2025 2025 中期報告 INTERIM REPORT 2025 中期報告 INTERIM REPORT 目錄 | 公司資料 | 2 | | --- | --- | | 管理層討論與分析 | 4 | | 其他資料 | 12 | | 簡明綜合損益及其他全面收入表 | 21 | | 簡明綜合財務狀況表 | 23 | | 簡明綜合權益變動表 | 25 | | 簡明綜合現金流量表 | 27 | | 簡明綜合財務報表附註 | 28 | 公司資料 董事會 執行董事 張玉秋女士 （主席） 單玉柱先生 （首席執行董事） 李溪泉先生 李鵬先生 獨立非執行董事 賴景然博士 宋曉峰博士 梁子榮先生 審核委員會 梁子榮先生 （主席） 賴景然博士 宋曉峰博士 薪酬委員會 宋曉峰博士 （主席） 單玉柱先生 賴景然博士 提名委員會 賴景然博士 （主席） 宋曉峰博士 張玉秋女士 （於2025年6月30日獲委任） 李溪泉先生 （於2025年6月30日離任） ESG委員會 梁子榮先生 （主席） 單玉柱先生 李鵬先生 賴景然博士 授權代表 單玉柱先生 黃寶琳女士， 香港會計師公會 公司秘書 黃寶琳女士， 香港會計師公會 獨立核數師 富睿瑪澤會 ...

Z:\09. IR\166678 King's Flair IR 2025\cover\Kings Flair IR25 cover 2 公司資料 3 管理層討論及分析 7 企業管治及其他資料 11 簡明綜合全面收益表 12 簡明綜合財務狀況表 14 簡明綜合權益變動表 16 簡明綜合現金流量表 17 簡明綜合中期財務報表附註 目 錄 頁次 公司資料 董事會 執行董事 黃少華博士 （主席兼行政總裁） 黃宓芝女士 獨立非執行董事 劉建德教授 Anthony Graeme Michaels 先生 梁慧玲女士 史維教授 董事委員會 審核委員會 梁慧玲女士 （主席） 劉建德教授 Anthony Graeme Michaels 先生 薪酬委員會 劉建德教授 （主席） Anthony Graeme Michaels 先生 梁慧玲女士 黃少華博士 黃宓芝女士 提名委員會 黃少華博士 （主席） 劉建德教授 Anthony Graeme Michaels 先生 梁慧玲女士 風險管理委員會 黃宓芝女士 （主席） 劉建德教授 梁慧玲女士 公司秘書 尹學賢先生， 香港會計師公會及澳洲會計師公會會員 核數師 香港立信德豪會計師事務所有 ...

目 錄 | 2 | 詞彙表 | | --- | --- | | 4 | 管理層討論及分析 | | 11 | 企業管治及其他資料 | | 17 | 簡明綜合財務報表審閱報告 | | 19 | 簡明綜合損益表 | | 20 | 簡明綜合全面收入表 | | 21 | 簡明綜合財務狀況表 | | 23 | 簡明綜合權益變動表 | | 24 | 簡明綜合現金流量表 | | 26 | 簡明綜合財務報表附註 | 目 錄 1 2025 中期報告 詞彙表 在本報告中，除非文義另有所指，否則以下詞彙應具有下列涵義： | 「審核委員會」 | 指 | 本公司審核委員會 | | --- | --- | --- | | 「董事會」 | 指 | 董事會 | | 「企業管治守則」 | 指 | 上市規則附錄C1所載的《企業管治守則》 | | 「中國」╱「內地」 | 指 | 中華人民共和國，就本報告而言，不包括香港、中國澳門特別行政區及台灣 | | 「中國信達」 | 指 | 中國信達資產管理股份有限公司，一間於中國註冊成立之股份有限公司，其H | | | | 股於聯交所主板上市（股份代號：1359） | | 「中國信達集團」 | 指 | 中國信 ...

2 Corporate Information 公司資料 5 Unaudited Condensed Consolidated Income Statement 未經審核簡明綜合收益表 6 Unaudited Condensed Consolidated Statement of Comprehensive Income 未經審核簡明綜合全面收益表 7 Unaudited Condensed Consolidated Statement of Financial Position 未經審核簡明綜合財務狀況表 9 Unaudited Condensed Consolidated Statement of Changes in Equity 未經審核簡明綜合權益變動表 11 Unaudited Condensed Consolidated Statement of Cash Flows 未經審核簡明綜合現金流量表 12 Notes to the Condensed Consolidated Interim Financial Information 簡明綜合中期財務資料附註 40 Management Discu ...

Company Information [Company Basic Information](index=3&type=section&id=Company%20Basic%20Information) The company was incorporated in the Cayman Islands on December 21, 2012, listed on the HKEX on July 11, 2014, and has a board with audit, remuneration, and nomination committees - The company was incorporated in the Cayman Islands on **December 21, 2012**, and listed on the Hong Kong Stock Exchange on **July 11, 2014**[127](index=127&type=chunk) - The company's stock code is **01848**[3](index=3&type=chunk) - The Board of Directors comprises non-executive directors (Mr. An Xuesong, Mr. Pan Jianyun), executive directors (Mr. Pan Hao Wen, Mr. Li Guohui), and independent non-executive directors (Mr. Cheuk Sing Chuen, Mr. Fan Chun Wah, Dr. Hung Man)[3](index=3&type=chunk)[4](index=4&type=chunk) - The company has an Audit Committee, a Remuneration Committee, and a Nomination Committee[3](index=3&type=chunk) [Major Banks and Financial Institutions](index=4&type=section&id=Major%20Banks%20and%20Financial%20Institutions) The company maintains relationships with numerous major domestic and international banks and financial institutions, demonstrating diversified financing channels - The company has dealings with major banks and financial institutions including Agricultural Bank of China, Airbus Bank GmbH, Bank of Beijing, Bank of China, Bank of Communications, Bank of Jiangsu, Bank of Ningbo, Bank of Shanghai, Bank of Tianjin, BNP Paribas, Bohai Bank, China CITIC Bank, CITIC Bank International, China Construction Bank, China Development Bank, China Everbright Bank, China Minsheng Banking Corp, China Merchants Bank, China Zheshang Bank, Chong Hing Bank, Crédit Agricole Corporate and Investment Bank, Deutsche Bank, Fubon Bank (Hong Kong), Bank of East Asia, Export-Import Bank of China, Huaxia Bank, Industrial and Commercial Bank of China, Industrial Bank Co Ltd, Korea Development Bank, MUFG Bank, Ltd., Nanyang Commercial Bank, Natixis, Postal Savings Bank of China, Shanghai Pudong Development Bank, Shengjing Bank, Société Générale, and Standard Chartered Bank[5](index=5&type=chunk) Management Discussion and Analysis [Interim Results Review](index=5&type=section&id=Interim%20Results%20Review) In H1 2025, the global aviation industry grew, China's civil aviation passenger market expanded rapidly, and the company achieved a 6.7% increase in profit attributable to shareholders - In H1 2025, global air passenger traffic increased by **5.1%** year-on-year, with load factor rising to **82.5%**; China's civil aviation international passenger traffic increased by approximately **30%**, with an overall load factor of **84.2%**[7](index=7&type=chunk) - Supply chain pressures and capacity shortages continued to drive up aircraft lease rates and asset values, but exchange rate fluctuations posed short-term challenges[7](index=7&type=chunk) 2025 H1 Key Financial Data | Indicator | 2025 H1 (million HKD) | 2024 H1 (million HKD) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 2,405.2 | 2,528.1 | -4.9% | | Profit Attributable to Company Shareholders | 140.5 | 131.7 | +6.7% | | Earnings Per Share (HKD) | 0.189 | 0.177 | +6.8% | | Interim Dividend (HKD per share) | 0.12 | 0.12 | 0% | [1) Active Trading and Asset Portfolio Optimization](index=5&type=section&id=1)%29%20Active%20Trading%20and%20Asset%20Portfolio%20Optimization) The company actively optimized its fleet in H1, delivering 10 new and 1 used aircraft, signing 21 aircraft sale and purchase agreements, and selling 19 aircraft and 2 engines - During the review period, the company delivered **10 new aircraft** and **1 used aircraft**, mostly new-generation Airbus fuel-efficient models[9](index=9&type=chunk) - New sale and purchase agreements/MOUs were signed for **21 aircraft**, and **19 aircraft** and **2 engines** were sold, setting a new record for aircraft transactions in the same period[9](index=9&type=chunk) Fleet Size and Composition (as of June 30, 2025) | Indicator | Quantity | | :--- | :--- | | Total Fleet | 181 aircraft | | Owned Aircraft | 151 aircraft | | Managed Aircraft | 30 aircraft | | Owned Fleet Narrow-body Aircraft Ratio | 89% | | Owned Fleet Utilization Rate | 100% (excluding one Russia-related aircraft) | | Owned Fleet Average Age | 8.6 years | | Owned Fleet Average Remaining Lease Term | 5.7 years | | Order Book | 114 aircraft (88 Airbus, 26 COMAC) | [2) Accelerating Globalization and Focusing on Quality Clientele](index=6&type=section&id=2)%29%20Accelerating%20Globalization%20and%20Focusing%20on%20Quality%20Clientele) The company expanded its global presence, leasing 7 new aircraft to overseas airlines and securing agreements with major carriers, with overseas clients exceeding 30% of the portfolio - In H1, **7 new aircraft** were leased to overseas airlines and **3** to domestic airlines[11](index=11&type=chunk) - The company delivered its first three Airbus A321neo aircraft to United Airlines, signed its first new aircraft lease agreement with Thai Airways, and delivered 1 aircraft to Korean Air[11](index=11&type=chunk) Customer Structure and Lease Collection Rate (as of June 30, 2025) | Indicator | Data | | :--- | :--- | | Owned Fleet Leased to Chinese Airlines Ratio | 67% | | Overseas Customer Ratio | >30% | | Countries/Regions Served | 22 | | Number of Airlines Served | 41 | | Overall Lease Collection Rate | 102% | - All new aircraft scheduled for delivery by December 2026 or earlier have secured leases, with over half to be leased to overseas airlines, projecting a further increase in overseas client proportion[12](index=12&type=chunk) [3) Strengthening Financing Capabilities and Credit Rating](index=6&type=section&id=3)%29%20Strengthening%20Financing%20Capabilities%20and%20Credit%20Rating) The company secured over HKD 10 billion in new and renewed financing in H1 through diversified channels, strategically re-entering the USD bond market and maintaining a AAA credit rating - During the review period, the company secured over **HKD 10 billion** in new and renewed financing facilities[13](index=13&type=chunk) Liquidity Position (as of June 30, 2025) | Indicator | Amount (million HKD) | | :--- | :--- | | Cash and Cash Equivalents | 4,884 | | Undrawn Borrowing Facilities | 11,228 | | Total Cash and Cash Equivalents and Undrawn Borrowing Facilities | 16,112 | - In USD financing, the company successfully increased its first warehouse aircraft financing facility issued in 2024 to **USD 700 million**, oversubscribed by **20 top global financial institutions**[14](index=14&type=chunk) - Strategically re-entered the USD bond public market, enhancing flexibility in USD fund utilization[14](index=14&type=chunk) - In RMB financing, through its wholly-owned subsidiary CALC (Tianjin), the company successfully issued a **5-year RMB 1.5 billion corporate bond** with a coupon rate of **2.38%**, oversubscribed by **1.73 times**[16](index=16&type=chunk) - As of June 30, 2025, RMB borrowings accounted for approximately **32%** of total interest-bearing debt[16](index=16&type=chunk) - CALC (Tianjin) maintained the **AAA highest credit rating** with a stable outlook from two major domestic Chinese rating agencies[16](index=16&type=chunk) [4) Two Years of Safe Operations, Writing a New Chapter for Domestic Aircraft](index=7&type=section&id=4)%29%20Two%20Years%20of%20Safe%20Operations%2C%20Writing%20a%20New%20Chapter%20for%20Domestic%20Aircraft) Associate company Transnusa Aviation Mandiri, a flagship for Chinese domestic aircraft overseas, received its fourth COMAC C909 aircraft and launched a new international route - Associate company Transnusa Aviation Mandiri has received its **fourth COMAC C909 aircraft**[17](index=17&type=chunk) - Successfully launched the "Manado, Indonesia – Shanghai Pudong" route, the **second regular route** to a Chinese first-tier city operated by the C909 fleet[17](index=17&type=chunk) - The Transnusa C909 fleet celebrated **two years of safe operations**, having flown to **20 regions in 4 countries** and transported over **360,000 passengers**[17](index=17&type=chunk) [Outlook](index=7&type=section&id=Outlook) The company anticipates steady global aviation market growth in 2025, with record high industry revenue and passenger volumes, and will leverage market opportunities to expand its global client base - IATA forecasts record high industry total revenue and passenger volumes in 2025, reaching **USD 979 billion** and **4.99 billion passengers**, respectively[18](index=18&type=chunk) - Supply chain challenges will persist, and global fleet shortages will continue to drive up aircraft market values and lease rates[18](index=18&type=chunk) - The company will capitalize on the market upcycle, expand its global quality clientele, and provide full aircraft lifecycle solutions[18](index=18&type=chunk) - Expected Fed interest rate cuts in H2 will reduce funding costs, stimulating global transaction market activity and bringing more quality transaction opportunities[18](index=18&type=chunk) - The company will continue the strong momentum in its trading business from H1, optimize its fleet assets, expand its managed fleet size, and flexibly utilize diversified financing channels while closely monitoring exchange rate market changes[18](index=18&type=chunk) [Interim Condensed Consolidated Statement of Profit or Loss](index=8&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, total revenue was HKD 2,405.2 million, a 4.9% decrease, while profit attributable to shareholders increased by 6.7% to HKD 140.5 million Key Data from Interim Condensed Consolidated Statement of Profit or Loss (for the six months ended June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 2,405,225 | 2,528,096 | -4.9% | | Lease Income | 1,908,112 | 2,222,461 | -14.1% | | Net Income from Aircraft Trading and Aircraft Parts Trading | 294,679 | 25,427 | +1059.0% | | Other Income | 202,434 | 280,208 | -27.8% | | Interest Expense and Payments to Trust Schemes | (1,104,362) | (1,340,118) | -17.6% | | Depreciation and Impairment | (683,313) | (839,726) | -18.6% | | Reversal of Expected Credit Losses | 7,805 | 28,331 | -72.5% | | Other Operating Expenses | (267,377) | (236,601) | +13.0% | | Profit for the Period | 157,867 | 185,649 | -14.9% | | Profit Attributable to Company Shareholders | 140,526 | 131,749 | +6.7% | | Basic Earnings Per Share (HKD) | 0.189 | 0.177 | +6.8% | [Interim Condensed Consolidated Statement of Financial Position](index=9&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets were HKD 58,612.8 million, a 0.6% increase, total liabilities were HKD 52,787.1 million, a 0.2% decrease, and total equity grew by 9.3% to HKD 5,825.7 million Key Data from Interim Condensed Consolidated Statement of Financial Position (as of June 30) | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 58,612,796 | 58,239,688 | +0.6% | | Property, Plant and Equipment and Right-of-Use Assets | 29,072,332 | 28,860,008 | +0.7% | | Finance Lease Receivables – Net | 9,518,719 | 9,185,457 | +3.6% | | Assets Classified as Held for Sale | 4,330,242 | 5,555,238 | -22.1% | | Cash and Cash Equivalents | 4,884,186 | 3,778,318 | +29.3% | | Total Equity | 5,825,688 | 5,328,197 | +9.3% | | Total Liabilities | 52,787,108 | 52,911,491 | -0.2% | | Borrowings | 42,815,976 | 43,046,205 | -0.5% | | Bonds and Commercial Papers | 4,384,084 | 3,930,722 | +11.5% | [1. Performance](index=10&type=section&id=1.%20Performance) In H1 2025, total revenue decreased by 4.9% to HKD 2,405.2 million due to a smaller fleet, but profit attributable to shareholders increased by 6.7% to HKD 140.5 million 2025 H1 Key Performance Indicators | Indicator | 2025 H1 (million HKD) | 2024 H1 (million HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 2,405.2 | 2,528.1 | -4.9% | | Profit for the Period | 157.9 | 185.6 | -14.9% | | Profit Attributable to Company Shareholders | 140.5 | 131.7 | +6.7% | | EBITDA | 1,976.1 | 2,481.3 | -20.3% | | Total Assets (period-end) | 58,612.8 | 58,239.7 (Dec 31, 2024) | +0.6% | | Total Liabilities (period-end) | 52,787.1 | 52,911.5 (Dec 31, 2024) | -0.2% | [1.1 Total Revenue](index=10&type=section&id=1.1%20Total%20Revenue) Total revenue for H1 2025 was HKD 2,405.2 million, a 4.9% decrease, with lease income falling 14.1% due to a smaller fleet and lower average lease yields Lease Income and Yields (for the six months ended June 30) | Indicator | 2025 (million HKD) | 2024 (million HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 2,405.2 | 2,528.1 | -4.9% | | Total Lease Income | 1,908.1 | 2,222.5 | -14.1% | | Average Finance Lease Yield | 6.8% | 9.5% | -2.7 percentage points | | Average Operating Lease Yield | 9.3% | 10.2% | -0.9 percentage points | | Weighted Average Lease Yield | 9.3% | 10.1% | -0.8 percentage points | - The decrease in total lease income was primarily due to a reduction in fleet size from **172 aircraft** as of June 30, 2024, to **151 aircraft** as of June 30, 2025[23](index=23&type=chunk) - The decrease in average finance lease yield was mainly due to the reclassification of certain finance lease aircraft to operating leases[24](index=24&type=chunk) [1.2 Other Operating Income](index=11&type=section&id=1.2%20Other%20Operating%20Income) In H1 2025, total other operating income was HKD 497.1 million, with net income from aircraft trading significantly increasing to HKD 294.7 million, while other income decreased Other Operating Income Components (for the six months ended June 30) | Indicator | 2025 (million HKD) | 2024 (million HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Net Income from Aircraft Trading and Aircraft Parts Trading | 294.7 | 25.4 | +1059.0% | | Other Income | 202.4 | 280.2 | -27.8% | | **Total** | **497.1** | **305.6** | **+62.7%** | - The significant increase in net income from aircraft trading and aircraft parts trading was primarily due to the sale of **19 aircraft** and aircraft parts trading, compared to the sale of **5 aircraft** in the same period last year[26](index=26&type=chunk) Other Income Breakdown (for the six months ended June 30) | Indicator | 2025 (million HKD) | 2024 (million HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Government Grants | 66.6 | 113.1 | -41.1% | | Interest Income from Loans to Associates and Joint Ventures | 46.0 | 55.0 | -16.4% | | Bank Interest Income | 62.1 | 65.3 | -4.9% | | Asset Management Service Fees from CAG Group | 4.3 | 9.2 | -53.3% | | Others | 23.4 | 37.6 | -37.8% | | **Total** | **202.4** | **280.2** | **-27.8%** | [1.3 Expenses](index=12&type=section&id=1.3%20Expenses) In H1 2025, interest expense and trust scheme payments decreased by 17.6%, and depreciation and impairment decreased by 18.6%, while other operating expenses increased due to higher engine lease costs Major Expense Changes (for the six months ended June 30) | Indicator | 2025 (million HKD) | 2024 (million HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Interest Expense and Payments to Trust Schemes | 1,104.4 | 1,340.1 | -17.6% | | Depreciation and Impairment | 683.3 | 839.7 | -18.6% | | Reversal of Expected Credit Losses | 7.8 | 28.3 | -72.5% | | Other Operating Expenses | 267.4 | 236.6 | +13.0% | - The decrease in interest expense was mainly due to reduced bank and other borrowings resulting from a smaller fleet size, and a decrease in the average USD Secured Overnight Financing Rate (SOFR) from **5.36% to 4.47%**[29](index=29&type=chunk) - The decrease in depreciation and impairment was primarily due to a reduction in the number of operating lease aircraft subject to depreciation from **119 aircraft** as of June 30, 2024, to **90 aircraft** as of June 30, 2025[30](index=30&type=chunk) - The decrease in reversal of expected credit losses was mainly due to the repayment of certain loans by a joint venture and improved operating performance[31](index=31&type=chunk) - The increase in other operating expenses was primarily due to higher engine lease costs[33](index=33&type=chunk) [1.4 Other (Losses)/Gains, Net](index=13&type=section&id=1.4%20Other%20%28Losses%29%2FGains%2C%20Net) In H1 2025, net other losses were HKD 170.4 million, compared to net gains of HKD 162.0 million in the prior period, primarily due to foreign exchange losses Other (Losses)/Gains, Net Breakdown (for the six months ended June 30) | Indicator | 2025 (million HKD) | 2024 (million HKD) | | :--- | :--- | :--- | | Exchange (Losses)/Gains | (176.3) | 253.5 | | Fair Value Gains/(Losses) on Forward Currency Contracts | 16.1 | (78.2) | | Fair Value Gains on Financial Assets at FVTPL | 0.7 | 0.4 | | Fair Value Changes of Interest Rate Swaps | (6.3) | – | | Hedge Ineffectiveness | 0.6 | 0.2 | | Realized Losses on Currency Swaps | – | (13.9) | | Loss on Disposal of a Subsidiary | (5.2) | – | | **Total** | **(170.4)** | **162.0** | - The net exchange losses were mainly due to the depreciation of the USD against the RMB from approximately **7.3** as of December 31, 2024, to approximately **7.2** as of June 30, 2025[34](index=34&type=chunk) - A **5% appreciation/depreciation** of the RMB against the USD would result in a decrease/increase in profit before tax of **HKD 195.7 million**[35](index=35&type=chunk) [1.5 Income Tax Expense](index=13&type=section&id=1.5%20Income%20Tax%20Expense) Income tax expense for H1 2025 was HKD 30.5 million, a significant reduction from HKD 115.8 million in the prior period, primarily due to deferred tax adjustments Income Tax Expense (for the six months ended June 30) | Indicator | 2025 (million HKD) | 2024 (million HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Income Tax Expense | 30.5 | 115.8 | -73.7% | - The decrease in income tax expense was mainly due to the reversal of deferred tax liabilities from prior years and the recognition of deferred tax assets due to foreseeable future profits and their utilization[36](index=36&type=chunk) [2. Interim Condensed Consolidated Statement of Financial Position](index=14&type=section&id=2.%20Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets were HKD 58,612.8 million, a 0.6% increase, and total liabilities were HKD 52,787.1 million, a 0.2% decrease, maintaining a stable financial structure Major Statement of Financial Position Item Changes (as of June 30) | Indicator | June 30, 2025 (million HKD) | December 31, 2024 (million HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 58,612.8 | 58,239.7 | +0.6% | | Property, Plant and Equipment and Right-of-Use Assets | 29,072.3 | 28,860.0 | +0.7% | | Finance Lease Receivables – Net | 9,518.7 | 9,185.5 | +3.6% | | Assets Classified as Held for Sale | 4,330.2 | 5,555.2 | -22.1% | | Cash and Cash Equivalents | 4,884.2 | 3,778.3 | +29.3% | | Total Liabilities | 52,787.1 | 52,911.5 | -0.2% | | Borrowings | 42,816.0 | 43,046.2 | -0.5% | | Bonds and Commercial Papers | 4,384.1 | 3,930.7 | +11.5% | [2.1 Assets](index=14&type=section&id=2.1%20Assets) As of June 30, 2025, total assets increased by 0.6% to HKD 58,612.8 million, with increases in PPE and cash, and a decrease in assets held for sale Asset Item Changes (as of June 30) | Indicator | June 30, 2025 (million HKD) | December 31, 2024 (million HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Property, Plant and Equipment and Right-of-Use Assets | 29,072.3 | 28,860.0 | +0.7% | | Finance Lease Receivables – Net | 9,518.7 | 9,185.5 | +3.6% | | Assets Classified as Held for Sale | 4,330.2 | 5,555.2 | -22.1% | | Aircraft Prepayments and Other Prepayments and Receivables | 7,772.3 | 7,855.3 | -1.1% | | Deferred Income Tax Assets | 94.8 | 36.1 | +162.6% | | Cash and Cash Equivalents | 4,884.2 | 3,778.3 | +29.3% | - The increase in property, plant and equipment and right-of-use assets was mainly due to the appreciation of the USD against the HKD and the RMB against the HKD[40](index=40&type=chunk) - The decrease in assets classified as held for sale was mainly due to the disposal of certain aircraft classified as held for sale, with the number decreasing from **19 to 12**[41](index=41&type=chunk) - Operating lease receivables decreased by **11.9%**, mainly due to the repayment of overdue rent by lessees, with the rent collection ratio increasing to **102.2%**[48](index=48&type=chunk) [2.1.2 Aircraft Portfolio](index=16&type=section&id=2.1.2%20Aircraft%20Portfolio) As of June 30, 2025, the company's owned fleet comprised 151 aircraft, a decrease from 159 at year-end 2024, primarily consisting of Airbus A320 CEO/NEO and Boeing B737 NG series Owned Aircraft Portfolio (by number of aircraft) | Aircraft Type | June 30, 2025 (aircraft) | December 31, 2024 (aircraft) | June 30, 2024 (aircraft) | | :--- | :--- | :--- | :--- | | Airbus A320 CEO Series | 67 | 71 | 80 | | Airbus A320 NEO Series | 50 | 51 | 54 | | Airbus A330 CEO Series | 12 | 12 | 13 | | Boeing B737 NG Series | 15 | 19 | 19 | | Boeing B737 MAX Series | 2 | 2 | 2 | | Boeing B787 | 1 | 1 | 1 | | COMAC C909 | 4 | 3 | 3 | | **Total** | **151** | **159** | **172** | [2.2 Liabilities](index=17&type=section&id=2.2%20Liabilities) As of June 30, 2025, total liabilities slightly decreased by 0.2% to HKD 52,787.1 million, with borrowings decreasing and bonds and commercial papers increasing Liability Item Changes (as of June 30) | Indicator | June 30, 2025 (million HKD) | December 31, 2024 (million HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Total Liabilities | 52,787.1 | 52,911.5 | -0.2% | | Borrowings | 42,816.0 | 43,046.2 | -0.5% | | Bonds and Commercial Papers | 4,384.1 | 3,930.7 | +11.5% | | Medium Term Notes | 1,643.2 | 1,599.7 | +2.7% | | Total Interest-bearing Debt | 48,843.3 | 48,576.6 | +0.5% | | Derivative Financial Liabilities | 6.9 | 233.7 | -97.0% | - The decrease in total borrowings was mainly due to a reduction of **HKD 1,528.1 million** in bank and other borrowings for aircraft purchase financing and a decrease of **HKD 605.6 million** in PDP financing, offset by an increase of **HKD 2,205.7 million** in other bank borrowings[51](index=51&type=chunk) - The increase in bonds and commercial papers was mainly due to the net effect of issuing **RMB 1,500.0 million** in bonds and repaying **RMB 1,200.0 million** in bonds that matured[52](index=52&type=chunk) [3. Capital Management](index=20&type=section&id=3.%20Capital%20Management) The company's capital management policy aims to maintain a robust credit profile and sound capital ratios to support business growth and enhance shareholder value - The company's capital management policy aims to ensure the maintenance of a sound credit profile and healthy capital ratios to support its business and create maximum value for shareholders[55](index=55&type=chunk) - Funding sources include cash generated from operations, bank and other borrowings, bond, commercial paper, and medium-term note issuances, as well as a light-asset strategy (including aircraft disposals)[55](index=55&type=chunk) Capital Position Indicators (as of June 30) | Indicator | June 30, 2025 | December 31, 2024 | Change (percentage points/%) | | :--- | :--- | :--- | :--- | | Gearing Ratio | 83.3% | 83.4% | -0.1 percentage points | | Debt-to-Asset Ratio | 90.1% | 90.9% | -0.8 percentage points | | Interest-bearing Debt to Equity Ratio | 8.4:1 | 9.1:1 | -7.7% | [4. Human Resources](index=20&type=section&id=4.%20Human%20Resources) As of June 30, 2025, the company had 175 employees, a decrease from the prior period, with total employee remuneration also declining Human Resources Data (as of June 30) | Indicator | June 30, 2025 | June 30, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total Employees | 175 | 183 | -4.4% | | Total Employee Remuneration (million HKD) | 94.2 | 122.1 | -22.9% | - The company has established effective employee incentive schemes and share option schemes to recognize employee contributions and implement a merit-based reward system[57](index=57&type=chunk) [5. Contractual Obligations, Contingent Liabilities and Capital Commitments](index=21&type=section&id=5.%20Contractual%20Obligations%2C%20Contingent%20Liabilities%20and%20Capital%20Commitments) As of June 30, 2025, the company provided HKD 497.1 million in guarantees for associate and joint venture bank borrowings, with net guarantees of HKD 309.6 million, and had HKD 41.4 billion in capital commitments for aircraft purchases Contingent Liabilities and Capital Commitments (as of June 30) | Indicator | June 30, 2025 (million HKD) | December 31, 2024 (million HKD) | | :--- | :--- | :--- | | Guarantees for Bank Borrowings of Associates and Joint Ventures | 497.1 | 515.6 | | Net Guarantees Excluding Counter-guarantees | 309.6 | 319.6 | | Capital Commitments for Aircraft Purchases | 41,400 | 45,100 | | Number of Aircraft in Order Book | 114 aircraft | | Number of Aircraft Delivered During Review Period | 11 aircraft | | Number of Aircraft Sold During Review Period | 19 aircraft | - Capital commitments involve **114 aircraft**, including **88 Airbus** and **26 COMAC** aircraft[60](index=60&type=chunk) [Reconciliation of Non-GAAP Financial Measures](index=22&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) The company believes that payments to trust schemes should not be included in interest expense for performance evaluation, and has ceased disclosing certain non-GAAP measures due to immaterial impact - The company believes that payments to trust schemes should not be included in interest expense to more accurately assess operating performance[63](index=63&type=chunk) Adjusted Interest Expense (for the six months ended June 30) | Indicator | 2025 (million HKD) | 2024 (million HKD) | | :--- | :--- | :--- | | Interest Expense | 1,104.4 | 1,340.1 | | Less: Payments to Trust Schemes | (123.1) | (133.5) | | **Adjusted Interest Expense** | **981.3** | **1,206.6** | - As payments related to trust schemes or asset-backed special purpose schemes had no material impact on the financial performance for H1 2025, the company no longer discloses related non-GAAP financial measures[64](index=64&type=chunk) General Information [Disclosure of Interests](index=24&type=section&id=Disclosure%20of%20Interests) As of June 30, 2025, directors, chief executives, major shareholders, and other individuals held interests in the company's shares and related shares Shareholdings of Directors and Chief Executives (as of June 30, 2025) | Director Name | Capacity | Total Interests (shares) | Approximate Percentage of Issued Shares | | :--- | :--- | :--- | :--- | | Pan Hao Wen | Interest of controlled corporation/Beneficial owner | 186,427,261 | 25.04% | | Cheuk Sing Chuen | Beneficial owner | 5,000 | 0.001% | Shareholdings of Major Shareholders and Other Persons (as of June 30, 2025) | Shareholder Name | Capacity | Total Interests (shares) | Approximate Percentage of Issued Shares | | :--- | :--- | :--- | :--- | | Everbright Aircraft Leasing Investment Holdings Limited | Beneficial owner | 244,065,373 | 32.78% | | China Everbright Limited | Interest of controlled corporation | 283,417,693 | 38.06% | | China Everbright Group Ltd | Interest of controlled corporation | 283,417,693 | 38.06% | | China Everbright Group Company Limited | Interest of controlled corporation | 283,417,693 | 38.06% | | Central Huijin Investment Ltd | Interest of controlled corporation | 283,417,693 | 38.06% | | Friedmann Pacific Asset Management Limited | Beneficial owner | 176,496,672 | 23.70% | | Capella Capital Limited | Interest of controlled corporation | 176,496,672 | 23.70% | | Pan Hao Wen | Interest of controlled corporation/Beneficial owner | 186,427,261 | 25.04% | | Wu Yiling | Interest of controlled corporation/Beneficial owner | 183,996,672 | 24.71% | [Corporate Governance](index=28&type=section&id=Corporate%20Governance) The company is committed to maintaining high standards of corporate governance and has complied with all code provisions of the Corporate Governance Code under Appendix C1 of the Listing Rules - The company has adopted the principles of the Corporate Governance Code set out in Appendix C1 of the Listing Rules as its corporate governance practices[74](index=74&type=chunk) - For the six months ended June 30, 2025, the company has complied with all code provisions contained in Part 2 of the Corporate Governance Code[75](index=75&type=chunk) - All directors confirmed their compliance with the required standards set out in the Model Code for securities transactions for the six months ended June 30, 2025[76](index=76&type=chunk) [Board Committees](index=29&type=section&id=Board%20Committees) The company has an Audit Committee, Remuneration Committee, and Nomination Committee, all chaired or primarily composed of independent non-executive directors to ensure independence and professionalism - The Audit Committee comprises three independent non-executive directors, with Mr. Fan Chun Wah as Chairman, and its primary responsibilities include reviewing financial reporting, internal audit, and risk management systems[77](index=77&type=chunk) - The Remuneration Committee comprises five members, with Dr. Hung Man as Chairman, and its primary responsibility is to monitor the remuneration policies for directors and senior management[80](index=80&type=chunk) - The Nomination Committee comprises three independent non-executive directors, with Mr. Cheuk Sing Chuen as Chairman, and its primary responsibilities include selecting and recommending director candidates, reviewing the Board structure, and assessing the independence of independent non-executive directors[81](index=81&type=chunk) [Post-IPO Share Option Scheme](index=30&type=section&id=Post-IPO%20Share%20Option%20Scheme) The company's Post-IPO Share Option Scheme expired on July 10, 2024, with no options granted or exercised in H1 2025, and all unexercised options automatically lapsed on April 5, 2025 - The Post-IPO Share Option Scheme expired on **July 10, 2024**[83](index=83&type=chunk) - For the six months ended June 30, 2025, no share options were granted or exercised[83](index=83&type=chunk)[85](index=85&type=chunk) - All unexercised share options granted under the Post-IPO Share Option Scheme automatically lapsed upon the expiry of their exercise period on **April 5, 2025**[89](index=89&type=chunk) [Other Information](index=34&type=section&id=Other%20Information) This section discloses changes in director information since the last annual report, including resignations, appointments, and re-designations, as well as post-reporting period aircraft sales and dividend declaration - Ms. Wang Yun resigned as a non-executive director and member of several committees, effective **March 18, 2025**[95](index=95&type=chunk) - Mr. Pan Jianyun was appointed as a non-executive director and member of several committees, effective **March 18, 2025**, and was appointed as an executive director and vice president of China Everbright Limited on **March 27, 2025**[96](index=96&type=chunk) - Dr. Hung Man was appointed as an independent non-executive director and member of several committees, effective **March 18, 2025**, and was re-designated as Chairman of the Remuneration Committee on **May 27, 2025**[98](index=98&type=chunk) - On **July 31, 2025**, the company entered into agreements to sell **eight aircraft** (six owned, two managed), with completion expected by the end of October 2025[101](index=101&type=chunk) - The Board declared an interim dividend of **HKD 0.12 per share** for the six months ended June 30, 2025, payable on or about **October 8, 2025**[104](index=104&type=chunk) - The company repaid its **RMB 1.2 billion non-public bond** that matured in February 2025[106](index=106&type=chunk) Review Report on Interim Condensed Consolidated Financial Information [Review Conclusion](index=37&type=section&id=Review%20Conclusion) Deloitte Touche Tohmatsu has reviewed the interim condensed consolidated financial information of China Aircraft Leasing Group Holdings Limited for the six months ended June 30, 2025, and found no matters suggesting non-compliance with HKAS 34 - Deloitte Touche Tohmatsu has reviewed the company's interim condensed consolidated financial information[111](index=111&type=chunk) - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410, with a scope smaller than an audit, and no audit opinion is expressed[112](index=112&type=chunk) - The review concluded that no matters came to their attention that caused them to believe the interim financial information is not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34[113](index=113&type=chunk) - The comparative interim condensed consolidated statement of profit or loss, statement of comprehensive income, statement of changes in equity, and statement of cash flows for the six months ended June 30, 2024, and related notes were not reviewed in accordance with Hong Kong Standard on Review Engagements 2410[114](index=114&type=chunk) Interim Condensed Consolidated Statement of Financial Position [Statement of Financial Position Overview](index=39&type=section&id=Statement%20of%20Financial%20Position%20Overview) As of June 30, 2025, total assets were HKD 58,612.8 million, total liabilities were HKD 52,787.1 million, and total equity was HKD 5,825.7 million, with PPE and borrowings being the largest categories Interim Condensed Consolidated Statement of Financial Position (as of June 30) | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | **Assets** | | | | Property, Plant and Equipment and Right-of-Use Assets | 29,072,332 | 28,860,008 | | Aircraft Prepayments and Other Prepayments and Receivables | 7,772,295 | 7,855,333 | | Finance Lease Receivables – Net | 9,518,719 | 9,185,457 | | Assets Classified as Held for Sale | 4,330,242 | 5,555,238 | | Cash and Cash Equivalents | 4,884,186 | 3,778,318 | | **Total Assets** | **58,612,796** | **58,239,688** | | **Equity** | | | | Equity Attributable to Company Shareholders | 4,181,529 | 4,229,457 | | Perpetual Capital Securities and Other Non-controlling Interests | 1,644,159 | 1,098,740 | | **Total Equity** | **5,825,688** | **5,328,197** | | **Liabilities** | | | | Borrowings | 42,815,976 | 43,046,205 | | Bonds and Commercial Papers | 4,384,084 | 3,930,722 | | **Total Liabilities** | **52,787,108** | **52,911,491** | Interim Condensed Consolidated Statement of Profit or Loss [Statement of Profit or Loss Overview](index=40&type=section&id=Statement%20of%20Profit%20or%20Loss%20Overview) For the six months ended June 30, 2025, total revenue was HKD 2,405.2 million, profit for the period was HKD 157.9 million, and profit attributable to shareholders was HKD 140.5 million, with significant growth in net income from aircraft trading Interim Condensed Consolidated Statement of Profit or Loss (for the six months ended June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Total Revenue | 2,405,225 | 2,528,096 | | Lease Income | 1,908,112 | 2,222,461 | | Net Income from Aircraft Trading and Aircraft Parts Trading | 294,679 | 25,427 | | Other Operating Income | 497,113 | 305,635 | | Interest Expense | (1,104,362) | (1,340,118) | | Depreciation and Impairment | (683,313) | (839,726) | | Profit for the Period | 157,867 | 185,649 | | Profit Attributable to Company Shareholders | 140,526 | 131,749 | | Basic Earnings Per Share (HKD) | 0.189 | 0.177 | Interim Condensed Consolidated Statement of Comprehensive Income [Statement of Comprehensive Income Overview](index=41&type=section&id=Statement%20of%20Comprehensive%20Income%20Overview) For the six months ended June 30, 2025, profit for the period was HKD 157.9 million, with total other comprehensive losses of HKD 56.7 million, resulting in total comprehensive income of HKD 101.2 million Interim Condensed Consolidated Statement of Comprehensive Income (for the six months ended June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Profit for the Period | 157,867 | 185,649 | | Other Comprehensive (Losses)/Income for the Period: | | | | Cash Flow Hedges | (6,347) | (35,156) | | Currency Translation Differences | (48,070) | (43,131) | | Currency Translation Differences Attributable to Non-controlling Interests | (2,260) | 447 | | Total Other Comprehensive Losses for the Period, Net of Tax | (56,677) | (77,840) | | **Total Comprehensive Income for the Period** | **101,190** | **107,809** | | Total Comprehensive Income Attributable to Company Shareholders | 86,109 | 53,462 | | Holders of Perpetual Capital Securities and Other Non-controlling Interests | 15,081 | 54,347 | Interim Condensed Consolidated Statement of Changes in Equity [Statement of Changes in Equity Overview](index=42&type=section&id=Statement%20of%20Changes%20in%20Equity%20Overview) As of June 30, 2025, total equity was HKD 5,825.7 million, with HKD 4,181.5 million attributable to company shareholders and HKD 1,644.2 million to perpetual capital securities and other non-controlling interests Interim Condensed Consolidated Statement of Changes in Equity (as of June 30) | Indicator | June 30, 2025 (thousand HKD) | January 1, 2024 (thousand HKD) | | :--- | :--- | :--- | | Total Equity Attributable to Company Shareholders | 4,181,529 | 4,329,540 | | Total Perpetual Capital Securities Holders and Other Non-controlling Interests | 1,644,159 | 810,422 | | **Total Equity** | **5,825,688** | **5,139,962** | | Profit for the Period (Attributable to Company Shareholders) | 140,526 | 131,749 | | Profit for the Period (Attributable to Perpetual Capital Securities and Non-controlling Interests) | 17,341 | 53,900 | | Issuance of Perpetual Capital Securities | 530,628 | – | | Dividends | (134,037) | (111,653) | Interim Condensed Consolidated Statement of Cash Flows [Statement of Cash Flows Overview](index=43&type=section&id=Statement%20of%20Cash%20Flows%20Overview) For the six months ended June 30, 2025, net cash from operating activities was HKD 1,012.0 million, net cash from investing activities was HKD 1,448.0 million, and net cash used in financing activities was HKD 1,407.1 million Interim Condensed Consolidated Statement of Cash Flows (for the six months ended June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 1,012,038 | 1,544,558 | | Net Cash Generated from/(Used in) Investing Activities | 1,448,040 | (3,898,406) | | Net Cash (Used in)/Generated from Financing Activities | (1,407,113) | 3,207,880 | | Net Increase in Cash and Cash Equivalents | 1,052,965 | 854,032 | | Cash and Cash Equivalents at End of Period | 4,884,186 | 6,114,507 | - Net cash flow from investing activities changed from a net outflow in the prior period to a net inflow, mainly due to a significant increase in proceeds from aircraft disposals[124](index=124&type=chunk) - Net cash flow from financing activities changed from a net inflow in the prior period to a net outflow, mainly due to the repayment of borrowings and bonds and commercial papers[125](index=125&type=chunk) Notes to Interim Condensed Consolidated Financial Information [1. General Information of the Group](index=45&type=section&id=1.%20General%20Information%20of%20the%20Group) China Aircraft Leasing Group Holdings Limited, incorporated in the Cayman Islands and listed in Hong Kong, primarily engages in aircraft leasing across mainland China and globally, with interim financial information presented in HKD - The company was incorporated in the Cayman Islands on **December 21, 2012**, and its shares have been listed on the Main Board of The Stock Exchange of Hong Kong Limited since **July 11, 2014**[127](index=127&type=chunk) - The company and its subsidiaries are principally engaged in aircraft leasing business, operating in mainland China and other countries or regions globally[127](index=127&type=chunk) - The interim financial information is presented in **Hong Kong dollars**[128](index=128&type=chunk) [2. Basis of Preparation](index=45&type=section&id=2.%20Basis%20of%20Preparation) The interim financial information is prepared in accordance with HKAS 34, and despite current liabilities exceeding current assets, management assesses sufficient working capital for the next 12 months - The interim financial information has been prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[129](index=129&type=chunk) - As of June 30, 2025, the company's current liabilities exceeded its current assets by **HKD 7,697.2 million**, and total capital commitments amounted to **HKD 41,390.3 million**[130](index=130&type=chunk) - The directors believe that, through internal resources, bank financing, aircraft project loans, debt instrument issuances, and aircraft disposal plans, the company has sufficient working capital to meet its requirements for the next 12 months, and thus the financial information is prepared on a going concern basis[137](index=137&type=chunk) - As of June 30, 2025, the company's cash and cash equivalents amounted to **HKD 4,884.2 million**[130](index=130&type=chunk) [3. Accounting Policies](index=48&type=section&id=3.%20Accounting%20Policies) The accounting policies and methods of computation used in preparing this interim financial information are consistent with those followed in the 2024 annual consolidated financial statements, with no material impact from new standards - The accounting policies and methods of computation used in the preparation of this interim financial information are consistent with those followed in the preparation of the 2024 annual consolidated financial statements[139](index=139&type=chunk) - Hong Kong Accounting Standard 21 (Amendments) "Lack of Exchangeability" was first applied in the current interim period but had no material impact on the financial position and performance for the current and prior periods[140](index=140&type=chunk) [4. Estimates](index=48&type=section&id=4.%20Estimates) The preparation of interim financial information requires management to make judgments, estimates, and assumptions consistent with those applied in the 2024 annual consolidated financial statements, with actual results potentially differing from estimates - The preparation of interim financial information requires management to make judgments, estimates, and assumptions, which are consistent with those applied in the 2024 annual consolidated financial statements[141](index=141&type=chunk) [5. Financial Risk Management](index=48&type=section&id=5.%20Financial%20Risk%20Management) The company manages market risks (currency, interest rate), credit risk, and liquidity risk through hedging, counterparty credit assessment, portfolio diversification, and maintaining adequate liquidity - The company is exposed to market risk (including currency translation risk and cash flow and fair value interest rate risk), credit risk, and liquidity risk[142](index=142&type=chunk) - There have been no significant changes in the risk management department or any risk management policies since December 31, 2024[143](index=143&type=chunk) Capital Position Indicators (as of June 30) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gearing Ratio | 83.3% | 83.4% | | Debt-to-Asset Ratio | 90.1% | 90.9% | | Interest-bearing Debt to Equity Ratio | 8.4:1 | 9.1:1 | [Financial Risk Factors](index=48&type=section&id=Financial%20Risk%20Factors) The company manages market risks (currency, interest rate), credit risk, and liquidity risk through hedging, counterparty credit assessment, portfolio diversification, and maintaining adequate liquidity - The company faces currency translation risk, primarily due to certain financial assets and liabilities being denominated in currencies other than the functional currency[145](index=145&type=chunk) - A **5% appreciation/depreciation** of the RMB against the USD or HKD would have a potential impact on profit before income tax of a decrease/increase of **HKD 195.7 million**[147](index=147&type=chunk) - The company faces cash flow interest rate risk (floating rate borrowings) and fair value interest rate risk (fixed rate financial instruments)[147](index=147&type=chunk) - A **50 basis points** change in interest rates would result in a potential decrease/increase in profit before income tax of approximately **HKD 79.2 million**[152](index=152&type=chunk) - The company is exposed to credit risk, primarily from aircraft leasing services, loans to associates and joint ventures, and other financial assets[154](index=154&type=chunk) - As of June 30, 2025, current liabilities exceeded current assets by **HKD 7,697.2 million**[165](index=165&type=chunk) [Fair Value Estimation of Financial Instruments](index=59&type=section&id=Fair%20Value%20Estimation%20of%20Financial%20Instruments) The company determines the fair value of financial instruments using active market quotes or valuation techniques like discounted cash flow analysis, primarily for interest rate swaps, forward currency contracts, and financial assets at FVTPL - The company uses quoted market prices in active markets or valuation techniques (such as discounted cash flow analysis) to determine the fair value of financial instruments[172](index=172&type=chunk) - Financial assets and liabilities measured at fair value are categorized into three levels, primarily using Level 2 (observable inputs) and Level 3 (unobservable inputs)[172](index=172&type=chunk) Financial Assets and Liabilities Measured at Fair Value (as of June 30) | Item | Level 1 (thousand HKD) | Level 2 (thousand HKD) | Level 3 (thousand HKD) | Total (thousand HKD) | | :--- | :--- | :--- | :--- | :--- | | **Assets** | | | | | | Interest Rate Swaps | – | 304 | – | 304 | | Forward Currency Contracts | – | 7,252 | – | 7,252 | | Financial Assets at FVTPL | 1,191 | – | 1,483,135 | 1,484,326 | | **Liabilities** | | | | | | Interest Rate Swaps | – | 3,076 | – | 3,076 | | Forward Currency Contracts | – | 3,869 | – | 3,869 | - Financial assets measured at Level 3 fair value primarily include shareholder loans to CAG Group and Feitian II (Tianjin) and exchangeable bonds issued by International Aircraft Recycling Group[174](index=174&type=chunk) [6. Property, Plant and Equipment and Right-of-Use Assets](index=63&type=section&id=6.%20Property%2C%20Plant%20and%20Equipment%20and%20Right-of-Use%20Assets) As of June 30, 2025, the net book value of property, plant and equipment and right-of-use assets was HKD 29,072.3 million, with additions of HKD 4,753.1 million and disposals of HKD 1,452.8 million during the period Property, Plant and Equipment and Right-of-Use Assets Movement (as of June 30) | Indicator | January 1, 2025 (thousand HKD) | Additions (thousand HKD) | Disposals (thousand HKD) | Depreciation and Impairment (thousand HKD) | June 30, 2025 (thousand HKD) | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Book Value | 28,860,008 | 4,753,055 | (1,452,848) | (683,313) | 29,072,332 | - As of June 30, 2025, the net book value of aircraft was **HKD 28,393.1 million**[186](index=186&type=chunk) - As of June 30, 2025, operating lease aircraft with a net book value of **HKD 21,357.6 million** were pledged as collateral for bank and other borrowings for aircraft purchase financing and borrowings from trust schemes[186](index=186&type=chunk) - For the six months ended June 30, 2025, net aircraft impairment of **HKD 9.96 million** was recognized[186](index=186&type=chunk) [7. Investments in and Loans to Associates and Joint Ventures](index=64&type=section&id=7.%20Investments%20in%20and%20Loans%20to%20Associates%20and%20Joint%20Ventures) As of June 30, 2025, the company's net investments in and loans to associates and joint ventures were HKD 655.8 million, with cumulative expected credit loss provisions of HKD 209.6 million Investments in and Loans to Associates and Joint Ventures (as of June 30) | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Carrying Value (net of share of results) | 865,328 | 707,352 | | Cumulative Expected Credit Loss Provision for Loans to Associates and Joint Ventures | (209,575) | (215,655) | | **Total** | **655,753** | **491,697** | - For the six months ended June 30, 2025, a net reversal of expected credit loss provision of **HKD 6.8 million** was recognized[187](index=187&type=chunk) - Key associates and joint ventures include International Aircraft Recycling (investment holding), CAG (aircraft leasing), CALC Global (aircraft maintenance), Airfly I/II (Tianjin) (aircraft leasing), Feitian II (Tianjin) (aircraft leasing), PT Transnusa Aviation Mandiri (TAM) (commercial air transport services), and PT Linkaviasi Asia Indonesia (LAI) (commercial air transport services)[189](index=189&type=chunk) [8. Finance Lease Receivables – Net](index=67&type=section&id=8.%20Finance%20Lease%20Receivables%20%E2%80%93%20Net) As of June 30, 2025, net finance lease receivables were HKD 9,518.7 million, with the top five airline clients accounting for 67% and cumulative expected credit loss provisions of HKD 22.8 million Finance Lease Receivables – Net (as of June 30) | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Total Lease Receivables | 5,619,429 | 5,532,076 | | Net Investment in Leases | 9,541,476 | 9,203,965 | | Less: Cumulative Expected Credit Loss Provision | (22,757) | (18,508) | | **Finance Lease Receivables – Net** | **9,518,719** | **9,185,457** | - For the six months ended June 30, 2025, a net expected credit loss of **HKD 4.0 million** was recognized[200](index=200&type=chunk) - The top five airline clients accounted for **67%** of net finance lease receivables[201](index=201&type=chunk) [9. Financial Assets at Fair Value Through Profit or Loss](index=68&type=section&id=9.%20Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of June 30, 2025, total financial assets at fair value through profit or loss were HKD 1,484.3 million, primarily comprising shareholder loans to CAG Group and Feitian II (Tianjin), and exchangeable bonds issued by International Aircraft Recycling Financial Assets at Fair Value Through Profit or Loss (as of June 30) | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Shareholder Loans to CAG Group | 582,383 | 576,136 | | Shareholder Loans to Feitian II (Tianjin) | 46,990 | 45,945 | | Exchangeable Bonds | 850,000 | 850,000 | | Others | 4,953 | 3,995 | | **Total** | **1,484,326** | **1,476,076** | [10. Prepayments and Other Assets](index=69&type=section&id=10.%20Prepayments%20and%20Other%20Assets) As of June 30, 2025, total prepayments and other assets were HKD 727.0 million, with aircraft prepayments and related receivables at HKD 7,772.3 million, and net operating lease receivables at HKD 182.5 million Prepayments and Other Assets (as of June 30) | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | PDP and Other Prepayments and Receivables Related to Aircraft Purchases | 7,772,295 | 7,855,333 | | Operating Lease Receivables | 332,114 | 376,860 | | Less: Cumulative Expected Credit Loss Provision | (149,598) | (152,951) | | **Net Prepayments and Other Assets** | **726,988** | **683,835** | - PDPs are made according to the payment schedule in aircraft purchase agreements, with aircraft to be delivered in phases by the end of 2028[205](index=205&type=chunk) - For the six months ended June 30, 2025, a net reversal of expected credit loss provision for operating lease receivables of **HKD 4.974 million** was recognized[208](index=208&type=chunk) [11. Assets Classified as Held for Sale](index=71&type=section&id=11.%20Assets%20Classified%20as%20Held%20for%20Sale) As of June 30, 2025, the carrying value of assets classified as held for sale was HKD 4,330.2 million, a decrease from year-end 2024, primarily comprising aircraft with signed MOUs for sale Assets Classified as Held for Sale (as of June 30) | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Carrying Value of Assets Classified as Held for Sale | 4,330,242 | 5,555,238 | | Carrying Value of Borrowings Related to Assets Held for Sale | 2,054,960 | 2,707,840 | - The fair value of assets classified as held for sale is determined based on aircraft market prices, falling within Level 2 of the fair value hierarchy[211](index=211&type=chunk) - Borrowings related to assets held for sale will be repaid upon the disposal of the aircraft[211](index=211&type=chunk) [12. Share Capital](index=71&type=section&id=12.%20Share%20Capital) As of June 30, 2025, the company had 744,648,542 issued and fully paid ordinary shares with a par value of HKD 0.1 per share, totaling HKD 74.5 million, consistent with January 1, 2025 Issued and Fully Paid Ordinary Shares (as of June 30) | Indicator | June 30, 2025 | January 1, 2024 | | :--- | :--- | :--- | | Par Value per Share | HKD 0.1 | HKD 0.1 | | Number of Shares | 744,648,542 | 744,355,352 | | Share Capital (thousand HKD) | 74,465 | 74,436 | [13. Reserves](index=71&type=section&id=13.%20Reserves) As of June 30, 2025, total reserves were HKD 1,927.3 million, a decrease from January 1, 2025, primarily due to cash flow hedging losses and currency translation differences, with all unexercised Post-IPO Share Option Scheme options having lapsed Reserves Movement (as of June 30) | Indicator | January 1, 2025 (thousand HKD) | Cash Flow Hedges (thousand HKD) | Currency Translation Differences (thousand HKD) | Lapsed Share Options (thousand HKD) | June 30, 2025 (thousand HKD) | | :--- | :--- | :--- | :--- | :--- | :--- | | Total | 1,986,750 | (6,347) | (48,070) | (5,034) | 1,927,299 | Unexercised Share Options Movement (as of June 30) | Indicator | January 1, 2025 | Lapsed | June 30, 2025 | | :--- | :--- | :--- | :--- | | Number of Share Options | 16,781,071 | (16,781,071) | – | - All unexercised share options granted under the Post-IPO Share Option Scheme automatically lapsed upon the expiry of their exercise period on **April 5, 2025**[89](index=89&type=chunk) [14. Perpetual Capital Securities and Other Non-controlling Interests](index=73&type=section&id=14.%20Perpetual%20Capital%20Securities%20and%20Other%20Non-controlling%20Interests) As of June 30, 2025, total perpetual capital securities and other non-controlling interests significantly increased to HKD 1,644.2 million, driven by the issuance of RMB 500 million in perpetual capital securities by a subsidiary Perpetual Capital Securities and Other Non-controlling Interests (as of June 30) | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Perpetual Capital Securities | 1,659,376 | 1,111,899 | | Other Non-controlling Interests in Ordinary Shares | (15,217) | (13,159) | | **Total** | **1,644,159** | **1,098,740** | - On **April 28, 2025**, a subsidiary of the company further issued **RMB 500 million** in perpetual capital securities with a fixed interest rate of **2.48%**, generating net proceeds of **HKD 537.2 million**[219](index=219&type=chunk) - Perpetual capital securities have no maturity date, and their distribution payments can be deferred at the company's discretion, thus classified as equity instruments[219](index=219&type=chunk) [15. Deferred Income Tax (Assets)/Liabilities](index=74&type=section&id=15.%20Deferred%20Income%20Tax%20%28Assets%29%2FLiabilities) As of June 30, 2025, net deferred income tax liabilities were HKD 1,126.1 million, a decrease from January 1, 2025, primarily due to deferred income tax charged to profit or loss Deferred Income Tax (Assets)/Liabilities Movement (as of June 30) | Indicator | January 1, 2025 (thousand HKD) | Charged to Profit or Loss (thousand HKD) | Currency Translation Differences (thousand HKD) | June 30, 2025 (thousand HKD) | | :--- | :--- | :--- | :--- | :--- | | Total | 1,267,694 | (155,449) | 13,856 | 1,126,101 | - As of June 30, 2025, deferred income tax liabilities expected to be settled within 12 months amounted to **HKD 189.6 million**[222](index=222&type=chunk) [16. Borrowings](index=75&type=section&id=16.%20Borrowings) As of June 30, 2025, total borrowings were HKD 42,816.0 million, a slight decrease of 0.5% from year-end 2024, with HKD 11,228.4 million in undrawn borrowing facilities Borrowings Composition (as of June 30) | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Bank and Other Borrowings for Aircraft Purchase Financing | 20,008,945 | 21,537,088 | | PDP Financing | 5,688,534 | 6,294,118 | | Other Bank Borrowings | 13,227,541 | 11,021,832 | | Borrowings from Trust Schemes | 3,681,372 | 3,989,918 | | Other Borrowings | 209,584 | 203,249 | | **Total Borrowings** | **42,815,976** | **43,046,205** | - Bank and other borrowings for aircraft purchase financing are partially secured by related aircraft, shares in subsidiaries, guarantees, and pledged deposits[225](index=225&type=chunk) - PDP financing and other bank borrowings are mostly unsecured and guaranteed by the company or certain of its subsidiaries[225](index=225&type=chunk) Undrawn Borrowing Facilities (as of June 30) | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Due within one year | 3,569,739 | 2,142,453 | | Due after one year | 7,658,621 | 7,482,137 | | **Total** | **11,228,360** | **9,624,590** | [17. Medium Term Notes](index=76&type=section&id=17.%20Medium%20Term%20Notes) As of June 30, 2025, the total carrying value of medium-term notes was HKD 1,643.2 million, a slight increase from year-end 2024, including RMB 300 million and RMB 1.2 billion notes issued in 2024 Medium Term Notes (as of June 30) | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Total Carrying Value | 1,643,222 | 1,599,726 | - The company issued **RMB 300 million** (3-year, 2.75%) and **RMB 1.2 billion** (5-year, 3.3%) medium-term notes in April 2024[228](index=228&type=chunk) [18. Bonds and Commercial Papers](index=77&type=section&id=18.%20Bonds%20and%20Commercial%20Papers) As of June 30, 2025, the total carrying value of bonds and commercial papers was HKD 4,384.1 million, an increase from year-end 2024, reflecting the issuance of RMB 1.5 billion corporate bonds and repayment of RMB 1.2 billion private bonds Bonds and Commercial Papers (as of June 30) | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Total Carrying Value | 4,384,084 | 3,930,722 | - The company issued **RMB 1.5 billion** (5-year, 2.38%) corporate bonds in February 2025[231](index=231&type=chunk) - The company repaid **RMB 1.2 billion** in three-year private bonds that matured in 2025[231](index=231&type=chunk) [19. Derivative Financial Instruments](index=77&type=section&id=19.%20Derivative%20Financial%20Instruments) As of June 30, 2025, net derivative financial assets were HKD 7.6 million and net derivative financial liabilities were HKD 6.9 million, with fair value gains on forward currency contracts and fair value changes in interest rate swaps Derivative Financial Instruments (as of June 30) | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Derivative Financial Assets | 7,556 | 13,381 | | Derivative Financial Liabilities | 6,945 | 233,712 | Fair Value Changes of Derivative Financial Instruments (for the six months ended June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Recognized in Other Comprehensive Income (Interest Rate Swaps) | (6,347) | (35,156) | | Fair Value Gains/(Losses) on Forward Currency Contracts | 16,113 | (78,167) | | Fair Value Changes of Interest Rate Swaps | (6,316) | – | | Hedge Ineffectiveness | 576 | 240 | | Realized Losses on Currency Swaps | – | (13,932) | - The company has **two outstanding forward currency contracts** with a notional amount of **RMB 600 million** to mitigate RMB exchange rate risk[236](index=236&type=chunk) - The company has **11 outstanding interest rate swap contracts** to convert floating interest rates to fixed rates, managing unmatched interest rate exposure[236](index=236&type=chunk) [20. Other Liabilities and Accruals](index=79&type=section&id=20.%20Other%20Liabilities%20and%20Accruals) As of June 30, 2025, total other liabilities and accruals were HKD 2,313.5 million, a slight decrease from year-end 2024, primarily including deposits, professional fees, and dividends payable Other Liabilities and Accruals (as of June 30) | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Deposits and Funds Received for Leases and Aircraft Projects | 1,623,753 | 1,715,060 | | Consultants and Professional Fees Payable | 81,923 | 80,852 | | VAT and Other Taxes | 154,559 | 186,091 | | Operating Lease Rentals Received in Advance | 180,628 | 212,290 | | Dividends Payable to Ordinary Shareholders | 135,458 | – | | **Total** | **2,313,452** | **2,371,674** | [21. Lease Income and Segment Information](index=79&type=section&id=21.%20Lease%20Income%20and%20Segment%20Information) For the six months ended June 30, 2025, total lease income was HKD 1,908.1 million, with the top five airline clients contributing 50% and other clients contributing the remaining 50% Lease Income by Customer Category (for the six months ended June 30) | Customer Category | 2025 (thousand HKD) | Share (%) | 2024 (thousand HKD) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Airline – A | 455,439 | 24% | 596,768 | 27% | | Airline – B | 209,716 | 11% | 296,774 | 13% | | Airline – C | 118,094 | 6% | 145,591 | 7% | | Airline – D | 90,411 | 5% | 90,720 | 4% | | Airline – E | 84,871 | 4% | 22,751 | 1% | | Others | 949,581 | 50% | 1,069,857 | 48% | | **Total** | **1,908,112** | **100%** | **2,222,461** | **100%** | [22. Net Income from Aircraft Trading and Aircraft Parts Trading](index=80&type=section&id=22.%20Net%20Income%20from%20Aircraft%20Trading%20and%20Aircraft%20Parts%20Trading) For the six months ended June 30, 2025, net income from aircraft trading and aircraft parts trading significantly increased to HKD 294.7 million, primarily due to the sale of 19 aircraft and two engines Net Income from Aircraft Trading and Aircraft Parts Trading (for the six months ended June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Aircraft Trading | 295,217 | 25,256 | | Aircraft Parts Trading | (538) | 171 | | **Total** | **294,679** | **25,427** | - Net gains from aircraft trading include the sale of **19 aircraft** and **two engines** to third parties, compared to the sale of **5 aircraft** in the same period last year[242](index=242&type=chunk) [23. Other Income](index=80&type=section&id=23.%20Other%20Income) For the six months ended June 30, 2025, total other income was HKD 202.4 million, a decrease from the prior period, mainly due to reduced government grants Other Income Breakdown (for the six months ended June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Government Grants | 66,624 | 113,125 | | Interest Income from Loans to Associates and Joint Ventures | 46,012 | 54,986 | | Bank Interest Income | 62,102 | 65,277 | | Asset Management Service Fees from CAG Group | 4,282 | 9,244 | | Others | 23,414 | 37,576 | | **Total** | **202,434** | **280,208** | - Government grants refer to subsidies and grants received from the mainland Chinese government as preferential support for the development of the aircraft leasing industry[244](index=244&type=chunk) [24. Interest Expense](index=81&type=section&id=24.%20Interest%20Expense) For the six months ended June 30, 2025, total interest expense was HKD 1,104.4 million, a decrease from the prior period, primarily due to lower interest expense on borrowings and reduced capitalized interest on qualifying assets Interest Expense (for the six months ended June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Interest Expense on Borrowings | 1,201,989 | 1,462,725 | | Settlement of Interest Rate Swaps Designated a

（於開曼群島註冊成立的有限公司） 股份代號：2197 目錄表 | 2 | 公司資料 | | --- | --- | | 4 | 財務摘要 | | 6 | 業務摘要 | | 7 | 管理層討論與分析 | | 19 | 其他資料 | | 42 | 中期簡明綜合損益表 | | 43 | 中期簡明綜合全面收益表 | | 44 | 中期簡明綜合財務狀況表 | | 46 | 中期簡明綜合權益變動表 | | 48 | 中期簡明綜合現金流量表 | | 50 | 中期簡明綜合財務資料附註 | | 77 | 釋義 | 公司資料 董事會 執行董事 梁朋博士 （董事長） 梁果先生 2025中期 報告 Clover Biopharmaceuticals, Ltd. 三 葉 草 生 物 製 藥 有 限 公 司 非執行董事 王曉東博士 Donna Marie AMBROSINO博士 Ralf Leo CLEMENS博士 （於2025年6月19日退任） 獨立非執行董事 吳曉濱博士 廖想先生 Jeffrey FARROW先生 Thomas LEGGETT先生 審核委員會 Thomas LEGGETT先生 （主席） 廖想先生 Jeffrey F ...

中期報告 2025 目 錄 | 頁次 | | | --- | --- | | 2 | 中期財務摘要 | | 3 | 管理層討論及分析 | | 6 | 股息 | | 7 | 權益披露 | | 9 | 企業管治 | | 10 | 其他資料 | | 11 | 簡明綜合財務報表審閱報告 | | 12 | 簡明綜合損益表 | | 13 | 簡明綜合損益及其他全面收益表 | | 14 | 簡明綜合財務狀況表 | | 16 | 簡明綜合權益變動表 | | 17 | 簡明綜合現金流量表 | | 18 | 簡明綜合財務報表附註 | | 36 | 公司資料 | 中期財務摘要 利基控股有限公司（「本公司」）董事會（「董事會」）宣佈本公司及其附屬公司（「本集團」）截至二零二五年六月三十日止六個月之 中期業績。 財務表現摘要 | 每股權益**增加百分比 | 1% | | --- | --- | | 權益 | 2,678,000,000港元 | | 每股權益 | 2.16港元 | | 集團收入 | 6,900,000,000港元 | | 本公司擁有人應佔溢利 | 179,000,000港元 | | 每股中期股息 | 4 港仙 | | * ...

Economic Growth and Development - In the first half of 2025, China's economy achieved a steady growth rate of 5.3%, with a focus on enhancing green and low-carbon products and services [10]. - The government is promoting a "gas cost plus reasonable return" pricing model to enhance the sustainable development capacity of the urban gas sector [17]. - The state aims to achieve significant progress in nationwide urban digital transformation by 2027 and complete breakthroughs by 2030, fostering globally competitive modern cities [18]. - The ongoing urban renewal strategy aims to create livable, resilient, and smart cities, with a phased target set for 2030 [14]. - The company anticipates a steady economic recovery in China in the second half of 2025, supported by effective policy measures [79][80]. - Challenges remain in the global trade landscape and domestic consumption confidence, which require ongoing support [80]. - The overall resilience of China's economy is expected to improve, providing a solid foundation for growth prospects [79][80]. Company Performance and Financials - The Group's revenue for the six months ended June 30, 2025, was RMB 4,241.575 million, representing a year-on-year increase of 10.6% compared to RMB 3,834.807 million in the same period last year [31]. - Gross profit decreased by 5.7% to RMB 512.572 million from RMB 543.347 million, resulting in an overall gross profit margin of 12.1% [31]. - Profit attributable to owners of the Company was RMB 120.287 million, down 9.0% from RMB 132.210 million in the previous year [31]. - Basic earnings per share decreased by 9.0% to RMB 12.41 cents from RMB 13.64 cents [31]. - The Group's revenue from gas retail business remained stable at RMB 2,562 million, unchanged from the same period last year [34]. - Revenue from the gas wholesale business reached RMB 1,078 million, reflecting a year-on-year increase of 68.2% compared to RMB 641 million last year [42]. - Adjusted core profit was RMB 129 million, down 17.7% from RMB 157 million in the same period last year [55]. - The company reported a profit for the period of RMB 129,793,000, a decline of 9.5% compared to RMB 143,413,000 in 2024 [141]. Customer and Market Dynamics - New pipeline gas customers decreased by 25.8% to 95,515, with city gas residential customers down by 25.7% to 94,150 [31]. - Total pipeline gas customers increased by 3.6% to 5,933,308, with city gas residential customers rising by 5.4% to 3,920,917 [31]. - The demand for higher-quality green and low-carbon products is significantly increasing, reflecting a shift in consumer preferences [10]. - The Group's vision emphasizes commitment to people's livelihood and the development of clean energy to improve living environments [20]. Strategic Initiatives and Future Plans - The Group is transitioning from a traditional gas supplier to an energy service provider, focusing on high-quality development and integrated energy services [20]. - The Group's strategic objectives include developing value-added services that create synergies with its core natural gas business [20]. - The Group plans to adjust residential gas prices in its operating areas to improve comprehensive spreads, while implementing refined management to reduce transmission errors [85]. - The Group will promote the standardization of its beauty decoration business and the development of its insurance business to expand its service offerings [86]. - The Group aims to strengthen emerging industries, particularly in green low-carbon and smart IoT sectors [80]. - The Group will invest in technology, optimize management, and upgrade services to support urban development with greener and more efficient energy solutions [89]. Shareholder Information and Corporate Governance - The Group declared an interim dividend of RMB 4.60 cents per share for the six months ended 30 June 2025 [129]. - The Company has adopted the Model Code for Securities Transactions by Directors and confirmed compliance during the reporting period [135]. - The Audit Committee, consisting of three independent non-executive Directors, reviewed the unaudited consolidated financial statements for the reporting period [139]. - The Company recognizes the importance of compliance with corporate governance codes and will consider appointing a separate chief executive officer in the future [138]. Assets and Liabilities - Total assets increased to RMB 16,191,614 thousand as of June 30, 2025, up from RMB 15,910,053 thousand at the end of 2024, representing a growth of 1.76% [143]. - Total liabilities increased to RMB 9,919,978 thousand, up from RMB 9,647,570 thousand, reflecting a growth of 2.81% [146]. - Non-current liabilities rose significantly to RMB 6,003,708 thousand, compared to RMB 5,152,757 thousand, marking an increase of 16.49% [146]. - Cash and cash equivalents increased to RMB 1,184,775 thousand from RMB 1,103,037 thousand, a rise of 7.36% [146]. Employee and Training Initiatives - The Group employed 2,990 employees, with a training coverage rate of 100% for all employees [66]. - The Group will focus on talent development through practical training and capability matching to ensure alignment with strategic transformation [84].

[Company Information](index=3&type=section&id=Company%20Information) This section provides fundamental information about Nanshan Aluminium International Holdings Limited, including its name, stock code, listing date, board members, committees, company secretary, investor relations, registered office, principal places of business, website, auditor, legal and compliance advisors, share registrar, and principal bankers [Company Name, Stock Code and Listing Date](index=3&type=section&id=Company%20Name%2C%20Stock%20Code%20and%20Listing%20Date) This section lists the basic information of Nanshan Aluminium International Holdings Limited, including its company name, stock code 2610.HK, and listing date on March 25, 2025 - Company Name: Nanshan Aluminium International Holdings Limited[3](index=3&type=chunk) - Stock Code: **2610.HK**[3](index=3&type=chunk) - Listing Date: **March 25, 2025**[3](index=3&type=chunk) [Board Members](index=3&type=section&id=Board%20Members) This section details the composition of the company's board of directors, including the names and positions of executive, non-executive, and independent non-executive directors, with Mr. Hao Weisong serving as Chairman and CEO - Executive Directors: Mr. Hao Weisong (Chairman and Chief Executive Officer), Mr. Wang Shisan[3](index=3&type=chunk) - Non-Executive Directors: Ms. Wang Yanli, Mr. Loo Tai Choong, Mr. George Santos[3](index=3&type=chunk) - Independent Non-Executive Directors: Mr. Wen Xianjun, Mr. Zhang Guangda, Ms. Dong Meihua (all appointed on March 10, 2025)[3](index=3&type=chunk) [Committees](index=3&type=section&id=Committees) This section clarifies the composition and chairpersons of the company's Audit, Remuneration, and Nomination Committees, ensuring a sound corporate governance structure - Chairman of the Audit Committee: Mr. Zhang Guangda[3](index=3&type=chunk) - Chairman of the Remuneration Committee: Ms. Dong Meihua[3](index=3&type=chunk) - Chairman of the Nomination Committee: Mr. Hao Weisong[3](index=3&type=chunk) [Company Secretary and Investor Relations](index=3&type=section&id=Company%20Secretary%20and%20Investor%20Relations) This section provides the name of the Company Secretary and contact information for investor relations, facilitating communication with shareholders and investors - Company Secretary: Mr. Leung Ka Hong[3](index=3&type=chunk) - Investor Relations Contact: IR@nanshanintl.com[3](index=3&type=chunk) [Registered Office and Principal Places of Business](index=3&type=section&id=Registered%20Office%20and%20Principal%20Places%20of%20Business) This section lists the company's registered office in the Cayman Islands and details its principal places of business in Indonesia and Hong Kong - Registered Office: Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman, KY1-1111 Cayman Islands[3](index=3&type=chunk) - Principal Place of Business in Indonesia: The Special Economic Zone of Galang Batang village of Gunung Kijang, Gunung Kijang District Bintan Regency, Riau Islands Province 29153 Indonesia[3](index=3&type=chunk) - Principal Place of Business in Hong Kong: Room 1101, 11th Floor, Lippo Centre Tower One, 89 Queensway, Hong Kong[4](index=4&type=chunk) [Company Website and Auditor](index=4&type=section&id=Company%20Website%20and%20Auditor) This section provides the company's official website address and information about its auditor - Company Website: www.nanshanintl.com[4](index=4&type=chunk) - Auditor: KPMG[4](index=4&type=chunk) [Legal and Compliance Advisors](index=4&type=section&id=Legal%20and%20Compliance%20Advisors) This section lists the company's legal and compliance advisors in Hong Kong, ensuring its operations comply with relevant laws and regulations - Hong Kong Legal Advisor: Stevenson, Wong & Co. (in association with Jingtian & Gongcheng (Hong Kong) LLP)[4](index=4&type=chunk) - Compliance Advisor: UOB Kay Hian (Hong Kong) Limited[4](index=4&type=chunk) [Share Registrar](index=4&type=section&id=Share%20Registrar) This section provides detailed information about the company's principal share registrar and Hong Kong share registrar - Principal Share Registrar: Conyers Trust Company (Cayman) Limited[4](index=4&type=chunk) - Hong Kong Share Registrar: Tricor Investor Services Limited[4](index=4&type=chunk) [Principal Bankers](index=4&type=section&id=Principal%20Bankers) This section lists the company's principal bankers, reflecting its main financial partners - Principal bankers include: PT. Bank Mandiri (Persero) Tbk, Industrial and Commercial Bank of China (Asia) Limited, Ping An Bank Co., Ltd., DBS Bank (Hong Kong) Limited, United Overseas Bank Limited[4](index=4&type=chunk) [Definitions](index=5&type=section&id=Definitions) This section provides definitions for key terms and abbreviations used in the interim report to ensure readers have a clear understanding of the content [Management Discussion and Analysis](index=7&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the company's business, future outlook, and a detailed financial review for the period [Business Overview](index=7&type=section&id=Business%20Overview) The Group primarily engages in the production and sale of metallurgical-grade alumina, with excellent product quality and strong demand. During the reporting period, the company successfully listed on the Main Board of the Stock Exchange, became a constituent of the Hang Seng Composite Index, commenced production of the first million-ton annual capacity of its new alumina project, and declared its first interim dividend post-listing - The Group primarily engages in the production and sale of metallurgical-grade alumina, with product quality exceeding the GB/T 24487–2022 standard for AO-1 grade[11](index=11&type=chunk) - The company completed its initial public offering on the Main Board of the Stock Exchange on **March 25, 2025**, and will become a constituent of the Hang Seng Composite Index from **September 8, 2025**[11](index=11&type=chunk) - The first **one million tons** of annual capacity of the new alumina production project has commenced operation, bringing the Group's designed annual alumina production capacity to **three million tons**, making it one of the largest alumina manufacturers in Southeast Asia[12](index=12&type=chunk) - The Board resolved to declare the first interim dividend after listing[12](index=12&type=chunk) - Profit attributable to shareholders for the six months ended June 30, 2025, was approximately **US$248.2 million**, an increase of approximately **124.2%** compared to approximately US$110.7 million in the same period last year[13](index=13&type=chunk) [Outlook and Plans](index=8&type=section&id=Outlook%20and%20Plans) The company plans to increase its designed annual alumina production capacity to four million tons, expand its deep-water port for improved logistics, and actively seek upstream business opportunities, while leveraging its listing advantages to enhance transparency, improve corporate governance, and pursue sustainable development - Plans to further increase the designed annual alumina production capacity to **four million tons** to meet market demand and achieve economies of scale[14](index=14&type=chunk) - Expansion of the deep-water port, including the addition of a **70,000-ton berth** and supporting facilities, to enhance logistics efficiency[14](index=14&type=chunk) - Actively seeking opportunities in upstream business areas and leveraging the advantages of its Hong Kong listing to drive medium to long-term development[14](index=14&type=chunk) [Financial Review](index=8&type=section&id=Financial%20Review) This section provides a detailed financial review for the six months ended June 30, 2025, covering revenue, gross profit, administrative expenses, income tax, profit for the period, earnings per share, interim dividend, liquidity, employee and remuneration policies, pledge of assets, treasury policy, gearing ratio, significant investments, future plans, major acquisitions and disposals, foreign exchange risk, contingent liabilities, and post-reporting period events [Revenue](index=8&type=section&id=Revenue) For the six months ended June 30, 2025, the company's revenue was approximately US$596.8 million, a year-on-year increase of 41.0%, primarily due to higher average selling prices. Alumina sales volume slightly increased by 3.0%, while the average selling price rose by 36.9% year-on-year Revenue and Sales Volume Data | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue (million USD) | 596.8 | 423.3 | 173.5 | 41.0% | | Alumina Sales Volume (tons) | 1,127,000 | 1,094,000 | 33,000 | 3.0% | | Average Selling Price (USD/ton) | 529 | 387 | 142 | 36.9% | [Gross Profit and Gross Margin](index=8&type=section&id=Gross%20Profit%20and%20Gross%20Margin) For the six months ended June 30, 2025, the Group's gross profit was approximately US$303.9 million, with a gross margin of approximately 50.9%, representing a year-on-year increase of 70.1%, mainly due to the average selling price of alumina rising more than the cost of sales Gross Profit and Gross Margin Data | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Gross Profit (million USD) | 303.9 | 178.7 | 125.2 | 70.1% | | Gross Margin (%) | 50.9 | 42.2 | 8.7 percentage points | - | [Net Other Income](index=8&type=section&id=Net%20Other%20Income) For the six months ended June 30, 2025, net other income was approximately US$8.2 million, a year-on-year decrease of 26.8%, primarily due to a decrease in net foreign exchange gains, partially offset by a reduction in losses from forward foreign exchange contracts Net Other Income Data | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Net Other Income (million USD) | 8.2 | 11.1 | (2.9) | (26.8)% | - The decrease was primarily due to a decrease in net foreign exchange gains, partially offset by a reduction in losses from forward foreign exchange contracts measured at fair value through profit or loss[17](index=17&type=chunk) [Administrative Expenses](index=9&type=section&id=Administrative%20Expenses) For the six months ended June 30, 2025, administrative expenses were approximately US$13.4 million, a year-on-year increase of 5.6%, mainly attributable to expenses related to the listing. Administrative expenses excluding listing expenses accounted for 2.1% of total revenue Administrative Expenses Data | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Administrative Expenses (million USD) | 13.4 | 12.7 | 0.7 | 5.6% | | Administrative Expenses (excluding listing expenses) as % of total revenue | 2.1% | 2.7% | (0.6) percentage points | - | - Administrative expenses increase primarily attributable to expenses related to the listing activities[19](index=19&type=chunk) [Income Tax Expense](index=9&type=section&id=Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense was approximately US$43.5 million, a significant year-on-year increase of 182.7%, mainly due to increased top-up tax risk under the Pillar Two Model Rules Income Tax Expense Data | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Income Tax Expense (million USD) | 43.5 | 15.4 | 28.1 | 182.7% | - The increase in income tax expense was primarily due to an increase in top-up tax risk of approximately **US$39.0 million** arising from the Pillar Two Model Rules[20](index=20&type=chunk) [Profit for the Period and Earnings Per Share](index=9&type=section&id=Profit%20for%20the%20Period%20and%20Earnings%20Per%20Share) For the six months ended June 30, 2025, profit attributable to shareholders was approximately US$248.2 million, a year-on-year increase of 124.2%, with basic earnings per share rising to US$0.46, mainly driven by increased sales volume and improved gross margin Profit for the Period and Earnings Per Share Data | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Profit Attributable to Shareholders (million USD) | 248.2 | 110.7 | 137.5 | 124.2% | | Basic Earnings Per Share (USD) | 0.46 | 0.30 | 0.16 | 53.3% | - The increase in net profit was mainly due to the increase in sales volume and improvement in gross margin[21](index=21&type=chunk) [Interim Dividend](index=9&type=section&id=Interim%20Dividend) The Board resolved to declare an interim dividend of HK$0.65 per share for the six months ended June 30, 2025, marking the company's first interim dividend since listing - The Board declared an interim dividend of **HK$0.65** (approximately US$0.08) per share for the six months ended June 30, 2025[23](index=23&type=chunk)[123](index=123&type=chunk) - The dividend will be paid on or about **Friday, October 17, 2025**, to shareholders whose names appear on the company's register of members on **Friday, September 26, 2025**[24](index=24&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=9&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) As of June 30, 2025, the Group had cash and cash equivalents of approximately US$527.2 million, net current assets of approximately US$603.0 million, total equity of approximately US$1,839.6 million, and no borrowings, indicating a robust liquidity and financial position Liquidity and Financial Resources | Indicator | As of June 30, 2025 | As of December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents (million USD) | 527.2 | 454.2 | 73.0 | | Net Current Assets (million USD) | 603.0 | 248.2 | 354.8 | | Total Equity (million USD) | 1,839.6 | 1,294.4 | 545.2 | | Borrowings (million USD) | Zero | Zero | Zero | [Employees and Remuneration Policy](index=10&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group employed 3,774 full-time employees, with employee benefit expenses of approximately US$26.8 million. The company implements performance incentives, provides training and benefits, and grants share options under its share option scheme to retain talent Employee and Remuneration Data | Indicator | As of June 30, 2025 | As of December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Number of Full-time Employees | 3,774 | 3,282 | 492 | | Employee Benefit Expenses (million USD) | 26.8 | 16.4 | 10.4 | - The company implements performance incentive measures, including monthly performance bonuses, and provides induction, language, and specialized training[26](index=26&type=chunk) - Eligible employees and/or directors may be granted share options under the Share Option Scheme[26](index=26&type=chunk) [Pledge of Assets](index=10&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group had no pledge of assets, indicating the unencumbered nature of its assets - As of **June 30, 2025**, the Group had no pledge of assets[27](index=27&type=chunk) [Treasury Policy](index=10&type=section&id=Treasury%20Policy) The Board closely monitors the Group's liquidity position to ensure its liquidity structure of assets, liabilities, and other commitments can meet funding requirements - The Board closely monitors the Group's liquidity position to manage liquidity risk[28](index=28&type=chunk) [Gearing Ratio](index=10&type=section&id=Gearing%20Ratio) As of June 30, 2025, and December 31, 2024, the Group had no borrowings, resulting in a gearing ratio of zero - As of **December 31, 2024**, and **June 30, 2025**, the Group had no borrowings or other debt financing obligations, resulting in a gearing ratio of zero[29](index=29&type=chunk) [Significant Investments](index=10&type=section&id=Significant%20Investments) During the reporting period, the Group had no significant investments (including those representing 5% or more of the Group's total assets) - During the reporting period, the Group had no significant investments[30](index=30&type=chunk) [Future Plans for Material Investments or Capital Assets](index=10&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) Capital expenditure for the new alumina production project will be funded by a combination of internal resources, net proceeds from the global offering, and cash inflows from operating activities. Apart from what has been disclosed, there are no other future plans for material investments or capital assets during the reporting period - Capital expenditure and capital commitments for the construction of the new alumina production project will be funded by a combination of internal resources, net proceeds from the global offering, and cash inflows from operating activities[31](index=31&type=chunk) [Major Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=10&type=section&id=Major%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) During the review reporting period, the Group did not undertake any major acquisitions or disposals of subsidiaries, associates, or joint ventures - During the review reporting period, there were no major acquisitions or disposals of subsidiaries, associates, or joint ventures[32](index=32&type=chunk) [Foreign Exchange Risk](index=11&type=section&id=Foreign%20Exchange%20Risk) The Group faces foreign exchange risk related to Indonesian Rupiah, US Dollar, Hong Kong Dollar, and Renminbi, as most revenue is denominated in US Dollars while costs are in Indonesian Rupiah and Renminbi. During the reporting period, the net exchange result turned from a gain to a loss, mainly due to the depreciation of the US Dollar against the Indonesian Rupiah - The Group is exposed to foreign exchange risk arising from currency risk, primarily related to Indonesian Rupiah, US Dollar, Hong Kong Dollar, and Renminbi[34](index=34&type=chunk) Net Exchange Result | Indicator | Six Months Ended June 30, 2025 | Same Period Last Year | Change | | :--- | :--- | :--- | :--- | | Net Exchange Result (million USD) | Loss of approximately 0.9 | Gain of approximately 10.9 | Turned to loss | - The change in exchange result was mainly due to the depreciation of the US Dollar against the Indonesian Rupiah as of **June 30, 2025**, compared to **June 30, 2024**, leading to unrealized exchange losses[34](index=34&type=chunk) [Contingent Liabilities](index=11&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of **June 30, 2025**, the Group had no significant contingent liabilities[35](index=35&type=chunk) [Events After Reporting Period](index=11&type=section&id=Events%20After%20Reporting%20Period) On July 24, 2025, the company granted a total of 26,170,000 share options to 155 eligible participants under the share option scheme, with an exercise price of HK$39.60 per share - On **July 24, 2025**, the company granted a total of **26,170,000** share options to **155** eligible participants[36](index=36&type=chunk) - The exercise price of the share options is **HK$39.60** per share[36](index=36&type=chunk) - A total of **32,653,530 shares** remain available for future grants under the scheme mandate limit of the Share Option Scheme[36](index=36&type=chunk) [Other Information](index=12&type=section&id=Other%20Information) This section covers corporate governance, securities dealing code, audit committee, share transactions, directors' interests, major shareholders, share option scheme, share capital structure, use of global offering proceeds, changes in directors' information, and public float [Compliance with Corporate Governance Code](index=12&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) From the listing date to June 30, 2025, the company complied with the Corporate Governance Code, although the roles of Chairman and CEO are combined by Mr. Hao Weisong, which the Board believes benefits the Group's stable development, and will consider separating the roles when appropriate - The company's Chief Executive Officer, Mr. Hao Weisong, also serves as the Chairman of the Board, which deviates from Code Provision C.2.1 of the Corporate Governance Code[39](index=39&type=chunk) - The Board believes that Mr. Hao's dual role strengthens the Group's continuous and stable leadership, and will continue to review and consider separating the roles at an appropriate time[39](index=39&type=chunk) [Securities Dealing Code](index=12&type=section&id=Securities%20Dealing%20Code) The company has adopted a securities dealing code no less stringent than the Listing Rules' Model Code and regularly reminds directors of blackout period restrictions. All directors confirmed compliance with the Model Code - The company has adopted a securities dealing code for directors and employees, the terms of which are no less stringent than the Model Code for Securities Transactions by Directors of Listed Issuers in Appendix C3 to the Listing Rules[40](index=40&type=chunk) - Following specific enquiries, all directors confirmed compliance with the Model Code from the listing date up to the date of this interim report[40](index=40&type=chunk) [Audit Committee](index=12&type=section&id=Audit%20Committee) The Audit Committee, composed of two independent non-executive directors and one non-executive director, is responsible for reviewing and overseeing financial reporting processes and internal controls. The committee has reviewed the interim results and financial statements, deeming them compliant with relevant accounting standards and requirements - The Audit Committee comprises Mr. Zhang Guangda (Chairman), Ms. Dong Meihua (Independent Non-executive Director), and Ms. Wang Yanli (Non-executive Director)[41](index=41&type=chunk) - The Audit Committee convened a meeting on **August 28, 2025**, to review the Group's interim results and interim financial statements for the reporting period, concluding that they comply with relevant accounting standards and requirements[41](index=41&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=12&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) From the listing date to June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - From the listing date up to **June 30, 2025**, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[42](index=42&type=chunk) [Directors' Interests in Significant Transactions, Arrangements or Contracts](index=12&type=section&id=Directors%27%20Interests%20in%20Significant%20Transactions%2C%20Arrangements%20or%20Contracts) During the reporting period, no director had a direct or indirect material interest in any transaction, arrangement, or contract entered into by the company, its subsidiaries, or fellow subsidiaries that significantly affected the Group's business - During the reporting period, no director had a direct or indirect material interest in any transaction, arrangement, or contract entered into by the company, its subsidiaries, or fellow subsidiaries that significantly affected the Group's business[43](index=43&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company or its Associated Corporations](index=13&type=section&id=Directors%27%20and%20Chief%20Executive%27s%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20or%20its%20Associated%20Corporations) As of June 30, 2025, Mr. George Santos held a long position of 3.16% of the company's shares through controlled corporations. Other than this, no other directors or chief executives had disclosable interests or short positions Directors' and Chief Executive's Long Positions in Shares | Name of Director/Chief Executive | Capacity/Nature of Interest | Number and Class of Shares | Percentage of Interest in the Company | | :--- | :--- | :--- | :--- | | Mr. George Santos | Interest in controlled corporation | 18,602,865 shares (L) | 3.16% | - Mr. George Santos is deemed to be interested in the shares held by Redstone Alumina International Pte. Ltd., a company wholly owned by him[47](index=47&type=chunk) [Directors' Rights to Acquire Shares or Debentures](index=13&type=section&id=Directors%27%20Rights%20to%20Acquire%20Shares%20or%20Debentures) No director, their spouse, or children under 18 years of age were granted any rights to subscribe for equity or debt securities of the company or any of its associated corporations, nor did they exercise any such rights during the reporting period - No director, their spouse, or children under the age of 18 were granted any rights to subscribe for equity or debt securities of the company or any of its associated corporations, nor did they exercise any such rights during the reporting period[46](index=46&type=chunk) [Major Shareholders' Interests and Short Positions in Shares and Underlying Shares of the Company](index=14&type=section&id=Major%20Shareholders%27%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) As of June 30, 2025, Nanshan Village Residents' Committee and its associated parties (including Mr. Song Jianbo, Ms. Sui Yongqing, Nanshan Group, Yili Electric Power, Nanshan Aluminium, NAS, NAIHL) collectively held a long position of 59.96% of the company's shares. Mr. Koon Poh Keong and his associated parties (including Ms. Khoo Ee Pheng, Paul Koon Foundation, Paul Koon Pte. Ltd., KPK Holdings (L) Ltd., Alpha Milestone Sdn. Bhd., Press Metal, PMIRHK) collectively held a long position of 21.71% of the company's shares Major Shareholders' Long Positions in Shares | Name of Major Shareholder | Capacity/Nature of Interest | Number and Class of Shares | Percentage of Interest in the Company | | :--- | :--- | :--- | :--- | | Nanshan Village Residents' Committee | Interest in controlled corporation | 353,454,455 shares (L) | 59.96% | | Mr. Song Jianbo | Interest in controlled corporation | 353,454,455 shares (L) | 59.96% | | Ms. Sui Yongqing | Spouse's interest | 353,454,455 shares (L) | 59.96% | | Nanshan Group | Interest in controlled corporation | 353,454,455 shares (L) | 59.96% | | Yili Electric Power | Interest in controlled corporation | 353,454,455 shares (L) | 59.96% | | Nanshan Aluminium | Interest in controlled corporation | 353,454,455 shares (L) | 59.96% | | NAS | Interest in controlled corporation | 353,454,455 shares (L) | 59.96% | | NAIHL | Beneficial owner | 353,454,455 shares (L) | 59.96% | | Mr. Koon Poh Keong | Interest in controlled corporation | 127,942,680 shares (L) | 21.71% | | Ms. Khoo Ee Pheng | Spouse's interest | 127,942,680 shares (L) | 21.71% | | Paul Koon Foundation | Interest in controlled corporation | 127,942,680 shares (L) | 21.71% | | Paul Koon Pte. Ltd. | Interest in controlled corporation | 127,942,680 shares (L) | 21.71% | | KPK Holdings (L) Ltd. | Interest in controlled corporation | 127,942,680 shares (L) | 21.71% | | Alpha Milestone Sdn. Bhd. | Interest in controlled corporation | 127,942,680 shares (L) | 21.71% | | Press Metal | Interest in controlled corporation | 127,942,680 shares (L) | 21.71% | | PMIRHK | Beneficial owner | 127,942,680 shares (L) | 21.71% | [Share Option Scheme](index=15&type=section&id=Share%20Option%20Scheme) The company adopted a share option scheme on March 10, 2025, to incentivize participants who contribute to the Group. As of June 30, 2025, 58,823,530 share options were available for grant under the scheme, but no options were outstanding, granted, exercised, cancelled, or lapsed - The Share Option Scheme was adopted on **March 10, 2025**, to incentivize and reward participants who contribute to the Group[51](index=51&type=chunk) - As of **June 30, 2025**, the number of share options available for grant under the Share Option Scheme was **58,823,530**[52](index=52&type=chunk) - During the period from the listing date up to **June 30, 2025**, no share options were outstanding, granted, agreed to be granted, exercised, cancelled, or lapsed under the Share Option Scheme[52](index=52&type=chunk) [Share Capital Structure and Global Offering](index=16&type=section&id=Share%20Capital%20Structure%20and%20Global%20Offering) The company completed a share split on March 10, 2025, increasing issued shares to 500,000,000. Subsequently, it listed on March 25, 2025, with a global offering of 88,235,300 shares at HK$26.60 per share. On April 22, 2025, the over-allotment option was partially exercised, involving 1,199,900 shares, increasing the total issued shares to 589,435,200 - On **March 10, 2025**, following the completion of the company's share split, the number of issued shares increased to **500,000,000**[56](index=56&type=chunk) - On **March 25, 2025**, the company was listed on the Main Board of the Stock Exchange, with a global offering of **88,235,300 shares** at an offer price of **HK$26.60** per share[56](index=56&type=chunk) - On **April 22, 2025**, the over-allotment option was partially exercised, involving **1,199,900 shares**, increasing the total number of issued shares of the company to **589,435,200**[56](index=56&type=chunk) [Use of Proceeds from Global Offering](index=16&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering) The net proceeds from the global offering, approximately HK$2,261.8 million, are primarily allocated to the development and construction of the new alumina production project (90%) and general working capital (10%). As of June 30, 2025, approximately HK$567.3 million has been utilized, mainly for the construction of new alumina production facilities - The net proceeds from the global offering were approximately **HK$2,261.8 million**[58](index=58&type=chunk) Details of Use of Net Proceeds from Global Offering | Use of Net Proceeds | Percentage of Net Proceeds | Net Proceeds (approx., million HKD) | Net Proceeds Utilized from Listing Date to June 30, 2025 (approx., million HKD) | Remaining Net Proceeds as of June 30, 2025 (approx., million HKD) | Expected Timeline for Full Utilization of Net Proceeds | | :--- | :--- | :--- | :--- | :--- | :--- | | Development and construction of new alumina production project | 90.0% | 2,035.6 | 552.2 | 1,483.4 | Before December 31, 2028 | | (i) For construction of related alumina production facilities with a designed capacity of the second one million tons | 53.4% | 1,207.8 | 292.2 | 915.6 | Before December 31, 2028 | | (ii) For construction of an additional 70,000-ton berth and supporting facilities within the deep-water port | 14.7% | 332.4 | 160.2 | 172.2 | Before December 31, 2028 | | (iii) For expansion of an additional 700 million cubic meters coal-to-gas plant | 12.9% | 291.8 | 62.0 | 229.8 | Before December 31, 2028 | | (iv) For construction and upgrade of auxiliary facilities to support related alumina production facilities | 9.0% | 203.6 | 37.8 | 165.8 | Before December 31, 2028 | | General working capital | 10.0% | 226.2 | 15.1 | 211.1 | Before December 31, 2028 | | **Total** | **100.0%** | **2,261.8** | **567.3** | **1,694.5** | | - The majority of the net proceeds are expected to be utilized in **2025** and **2026**, corresponding to the accelerated completion timeline of the new alumina production project[61](index=61&type=chunk) [Changes in Directors' Information](index=17&type=section&id=Changes%20in%20Directors%27%20Information) There have been no other changes in the company's directors and chief executive from the listing date up to the latest practicable date - There have been no other changes in the company's directors and chief executive from the listing date up to the latest practicable date[63](index=63&type=chunk) [Public Float](index=17&type=section&id=Public%20Float) As of the date of this interim report, the company has maintained a sufficient public float of its issued shares as required by the Listing Rules - As of the date of this interim report, the company has maintained a sufficient public float of its issued shares as required by the Listing Rules[64](index=64&type=chunk) [Independent Review Report](index=18&type=section&id=Independent%20Review%20Report) KPMG has reviewed the company's interim financial report in accordance with Hong Kong Standard on Review Engagements 2410 and found no matters that lead them to believe the report is not prepared in all material respects in accordance with Hong Kong Accounting Standard 34 - KPMG has reviewed the company's interim financial report and found no matters that lead them to believe the report is not prepared in all material respects in accordance with Hong Kong Accounting Standard 34[69](index=69&type=chunk) [Consolidated Statement of Profit or Loss](index=19&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the Group's revenue was US$596,814 thousand, gross profit was US$303,929 thousand, profit for the period was US$254,195 thousand, of which profit attributable to equity holders of the company was US$248,246 thousand, and basic earnings per share was US$0.46 Key Data from Consolidated Statement of Profit or Loss | Indicator | Six Months Ended June 30, 2025 (thousand USD) | Six Months Ended June 30, 2024 (thousand USD) | | :--- | :--- | :--- | | Revenue | 596,814 | 423,260 | | Cost of sales | (292,885) | (244,560) | | Gross profit | 303,929 | 178,700 | | Net other income | 8,162 | 11,143 | | Selling expenses | (797) | (3,146) | | Administrative expenses | (13,435) | (12,719) | | Operating profit | 297,658 | 174,258 | | Finance costs | (3) | (3) | | Profit before tax | 297,655 | 174,255 | | Income tax | (43,460) | (15,371) | | Profit for the period | 254,195 | 158,884 | | Profit attributable to equity holders of the company | 248,246 | 110,728 | | Profit attributable to non-controlling interests | 5,949 | 48,156 | | Basic and diluted earnings per share (USD) | 0.46 | 0.30 | [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=20&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's profit for the period was US$254,195 thousand, other comprehensive income was negative US$6,403 thousand, resulting in a total comprehensive income for the period of US$247,792 thousand, of which US$241,892 thousand was attributable to equity holders of the company Key Data from Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | Six Months Ended June 30, 2025 (thousand USD) | Six Months Ended June 30, 2024 (thousand USD) | | :--- | :--- | :--- | | Profit for the period | 254,195 | 158,884 | | Other comprehensive income for the period | (6,403) | (82,656) | | Total comprehensive income for the period | 247,792 | 76,228 | | Total comprehensive income attributable to equity holders of the company | 241,892 | 50,779 | | Total comprehensive income attributable to non-controlling interests | 5,900 | 25,449 | [Consolidated Statement of Financial Position](index=21&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets were US$2,075,139 thousand, comprising US$1,309,110 thousand in non-current assets and US$766,029 thousand in current assets. Total liabilities were US$235,542 thousand, and total equity was US$1,839,597 thousand Key Data from Consolidated Statement of Financial Position | Indicator | As of June 30, 2025 (thousand USD) | As of December 31, 2024 (thousand USD) | | :--- | :--- | :--- | | Non-current assets | 1,309,110 | 1,075,300 | | Current assets | 766,029 | 645,339 | | **Total assets** | **2,075,139** | **1,720,639** | | Current liabilities | 163,048 | 397,155 | | Non-current liabilities | 72,494 | 29,124 | | **Total liabilities** | **235,542** | **426,279** | | **Total equity** | **1,839,597** | **1,294,360** | [Consolidated Statement of Changes in Equity](index=23&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, total equity attributable to equity holders of the company increased from US$1,264,225 thousand at the beginning of the year to US$1,803,562 thousand, primarily due to profit for the period of US$248,246 thousand and issuance of new shares of US$297,445 thousand Key Data from Consolidated Statement of Changes in Equity | Indicator | As of January 1, 2025 (thousand USD) | Profit for the Period (thousand USD) | Other Comprehensive Income (thousand USD) | Issuance of New Shares (thousand USD) | As of June 30, 2025 (thousand USD) | | :--- | :--- | :--- | :--- | :--- | :--- | | Total equity attributable to equity holders of the company | 1,264,225 | 248,246 | (6,354) | 297,445 | 1,803,562 | | Non-controlling interests | 30,135 | 5,949 | (49) | — | 36,035 | | **Total equity** | **1,294,360** | **254,195** | **(6,403)** | **297,445** | **1,839,597** | [Condensed Consolidated Statement of Cash Flows](index=24&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash generated from operating activities was US$307,269 thousand, net cash used in investing activities was US$257,218 thousand, net cash generated from financing activities was US$30,931 thousand, and cash and cash equivalents at the end of the period were US$527,213 thousand Key Data from Condensed Consolidated Statement of Cash Flows | Indicator | Six Months Ended June 30, 2025 (thousand USD) | Six Months Ended June 30, 2024 (thousand USD) | | :--- | :--- | :--- | | Net cash generated from operating activities | 307,269 | 241,199 | | Net cash used in investing activities | (257,218) | (70,919) | | Net cash generated from/(used in) financing activities | 30,931 | (23,819) | | Net increase in cash and cash equivalents | 80,982 | 146,461 | | Cash and cash equivalents at January 1 | 454,152 | 251,561 | | Effect of exchange rate changes | (7,921) | (11,898) | | Cash and cash equivalents at June 30 | 527,213 | 386,124 | [Notes to the Interim Financial Report](index=25&type=section&id=Notes%20to%20the%20Interim%20Financial%20Report) This section provides detailed notes to the interim financial report, covering the basis of preparation, changes in accounting policies, revenue and segment reporting, profit before tax, income tax, earnings per share, property, plant and equipment, right-of-use assets, inventories, trade receivables, prepayments and other receivables, cash and cash equivalents, restricted deposits, time deposits, trade payables, other payables and accrued expenses, capital, reserves and dividends, fair value measurement of financial instruments, commitments, significant related party transactions, and post-reporting period events [1 Basis of Preparation](index=25&type=section&id=1%20Basis%20of%20Preparation) The company, incorporated in the Cayman Islands, primarily engages in alumina production and sales and was listed on the Main Board of the Stock Exchange on March 25, 2025. This interim financial report is prepared in accordance with Hong Kong Accounting Standard 34 and has been authorized for issue - The company was incorporated on **June 28, 2023**, under the Companies Act of the Cayman Islands, primarily engaging in the production and sale of alumina[85](index=85&type=chunk)[86](index=86&type=chunk) - The company's shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on **March 25, 2025**[87](index=87&type=chunk) - This interim financial report is prepared in accordance with the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants[87](index=87&type=chunk) [2 Changes in Accounting Policies](index=26&type=section&id=2%20Changes%20in%20Accounting%20Policies) The Group applied HKAS 21 (Amendment) "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability" during the current accounting period, but this amendment had no significant impact on this interim report - The Group has applied HKAS 21 (Amendment) "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability", but this amendment does not have a significant impact on this interim report[89](index=89&type=chunk) [3 Revenue and Segment Reporting](index=26&type=section&id=3%20Revenue%20and%20Segment%20Reporting) The Group's principal business is the production and sale of alumina, with revenue recognized at a point in time. For the six months ended June 30, 2025, revenue was US$596,814 thousand. The Group has a single operating segment, with major customers including Customer A, Customer B, and Customer C, and geographical revenue primarily from Malaysia, Hong Kong, and India [3(a) Revenue](index=26&type=section&id=3(a)%20Revenue) The Group's principal business is the production and sale of alumina (including aluminum hydroxide), with revenue recognized at a point in time. For the six months ended June 30, 2025, revenue from alumina sales was US$596,814 thousand, with major customers including Customer A, Customer B, and Customer C - The Group's principal business is the production and sale of alumina (including aluminum hydroxide), with revenue recognized at a point in time[91](index=91&type=chunk) Revenue from Alumina Sales | Indicator | Six Months Ended June 30, 2025 (thousand USD) | Six Months Ended June 30, 2024 (thousand USD) | | :--- | :--- | :--- | | Sales of alumina | 596,814 | 423,260 | Revenue from Major Customers | Customer | Six Months Ended June 30, 2025 (thousand USD) | Six Months Ended June 30, 2024 (thousand USD) | | :--- | :--- | :--- | | Customer A | 240,487 | 210,612 | | Customer B | 202,010 | 152,524 | | Customer C | 96,954 | * | [3(b) Segment Reporting](index=27&type=section&id=3(b)%20Segment%20Reporting) The Group has a single operating segment, which is the production and sale of metallurgical-grade alumina. The chief operating decision-maker (CEO) reviews the Group's overall performance and financial position - The Group has a single operating segment, which is the production and sale of metallurgical-grade alumina[93](index=93&type=chunk) [Geographical Information](index=27&type=section&id=Geographical%20Information) The Group's revenue, segmented by customer's country of incorporation, primarily originates from Malaysia, Hong Kong, and India. The majority of non-current assets are located in Indonesia Revenue by Geographical Region | Geographical Region | Six Months Ended June 30, 2025 (thousand USD) | Six Months Ended June 30, 2024 (thousand USD) | | :--- | :--- | :--- | | Malaysia | 240,487 | 210,612 | | Hong Kong | 228,098 | 152,524 | | India | 99,897 | — | | Singapore | 28,332 | 57,380 | | South Korea | — | 2,744 | | **Total** | **596,814** | **423,260** | - The majority of the Group's non-current assets are located in Indonesia[95](index=95&type=chunk) [4 Profit Before Tax](index=27&type=section&id=4%20Profit%20Before%20Tax) Profit before tax is achieved after deducting finance costs, staff costs, and other items. For the six months ended June 30, 2025, finance costs were US$3 thousand, staff costs were US$26,753 thousand, and depreciation expense was US$28,940 thousand [4(a) Finance Costs](index=27&type=section&id=4(a)%20Finance%20Costs) For the six months ended June 30, 2025, the Group's finance costs were US$3 thousand, consistent with the prior year, primarily representing interest on lease liabilities Finance Costs | Indicator | Six Months Ended June 30, 2025 (thousand USD) | Six Months Ended June 30, 2024 (thousand USD) | | :--- | :--- | :--- | | Interest on lease liabilities | 3 | — | | Interest on defined benefit obligations | — | 3 | | **Total** | **3** | **3** | [4(b) Staff Costs](index=28&type=section&id=4(b)%20Staff%20Costs) For the six months ended June 30, 2025, staff costs were approximately US$26,753 thousand, a significant increase from US$16,351 thousand in the prior year, primarily including salaries, wages, and other benefits Staff Costs | Indicator | Six Months Ended June 30, 2025 (thousand USD) | Six Months Ended June 30, 2024 (thousand USD) | | :--- | :--- | :--- | | Salaries, wages and other benefits | 25,107 | 15,666 | | Contributions to defined contribution retirement plans | 1,646 | 660 | | Expenses recognized for defined benefit obligations | — | 25 | | **Total** | **26,753** | **16,351** | [4(c) Other Items](index=28&type=section&id=4(c)%20Other%20Items) For the six months ended June 30, 2025, depreciation expense was US$28,940 thousand, listing expenses were US$903 thousand, and cost of inventories was US$292,885 thousand Other Items | Indicator | Six Months Ended June 30, 2025 (thousand USD) | Six Months Ended June 30, 2024 (thousand USD) | | :--- | :--- | :--- | | Amortization | 369 | 333 | | Depreciation expense | 28,940 | 25,967 | | Listing expenses | 903 | 1,227 | | Cost of inventories | 292,885 | 244,560 | [5 Income Tax](index=29&type=section&id=5%20Income%20Tax) For the six months ended June 30, 2025, income tax expense was US$43,460 thousand, primarily including Pillar Two income tax of US$39,031 thousand. The Group is subject to global anti-base erosion rules, and Indonesia has implemented a domestic minimum top-up tax [5(a) Tax in Consolidated Statement of Profit or Loss](index=29&type=section&id=5(a)%20Tax%20in%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, total tax in the consolidated statement of profit or loss was US$43,460 thousand, comprising current tax of US$39,053 thousand (mainly Pillar Two income tax) and deferred tax of US$4,407 thousand Tax in Consolidated Statement of Profit or Loss | Indicator | Six Months Ended June 30, 2025 (thousand USD) | Six Months Ended June 30, 2024 (thousand USD) | | :--- | :--- | :--- | | Current tax | 39,053 | 7,395 | | Pillar Two income tax | 39,031 | — | | Corporate income tax | 22 | 24 | | Withholding tax | — | 7,371 | | Deferred tax | 4,407 | 7,976 | | **Total** | **43,460** | **15,371** | - The Indonesian subsidiary, BAI, has been granted corporate income tax exemption in Indonesia, including a **20-year exemption** from **2021 to 2040**, and a **50% reduction** of the normal tax rate from **2041 to 2042**[99](index=99&type=chunk) [5(b) Pillar Two Income Tax](index=30&type=section&id=5(b)%20Pillar%20Two%20Income%20Tax) The Group is subject to the global anti-base erosion rules (Pillar Two Model Rules) issued by the OECD. Effective January 1, 2025, the Group's profits in Indonesia are subject to a domestic minimum top-up tax, and Pillar Two income tax expense has been recognized accordingly - The Group is part of a multinational enterprise group and is subject to the global anti-base erosion rules (Pillar Two Model Rules) issued by the Organisation for Economic Co-operation and Development[100](index=100&type=chunk) - Effective **January 1, 2025**, the Group's profits in Indonesia are subject to the Indonesian domestic minimum top-up tax, which came into effect on **January 1, 2025**, and Pillar Two income tax expense has been recognized accordingly[100](index=100&type=chunk) [6 Earnings Per Share](index=30&type=section&id=6%20Earnings%20Per%20Share) For the six months ended June 30, 2025, basic earnings per share was US$0.46, calculated based on profit attributable to ordinary equity holders of the company of US$248,246,000 and a weighted average of 544,518,000 ordinary shares. Diluted earnings per share was the same as basic earnings per share [6(a) Basic Earnings Per Share](index=30&type=section&id=6(a)%20Basic%20Earnings%20Per%20Share) For the six months ended June 30, 2025, basic earnings per share was US$0.46, an increase from US$0.30 in the prior year Basic Earnings Per Share | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Basic earnings per share (USD) | 0.46 | 0.30 | | Profit attributable to ordinary equity holders (USD) | 248,246,000 | 110,728,000 | | Weighted average number of ordinary shares outstanding (shares) | 544,518,000 | 372,055,000 | [6(b) Diluted Earnings Per Share](index=30&type=section&id=6(b)%20Diluted%20Earnings%20Per%20Share) Diluted earnings per share was the same as basic earnings per share due to the anti-dilutive effect of the over-allotment option - The over-allotment option was not included in the calculation of diluted earnings per share as its effect would be anti-dilutive. Therefore, diluted earnings per share is the same as basic earnings per share[103](index=103&type=chunk) [7 Property, Plant and Equipment](index=31&type=section&id=7%20Property%2C%20Plant%20and%20Equipment) As of June 30, 2025, the carrying amount of property, plant and equipment was US$1,207,898 thousand, with additions of US$268,685 thousand during the period, primarily for new alumina production project facilities under construction Changes in Property, Plant and Equipment | Indicator | Six Months Ended June 30, 2025 (thousand USD) | Six Months Ended June 30, 2024 (thousand USD) | | :--- | :--- | :--- | | At January 1 | 969,020 | 869,594 | | Additions | 268,685 | 39,508 | | Disposals | (3) | (1) | | Depreciation | (27,736) | (27,423) | | Exchange adjustments | (2,068) | (53,603) | | At June 30 | 1,207,898 | 828,075 | - Additions to property, plant and equipment primarily relate to new alumina production project facilities under construction[105](index=105&type=chunk) [8 Right-of-use Assets](index=31&type=section&id=8%20Right-of-use%20Assets) As of June 30, 2025, total right-of-use assets amounted to US$49,491 thousand, primarily consisting of leased land. Depreciation for the period was US$1,204 thousand. Formal certificates for some leased land are still pending application Changes in Right-of-use Assets | Indicator | Leased Land (thousand USD) | Leased Office Buildings (thousand USD) | Total (thousand USD) | | :--- | :--- | :--- | :--- | | At January 1 | 50,729 | 203 | 50,932 | | Depreciation for the period | (1,140) | (64) | (1,204) | | Exchange adjustments | (236) | (1) | (237) | | At June 30 | 49,353 | 138 | 49,491 | - As of **June 30, 2025**, formal certificates for several plots of leased land with a carrying amount of **US$39,648,000** are still in the application process[106](index=106&type=chunk) [9 Inventories](index=32&type=section&id=9%20Inventories) As of June 30, 2025, total inventories amounted to US$126,902 thousand, primarily comprising raw materials of US$92,778 thousand and work-in-progress of US$32,089 thousand Inventory Composition | Indicator | As of June 30, 2025 (thousand USD) | As of December 31, 2024 (thousand USD) | | :--- | :--- | :--- | | Raw materials | 92,778 | 54,357 | | Work-in-progress | 32,089 | 35,823 | | Finished goods | 2,035 | 9,439 | | **Total** | **126,902** | **99,619** | - The amount of inventories recognized as expense and included in profit or loss was **US$292,885 thousand** (2024: US$244,560 thousand)[108](index=108&type=chunk) [10 Trade Receivables](index=32&type=section&id=10%20Trade%20Receivables) As of June 30, 2025, total trade receivables were US$63,212 thousand, primarily from third parties. All trade receivables are expected to be recovered within one year, with most aged within 3 months Trade Receivables | Indicator | As of June 30, 2025 (thousand USD) | As of December 31, 2024 (thousand USD) | | :--- | :--- | :--- | | Trade receivables — Third parties | 63,787 | 41,345 | | Trade receivables — Related parties | — | 35 | | **Total** | **63,787** | **41,380** | | Less: Loss allowance | (575) | (374) | | **Net** | **63,212** | **41,006** | - All trade receivables are expected to be recovered within one year[108](index=108&type=chunk) Ageing Analysis of Trade Receivables | Ageing | As of June 30, 2025 (thousand USD) | As of December 31, 2024 (thousand USD) | | :--- | :--- | :--- | | Within 3 months | 63,097 | 41,006 | | 3–6 months | — | 115 | | **Total** | **63,212** | **41,006** | [11 Prepayments and Other Receivables](index=33&type=section&id=11%20Prepayments%20and%20Other%20Receivables) As of June 30, 2025, current prepayments and other receivables amounted to US$34,608 thousand, and non-current portion was US$47,089 thousand, primarily for the purchase of property, plant and equipment Prepayments and Other Receivables | Indicator | As of June 30, 2025 (thousand USD) | As of December 31, 2024 (thousand USD) | | :--- | :--- | :--- | | **Current portion** | | | | Prepayments — Purchase of inventories | 15,691 | 29,059 | | Recoverable VAT | 13,042 | 15,476 | | Other recoverable taxes | 3,766 | — | | Amounts due from related parties | 4 | 1 | | Capitalized listing expenses | — | 693 | | Others | 2,105 | 1,017 | | **Total current** | **34,608** | **46,246** | | **Non-current portion** | | | | Prepayments — Purchase of leased land | 1,749 | 1,757 | | Prepayments — Purchase of property, plant and equipment | 45,340 | 48,985 | | **Total non-current** | **47,089** | **50,742** | - The balance of capitalized listing expenses was transferred to the share premium account within equity after the company's shares were listed on the Stock Exchange[113](index=113&type=chunk) [12 Cash and Cash Equivalents/Restricted Deposits/Time Deposits](index=34&type=section&id=12%20Cash%20and%20Cash%20Equivalents%2FRestricted%20Deposits%2FTime%20Deposits) As of June 30, 2025, cash and cash equivalents were US$527,213 thousand, restricted deposits were US$1,355 thousand, and time deposits (initial maturity of 3 to 12 months) were US$12,739 thousand [12(a) Cash and Cash Equivalents](index=34&type=section&id=12(a)%20Cash%20and%20Cash%20Equivalents) As of June 30, 2025, total cash and cash equivalents amounted to US$527,213 thousand, primarily comprising bank balances and time deposits with initial maturity of less than 3 months Cash and Cash Equivalents | Indicator | As of June 30, 2025 (thousand USD) | As of December 31, 2024 (thousand USD) | | :--- | :--- | :--- | | Bank balances | 393,395 | 454,137 | | Cash on hand | 24 | 15 | | Time deposits — Initial maturity less than 3 months | 133,794 | — | | **Total** | **527,213** | **454,152** | [12(b) Restricted Deposits](index=34&type=section&id=12(b)%20Restricted%20Deposits) As of June 30, 2025, restricted deposits amounted to US$1,355 thousand, primarily including margins for forward foreign exchange contracts and letters of credit Restricted Deposits | Indicator | As of June 30, 2025 (thousand USD) | As of December 31, 2024 (thousand USD) | | :--- | :--- | :--- | | Restricted deposits | 1,355 | 4,316 | - Restricted deposits include margins for forward foreign exchange contracts and letters of credit[114](index=114&type=chunk) [12(c) Time Deposits](index=34&type=section&id=12(c)%20Time%20Deposits) As of June 30, 2025, current time deposits (initial maturity of 3 to 12 months) were US$12,739 thousand, and non-current time deposits (initial maturity over 12 months) were US$419 thousand Time Deposits | Indicator | As of June 30, 2025 (thousand USD) | As of December 31, 2024 (thousand USD) | | :--- | :--- | :--- | | Time deposits — Initial maturity of 3 to 12 months | 12,739 | — | | Time deposits — Initial maturity over 12 months | 419 | — | [13 Trade Payables](index=35&type=section&id=13%20Trade%20Payables) As of June 30, 2025, total trade payables amounted to US$45,428 thousand, comprising US$13,816 thousand to related parties and US$31,612 thousand to third parties. All amounts are expected to be settled within one year Trade Payables | Indicator | As of June 30, 2025 (thousand USD) | As of December 31, 2024 (thousand USD) | | :--- | :--- | :--- | | Related parties | 13,816 | 6,767 | | Third parties | 31,612 | 11,124 | | **Total** | **45,428** | **17,891** | - All trade payables are expected to be settled within one year or repayable on demand[117](index=117&type=chunk) Ageing Analysis of Trade Payables | Ageing | As of June 30, 2025 (thousand USD) | As of December 31, 2024 (thousand USD) | | :--- | :--- | :--- | | Within 1 year | 45,428 | 17,891 | [14 Other Payables and Accrued Expenses](index=35&type=section&id=14%20Other%20Payables%20and%20Accrued%20Expenses) As of June 30, 2025, total other payables and accrued expenses amounted to US$116,917 thousand, primarily including payables for property, plant and equipment of US$103,670 thousand. All balances are expected to be settled within one year Other Payables and Accrued Expenses | Indicator | As of June 30, 2025 (thousand USD) | As of December 31, 2024 (thousand USD) | | :--- | :--- | :--- | | Dividends payable | — | 267,058 | | Payables for purchase of property, plant and equipment | 103,670 | 83,302 | | Accrued salaries and other benefits | 4,118 | 6,601 | | Taxes and surcharges payable | 1,343 | 1,203 | | Others | 7,786 | 3,898 | | **Total** | **116,917** | **362,062** | - All balances are expected to be settled within one year[119](index=119&type=chunk) [15 Capital, Reserves and Dividends](index=36&type=section&id=15%20Capital%2C%20Reserves%20and%20Dividends) This section details changes in share capital, the formation of share premium, and the declaration and payment of dividends. The company issued new shares after listing, increasing share capital and share premium, and declared its first interim dividend post-listing [15(a) Share Capital](index=36&type=section&id=15(a)%20Share%20Capital) The company completed a share split on March 10, 2025, increasing issued shares to 500,000,000. Subsequently, a global offering and partial exercise of the over-allotment option resulted in the issuance of 89,435,200 new ordinary shares, bringing the total issued shares to 589,435,200 - On **March 10, 2025**, the company's issued and unissued shares with a par value of **US$0.000001** each were split into **5 shares** with a par value of **US$0.0000002** each, increasing the issued shares to **500,000,000**[120](index=120&type=chunk) - On **March 25, 2025**, the company's shares were listed on the Main Board of the Stock Exchange, with **88,235,300 shares** issued at a price of **HK$26.60** per share[120](index=120&type=chunk) - On **April 24, 2025**, the over-allotment shares were listed on the Main Board of the Stock Exchange, with **1,199,900 shares** issued at a price of **HK$26.60** per share[120](index=120&type=chunk) [15(b) Share Premium](index=36&type=section&id=15(b)%20Share%20Premium) Following the completion of the global offering and partial exercise of the over-allotment option, the company issued 89,435,200 new ordinary shares, generating a share premium of US$297,445,000 - Following the completion of the initial public offering and partial exercise of the over-allotment option, the company issued **89,435,200 new ordinary shares**, generating a share premium of **US$297,445,000**[122](index=122&type=chunk) [15(c) Dividends](index=36&type=section&id=15(c)%20Dividends) The Board has declared an interim dividend of HK$0.65 per share for the six months ended June 30, 2025. During the interim period, the company paid dividends of US$260,000 thousand Dividend Declaration and Payment | Indicator | 2025 (thousand USD) | 2024 (thousand USD) | | :--- | :--- | :--- | | Interim dividend declared after the interim period of HK$0.65 (approx. US$0.08) per share | 49,649 | — | | Dividends paid by the company (attributable to previous financial year) | 260,000 | — | [16 Fair Value Measurement of Financial Instruments](index=37&type=section&id=16%20Fair%20Value%20Measurement%20of%20Financial%20Instruments) This section explains the fair value measurement methods for financial instruments, classifying them into a three-level fair value hierarchy. As of June 30, 2025, no financial assets and liabilities measured at fair value were classified as Level 2, and the carrying amounts of financial instruments accounted for at amortized cost did not differ significantly from their fair values [16(a) Financial Assets and Liabilities Measured at Fair Value](index=37&type=section&id=16(a)%20Financial%20Assets%20and%20Liabilities%20Measured%20at%20Fair%20Value) As of June 30, 2025, no financial assets and liabilities measured at fair value were classified as Level 2. The fair value of forward foreign exchange contracts is determined by discounting the difference between the contractual forward price and the current forward price Financial Liabilities Measured at Fair Value (Level 2) | Indicator | As of June 30, 2025 (thousand USD) | As of December 31, 2024 (thousand USD) | | :--- | :--- | :--- | | Other financial liabilities — Forward foreign exchange contracts | — | 1,820 | - The fair value of Level 2 forward foreign exchange contracts is determined by discounting the difference between the contractual forward price and the current forward price[126](index=126&type=chunk) [16(b) Fair Value of Financial Assets and Liabilities Not Measured at Fair Value](index=37&type=section&id=16(b)%20Fair%20Value%20of%20Financial%20Assets%20and%20Liabilities%20Not%20Measured%20at%20Fair%20Value) The carrying amounts of the Group's financial instruments accounted for at amortized cost did not differ significantly from their fair values as of June 30, 2025, and December 31, 2024 - The carrying amounts of the Group's financial instruments accounted for at amortized cost did not differ significantly from their fair values as of **June 30, 2025**, and **December 31, 2024**[127](index=127&type=chunk) [17 Commitments](index=37&type=section&id=17%20Commitments) As of June 30, 2025, the Group's contracted capital commitments for property, plant and equipment amounted to US$174,001 thousand Capital Commitments | Indicator | As of June 30, 2025 (thousand USD) | As of December 31, 2024 (thousand USD) | | :--- | :--- | :--- | | Commitments for property, plant and equipment — Contracted | 174,001 | 269,211 | [18 Significant Related Party Transactions](index=38&type=section&id=18%20Significant%20Related%20Party%20Transactions) This section lists the Group's significant transactions with various related parties, including purchases of raw materials, property, plant and equipment, and services, as well as sales of alumina and scrap. Key management personnel compensation is also disclosed. The company's immediate parent company is Nanshan Aluminium Investment Holding Limited, and the ultimate controlling party is Nanshan Village Residents' Committee, Dongjiang Street, Longkou City, Shandong Province, China [18(a) Names/Designations and Relationships of Related Parties with Significant Transactions with the Group](index=38&type=section&id=18(a)%20Names%2FDesignations%20and%20Relationships%20of%20Related%20Parties%20with%20Significant%20Transactions%20with%20the%20Group) The Group's related parties include intermediate holding companies NAS and NAIHL, the ultimate controlling party Nanshan Village Residents' Committee, and several companies controlled by Mr. Santony and his close family members, among others - Related parties include intermediate holding companies Nanshan Aluminium Singapore Co. Pte. Ltd. (NAS) and Nanshan Aluminium Investment Holding Limited (NAIHL)[129](index=129&type=chunk) - Related parties also include Shandong Nanshan Aluminium Co., Ltd., Yantai Jintai International Trade Co., Ltd., Shandong Nanshan International Travel Service Co., Ltd., PT. Bintan Electrolytic Aluminium[129](index=129&type=chunk) - Several companies controlled by Mr. Santony and/or his close family members are also related parties[129](index=129&type=chunk) [18(b) Key Management Personnel Compensation](index=38&type=section&id=18(b)%20Key%20Management%20Personnel%20Compensation) For the six months ended June 30, 2025, the Group's key management personnel compensation totaled US$634 thousand, an increase from the prior year Key Management Personnel Compensation | Indicator | Six Months Ended June 30, 2025 (thousand USD) | Six Months Ended June 30, 2024 (thousand USD) | | :--- | :--- | :--- | | Short-term employee benefits | 606 | 348 | | Contr

Financial Performance - The company reported revenue of HKD 6,936 million for the six months ending June 30, 2025, an increase from HKD 6,547 million for the same period in 2024, representing a growth of approximately 5.93%[6]. - The loss attributable to the company's owners was HKD 3,145 million, compared to a loss of HKD 415 million for the same period in 2024, indicating a significant increase in losses[5]. - The company reported a significant loss of HKD 3,072,142 for the period, compared to a loss of HKD 355,502 in 2024, representing an increase in loss of 765.56%[64]. - The loss attributable to the company's owners was HKD 3,144,609, compared to HKD 414,693 in the prior year, indicating a substantial increase in losses[63]. - The total comprehensive loss for the period was HKD 623,675,000, with a loss attributable to owners of the company of HKD 414,693,000[67]. - The basic loss per share for the period was HKD 3.96, compared to HKD 0.52 in the previous year[63]. Impairment and Investments - The company recognized an additional impairment of HKD 2,310 million on its investment in Road King Infrastructure, reflecting a decline in recoverable amount compared to its carrying value[7]. - The company recognized a share of losses from Road King Infrastructure Limited amounting to HKD 905,719,000 for the six months ended June 30, 2025[58]. - An impairment loss of HKD 2,310,000,000 was confirmed based on fair value less costs to sell for the company's interest in Road King[58]. - The company’s equity interest in Road King Infrastructure Limited is valued at HKD 279,211,000, after accounting for cumulative impairment losses of HKD 3,820,000,000[58]. Revenue Segments - The construction segment, under the subsidiary, reported revenue of HKD 6,900 million, an increase from HKD 6,472 million in the same period last year, with a profit attributable to owners of HKD 179 million, up 20% year-on-year[12]. - The construction materials segment recorded revenue of HKD 225 million, down from HKD 324 million in the previous year, with a net profit of HKD 33 million compared to HKD 51 million previously[15]. - Revenue from construction contracts for the six months ended June 30, 2025, was HKD 6,765,731,000, up from HKD 6,342,402,000 in 2024, reflecting a growth of 6.7%[73]. - The construction, sewage treatment, and steam fuel segment generated revenue of HKD 6,899,772,000, with an external segment profit of HKD 104,154,000, compared to HKD 6,472,335,000 and HKD 86,444,000 respectively in the previous year[75][77]. Cash Flow and Financial Position - The group recorded a net cash inflow from operating activities of HKD 219,431,000, compared to HKD 128,603,000 for the same period in 2024, representing an increase of 70.7%[69]. - The company reported a net cash outflow from investing activities of HKD 502,121,000 for the six months ended June 30, 2025, compared to HKD 2,709,000 in 2024[69]. - The cash and cash equivalents at the end of the period increased to HKD 2,190,641,000 from HKD 1,513,086,000, marking a rise of 44.7%[69]. - As of June 30, 2025, total borrowings decreased from HKD 1,132 million to HKD 757 million, with current liabilities classified at HKD 159 million and non-current liabilities at HKD 598 million[23]. - The group's cash, bank deposits, and total cash amounted to HKD 2,312 million as of June 30, 2025, an increase from HKD 2,056 million at the end of 2024[25]. Shareholder Information - The company’s major shareholder, Mr. Dan Wei Biao, held 255,880,078 shares, representing 32.26% of the issued ordinary shares[29]. - Mr. Dan Wei Biao was deemed to have an interest in a total of 501,176,921 shares, accounting for 63.19% of the issued shares due to a relevant agreement[29]. - Major shareholders include Dan Wei Bao with 245,296,843 shares (30.93% of issued ordinary shares) and Cheng Yu Tung Family (Holdings) Limited with 91,134,000 shares (11.49%) each[39]. Corporate Governance and Compliance - The company has complied with the corporate governance code, except for the separation of roles between the chairman and CEO[42]. - The company has confirmed compliance with the standards of conduct regarding securities trading by all directors for the six months ended June 30, 2025[43]. - The audit committee reviewed the accounting policies and the unaudited interim financial information for the six months ended June 30, 2025[46]. Employment and Employee Costs - As of June 30, 2025, the total number of employees is 3,899, a decrease from 3,922 as of December 31, 2024[48]. - Total employee costs for the six months ended June 30, 2025, amounted to HKD 1,074,000,000, up from HKD 989,000,000 for the same period in 2024[48]. Debt and Financing - The company entered into a financing agreement for a term loan of HKD 570,000,000, with a maturity of 48 months, extendable to 60 months[50]. - The debt-to-equity ratio increased to 45.2% as of June 30, 2025, compared to 24.4% as of December 31, 2024[26]. - The net debt-to-equity ratio was -92.9% as of June 30, 2025, compared to -19.9% as of December 31, 2024, indicating that cash and deposits exceeded total borrowings[26]. Other Financial Metrics - The company’s total assets decreased to HKD 7,559,680 from HKD 8,157,450, reflecting a decline of 7.34%[65]. - Current liabilities decreased to HKD 5,554,908 from HKD 6,788,906, a reduction of 18.14%[65]. - Non-current liabilities increased to HKD 634,225 from HKD 101,238, a significant rise of 527.36%[66]. - The company's equity attributable to owners decreased to HKD 1,674,837 from HKD 4,643,718, a decline of 64.05%[66]. Market and Economic Conditions - The construction sector is facing a challenging environment due to economic slowdown, but the government has announced an increase in average annual basic engineering expenditure from approximately HKD 90 billion to HKD 120 billion for the fiscal years 2025 to 2026[22].