finance Costs Breakdown | Cost Item | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Interest on amounts due to an associate | 270 | 330 | | Interest on amounts due to directors and related parties | 2,971 | 2,457 | | Interest on bank borrowings | 3,811 | 3,373 | | Interest on lease liabilities | 6,744 | 6,920 | | Interest on other borrowings | 14,915 | 10,984 | | Interest on convertible bonds | 396 | – | | Other interest | 6 | 6 | | Estimated interest on guaranteed secured notes | 12,780 | 24,260 | | **Total (before capitalized interest)** | **41,893** | **48,330** | | Less: Capitalized interest on lease liabilities | (4,254) | (4,294) | | **Total** | **37,639** | **44,036** | - Estimated interest on guaranteed secured notes significantly decreased from **HK$24,260,000** in H1 2024 to **HK$12,780,000**, which is the primary reason for the reduction in finance costs[80](index=80&type=chunk) - Interest on other borrowings increased from **HK$10,984,000** in H1 2024 to **HK$14,915,000**[80](index=80&type=chunk) [9. INCOME TAX (EXPENSE)/CREDIT](index=28&type=section&id=9.%20INCOME%20TAX%20(EXPENSE)%2FCREDIT) For the six months ended June 30, 2025, income tax expense was HK$4,179,000, a significant increase from the prior period, mainly due to higher PRC Enterprise Income Tax, partially offset by deferred tax credit H1 2025 Income Tax Expense Breakdown | Tax Type | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Hong Kong Profits Tax (current tax) | – | – | | PRC Enterprise Income Tax (current tax) | (6,159) | (3,126) | | Deferred Tax Credit | 1,980 | 2,041 | | **Total** | **(4,179)** | **(1,085)** | - The tax rate for PRC subsidiaries is **25%**, while Hong Kong Profits Tax rates are **8.25%** (for the first HK$2,000,000 of assessable profits) and **16.5%** (for assessable profits exceeding HK$2,000,000)[83](index=83&type=chunk)[84](index=84&type=chunk) [10. LOSS FOR THE PERIOD](index=29&type=section&id=10.%20LOSS%20FOR%20THE%20PERIOD) For the six months ended June 30, 2025, the loss for the period was HK$45,366,000, primarily influenced by factors such as amortization of intangible assets, cost of inventories, depreciation of property, plant and equipment, depreciation of right-of-use assets, and staff costs H1 2025 Key Items Affecting Loss for the Period | Item | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Amortization of Intangible Assets | 8,359 | 8,512 | | Cost of Inventories Sold | 25,844 | 26,313 | | Depreciation of Property, Plant and Equipment | 12,073 | 13,444 | | Depreciation of Right-of-Use Assets | 3,005 | 3,041 | | Net Exchange (Gain)/Loss | (49) | 38 | | Staff Costs (including directors' emoluments) | 33,009 | 38,868 | - Staff costs (including directors' emoluments) decreased from **HK$38,868,000** in H1 2024 to **HK$33,009,000**, mainly due to a reduction in headcount and cost-saving measures[87](index=87&type=chunk)[351](index=351&type=chunk) [11. INTERIM DIVIDEND](index=29&type=section&id=11.%20INTERIM%20DIVIDEND) For the six months ended June 30, 2025, the company neither paid, declared, nor proposed any interim dividend - No interim dividend was paid, declared, or proposed for the six months ended June 30, 2025 (2024: Nil)[88](index=88&type=chunk)[89](index=89&type=chunk) [12. LOSS PER SHARE](index=30&type=section&id=12.%20LOSS%20PER%20SHARE) For the six months ended June 30, 2025, basic and diluted loss per share was 12.28 HK cents, a significant narrowing from 34.63 HK cents in the prior period, reflecting an improvement in the company's loss position; loss per share calculation has been adjusted for the share consolidation effective June 20, 2025 H1 2025 Loss Per Share Data | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Loss for the Period Attributable to Owners of the Company (HK$ Thousand) | (45,366) | (127,983) | | Weighted Average Number of Ordinary Shares (Thousand Shares) | 369,530 | 369,530 | | Basic Loss Per Share (HK cents) | (12.28) | (34.63) | | Diluted Loss Per Share (HK cents) | (12.28) | (34.63) | - The calculation of diluted loss per share did not assume conversion of convertible bonds and share awards as it would result in a decrease in loss per share[92](index=92&type=chunk) - The calculation of loss per share has been adjusted for the share consolidation effective June 20, 2025, with comparative figures also adjusted accordingly[93](index=93&type=chunk)[98](index=98&type=chunk) [13. MOVEMENTS IN PROPERTY, PLANT AND EQUIPMENT](index=31&type=section&id=13.%20MOVEMENTS%20IN%20PROPERTY,%20PLANT%20AND%20EQUIPMENT) For the six months ended June 30, 2025, the Group's total cost of additions to property, plant and equipment was HK$8,766,000, a significant decrease from the prior period, while disposal of certain items resulted in a write-off of HK$6,000 - Total cost of additions to property, plant and equipment for the period was **HK$8,766,000**, compared to **HK$28,672,000** in H1 2024[94](index=94&type=chunk)[99](index=99&type=chunk) - Disposal of certain property, plant and equipment items resulted in a write-off of **HK$6,000**[94](index=94&type=chunk)[99](index=99&type=chunk) - The long-term lease related to residential serviced apartments on the adjacent plot to Beijing Golf Club has not yet commenced, thus the related property, plant and equipment have not been derecognized[95](index=95&type=chunk)[99](index=99&type=chunk) [14. MOVEMENTS IN RIGHT-OF-USE ASSETS](index=31&type=section&id=14.%20MOVEMENTS%20IN%20RIGHT-OF-USE%20ASSETS) For the six months ended June 30, 2025, the Group did not enter into any new lease agreements; depreciation of right-of-use assets amounted to HK$3,005,000, of which HK$1,477,000 was capitalized into the cost of qualifying assets - No new lease agreements were entered into during the period[96](index=96&type=chunk)[100](index=100&type=chunk) - Depreciation of right-of-use assets was **HK$3,005,000** (2024: **HK$3,041,000**), of which **HK$1,477,000** was capitalized into the cost of qualifying assets[96](index=96&type=chunk)[100](index=100&type=chunk) - The long-term lease related to residential serviced apartments on the main plot has not yet commenced, thus the related right-of-use assets have not been derecognized[97](index=97&type=chunk)[100](index=100&type=chunk) [15. MOVEMENTS IN INVESTMENT PROPERTIES](index=32&type=section&id=15.%20MOVEMENTS%20IN%20INVESTMENT%20PROPERTIES) As of June 30, 2025, the Group's investment properties in Hong Kong and China, valued by independent professional valuers, recognized a loss from fair value changes of HK$27,058,000, compared to a gain of HK$22,444,000 in the prior period - A loss from fair value changes of investment properties of **HK$27,058,000** was recognized, compared to a gain of **HK$22,444,000** in H1 2024[101](index=101&type=chunk)[105](index=105&type=chunk) - The valuation was performed by independent professional valuers, APAC Asset Appraisal and Consulting Limited, using the same techniques as the December 31, 2024 valuation[101](index=101&type=chunk)[105](index=105&type=chunk) [16. MOVEMENTS IN INTANGIBLE ASSETS](index=32&type=section&id=16.%20MOVEMENTS%20IN%20INTANGIBLE%20ASSETS) For the six months ended June 30, 2025, amortization of intangible assets related to the operating rights of the main plot and clubhouse facilities amounted to HK$8,359,000; the long-term lease related to residential serviced apartments has not yet commenced, thus the related operating rights have not been derecognized - Amortization of intangible assets was **HK$8,359,000** (2024: **HK$8,512,000**), recognized in the profit or loss statement[102](index=102&type=chunk)[106](index=106&type=chunk) - The long-term lease related to residential serviced apartments built on the main plot has not yet commenced, thus the related operating rights have not been derecognized[103](index=103&type=chunk)[106](index=106&type=chunk) [17. MOVEMENTS IN GOODWILL](index=32&type=section&id=17.%20MOVEMENTS%20IN%20GOODWILL) For the six months ended June 30, 2025, the company recognized no goodwill impairment loss, whereas in the prior period, a HK$45,591,000 goodwill impairment loss was recognized due to the carrying amount of cash-generating units for property investment and golf club operations exceeding their recoverable amounts - No goodwill impairment loss was recognized in H1 2025[76](index=76&type=chunk) - In H1 2024, a goodwill impairment loss of **HK$45,591,000** was recognized because the carrying amount of the cash-generating units for property investment and golf club operations exceeded their recoverable amounts[104](index=104&type=chunk)[107](index=107&type=chunk) - The impairment loss arose from adjusting key assumptions and input data in the cash flow forecasts for the property investment business on the main plot to reflect prevailing market conditions and management's latest estimates[108](index=108&type=chunk)[110](index=110&type=chunk) [18. INTERESTS IN ASSOCIATES](index=33&type=section&id=18.%20INTERESTS%20IN%20ASSOCIATES) As of June 30, 2025, the Group's interests in associates totaled HK$4,111,000, primarily comprising unlisted shares in China-Hong Kong Capital Limited and Elite Prosperous Investment Limited, with Elite Prosperous' investment fair value change resulting in a HK$713,000 gain H1 2025 Interests in Associates | Associate | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Hong Kong Listed Shares - China Smart Health Holdings Limited | – | – | | Hong Kong Unlisted Shares - China-Hong Kong Capital Limited | 590 | 590 | | Hong Kong Unlisted Shares - Elite Prosperous Investment Limited | 3,521 | 2,809 | | **Total** | **4,111** | **3,399** | - The fair value of the investment in Elite Prosperous increased from **HK$5,731,000** as of December 31, 2024, to **HK$7,186,000** as of June 30, 2025, recognizing a gain of **HK$713,000**[420](index=420&type=chunk) - As of June 30, 2025, the Group held **169,042,824** shares in China Smart Health, of which **163,342,024** shares were pledged as collateral for other borrowings[114](index=114&type=chunk)[116](index=116&type=chunk) [19. FINANCE LEASE RECEIVABLES](index=34&type=section&id=19.%20FINANCE%20LEASE%20RECEIVABLES) As of June 30, 2025, total finance lease receivables amounted to HK$174,631,000, with HK$35,184,000 classified as current assets; all finance leases are denominated in RMB with an implicit interest rate of 13% - Properties built on the main plot leased under long-term leases are classified as finance leases, with payment terms ranging from **5 to 15 years**[115](index=115&type=chunk)[117](index=117&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk) H1 2025 Present Value of Finance Lease Receivables | Term | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Within 1 year | 35,184 | 26,319 | | In the 2nd year | 14,352 | 15,727 | | In the 3rd year | 17,227 | 16,089 | | In the 4th year | 20,535 | 19,262 | | In the 5th year | 24,256 | 22,938 | | After 5 years | 63,077 | 76,275 | | **Total Present Value of Minimum Lease Payments Receivable** | **174,631** | **176,610** | - All finance leases are denominated in RMB, with an implicit interest rate of **13%** (December 31, 2024: **13%**)[121](index=121&type=chunk)[123](index=123&type=chunk) [20. LOANS RECEIVABLES](index=36&type=section&id=20.%20LOANS%20RECEIVABLES) As of June 30, 2025, net loans receivable amounted to HK$174,062,000, a slight increase from December 31, 2024; a reversal of allowance for expected credit losses on loans receivable of HK$1,702,000 was recognized this period; all loans are denominated in HKD with effective annual interest rates ranging from 8% to 20% H1 2025 Loans Receivable Data | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Loans to Customers | 929,868 | 929,868 | | Accrued Interest Receivable | 58,017 | 55,652 | | Accumulated Allowance for Expected Credit Losses | (813,823) | (813,704) | | **Net Loans Receivable** | **174,062** | **171,816** | - All loans are denominated in HKD, with effective annual interest rates ranging from **8% to 20%**[126](index=126&type=chunk)[127](index=127&type=chunk) - A reversal of allowance for expected credit losses on loans receivable of **HK$1,702,000** was recognized in the current period (2024: **HK$993,000**)[128](index=128&type=chunk)[130](index=130&type=chunk) - As of June 30, 2025, four loans are secured by corporate guarantees, three loans are secured by corporate guarantees and a pledge of usage rights for **4,000** niches in Hong Kong, and other loans are secured by share charges[129](index=129&type=chunk)[130](index=130&type=chunk) [21. TRADE RECEIVABLES](index=39&type=section&id=21.%20TRADE%20RECEIVABLES) As of June 30, 2025, net trade receivables amounted to HK$37,919,000, a slight increase from December 31, 2024; no allowance for expected credit losses on trade receivables was recognized this period, compared to HK$2,120,000 in the prior period H1 2025 Trade Receivables Data | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Trade Receivables | 40,809 | 39,646 | | Accumulated Allowance for Expected Credit Losses | (2,890) | (2,890) | | **Net Trade Receivables** | **37,919** | **36,756** | H1 2025 Trade Receivables Ageing Analysis | Ageing | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | 0 – 30 days | 4,871 | 5,036 | | 31 – 60 days | 3,651 | 6,795 | | 61 – 90 days | 7,376 | 6,628 | | 91 – 120 days | 3,758 | 4,103 | | 121 – 180 days | 7,555 | 10,052 | | Over 180 days | 10,708 | 4,142 | | **Total** | **37,919** | **36,756** | - The Group allows credit periods ranging from **0 to 270 days** for customers and closely monitors credit limits[137](index=137&type=chunk)[138](index=138&type=chunk) - No allowance for expected credit losses on trade receivables was recognized in the current period (2024: **HK$2,120,000**)[138](index=138&type=chunk)[139](index=139&type=chunk) [22. MOVEMENTS IN ASSETS CLASSIFIED AS HELD FOR SALE](index=41&type=section&id=22.%20MOVEMENTS%20IN%20ASSETS%20CLASSIFIED%20AS%20HELD%20FOR%20SALE) As of June 30, 2025, a long-term lease related to residential serviced apartments has not yet commenced, and related assets totaling HK$13,735,000 have been reclassified as held for sale; net proceeds from disposal are expected to exceed the net carrying amount, thus no impairment loss was recognized - A long-term lease related to residential serviced apartments has not yet commenced and is expected to commence within **12 months**[143](index=143&type=chunk)[146](index=146&type=chunk) - Related property, plant and equipment, right-of-use assets, and operating rights totaling **HK$13,735,000** (December 31, 2024: **HK$13,527,000**) have been reclassified as held for sale[143](index=143&type=chunk)[146](index=146&type=chunk) - Net proceeds from disposal are expected to exceed the net carrying amount, thus no impairment loss was recognized[144](index=144&type=chunk)[146](index=146&type=chunk) [23. SHARE CAPITAL](index=41&type=section&id=23.%20SHARE%20CAPITAL) As of June 30, 2025, the company's issued share capital was HK$38,196,000, with 381,961,000 ordinary shares; the share capital structure was adjusted by a share consolidation on June 20, 2025, where every ten HK$0.01 par value ordinary shares were consolidated into one HK$0.10 par value ordinary share H1 2025 Share Capital Changes | Item | Number of Shares (Thousand Shares) | Share Capital (HK$ Thousand) | | :--- | :--- | :--- | | As at January 1, 2024, December 31, 2024 and January 1, 2025 (issued and fully paid) | 3,819,606 | 38,196 | | Share Consolidation | (3,437,645) | – | | **As at June 30, 2025 (issued and fully paid)** | **381,961** | **38,196** | - On June 20, 2025, the company consolidated every **ten** ordinary shares of **HK$0.01** par value into **one** ordinary share of **HK$0.10** par value[148](index=148&type=chunk)[329](index=329&type=chunk) - After the share consolidation, the number of issued ordinary shares changed from **3,819,606,486** to **381,960,648**, while the total authorized share capital remained unchanged[148](index=148&type=chunk)[330](index=330&type=chunk) [24. TRADE PAYABLES](index=42&type=section&id=24.%20TRADE%20PAYABLES) As of June 30, 2025, total trade payables amounted to HK$39,368,000, a decrease from December 31, 2024; the majority of these payables have an aging period exceeding 120 days H1 2025 Trade Payables Ageing Analysis | Ageing | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | 0 – 30 days | 1,729 | 1,555 | | 31 – 60 days | 1,036 | 3,084 | | 61 – 90 days | 1,236 | 726 | | 91 – 120 days | 671 | 84 | | Over 120 days | 34,696 | 37,557 | | **Total** | **39,368** | **43,006** | - The average credit period for purchases of goods and services is **120 days**[151](index=151&type=chunk) - The Group has implemented financial risk management policies to ensure all payables are settled within the credit terms[151](index=151&type=chunk) [25. BANK BORROWINGS](index=43&type=section&id=25.%20BANK%20BORROWINGS) As of June 30, 2025, the Group's total bank borrowings amounted to HK$135,236,000, all of which are secured and classified as current liabilities due to containing a repayment on demand clause; these borrowings are primarily collateralized by Hong Kong properties, bank deposits, structured investment products, and life insurance policies H1 2025 Bank Borrowings Maturity Profile | Term | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Within 1 year | 7,747 | 6,208 | | Over 1 year but not exceeding 2 years | 7,778 | 6,588 | | Over 2 years but not exceeding 5 years | 23,334 | 22,301 | | Over 5 years | 96,377 | 102,728 | | **Total** | **135,236** | **137,825** | - All bank borrowings are secured and entirely classified as current liabilities due to containing a repayment on demand clause[153](index=153&type=chunk)[160](index=160&type=chunk) - Principal collateral includes the Group's buildings and investment properties in Hong Kong, bank deposits, structured investment products, shares, and life insurance policies of key management personnel[154](index=154&type=chunk)[155](index=155&type=chunk)[156](index=156&type=chunk)[157](index=157&type=chunk)[158](index=158&type=chunk) - Borrowing interest rates are one-month HIBOR plus **2.5%** per annum or bank's cost of funds plus **1%** per annum[154](index=154&type=chunk)[156](index=156&type=chunk)[158](index=158&type=chunk) [26. OTHER BORROWINGS](index=47&type=section&id=26.%20OTHER%20BORROWINGS) As of June 30, 2025, the Group's total other borrowings amounted to HK$252,201,000, comprising secured margin financing and unsecured borrowings; some borrowings are personally guaranteed by directors, and the maturity dates of certain unsecured borrowings have been extended H1 2025 Other Borrowings Breakdown | Borrowing Type | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Secured Other Borrowings – Securities Margin Financing | 34,652 | 49,388 | | Unsecured Other Borrowings | 217,549 | 203,148 | | **Total** | **252,201** | **252,536** | - Securities margin financing of **HK$34,652,000** bears interest at prime rate plus **3%** per annum, secured by Hong Kong listed equity securities and a personal guarantee from Mr. Li Xiongwei, the Chairman of the Board[163](index=163&type=chunk)[165](index=165&type=chunk) - An unsecured borrowing of **HK$200,000,000** with an interest rate of **10%** per annum, personally guaranteed by Mr. Li Xiongwei, had its maturity date extended from April 1, 2025, to April 1, 2027[168](index=168&type=chunk) - Other unsecured borrowings include a revolving loan facility of **HK$85,000** (interest at prime rate plus **3%** per annum) and cash advances of **HK$2,480,000** (interest at a fixed annual rate of **4%**)[169](index=169&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk) [27. GUARANTEED SECURED NOTES](index=49&type=section&id=27.%20GUARANTEED%20SECURED%20NOTES) As of June 30, 2025, the outstanding principal amount of guaranteed secured notes was HK$193,166,000, bearing interest at 10% per annum with an effective annual interest rate of 14.51%; these notes are secured by a share charge over Eternal Strategy Investment (China) Co., Ltd. and personal guarantees from two executive directors, and were classified as current liabilities due to a breach of certain terms by the Group for failing to pay interest on time H1 2025 Guaranteed Secured Notes Changes | Item | Amount (HK$ Thousand) | | :--- | :--- | | As at January 1, 2025 | 174,267 | | Estimated Interest | 18,899 | | **As at June 30, 2025** | **193,166** | - The notes bear interest at **10%** per annum, with an effective annual interest rate of **14.51%**[175](index=175&type=chunk)[178](index=178&type=chunk)[179](index=179&type=chunk)[180](index=180&type=chunk)[182](index=182&type=chunk) - Collateral includes a share charge over **100%** of the issued share capital of Eternal Strategy Investment (China) Co., Ltd., and personal guarantees from Mr. Li Xiongwei and Mr. Zhang Guowei[175](index=175&type=chunk)[178](index=178&type=chunk)[179](index=179&type=chunk)[182](index=182&type=chunk) - The Group breached certain terms by failing to pay interest on time, resulting in the loan being classified as a current liability; directors are renegotiating with the lender and believe there are sufficient alternative funding sources[181](index=181&type=chunk)[183](index=183&type=chunk) [28. AMOUNTS DUE TO DIRECTORS AND RELATED PARTY](index=52&type=section&id=28.%20AMOUNTS%20DUE%20TO%20DIRECTORS%20AND%20RELATED%20PARTY) As of June 30, 2025, amounts due to directors and related parties totaled HK$69,604,000, primarily comprising cash advances from Mr. Li Xiongwei, Mr. Zhang Guoxun, Mr. Zhang Guowei, and his spouse Ms. Chan Mei Sau, most of which are unsecured and repayable on demand H1 2025 Amounts Due to Directors and Related Parties | Related Party | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Mr. Li Xiongwei | 12,312 | 12,945 | | Mr. Zhang Guoxun | 1,200 | 600 | | Mr. Zhang Guowei | 3,872 | 7,481 | | Ms. Chan Mei Sau (spouse of Mr. Zhang Guowei) | 52,220 | 52,470 | | **Total** | **69,604** | **73,496** | - Cash advances from Mr. Li Xiongwei bear interest at **21.60%** per annum, while cash advances from Mr. Zhang Guoxun are interest-free[186](index=186&type=chunk)[189](index=189&type=chunk) - Cash advances from Mr. Zhang Guowei and his spouse Ms. Chan Mei Sau bear interest at one-month HIBOR plus **1.3%** per annum or prime rate less **2.25%/2.50%** (whichever is lower)[187](index=187&type=chunk)[188](index=188&type=chunk)[189](index=189&type=chunk) [29. AMOUNTS DUE TO ASSOCIATES](index=53&type=section&id=29.%20AMOUNTS%20DUE%20TO%20ASSOCIATES) As of June 30, 2025, amounts due to associates totaled HK$8,523,000, with the majority bearing interest at prime rate plus 3% per annum and maturing on March 21, 2026, while the remainder is interest-free - The outstanding balance of amounts due to an associate is **HK$6,564,000**, bearing interest at prime rate plus **3%** per annum, due on March 21, 2026, and contains a repayment on demand clause[191](index=191&type=chunk)[195](index=195&type=chunk) - Another outstanding balance of amounts due to an associate is **HK$1,959,000**, which is unsecured, interest-free, and repayable on demand[192](index=192&type=chunk)[195](index=195&type=chunk) [30. CONVERTIBLE BONDS](index=53&type=section&id=30.%20CONVERTIBLE%20BONDS) The company issued two tranches of convertible bonds (Convertible Bonds I and II) in December 2024 and April 2025, with principal amounts of HK$4,000,000 and HK$9,000,000 respectively, both bearing interest at 5% per annum; these bonds grant holders the right to convert into ordinary shares and are measured at fair value, with fair value changes recognized in profit or loss - The company issued Convertible Bonds I with a principal amount of **HK$4,000,000** on December 23, 2024, with a conversion price of **HK$0.774** per share and an effective annual interest rate of **11.05%**[193](index=193&type=chunk)[194](index=194&type=chunk)[196](index=196&type=chunk)[197](index=197&type=chunk) - The company issued Convertible Bonds II with a principal amount of **HK$9,000,000** on April 2, 2025, with a conversion price of **HK$0.558** per share and an effective annual interest rate of **16.02%**[198](index=198&type=chunk)[199](index=199&type=chunk)[203](index=203&type=chunk)[204](index=204&type=chunk) - The equity component of convertible bonds is presented in equity as "Convertible bonds equity reserve," while the liability component is measured at fair value, with fair value changes recognized in profit or loss[194](index=194&type=chunk)[197](index=197&type=chunk)[199](index=199&type=chunk)[204](index=204&type=chunk)[205](index=205&type=chunk) - The conversion price is adjustable in cases of share consolidation, subdivision, capitalization, rights issue, or issuance of new shares at a price below market value[200](index=200&type=chunk)[204](index=204&type=chunk) [31. CAPITAL COMMITMENTS](index=55&type=section&id=31.%20CAPITAL%20COMMITMENTS) As of June 30, 2025, the Group had capital commitments of HK$246,284,000 for the development costs of the main plot, which are contracted but not yet provided for H1 2025 Capital Commitments | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Capital Expenditure for Main Plot | 246,284 | 227,201 | - The Group's total commitments for the development costs of the main plot amounted to **HK$246,284,000**, which are contracted but not yet provided for[209](index=209&type=chunk)[343](index=343&type=chunk)[347](index=347&type=chunk) [32. EQUITY-SETTLED SHARE-BASED PAYMENT TRANSACTION](index=56&type=section&id=32.%20EQUITY-SETTLED%20SHARE-BASED%20PAYMENT%20TRANSACTION) The company has a share option scheme and a share award scheme; the 2011 share option scheme expired in 2021, the 2021 share option scheme was terminated in 2024, and a new 2024 share option scheme was adopted in August 2024; the share award scheme was also revised in August 2024, and 3,800,000 share awards were granted in September 2024 - The 2011 Share Option Scheme expired on December 11, 2021, but its provisions remain effective for unexercised share options[213](index=213&type=chunk)[214](index=214&type=chunk) - The 2021 Share Option Scheme was terminated on August 15, 2024, and a new 2024 Share Option Scheme was adopted, but no share options have been granted since its adoption[221](index=221&type=chunk)[222](index=222&type=chunk)[223](index=223&type=chunk)[224](index=224&type=chunk)[226](index=226&type=chunk)[227](index=227&type=chunk) - The Share Award Scheme was adopted on September 16, 2021, and revised on August 15, 2024, to comply with the latest requirements of Chapter 17 of the Listing Rules[225](index=225&type=chunk)[227](index=227&type=chunk) - On September 4, 2024, **3,800,000** share awards were granted to consultant Mr. Wong Chun Hung, with a vesting period from September 4, 2024, to September 4, 2025, a purchase price of zero, and a fair value of **HK$0.65**[232](index=232&type=chunk) - As of June 30, 2025, the total number of share options and awards available for grant under the 2024 Share Option Scheme and Share Award Scheme was **34,396,064**[235](index=235&type=chunk)[236](index=236&type=chunk) [33. MATERIAL RELATED PARTY TRANSACTIONS](index=63&type=section&id=33.%20MATERIAL%20RELATED%20PARTY%20TRANSACTIONS) The Group engaged in several material related party transactions with associates, key management personnel, and directors/major shareholders, including amounts due to/from associates, rental income, interest expenses, and personal guarantees provided by directors; most of these transactions are exempt from the related party transaction requirements of the Listing Rules H1 2025 Transactions with Associates | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Amounts Due from an Associate | 38,437 | 38,437 | | Amounts Due to Associates | (8,523) | (9,385) | | Rental Income Received/Receivable from an Associate | 180 | 796 | | Interest Expense Paid/Payable to an Associate | (270) | (330) | H1 2025 Key Management Personnel Remuneration | Remuneration Type | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Short-term Benefits | 540 | 585 | | Post-employment Benefits | 9 | 24 | | **Total** | **549** | **609** | - Mr. Li Xiongwei and Mr. Zhang Guowei provided several personal guarantees for the Group's borrowings, including a **HK$200,000,000** finance company loan, securities margin financing, and **HK$197,000,000** guaranteed secured notes[251](index=251&type=chunk)[254](index=254&type=chunk)[259](index=259&type=chunk)[263](index=263&type=chunk)[268](index=268&type=chunk) - These related party transactions are fully exempt from the related party transaction requirements under Chapter 14A of the Listing Rules[265](index=265&type=chunk)[267](index=267&type=chunk) [34. FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS](index=69&type=section&id=34.%20FAIR%20VALUE%20MEASUREMENTS%20OF%20FINANCIAL%20INSTRUMENTS) The Group measures the fair value of financial assets on a recurring basis, primarily including financial assets at fair value through profit or loss (such as key management personnel life insurance policies and Hong Kong listed equity securities); valuation employs a three-level fair value hierarchy and is conducted by the finance and accounting department in collaboration with independent valuers - Fair value measurements are categorized into three levels: Level 1 (quoted prices in active markets), Level 2 (observable inputs), and Level 3 (significant unobservable inputs)[275](index=275&type=chunk) H1 2025 Financial Assets Measured at Fair Value | Financial Asset | Fair Value Level | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | :--- | | Key Management Personnel Life Insurance Policies | Level 2 | 10,286 | 10,135 | | Hong Kong Listed Equity Securities | Level 1 | 68,617 | 64,323 | | **Total** | | **78,903** | **74,458** | - The carrying amount of guaranteed secured notes is **HK$193,166,000**, with a fair value of **HK$192,695,000**; its fair value measurement is classified as Level 3, determined using discounted cash flow analysis[285](index=285&type=chunk)[286](index=286&type=chunk)[288](index=288&type=chunk) [35. CONTINGENT LIABILITIES](index=72&type=section&id=35.%20CONTINGENT%20LIABILITIES) The Group faces a civil lawsuit involving its wholly-owned subsidiary, Beijing Beihu Jiuhou Business Hotel Co., Ltd., for outstanding legal fees of RMB31,000,000 related to a 2010 property transaction; Chinese legal counsel believes it is unlikely Beihu Jiuhou will be required to pay, thus no provision has been made - A Beijing law firm filed a civil lawsuit against Beihu Jiuhou, a wholly-owned subsidiary of the Group, seeking outstanding legal fees of **RMB31,000,000** (approximately **HK$33,967,000**) related to a 2010 property transaction[287](index=287&type=chunk)[289](index=289&type=chunk) - Chinese legal counsel advised that it is unlikely Beihu Jiuhou will be required to pay this fee, thus no provision for liability has been made[287](index=287&type=chunk)[289](index=289&type=chunk) [36. EVENTS AFTER THE END OF THE REPORTING PERIOD](index=73&type=section&id=36.%20EVENTS%20AFTER%20THE%20END%20OF%20THE%20REPORTING%20PERIOD) As of the approval date of the condensed consolidated financial statements, the Group had no significant events after the end of the reporting period - The Group had no significant events after the end of the reporting period and up to the date of approval of the condensed consolidated financial statements[290](index=290&type=chunk)[293](index=293&type=chunk) [37. COMPARATIVE FIGURES](index=73&type=section&id=37.%20COMPARATIVE%20FIGURES) Certain comparative figures have been adjusted for the share consolidation effective June 20, 2025, assuming the share consolidation had been effective in prior periods - Certain comparative figures have been adjusted for the share consolidation effective June 20, 2025, as described in Note 12[291](index=291&type=chunk)[294](index=294&type=chunk) [38. APPROVAL OF CONDENSED CONSOLIDATED FINANCIAL STATEMENTS](index=73&type=section&id=38.%20APPROVAL%20OF%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) The condensed consolidated financial statements were approved and authorized for issue by the Board of Directors on August 28, 2025 - The condensed consolidated financial statements were approved and authorized for issue by the Board of Directors on August 28, 2025[292](index=292&type=chunk)[295](index=295&type=chunk) [Management Discussion and Analysis](index=74&type=section&id=Management%20Discussion%20and%20Analysis) [FINANCIAL REVIEW](index=74&type=section&id=FINANCIAL%20REVIEW) The Group's revenue slightly decreased this period, but losses significantly narrowed, primarily due to the absence of goodwill impairment and improved fair value changes of financial assets; liquidity, despite an improvement in net current liabilities, still faces challenges; the Group raised capital through convertible bond issuance and pledged assets - For the six months ended June 30, 2025, the Group's revenue was **HK$107,702,000**, a slight decrease of **0.4%** from the prior period[296](index=296&type=chunk) - Loss attributable to owners of the company was **HK$45,366,000**, a **65%** reduction from the prior period, mainly due to the absence of goodwill impairment loss and a shift from loss to gain in fair value changes of financial assets[297](index=297&type=chunk) - As of June 30, 2025, the Group's net current liabilities were **HK$549,160,000**, with a current ratio of **0.47** and a gearing ratio of **63%**[327](index=327&type=chunk)[332](index=332&type=chunk) - The Group raised approximately **HK$13,000,000** through the issuance of convertible bonds, primarily for general working capital and debt repayment[339](index=339&type=chunk) - As of June 30, 2025, several of the Group's assets were pledged, including Shun Tak properties, shares of Eternal Strategy Investment (China) Co., Ltd., Hong Kong listed equity securities, and key management personnel life insurance policies[342](index=342&type=chunk) [Results of Operations](index=74&type=section&id=Results%20of%20Operations) The Group's revenue slightly decreased this period, but operating loss and loss for the period significantly narrowed; the gross profit margin for sales of jewelry products remained stable, property investment gross profit declined, while golf club operations saw an increase in both gross profit and gross profit margin; other gains and losses significantly improved, and administrative expenses decreased due to cost-saving measures H1 2025 Revenue and Gross Profit Changes by Business Segment | Business | H1 2025 Revenue (HK$ Thousand) | H1 2024 Revenue (HK$ Thousand) | Revenue Change (%) | H1 2025 Gross Profit (HK$ Thousand) | H1 2024 Gross Profit (HK$ Thousand) | Gross Profit Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Money Lending | 6,774 | 11,133 | -39.1% | - | - | - | | Sales of Jewelry Products | 31,255 | 31,796 | -1.7% | 5,412 | 5,483 | -1.3% | | Property Investment | 2,815 | 5,235 | -46.2% | 2,815 | 5,235 | -46.2% | | Golf Club Operations | 67,432 | 64,613 | +4.4% | 45,175 | 40,710 | +11.0% | | Sales of Financial Assets | (574) | (4,621) | +87.6% (loss narrowed) | - | - | - | - Fair value changes of financial assets generated a gain of **HK$7,828,000**, compared to a loss of **HK$19,418,000** in the prior period[304](index=304&type=chunk) - Administrative expenses decreased from **HK$57,876,000** to **HK$54,515,000**, primarily due to effective cost-saving measures[307](index=307&type=chunk)[310](index=310&type=chunk) - Share of results of associates turned from a loss of **HK$842,000** in the prior period to a gain of **HK$713,000**[308](index=308&type=chunk)[310](index=310&type=chunk) - Finance costs decreased by **15%**, mainly due to the elimination of additional finance costs from delayed interest settlement on guaranteed secured notes due in 2025, and a reduction in amounts due to directors and related parties[311](index=311&type=chunk)[315](index=315&type=chunk) [Liquidity and Financial Resources](index=77&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's cash and cash equivalents amounted to HK$41,070,000, with total outstanding borrowings of HK$650,207,000; net current liabilities and the current ratio improved, but the gearing ratio slightly increased; the company's capital structure saw no significant changes this period, and a share consolidation was completed on June 20 - As of June 30, 2025, cash and cash equivalents were **HK$41,070,000** (December 31, 2024: **HK$30,322,000**)[314](index=314&type=chunk)[317](index=317&type=chunk) - Total outstanding borrowings amounted to **HK$650,207,000**, including guaranteed secured notes, bank financing, finance company loans, securities margin financing, and advances from directors/related parties[319](index=319&type=chunk)[320](index=320&type=chunk)[321](index=321&type=chunk)[322](index=322&type=chunk)[324](index=324&type=chunk)[336](index=336&type=chunk) H1 2025 Liquidity Ratios | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gearing Ratio | 63% | 60% | | Net Current Liabilities (HK$ Thousand) | (549,160) | (563,632) | | Current Ratio | 0.47 | 0.45 | - The company completed a share consolidation on June 20, 2025, where every **ten** ordinary shares of **HK$0.01** par value were consolidated into **one** ordinary share of **HK$0.10** par value[329](index=329&type=chunk)[335](index=335&type=chunk) [Use of Proceeds from Fund Raising Activities](index=82&type=section&id=Use%20of%20Proceeds%20from%20Fund%20Raising%20Activities) The company conducted two convertible bond subscription activities in the past 12 months, raising approximately HK$13,000,000, with proceeds used as planned for general working capital and debt repayment, with no unutilized portion as of June 30, 2025 Use of Proceeds from Fund Raising Activities | Announcement Date | Fund Raising Activity | Net Proceeds (Approx.) | Intended Use | Actual Use | | :--- | :--- | :--- | :--- | :--- | | December 23, 2024 and January 7, 2025 | Subscription of Convertible Bonds under General Mandate | HK$4 million | General working capital | Consistent with announced intended use | | April 16, 2025 and April 29, 2025 | Subscription of Convertible Bonds under General Mandate | HK$9 million | (i) Up to HK$2 million for general working capital (staff costs, legal & professional fees); (ii) Up to HK$7 million for repayment of Group debts | Consistent with announced intended use | - As of June 30, 2025, there was no unutilized portion of the proceeds from fund-raising activities[339](index=339&type=chunk) [Material Acquisitions of Subsidiaries, Associates, and Joint Ventures](index=83&type=section&id=Material%20Acquisitions%20of%20Subsidiaries,%20Associates,%20and%20Joint%20Ventures) For the six months ended June 30, 2025, the Group had no material acquisitions of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, the Group had no material acquisitions of subsidiaries, associates, or joint ventures[340](index=340&type=chunk) [Material Disposals of Subsidiaries, Associates, and Joint Ventures](index=83&type=section&id=Material%20Disposals%20of%20Subsidiaries,%20Associates,%20and%20Joint%20Ventures) For the six months ended June 30, 2025, the Group had no material disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, the Group had no material disposals of subsidiaries, associates, or joint ventures[341](index=341&type=chunk) [Pledge of Assets](index=83&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, several of the Group's assets were pledged, including Shun Tak properties, shares of Eternal Strategy Investment (China) Co., Ltd., Hong Kong listed equity securities, bank deposits, and key management personnel life insurance policies, to secure bank financing, guaranteed secured notes, and securities margin financing - Shun Tak properties (carrying amount of **HK$210,500,000**) were pledged to secure bank financing granted to the Group[342](index=342&type=chunk) - **100%** of the issued shares of Eternal Strategy Investment (China) Co., Ltd. (unaudited consolidated net assets of **HK$1,125,074,000**) were pledged to secure guaranteed secured notes due in 2025[342](index=342&type=chunk) - Hong Kong listed equity securities (fair value of **HK$71,680,000**) and key management personnel life insurance policies (**HK$10,286,000**) were pledged to secure securities margin financing and bank financing[342](index=342&type=chunk) [Material Commitments](index=84&type=section&id=Material%20Commitments) As of June 30, 2025, the Group had total commitments of HK$246,284,000 for the development costs of the main plot, which are contracted but not yet provided for - As of June 30, 2025, the Group's total commitments for the development costs of the main plot, which are contracted but not yet provided for, amounted to **HK$246,284,000**[343](index=343&type=chunk)[347](index=347&type=chunk) [Exchange Risk and Hedging](index=84&type=section&id=Exchange%20Risk%20and%20Hedging) The Group's majority of transactions, assets, and liabilities are denominated in HKD and RMB, primarily exposing it to RMB exchange rate risk; the Board closely monitors this risk, but no financial instruments were used for hedging during the period - The Group's majority of transactions, assets, and liabilities are denominated in HKD and RMB, primarily exposing it to RMB exchange rate risk[344](index=344&type=chunk)[348](index=348&type=chunk) - The Board closely monitors exchange rate risk, but the Group did not use financial instruments for hedging purposes for the six months ended June 30, 2025[344](index=344&type=chunk)[348](index=348&type=chunk) [Contingent Liabilities](index=84&type=section&id=Contingent%20liabilities) The Group faces a civil lawsuit involving its wholly-owned subsidiary, Beijing Beihu Jiuhou Business Hotel Co., Ltd., for outstanding legal fees of RMB31,000,000 related to a 2010 property transaction; Chinese legal counsel believes it is unlikely Beihu Jiuhou will be required to pay, thus no provision has been made - A Beijing law firm filed a civil lawsuit against Beihu Jiuhou, a wholly-owned subsidiary of the Group, seeking outstanding legal fees of **RMB31,000,000** (approximately **HK$33,967,000**) related to a 2010 property transaction[345](index=345&type=chunk)[349](index=349&type=chunk) - Chinese legal counsel advised that it is unlikely Beihu Jiuhou will be required to pay this fee, thus no provision for liability has been made[346](index=346&type=chunk)[350](index=350&type=chunk) [Employees and Remuneration Policy](index=85&type=section&id=Employees%20and%20remuneration%20policy) As of June 30, 2025, the Group had 346 employees, with staff costs of HK$33,009,000, a decrease from the prior period, mainly due to reduced headcount and cost-saving measures; employee benefits include basic salaries, retirement benefits, discretionary bonuses, medical plans, share options, and share awards - As of June 30, 2025, the Group had **346** employees (2024: **357** employees)[351](index=351&type=chunk) - Staff costs (including directors' emoluments) amounted to **HK$33,009,000**, a decrease from **HK$38,868,000** in the prior period, mainly due to a reduction in headcount and effective cost-saving measures[351](index=351&type=chunk) - Employee benefits include basic salaries, contributions to retirement benefit schemes, discretionary bonuses, medical plans, share options, and share awards[351](index=351&type=chunk) [OPERATIONS REVIEW](index=85&type=section&id=OPERATIONS%20REVIEW) The Group's various business segments showed mixed performance; sales of financial assets turned from loss to gain, money lending saw decreased interest income but actively pursued overdue loans; sales of jewelry products maintained stable revenue and actively expanded new product lines and overseas markets; property investment revenue declined but segment loss narrowed; golf club operations performed steadily, providing consistent revenue; investment in associates saw an increase in the fair value of Elite Prosperous' investment - The sales of financial assets business recorded a segment gain of **HK$7,214,000**, reversing a loss of **HK$24,109,000** in the prior period, primarily from gains on fair value changes of financial assets[352](index=352&type=chunk)[355](index=355&type=chunk) - Money lending business loan interest income decreased by **39%**, mainly due to certain loans being classified as credit-impaired; the Group is actively negotiating repayment with customers and taking legal action[361](index=361&type=chunk)[362](index=362&type=chunk)[365](index=365&type=chunk)[366](index=366&type=chunk)[370](index=370&type=chunk)[371](index=371&type=chunk)[372](index=372&type=chunk)[373](index=373&type=chunk)[374](index=374&type=chunk)[375](index=375&type=chunk)[376](index=376&type=chunk)[377](index=377&type=chunk)[378](index=378&type=chunk)[379](index=379&type=chunk)[380](index=380&type=chunk)[381](index=381&type=chunk)[385](index=385&type=chunk) - Sales of jewelry products business revenue slightly decreased by **2%** but recorded a segment profit, mainly due to no allowance for trade receivables being made in the current period; the Group is developing new product lines and expanding into Japan and other Asia-Pacific markets[386](index=386&type=chunk)[387](index=387&type=chunk)[390](index=390&type=chunk) - Property investment business revenue decreased by **46%**, but segment loss narrowed, primarily due to the absence of goodwill impairment loss in the current period; the Group is striving to increase the occupancy rate of residential serviced apartments[392](index=392&type=chunk)[393](index=393&type=chunk)[396](index=396&type=chunk)[397](index=397&type=chunk) - Golf club operations business revenue grew by **4.4%** and recorded a segment profit of **HK$28,752,000**, demonstrating stable performance and providing consistent revenue to the Group[414](index=414&type=chunk)[416](index=416&type=chunk) - Regarding investments in associates, the fair value change of the investment in Elite Prosperous resulted in a gain of **HK$713,000**[417](index=417&type=chunk)[420](index=420&type=chunk) [FUTURE PROSPECTS](index=98&type=section&id=FUTURE%20PROSPECTS) Facing global macroeconomic uncertainties in H2 2025, the Group will remain cautious; the Board will closely monitor the stock market and adjust its investment portfolio as appropriate, maintain the size of its loan portfolio, and continue developing new jewelry product lines and expanding overseas markets; property investment will focus on increasing apartment occupancy and completing remaining property construction; golf club operations are expected to provide stable revenue and moderate growth; the Group will concentrate on existing businesses to consolidate its foundation to meet challenges - Directors anticipate the global macroeconomic environment will remain uncertain in H2 2025 and will cautiously observe the stock market, adjusting and realizing its equity securities investment portfolio as appropriate[423](index=423&type=chunk)[424](index=424&type=chunk)[427](index=427&type=chunk) - The Group intends to maintain the size of its loan portfolio in H2 2025, with loan interest income expected to be similar to H1, and will strive to recover overdue loans receivable[425](index=425&type=chunk)[427](index=427&type=chunk) - The sales of jewelry products business will continue to develop new product lines (e.g., other gemstone and affordable jewelry products) and explore new overseas markets (e.g., Japan and Southeast Asian countries), but H2 performance is expected to be similar to H1[426](index=426&type=chunk)[428](index=428&type=chunk) - The property investment business will dedicate more effort and resources to marketing and leasing activities to increase occupancy rates and proceed with the planned completion of the remaining four residential serv

(股份代號 Stock Code : 2460 ) (Registered by way of continuation in the Cayman Islands with limited liability) (以存續方式於開曼群島註冊成立的有限公司） 中報 2025 Interim Report CONTENTS 目錄 | 公司資料 | 2 | Corporate Information | | --- | --- | --- | | 管理層討論與分析 | 5 | Management Discussion and Analysis | | 其他資料 | 22 | Other Information | | 簡明合併財務報表審閱報告 | 33 | Report on Review of Condensed Consolidated Financial Statements | | 簡明合併損益及其他綜合收益表 | 35 | Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | | 簡明合併財 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而 產生或因倚賴該等內容而引致的任何損失承擔任何責任。 （於百慕達註冊成立之有限公司） （股份代號 : 00659） 截至 2025 年 6 月 30 日止年度 全年業績公告 綜合重點 周大福創建有限公司（「本公司」）董事會（「董事會」）欣然公佈本公司及其附屬公司 （統稱「本集團」）截至 2025 年 6 月 30 日止財政年度（「2025 財政年度」）的經審核綜合 業績，連同截至 2024 年 6 月 30 日止財政年度（「2024 財政年度」）的比較數字。 1 儘管宏觀經濟存在不確定性，本集團的多元化業務展現了 的多元化業務展現了穩健的增長，整體應 佔經營溢利按年增長 7%至 44.662 億港元。 本公司股東應佔溢利上升 4%至 21.62 億港元。 本集團財務狀況繼續保持穩健。於 2025 年 6 月 30 日，本集團的可動用流動資 金總額約 298 億港元，其中包括現金及銀行結存約 ，其中包括現金及銀行結存約 202 億港元及備用已承諾銀 行信貸額 ...

Financial Performance - For the six months ending June 30, 2025, the company recorded revenue of approximately RMB 3.0393 billion, an increase of about 13.1% compared to the same period last year[9]. - The profit attributable to shareholders was approximately RMB 32.5 million, a decrease of about 74.7% year-on-year, primarily due to a non-current asset impairment loss provision of RMB 161.5 million[9]. - The company reported a net profit attributable to shareholders of RMB 32,520,000 for the six months ended June 30, 2025, a significant decrease of 74.66% compared to RMB 128,499,000 in the prior year[111]. - The company recorded a net profit for the period of RMB 65,434,000, a decrease of 56.7% compared to RMB 151,421,000 in 2024[82]. - The gross profit margin for the urban services segment was 22.4%, consistent with the previous year, while the hazardous waste treatment segment saw a decline in gross profit margin from 4.5% to 0.3%[25]. - The gross profit for the same period was RMB 614,007 thousand, up 10.2% from RMB 556,846 thousand in 2024[82]. - The total revenue increased by approximately 13.1% from RMB 2.6878 billion for the six months ended June 30, 2024, to approximately RMB 3.0393 billion for the six months ended June 30, 2025, primarily due to increased revenue from urban services[38]. - The company reported a total comprehensive income of RMB 71,529 thousand for the period, compared to RMB 150,476 thousand in 2024[82]. Urban Services Expansion - The company secured 30 new urban service projects during the reporting period, with a total contract value of approximately RMB 852.5 million and estimated annual revenue of RMB 243.8 million[11]. - The company currently operates 5 urban management projects, generating annual service fees of approximately RMB 654.2 million, with a total contract amount exceeding RMB 5.4 billion[11]. - The company’s urban service business continues to expand in scale, with ongoing technological and model transformations driving growth in the sector[11]. - The total revenue from urban services was approximately RMB 2.661 billion for the six months ended June 30, 2025, compared to RMB 2.393 billion for the same period in 2024, reflecting a growth driven by the contribution from a project acquired in Hong Kong[41]. - The urban services segment generated revenue of RMB 2,664,179,000, an increase of 11% from RMB 2,402,168,000 in 2024[96]. Financial Management and Cash Flow - The company emphasizes the importance of cash flow management and asset utilization to ensure healthy operations and sustainable high-quality development[21]. - Cash and cash equivalents increased by RMB 117.2 million, mainly due to increased operating cash inflows for the six months ended June 30, 2025[65]. - As of June 30, 2025, the company's cash and cash equivalents were approximately RMB 1.0569 billion, up from RMB 939.7 million as of December 31, 2024[71]. - The net debt ratio decreased to 40.2% as of June 30, 2025, from 44.4% as of December 31, 2024, due to a reduction in net debt[72]. - The company reported an operating cash flow net amount of RMB 400,609,000, a significant increase of 192% compared to RMB 137,303,000 for the same period in 2024[88]. Cost Management and Expenses - Administrative expenses decreased to RMB 255.8 million for the six months ended June 30, 2025, from RMB 282.2 million for the same period in 2024, due to cost control measures[50]. - The cost of services provided increased to RMB 2,201,847,000 from RMB 1,972,011,000, representing an increase of 11.6%[106]. - The company incurred a loss of RMB 207,110,000 in the hazardous waste treatment segment for the six months ended June 30, 2025, compared to a loss of RMB 43,800,000 in 2024[96]. Risk Management and Sustainability - The group is committed to sustainable development, integrating low-carbon operations and risk management into its core strategy, and has received significant ESG ratings improvements[16]. - The group has strengthened risk and internal control management, enhancing safety and environmental management capabilities through a three-tier control system[17]. - The group anticipates that the urban services industry will accelerate its evolution towards green and intelligent operations, driven by national policies and technological advancements[20]. Shareholder Information and Dividends - The company proposed an interim dividend of HKD 0.018 per share[9]. - The company declared an interim dividend of HKD 0.018 per ordinary share for the six months ending June 30, 2025, payable to shareholders on the register as of September 11, 2025[147]. - The company paid RMB 12,103,000 in dividends to non-controlling shareholders, compared to RMB 4,907,000 in 2024[88]. Corporate Governance - The company emphasizes maintaining high levels of corporate governance to achieve sustainable development and enhance corporate performance[151]. - The audit committee consists of three independent non-executive directors, ensuring proper oversight of financial reporting and risk management[153]. - Appropriate accounting policies were adopted in preparing the financial results, complying with applicable listing rules[153].