康方生物科技(開曼)有限公司 Akeso, Inc. (於開曼群島註冊成立的有限公司) (Incorporated in the Cayman Islands with limited liability) Stock Code 股份代號 : 9926 2025 中期報告 INTERIM REPORT 康方生物科技(開曼)有限公司 Akeso, Inc. INTERIM REPORT 2025 中期報告 目 錄 | | 頁次 | | --- | --- | | 公司簡介 | 2 | | 釋義 | 3 | | 公司資料 | 6 | | 摘要 | 8 | | 管理層討論及分析 | 9 | | 補充資料 | 27 | | 獨立審閱報告 | 66 | | 中期簡明綜合損益及其他全面收益表 | 67 | | 中期簡明綜合財務狀況表 | 69 | | 中期簡明綜合權益變動表 | 71 | | 中期簡明綜合現金流量表 | 73 | | 中期簡明綜合財務資料附註 | 75 | 公司簡介 康方生物科技（開曼）有限公司是一家致力於研究、開發、生產及商業化讓全球病人可負擔的創新抗體藥的生物製藥 公司。自成立以來，本公司建立了端對端 ...

Company Information This section details the company's corporate structure, including Board and committee changes, key personnel, and essential corporate information [Board of Directors](index=3&type=section&id=Board%20of%20Directors) The Board of Directors underwent significant changes, with new CEO and Executive Director appointments, and multiple resignations or suspensions - Mr. Qiu Yiming was appointed Chief Executive Officer on **May 2, 2025**[4](index=4&type=chunk) - Ms. Chen Jianyue was appointed Executive Director on **March 12, 2025**[4](index=4&type=chunk) - Mr. Guan Xiongjun was appointed Executive Director on **May 2, 2025**[4](index=4&type=chunk) - Mr. Au Chi Fung resigned as Executive Director on **July 16, 2025**[4](index=4&type=chunk) - Ms. Bohra Shilpa Rajesh resigned as Executive Director on **March 12, 2025**[4](index=4&type=chunk) - Dr. Zhao Zhihua resigned as Executive Director on **May 2, 2025**[4](index=4&type=chunk) - Mr. Luk Man Fu resigned as Executive Director on **April 2, 2025**[4](index=4&type=chunk) - The executive directorships of Mr. Li Kam Hung and Mr. Yu Ming Hao were suspended[4](index=4&type=chunk) - Ms. Dong Qing, Mr. Tam Tsz Hin, and Mr. Yu Kwan Sheung were appointed Independent Non-executive Directors during the reporting period[4](index=4&type=chunk) [Committees](index=3&type=section&id=Committees) Changes occurred in the chairpersons and members of the Audit, Remuneration, and Nomination Committees, reflecting the Board restructuring - Mr. Yu Kwan Sheung was appointed Chairman of the Audit Committee on **July 16, 2025**[4](index=4&type=chunk) - Mr. Tam Tsz Hin was appointed Chairman of the Remuneration Committee on **July 16, 2025**[5](index=5&type=chunk) - Ms. Dong Qing was appointed Chairman of the Nomination Committee on **July 16, 2025**[5](index=5&type=chunk) [Authorized Representatives and Company Secretary](index=4&type=section&id=Authorized%20Representatives%20and%20Company%20Secretary) Mr. Au Chi Fung resigned as Authorized Representative, with Mr. Guan Xiongjun appointed, while Mr. Wong Sze Lok remains Company Secretary - Mr. Au Chi Fung resigned as Authorized Representative on **July 16, 2025**[6](index=6&type=chunk) - Mr. Guan Xiongjun was appointed Authorized Representative on **July 16, 2025**[6](index=6&type=chunk) - Mr. Wong Sze Lok serves as Company Secretary[6](index=6&type=chunk) [Auditor and Registered Office](index=4&type=section&id=Auditor%20and%20Registered%20Office) The company's auditor is HLB Hodgson Impey Cheng Limited, and its registered office is located in the Cayman Islands - The auditor is HLB Hodgson Impey Cheng Limited[6](index=6&type=chunk) - The registered office is located at Cricket Square, Cayman Islands[6](index=6&type=chunk) [Principal Place of Business and Share Registrar](index=4&type=section&id=Principal%20Place%20of%20Business%20and%20Share%20Registrar) The company maintains principal places of business in Macau and Hong Kong, with its principal share registrar in the Cayman Islands and Hong Kong branch registrar being Tricor Investor Services Limited - The Macau head office and principal place of business is located at Alameda Dr. Carlos d'Assumpcao[6](index=6&type=chunk) - The Hong Kong principal place of business is located at On Lok Industrial Centre, Chai Wan, Hong Kong[6](index=6&type=chunk) - The Hong Kong branch share registrar is Tricor Investor Services Limited[7](index=7&type=chunk) [Principal Bankers and Legal Advisers](index=4&type=section&id=Principal%20Bankers%20and%20Legal%20Advisers) The company's principal bankers include Banco Comercial de Macau and Banco Weng Hang, with Khoo & Co as its Hong Kong legal adviser - Principal bankers are Banco Comercial de Macau and Banco Weng Hang[7](index=7&type=chunk) - Hong Kong legal adviser is Khoo & Co[7](index=7&type=chunk) [Stock Code and Website](index=4&type=section&id=Stock%20Code%20and%20Website) The company's stock code is 3321, listed on the Main Board of The Stock Exchange of Hong Kong Limited, with its website at whh.com.hk - The stock code is **3321**, listed on the Main Board of The Stock Exchange of Hong Kong Limited[7](index=7&type=chunk) - The company's website is whh.com.hk[7](index=7&type=chunk) Management Discussion and Analysis This section provides an overview of the Group's business operations, financial performance, capital structure, and risk management strategies [Business Review and Prospects](index=5&type=section&id=Business%20Review%20and%20Prospects) The Group primarily offers renovation and maintenance services in Macau and Hong Kong, focusing on commercial properties, but faced challenges in new project acquisition due to senior management issues, leading to a strategic shift towards anti-counterfeiting technology and related interior decoration projects - The Group primarily engages in providing renovation, maintenance, and repair services in Macau and Hong Kong, historically focused on commercial properties, particularly within integrated resorts in Macau[10](index=10&type=chunk) - During the reporting period, the Group's performance was significantly impacted by events involving senior management, leading to challenges in securing new casino projects and a notable decrease in new project acquisitions[10](index=10&type=chunk) - On **May 13, 2025**, the Company entered into a non-legally binding Memorandum of Understanding with Nanjing Zhongke Micropoint Group Co, Ltd to explore business opportunities in developing and distributing cutting-edge anti-counterfeiting technology products[10](index=10&type=chunk) - The Company will directly participate as a consultant or engage in interior decoration projects for multiple independent data and production centers to be established in dozens of provinces across China for the Nanjing Zhongke Micropoint project[10](index=10&type=chunk) - The Board proposes to change the company's English name to "Zhongke Micropoint (Group) Co., Ltd" and adopt the Chinese name "中科微點（集團）有限公司" to reflect the new business direction[11](index=11&type=chunk) [Financial Review](index=6&type=section&id=Financial%20Review) For the six months ended June 30, 2025, the Group's total revenue significantly decreased by **82.9%** to **MOP1.1 million**, with a loss for the period of approximately **MOP58.0 million**, largely consistent with the prior year, primarily due to reduced new project acquisitions, increased impairment losses, and higher finance costs Major Financial Data Overview | Indicator | Six Months Ended June 30, 2025 (thousand MOP) | Six Months Ended June 30, 2024 (thousand MOP) | | :--- | :--- | :--- | | Total Revenue | 1,100 | 6,100 | | Loss for the Period | (58,000) | (58,600) | - The Group completed **1** renovation project in Macau during the six months ended **June 30, 2025**[13](index=13&type=chunk) Revenue Change | Indicator | Six Months Ended June 30, 2025 (thousand MOP) | Six Months Ended June 30, 2024 (thousand MOP) | Change (thousand MOP) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | 1,100 | 6,100 | (5,000) | -82.9% | Direct Costs Change | Indicator | Six Months Ended June 30, 2025 (thousand MOP) | Six Months Ended June 30, 2024 (thousand MOP) | Change (thousand MOP) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Total Direct Costs | 1,000 | 5,900 | (4,900) | -83.0% | Gross Profit and Gross Margin Change | Indicator | Six Months Ended June 30, 2025 (thousand MOP) | Six Months Ended June 30, 2024 (thousand MOP) | | :--- | :--- | :--- | | Gross Profit | 100 | 200 | | Gross Margin | 3.6% | 2.9% | Other Income and Net Other Gains Change | Indicator | Six Months Ended June 30, 2025 (thousand MOP) | Six Months Ended June 30, 2024 (thousand MOP) | Change (thousand MOP) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Other Income and Net Other Gains | 0 | 1 | (1) | -100% | - Other income and net other gains primarily comprised bank interest income[18](index=18&type=chunk) Impairment Losses Change | Indicator | Six Months Ended June 30, 2025 (thousand MOP) | Six Months Ended June 30, 2024 (thousand MOP) | Change (thousand MOP) | | :--- | :--- | :--- | :--- | | Provision for impairment losses on financial assets and contract assets | 49,000 | 42,800 | 6,200 | - The increase in impairment losses was due to a decrease in the recoverability of long outstanding trade receivables during the reporting period[19](index=19&type=chunk) Administrative Expenses Change | Indicator | Six Months Ended June 30, 2025 (thousand MOP) | Six Months Ended June 30, 2024 (thousand MOP) | Change (thousand MOP) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 5,400 | 14,400 | (9,000) | | Percentage of Total Revenue | 515.5% | 235.4% | | | Administrative Staff Costs | 4,000 | 8,200 | (4,200) | - The

Financial Performance - For the six months ended June 30, 2025, the company's consolidated revenue from continuing operations was approximately HKD 20,258,000, a decrease of about 77.4% compared to HKD 89,721,000 in 2024[7]. - The company reported a profit from continuing operations of approximately HKD 6,229,000, a significant improvement from a loss of HKD 250,400,000 in 2024[7]. - Earnings per share for continuing operations was approximately HKD 0.89, compared to a loss of HKD 18.21 per share in 2024[7]. - Gross profit for continuing operations decreased to approximately HKD 10,052,000, with a gross margin of about 49.6%, down from HKD 57,567,000 and 64.2% in 2024[11]. - Other income for continuing operations decreased to approximately HKD 842,000, primarily due to a reduction in government subsidies[11]. - Revenue for the first half of 2025 was approximately HKD 20,258,000, despite a challenging business environment[24]. - Revenue for the six months ended June 30, 2025, was HKD 20,258,000, a decrease of 77.6% compared to HKD 89,721,000 for the same period in 2024[49]. - Gross profit for the same period was HKD 10,052,000, down 82.5% from HKD 57,567,000 in 2024[49]. - The company reported a profit of HKD 11,126,000 for the period, a significant recovery from a loss of HKD 359,970,000 in the previous year[49]. - The company reported a net loss attributable to the owners of the company from continuing operations of HKD 9,470,000, compared to a loss of HKD 194,050,000 in the previous year[50]. - The company’s total comprehensive income for the period was HKD 13,996,000, a recovery from a loss of HKD 357,464,000 in 2024[50]. - The company experienced a total comprehensive loss of HKD 224,202,000 for the six months ended June 30, 2025, which includes a loss of HKD 226,005,000 during the period[53]. Expenses and Cost Management - The company reduced its distribution and sales expenses to approximately HKD 1,844,000, down from HKD 25,469,000 in 2024, due to decreased personnel and advertising costs[12]. - Research and development expenses decreased to approximately HKD 2,213,000, down from HKD 18,455,000 in 2024, reflecting a reduction in spending related to big data services[12]. - The company reported a significant decrease in executive compensation, with total remuneration for the six months ended June 30, 2025, at HKD 980,000, down from HKD 4,839,000 for the same period in 2024, representing an 80.7% decline[93]. Assets and Liabilities - As of June 30, 2025, the company's non-current assets were approximately HKD 23,989,000, a significant decrease from HKD 112,827,000 as of December 31, 2024[14]. - As of June 30, 2025, the total debt of the group was approximately HKD 76,210,000, a significant decrease from HKD 149,202,000 as of December 31, 2024[15]. - The asset-liability ratio was 1.1 times as of June 30, 2025, unchanged from December 31, 2024[16]. - Total assets decreased to HKD 188,363,000 as of June 30, 2025, from HKD 436,383,000 at the end of 2024, reflecting a decline of 56.9%[51]. - Current liabilities were HKD 224,289,000, down from HKD 578,320,000 in 2024, indicating a reduction of 61.2%[51]. - Trade receivables as of June 30, 2025, amounted to HKD 10,489,000, significantly down from HKD 135,661,000 as of December 31, 2024[80]. - Total trade and other receivables decreased to HKD 49,350,000 as of June 30, 2025, from HKD 307,791,000 as of December 31, 2024[80]. - Trade payables as of June 30, 2025, were HKD 108,244,000, a decrease from HKD 133,250,000 as of December 31, 2024[84]. - As of June 30, 2025, the company has unsecured other borrowings totaling approximately HKD 12,617,000, down from HKD 79,527,000 as of December 31, 2024, indicating a significant reduction of 84.1%[85]. Operational Changes and Strategy - The company has decided not to declare an interim dividend for the six months ended June 30, 2025, consistent with 2024[8]. - The company is actively expanding its big data services into sectors such as education, culture, and telecommunications, leveraging its SaaS/PaaS cloud platform and AI capabilities[10]. - The group plans to enhance its existing credit risk control products and introduce more flexible service models to lower customer procurement thresholds[25]. - The group aims to expand into various industries such as education and telecommunications, leveraging its SaaS/PaaS cloud platform and AI capabilities[24]. - The company has completed the sale of its wholly-owned subsidiary, Pan Asia Data (BVI) Inc., which has been classified as a discontinued operation[56]. - The company has terminated its operations related to third-party payment services following the sale of a subsidiary, impacting its operational classification[62]. - The company is actively seeking to renew or sign licensing agreements to improve revenue from big data services and generate additional operating cash inflows[58]. Cash Flow and Financing - For the six months ended June 30, 2025, the company reported a net cash inflow from operating activities of HKD 10,154,000, a significant improvement compared to a net outflow of HKD 90,106,000 in the same period of 2024[54]. - The company recorded a net cash outflow from investing activities of HKD 38,945,000 for the six months ended June 30, 2025, compared to a cash inflow of HKD 16,749,000 in the prior year[54]. - The company reported a net decrease in cash and cash equivalents of HKD 32,426,000 for the six months ended June 30, 2025[54]. - The company aims to negotiate favorable settlement terms with convertible bondholders to address defaulted principal and interest[58]. - The company plans to seek additional funding through equity financing and unused bank credit to support its operations and cash flow[58]. Shareholder Information - Major shareholders include Mr. Shi Qingliu with 223,744,000 shares (21.00%) and Lian Yang Investment Limited with 76,092,789 shares (7.14%) as of June 30, 2025[41]. - The total number of issued shares as of June 30, 2025, is 1,065,454,100 shares[41]. - The company did not purchase, sell, or redeem any of its listed securities during the six-month period ending June 30, 2025[42]. - The stock option plan is effective for a period of ten years from June 30, 2021, and will expire on June 29, 2031[30]. - As of June 30, 2025, a total of 17,340,000 stock options were granted, with 16,600,000 options remaining unexercised[37]. - The exercise price for the stock options granted on July 27, 2021, is HKD 2.056, representing 0.61% and 0.92% of the total issued shares for employees and consultants, respectively[37]. - The company has not established any arrangements for directors to benefit from purchasing shares or debt securities of the company or any other entity[40]. Compliance and Governance - The company has adopted the corporate governance code and confirmed compliance with the standards for securities trading by directors[46]. - The company has applied new accounting standards effective from January 1, 2025, with no significant impact on the financial statements for the current and prior periods[60]. - The company has no significant capital commitments or contingent liabilities as of June 30, 2025[19]. - The company has not made any significant investments or acquisitions in the first half of 2025[22]. - The company has no transfers between Level 1 and Level 2, nor any transfers in or out of Level 3 for the reporting period[96].

電話 : (852) 2509 8333 傳真 : (852) 3525 8368 網址 : www.swhyhk.com C004888 2025 SHENWAN HONGYUAN (H.K.) LIMITED 申萬宏源（香港）有限公司 （於香港註冊成立之有限公司） 2025 中期報告 （股份代號：218） SHENWAN HONGYUAN (H.K.) LIMITED 申 萬 宏 源（香港 ） 有限公司 香港皇后大道東1號太古廣場三座六樓 中期報告 申萬宏源（香港）有限公司 目錄 | 公司資料 | 2 | | --- | --- | | 業績 | 3 | | 簡明綜合損益及其他全面收益表 | 3 | | 簡明綜合財務狀況表 | 5 | | 簡明綜合權益變動表 | 7 | | 簡明綜合現金流量表 | 8 | | 簡明綜合財務報表附註 | 10 | | 管理層探討與分析 | 28 | | 其他資料 | 37 | 1 申萬宏源（香港）有限公司 二零二五年中期報告 1 頁次 公司資料 董事 執行董事 吳萌女士 （主席） 談偉軍先生 （於二零二五年九月二十二日辭任） 梁鈞先生 （行政總裁） 胡憬先生 （首席風險官） ...

Financial Performance - The group reported revenue of HKD 19,260,000 for the six months ended June 30, 2025, a decrease of 67.1% compared to HKD 58,631,000 in the same period of 2024[7] - Gross profit for the same period was HKD 4,864,000, representing a slight increase of 2.3% from HKD 4,755,000 in 2024[7] - Operating profit was HKD 1,202,000, a significant turnaround from an operating loss of HKD 2,128,000 in the previous year[7] - The net profit for the period was HKD 799,000, compared to a net loss of HKD 2,928,000 in 2024, indicating a recovery[9] - Revenue from foundation and related engineering was HKD 19,238,000, a decrease of 67.0% from HKD 58,209,000 in the previous year[20] - Revenue from alcohol beverage sales was HKD 22,000, down 94.8% from HKD 422,000 in the prior year[20] - The total comprehensive income for the period was HKD 778,000, compared to a total comprehensive loss of HKD 2,746,000 in the previous year[12] - For the six months ended June 30, 2025, the company reported a profit of HKD 799,000, compared to a loss of HKD 2,784,000 for the same period in 2024[12] - Basic earnings per share for the six months ended June 30, 2025, was HKD 0.36, a recovery from a loss of HKD (2.42) in 2024[40] - The company recorded a net profit of approximately HKD 0.8 million for the six months ended June 30, 2025, compared to a net loss of approximately HKD 2.9 million for the same period in 2024[55] Assets and Liabilities - Total assets decreased to HKD 85,279,000 as of June 30, 2025, down from HKD 94,454,000 at the end of 2024[10] - Current liabilities decreased to HKD 33,437,000 from HKD 42,255,000, showing a reduction of 20.9%[11] - The total liabilities for the reportable segments decreased to HKD 34,524 in 2025 from HKD 58,321 in 2024[29] - The total assets for the reportable segments decreased to HKD 83,254 in 2025 from HKD 99,011 in 2024[30] - Total borrowings as of June 30, 2025, were HKD 2,518,000, down from HKD 7,559,000 as of December 31, 2024[48] - The group's total debt, including borrowings and lease liabilities, was approximately HKD 4.5 million as of June 30, 2025, significantly reduced from HKD 9.9 million as of December 31, 2024[64] - The capital debt ratio was approximately 8.9% as of June 30, 2025, down from 19.9% as of December 31, 2024[64] Cash Flow and Liquidity - The company’s cash and bank balances were HKD 1,219,000, down from HKD 2,672,000, indicating a liquidity challenge[10] - Cash generated from operating activities was HKD 3,853,000, a decrease of 41.4% from HKD 6,574,000 in the previous year[13] - The company’s cash and cash equivalents decreased to HKD 1,219,000 from HKD 2,019,000, reflecting a decline of 39.6%[13] - The company incurred a net cash outflow from financing activities of HKD 5,840,000, compared to HKD 8,776,000 in the previous year[13] - The group maintained a net cash position as of June 30, 2025, indicating a stable financial condition to pursue business expansion[63] Equity and Shareholder Information - Total equity increased to HKD 50,384,000 from HKD 49,603,000, reflecting a growth of 1.57%[11] - The total equity attributable to owners increased to HKD 49,879,000 from HKD 38,766,000, representing a growth of 28.7%[12] - The total equity attributable to owners of the company was approximately HKD 49.9 million as of June 30, 2025, compared to HKD 49.1 million as of December 31, 2024[63] - The board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[73] - The company did not recommend any interim dividend for the six months ended June 30, 2025, compared to no dividend in 2024[41] Operational Insights - The company has not disclosed any new product developments or market expansion strategies in the current report[7] - The company remains cautiously optimistic about future prospects, believing in gradual global economic recovery and long-term stable growth despite current challenges[56] - The company plans to continue investing in technological innovation and talent development to maintain its competitive advantage in the foundation engineering sector in Hong Kong[56] - The group did not make any significant investments, acquisitions, or disposals of subsidiaries or associates during the six months ended June 30, 2025[65] Governance and Compliance - The company has adopted the trading standards as per GEM Listing Rules, and all directors confirmed compliance during the six months ending June 30, 2025[81] - The company has adhered to all applicable corporate governance codes as per GEM Listing Rules during the reporting period[83] - An audit committee has been established to review and supervise the financial reporting process and internal control procedures[84] Management Changes - Following the resignation of Mr. Liu Songhao on September 10, 2025, Mr. Chen Juming was appointed as an executive director and co-chairman of the board[85] Miscellaneous - The company issued 106,340,018 shares through a rights issue at a subscription price of HKD 0.12 per share, raising net proceeds of approximately HKD 11,836,000[47] - Trade receivables overdue as of June 30, 2025, amounted to approximately HKD 97,000, compared to HKD 1,623,000 as of December 31, 2024[12] - Trade payables decreased from HKD 13,431,000 as of December 31, 2024, to HKD 6,562,000 as of June 30, 2025[50] - There were no competitive businesses or conflicts of interest involving directors, major shareholders, or their close associates during the reporting period[80] - No shares of the company were purchased, sold, or redeemed by the company or its subsidiaries during the six months ending June 30, 2025[79] - The group has no significant contingent liabilities as of June 30, 2025[69] - No stock options were granted, exercised, expired, or lapsed under the stock option plan during the six months ending June 30, 2025[82] - Post-reporting period, the company secretary acquired 51,000,000 shares and 750,000 shares from Qihao Limited and Liu Songhao respectively[86]

Financial Performance - Revenue for the six months ended June 30, 2025, was HK$602,763,000, a decrease of 1.9% from HK$611,913,000 in the same period of 2024[10]. - Gross profit for the same period was HK$255,850,000, down 1.0% from HK$259,097,000 year-on-year[10]. - Profit before tax decreased to HK$67,937,000, representing a decline of 29.1% compared to HK$95,654,000 in the previous year[10]. - Profit for the period attributable to owners of the Company was HK$40,743,000, down 19.9% from HK$50,828,000 in the prior year[10]. - Basic earnings per share decreased to 7.18 HK cents from 8.75 HK cents, reflecting a decline of 18.0%[11]. - Total comprehensive income for the period was HK$80,645,000, an increase of 10.2% from HK$72,772,000 in the same period last year[11]. Expenses and Income - Other income and gains increased to HK$3,233,000 from HK$1,048,000, showing a significant growth of 208.5%[10]. - Selling and distribution expenses rose to HK$33,455,000, up 44.1% from HK$23,203,000 in the previous year[10]. - Administrative expenses increased to HK$133,333,000, a rise of 7.9% compared to HK$124,376,000 in the prior year[10]. - Current income tax expense decreased to HK$12,620,000 from HK$15,739,000, a reduction of 19.5%[43]. Assets and Liabilities - As of June 30, 2025, total non-current assets increased to HK$376,741,000 from HK$373,487,000 as of December 31, 2024, reflecting a growth of 0.6%[13]. - Current assets rose to HK$589,927,000, up from HK$582,125,000, indicating a 1.4% increase[13]. - Total current liabilities increased to HK$273,553,000 from HK$239,851,000, representing a rise of 14.1%[13]. - Net current assets decreased to HK$316,374,000 from HK$342,274,000, a decline of 7.6%[13]. - Total non-current liabilities decreased to HK$54,768,000 from HK$61,659,000, a reduction of 11.2%[14]. - Net assets as of June 30, 2025, were HK$638,347,000, down from HK$654,102,000, reflecting a decrease of 2.4%[14]. Cash Flow - Net cash from operating activities decreased significantly to HK$5,924,000 from HK$62,480,000 in the same period last year[21]. - The company experienced a net cash outflow from investing activities of HK$46,212,000, compared to HK$37,925,000 in the prior year[21]. - Cash and cash equivalents decreased to HK$215,932,000 from HK$267,235,000, a drop of 19.2%[13]. Shareholder Information - The company declared and paid dividends amounting to HK$25,490,000 to non-controlling interests during the period[18]. - The equity attributable to owners of the company decreased to HK$459,813,000 from HK$468,503,000, a decline of 1.5%[14]. - The company repurchased a total of 9,004,000 shares on the Stock Exchange at an aggregate consideration of approximately HK$21,194,360 (before expenses) during the reporting period[110]. Employee and Management - Compensation for key management personnel decreased to HK$3,057,000 for the six months ended June 30, 2025, from HK$4,616,000 in the same period of 2024[106]. - The Group added 200 overseas employees, increasing the total number of global branches and professional laboratories to 80[120]. - The Group's employee count increased to 3,574 as of June 30, 2025, up from 3,184 in the same period last year, reflecting ongoing expansion efforts[189]. Strategic Initiatives - The Group has significantly increased investments in Artificial Intelligence (AI) technology research and innovative applications to enhance future market competitiveness[120]. - The company has made significant strategic investments in AI technology, focusing on AI robotics to drive technological innovation and upgrades[123]. - The Group plans to accelerate expansion into emerging markets such as the Middle East, Africa, and Southeast Asia, focusing on high-growth sectors in new energy[133][134]. ESG and Sustainability - The company emphasizes ESG-oriented development as a key priority, implementing a "3+X" development strategy to achieve long-term sustainable strategies[124]. - The Group's climate change business has expanded, providing comprehensive low-carbon and sustainable development solutions, and was recognized with the Best Trading Award by the Beijing Green Exchange for 2024[149][150]. - The Group aims to leverage its strengths in green and low-carbon initiatives, partnering with the Beijing Green Exchange to contribute to national development goals[148]. Capital Management - The Group's gearing ratio as of June 30, 2025, was 4.11%, indicating a stable capital structure with net debt of HK$18.9 million[177]. - The Group maintained a strong liquidity position, with cash and cash equivalents amounting to HK$215.9 million, exceeding total debt obligations[177]. - The Group's capital management policy aims to ensure sustainable operations and maintain a robust capital ratio to maximize shareholder value[170]. Convertible Bonds - The company issued 2024 Convertible Bonds with a principal amount of US$3,846,153.85 (equivalent to HK$30,000,000) on October 8, 2024[194][195]. - The 2024 Convertible Bonds have a coupon rate of 5% per annum, payable every six months[196]. - The maturity date for the 2024 Convertible Bonds is set for the fifth anniversary of the issue date, subject to mutual agreement for any changes[196].

Financial Performance - Revenue for the six months ended June 30, 2025, was HKD 72,744,000, representing a 70.5% increase from HKD 42,705,000 in the same period of 2024[9] - Operating profit for the period was HKD 15,578,000, slightly up from HKD 15,544,000 in 2024, indicating stable operational performance[9] - Net profit for the period was HKD 2,223,000, down 33.5% from HKD 3,349,000 in the previous year[11] - Total comprehensive income for the period was HKD 1,233,000, a decrease of 59.9% compared to HKD 3,068,000 in 2024[11] - Basic and diluted earnings per share were HKD 0.03, down from HKD 0.10 in the same period last year[11] - The total segment profit for the six months was HKD 6,004,000, compared to HKD 13,166,000 in the previous year, indicating a decrease of 54.4%[36] - The company reported a pre-tax profit of HKD 2,228,000 for the six months ended June 30, 2025[36] - The profit attributable to owners for the six months ended June 30, 2025, was HKD 2,223,000, down from HKD 3,673,000 in the same period of 2024, representing a decline of 39.5%[53] Assets and Liabilities - Non-current assets totaled HKD 987,965,000 as of June 30, 2025, a slight decrease from HKD 1,005,764,000 at the end of 2024[14] - Current assets increased to HKD 90,803,000 from HKD 69,500,000, reflecting improved liquidity[14] - Total liabilities remained stable at HKD 323,752,000 compared to HKD 321,105,000 in December 2024[14] - Total assets as of June 30, 2025, amounted to HKD 1,078,768,000, a slight increase from HKD 1,075,264,000 at the end of 2024[39] - Total liabilities increased to HKD 586,771,000 from HKD 584,500,000 in 2024, reflecting a marginal rise of 0.4%[39] - The group recorded a net current liability of approximately HKD 172,216,000 as of June 30, 2025, raising significant doubts about its ability to continue as a going concern[20] - The controlling shareholder has agreed to provide sufficient funds to cover the group's maturing debts, amounting to approximately HKD 40,840,000, for at least the next twelve months[21] - The group expects to have adequate financial resources to meet its debts maturing within the next twelve months based on projected cash flows[20] Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2025, was HKD 44,692,000, compared to a net cash used of HKD 14,856,000 in the same period of 2024[17] - The net cash used in investing activities was HKD 2,973,000 for the six months ended June 30, 2025, significantly improved from HKD 300,042,000 in the prior year[17] - Financing activities resulted in a net cash outflow of HKD 35,561,000 for the six months ended June 30, 2025, compared to a net inflow of HKD 291,301,000 in the same period of 2024[17] - The cash and cash equivalents increased by HKD 6,158,000 during the six months ended June 30, 2025, compared to a decrease of HKD 23,597,000 in the same period of 2024[17] Revenue Breakdown - Revenue from property investment under leasing agreements amounted to HKD 54,784,000, up from HKD 26,567,000 in 2024, indicating a growth of 106.5%[31] - The construction services segment generated revenue of HKD 1,771,000, marking the introduction of this new business line in the second half of 2024[31] - The gardening services and plant sales segment reported revenue of HKD 3,278,000, an increase from HKD 3,043,000 in 2024, reflecting a growth of 7.7%[31] - The property management and related services segment earned HKD 9,009,000, slightly down from HKD 9,639,000 in 2024, showing a decline of 6.5%[31] - Rental income from investment properties rose by approximately 28,663,000 HKD or 95.5% to about 58,686,000 HKD, primarily due to the commencement of subleasing operations at the Silicon Valley Industrial Park[77] Investment Properties - The fair value of investment properties in Hong Kong was reported at HKD 355,500,000 as of June 30, 2025, compared to HKD 355,000,000 as of December 31, 2024[27] - The group adopted the income approach for valuing residential units in Hong Kong, using capitalization rates and average monthly rent per square foot as key inputs[28] - The group has not experienced significant changes in its valuation methods for investment properties during the reporting period[28] - The fair value of investment properties as of June 30, 2025, is approximately HKD 355,500,000, an increase from HKD 355,000,000 as of December 31, 2024, reflecting a fair value gain of HKD 7,000,000[56] Shareholder Information - Major shareholder Central Asia Holdings Group Limited holds 3,812,395,735 shares, representing 60.01% of the company's ordinary shares[111] - Li Jun and Zhongjun Holdings Group Limited each hold 951,500,000 shares, accounting for 14.98% of the company's ordinary shares[111] - Xiong Guoqiang and Xuhong International Limited each hold 597,600,000 shares, representing 9.41% of the company's ordinary shares[111] Corporate Governance - The audit committee reviewed the interim report and confirmed compliance with relevant accounting standards and regulations[118] - The company has adhered to all provisions of the corporate governance code, except for the separation of the roles of chairman and CEO[115][117] - The board expresses gratitude to shareholders, business partners, and employees for their support and efforts during the reporting period[120]

Company Information [Company Basic Information](index=2&type=section&id=Company%20Basic%20Information) Shuanghua Holdings Limited (Stock Code: 1241) is a Cayman Islands-incorporated company based in Shanghai, focusing on supply chain management and food supply business - Company Name: **Shuanghua Holdings Limited**, Stock Code: **1241**[1](index=1&type=chunk)[8](index=8&type=chunk)[9](index=9&type=chunk) - Registered in the **Cayman Islands**; Headquarters in **Shanghai, China**; Principal place of business in Hong Kong: **Kowloon Bay, Hong Kong**[8](index=8&type=chunk) - Board members include Executive Directors Mr. Zheng Ping (Chairman and CEO), Ms. Zheng Fei, Ms. Deng Luna; Non-Executive Director Ms. Kong Xiaoling; and Independent Non-Executive Directors Mr. He Binhui, Mr. Chen Lifan, and Ms. Guo Ying[8](index=8&type=chunk) Management Discussion and Analysis This section details Shuanghua Holdings Limited's H1 2025 macroeconomic challenges, business performance, future strategies, financial position, liquidity, capital expenditure, and human resources [Business Review](index=5&type=section&id=Business%20Review) In H1 2025, the Group's revenue significantly declined due to global geopolitical conflicts, US tariffs, and China's economic downturn, yet loss attributable to owners narrowed through refined management and cost control - The Group's primary businesses are supply chain management based on its own cold storage and properties, and food supply of high-end agricultural products like fruits, both domestically and internationally[10](index=10&type=chunk) - In H1 2025, frequent global geopolitical conflicts, increased US tariffs, and China's economic pressure led to a **0.1% year-on-year decrease in CPI** and a **2.8% decrease in PPI**[10](index=10&type=chunk) H1 2025 Sales Revenue and Loss | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-Year Change (RMB million) | | :--- | :--- | :--- | :--- | | Sales Revenue | 12.8 | 60.6 | -47.8 | | Loss Attributable to Owners of Parent | 2.1 | 3.2 | -1.1 (Loss narrowed) | H1 2025 Business Segment Revenue | Business Segment | H1 2025 Revenue (RMB million) | | :--- | :--- | | Supply Chain Management Business | 6.5 | | Food Supply Business | 6.3 | - Due to China's consumption downgrade leading to lower sales prices and unstable global trade increasing import costs, the Group reduced low-margin orders and actively pursued product diversification[11](index=11&type=chunk) [Outlook and Strategies](index=6&type=section&id=Outlook%20and%20Strategies) For H2 2025, the Group anticipates continued geopolitical and trade uncertainties, focusing on product and service diversification, one-stop supply chain solutions, and exploring innovative tech like power battery technology for robust growth - In H2 2025, the global geopolitical landscape remains complex, with uncertain US tariffs and trade policies, making it difficult to significantly boost domestic effective demand[13](index=13&type=chunk) - Strategy one: Promote product and service diversification, deepen one-stop supply chain solutions, and enhance warehousing capacity and turnover rate; expand protein and aquatic product lines in food supply, strengthening upstream resource integration and downstream customer network development[13](index=13&type=chunk)[14](index=14&type=chunk)[15](index=15&type=chunk) - Strategy two: Expand supply chain businesses for other goods and services through acquisitions, investments, joint ventures, or strategic alliances, actively seeking opportunities in innovative technology sectors (e.g., green energy), and planning to introduce advanced global power battery technology to develop new productive forces[13](index=13&type=chunk)[16](index=16&type=chunk) [Financial Review](index=7&type=section&id=Financial%20Review) In H1 2025, the Group experienced a significant revenue and gross profit decline, but increased other income and gains, substantial trade receivables impairment reversal, reduced administrative expenses, and stable interest expenses, leading to a narrowed loss attributable to owners H1 2025 Revenue Overview | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Year-on-Year Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Revenue | 12,789 | 60,563 | -47,774 | | Gross Profit | 1,119 | 4,439 | -3,320 | | Other income, gains and losses | 3,005 | 2,090 | +915 | | Reversal of impairment loss on trade receivables | 2,676 | 112 | +2,564 | | Selling and distribution costs | 938 | 916 | +22 | | Administrative expenses | 8,257 | 8,896 | -639 | | Interest expenses | 3 | 12 | -9 | | Loss Attributable to Owners of Parent | 2,115 | 3,183 | -1,068 (Loss narrowed) | H1 2025 Revenue and Gross Profit by Business Segment | Business Segment | 2025 Revenue (RMB thousand) | 2024 Revenue (RMB thousand) | 2025 Gross Profit (RMB thousand) | 2024 Gross Profit (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Supply Chain Management Business | 6,463 | 13,531 | 1,112 | 3,819 | | Food Supply Business | 6,326 | 47,032 | 7 | 620 | | Total | 12,789 | 60,563 | 1,119 | 4,439 | - The decrease in gross profit was primarily due to lower product sales prices and volumes resulting from China's consumption downgrade, coupled with increased import product costs[18](index=18&type=chunk) - The increase in other income, gains and losses was mainly attributable to investment income from financial assets[21](index=21&type=chunk) - The decrease in administrative expenses was primarily due to reduced consulting fees[24](index=24&type=chunk) [Liquidity and Financial Resources](index=10&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's net current assets and total cash and financial assets increased with no bank borrowings, while significantly reduced average inventory turnover days and increased trade receivables and payables turnover days reflect enhanced inventory management and improved terms with stakeholders Liquidity and Financial Resources Overview | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Net Current Assets | 90.3 | 89.7 | +0.6 | | Total Cash and Financial Assets | 91.1 | 88.2 | +2.9 | - The Group had **no bank borrowings** as of June 30, 2025, and December 31, 2024[29](index=29&type=chunk) Working Capital Turnover Days | Metric | H1 2025 (days) | H1 2024 (days) | Change (days) | | :--- | :--- | :--- | :--- | | Average Inventory Turnover Days | 0 | 5 | -5 | | Average Trade Receivables and Bills Receivable Turnover Days | 135 | 81 | +54 | | Average Trade Payables and Bills Payable Turnover Days | 97 | 51 | +46 | - The decrease in average inventory turnover days was mainly due to the Group's enhanced inventory turnover management[30](index=30&type=chunk) - The increase in average trade receivables and bills receivable turnover days was primarily due to extended credit terms for reputable customers; the increase in average trade payables and bills payable turnover days was mainly due to the Group negotiating more favorable terms with suppliers[31](index=31&type=chunk) [Capital Expenditure, Capital Commitments and Human Resources](index=11&type=section&id=Capital%20Expenditure%2C%20Capital%20Commitments%20and%20Human%20Resources) In H1 2025, the Group's capital expenditure focused on cold storage construction, with a significant year-on-year reduction in capital commitments; as of period-end, 42 employees' remuneration and benefits were disclosed, guided by position, performance, market conditions, and statutory social security Capital Expenditure and Capital Commitments | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Capital Expenditure | 1.7 | 1.3 | +0.4 | | Capital Commitments (Period-end) | 1.0 | 7.3 | -6.3 | - Capital expenditure and capital commitments were primarily for cold storage area construction[32](index=32&type=chunk) Human Resources and Remuneration Benefits | Metric | June 30, 2025 | H1 2025 (RMB million) | | :--- | :--- | :--- | | Total Employees | 42 employees | - | | Remuneration (excluding Directors' and Senior Management's) | - | 2.5 | | Benefit Expenses | - | 0.4 | - Remuneration policy is based on employee responsibilities, performance, length of service, and market conditions, complying with Chinese labor laws and regulations, and providing various employee social insurance schemes and housing provident funds[32](index=32&type=chunk)[33](index=33&type=chunk) [Significant Investments, Acquisitions and Disposals](index=13&type=section&id=Significant%20Investments%2C%20Acquisitions%20and%20Disposals) For the six months ended June 30, 2025, the Group made no significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, the Group had **no significant investments, acquisitions, or disposals** of subsidiaries, associates, or joint ventures[34](index=34&type=chunk) [Foreign Exchange Risk](index=13&type=section&id=Foreign%20Exchange%20Risk) Operating in China with RMB as functional currency, the Group faces transactional currency risk from HKD and USD exchange rate fluctuations against RMB, with no current hedging intent but ongoing monitoring for future measures - The Group's operations are in China, with RMB as its functional and presentation currency, primarily exposed to transactional currency risk from **HKD and USD exchange rate fluctuations against RMB**[35](index=35&type=chunk) - Currently, the Group has **no intention to hedge foreign exchange fluctuation risks**, but management will continue to monitor and consider appropriate hedging measures when necessary[35](index=35&type=chunk) [Contingent Liabilities](index=14&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** (December 31, 2024: Nil)[36](index=36&type=chunk) [Pledge of Assets](index=14&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group had no pledge of assets - As of June 30, 2025, the Group had **no pledge of assets** (December 31, 2024: Nil)[37](index=37&type=chunk) [Interim Dividend](index=14&type=section&id=Interim%20Dividend) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does **not recommend** the payment of an interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: Nil)[38](index=38&type=chunk) [Significant Events After Reporting Period](index=14&type=section&id=Significant%20Events%20After%20Reporting%20Period) No significant events requiring disclosure occurred after the reporting period - No significant events requiring disclosure occurred after the reporting period[39](index=39&type=chunk) Corporate Governance and Other Information This section discloses Shuanghua Holdings Limited's corporate governance practices, including directors' and major shareholders' interests, share option scheme, securities trading compliance, board committee structures, and adherence to the Corporate Governance Code, noting the deviation of combined Chairman and CEO roles [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures](index=14&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures) As of June 30, 2025, Executive Director Mr. Zheng Ping and his spouse, Non-Executive Director Ms. Kong Xiaoling, jointly held a **43.5% long position** in the Company's issued share capital through You Shen International Group Limited Directors' and Chief Executive's Long Positions in Shares (June 30, 2025) | Director's Name | Nature of Interest | Number of Shares | Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Zheng Ping | Corporate Interest (through You Shen Group) | 282,750,000 | 43.5% | | Ms. Kong Xiaoling | Family Interest (spouse of Mr. Zheng Ping) | 282,750,000 | 43.5% | - Mr. Zheng Ping holds **100% interest** in You Shen International Group Limited, and Ms. Kong Xiaoling, his spouse, is deemed to have an interest in the shares held by You Shen Group[41](index=41&type=chunk) [Interests Discloseable Under the Securities and Futures Ordinance and Major Shareholders](index=15&type=section&id=Interests%20Discloseable%20Under%20the%20Securities%20and%20Futures%20Ordinance%20and%20Major%20Shareholders) As of June 30, 2025, You Shen International Group Limited, Ms. Zhou Shuxian, and Mr. Xu Zonglin were major shareholders, holding **43.5%**, **18.5%**, and **9.1%** long positions respectively, excluding directors Major Shareholders' Long Positions in Shares (June 30, 2025) | Shareholder Name | Capacity | Number of Shares | Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | You Shen Group | Beneficial Owner | 282,750,000 | 43.5% | | Ms. Zhou Shuxian | Beneficial Owner | 120,160,000 | 18.5% | | Mr. Xu Zonglin | Beneficial Owner | 59,144,000 | 9.1% | - The interest of You Shen Group is associated with the interests of Executive Director Mr. Zheng Ping and his spouse Ms. Kong Xiaoling[44](index=44&type=chunk) [Share Option Scheme](index=16&type=section&id=Share%20Option%20Scheme) The Company adopted a new 2022 Share Option Scheme on June 30, 2022, with a ten-year validity, to reward eligible participants, capped at **10% of issued shares** and **1% for any single participant within 12 months**, with no options granted as of June 30, 2025 - The Company adopted a new Share Option Scheme (the **2022 Share Option Scheme**) on **June 30, 2022**, with a **ten-year validity**, aiming to reward eligible participants who contribute to the Group[46](index=46&type=chunk)[47](index=47&type=chunk) - The scheme limit is **10% of the total issued shares** (**65,000,000 shares**), with a **1% limit** for options granted to any single eligible participant within a 12-month period[46](index=46&type=chunk) - For the six months ended June 30, 2025, **no share options were granted, exercised, lapsed, or cancelled**, and no share options under the 2022 Share Option Scheme were issued[48](index=48&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities or Sale of Treasury Shares](index=18&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities%20or%20Sale%20of%20Treasury%20Shares) For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities, nor held any treasury shares - For the six months ended June 30, 2025, neither the Company nor its subsidiaries **purchased, sold, or redeemed any of the Company's listed securities**, nor held any treasury shares[49](index=49&type=chunk) [Compliance with the Corporate Governance Code](index=18&type=section&id=Compliance%20with%20the%20Corporate%20Governance%20Code) The Company adopted the Corporate Governance Code in Appendix C1 of the Listing Rules, complying with all provisions during the reporting period except for Code Provision C.2.1, where Mr. Zheng Ping holds both Chairman and CEO roles, which the Board believes facilitates swift decision-making - The Company has adopted the Corporate Governance Code in **Appendix C1 of the Listing Rules** and complied with all code provisions during the reporting period[50](index=50&type=chunk) - Deviation from Code Provision C.2.1: The roles of Chairman and Chief Executive Officer are combined and held by **Mr. Zheng Ping**, which the Board believes facilitates prompt and efficient decision-making and implementation[51](index=51&type=chunk) [Compliance with the Model Code](index=18&type=section&id=Compliance%20with%20the%20Model%20Code) The Company adopted the Model Code in Appendix C3 of the Listing Rules as the code of conduct for directors' securities transactions, with all directors confirming compliance for the six months ended June 30, 2025 - The Company has adopted the Model Code in **Appendix C3 of the Listing Rules** as the code of conduct for directors' securities transactions[52](index=52&type=chunk) - All Directors confirmed compliance with the required standards of the Model Code for the six months ended June 30, 2025[52](index=52&type=chunk) [Competition and Conflicts of Interest](index=19&type=section&id=Competition%20and%20Conflicts%20of%20Interest) As of the report date, no director or their associates held any direct or indirect interests in businesses competing or potentially competing with the Group, nor were there any other conflicts of interest - As of the date of this report, **no Director or their associates** had any direct or indirect interests in any business competing or potentially competing with the Group's business, nor were there any other conflicts of interest[53](index=53&type=chunk) [Nomination Committee](index=19&type=section&id=Nomination%20Committee) The Company established a Nomination Committee, chaired by Mr. Chen Lifan, primarily responsible for recommending suitable directors and management to the Board to enhance corporate strategy - The Company has established a Nomination Committee, chaired by **Mr. Chen Lifan**, with members including Mr. He Binhui and Ms. Guo Ying[54](index=54&type=chunk) - Its primary responsibility is to make recommendations to the Board regarding the appointment of suitable directors and management (including skills, knowledge, and experience) to enhance the Company's corporate strategy[54](index=54&type=chunk) [Board Diversity Policy](index=19&type=section&id=Board%20Diversity%20Policy) The Board adopted and revised its Diversity Policy in 2019 and 2023, respectively, aiming to enhance company performance, optimize leadership structure, and promote long-term development by considering gender, age, race, cultural and educational background, professional skills, and occupational experience, with the Nomination Committee making appointment decisions based on overall merits - The Board adopted its Diversity Policy in **2019** and revised it in **2023**, aiming to enhance company performance, optimize leadership structure, improve talent quality, and promote the Group's long-term development[55](index=55&type=chunk) - Candidate selection will be based on a range of diversity criteria, including but not limited to **gender, age, race, cultural and educational background, professional skills, occupational experience, management level, and length of service**[55](index=55&type=chunk) [Remuneration Committee](index=19&type=section&id=Remuneration%20Committee) The Company established a Remuneration Committee, chaired by Ms. Guo Ying, primarily responsible for recommending remuneration policies and structures for directors and senior management to the Board, and determining their specific remuneration packages - The Company has established a Remuneration Committee, chaired by **Ms. Guo Ying**, with members including Mr. He Binhui and Mr. Chen Lifan[56](index=56&type=chunk) - Its primary responsibility is to make recommendations to the Board regarding the Group's remuneration policies and structures for directors and senior management, and to determine their specific remuneration packages[56](index=56&type=chunk) [Audit Committee](index=20&type=section&id=Audit%20Committee) The Company established an Audit Committee, comprising three independent non-executive directors with Mr. He Binhui as Chairman, responsible for reviewing financial reporting, internal controls, and risk management systems, and serving as a key liaison between the Board and auditors, deeming current systems adequate and effective - The Company has established an Audit Committee, comprising three independent non-executive directors: **Mr. He Binhui (Chairman)**, Ms. Guo Ying, and Mr. Chen Lifan[57](index=57&type=chunk) - The Committee is responsible for reviewing the financial reporting process and the adequacy and effectiveness of the Group's internal control and risk management systems[57](index=57&type=chunk) - The Audit Committee believes that the Group's current internal control and risk management systems are **adequate and effective**[57](index=57&type=chunk) [Review of Interim Results](index=20&type=section&id=Review%20of%20Interim%20Results) The Audit Committee reviewed the Company's unaudited consolidated results and interim report for the six months ended June 30, 2025, discussing accounting principles, practices, internal controls, and financial reporting matters with management - The Audit Committee has reviewed the Company's **unaudited consolidated results** and this interim report for the six months ended June 30, 2025[58](index=58&type=chunk) - The Committee, together with management, reviewed the accounting principles and practices adopted by the Group and discussed internal controls and financial reporting matters[58](index=58&type=chunk) Unaudited Interim Condensed Consolidated Financial Information This section presents Shuanghua Holdings Limited's unaudited interim condensed consolidated financial statements for the six months ended June 30, 2025, including the statement of profit or loss and other comprehensive income, statement of financial position, statement of changes in equity, and statement of cash flows, providing an overview of the Company's financial performance during the reporting period [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=21&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group reported **RMB 12.8 million in revenue**, **RMB 1.1 million in gross profit**, a **loss attributable to owners of RMB 2.1 million**, and a **basic loss per share of 0.3 cents**, reflecting significant declines in revenue and gross profit but a narrowed loss compared to the prior period Profit or Loss and Other Comprehensive Income Overview | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 12,789 | 60,563 | | Cost of sales | (11,670) | (56,124) | | Gross Profit | 1,119 | 4,439 | | Other income, gains and losses | 3,005 | 2,090 | | Reversal of impairment loss on trade receivables | 2,676 | 112 | | Selling and distribution costs | (938) | (916) | | Administrative expenses | (8,257) | (8,896) | | Interest expenses | (3) | (12) | | Loss before tax | (2,398) | (3,183) | | Income tax recoverable | 283 | – | | Total comprehensive loss for the period | (2,115) | (3,183) | | Loss Attributable to Owners of Parent | (2,115) | (3,183) | | Basic and diluted loss per share | (0.3) cents | (0.5) cents | [Interim Condensed Consolidated Statement of Financial Position](index=22&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets were **RMB 279.3 million**, slightly up from year-end 2024, with non-current assets primarily comprising property, plant and equipment, investment properties, and right-of-use assets; current assets saw increases in cash and cash equivalents and financial assets at fair value, while total liabilities slightly rose due to increased trade payables Financial Position Overview (June 30, 2025 vs December 31, 2024) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Assets** | | | | Total non-current assets | 169,556 | 172,569 | | Total current assets | 109,783 | 105,750 | | **Total assets** | **279,339** | **278,319** | | **Liabilities** | | | | Total current liabilities | 19,487 | 16,069 | | Total non-current liabilities | 1,269 | 1,552 | | **Total liabilities** | **20,756** | **17,621** | | **Equity** | | | | Net assets/Total equity | 258,583 | 260,698 | - Trade receivables and bills receivable decreased from **RMB 11,954 thousand** at year-end 2024 to **RMB 7,234 thousand**[61](index=61&type=chunk) - Cash and cash equivalents increased from **RMB 79,934 thousand** at year-end 2024 to **RMB 81,520 thousand**[61](index=61&type=chunk) - Trade payables increased from **RMB 3,980 thousand** at year-end 2024 to **RMB 8,587 thousand**[61](index=61&type=chunk) [Interim Condensed Consolidated Statement of Changes in Equity](index=24&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, equity attributable to owners of the parent decreased by **RMB 2.1 million** due to the loss for the period, from **RMB 260.7 million** as of January 1, 2025, to **RMB 258.6 million** Equity Changes Overview | Metric | January 1, 2025 (RMB thousand) | Loss and total comprehensive income for the period (RMB thousand) | June 30, 2025 (RMB thousand) | | :--- | :--- | :--- | :--- | | Equity Attributable to Owners of Parent | 260,694 | (2,115) | 258,579 | | Non-controlling Interests | 4 | – | 4 | | **Total Equity** | **260,698** | **(2,115)** | **258,583** | [Interim Condensed Consolidated Statement of Cash Flows](index=25&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, the Group generated **RMB 3.3 million** in net cash from operating activities, had **RMB 1.7 million** in net cash outflow from investing activities, and **RMB 3 thousand** in net cash outflow from financing activities, resulting in a **net increase of RMB 1.6 million** in cash and cash equivalents Cash Flow Overview | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Net cash generated from operating activities | 3,269 | 28,856 | | Net cash used in investing activities | (1,680) | (1,151) | | Net cash used in financing activities | (3) | (383) | | Net increase in cash and cash equivalents | 1,586 | 27,322 | | Cash and cash equivalents at beginning of period | 79,934 | 65,349 | | Cash and cash equivalents at end of period | 81,520 | 92,671 | - Net cash generated from operating activities significantly decreased year-on-year, reflecting increased pressure on business operating cash flow[65](index=65&type=chunk) Notes to the Interim Condensed Consolidated Financial Statements This section provides detailed notes to the interim condensed consolidated financial statements, covering company and group information, basis of preparation, accounting standards application, operating segment information, revenue breakdown, loss before tax details, income tax, dividends, loss per share, key assets (property, plant and equipment, right-of-use assets, financial assets), receivables, cash, payables, capital commitments, related party transactions, and fair value measurement of financial instruments, offering essential context and details for understanding the financial data [Company and Group Information](index=26&type=section&id=Company%20and%20Group%20Information) Shuanghua Holdings Limited, incorporated in the Cayman Islands in 2010, primarily engages in supply chain management and food supply in China, with You Shen International Group Limited, incorporated in the British Virgin Islands, as its parent and ultimate holding company - The Company was incorporated in the **Cayman Islands** on **November 19, 2010**[66](index=66&type=chunk) - The Group is principally engaged in supply chain management business based on its own cold storage and properties, and food supply business of high-end agricultural products like fruits, both domestically and internationally[66](index=66&type=chunk) - The Company's parent and ultimate holding company is **You Shen International Group Limited**, incorporated in the British Virgin Islands[66](index=66&type=chunk) [Basis of Preparation](index=27&type=section&id=Basis%20of%20Preparation) These interim condensed consolidated financial statements are prepared in accordance with HKAS 34 'Interim Financial Reporting' and Listing Rules disclosure requirements, using the historical cost convention and presented in RMB, and should be read in conjunction with the 2024 annual financial statements - These interim condensed consolidated financial statements are prepared in accordance with **Hong Kong Accounting Standard 34 'Interim Financial Reporting'** and the applicable disclosure requirements of the Listing Rules[67](index=67&type=chunk) - The statements are prepared under the **historical cost convention** (except for certain financial assets) and presented in **RMB**[67](index=67&type=chunk) [Application of Revised Hong Kong Financial Reporting Standards](index=28&type=section&id=Application%20of%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards) The accounting policies and calculation methods used in the interim condensed consolidated financial statements for the six months ended June 30, 2025, are consistent with the 2024 annual financial statements, except for changes due to new and revised HKFRSs effective from January 1, 2025 (e.g., amendments to HKAS 21), which had no significant impact on the Group's accounting policies - The accounting policies for the six months ended June 30, 2025, are consistent with the 2024 annual financial statements, except for the application of new and revised Hong Kong Financial Reporting Standards (HKFRSs) effective for annual periods beginning on or after **January 1, 2025**[68](index=68&type=chunk) - The revised HKFRSs (e.g., amendments to HKAS 21) had **no significant impact** on the Group's accounting policies[68](index=68&type=chunk) [Operating Segment Information](index=29&type=section&id=Operating%20Segment%20Information) The Group's operations are segmented into supply chain management and food supply based on internal reports reviewed by the chief operating decision maker; in H1 2025, both segments saw significant revenue declines, with food supply's gross profit near zero, all revenue and non-current assets originated from mainland China, and three major customers contributed over **10% of total revenue** during the period - The Group's operating segments include supply chain management business (based on its own cold storage and properties) and food supply business (high-end agricultural products like fruits, both domestically and internationally)[69](index=69&type=chunk) Operating Segment Revenue and Results (RMB thousand) | Segment | H1 2025 Revenue | H1 2024 Revenue | H1 2025 Segment Results | H1 2024 Segment Results | | :--- | :--- | :--- | :--- | :--- | | Food Supply Business | 6,326 | 47,032 | 7 | 620 | | Supply Chain Management Business | 6,463 | 13,531 | 1,112 | 3,819 | | **Total** | **12,789** | **60,563** | **1,119** | **4,439** | - All of the Group's revenue and non-current assets (excluding financial instruments) are located in its operating region, **mainland China**[72](index=72&type=chunk)[73](index=73&type=chunk) Major Customer Revenue Contribution (RMB thousand) | Customer | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Customer A | 6,265 | – | | Customer B | 3,179 | – | | Customer C | 1,318 | – | | Customer D | – | 19,851 | | Customer E | – | 19,581 | | **Total** | **10,762** | **39,432** | [Revenue, Other Income, Gains and Losses](index=32&type=section&id=Revenue%2C%20Other%20Income%2C%20Gains%20and%20Losses) In H1 2025, the Group's total revenue was **RMB 12.8 million**, comprising **RMB 1.8 million** from supply chain management services, **RMB 6.3 million** from food supply, and **RMB 4.6 million** from rental income; total other income, gains, and losses amounted to **RMB 3.0 million**, primarily from bank interest income and fair value changes of financial assets Revenue Analysis (RMB thousand) | Revenue Source | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Supply Chain Management: Supply Chain Services | 1,835 | 3,124 | | Food Supply | 6,326 | 47,032 | | Supply Chain Management: Rental | 4,628 | 10,407 | | **Total Revenue** | **12,789** | **60,563** | Other Income, Gains and Losses Analysis (RMB thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Bank interest income | 1,457 | 1,392 | | Fair value changes of financial assets | 1,320 | 1,132 | | Exchange (losses)/gains, net | (172) | 275 | | Others | 400 | (709) | | **Total** | **3,005** | **2,090** | - Regarding revenue recognition timing, supply chain services revenue is recognized **'over time'**, while food supply revenue is recognized **'at a point in time'**[80](index=80&type=chunk) [Loss Before Tax](index=35&type=section&id=Loss%20Before%20Tax) For the six months ended June 30, 2025, the Group's loss before tax narrowed to **RMB 2.4 million** from **RMB 3.2 million** in the prior period, primarily influenced by cost of inventories sold, depreciation, and employee benefit expenses, with a positive impact from the reversal of impairment loss on trade receivables Components of Loss Before Tax (RMB thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Cost of inventories sold | 6,319 | 46,412 | | Depreciation of property, plant and equipment | 2,831 | 2,873 | | Depreciation of investment properties | 2,904 | 2,875 | | Depreciation of right-of-use assets | 277 | 644 | | Reversal of impairment loss on trade receivables | (2,676) | (112) | | Employee benefit expenses (excluding directors' and chief executive's remuneration) | 2,460 | 3,341 | - Employee benefit expenses (excluding directors' and chief executive's remuneration) decreased from **RMB 3,341 thousand** in H1 2024 to **RMB 2,460 thousand** in H1 2025[84](index=84&type=chunk) [Income Tax](index=35&type=section&id=Income%20Tax) For the six months ended June 30, 2025, the Group recorded income tax recoverable of approximately **RMB 283 thousand**, compared to nil in the prior period, with income tax paid on a profit entity basis in the respective jurisdictions of Group members Income Tax Overview (RMB thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Current tax: Expense for the period | – | – | | Deferred tax | (283) | – | | **Total income tax recoverable for the period** | **(283)** | **–** | - The Group calculates its income tax expense for the period using the tax rate applicable to the expected total annual earnings[85](index=85&type=chunk) [Dividends](index=36&type=section&id=Dividends) The Board does not recommend the payment of a final dividend for the year ended December 31, 2024, or an interim dividend for the six months ended June 30, 2025 - The Board does **not recommend** the payment of a final dividend for the year ended December 31, 2024, or an interim dividend for the six months ended June 30, 2025[86](index=86&type=chunk) [Loss Per Share Attributable to Ordinary Equity Holders of the Parent](index=36&type=section&id=Loss%20Per%20Share%20Attributable%20to%20Ordinary%20Equity%20Holders%20of%20the%20Parent) For the six months ended June 30, 2025, the Group's basic loss per share narrowed to **0.3 cents** from **0.5 cents** in the prior period, calculated based on the loss attributable to ordinary equity holders of the parent and **650,000,000 issued ordinary shares**, with no potential dilutive ordinary shares during the period - For the six months ended June 30, 2025, the basic loss per share was **0.3 cents** (2024: **0.5 cents**)[87](index=87&type=chunk) - Loss per share is calculated based on the loss attributable to ordinary equity holders of the parent for the period and the **650,000,000 ordinary shares** in issue during the period[87](index=87&type=chunk) - The Group had **no potential dilutive ordinary shares** in issue during the period[87](index=87&type=chunk) [Property, Plant and Equipment](index=37&type=section&id=Property%2C%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the Group's additions to property, plant and equipment amounted to **RMB 1.7 million**, primarily for cold storage area construction, with no transfers to investment properties or disposals, and all buildings remaining unpledged Cost of Additions to Property, Plant and Equipment (RMB thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Additions | 1,680 | 1,274 | - There were **no transfers of property, plant and equipment to investment properties or disposals** during the period[88](index=88&type=chunk) - As of June 30, 2025, **all of the Group's buildings were unpledged**[89](index=89&type=chunk) [Right-of-use Assets](index=37&type=section&id=Right-of-use%20Assets) For the six months ended June 30, 2025, the Group made no transfers of right-of-use assets to investment properties - For the six months ended June 30, 2025, the Group made **no transfers of right-of-use assets to investment properties**[90](index=90&type=chunk) [Financial Assets at Fair Value Through Profit or Loss](index=37&type=section&id=Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of June 30, 2025, the Group's financial assets at fair value through profit or loss amounted to **RMB 9.6 million**, primarily consisting of listed equity investments in Bank of Shanghai, which are fair valued based on market quotations Financial Assets at Fair Value (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Listed equity investments | 9,588 | 8,268 | - The listed equity investments are equity investments in **Bank of Shanghai**, measured at fair value based on market quotations of the investee company[91](index=91&type=chunk) [Trade Receivables and Bills Receivable](index=38&type=section&id=Trade%20Receivables%20and%20Bills%20Receivable) As of June 30, 2025, the Group's net trade receivables and bills receivable decreased to **RMB 7.2 million** from **RMB 12.0 million** at year-end 2024; credit terms typically range from **30 to 90 days**, extendable up to **1 year** for major customers, with strict control over outstanding receivables and no significant credit concentration risk Trade Receivables and Bills Receivable (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade receivables | 25,052 | 32,447 | | Bills receivable | 2 | 3 | | Impairment allowance | (17,820) | (20,496) | | **Net amount** | **7,234** | **11,954** | - The credit period for trade receivables generally ranges from **30 to 90 days**, extendable up to **1 year** for major customers[92](index=92&type=chunk) - The Group strives to strictly control its outstanding trade receivables and has **no significant credit concentration risk**[92](index=92&type=chunk) Ageing Analysis of Trade Receivables (net of impairment allowance, RMB thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 month | 3,544 | 10,181 | | 1 to 3 months | – | – | | 3 to 12 months | – | 76 | | Over 12 months | 3,688 | 1,694 | | **Total** | **7,232** | **11,951** | [Cash and Cash Equivalents and Restricted Term Deposits](index=40&type=section&id=Cash%20and%20Cash%20Equivalents%20and%20Restricted%20Term%20Deposits) As of June 30, 2025, the Group's cash and cash equivalents totaled **RMB 81.5 million**, with **RMB 42.2 million** denominated in RMB, which is not freely convertible but can be exchanged through authorized banks; bank balances are deposited with reputable banks and earn interest at floating rates Cash and Cash Equivalents (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | 81,520 | 79,934 | - As of June 30, 2025, RMB-denominated cash and cash equivalents amounted to **RMB 42,175 thousand**[94](index=94&type=chunk) - RMB is **not freely convertible** into other currencies but can be exchanged through banks authorized to conduct foreign exchange business[94](index=94&type=chunk) [Trade Payables](index=40&type=section&id=Trade%20Payables) As of June 30, 2025, the Group's trade payables significantly increased to **RMB 8.6 million** from **RMB 4.0 million** at year-end 2024; trade payables are interest-free with an average credit period of **three months** Trade Payables (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables | 8,587 | 3,980 | Ageing Analysis of Trade Payables (RMB thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 month | 5,145 | 403 | | 1 to 3 months | – | 71 | | 3 to 6 months | – | 76 | | 6 to 12 months | – | – | | Over 12 months | 3,442 | 3,430 | | **Total** | **8,587** | **3,980** | - Trade payables are **interest-free**, with an average credit period of **three months**[96](index=96&type=chunk) [Capital Commitments](index=41&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group's contracted but unprovided capital commitments amounted to approximately **RMB 1.0 million**, primarily for property, plant and equipment, representing a significant decrease from **RMB 7.3 million** at year-end 2024 Capital Commitments (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Contracted but not provided for: Property, plant and equipment | 1,000 | 7,262 | [Related Party Transactions](index=42&type=section&id=Related%20Party%20Transactions) For the six months ended June 30, 2025, the Group paid **RMB 286 thousand** in office rental fees to Shanghai Automata Investment Co., Ltd., a transaction based on mutually agreed prices, with Director Ms. Kong Xiaoling having an investment in Shanghai Automata; total remuneration for key management personnel was **RMB 967 thousand** Related Party Transactions (RMB thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Office rental fees paid to Shanghai Automata | 286 | 383 | - Director **Ms. Kong Xiaoling** has an investment in Shanghai Automata Investment Co., Ltd[100](index=100&type=chunk) Key Management Personnel Remuneration (RMB thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Short-term employee benefits | 929 | 1,080 | | Pension scheme contributions | 38 | 92 | | **Total** | **967** | **1,172** | [Financial Instruments by Category](index=43&type=section&id=Financial%20Instruments%20by%20Category) As of June 30, 2025, the Group's total financial assets were **RMB 100.4 million**, comprising **RMB 9.6 million** in financial assets at fair value through profit or loss and **RMB 90.8 million** in financial assets measured at amortized cost; total financial liabilities were **RMB 10.7 million**, mainly trade payables and financial liabilities included in other payables and accrued expenses Financial Assets by Category (RMB thousand) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Financial assets at fair value through profit or loss | 9,588 | 8,268 | | Financial assets debt instruments at fair value through other comprehensive income | 2 | 3 | | Financial assets measured at amortised cost | 90,807 | 93,840 | | **Total** | **100,397** | **102,111** | Financial Liabilities by Category (RMB thousand) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables | 8,587 | 3,980 | | Financial liabilities included in other payables and accrued expenses | 2,158 | 2,089 | | **Total** | **10,745** | **6,069** | [Fair Value and Fair Value Hierarchy of Financial Instruments](index=45&type=section&id=Fair%20Value%20and%20Fair%20Value%20Hierarchy%20of%20Financial%20Instruments) The Group's financial instruments' carrying amounts approximate their fair values, with fair value measurements categorized into a three-level hierarchy where listed equity investments are Level 1 (quoted prices in active markets) and bills receivable are Level 2 (observable inputs); no transfers between fair value hierarchy levels occurred during the period for financial assets and liabilities - All carrying amounts of the Group's financial instruments approximate their fair values[106](index=106&type=chunk) - The fair value of listed equity investments is calculated based on market quotations, classified as **Level 1 measurement**[107](index=107&type=chunk)[108](index=108&type=chunk) - The fair value of bills receivable is calculated by discounting expected future cash flows, classified as **Level 2 measurement**[107](index=107&type=chunk)[108](index=108&type=chunk) - During the period, there were **no transfers** between Level 1 and Level 2, nor any transfers into or out of Level 3 for fair value measurements of financial assets and financial liabilities[111](index=111&type=chunk) [Approval of Interim Condensed Consolidated Financial Statements](index=47&type=section&id=Approval%20of%20Interim%20Condensed%20Consolidated%20Financial%20Statements) These interim condensed consolidated financial statements were approved and authorized for issue by the Board of Directors on August 29, 2025 - These interim condensed consolidated financial statements were **approved and authorized for issue by the Board of Directors on August 29, 2025**[112](index=112&type=chunk)

[Condensed Consolidated Statement of Profit or Loss](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) This statement presents the group's financial performance for the six months ended August 31, 2025, showing profit for the period and basic earnings per share Condensed Consolidated Statement of Profit or Loss (For the six months ended August 31, 2025) | Indicator | August 31, 2025 (HKD '000) | August 31, 2024 (HKD '000) | | :--- | :--- | :--- | | Revenue | 897,143 | 860,321 | | Net interest income | 698,847 | 669,955 | | Operating income | 846,814 | 804,215 | | Operating expenses | (371,184) | (378,246) | | Operating profit before impairment losses and provisions | 475,630 | 425,969 | | Impairment losses and provisions | (206,031) | (236,101) | | Profit before tax | 281,327 | 203,211 | | Profit for the period | 233,600 | 170,361 | | Basic earnings per share | 55.78 HK cents | 40.68 HK cents | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement details the profit for the period and other comprehensive income components, leading to the total comprehensive income for the six months ended August 31, 2025 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended August 31, 2025) | Indicator | August 31, 2025 (HKD '000) | August 31, 2024 (HKD '000) | | :--- | :--- | :--- | | Profit for the period | 233,600 | 170,361 | | Fair value gain on equity instruments at fair value through other comprehensive income | 4,692 | 5,333 | | Exchange differences on translation of foreign operations | 5,741 | 2,261 | | Fair value adjustment of cash flow hedges, net of tax | (13,093) | (10,741) | | Fair value adjustment of cash flow hedges reclassified to profit or loss | 2,515 | (8,665) | | Other comprehensive expense for the period | (145) | (11,812) | | Total comprehensive income for the period | 233,455 | 158,549 | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement presents the group's assets, liabilities, and equity as of August 31, 2025, highlighting key financial positions Condensed Consolidated Statement of Financial Position (As at August 31, 2025) | Indicator | August 31, 2025 (HKD '000) | February 28, 2025 (HKD '000) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Loans and receivables from customers | 1,402,593 | 1,459,302 | | **Current Assets** | | | | Loans and receivables from customers | 5,866,324 | 5,605,137 | | Bank balances and cash | 246,189 | 226,220 | | **Current Liabilities** | | | | Payables and accruals | 267,726 | 226,351 | | Borrowings from direct holding company | 955,000 | 900,000 | | Bank borrowings | 1,207,297 | 1,015,149 | | **Equity and Reserves** | | | | Total equity | 4,379,925 | 4,251,161 | | **Non-current Liabilities** | | | | Bank borrowings | 980,000 | 1,239,685 | [Condensed Consolidated Statement of Changes in Equity](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement outlines the changes in the group's equity and reserves for the six months ended August 31, 2025, including profit, other comprehensive income, and dividends Condensed Consolidated Statement of Changes in Equity (For the six months ended August 31, 2025) | Item | Share Capital (HKD '000) | Investment Revaluation Reserve (HKD '000) | Hedging Reserve (HKD '000) | Translation Reserve (HKD '000) | Accumulated Profits (HKD '000) | Total (HKD '000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | As at March 1, 2024 | 269,477 | 68,821 | 35,582 | (16,468) | 3,710,581 | 4,067,993 | | Profit for the period | – | – | – | – | 170,361 | 170,361 | | Total comprehensive income (expense) for the period | – | 5,333 | (19,406) | 2,261 | 170,361 | 158,549 | | Final dividend paid (2023/24) | – | – | – | – | (100,504) | (100,504) | | As at August 31, 2024 | 269,477 | 74,154 | 16,176 | (14,207) | 3,780,438 | 4,126,038 | | As at March 1, 2025 | 269,477 | 82,358 | 8,552 | (19,277) | 3,910,051 | 4,251,161 | | Profit for the period | – | – | – | – | 233,600 | 233,600 | | Total comprehensive income (expense) for the period | – | 4,692 | (10,578) | 5,741 | 233,600 | 233,455 | | Final dividend paid (2024/25) | – | – | – | – | (104,691) | (104,691) | | As at August 31, 2025 | 269,477 | 87,050 | (2,026) | (13,536) | 4,038,960 | 4,379,925 | [Condensed Consolidated Statement of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This statement summarizes the cash flows from operating, investing, and financing activities for the six months ended August 31, 2025 Condensed Consolidated Statement of Cash Flows (For the six months ended August 31, 2025) | Item | August 31, 2025 (HKD '000) | August 31, 2024 (HKD '000) | | :--- | :--- | :--- | | Net cash generated from (used in) operating activities | 172,425 | (201) | | Net cash used in investing activities | (8,861) | (29,065) | | Net cash generated from (used in) financing activities | (146,934) | 54,979 | | Net increase in cash and cash equivalents | 16,630 | 25,713 | | Effect of exchange rate changes | 249 | (16) | | Cash and cash equivalents at beginning of period | 244,090 | 271,658 | | Cash and cash equivalents at end of period | 260,969 | 297,355 | [Notes to the Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements [1. Basis of Preparation](index=7&type=section&id=1.%20Basis%20of%20Preparation) This note details the accounting standards and regulations used for preparing the condensed consolidated financial statements - These condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and applicable disclosure requirements of the HKEX Listing Rules[8](index=8&type=chunk) - The financial statements for the year ended February 28, 2025, have been filed with the Hong Kong Companies Registry, and the auditor's report was unqualified[8](index=8&type=chunk)[9](index=9&type=chunk) [2. Accounting Policies](index=7&type=section&id=2.%20Accounting%20Policies) This note describes the principal accounting policies applied in the preparation of the condensed consolidated financial statements - The condensed consolidated financial statements are prepared on a historical cost basis, with certain financial instruments measured at fair value[10](index=10&type=chunk) - Revisions to Hong Kong Financial Reporting Standards, mandatory for periods beginning on or after March 1, 2025, were first applied in this interim period but had no significant impact on financial position or performance[10](index=10&type=chunk)[11](index=11&type=chunk) [3. Revenue](index=8&type=section&id=3.%20Revenue) This note provides a breakdown of the group's revenue by category and business segment for the period Total Revenue Composition (For the six months ended August 31, 2025) | Revenue Category | 2025 (HKD '000) | 2024 (HKD '000) | | :--- | :--- | :--- | | Interest income | 754,456 | 734,492 | | Collection fees and commissions | 67,592 | 62,148 | | Handling fees and late charges | 75,095 | 63,681 | | Total revenue | 897,143 | 860,321 | Revenue by Business Segment (For the six months ended August 31, 2025) | Business Segment | 2025 (HKD '000) | 2024 (HKD '000) | | :--- | :--- | :--- | | Credit Card | 713,992 | 668,977 | | Personal Loan | 166,697 | 175,961 | | Insurance | 16,454 | 15,383 | | Total | 897,143 | 860,321 | [4. Segment Information](index=9&type=section&id=4.%20Segment%20Information) This note presents financial information by business and geographical segments, highlighting performance contributions - The group's operating and reportable segments include credit card services, personal loan financing, and insurance agency and advisory services[13](index=13&type=chunk) Revenue and Results by Business Segment (For the six months ended August 31, 2025) | Business Segment | Revenue (HKD '000) | Segment Results (HKD '000) | | :--- | :--- | :--- | | Credit Card | 713,992 | 264,568 | | Personal Loan | 166,697 | 11,503 | | Insurance | 16,454 | 7,271 | | Consolidated Total | 897,143 | 283,342 | Revenue and Results by Geographical Segment (For the six months ended August 31, 2025) | Region | Revenue (HKD '000) | Segment Results (HKD '000) | | :--- | :--- | :--- | | Hong Kong | 872,057 | 293,318 | | Mainland China | 25,086 | (9,976) | | Consolidated Total | 897,143 | 283,342 | [5. Interest Income](index=11&type=section&id=5.%20Interest%20Income) This note details the composition of interest income, primarily from customer loans, for the reporting period Interest Income Composition (For the six months ended August 31, 2025) | Source | 2025 (HKD '000) | 2024 (HKD '000) | | :--- | :--- | :--- | | Non-credit impaired customer loans | 741,608 | 723,887 | | Credit impaired customer loans | 12,060 | 10,212 | | Time deposits and bank balances | 788 | 393 | | Total | 754,456 | 734,492 | [6. Interest Expense](index=11&type=section&id=6.%20Interest%20Expense) This note outlines the components of interest expense, including borrowings from the direct holding company and banks Interest Expense Composition (For the six months ended August 31, 2025) | Source | 2025 (HKD '000) | 2024 (HKD '000) | | :--- | :--- | :--- | | Interest on borrowings from direct holding company | 7,853 | 17,101 | | Interest on bank borrowings | 41,674 | 47,849 | | Interest on lease liabilities | 2,417 | 2,857 | | Net interest expense (income) on interest rate swap contracts | 3,665 | (3,270) | | Total | 55,609 | 64,537 | [7. Other Income](index=11&type=section&id=7.%20Other%20Income) This note presents the breakdown of other income, mainly from marketing support funds, for the reporting period Other Income Composition (For the six months ended August 31, 2025) | Source | 2025 (HKD '000) | 2024 (HKD '000) | | :--- | :--- | :--- | | Marketing support funds | 3,713 | 7,758 | | Others | 2,206 | 555 | | Total | 5,919 | 8,313 | [8. Other Gains and Losses](index=12&type=section&id=8.%20Other%20Gains%20and%20Losses) This note details the net other gains and losses, including exchange differences and disposal losses, for the period Other Gains and Losses Composition (For the six months ended August 31, 2025) | Item | 2025 (HKD '000) | 2024 (HKD '000) | | :--- | :--- | :--- | | Exchange gain on hedging instruments realized from cash flow hedging reserve | 1,150 | 5,395 | | Exchange loss on bank borrowings | (1,150) | (5,395) | | Other net exchange losses | (117) | (50) | | Net ineffective portion of cash flow hedges | (4) | 202 | | Loss on disposal of property, plant and equipment | (518) | (34) | | Total | (639) | 118 | [9. Operating Expenses](index=12&type=section&id=9.%20Operating%20Expenses) This note provides a detailed breakdown of operating expenses, including depreciation, amortization, and staff costs Operating Expenses Composition (For the six months ended August 31, 2025) | Item | 2025 (HKD '000) | 2024 (HKD '000) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 22,641 | 20,495 | | Amortization of intangible assets | 4,079 | 3,030 | | Depreciation of right-of-use assets | 26,464 | 30,927 | | Expenses relating to short-term leases | 1,010 | 1,614 | | General administrative expenses | 115,978 | 113,306 | | Marketing and advertising expenses | 39,657 | 50,818 | | Other operating expenses | 38,945 | 38,828 | | Staff costs | 122,410 | 119,228 | | Total | 371,184 | 378,246 | [10. Income Tax Expense](index=13&type=section&id=10.%20Income%20Tax%20Expense) This note details the income tax expense, including current and deferred tax, and applicable tax rates for Hong Kong and Mainland China Income Tax Expense Composition (For the six months ended August 31, 2025) | Item | 2025 (HKD '000) | 2024 (HKD '000) | | :--- | :--- | :--- | | Current tax — Hong Kong profits tax | 49,797 | 37,868 | | Current tax — Mainland China enterprise income tax | 69 | 110 | | Deferred tax | (2,139) | (5,128) | | Total | 47,727 | 32,850 | - Hong Kong profits tax is calculated at a rate of **16.5%**, while Mainland China subsidiaries are subject to a **25%** tax rate, with an effective rate of **5%** for qualifying small-profit enterprises[19](index=19&type=chunk)[20](index=20&type=chunk) [11. Dividends](index=13&type=section&id=11.%20Dividends) This note reports the final dividend paid and the interim dividend declared for the reporting period - The final dividend for FY2024/25 was **25.0 HK cents per share**, totaling **HKD 104,691 thousand**, paid on July 31, 2025[21](index=21&type=chunk) - The Board has declared an interim dividend of **25.0 HK cents per share**, totaling **HKD 104,691 thousand**, payable on November 4, 2025[21](index=21&type=chunk) [12. Earnings Per Share — Basic](index=13&type=section&id=12.%20Earnings%20Per%20Share%20%E2%80%94%20Basic) This note calculates the basic earnings per share based on the profit for the period and the number of ordinary shares Basic Earnings Per Share (For the six months ended August 31, 2025) | Indicator | August 31, 2025 | August 31, 2024 | | :--- | :--- | :--- | | Profit for the period (HKD '000) | 233,600 | 170,361 | | Number of shares issued (shares) | 418,765,600 | 418,765,600 | | Basic earnings per share (HK cents) | 55.78 | 40.68 | [13. Loans and Receivables from Customers](index=14&type=section&id=13.%20Loans%20and%20Receivables%20from%20Customers) This note details the composition and aging analysis of customer loans and receivables, including impairment provisions Loans and Receivables from Customers Composition (As at August 31, 2025) | Item | August 31, 2025 (HKD '000) | February 28, 2025 (HKD '000) | | :--- | :--- | :--- | | Credit card receivables | 5,698,165 | 5,481,474 | | Personal loan receivables | 1,593,666 | 1,631,788 | | Interest and other receivables | 232,154 | 216,116 | | Total loans and receivables from customers | 7,523,985 | 7,329,378 | | Impairment provisions | (255,068) | (264,939) | | Net amount | 7,268,917 | 7,064,439 | - As of the reporting period end, all customer loans and receivables are **unsecured**[23](index=23&type=chunk) Analysis of Gross Balance of Loans and Receivables from Customers (Excluding Impairment Provisions) (As at August 31, 2025) | Stage | August 31, 2025 (HKD '000) | Percentage of Total (%) | February 28, 2025 (HKD '000) | Percentage of Total (%) | | :--- | :--- | :--- | :--- | :--- | | Stage 1 | 7,221,719 | 96.0 | 7,018,669 | 95.8 | | Stage 2 | 51,422 | 0.7 | 65,548 | 0.9 | | Stage 3 | 250,844 | 3.3 | 245,161 | 3.3 | | Total | 7,523,985 | 100.0 | 7,329,378 | 100.0 | [14. Impairment Provisions](index=15&type=section&id=14.%20Impairment%20Provisions) This note provides a breakdown and movement analysis of impairment provisions for various customer loan categories Impairment Provisions Composition (As at August 31, 2025) | Item | August 31, 2025 (HKD '000) | February 28, 2025 (HKD '000) | | :--- | :--- | :--- | | Credit card receivables | 137,610 | 140,479 | | Undrawn credit card facilities | 2,579 | 2,668 | | Personal loan receivables | 109,494 | 116,177 | | Interest and other receivables | 5,385 | 5,615 | | Total | 255,068 | 264,939 | - Impairment provisions for personal loan receivables include **HKD 43,366 thousand** for restructured loans (February 28, 2025: HKD 41,679 thousand)[28](index=28&type=chunk) Analysis of Movement in Impairment Provisions (As at August 31, 2025) | Item | Stage 1 (HKD '000) | Stage 2 (HKD '000) | Stage 3 (HKD '000) | Total (HKD '000) | | :--- | :--- | :--- | :--- | :--- | | As at March 1, 2025 | 149,624 | 24,720 | 90,595 | 264,939 | | Net increase (repayment) in customer loans and receivables | 9,106 | (1,286) | (8,613) | (793) | | Total transfers between stages | 16,885 | (62,066) | 45,181 | – | | Remeasurement of expected credit losses during the period | (25,618) | 58,236 | 174,206 | 206,824 | | Amounts written off as uncollectible | – | – | (216,237) | (216,237) | | As at August 31, 2025 | 150,107 | 19,666 | 85,295 | 255,068 | [15. Prepayments, Deposits and Other Receivables](index=16&type=section&id=15.%20Prepayments,%20Deposits%20and%20Other%20Receivables) This note details the composition of prepayments, deposits, and other receivables, distinguishing between current and non-current portions Prepayments, Deposits and Other Receivables Composition (As at August 31, 2025) | Item | August 31, 2025 (HKD '000) | February 28, 2025 (HKD '000) | | :--- | :--- | :--- | | Deposits for property, plant and equipment | 1,333 | 2,137 | | Deposits for intangible assets | 166 | 23 | | Lease and other deposits | 16,586 | 15,071 | | Prepaid operating expenses | 57,884 | 53,696 | | Other receivables | 53,178 | 30,072 | | Total | 129,147 | 100,999 | | Current portion under current assets | (106,337) | (79,388) | | Amounts due after one year | 22,810 | 21,611 | [16. Payables and Accruals / Contract Liabilities](index=17&type=section&id=16.%20Payables%20and%20Accruals%20%2F%20Contract%20Liabilities) This note provides an aging analysis of payables and accruals, and details contract liabilities including deferred revenue from customer loyalty programs Aging Analysis of Payables (As at August 31, 2025) | Aging | August 31, 2025 (HKD '000) | February 28, 2025 (HKD '000) | | :--- | :--- | :--- | | Within 1 month | 141,166 | 77,449 | | Over 1 month but not exceeding 3 months | 2,018 | 1,044 | | Over 3 months | 1,087 | 429 | | Total | 144,271 | 78,922 | - As at August 31, 2025, deferred revenue from customer loyalty programs included in contract liabilities amounted to **HKD 52,208 thousand** (February 28, 2025: HKD 42,024 thousand)[32](index=32&type=chunk) [17. Bank / Borrowings from Direct Holding Company](index=17&type=section&id=17.%20Bank%20%2F%20Borrowings%20from%20Direct%20Holding%20Company) This note details the group's bank and direct holding company borrowings, including repayment schedules and compliance with financial covenants Bank / Borrowings from Direct Holding Company (As at August 31, 2025) | Item | Bank Borrowings (HKD '000) | Borrowings from Direct Holding Company (HKD '000) | Total (HKD '000) | | :--- | :--- | :--- | :--- | | Repayable within one year | 1,207,297 | 955,000 | 2,162,297 | | Repayable after one year but not exceeding two years | 880,000 | – | 880,000 | | Repayable after two years but not exceeding five years | 100,000 | – | 100,000 | | Total | 2,187,297 | 955,000 | 3,142,297 | - The group secured a new **HKD 300,000 thousand** short-term sustainability-linked loan during the period and complied with financial covenants, including net consolidated equity not less than **HKD 3,000,000 thousand** and an EBITDA to interest expense ratio not less than **3.50 to 1**[33](index=33&type=chunk) [18. Derivative Financial Instruments](index=18&type=section&id=18.%20Derivative%20Financial%20Instruments) This note describes the group's derivative financial instruments, primarily used for hedging, and their credit risk profile Derivative Financial Instruments (As at August 31, 2025) | Item | Assets (HKD '000) | Liabilities (HKD '000) | | :--- | :--- | :--- | | Interest rate swap contracts | 2,946 | 12,459 | | Cross currency interest rate swap contracts | – | 21,707 | | Total | 2,946 | 34,166 | | Current portion | (1,191) | (22,155) | | Non-current portion | 1,755 | 12,011 | - All derivative financial instruments are used for **hedging purposes** and carry limited credit risk as counterparties are highly credit-rated banks[34](index=34&type=chunk) [Management Discussion and Analysis](index=20&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's perspective on the group's operational and financial performance, outlook, and strategies [Business Review](index=20&type=section&id=Business%20Review) This review covers the group's strategic responses to economic challenges, sales performance, and initiatives in credit risk management and AI adoption - Facing economic challenges in Hong Kong and Mainland China, the group adopted a more **conservative sales and receivables growth strategy**, prioritizing maximum returns and mitigating credit risk[38](index=38&type=chunk) - Overall sales increased by **4.4% year-on-year**, primarily driven by growth in credit card sales, with total customer loans and receivables growing by **2.7%**[39](index=39&type=chunk) - The group effectively reduced advertising costs, launched green personal loan products, and actively explored **AI applications** to drive innovation and streamline processes[40](index=40&type=chunk)[41](index=41&type=chunk) [Interim Dividend](index=21&type=section&id=Interim%20Dividend) This section details the interim dividend declared and its alignment with the group's dividend policy - The Board declared an interim dividend of **25.0 HK cents per share** (last year: 24.0 HK cents per share), representing a dividend payout ratio of **44.8%**[43](index=43&type=chunk) - This dividend policy aligns with the group's commitment to distribute no less than **30.0% of net profit** annually[43](index=43&type=chunk) [Financial Review](index=21&type=section&id=Financial%20Review) This review analyzes the group's financial performance, including profit, earnings per share, and key financial ratios for the period Key Financial Performance (For the six months ended August 31, 2025) | Indicator | FY2025/26 H1 (million HKD) | FY2024/25 H1 (million HKD) | Year-on-year Growth (%) | | :--- | :--- | :--- | :--- | | Profit before tax | 281.3 | 203.2 | 38.4 | | Profit after tax | 233.6 | 170.4 | 37.1 | | Earnings per share (HK cents) | 55.78 | 40.68 | 37.1 | - As at August 31, 2025, the **net debt to equity ratio was 0.7**, and equity as a percentage of total assets was **54.2%**[44](index=44&type=chunk) - As at August 31, 2025, net asset value per share (after deducting interim dividend) was **HKD 10.2**[45](index=45&type=chunk) [Consolidated Statement of Profit or Loss Analysis](index=22&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20Analysis) This analysis examines revenue growth, net interest income, operating expenses, and impairment provisions, highlighting key performance drivers - Revenue increased by **4.3% to HKD 897.1 million**, primarily driven by sustained growth in credit card revolving receivables, offsetting a decline in personal loan receivables[46](index=46&type=chunk)[47](index=47&type=chunk) - Net interest income grew by **4.3% to HKD 698.8 million**, with the average funding cost decreasing from **4.1% to 3.4%**[48](index=48&type=chunk) - Total operating expenses decreased by **1.9% to HKD 371.2 million**, improving the cost-to-income ratio from **47.0% to 43.8%**[52](index=52&type=chunk) - Impairment losses and provisions decreased by **12.7% to HKD 206.0 million**, improving the ratio to revenue from **27.4% to 23.0%**[53](index=53&type=chunk) [Consolidated Statement of Financial Position Analysis](index=24&type=section&id=Consolidated%20Statement%20of%20Financial%20Position%20Analysis) This analysis reviews changes in total equity, assets, customer loans, and impairment provisions, assessing the group's financial health - Total equity increased by **3.0% to HKD 4,379.9 million**, and total assets grew to **HKD 8,087.5 million**[54](index=54&type=chunk) - Total customer loans and receivables increased by **2.7% to HKD 7,524.0 million**, with credit card receivables increasing and personal loan receivables decreasing[55](index=55&type=chunk)[56](index=56&type=chunk) - Impairment provisions as a percentage of total customer loans and receivables decreased from **3.6% to 3.4%**[56](index=56&type=chunk) - Bank borrowings and borrowings from the direct holding company remained stable, with total borrowings at **HKD 3,142.3 million** and an average bank borrowing tenor of **0.6 years**[57](index=57&type=chunk)[58](index=58&type=chunk) [Segment Information Analysis](index=26&type=section&id=Segment%20Information%20Analysis) This analysis evaluates the performance of different business and geographical segments, identifying key growth areas and challenges - Credit card business revenue grew by **6.7% to HKD 714.0 million**, with segment results increasing by **24.6% to HKD 264.6 million**[60](index=60&type=chunk) - Personal loan revenue decreased by **5.3% to HKD 166.7 million**, but segment results turned profitable at **HKD 11.5 million** from a loss of HKD 14.5 million in the prior year[61](index=61&type=chunk) - Insurance intermediary business revenue and results increased to **HKD 16.5 million and HKD 7.3 million**, respectively[61](index=61&type=chunk) - Hong Kong business revenue grew by **3.6% to HKD 872.1 million**, with results increasing by **45.7% to HKD 293.3 million**[62](index=62&type=chunk) - Mainland China business revenue increased to **HKD 25.1 million**, but recorded a loss of **HKD 10.0 million** due to deteriorating customer repayment performance[63](index=63&type=chunk) [Outlook](index=27&type=section&id=Outlook) This section outlines the group's future strategies, focusing on market opportunities, operational efficiency, and business development initiatives - The Hong Kong economy is expected to benefit from global interest rate cuts (Fed anticipated to cut by 25 basis points in September) and a recovery in tourism[64](index=64&type=chunk) - The group will focus on maintaining sales and receivables growth, particularly in local and online transactions, and optimizing credit assessment and monitoring processes[64](index=64&type=chunk) - Plans include accelerating the integration of **AI tools** into back-office operations, such as automated data processing and credit risk analysis, to reduce costs and enhance accuracy[65](index=65&type=chunk) - The "One AEON" project will establish an integrated loyalty points platform to enhance customer convenience and loyalty[67](index=67&type=chunk) - Mainland China operations will focus on leveraging the Greater Bay Area's potential, strengthening credit assessment and corporate governance for sustainable growth[67](index=67&type=chunk) [Capital and Equity Management](index=29&type=section&id=Capital%20and%20Equity%20Management) This section describes the group's approach to managing capital, ensuring financial stability, and funding growth while mitigating risks - The group manages capital to ensure continuous operation, build confidence, secure adequate funding, and generate reasonable returns for receivables growth[69](index=69&type=chunk)[72](index=72&type=chunk) Net Debt to Equity Ratio (As at August 31, 2025) | Indicator | August 31, 2025 (HKD '000) | February 28, 2025 (HKD '000) | | :--- | :--- | :--- | | Debt | 3,249,484 | 3,271,202 | | Cash and cash equivalents | (260,969) | (244,090) | | Net debt | 2,988,515 | 3,027,112 | | Equity | 4,379,925 | 4,251,161 | | Net debt to equity ratio | 0.7 | 0.7 | - The group possesses **ample working capital** to meet current needs, with its primary business transacted in HKD, posing no core asset exchange rate fluctuation risk, and utilizes derivative financial instruments to hedge interest rate and exchange rate risks[73](index=73&type=chunk) [Human Resources](index=30&type=section&id=Human%20Resources) This section provides an overview of the group's workforce and its approach to employee recognition and rewards Number of Employees (As at August 31, 2025) | Region | August 31, 2025 (Number) | February 28, 2025 (Number) | | :--- | :--- | :--- | | Hong Kong | 377 | 380 | | Mainland China | 221 | 216 | | Total | 598 | 596 | - The group will continue to recognize and reward employees on a basis similar to that disclosed in the **2024/25 Annual Report**[74](index=74&type=chunk) [Other Information](index=19&type=section&id=Other%20Information) This section includes various disclosures such as share transfer arrangements, corporate governance, and review of financial data [Closure of Register of Members](index=19&type=section&id=Closure%20of%20Register%20of%20Members) This note specifies the dates for the temporary closure of the register of members for interim dividend entitlement - The company's register of members will be closed from **Friday, October 17, 2025, to Monday, October 20, 2025**[35](index=35&type=chunk) - To qualify for the interim dividend, all share transfer documents must be lodged with the share registrar by **4:30 p.m. on Thursday, October 16, 2025**[35](index=35&type=chunk) [Compliance with Corporate Governance Code](index=19&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) This note confirms the company's adherence to the Corporate Governance Code, with a specific disclosure regarding director rotation - The company has complied with the Corporate Governance Code throughout the six months ended August 31, 2025, except for Code Provision B.2.2 (rotation of directors)[36](index=36&type=chunk) - All directors, including executive, non-executive, and independent non-executive directors, are subject to retirement by rotation at each annual general meeting in accordance with the company's articles of association[36](index=36&type=chunk) [Compliance with Model Code for Securities Transactions by Directors](index=19&type=section&id=Compliance%20with%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) This note confirms the directors' compliance with the standard code for securities transactions during the review period - The company has adopted the **Model Code for Securities Transactions by Directors of Listed Issuers** as its own code for directors' securities transactions[37](index=37&type=chunk) - All directors confirmed compliance with the required standards set out in the Model Code and the company's own code for securities transactions during the review period[37](index=37&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=30&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20Listed%20Securities) This note confirms that no listed securities of the company were purchased, sold, or redeemed during the reporting period - During the period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities[75](index=75&type=chunk) [Review of Unaudited Financial Information](index=30&type=section&id=Review%20of%20Unaudited%20Financial%20Information) This note confirms the audit committee's review of the unaudited interim results and the auditor's unmodified review report - The Audit Committee has reviewed the unaudited consolidated interim results for the six months ended August 31, 2025[76](index=76&type=chunk) - The condensed consolidated financial statements have been reviewed by Deloitte Touche Tohmatsu in accordance with Hong Kong Standard on Review Engagements 2410, resulting in an unmodified review report[76](index=76&type=chunk) [Publication of Interim Report on HKEX Website](index=31&type=section&id=Publication%20of%20Interim%20Report%20on%20HKEX%20Website) This note announces the upcoming publication of the interim report on the HKEX and company websites - The group's 2025/26 interim report will be published on the websites of the Hong Kong Stock Exchange and the company in due course[77](index=77&type=chunk) [Board of Directors](index=31&type=section&id=Board%20of%20Directors) This note lists the composition of the Board of Directors, including executive, non-executive, and independent non-executive members - The Board of Directors includes Executive Directors Mr. Wei Aiguo (Managing Director), Mr. Lai Yuk Kwong (Deputy Managing Director), and Ms. Wen Yufang[78](index=78&type=chunk) - Non-executive Directors are Mr. Mishima Shigeki (Chairman) and Ms. Jin Huashu[78](index=78&type=chunk) - Independent Non-executive Directors are Mr. Li Ching Ming, Ms. Sheng Muxian, Ms. Tochi Sunako, and Mr. Choi Bing Chung[78](index=78&type=chunk)

[Management Discussion and Analysis](index=3&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) This section provides an overview of the company's operational and financial performance, market outlook, and strategic initiatives for the reporting period [Business Review](index=3&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) United Energy Group Limited faced challenges in H1 2025 with declining oil prices and a 26.7% decrease in profit attributable to owners, yet achieved stable production growth through active management and new discoveries - In H1 2025, the average Brent crude oil price was **US$72.03 per barrel**, a decrease of approximately **14.04%** from US$83.79 per barrel in H1 2024[7](index=7&type=chunk) Profit Attributable to Owners | Metric | H1 2025 (HK$) | H1 2024 (HK$) | Change (%) | | :--- | :--- | :--- | :--- | | Profit Attributable to Owners | 740,147,000 | 1,010,276,000 | -26.7% | - During the reporting period, the Group drilled a total of **24 wells**, with **8 wells** in Pakistan assets and **16 wells** in Middle East and North Africa assets[7](index=7&type=chunk) - The Group achieved **3 commercial discoveries** in oil and gas exploration, with **1** in Pakistan and **2** in Egypt[8](index=8&type=chunk) Average Daily Production Comparison | Metric | H1 2025 (boe) | H1 2024 (boe) | Growth (%) | | :--- | :--- | :--- | :--- | | Average Operated Daily Production | 187,258 | 171,195 | 9.4% | | Average Working Interest Daily Production | 111,762 | 102,298 | 9.3% | - Cumulative operated production and cumulative working interest production both showed stable growth, primarily due to active management of existing wells and commercial discoveries from new wells[9](index=9&type=chunk) - The Group's reserve life remained at approximately **16 years**[13](index=13&type=chunk) - The central processing facility in Iraq's B9 block, with a daily crude oil processing capacity of **100,000 barrels** and a daily natural gas processing capacity of **130 million cubic feet**, is fully operational, and a **72-kilometer LPG export pipeline** has been successfully constructed[14](index=14&type=chunk) - The Group actively responds to global carbon reduction initiatives, adopting a "dual-driven" strategy to develop traditional fossil energy businesses while promoting clean energy projects, including solar and wind[17](index=17&type=chunk) [Exploration, Development, and Production](index=3&type=section&id=%E5%8B%98%E6%8E%A2%E3%80%81%E9%96%8B%E7%99%BC%E5%8F%8A%E7%94%A2%E5%93%81) The Group made three commercial discoveries and achieved overall production growth in H1 2025, with notable increases in Iraq assets offsetting declines in Pakistan and slight decreases in Egypt - The Group continued its oil and gas exploration efforts, adhering to a "value-driven, small and rich field exploration and discovery" strategy, resulting in **3 commercial discoveries** (1 in Pakistan, 2 in Egypt)[8](index=8&type=chunk) Average Daily Production by Asset | Asset | H1 2025 (boe) | H1 2024 (boe) | Change (%) | | :--- | :--- | :--- | :--- | | Pakistan (Operated) | 44,686 | 54,500 (Est.) | -18.0% | | Pakistan (Working Interest) | 31,571 | 38,349 | -17.7% | | Iraq B9 (Operated) | 101,390 | 74,826 (Est.) | +35.5% | | Iraq B9 (Working Interest) | 60,834 | 44,896 (Est.) | +35.5% | | Iraq Siba (Operated) | 26,604 | 26,315 (Est.) | +1.1% | | Iraq Siba (Working Interest) | 7,981 | 7,894 (Est.) | +1.1% | | Egypt (Operated) | 14,577 | 15,574 (Est.) | -6.4% | | Egypt (Working Interest) | 11,376 | 11,596 (Est.) | -1.9% | - The oil-to-gas ratio in Pakistan assets was approximately **21%**, 5 percentage points lower than the previous year[10](index=10&type=chunk) - The oil-to-gas ratio for Iraq B9 block was **100%**, and for Siba gas field, it was approximately **67%**[11](index=11&type=chunk) - The oil-to-gas ratio for Egypt assets was approximately **99%**[12](index=12&type=chunk) [Core Competencies Analysis](index=5&type=section&id=%E6%A0%B8%E5%BF%83%E7%AB%B6%E7%88%AD%E5%8A%9B%E5%88%86%E6%9E%90) The Group's core strengths include successful exploration, rapid development of large oil fields, industry-leading low-cost operations, excellent HSE performance, and commitment to low-carbon transition and social responsibility - Achieved **3 commercial discoveries** in H1, maintaining a reserve life of nearly **16 years**[13](index=13&type=chunk) - The central processing facility in Iraq's B9 block is fully operational, and a **72-kilometer LPG export pipeline** has been successfully constructed[14](index=14&type=chunk) - The Group is committed to efficient operational management, maintaining an industry-leading low-cost advantage, and possessing a robust financial position with low leverage[15](index=15&type=chunk) - Operational safety is a top priority, with HSE indicators at industry-leading levels and a comprehensive risk prevention and control system established[16](index=16&type=chunk) - Adopting a "dual-driven" strategy, developing traditional fossil energy businesses while promoting clean energy projects (solar and wind)[17](index=17&type=chunk) - High priority on employees, building a diverse international team, and actively investing in local community education, healthcare, and vocational training programs[18](index=18&type=chunk) [Sales and Marketing](index=6&type=section&id=%E9%8A%B7%E5%94%AE%E8%88%87%E5%B8%82%E5%A0%B4) In H1 2025, the Group's cumulative working interest sales of crude oil and condensate increased by 18.9%, but average realized prices fell by 13.6% due to lower Brent crude prices; natural gas sales decreased by 12.3% with a 3.0% price drop, while energy trading sold 896,723 metric tons of petrochemical products - Crude oil sales prices are primarily determined by international benchmark crude oil prices of similar quality, using Brent crude oil prices as a benchmark[19](index=19&type=chunk) - Crude oil from Egyptian assets is sold to the Egyptian National Oil and Gas Company, with prices typically slightly lower than Brent crude oil prices[19](index=19&type=chunk) Crude Oil and Condensate Sales Data | Metric | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Cumulative Working Interest Sales Volume | 15.1 million barrels | 12.7 million barrels | +18.9% | | Average Realized Price | US$68.19/barrel | US$78.93/barrel | -13.6% | - Natural gas sales prices are based on long-term sales agreements negotiated with customers, including a price review mechanism linked to international oil prices[20](index=20&type=chunk) Natural Gas Sales Data | Metric | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Cumulative Working Interest Sales Volume | 5.0 million boe | 5.7 million boe | -12.3% | | Average Realized Price | US$29.75/boe | US$30.67/boe | -3.0% | - The energy trading segment sold **896,723 metric tons** of petrochemical products, with an average realized price of approximately **US$532.15 per metric ton**[21](index=21&type=chunk) [Financial Performance](index=7&type=section&id=%E8%B2%A1%E5%8B%99%E6%A5%AD%E7%B8%BE) In H1 2025, profit attributable to owners decreased by 26.7% to HK$740 million, primarily due to lower average realized prices for crude oil and condensate, with revenue down 4.2% and gross profit down 30.8%, despite growth in trading and clean energy businesses Key Financial Indicators Comparison | Metric | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Profit Attributable to Owners | 740,147 | 1,010,276 | -26.7% | | Revenue | 8,087,956 | 8,439,807 | -4.2% | | Gross Profit | 1,306,118 | 1,888,578 | -30.8% | | Operating Profit | 1,162,820 | 1,501,328 | -22.5% | | Profit Before Tax | 1,029,078 | 1,375,268 | -25.2% | | Net Cash Inflow from Operating Activities | 2,739,813 | 4,343,781 | -36.9% | | Adjusted EBITDA | 3,427,420 | 4,156,371 | -17.5% | - The average realized price for oil and gas from exploration and production activities was approximately **US$58.58 per boe**, a year-on-year decrease of **8.4%**[22](index=22&type=chunk) Revenue by Business Segment | Business | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Exploration and Production | 4,318,738 | 5,049,188 | -14.46% | | Trading | 3,722,090 | 3,390,619 | +9.77% | | Clean Energy Business | 47,128 | – | N/A | - The decrease in revenue was primarily due to lower average realized prices for crude oil and condensate, partially offset by increased revenue from trading and new clean energy businesses[23](index=23&type=chunk) - Lifting costs for exploration and production activities increased by **14.8%** to approximately **HK$697 million**, with overall lifting costs per boe slightly up by **4.8%** to approximately **US$4.4**[25](index=25&type=chunk) - Depreciation and amortization decreased by **7.7%** to approximately **HK$2.355 billion**[26](index=26&type=chunk) - Exploration expenses decreased to approximately **HK$65.17 million**, primarily for geological and geophysical data studies and the write-off of dry and abandoned wells in Egyptian assets[28](index=28&type=chunk) - Administrative expenses increased to approximately **HK$374 million**, accounting for **4.6%** of revenue[29](index=29&type=chunk) - Finance costs decreased by **13.3%** to approximately **HK$142 million**, mainly due to the one-off amortization of upfront fees from loan repayments in the prior period, partially offset by increased trade finance loans; the weighted average borrowing interest rate was **9.69%** (2024: 13.47%)[30](index=30&type=chunk) - Income tax expense was approximately **HK$289 million**, with an effective tax rate of approximately **28.1%**, up 1.6 percentage points year-on-year[31](index=31&type=chunk) - Net cash outflow from investing activities decreased by **27.3%** to approximately **HK$2.123 billion**, primarily due to a **22.3%** reduction in capital expenditure[33](index=33&type=chunk) - Net cash outflow from financing activities was approximately **HK$1.566 billion**, mainly comprising dividends paid of approximately **HK$1.292 billion** and loan repayments of approximately **HK$186 million**[34](index=34&type=chunk) - The Board does not recommend the payment of an interim dividend for the reporting period[35](index=35&type=chunk) [Business and Market Outlook](index=12&type=section&id=%E6%A5%AD%E5%8B%99%E5%8F%8A%E5%B8%82%E5%A0%B4%E5%B1%95%E6%9C%9B) The Group anticipates 3.0% global economic growth in 2025 and a 1.3 million b/d increase in crude oil demand, but expects lower market prices in H2 due to potentially higher supply growth, while setting production targets and planning US$750 million in capital expenditure - IMF forecasts **3.0% global economic growth** in 2025, with inflation declining to **4.2%**, but high risks remain from trade tensions, geopolitical uncertainties, and fiscal vulnerabilities[40](index=40&type=chunk) - OPEC projects global crude oil demand to grow by **1.3 million barrels per day** year-on-year in 2025, averaging **105.13 million barrels per day**, but supply growth may outpace demand, leading to a lower market price environment in H2[40](index=40&type=chunk) 2025 Production Targets | Metric | Target Range (boe) | | :--- | :--- | | Average Operated Daily Production | 178,900 – 204,200 | | Average Working Interest Daily Production | 104,200 – 120,600 | - Capital expenditure is projected to reach **US$750 million**, primarily for exploration, development, and engineering construction plans, with efficient capital expenditure management[40](index=40&type=chunk) - Pakistan's natural gas demand is expected to continue growing while domestic production declines, leading to LNG imports; the Group's natural gas sales in Pakistan are almost guaranteed to be received by state-owned customers[41](index=41&type=chunk) - Pakistan assets are planned to achieve an average working interest daily production of **29,500 to 35,500 boe** in 2025[41](index=41&type=chunk) - Middle East and North Africa assets possess **576.7 million boe** of working interest proved and probable reserves, with **97.0%** located in Iraq[42](index=42&type=chunk) - Average operated daily production in Iraq's B9 block is expected to reach **130,000 boe**, while Siba gas field is projected to maintain sustainable peak production[42](index=42&type=chunk) - For Egyptian assets, if the acquisition plan is successfully implemented, the local asset portfolio will **double**[42](index=42&type=chunk) - Iraq assets are planned to achieve an average working interest daily production of **65,100 to 73,000 boe** in 2025, and Egyptian assets **9,500 to 12,100 boe**[43](index=43&type=chunk) [Liquidity and Financial Resources](index=13&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) As of June 30, 2025, the Group maintained a strong financial position with bank and cash balances of approximately HK$1.994 billion, a gearing ratio of 9.7%, and a current ratio of 0.87x, while exploring capital structure optimization including corporate bond issuance Liquidity and Financial Resources Overview | Metric | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Bank and Cash Balances | 1,993,774 | 2,935,796 | | Gearing Ratio | 9.7% | 11.6% | | Current Ratio | 0.87x | 1.01x | | Total Borrowings | 332,495 | 233,775 | | Average Interest Rate on Total Borrowings | 8.80% | 8.61% | - The Group is exploring various opportunities to optimize its capital structure, including its debt portfolio, and plans to explore international debt capital market opportunities, including corporate bond issuance, within the next 12 months[48](index=48&type=chunk) [Significant Acquisitions and Disposals](index=14&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E4%BA%8B%E9%A0%85) On February 7, 2025, the Group agreed to acquire Apex International Energy Holdings I for approximately HK$1.17 billion, and on February 14, 2025, completed the acquisition of a 52% stake in Oriental Group Beijing Investment Holdings Co., Ltd. for approximately HK$148 million - The Group signed an agreement to conditionally acquire Apex International Energy Holdings I, an oil and gas exploration and production company in Egypt, for approximately **HK$1.17 billion** (approximately US$150 million) plus deferred consideration of approximately **HK$54.6 million** (approximately US$7 million)[49](index=49&type=chunk) - The Group acquired a **52%** equity stake in Oriental Group Beijing Investment Holdings Co., Ltd. (OGBIH) from an associated company for approximately **HK$148 million** (approximately US$19 million), with the transaction completed on May 12, 2025[49](index=49&type=chunk) [Capital Structure and Employees](index=14&type=section&id=%E8%B3%87%E6%9C%AC%E7%B5%90%E6%A7%8B%E8%88%87%E5%83%B1%E5%93%A1) As of June 30, 2025, the company's issued share capital (including treasury shares) totaled 26,040,504,786 shares, with 190,910,000 treasury shares, and the Group employed 2,345 full-time employees globally with compensation reviewed regularly - As of June 30, 2025, the number of issued shares (including treasury shares) of the company was **26,040,504,786**[51](index=51&type=chunk) - Treasury shares amounted to **190,910,000 shares**, intended for future employee share options, share award schemes, scrip dividends, acquisitions, fundraising, or resale[51](index=51&type=chunk) - As of June 30, 2025, the Group employed a total of **2,345 full-time employees** globally[52](index=52&type=chunk) - Employee compensation and benefits are regularly reviewed based on individual performance and market practices, including basic salary, year-end bonuses, medical, and provident fund contributions[52](index=52&type=chunk) [Risk Management and Corporate Governance](index=15&type=section&id=%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86%E8%88%87%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86) The Group maintained sufficient public float and utilized share option and performance share unit schemes for employee incentives, with changes in the Board of Directors including new appointments and re-designations, while adhering to corporate governance codes - The Group maintained a sufficient public float throughout the reporting period[55](index=55&type=chunk) - The share option scheme has a validity period of **ten years**, from May 27, 2016, to May 26, 2026; as of the reporting date, approximately **9 months** of validity remain[56](index=56&type=chunk) - The Performance Share Unit Scheme (PSU Scheme) was adopted on April 1, 2019, to drive shareholder value growth, achieve medium-to-long-term performance targets, and attract and retain key talent[59](index=59&type=chunk) - During the reporting period, there were no new grants under the PSU Scheme, **36,366,895 granted shares** vested, and **700,000 granted shares** were cancelled[60](index=60&type=chunk) - Mr. Song Yu was appointed as an Executive Director on June 4, 2025, and re-designated as Chairman on June 27, 2025[67](index=67&type=chunk) - Mr. Zhao Pingshun was appointed as an Executive Director, Authorized Representative, and a member of the Remuneration Committee and Nomination Committee[67](index=67&type=chunk) - Mr. Yao Zhisheng was re-designated from an Executive Director to a Non-executive Director[67](index=67&type=chunk) - The Group complied with the code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules, except that the position of Chief Executive Officer remained vacant, with duties performed by Executive Directors and management personnel[70](index=70&type=chunk) - The Audit Committee reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2025, and found them satisfactory[72](index=72&type=chunk) [Independent Review Report](index=23&type=section&id=%E7%8D%A8%E7%AB%8B%E5%AF%A9%E9%96%B1%E5%A0%B1%E5%91%8A) RSM Hong Kong reviewed United Energy Group Limited's interim financial information for H1 2025, finding no material non-compliance with HKAS 34, but noted a significant going concern uncertainty due to net current liabilities - The scope of review is substantially less than that of an audit conducted in accordance with Hong Kong Standards on Auditing, and therefore no audit opinion is expressed[78](index=78&type=chunk) - Based on the review, nothing has come to the reviewer's attention that causes them to believe the interim financial information is not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34[79](index=79&type=chunk) - As of June 30, 2025, the Group had net current liabilities of **HK$1,434,582,000**, which constitutes a material uncertainty related to going concern[80](index=80&type=chunk) [Condensed Consolidated Statement of Profit or Loss](index=25&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the Group's revenue was HK$8.088 billion, a 4.2% decrease year-on-year, with gross profit down 30.8% to HK$1.306 billion, and profit for the period decreasing 26.7% to HK$740 million Condensed Consolidated Statement of Profit or Loss Summary | Metric | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 8,087,956 | 8,439,807 | | Cost of Sales | (6,781,838) | (6,551,229) | | Gross Profit | 1,306,118 | 1,888,578 | | Operating Profit | 1,162,820 | 1,501,328 | | Profit Before Tax | 1,029,078 | 1,375,268 | | Income Tax Expense | (288,936) | (364,998) | | Profit for the Period | 740,142 | 1,010,270 | | Basic Earnings Per Share (HK cents) | 2.88 | 3.90 | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=26&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the Group's profit for the period was HK$740 million, with other comprehensive income totaling HK$59.5 million, primarily from foreign currency translation differences and reclassification of foreign currency translation reserve on disposal of an associate, resulting in a total comprehensive income of HK$799 million Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary | Metric | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Profit for the Period | 740,142 | 1,010,270 | | Exchange differences on translation of overseas operations | 28,669 | 1,176 | | Release of foreign currency translation reserve on deemed disposal of investment in an associate and reclassified to profit or loss | 30,834 | – | | Other comprehensive income for the period, net of tax | 59,503 | 1,176 | | Total comprehensive income for the period | 799,645 | 1,011,446 | [Condensed Consolidated Statement of Financial Position](index=27&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the Group's total assets were HK$25.035 billion, with total current assets of HK$9.374 billion and total current liabilities of HK$10.809 billion, resulting in net current liabilities of HK$1.435 billion, a decrease from net current assets of HK$64.35 million at year-end 2024 Condensed Consolidated Statement of Financial Position Summary | Metric | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Non-current Assets | 15,660,805 | 15,287,406 | | Total Current Assets | 9,374,037 | 10,832,994 | | Total Current Liabilities | 10,808,619 | 10,768,648 | | Net Current (Liabilities) / Assets | (1,434,582) | 64,346 | | Total Assets Less Current Liabilities | 14,226,223 | 15,351,752 | | Non-current Liabilities | 1,418,103 | 2,056,372 | | Net Assets | 12,808,120 | 13,295,380 | | Total Equity | 12,808,120 | 13,295,380 | [Condensed Consolidated Statement of Changes in Equity](index=29&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) For the six months ended June 30, 2025, the Group's total equity decreased from HK$13.295 billion on January 1, 2025, to HK$12.808 billion, primarily due to HK$1.292 billion in dividends paid, despite HK$799 million in total comprehensive income Condensed Consolidated Statement of Changes in Equity Summary | Metric | January 1, 2025 (HK$ thousand) | June 30, 2025 (HK$ thousand) | | :--- | :--- | :--- | | Total Equity | 13,295,380 | 12,808,120 | | Total comprehensive income for the period | – | 799,645 | | Dividends paid | – | (1,292,480) | | Equity-settled share-based payments under Performance Share Unit Scheme | – | 5,575 | | Shares vested under Performance Share Unit Scheme | – | – | | Equity attributable to owners of the Company | 13,289,971 | 12,802,716 | [Condensed Consolidated Statement of Cash Flows](index=30&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the six months ended June 30, 2025, net cash generated from operating activities was HK$2.74 billion, a 36.9% decrease year-on-year, with net cash outflows from investing and financing activities of HK$2.123 billion and HK$1.566 billion respectively, resulting in a HK$949 million decrease in cash and cash equivalents Condensed Consolidated Statement of Cash Flows Summary | Metric | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Net cash generated from operating activities | 2,739,813 | 4,343,781 | | Net cash used in investing activities | (2,122,961) | (2,920,852) | | Net cash used in financing activities | (1,565,619) | (353,267) | | Net (decrease) / increase in cash and cash equivalents | (948,767) | 1,069,662 | | Cash and cash equivalents at end of period | 1,993,774 | 4,395,540 | - Dividends paid amounted to **HK$1,292,480,000**, and loan repayments were **HK$186,420,000**[87](index=87&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=31&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section provides detailed notes to the condensed consolidated financial statements, covering accounting policies, significant judgments, and disaggregated financial information [Going Concern Basis](index=31&type=section&id=%E6%8C%81%E7%BA%8C%E7%B6%93%E7%87%9F%E5%9F%BA%E6%BA%96) As of June 30, 2025, the Group's net current liabilities of approximately HK$1.435 billion indicate a material uncertainty regarding its ability to continue as a going concern, though the Board anticipates sufficient working capital through financing, positive cash flow, and cost control - As of June 30, 2025, the Group had net current liabilities of approximately **HK$1,434,582,000**, indicating a material uncertainty that may cast significant doubt on the Group's ability to continue as a going concern[89](index=89&type=chunk) - The Board believes the Group will have sufficient working capital for the foreseeable future, planning to negotiate additional bank financing, expecting positive cash flow from future operations, and strengthening cost control[89](index=89&type=chunk)[90](index=90&type=chunk) [Adoption of New and Revised Hong Kong Financial Reporting Standards](index=32&type=section&id=%E6%8E%A1%E7%B4%8D%E6%96%B0%E8%A8%82%E5%8F%8A%E7%B6%93%E4%BF%AE%E8%A8%82%E4%B9%8B%E9%A6%99%E6%B8%AF%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%BA%96%E5%89%87) The Group first applied amendments to HKAS 21 "Lack of Exchangeability" from January 1, 2025, without changing accounting policies or making retrospective adjustments, and has not early adopted any other new or revised standards - The Group first applied amendments to Hong Kong Accounting Standard 21 "Lack of Exchangeability" from January 1, 2025, but did not change accounting policies or make retrospective adjustments as a result[93](index=93&type=chunk) - The Group has not early adopted any new or revised standards that are effective for future periods in preparing the condensed interim financial statements[94](index=94&type=chunk) [Segment Information](index=33&type=section&id=%E5%88%86%E9%A1%9E%E8%B3%87%E6%96%99) The Group identified three reportable segments: Exploration and Production, Trading, and Clean Energy Business, with H1 2025 revenues of HK$4.319 billion, HK$3.722 billion, and HK$47.13 million respectively, and corresponding segment profits/losses - The Group identified three reportable segments: Exploration and Production (oil and gas exploration and production), Trading (energy product trading), and Clean Energy Business (wind power generation)[100](index=100&type=chunk)[101](index=101&type=chunk) H1 2025 Segment Revenue and Profit | Segment | Revenue from External Customers (HK$ thousand) | Segment Profit / (Loss) (HK$ thousand) | | :--- | :--- | :--- | | Exploration and Production | 4,318,738 | 403,550 | | Trading | 3,722,090 | (8,769) | | Clean Energy Business | 47,128 | 10,619 | | **Total** | **8,087,956** | **405,400** | H1 2025 Revenue by Geographical Market | Major Geographical Market | Sales and Production from Crude Oil, Condensate, Natural Gas and LPG (HK$ thousand) | Trading of Energy Products (HK$ thousand) | Sales of Electricity Generated from Wind Power (HK$ thousand) | Total (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Pakistan | 991,879 | 542,675 | 47,128 | 1,581,682 | | Singapore | 293,988 | 2,566,668 | – | 2,860,656 | | Egypt | 472,278 | – | – | 472,278 | | Iraq | 2,560,593 | – | – | 2,560,593 | | UAE | – | 612,747 | – | 612,747 | | **Revenue from External Customers** | **4,318,738** | **3,722,090** | **47,128** | **8,087,956** | [Finance Costs](index=37&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) For the six months ended June 30, 2025, the Group's total finance costs were HK$145 million, with HK$3.14 million capitalized, resulting in net finance costs of HK$142 million, a 13.3% decrease year-on-year, primarily driven by customer deposit interest and bank loan interest Finance Costs Components | Item | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Interest on bank loans | 12,355 | 78,526 | | Interest expense on lease liabilities | 7,960 | 9,769 | | Interest on customer deposits | 102,823 | 64,568 | | Provision – unwinding of discount | 20,914 | 13,231 | | Others | 745 | – | | **Total borrowing costs** | **144,797** | **166,094** | | Amount capitalized | (3,142) | (2,629) | | **Net finance costs** | **141,655** | **163,465** | - In 2025, the weighted average capitalization rate for borrowing costs was generally **7.5%** (2024: 8.1%)[108](index=108&type=chunk) [Income Tax Expense](index=37&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, the Group's income tax expense was HK$289 million, comprising HK$354 million in current tax and a HK$64.94 million deferred tax credit, resulting in an effective tax rate of approximately 28.1%, up 1.6 percentage points from the prior year Income Tax Expense Components | Item | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Current tax – overseas | 353,872 | 573,721 | | Deferred tax | (64,936) | (208,723) | | **Total income tax expense** | **288,936** | **364,998** | - During the reporting period, the Group's effective tax rate was approximately **28.1%**, an increase of **1.6 percentage points** compared to approximately 26.5% in the prior period[31](index=31&type=chunk) - Income tax rates in Egypt, Iraq, Pakistan, Singapore, and China were **22.5%**, **35%**, **40% to 50%**, **17%**, and **25%** respectively[109](index=109&type=chunk) [Profit for the Period](index=38&type=section&id=%E6%9C%AC%E6%9C%9F%E9%96%93%E6%BA%A2%E5%88%A9) For the six months ended June 30, 2025, the Group's profit for the period was HK$740 million, after accounting for significant expenses such as depreciation of HK$2.286 billion and amortization of intangible assets of HK$99.38 million, and gains from bargain purchase of a subsidiary and deemed disposal of an associate Profit for the Period Adjustments | Item | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Acquisition-related costs | 1,798 | – | | Impairment loss on property, plant and equipment | 24,020 | – | | Write-off of property, plant and equipment | 11,799 | – | | Gain on deemed disposal of investment in an associate | (78,912) | – | | Bargain purchase gain on acquisition of a subsidiary | (114,381) | – | | Amortization of intangible assets | 99,380 | 166,926 | | Depreciation | 2,285,989 | 2,409,060 | | Depreciation of right-of-use assets | 44,228 | 40,316 | | Directors' emoluments | 9,765 | 9,919 | | Fair value gain on financial assets at fair value through profit or loss | (814) | (226) | | Fair value gain on derivative financial instruments | (216) | – | | Realized gain on derivative financial instruments | (16) | – | [Earnings Per Share](index=38&type=section&id=%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) For the six months ended June 30, 2025, basic earnings per share attributable to owners of the Company decreased to 2.88 HK cents from 3.90 HK cents in the prior year, with diluted earnings per share being the same due to no potential dilutive ordinary shares Earnings Per Share Comparison | Metric | H1 2025 (HK cents) | H1 2024 (HK cents) | | :--- | :--- | :--- | | Basic Earnings Per Share | 2.88 | 3.90 | | Diluted Earnings Per Share | N/A | N/A | - Basic earnings per share attributable to owners of the Company is calculated based on the profit attributable to owners of the Company of approximately **HK$740,147,000** for the period and the weighted average number of ordinary shares outstanding of **25,682,474,305 shares** during the period[112](index=112&type=chunk) - For the six months ended June 30, 2025, and 2024, there were no potential dilutive ordinary shares, thus diluted earnings per share were the same as basic earnings per share[113](index=113&type=chunk) [Dividends](index=38&type=section&id=%E8%82%A1%E6%81%AF) For the six months ended June 30, 2025, the Group paid a final dividend of 5 HK cents per ordinary share for 2024, totaling HK$1.292 billion, and the Board does not recommend any interim dividend for the current reporting period Dividends Paid | Item | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Final dividend for 2024 of 5 HK cents per ordinary share | 1,292,480 | – | - The Directors of the Company do not recommend the payment of any interim dividend for the six months ended June 30, 2025[114](index=114&type=chunk) [Property, Plant and Equipment](index=39&type=section&id=%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) For the six months ended June 30, 2025, the Group acquired approximately HK$2.244 billion in property, plant and equipment, excluding HK$419.3 million acquired through business combinations, indicating continued investment in fixed assets - For the six months ended June 30, 2025, the Group acquired approximately **HK$2,244,137,000** (2024: HK$2,934,258,000) of property, plant and equipment[115](index=115&type=chunk) - This excludes property, plant and equipment of approximately **HK$419,307,000** acquired through business combinations[115](index=115&type=chunk) [Trade and Other Receivables](index=39&type=section&id=%E8%B2%A1%E5%8B%99%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E8%B3%A6%E6%AC%BE) As of June 30, 2025, the Group's total trade and other receivables decreased to HK$7.092 billion from HK$7.604 billion at year-end 2024, with trade receivables at HK$5.729 billion, including HK$1.329 billion over 90 days, and a HK$196 million provision for natural gas price adjustments Trade and Other Receivables Comparison | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade receivables | 5,729,194 | 6,320,638 | | Provision for trade receivables | (102,348) | (102,348) | | Provision for price adjustment | (195,837) | (196,100) | | Other receivables (net of provision) | 1,660,948 | 1,581,743 | | **Total** | **7,091,957** | **7,603,933** | Trade Receivables Ageing Analysis (June 30, 2025) | Ageing | Amount (HK$ thousand) | | :--- | :--- | | 0 to 30 days | 2,829,963 | | 31 to 60 days | 265,690 | | 61 to 90 days | 1,304,342 | | Over 90 days | 1,329,199 | - The Group has made a provision of approximately **HK$195,837,000** for potential price adjustments under Pakistan's natural gas sales agreements[120](index=120&type=chunk) - Other receivables primarily include amounts due from joint operators of **HK$759 million**, deposits and prepayments of **HK$459 million**, and sales tax receivables of **HK$213 million**[121](index=121&type=chunk) [Trade and Other Payables](index=41&type=section&id=%E8%B2%A1%E5%8B%99%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E8%B3%A6%E6%AC%BE) As of June 30, 2025, the Group's total trade and other payables decreased to HK$8.973 billion from HK$9.774 billion at year-end 2024, with current liabilities at HK$8.611 billion and non-current liabilities at HK$362 million, including accrued operating and capital expenditures, customer deposits, and infrastructure fund provisions Trade and Other Payables Comparison | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade payables | 1,569,633 | 2,139,032 | | Other payables | 7,402,924 | 7,634,687 | | **Total** | **8,972,557** | **9,773,719** | | Current liabilities | 8,610,968 | 8,794,443 | | Non-current liabilities | 361,589 | 979,276 | Trade Payables Ageing Analysis (June 30, 2025) | Ageing | Amount (HK$ thousand) | | :--- | :--- | | 0 to 30 days | 534,410 | | 31 to 60 days | 72,217 | | 61 to 90 days | 24,993 | | Over 90 days | 938,013 | - Other payables primarily include accrued operating and capital expenditures of **HK$2,716,949 thousand**, customer deposits of **HK$1,872,000 thousand**, and infrastructure fund provisions of **HK$1,076,620 thousand**[124](index=124&type=chunk) - The Group entered into an agreement with a customer for secured crude oil prepayment financing of up to approximately **HK$3.12 billion** (approximately US$400 million), with an annual interest rate of 3-month SOFR plus **5.25%**[127](index=127&type=chunk) [Borrowings](index=42&type=section&id=%E5%80%9F%E6%AC%BE) As of June 30, 2025, the Group's total secured bank loans increased to HK$332 million from HK$234 million at year-end 2024, with current liabilities at HK$202 million and non-current liabilities at HK$131 million Borrowings Comparison | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Bank loans, secured | 332,495 | 233,775 | | Current liabilities | 201,649 | 155,825 | | Non-current liabilities | 130,846 | 77,950 | [Provisions](index=42&type=section&id=%E6%92%A5%E5%82%99) As of June 30, 2025, the Group's total provisions amounted to HK$706 million, primarily comprising HK$500 thousand for dismantling costs of leased property renovations and HK$706 million for decommissioning costs, which are reviewed annually based on environmental obligations from oil and gas activities Provisions Components | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Dismantling costs for leased property renovations | 500 | 500 | | Decommissioning costs | 705,859 | 733,211 | | **Total** | **706,359** | **733,711** | | Current liabilities | 33,959 | 33,959 | | Non-current liabilities | 672,400 | 699,752 | - Decommissioning cost liabilities are determined by management by discounting expected future expenditures to their present net value using a pre-tax rate that reflects the specific risks associated with the obligation[128](index=128&type=chunk) [Share Capital](index=43&type=section&id=%E8%82%A1%E6%9C%AC) As of June 30, 2025, the company's authorized share capital was HK$600 million, with issued and fully paid share capital of HK$260.4 million, consisting of 26,040,504,786 ordinary shares of HK$0.01 each, including 190,910,000 treasury shares Share Capital Structure | Item | June 30, 2025 (HK$ thousand) | | :--- | :--- | | Authorized share capital (60,000,000,000 ordinary shares of HK$0.01 each) | 600,000 | | Issued and fully paid share capital (26,040,504,786 ordinary shares of HK$0.01 each) | 260,405 | Number of Shares | Item | June 30, 2025 (thousand shares) | | :--- | :--- | | Issued shares (net of treasury shares) | 25,849,594 | | Treasury shares | 190,910 | | Issued shares | 26,040,504 | [Performance Share Unit Scheme](index=44&type=section&id=%E7%B8%BE%E6%95%88%E8%82%A1%E6%AC%8A%E5%96%AE%E4%BD%8D%E8%A8%88%E5%8A%83) The Performance Share Unit Scheme (PSU Scheme), adopted on April 1, 2019, aims to incentivize employees; in H1 2025, no new shares were granted, 36,366,895 granted shares vested, 700,000 were cancelled, and the Group recognized an expense of approximately HK$5.58 million - The PSU Scheme aims to incentivize the Group's employees to drive shareholder value growth, achieve medium-to-long-term performance targets, and attract and retain key talent[131](index=131&type=chunk) - For the six months ended June 30, 2025, the trustee did not purchase any shares from the market, and no new shares were granted[132](index=132&type=chunk) Performance Share Unit Scheme Award Share Movements (H1 2025) | Grant Date | Outstanding at Jan 1 (shares) | Vested during period (shares) | Forfeited during period (shares) | Outstanding at June 30 (shares) | | :--- | :--- | :--- | :--- | :--- | | May 17, 2022 (Tranche 1) | 21,292,097 | (21,106,108) | (185,989) | – | | May 17, 2022 (Tranche 2) | 14,224,798 | (13,960,787) | (264,011) | – | | June 27, 2023 | 20,150,000 | (1,300,000) | (250,000) | 18,600,000 | | **Total** | **55,666,895** | **(36,366,895)** | **(700,000)** | **18,600,000** | - For the six months ended June 30, 2025, the Group recognized an expense of approximately **HK$5,575,000** for the PSU Scheme[133](index=133&type=chunk) [Capital Commitments](index=46&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) As of June 30, 2025, the Group's total contracted but unprovided capital commitments significantly increased to HK$3.605 billion from HK$1.572 billion at year-end 2024, primarily for the acquisition of property, plant and equipment and a subsidiary Capital Commitments Comparison | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Acquisition of property, plant and equipment | 1,782,076 | 977,177 | | Acquisition of a subsidiary | 1,224,600 | – | | Contributions to subsidiaries | 575,912 | 573,084 | | Contributions to associates | 21,931 | 21,597 | | **Total** | **3,604,519** | **1,571,858** | [Contingent Liabilities](index=46&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) The Group has several contingent liabilities, including unlimited corporate guarantees for UEPL, potential retrospective windfall profit levies from the Pakistan government (approx. HK$192 million), tax directives from Pakistan tax authorities (approx. HK$1.135 billion), and bank guarantees for the Director General Petroleum Concessions (approx. HK$53.59 million) - The Company provides several unlimited corporate guarantees for United Energy Pakistan Limited (UEPL) to fulfill its concession agreement obligations[136](index=136&type=chunk) - Further provision of approximately **HK$191,969,000** would be required if the Pakistan government retrospectively imposes a windfall profit levy[136](index=136&type=chunk) - The Pakistan tax authorities issued various tax directives, with cumulative potential tax amounts of approximately **HK$1,135,414,000**[136](index=136&type=chunk) - Certain subsidiaries of the Group issued bank guarantees in favor of the Director General Petroleum Concessions, amounting to approximately **HK$53,593,000**[136](index=136&type=chunk) [Acquisition of a Subsidiary](index=47&type=section&id=%E6%94%B6%E8%B3%BC%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8) On May 12, 2025, the Group completed the acquisition of a 52% equity stake in Oriental Group Beijing Investment Holdings Co., Ltd. (OGBIH), making it a wholly-owned subsidiary, aiming to expand its clean energy business and recognizing gains from deemed disposal of an associate and a bargain purchase - The Group completed the acquisition of a **52%** equity stake in Oriental Group Beijing Investment Holdings Co., Ltd. (OGBIH) and its subsidiaries on May 12, 2025, making the OGBIH Group a wholly-owned subsidiary of the Group[137](index=137&type=chunk) - This acquisition aims to expand the clean energy business segment[137](index=137&type=chunk) - The Group remeasured its existing interest in the OGBIH Group at fair value on the acquisition date and recognized a gain of approximately **HK$78,912,000**[137](index=137&type=chunk) - The Group recognized a bargain purchase gain of **HK$114,381,000** in the business combination, attributable to an increase in the fair value of net assets acquired[139](index=139&type=chunk) - From the acquisition date to the end of the reporting period, the OGBIH Group contributed revenue of approximately **HK$47,128,000** and profit of approximately **HK$28,036,000**[140](index=140&type=chunk) [Related Party Transactions](index=49&type=section&id=%E9%97%9C%E9%80%A3%E4%BA%BA%E5%A3%AB%E4%BA%A4%E6%98%93) The Group engaged in various related party transactions, including the acquisition of OGBIH from Oriental Group Industrial Development Co., Ltd., bank financing guarantees provided by Oriental Group for OGBIH, and lease and property management services with Beijing Dacheng Hotel and Oriental An Yi (Beijing) Property Management Co., Ltd - The acquisition of a **52%** equity stake in Oriental Group Beijing Investment Holdings Co., Ltd. (OGBIH) was a related party transaction[141](index=141&type=chunk) - Oriental Group and Oriental Group Industrial Development provided corporate guarantees for bank financing of approximately **HK$715 million** granted to OGBIH, a former associate of the Group[144](index=144&type=chunk) - Oriental Group waived service fees of approximately **HK$999,000** payable by OGBIH[144](index=144&type=chunk) - For the six months ended June 30, 2025, the Group paid lease payments of approximately **HK$12,701,000** to Beijing Dacheng Hotel for office premises[144](index=144&type=chunk) - Oriental An Yi charged fees of approximately **HK$1,723,000** for property management services, electricity supply, and leasing of the Group's office premises[144](index=144&type=chunk) [Supplementary Information on Oil and Gas Exploration, Development and Production Activities](index=51&type=section&id=%E6%9C%89%E9%97%9C%E6%B2%B9%E6%B0%A3%E5%8B%98%E6%8E%A2%E3%80%81%E9%96%8B%E7%99%BC%E5%8F%8A%E7%94%A2%E7%94%A2%E6%B4%BB%E5%8B%95%E7%9A%84%E8%A3%9C%E5%85%85%E8%B3%87%E6%96%99) This section provides supplementary details on the Group's oil and gas exploration, development, and production activities, including drilling of 8 wells in Pakistan and 16 wells in MENA assets, and total costs of approximately HK$2.954 billion incurred in H1 2025 Key Exploration, Development and Production Activities | Activity Type | Pakistan Assets | Middle East and North Africa Assets | | :--- | :--- | :--- | | Exploration and appraisal wells | 5 wells | 3 wells | | Development wells | 3 wells | 13 wells | | Workover operations | 7 operations | 7 operations | | Average working interest daily production | 31,571 boe | 80,191 boe | Exploration, Development and Production Activity Costs | Cost Type | Pakistan Assets (HK$ thousand) | Middle East and North Africa Assets (HK$ thousand) | Total (HK$ thousand) | | :--- | :--- | :--- | :--- | | Exploration costs | 173,211 | 119,766 | 292,977 | | Development costs | 209,034 | 1,744,674 | 1,953,708 | | Production costs | 266,969 | 440,628 | 707,597 | | **Total** | **649,214** | **2,305,068** | **2,954,282** | [Glossary and Definitions](index=52&type=section&id=%E8%A9%9E%E5%BD%99%E5%8F%8A%E9%87%8B%E7%BE%A9) This section provides definitions for general and technical terms used throughout the report to ensure clear understanding for readers