Financial Performance - The company reported a revenue of HKD 9,588,032 thousand for the six months ended June 30, 2025, representing a 11.0% increase from HKD 8,638,244 thousand in the same period of 2024[2] - Gross profit for the same period was HKD 1,762,820 thousand, up 3.4% from HKD 1,704,498 thousand year-on-year[2] - The net profit for the period was HKD 933,545 thousand, an increase of 28.0% compared to HKD 729,336 thousand in 2024[2] - Basic and diluted earnings per share increased to HKD 0.299 from HKD 0.233, reflecting a growth of 28.3%[2] - Total comprehensive income for the period was HKD 1,160,014 thousand, compared to HKD 594,195 thousand in the previous year, marking a 95.5% increase[4] - The overall profit before tax for the six months ended June 30, 2025, was HKD 1,171,287,000, compared to HKD 957,465,000 for the same period in 2024, indicating an increase of about 22.3%[16] - The group’s revenue for the six months ended June 30, 2025, increased by 11% to HKD 9,588 million compared to HKD 8,638.2 million in the same period last year[46] - Net profit attributable to shareholders rose by 28% to HKD 933.3 million, up from HKD 727.8 million year-on-year[46] Assets and Liabilities - The company's total assets as of June 30, 2025, amounted to HKD 15,125,297 thousand, up from HKD 13,799,534 thousand at the end of 2024[5] - Current liabilities increased to HKD 8,498,438 thousand from HKD 5,763,418 thousand, indicating a significant rise in short-term obligations[6] - The company’s equity attributable to shareholders decreased to HKD 14,941,786 thousand from HKD 15,342,427 thousand, reflecting a decline of 2.6%[6] - The company reported a cash and cash equivalents balance of HKD 1,461,212 thousand, down from HKD 1,924,271 thousand at the end of 2024[5] - The net trade receivables as of June 30, 2025, amounted to HKD 4,057,935,000, compared to HKD 3,617,182,000 as of June 30, 2024, showing an increase of approximately 12.2%[29] - The company’s total assets as of June 30, 2025, were HKD 8,426,589,000, compared to HKD 7,038,277,000 as of December 31, 2024, reflecting an increase of approximately 19.7%[29] - As of June 30, 2025, the group's total borrowings amounted to HKD 4,466,709,000, with HKD 3,357,547,000 due within one year[55] Cash Flow and Investments - The net cash used in operating activities for the six months ended June 30, 2025, was HKD (327,008,000), compared to HKD 302,740,000 generated in the same period of 2024[9] - The net cash used in investing activities was HKD (896,531,000), significantly higher than HKD (159,209,000) in the previous year[9] - The company reported a net cash inflow from financing activities of HKD 760,480,000, compared to HKD 590,678,000 in the prior year, reflecting an increase of approximately 28.73%[9] - The group’s investment in securities increased to approximately HKD 2,535.7 million, representing about 10% of total assets as of June 30, 2025[48] - The bond investment portfolio's fair value totaled HKD 249.6 million, with interest income from bond investments rising by approximately 5% to HKD 4.99 million[48] Dividends - The company declared a dividend of HKD 1,560,000 thousand for the period, significantly higher than HKD 374,400 thousand in the previous year[6] - The company declared an interim dividend of HKD 0.15 per share for the six months ended June 30, 2025, up from HKD 0.12 per share for the same period in 2024, reflecting a 25% increase[26] Operational Efficiency - The inventory turnover period was 62 days, while trade receivables turnover was 90 days, indicating changes in operational efficiency[54] - The average monthly shipment volume for copper-clad laminates rose by 5% year-on-year to 9 million sheets[47] Market and Growth Prospects - The company expects to continue expanding its market presence and investing in new technologies to drive future growth[8] - The group anticipates strong demand in the overall electronics market driven by AI technology and the growth of cloud data centers, robotics, and autonomous driving[61] - The group plans to increase production capacity of low dielectric fiberglass yarn by adding three more kilns in the second half of 2025, enhancing its market share in high-end products[62] Corporate Governance - The company has adopted and complied with the corporate governance code as per the Hong Kong Stock Exchange listing rules during the six months ending June 30, 2025[75] - The audit committee reviewed the accounting policies and practices adopted by the group, including the unaudited interim financial report for the six months ending June 30, 2025[74] - The directors confirmed compliance with the standard code of conduct regarding securities transactions during the six months ending June 30, 2025[76] Employee and Management Information - The group employed approximately 10,600 staff as of June 30, 2025, an increase from 9,900 employees as of December 31, 2024[59] - The company’s directors believe the likelihood of default by the parties involved in the financial guarantees is extremely low[43]

Financial Performance - Revenue for the six months ended June 30, 2025, was HK$469,858,000, a decrease of 16.6% compared to HK$563,536,000 for the same period in 2024[11] - Gross profit for the same period was HK$78,727,000, down 27.5% from HK$108,445,000 in 2024[11] - Operating profit decreased to HK$18,169,000, a decline of 36.1% from HK$28,406,000 in the previous year[11] - Profit for the period attributable to equity holders was HK$14,338,000, a decrease of 8.7% compared to HK$15,701,000 in 2024[11] - Total comprehensive income for the period attributable to equity holders was HK$13,665,000, down from HK$14,316,000 in 2024[11] Assets and Liabilities - Total assets as of June 30, 2025, were HK$806,541,000, a decrease of 13.6% from HK$933,499,000 at the end of 2024[14] - Total liabilities decreased from HK$712,360,000 as of December 31, 2024, to HK$571,737,000 as of June 30, 2025, representing a reduction of approximately 19.7%[16] - Current liabilities decreased from HK$661,363,000 to HK$533,302,000, a decline of about 19.4%[16] - Trade receivables decreased significantly to HK$178,362,000, down 34.3% from HK$270,925,000 in 2024[14] - Inventories also decreased to HK$173,077,000, a decline of 11.8% from HK$196,314,000 in 2024[14] Equity and Cash Flow - Total equity increased to HK$234,804,000, up from HK$221,139,000 at the end of 2024, reflecting a growth of 6.2%[14] - Cash and cash equivalents rose to HK$299,792,000, an increase of 27.4% from HK$235,333,000 in 2024[14] - Net cash generated from operating activities for the six months ended June 30, 2025, was HK$73,874,000, an increase of 4.9% compared to HK$70,715,000 for the same period in 2024[23] - Net cash generated from investing activities was HK$71,973,000, a significant recovery from a net cash used of HK$24,108,000 in the previous year[23] - Cash and cash equivalents at the end of the period increased to HK$299,792,000 from HK$251,738,000, reflecting a net increase of HK$64,581,000[23] Revenue Breakdown - For the six months ended June 30, 2025, revenue from Customer A was HK$77,196,000, down 33.7% from HK$116,537,000 in the same period of 2024[53] - Revenue from the United States increased to HK$174,410,000 in the six months ended June 30, 2025, up 27% from HK$137,435,000 in 2024[55] - The Group's revenue from the Philippines decreased to HK$111,255,000 in the six months ended June 30, 2025, down 38.4% from HK$180,454,000 in 2024[55] - The Group's revenue from Germany increased to HK$11,079,000 in the six months ended June 30, 2025, up 14.1% from HK$9,707,000 in 2024[55] Cost Management - Total cost of sales, selling and distribution expenses, and administrative expenses amounted to HK$480,849,000, a reduction of 10.91% compared to HK$539,874,000 in the previous year[84] - Raw materials used decreased by 17.14% to HK$297,680,000 from HK$359,304,000 year-on-year[84] - Employee benefit costs and manpower service expenses were HK$119,953,000, down 3.25% from HK$123,973,000 in the prior period[84] - Finance costs, net, significantly decreased to HK$2,312,000 from HK$8,011,000, representing a reduction of 71.16%[73] Shareholding Structure - As of June 30, 2025, Smartview holds 51,000,000 shares, representing 51.0% of the company's total shares[198] - Smart Union owns 12,000,000 shares, accounting for 12.0% of the company's total shares[198] - Grandview Group Holdings also holds 12,000,000 shares, which is 12.0% of the company's total shares[198] - Mr. Wilson Chu has an interest in controlled corporations amounting to 63,000,000 shares, representing 63.0% of the company's total shares[198] Operational Insights - The production ramp-up at the Batam manufacturing site positively impacted growth with US customers, enhancing operational flexibility amid tariff uncertainties[160] - The Group plans to maintain a cautious approach to procurement and inventory management while focusing on operational efficiency and disciplined cost control[161] - The Group has implemented strategic procurement moderation in response to uncertainties surrounding U.S. tariff policies[147] Other Financial Information - The Directors do not recommend any interim dividend for the six months ended 30 June 2025, consistent with the previous year[186] - The Group did not have any contingent liabilities as at 30 June 2025, consistent with the previous year[169] - There were no significant events after 30 June 2025 that have a material effect on the Group[183]

( 股票代號 A 股：600871； H 股：1033) 2025 半年度報告 半年度報告 重要提示 一、本公司董事會、監事會及董事、監事、高級管理人員保證半年度報告內容的真實性、準確性、完整 性，不存在虛假記載、誤導性陳述或重大遺漏，並承擔個別和連帶的法律責任。 二、 2025年半年度報告已經本公司第十一屆董事會第九次會議審議通過。本公司共有6位董事親自出席了 本次董事會會議，董事長吳柏志先生因公請假，委託董事張建闊先生出席會議並行使權利。 三、本公司按照中國企業會計準則及按照國際財務報告會計準則編製的2025年半年度財務報告均未經審 計；但本公司按國際財務報告會計準則編製的2025年半年度財務報告已經香港立信德豪會計師事務所 有限公司審閱。 四、本公司董事長吳柏志先生、總經理張建闊先生、總會計師程中義先生、財務資產部經理張雪平女士聲 明：保證半年度報告中財務報告的真實、準確、完整。 五、根據《公司章程》，董事會決議不派發截至2025年12月31日止年度之半年度現金股利，亦不進行資本 公積金轉增股本。 六、本公司有關未來發展戰略和經營計劃的前瞻性陳述並不構成本公司對投資者的實質承諾，請投資者注 意投資風險。 ...

二零二五年 報告 中期 財務 中期財務報告二零二五年 1 財務回顧 中期簡明綜合財務報表 2 3 4 5 Prada集團 企業管治 中期簡明綜合財務報表 附註 3 第1章 Prada集團 普拉達股份有限公司－公司資料 香港聯交所股份代號 1913 中期財務報告 二零二五年 註冊辦事處 Via A. Fogazzaro, 28 - 20135 Milan, Italy 總辦事處 Via A. Fogazzaro, 28 - 20135 Milan, Italy 根據香港公司條例第16部 中國香港特別行政區鰂魚涌 在香港註冊的營業地點 英皇道979號太古坊一座8樓 公司網站 www.pradagroup.com 股本 255,882,400歐元 （即2,558,824,000股每股0.10歐元的股份） 董事會 Patrizio Bertelli （董事會主席兼執行董事） Paolo Zannoni （董事會執行副主席兼執行董事） Andrea Guerra （行政總裁兼執行董事） Miuccia Prada Bianchi Andrea Bonini （財務總監兼執行董事） Lorenzo Bertelli （執 ...

二零二五年 上半年度 財務報告 Prudential plc 香港股份代號：2378 二零二五年上半年度財務報告 我們的宗旨 我們是保誠。 保障每個人生，我們與你同行。 誠就每個未來，我們為你守護。 我們的使命旨在透過向當代及 新生代提供簡單易用的理財和 健康保障方案，成為其最值得 信賴的夥伴和守護者。 | 2 | 業務表現 | 106 | 傳統內含價值基準業績 | | --- | --- | --- | --- | | 4 | 策略及營運回顧 | 108 | 傳統內含價值基準業績索引 | | 9 | 財務回顧 | 128 | 致Prudential plc的獨立審閱報告 | | 22 | 分部討論 | | | | 31 | 風險回顧 | 130 | 額外資料 | | 50 | 風險因素 | 132 | 額外財務資料 | | 64 | 表現指標釋義 | 146 | 企業管治 | | | | 147 | 董事權益披露 | | 68 | 《國際財務報告準則》財務業績 | 149 | 股東資料 | | 70 | 本集團《國際財務報告準則》財務業績索引 | 151 | 聯絡我們 | 104 董事責任聲明 105 致P ...

股份代號 : 03889 大成玉米集團有限公司 (於開曼群島註冊成立之有限公司) * 僅供識別 中期報告 大成玉米集團有限公司 GLOBAL CORN Group Limited Interim Report 2025 Interim Report 2025 2025 *For identification purpose only 目錄 | 釋義 | 2 | | --- | --- | | 公司資料 | 7 | | 致股東簡報 | 8 | | 管理層討論及分析 | 10 | | 其他資料披露 | 18 | | 簡明綜合財務報表 | | | 簡明綜合損益及其他全面收益表 | 25 | | 簡明綜合財務狀況表 | 26 | | 簡明綜合權益變動表 | 27 | | 簡明綜合現金流量表 | 29 | | 簡明綜合財務報表附註 | 31 | C120915 釋義 2025 年中期報告 大成玉米集團有限公司 2 中期報告 Stock Code: 03889 大成玉米集團有限公司 (incorporated in the Cayman Islands with limited liability) 「審核委員會」 指 ...

[Definitions](index=3&type=section&id=Definitions) This section defines key terms and entities used in the report, crucial for understanding the company's operations, financial transactions, and corporate governance - “The Company” refers to DaCheng Biochemical Technology Group Limited, a limited company incorporated in the Cayman Islands, whose shares are listed on the Main Board of the Stock Exchange (stock code: **00809**)[6](index=6&type=chunk) - “Disposal” refers to the sale of the disposed shares in accordance with the terms of the sale and purchase agreement, which was completed on **December 30, 2024**[9](index=9&type=chunk) - “Supplier Debt Restructuring Arrangement” refers to a series of arrangements undertaken or to be undertaken by the Group to restructure and settle supplier debts, totaling approximately **RMB 461.1 million**[13](index=13&type=chunk) [Company Information](index=10&type=section&id=Company%20Information) This section lists the company's board members, company secretary, registered office, principal place of business in Hong Kong, auditor, legal counsel, principal bankers, share registrar, Hong Kong share registrar, website, and stock code - This section lists the company's board members, company secretary, registered office, principal place of business in Hong Kong, auditor, legal counsel, principal bankers, principal share registrar, Hong Kong share registrar, website, and stock code[16](index=16&type=chunk)[17](index=17&type=chunk) - Board members include Executive Directors Mr. Wang Cheng (Chairman) and Mr. Wang Guicheng, Non-executive Director Mr. Li Yuewen, and Independent Non-executive Directors Ms. Jiang Fangfang, Mr. Tan Chao, and Ms. Xie Liangqiu[16](index=16&type=chunk) - The Company's stock code is **00809**, and its auditor is RSM Hong Kong[16](index=16&type=chunk)[17](index=17&type=chunk) [Letter to Shareholders](index=11&type=section&id=Letter%20to%20Shareholders) [3.1 Business Review](index=11&type=section&id=3.1%20Business%20Review) Following structural reorganization, the Group optimized resource allocation, significantly enhancing Changchun Deda's production facility utilization and reducing operating costs. The amino acid business performed strongly, achieving over **30% year-on-year growth in consolidated revenue** through flexible production and build-to-order strategies. Despite pressure on lysine product average selling prices, production cost reductions outpaced price declines, leading to a substantial increase in gross profit margin - The Group's amino acid business performed strongly, maintaining high production capacity utilization and flexibly adjusting production lines to produce based on sales, shortening finished goods inventory time and reducing losses[18](index=18&type=chunk) - Despite intense domestic competition leading to downward pressure on the average selling price of lysine products, the Group focused on expanding sales volume, resulting in a **year-on-year increase of over 30% in consolidated revenue** for the period[18](index=18&type=chunk) - The Group accurately anticipated rising corn prices and promptly implemented inventory measures, coupled with energy-saving and consumption-reducing production processes, leading to a greater reduction in production costs than the decline in product prices, thereby improving operational efficiency[18](index=18&type=chunk) Gross Profit and Gross Profit Margin Changes | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Gross Profit | Substantial increase of nearly **1.5 times** | - | | Gross Profit Margin | **13.6%** | **7.3%** | - Following the completion of the Disposal on **December 30, 2024**, administrative and other expenses of the disposed group are no longer consolidated into the financial statements, reducing overall operating costs and increasing cash liquidity[19](index=19&type=chunk) - The Group has reached a consensus with over **130 suppliers** regarding payables of approximately **RMB 461.1 million**, with the supplier debt restructuring arrangement expected to be completed within the year, further improving the financial position[19](index=19&type=chunk) [3.2 Future Outlook](index=12&type=section&id=3.2%20Future%20Outlook) Facing global economic uncertainties, tariff pressures, rising domestic corn prices, and new lysine production capacity, the Group will initiate a boiler renovation project to reduce costs, promote full resumption of operations at Xinglongshan plant, and explore business alliances or investor participation, while monitoring the expropriation of remaining Luyuan properties to overcome debt crises and achieve stable business development - Despite cross-border trade expansion in the **first half of 2025**, the global economic outlook remains clouded by tariffs, with global growth expected to be uncertain in the **second half of 2025**[20](index=20&type=chunk) - The market anticipates continued increases in corn prices in the **second half of 2025**, potentially impacting the Group's production costs; the domestic lysine market is expected to see hundreds of thousands of tonnes of new capacity, reshaping the competitive landscape[20](index=20&type=chunk) - The Group has initiated a boiler renovation project aimed at effectively reducing Changchun Deda's operating costs and enhancing production facility efficiency[21](index=21&type=chunk) - The Group is committed to promoting the full resumption of operations at the Xinglongshan plant, including exploring the introduction of business alliances or investors to participate in operations, and utilizing R&D centers and pilot facilities to explore strategic cooperation opportunities[21](index=21&type=chunk) - The Group will continue to monitor the expropriation of remaining Luyuan properties and ensure the disposed group repays the outstanding portion of the repurchase loan, significantly reducing financial expenditures, improving overall financial health, and gradually overcoming the debt crisis[21](index=21&type=chunk) [Management Discussion and Analysis](index=13&type=section&id=Management%20Discussion%20and%20Analysis) [4.1 Business Review](index=13&type=section&id=4.1%20Business%20Review) The Group primarily engages in the production and sale of corn refined products and amino acids. Amid a slowing global economy, trade tensions, and geopolitical uncertainties, China's economy maintained stable growth but faced challenges. International corn prices fell, while domestic prices rose. The lysine market experienced significant volatility due to international trade policies, leading to decreased export volumes and domestic price pressure. The Group achieved significant growth in amino acid revenue and gross profit by strengthening domestic sales, developing new markets, and introducing high-value-added products, while restarting the boiler renovation project to enhance competitiveness and actively promoting the resumption of operations at the Xinglongshan plant and strategic collaborations - The Group primarily engages in the production and sale of corn refined products and amino acids (after the completion of the Disposal, it no longer operates corn sweetener and biochemical alcohol businesses)[24](index=24&type=chunk) - Global economic growth is projected to slow to **2.3% in 2025**, the lowest level since **2008**, facing challenges from trade tensions, geopolitical uncertainties, and protectionism[25](index=25&type=chunk) - China's GDP grew by **5.3% year-on-year** in the **first half of 2025**, with a stable economy but facing weak consumer confidence, the US-China trade war, real estate market adjustments, and external demand uncertainties[25](index=25&type=chunk) Corn Price Changes | Metric | January 2025 | End of June 2025 | End of June 2024 | | :--- | :--- | :--- | :--- | | International Corn Price (per bushel) | **459.2 US cents** | **420.5 US cents** | **397.0 US cents** | | Domestic Corn Price (per tonne) | **RMB 2,075** | **RMB 2,447** | - | - The global lysine market faced significant volatility, impacted by additional US tariffs and anti-dumping investigations by the EU and Brazil, leading to a **5.0% decrease in China's lysine export volume** to approximately **521,500 tonnes** in the **first half of 2025**[28](index=28&type=chunk) Changes in Average Price of China's Lysine Products | Period | Average Price (per tonne) | | :--- | :--- | | H1 2025 | **RMB 7,700 to RMB 8,100** (Decrease **23%-27%**) | | End of June 2024 | **RMB 10,200 to RMB 10,500** | - The Group strengthened domestic market sales and developed new non-EU markets, launching various new amino acid products with higher profit margins, resulting in significant growth in amino acid segment revenue and gross profit[29](index=29&type=chunk) - The boiler renovation project restarted and commenced construction in **July 2025**, expected to further reduce amino acid production costs and enhance market competitiveness[29](index=29&type=chunk) - The Group is actively committed to resuming production at the Xinglongshan plant, exploring the introduction of business alliances or investors, and collaborating on operating a synthetic biology pilot platform to enhance operational efficiency and strengthen working capital[29](index=29&type=chunk) [4.2 Financial Performance](index=14&type=section&id=4.2%20Financial%20Performance) The Group's financial performance for the period showed a **significant 32.0% increase in consolidated revenue**, with substantial improvements in gross profit and gross profit margin, driven by enhanced production facility utilization and reduced unit production costs, despite a decline in average selling prices for amino acid products. However, the company still recorded a net loss due to the absence of one-off government grants and fair value gains on financial assets from the prior period. Administrative and other expenses significantly decreased following the disposal of the disposed group, but finance costs rose due to increased estimated interest on convertible bonds [4.2.1 Consolidated Revenue and Gross Profit](index=14&type=section&id=4.2.1%20Consolidated%20Revenue%20and%20Gross%20Profit) Consolidated revenue for the period **increased significantly by approximately 32.0% to approximately HKD 1,186 million**, primarily due to improved utilization of amino acid production facilities and a decrease in average unit production costs, despite a decline in average selling prices for amino acid products, with gross profit and gross profit margin also showing significant improvement - The average selling price of amino acid products decreased by **11.9%** during the period, but the utilization rate of amino acid production facilities increased, and the total average unit production cost decreased by **18.4%**[30](index=30&type=chunk) Consolidated Revenue, Gross Profit, and Gross Profit Margin Changes | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Consolidated Revenue | **HKD 1,186 million** (Increase **32.0%**) | **HK

目錄 | | 頁次 | | --- | --- | | 公司資料 | 2 | | 簡明綜合全面收益表 | 4 | | 簡明綜合財務狀況表 | 6 | | 簡明綜合權益變動表 | 9 | | 簡明綜合現金流量表 | 10 | | 簡明綜合中期財務資料附註 | 11 | | 管理層討論與分析 | 34 | | 其他資料 | 46 | 公司資料 執行董事 陳率堂先生 （聯席主席兼行政總裁） Zhang Xiaoyang先生 （聯席主席） 黃慧敏女士 孟禧臻女士 金哲輝先生 獨立非執行董事 周永東先生 譚日健先生 吳慶先生（於2025年7月2日獲委任） 鍾立力先生（於2025年2月3日獲委任 並於2025年7月2日辭任） 許人傑先生（於2025年2月3日辭任） 審核委員會 周永東先生 （主席） 譚日健先生 吳慶先生 （主席） （於2025年7月2日獲委任） 鍾立力先生（於2025年2月3日獲委任 並於2025年7月2日辭任） 許人傑先生（於2025年2月3日辭任） 薪酬委員會 吳慶先生 （主席） （於2025年7月2日獲委任） 譚日健先生 周永東先生 鍾立力先生 （主席） （於2025年2月3日獲委任 並於2025年 ...

[CORPORATE INFORMATION](index=3&type=section&id=CORPORATE%20INFORMATION) [Board of Directors](index=3&type=section&id=Board%20of%20Directors) This section lists the Board of Directors of Hop Fung Group Holdings Limited, including executive and independent non-executive directors, and the composition of various committees - Executive Directors include Mr. Hui Sum Ping (Chairman), Mr. Hui Sum Tai (Chief Executive Officer), and Ms. Hui Yuk Ling[3](index=3&type=chunk) - Independent Non-Executive Directors are Mr. Cho Sze Wai, Mr. Wong Chu Leung, and Mr. Chow Suk Ming[3](index=3&type=chunk) - Mr. Cho Sze Wai chairs the Audit, Remuneration, and Nomination Committees[3](index=3&type=chunk) [Other Corporate Details](index=3&type=section&id=Other%20Corporate%20Details) This section provides essential company information, including authorized representatives, company secretary, auditor, and stock code - Authorized representatives are Mr. Hui Sum Tai and Mr. Chan Wai Man, with Mr. Chan also serving as Company Secretary[4](index=4&type=chunk) - The company's auditor is ZHONGHUI ANDA CPA Limited[4](index=4&type=chunk) - The company's stock code is **2320**, and its official website is www.hopfunggroup.com[7](index=7&type=chunk) [CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20PROFIT%20OR%20LOSS%20AND%20OTHER%20COMPREHENSIVE%20INCOME) [Financial Performance Overview](index=5&type=section&id=Financial%20Performance%20Overview) For the six months ended June 30, 2025, group revenue significantly decreased by 35.9% to HK$69,134 thousand, resulting in lower gross profit and a period loss of HK$38,406 thousand, narrower than the prior year Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Revenue | 69,134 | 107,821 | | Cost of sales | (64,094) | (98,586) | | Gross profit | 5,040 | 9,235 | | Other income | 1,079 | 1,120 | | Other gains and losses | 1,782 | 175 | | Selling and distribution costs | (4,449) | (5,867) | | Administrative expenses | (16,112) | (17,983) | | Other expenses | (27,489) | (29,546) | | Finance costs | (1,662) | (1,831) | | Loss before tax | (41,811) | (44,697) | | Income tax credit | 3,405 | 1,020 | | Loss for the period | (38,406) | (43,677) | | Exchange differences | 19,849 | (22,724) | | Total comprehensive expense for the period | (18,557) | (66,401) | | Basic loss per share (HK cents) | (4.70) | (5.34) | - Revenue decreased by **35.9%** year-on-year, primarily due to reduced customer orders and intense market competition[11](index=11&type=chunk)[133](index=133&type=chunk) - Gross profit margin declined from **8.6%** in H1 2024 to **7.3%** in H1 2025, as revenue decreased more than cost of sales[133](index=133&type=chunk) - Other gains and losses increased from a net gain of **HK$175 thousand** in H1 2024 to a net gain of **HK$1,782 thousand** in H1 2025, mainly due to write-off of accrued expenses and other payables[11](index=11&type=chunk)[134](index=134&type=chunk) - Administrative expenses decreased by **10.5%** to **HK$16,112 thousand**, reflecting the Group's proactive review and streamlining of its cost structure[11](index=11&type=chunk)[135](index=135&type=chunk) - Loss for the period narrowed to **HK$38,406 thousand** from HK$43,677 thousand in the prior year[11](index=11&type=chunk)[140](index=140&type=chunk) [CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20FINANCIAL%20POSITION) [Financial Position Overview](index=7&type=section&id=Financial%20Position%20Overview) As of June 30, 2025, total assets slightly decreased, non-current assets remained stable, while current assets significantly declined due to reduced inventories, trade and other receivables, and bank balances and cash, leading to a lower current ratio Condensed Consolidated Statement of Financial Position (As at June 30) | Indicator | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | **Non-current assets** | | | | Property, plant and equipment | 659,510 | 665,812 | | Right-of-use assets | 17,449 | 17,493 | | Deposits and prepayments | 125,252 | 131,821 | | **Current assets** | | | | Inventories | 12,058 | 13,098 | | Trade and other receivables | 30,787 | 39,549 | | Bank balances and cash | 20,125 | 33,558 | | **Current liabilities** | | | | Trade and other payables | 61,812 | 77,581 | | Bank borrowings (due within one year) | 4,317 | 4,239 | | **Non-current liabilities** | | | | Bank borrowings (due after one year) | 87,595 | 88,128 | | Deferred tax | 5,347 | 8,969 | | **Equity** | | | | Share capital | 81,764 | 81,764 | | Reserves | 627,642 | 646,199 | | **Total equity** | 709,406 | 727,963 | - Net current assets significantly decreased from **HK$9,934 thousand** as at December 31, 2024, to **HK$137 thousand** as at June 30, 2025[15](index=15&type=chunk)[141](index=141&type=chunk) - The current ratio decreased from **1.12** as at December 31, 2024, to **1.0** as at June 30, 2025[141](index=141&type=chunk) - Total bank balances and cash decreased from **HK$33,558 thousand** to **HK$20,125 thousand**, with the majority denominated in RMB[15](index=15&type=chunk)[141](index=141&type=chunk) [CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY](index=9&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CHANGES%20IN%20EQUITY) [Equity Changes Overview](index=9&type=section&id=Equity%20Changes%20Overview) For the six months ended June 30, 2025, total equity decreased from HK$727,963 thousand to HK$709,406 thousand, primarily due to a period loss of HK$38,406 thousand, partially offset by an increase in exchange reserve Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30) | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | **Total at January 1** | 727,963 | 842,892 | | Loss for the period | (38,406) | (43,677) | | Other comprehensive income/(expense) for the period | 19,849 | (22,724) | | **Total comprehensive income/(expense) for the period** | (18,557) | (66,401) | | **Total at June 30** | 709,406 | 776,491 | - Exchange reserve recorded a positive change of **HK$19,849 thousand** in H1 2025, compared to a negative HK$22,724 thousand in H1 2024[19](index=19&type=chunk)[21](index=21&type=chunk) - Retained profits decreased due to the loss for the period, from **HK$286,647 thousand** as at January 1, 2025, to **HK$248,241 thousand**[19](index=19&type=chunk) [CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS](index=11&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CASH%20FLOWS) [Cash Flow Overview](index=11&type=section&id=Cash%20Flow%20Overview) For the six months ended June 30, 2025, the Group experienced net cash outflows from operating, investing, and financing activities, resulting in a net decrease of HK$13,838 thousand in cash and cash equivalents Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Net cash used in operating activities | (9,770) | (9,124) | | Net cash used in investing activities | (172) | (1,104) | | Net cash (used in)/generated from financing activities | (3,896) | 15,275 | | Net (decrease)/increase in cash and cash equivalents | (13,838) | 5,047 | | Cash and cash equivalents at January 1 | 33,558 | 47,272 | | Effect of foreign exchange rate changes | 405 | (1,425) | | Cash and cash equivalents at June 30 | 20,125 | 50,894 | - Net cash used in operating activities was slightly higher than the prior period, mainly impacted by changes in working capital[24](index=24&type=chunk) - Financing activities shifted from a net cash inflow in the prior period to a net cash outflow, primarily due to reduced new bank loans and bank loan repayments[26](index=26&type=chunk) - Total cash and cash equivalents as at June 30, 2025, amounted to **HK$20,125 thousand**, a significant decrease from HK$33,558 thousand as at January 1, 2024[26](index=26&type=chunk) [NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS](index=13&type=section&id=NOTES%20TO%20THE%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) [1. GENERAL](index=13&type=section&id=1.%20GENERAL) This note states that the company is an exempted limited company incorporated in the Cayman Islands, with its shares listed on The Stock Exchange of Hong Kong - The company is incorporated in the Cayman Islands, and its shares are listed on The Stock Exchange of Hong Kong[27](index=27&type=chunk)[30](index=30&type=chunk) [2. BASIS OF PREPARATION](index=13&type=section&id=2.%20BASIS%20OF%20PREPARATION) This note outlines the basis of financial statement preparation, discussing the going concern assumption and the Group's plans to mitigate liquidity pressure despite significant uncertainties - The financial statements are prepared in accordance with Hong Kong Accounting Standard 34 Interim Financial Reporting and Appendix D2 of the Listing Rules[28](index=28&type=chunk)[31](index=31&type=chunk) - The Group incurred losses in both H1 2025 and H1 2024 and faces significant contingent liabilities from the PRC tax authority, which may cast significant doubt on its ability to continue as a going concern[29](index=29&type=chunk)[32](index=32&type=chunk) - The Board has prepared cash flow forecasts and obtained a letter of intent for loan facilities of approximately **RMB300 million** from its principal bankers to support its going concern[33](index=33&type=chunk)[35](index=35&type=chunk) [3. PRINCIPAL ACCOUNTING POLICIES](index=15&type=section&id=3.%20PRINCIPAL%20ACCOUNTING%20POLICIES) This note states that the financial statements are prepared on a historical cost basis, confirming the Group's adoption of all new and revised HKFRSs, but not yet applying unissued standards - The financial statements are prepared on a historical cost basis, and the accounting policies adopted are consistent with those in the 2024 annual financial statements[36](index=36&type=chunk)[37](index=37&type=chunk)[40](index=40&type=chunk) - The adoption of new and revised HKFRSs did not result in significant changes to accounting policies, financial statement presentation, or reported amounts[38](index=38&type=chunk)[41](index=41&type=chunk) [4. REVENUE AND SEGMENT INFORMATION](index=16&type=section&id=4.%20REVENUE%20AND%20SEGMENT%20INFORMATION) This note discloses the Group's revenue and segment results, categorizing business into containerboard and corrugated packaging, with revenue primarily from corrugated packaging as of June 30, 2025 - The Group's manufacturing operations are located in the PRC, with operating segments including containerboard (corrugating medium and kraftliner) and corrugated packaging (corrugated paperboards and cartons)[42](index=42&type=chunk)[44](index=44&type=chunk)[45](index=45&type=chunk) Segment Revenue and Results (For the six months ended June 30) | Segment | 2025 Revenue (HK$'000) | 2025 Segment Loss (HK$'000) | 2024 Revenue (HK$'000) | 2024 Segment Loss (HK$'000) | | :--- | :--- | :--- | :--- | :--- | | Containerboard | – | (30,058) | – | (31,336) | | Corrugated packaging | 69,134 | (4,424) | 107,821 | (3,341) | | **Consolidated total** | **69,134** | **(34,482)** | **107,821** | **(34,677)** | - The containerboard business has generated no external revenue since 2022, primarily due to the temporary suspension of upstream operations[47](index=47&type=chunk)[129](index=129&type=chunk) [5. OTHER EXPENSES](index=18&type=section&id=5.%20OTHER%20EXPENSES) This note details the Group's other expenses, primarily comprising depreciation, other PRC taxes, and legal and professional fees Other Expenses (For the six months ended June 30) | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Other PRC taxes | 1,693 | 1,771 | | Depreciation | 24,329 | 24,864 | | Legal and professional fees | 958 | 2,210 | | Others | 509 | 701 | | **Total** | **27,489** | **29,546** | - Total other expenses decreased from **HK$29,546 thousand** in 2024 to **HK$27,489 thousand** in 2025, mainly due to reduced legal and professional fees[50](index=50&type=chunk)[136](index=136&type=chunk) [6. FINANCE COSTS](index=18&type=section&id=6.%20FINANCE%20COSTS) This note discloses the Group's finance costs, primarily consisting of interest on bank borrowings, which decreased due to bank loan repayments Finance Costs (For the six months ended June 30) | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Interest on bank borrowings | 1,660 | 1,826 | | Interest on lease liabilities | 2 | 5 | | **Total** | **1,662** | **1,831** | - Finance costs decreased from **HK$1,831 thousand** in 2024 to **HK$1,662 thousand** in 2025, primarily due to bank loan repayments[52](index=52&type=chunk)[139](index=139&type=chunk) [7. INCOME TAX CREDIT](index=19&type=section&id=7.%20INCOME%20TAX%20CREDIT) This note details the Group's income tax credit, including Hong Kong profits tax, PRC corporate income tax, and deferred tax credit, also mentioning preferential tax rates for high-tech PRC subsidiaries Income Tax Credit (For the six months ended June 30) | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Current tax: | | | | Hong Kong profits tax | 331 | 390 | | PRC corporate income tax | 3 | – | | **Subtotal** | **334** | **390** | | Deferred tax credit | (3,739) | (1,410) | | **Total** | **(3,405)** | **(1,020)** | - Hong Kong profits tax applies a two-tiered tax rate, with the first **HK$2 million** of assessable profits taxed at **8.25%** and the remainder at **16.5%**[54](index=54&type=chunk)[55](index=55&type=chunk) - PRC subsidiaries are subject to a **25%** tax rate, with one high-tech enterprise enjoying a preferential rate of **15%**[57](index=57&type=chunk)[60](index=60&type=chunk) [8. LOSS FOR THE PERIOD](index=20&type=section&id=8.%20LOSS%20FOR%20THE%20PERIOD) This note lists the key items included in or deducted from the loss for the period, such as depreciation, staff costs, and cost of inventories recognized as expense Items (credited)/charged to loss for the period (For the six months ended June 30) | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 25,105 | 25,652 | | Depreciation of right-of-use assets | 340 | 342 | | Staff costs (including directors' emoluments) | 17,394 | 19,574 | | Cost of inventories recognised as expense | 64,094 | 98,586 | | Exchange gains, net | (29) | (81) | - Staff costs (including directors' emoluments) decreased from **HK$19,574 thousand** in 2024 to **HK$17,394 thousand** in 2025[62](index=62&type=chunk) - Cost of inventories recognized as expense decreased from **HK$98,586 thousand** in 2024 to **HK$64,094 thousand** in 2025[62](index=62&type=chunk) [9. LOSS PER SHARE](index=21&type=section&id=9.%20LOSS%20PER%20SHARE) This note provides the calculation for basic and diluted loss per share, indicating a narrowing of the loss per share Loss Per Share (For the six months ended June 30) | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Loss for the purpose of calculating basic and diluted loss per share | (38,406) | (43,677) | | Weighted average number of ordinary shares | 817,644,000 | 817,644,000 | | **Basic and diluted loss per share (HK cents)** | **(4.70)** | **(5.34)** | - No assumption of share option exercise was made for diluted loss per share calculation, as the exercise price was higher than the average market price of shares[64](index=64&type=chunk)[66](index=66&type=chunk) [10. DIVIDENDS](index=21&type=section&id=10.%20DIVIDENDS) This note states that no dividends were declared or proposed by the Board for the six months ended June 30, 2025 - No dividends were declared or proposed for the six months ended June 30, 2025, and 2024[65](index=65&type=chunk)[67](index=67&type=chunk) [11. PROPERTY, PLANT AND EQUIPMENT](index=22&type=section&id=11.%20PROPERTY,%20PLANT%20AND%20EQUIPMENT) This note discloses the Group's capital expenditure on property, plant, and equipment - For the six months ended June 30, 2025, the Group acquired property, plant and equipment of approximately **HK$0.2 million**, a significant decrease from HK$1.06 million in the same period of 2024[68](index=68&type=chunk)[69](index=69&type=chunk)[142](index=142&type=chunk) [12. RIGHT-OF-USE ASSETS](index=22&type=section&id=12.%20RIGHT-OF-USE%20ASSETS) This note provides the carrying amount and depreciation expense of right-of-use assets, also mentioning the early termination of a Macau office lease agreement Right-of-Use Assets Carrying Amount and Depreciation Expense | Indicator | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Carrying amount | 17,449 | 17,493 | | Depreciation expense (For the six months ended June 30) | 340 | 342 | - The Group early terminated a Macau office lease agreement, derecognizing the related right-of-use assets and lease liabilities, and recognizing a gain on lease termination[72](index=72&type=chunk) [13. INVENTORIES](index=23&type=section&id=13.%20INVENTORIES) This note details the composition of the Group's inventories, primarily consisting of raw materials and finished goods Inventories Composition (As at June 30) | Indicator | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Raw materials | 11,834 | 12,965 | | Finished goods | 224 | 133 | | **Total** | **12,058** | **13,098** | - Total inventories decreased from **HK$13,098 thousand** as at December 31, 2024, to **HK$12,058 thousand** as at June 30, 2025[74](index=74&type=chunk) [14. TRADE AND OTHER RECEIVABLES](index=23&type=section&id=14.%20TRADE%20AND%20OTHER%20RECEIVABLES) This note provides a detailed analysis of trade and other receivables, including aging distribution and advances to Batangas Paper Corporation Trade and Other Receivables (As at June 30) | Indicator | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Trade receivables (net of allowance) | 21,548 | 30,422 | | Other receivables | 9,239 | 9,127 | | **Total** | **30,787** | **39,549** | Aging Analysis of Trade Receivables (As at June 30) | Aging | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Within 30 days | 14,169 | 20,504 | | 31-60 days | 6,474 | 9,488 | | 61-90 days | 413 | 341 | | Over 90 days | 492 | 89 | - Total trade and other receivables as at June 30, 2025, amounted to **HK$30,787 thousand**, a decrease from HK$39,549 thousand as at December 31, 2024[76](index=76&type=chunk) - Other receivables include advances of approximately **HK$7,695 thousand** to independent third party Batangas Paper Corporation, which are unsecured, interest-free, and repayable on demand[77](index=77&type=chunk) - Trade receivables overdue for 90 days or more increased from **HK$243 thousand** as at December 31, 2024, to **HK$506 thousand** as at June 30, 2025[80](index=80&type=chunk)[81](index=81&type=chunk) [15. TRADE AND OTHER PAYABLES](index=25&type=section&id=15.%20TRADE%20AND%20OTHER%20PAYABLES) This note presents the composition and aging analysis of the Group's trade and other payables, indicating a decrease in total payables Trade and Other Payables (As at June 30) | Indicator | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Trade payables | 16,236 | 22,703 | | Payables for acquisition of property, plant and equipment | 3,200 | 2,492 | | Other PRC taxes payable | 13,010 | 11,794 | | Accrued expenses | 25,692 | 37,811 | | Other payables | 3,674 | 2,781 | | **Total** | **61,812** | **77,581** | - Total trade and other payables decreased from **HK$77,581 thousand** as at December 31, 2024, to **HK$61,812 thousand** as at June 30, 2025[84](index=84&type=chunk) - Accrued expenses, including accrued salaries and wages, were a major component of payables, decreasing from **HK$37,811 thousand** to **HK$25,692 thousand**[84](index=84&type=chunk)[85](index=85&type=chunk) [16. LEASE LIABILITIES](index=26&type=section&id=16.%20LEASE%20LIABILITIES) This note discloses the Group's lease liabilities, primarily consisting of amounts repayable within one year Lease Liabilities (As at June 30) | Indicator | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Lease liabilities repayable within one year | 64 | 141 | | **Total** | **64** | **141** | - Total lease liabilities decreased from **HK$141 thousand** as at December 31, 2024, to **HK$64 thousand** as at June 30, 2025[88](index=88&type=chunk) [17. BANK BORROWINGS](index=27&type=section&id=17.%20BANK%20BORROWINGS) This note provides detailed information on the Group's bank borrowings, including their composition and repayment term distribution Bank Borrowings (As at June 30) | Indicator | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Total bank loans | 91,912 | 92,367 | | Repayable within one year | 4,317 | 4,239 | | Repayable after one year but within two years | 87,595 | 42,335 | | Repayable after two years but within five years | – | 45,793 | | **Amount shown under non-current liabilities** | **87,595** | **88,128** | - Total bank borrowings slightly decreased from **HK$92,367 thousand** as at December 31, 2024, to **HK$91,912 thousand** as at June 30, 2025[90](index=90&type=chunk)[145](index=145&type=chunk) - Bank borrowings repayable after one year but within two years significantly increased, while those repayable after two years but within five years were eliminated[90](index=90&type=chunk) [18. SHARE CAPITAL](index=28&type=section&id=18.%20SHARE%20CAPITAL) This note discloses the Group's authorized and issued and fully paid share capital, indicating a stable capital structure Share Capital (As at June 30) | Indicator | Number of shares | Amount (HK$'000) | | :--- | :--- | :--- | | Authorised share capital (HK$0.10 par value per share) | 1,000,000,000 | 100,000 | | Issued and fully paid share capital (HK$0.10 par value per share) | 817,644,000 | 81,764 | - As at June 30, 2025, issued and fully paid share capital was **HK$81,764 thousand**, consistent with December 31, 2024[94](index=94&type=chunk) [19. CAPITAL COMMITMENTS](index=28&type=section&id=19.%20CAPITAL%20COMMITMENTS) This note discloses the Group's capital commitments for the acquisition of plant and equipment Capital Commitments (As at June 30) | Indicator | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Capital expenditure for acquisition of plant and equipment – contracted but not provided for | 45,089 | 44,682 | - As at June 30, 2025, capital expenditure for acquisition of plant and equipment contracted but not provided for was **HK$45,089 thousand**, slightly higher than December 31, 2024[97](index=97&type=chunk) [20. LITIGATION AND CONTINGENT LIABILITIES](index=29&type=section&id=20.%20LITIGATION%20AND%20CONTINGENT%20LIABILITIES) This note details significant tax issues and related litigation faced by the Group's PRC subsidiary, involving VAT invoice irregularities and substantial tax arrears and administrative penalties - The Group's indirect wholly-owned subsidiary, Senye Paper, received tax assessment and administrative penalty decisions from Qingyuan Tax Bureau, demanding approximately **RMB109 million** in unpaid taxes and **RMB44.07 million** in administrative penalties[98](index=98&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk)[102](index=102&type=chunk) - Senye Paper's application for review of the tax assessment decision was rejected by the Guangdong High People's Court, and it has now applied for administrative supervision from the Qingyuan People's Procuratorate of Guangdong Province[105](index=105&type=chunk)[106](index=106&type=chunk)[108](index=108&type=chunk)[109](index=109&type=chunk)[113](index=113&type=chunk) - Senye Paper filed an administrative reconsideration and then an administrative lawsuit against the tax penalty decision, with the Guangzhou Railway Transportation Intermediate Court's second-instance judgment revoking the first-instance administrative judgment and dismissing Senye Paper's claims[111](index=111&type=chunk)[115](index=115&type=chunk)[117](index=117&type=chunk)[119](index=119&type=chunk)[120](index=120&type=chunk)[123](index=123&type=chunk) - The Board believes no provision for the related tax amounts is required as at June 30, 2025, as the Group is still seeking PRC legal advice[121](index=121&type=chunk)[124](index=124&type=chunk) [21. RELATED PARTY TRANSACTIONS](index=35&type=section&id=21.%20RELATED%20PARTY%20TRANSACTIONS) This note discloses the Group's related party transactions, primarily involving directors' emoluments and a warehouse lease agreement with an independent non-executive director Directors' Emoluments (For the six months ended June 30) | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Short-term benefits | 4,493 | 5,663 | | Pension scheme contributions | 31 | 82 | | **Total** | **4,524** | **5,745** | - The Group entered into a warehouse lease agreement with independent non-executive director Mr. Wong Chu Leung, with rental expenses of **HK$78 thousand** for the six months ended June 30, 2025, conducted on an arm's length basis[126](index=126&type=chunk)[127](index=127&type=chunk) [MANAGEMENT DISCUSSION AND ANALYSIS](index=36&type=section&id=MANAGEMENT%20DISCUSSION%20AND%20ANALYSIS) [BUSINESS REVIEW](index=36&type=section&id=BUSINESS%20REVIEW) In H1 2025, Group revenue declined by 35.9% due to reduced customer orders and increased market competition; the upstream containerboard business remains suspended, awaiting boiler conversion to resume production, while the Group focuses on cost control and operational efficiency - In H1 2025, Group revenue decreased by **35.9%**, primarily due to reduced customer orders, global economic downturn, and intense market competition[128](index=128&type=chunk)[131](index=131&type=chunk) - The upstream containerboard business has been suspended since October 2021, with ongoing coordination with local government for a coal-to-gas boiler conversion project, expected to resume production upon completion[129](index=129&type=chunk)[131](index=131&type=chunk) - The Group addresses challenges of soaring manufacturing costs and weak market demand by strengthening cost control management and enhancing operational efficiency[130](index=130&type=chunk)[132](index=132&type=chunk) [FINANCIAL REVIEW](index=37&type=section&id=FINANCIAL%20REVIEW) This section reviews the Group's H1 2025 financial performance, covering revenue, gross profit, expenses, EBITDA, period loss, liquidity, and capital resources - Revenue decreased by **35.9%** from **HK$107.8 million** in H1 2024 to **HK$69.1 million** in H1 2025[133](index=133&type=chunk)[137](index=137&type=chunk) - Gross profit decreased from **HK$9.2 million** to **HK$5.0 million**, with gross profit margin declining from **8.6%** to **7.3%**[133](index=133&type=chunk)[137](index=137&type=chunk) - Other gains and losses increased from a net gain of **HK$0.1 million** in H1 2024 to a net gain of **HK$1.8 million** in H1 2025, primarily due to the write-off of accrued expenses and other payables[134](index=134&type=chunk)[138](index=138&type=chunk) - Administrative expenses decreased to **HK$16.1 million**, reflecting the Group's proactive streamlining of its cost structure[135](index=135&type=chunk)[138](index=138&type=chunk) - EBITDA decreased by **HK$2.2 million** from **-HK$16.9 million** to **-HK$14.7 million**[140](index=140&type=chunk)[143](index=143&type=chunk) - Loss for the period narrowed to **HK$38.4 million** from HK$43.7 million in H1 2024[140](index=140&type=chunk)[143](index=143&type=chunk) - As at June 30, 2025, total cash and cash equivalents were **HK$20.1 million**, net current assets were **HK$0.1 million**, and the current ratio was **1.0**[141](index=141&type=chunk)[144](index=144&type=chunk) - The gearing ratio increased from **12.7%** as at December 31, 2024, to **13.0%** as at June 30, 2025; the net gearing ratio increased from **8.0%** to **10.0%**[145](index=145&type=chunk)[147](index=147&type=chunk) [OUTLOOK](index=39&type=section&id=OUTLOOK) The Group anticipates continued challenges in the corrugated packaging industry but sees opportunities from stricter plastic packaging regulations and e-commerce growth in China, focusing on strategic initiatives and the resumption of upstream operations for vertical integration advantages - The operating environment for the corrugated packaging industry is expected to remain challenging, impacted by soaring manufacturing costs and weak market demand[146](index=146&type=chunk)[148](index=148&type=chunk) - Stricter PRC government controls on plastic packaging and the growth of the e-commerce market are expected to stimulate demand for paper packaging, benefiting the Group's business[149](index=149&type=chunk)[151](index=151&type=chunk) - The Group will focus on key strategies including pricing power, increasing sales volume, enhancing production efficiency, and reducing energy consumption and raw material waste[150](index=150&type=chunk)[151](index=151&type=chunk) - The resumption of upstream operations, following coordination for the coal-to-gas boiler conversion project, will provide the Group with a competitive advantage through vertical integration[146](index=146&type=chunk)[148](index=148&type=chunk) [DISCLOSURE OF INTERESTS](index=41&type=section&id=DISCLOSURE%20OF%20INTERESTS) [DIRECTORS' INTERESTS IN SHARES, UNDERLYING SHARES AND DEBENTURES](index=41&type=section&id=DIRECTORS'%20INTERESTS%20IN%20SHARES,%20UNDERLYING%20SHARES%20AND%20DEBENTURES) This section discloses the interests and short positions of directors and their associates in the shares, underlying shares, and debentures of the Company and its associated corporations as at June 30, 2025 Directors' Interests in Shares of the Company (As at June 30) | Name of Director | Capacity | Number and class of securities | Approximate % of issued share capital | | :--- | :--- | :--- | :--- | | Mr. Hui Sum Ping | Beneficial owner | 132,400,681 shares | 16.19% | | | Interest in controlled corporation | 107,755,400 shares | 13.17% | | | Interest of spouse | 27,256,000 shares | 3.33% | | Mr. Hui Sum Tai | Beneficial owner | 150,556,430 shares | 18.41% | | | Interest of spouse | 5,110,000 shares | 0.62% | | Ms. Hui Yuk Ling | Beneficial owner | 1,200,000 shares | 0.14% | | | Interest of spouse | 500,000 shares | 0.06% | | Mr. Chow Suk Ming | Beneficial owner | 180,000 shares | 0.02% | | | Interest of spouse | 1,553,007 shares | 0.18% | - Mr. Hui Sum Ping and Mr. Hui Sum Tai are each deemed to have interests and short positions in **3,000,000** non-voting deferred shares of Hop Fung Gong Ming[157](index=157&type=chunk)[158](index=158&type=chunk)[160](index=160&type=chunk)[161](index=161&type=chunk) [SUBSTANTIAL SHAREHOLDERS' INTERESTS IN SHARES, UNDERLYING SHARES AND DEBENTURES](index=44&type=section&id=SUBSTANTIAL%20SHAREHOLDERS'%20INTERESTS%20IN%20SHARES,%20UNDERLYING%20SHARES%20AND%20DEBENTURES) This section lists the interests or short positions of substantial shareholders in the Company's shares or underlying shares as at June 30, 2025 Substantial Shareholders' Interests in Shares of the Company (As at June 30) | Name of Shareholder | Capacity | Number of issued shares held | Number of share options held | Approximate % of issued share capital | | :--- | :--- | :--- | :--- | :--- | | Mr. Hui Sum Ping | Beneficial owner/Interest in controlled corporation/Interest of spouse | 267,412,081 | 3,984,000 | 33.19% | | Goldspeed | Beneficial owner | 107,755,400 | – | 13.17% | | Mr. Hui Sum Tai | Beneficial owner/Interest of spouse | 155,666,430 | 3,984,000 | 19.52% | | Mr. Hui Sum Kwok | Beneficial owner/Interest of spouse | 171,227,882 | – | 20.94% | - Mr. Hui Sum Ping and his spouse, Ms. Kan Kin Yee, collectively hold **33.19%** of the Company's share interests and **3,984,000** share options[169](index=169&type=chunk)[173](index=173&type=chunk) - Goldspeed Holdings Limited, wholly-owned by Mr. Hui Sum Ping, holds **13.17%** of the share interests[169](index=169&type=chunk)[173](index=173&type=chunk) [SHARE OPTIONS](index=46&type=section&id=SHARE%20OPTIONS) This section details the terms, grants, and changes of the Company's 2013 and 2023 share option schemes, designed to incentivize employees and directors - The 2013 Share Option Scheme expired on June 2, 2023, but options granted thereunder remain valid and exercisable according to their terms[175](index=175&type=chunk)[178](index=178&type=chunk) Movements of Share Options (As at June 30) | Category | Date of Grant | Exercise Price per Share (HK$) | Outstanding at beginning of period | Outstanding at end of period | | :--- | :--- | :--- | :--- | :--- | | Director (Mr. Hui Sum Ping) | 2018.10.15 | 0.435 | 3,984,000 | 3,984,000 | | Director (Mr. Hui Sum Tai) | 2018.10.15 | 0.435 | 3,984,000 | 3,984,000 | | Director (Mr. Wong Chu Leung) | 2018.10.15 | 0.435 | 1,000,000 | 1,000,000 | | Associate of Director (Mr. Tsui Yung Wai) | 2018.10.15 | 0.435 | 3,484,000 | 3,484,000 | | **Total for all categories** | | | **12,452,000** | **12,452,000** | - As at June 30, 2025, a total of **12,452,000** share options granted under the 2013 Scheme remained outstanding, representing approximately **1.52%** of the issued shares[188](index=188&type=chunk)[190](index=190&type=chunk) - The 2023 New Share Option Scheme was approved by shareholders with a ten-year validity; as at June 30, 2025, no options were granted under this scheme, with **81,764,000** options available for grant[189](index=189&type=chunk)[190](index=190&type=chunk)[193](index=193&type=chunk)[195](index=195&type=chunk)[206](index=206&type=chunk)[207](index=207&type=chunk) - The exercise price of share options must not be less than the highest of the closing price on the grant date, the average closing price for the five business days immediately preceding the grant date, and the nominal value of the shares[182](index=182&type=chunk)[183](index=183&type=chunk)[208](index=208&type=chunk) [OTHER INFORMATION](index=54&type=section&id=OTHER%20INFORMATION) [Interim Dividend](index=54&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 Directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025[209](index=209&type=chunk)[213](index=213&type=chunk) [Human Resources](index=54&type=section&id=Human%20Resources) As at June 30, 2025, the Group employed approximately 206 full-time staff, offering competitive remuneration packages that may include share options and discretionary bonuses based on performance - As at June 30, 2025, the Group employed approximately **206** full-time staff, a decrease from 229 as at December 31, 2024[210](index=210&type=chunk)[214](index=214&type=chunk) - The Group offers competitive remuneration packages, potentially including share options and discretionary bonuses based on Group and individual performance[210](index=210&type=chunk)[214](index=214&type=chunk) [Corporate Governance](index=54&type=section&id=Corporate%20Governance) The Group is committed to high corporate governance standards, complying with Appendix C1 of the Listing Rules, though some deviations exist regarding the Chairman and CEO's responsibilities, audit committee meetings, and remuneration committee scope - The Group complies with the Corporate Governance Code, though the division of responsibilities between the Chairman and CEO is not formally documented, but directors believe responsibilities are clearly defined[215](index=215&type=chunk)[216](index=216&type=chunk) - The Audit Committee meets with the auditor once a year, deviating from the Code's requirement of at least twice annually, but communication occurs electronically[221](index=221&type=chunk)[222](index=222&type=chunk) - The Remuneration Committee reviews and recommends remuneration packages only for directors, not senior management, whose remuneration is handled by the Chairman and/or Chief Executive Officer[221](index=221&type=chunk)[222](index=222&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=56&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities, and no treasury shares were held - For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities[223](index=223&type=chunk)[227](index=227&type=chunk) - As at June 30, 2025, the Company held no treasury shares as defined by the Listing Rules[224](index=224&type=chunk)[228](index=228&type=chunk) [Model Code for Securities Transactions](index=56&type=section&id=Model%20Code%20for%20Securities%20Transactions) The Company has adopted its own code of conduct for directors' securities transactions, with terms no less exacting than the Model Code in Appendix C3 of the Listing Rules - The Company has adopted a code of conduct for directors' securities transactions, with terms no less exacting than the Model Code set out in Appendix C3 of the Listing Rules[225](index=225&type=chunk)[229](index=229&type=chunk) [Review of Accounts](index=56&type=section&id=Review%20of%20Accounts) The Audit Committee has reviewed the interim financial results and report with management, discussing risk management, internal controls, and financial reporting matters - The Audit Committee has reviewed the interim financial results and report, discussing risk management, internal controls, and financial reporting matters[226](index=226&type=chunk)[230](index=230&type=chunk) [Appreciation](index=57&type=section&id=Appreciation) The Board extends its sincere gratitude to shareholders, business partners, and all staff - The Board expresses gratitude to shareholders, business partners, and staff for their support, commitment, and diligence[231](index=231&type=chunk)

EVA Precision Industrial Holdings Limited 億和精密工業控股有限 公 司 Unit 8, 6th Floor, Greenfield Tower, Concordia Plaza No.1 Science Museum Road, Kowloon, Hong Kong 香港九龍科學館道1號康宏廣場南座6樓8室 Telephone 電話: 852-2620 6488 Facsimile 傳真: 852-2191 9978 Website 網站: www.eva-group.com 億和深圳（石岩 Postcode EVA Shenzhen (Shiyan) Electronic Industrial Park No.11 Guo Tai Road, Tang Tou Community Shi Yan Town, Bao An District, Shenzhen Guangdong Province, the People's Republic of China 中國廣東省深圳市寶安區石岩街道塘頭社區國泰路11號 ）電子產業園 郵編: 518108 EVA Suzhou ...