Company Overview [Company Profile and Business Scope](index=4&type=section&id=Company%20Profile%20and%20Business%20Scope) Grandjoy Services is a leading high-end property management and urban operation service provider in China, managing 623 projects across 70 cities with 108.5 million square meters GFA under management - Grandjoy Services is a rapidly growing high-end property management and urban operation service provider in China, ranking **13th** among the top 100 property management enterprises and consistently topping China's high-end property service capability list for several years[6](index=6&type=chunk) - The company's business covers **70** cities across **24** provinces, municipalities, and autonomous regions in China, managing **623** property projects with a total GFA under management of approximately **108.5 million square meters**[7](index=7&type=chunk)[9](index=9&type=chunk) - Service types include residential communities, commercial properties (office buildings, shopping malls), and public properties (schools, government facilities), along with value-added services to non-property owners (sales assistance, consulting, smart park solutions, unit repair) and community value-added services (home beautification platform, community living, community space operation, real estate brokerage)[8](index=8&type=chunk) Company Information [Basic Information and Board Composition](index=5&type=section&id=Basic%20Information%20and%20Board%20Composition) This section outlines Grandjoy Services' fundamental company details and the composition of its Board of Directors and key committees Company Basic Information | Metric | Content | | :--- | :--- | | Company Legal Name | Grandjoy Property Services Development Co., Ltd. | | Stock Code | 00816 | | Listing Date | March 10, 2022 | | Principal Place of Business in China | 6/F, You'an International Building, No. 2 Xitieying Middle Road, Fengtai District, Beijing, China | | Registered Office | Units 4702-03, 47/F, Convention Plaza Office Tower, 1 Harbour Road, Wanchai, Hong Kong | - The Board of Directors includes Executive Directors Song Liuyi (Chairman), Li Yulong (CEO), Zhao Jinlong (CFO), Non-executive Directors Qiao Xiaojie, Gan Yong, and Independent Non-executive Directors Chen Jieping, Han Jian, Huang Chengs[10](index=10&type=chunk) - The company has established an Audit Committee, a Remuneration and Nomination Committee, and a Strategy and ESG Committee to ensure a sound corporate governance structure[10](index=10&type=chunk) Financial Highlights [Consolidated Performance Overview](index=6&type=section&id=Consolidated%20Performance%20Overview) Revenue grew **19.6%** to **RMB1,783.4 million** for H1 2025, but margins declined, with profit attributable to owners up **3.1%** Consolidated Results for the Six Months Ended June 30, 2025 | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,783,388 | 1,491,371 | 19.6% | | Gross Profit | 401,592 | 366,447 | 9.6% | | Gross Profit Margin (%) | 22.5% | 24.6% | -2.1 percentage points | | Profit for the Period | 184,414 | 180,958 | 1.9% | | Net Profit Margin (%) | 10.3% | 12.1% | -1.8 percentage points | | Profit Attributable to Owners of the Parent | 178,759 | 173,436 | 3.1% | | Basic and Diluted Earnings Per Share (RMB) | 0.20 | 0.19 | 5.3% | [Consolidated Financial Position Overview](index=6&type=section&id=Consolidated%20Financial%20Position%20Overview) Total assets grew **5.0%** to **RMB4,809.9 million** by June 30, 2025, with cash up **18.4%**, but total equity and current ratio decreased Consolidated Financial Position as of June 30, 2025 | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 4,809,940 | 4,581,922 | 5.0% | | Total Equity | 1,618,661 | 1,771,424 | -8.6% | | Equity Attributable to Owners of the Parent | 1,555,968 | 1,714,386 | -9.2% | | Cash Resources | 1,662,606 | 1,403,692 | 18.4% | | Current Ratio (times) | 1.29 | 1.39 | -0.10 | Chairman's Report [H1 2025 Review](index=7&type=section&id=H1%202025%20Review) In H1 2025, the domestic real estate market continued structural adjustments, and the property management industry faced dual challenges of policy price caps and rising demand for high-quality services, leading Grandjoy Services to upgrade services with "MOCO Service System 2.0" and maintain industry-leading satisfaction - The domestic real estate market continued its structural adjustment, with policies continuously optimizing supply and promoting demand release, though overall confidence recovery still requires time[18](index=18&type=chunk) - The property management industry faces challenges from property fee price caps and increased owner expectations for high-quality, diversified, and smart services, accelerating industry consolidation[18](index=18&type=chunk) - Grandjoy Services' H1 revenue was approximately **RMB1,783.4 million**, a year-on-year increase of **19.6%**; GFA under management was approximately **108.5 million square meters**, up **10.6%** year-on-year, with third-party managed area increasing to **55.5%**[19](index=19&type=chunk) - The company adheres to a high-quality development strategy of 'balancing quality and prioritizing quality over quantity', with market expansion contract value of **RMB160 million**, over **95%** located in first and second-tier cities, and successful expansion into high-end commercial and office projects[20](index=20&type=chunk) - By optimizing organizational structure, deepening lean management, and strengthening digital empowerment, the company enhances management effectiveness and operational efficiency[20](index=20&type=chunk) [Outlook](index=8&type=section&id=Outlook) For the second half, Grandjoy Services will focus on financial health, quality improvement, sustainable development, and organizational efficiency upgrades, implementing measures like accelerated collections, cost reduction, service digitalization, and market expansion - In the second half, the focus will be on financial health, ensuring cash flow security through accelerated collections, addressing inefficient projects, and implementing extreme cost reductions[21](index=21&type=chunk) - Strengthen the quality foundation, enhance basic service quality, stabilize existing business performance, and accelerate digital efficiency improvements to deepen customer satisfaction[21](index=21&type=chunk) - Expand growth space, tap into community value-added businesses, and improve market expansion capabilities and contract conversion efficiency[21](index=21&type=chunk) - Promote organizational efficiency upgrades by streamlining and optimizing the organization, strengthening performance incentives, and accelerating talent development to enhance strategic execution[21](index=21&type=chunk) - Prioritize strengthening risk control, ensuring full achievement of annual targets, and promoting stable and sustainable company development[22](index=22&type=chunk) Geographical Coverage [Geographical Distribution of Properties Under Management](index=10&type=section&id=Geographical%20Distribution%20of%20Properties%20Under%20Management) This section presents Grandjoy Services' geographical coverage by GFA under management and contracted GFA as of June 30, 2025, detailing its presence across various Chinese provinces and cities, primarily in East, North, South, Central, and Southwest China - The company's business covers multiple regions in China, including East China, North China, South China, Central China, and Southwest China, encompassing first-tier cities like Shanghai, Beijing, Guangzhou, and Shenzhen, as well as numerous new first-tier and second-tier cities[24](index=24&type=chunk) Management Discussion and Analysis [Business Review](index=11&type=section&id=Business%20Review) This section reviews Grandjoy Services' three core business lines: property management services, value-added services to non-property owners, and community value-added services, noting rapid growth in managed area, a decline in non-owner services revenue, and modest growth in community services, with community space operation and interior decoration platform services performing strongly - The company operates three business segments: property management services, value-added services to non-property owners, and community value-added services, also providing urban operation services[27](index=27&type=chunk) - As of June 30, 2025, GFA under management was approximately **108.5 million square meters**, an increase of approximately **10.6%** compared to June 30, 2024[35](index=35&type=chunk) Property Management Service Revenue by Property Type | Property Type | 2025 Revenue (RMB thousand) | 2025 Share (%) | 2024 Revenue (RMB thousand) | 2024 Share (%) | | :--- | :--- | :--- | :--- | :--- | | Residential Properties | 974,264 | 73.7 | 690,659 | 68.5 | | Non-residential Properties | 347,573 | 26.3 | 318,293 | 31.5 | | **Total** | **1,321,837** | **100** | **1,008,952** | **100** | GFA Under Management by Project Source | Project Source | June 30, 2025 Share (%) | June 30, 2024 Share (%) | | :--- | :--- | :--- | | Properties developed by China Jinmao Group and Sinochem Group and their subsidiaries | 44.5 | 49.5 | | Properties developed by independent third parties |

Financial Performance - The Group's revenue for the six months ended June 30, 2025, was approximately US$62.6 million, a decrease of approximately 19.3% from US$77.6 million for the same period in 2024[7] - Gross profit for the same period was approximately US$15.5 million, representing a decrease of approximately 11.5% from US$17.5 million in 2024[7] - Net profit attributable to owners of the Company was approximately US$2.7 million, a decrease of approximately 43.1% from US$4.8 million in 2024[7] - Earnings per share for the six months ended June 30, 2025, was US0.09 cent, down 40% compared to US0.15 cent for the same period in 2024[7] - The Board has resolved not to declare an interim dividend for the six months ended June 30, 2025[7] - Total comprehensive income for the period was US$11.3 million, compared to US$1.3 million in the same period of 2024[10] Assets and Liabilities - Current assets as of June 30, 2025, totaled US$253.5 million, a slight decrease from US$257.1 million as of December 31, 2024[13] - Cash and cash equivalents increased to US$90.6 million from US$84.1 million as of December 31, 2024[13] - Trade and other receivables decreased to US$92.1 million from US$101.8 million as of December 31, 2024[13] - The Group's total assets less current liabilities were US$182.8 million as of June 30, 2025, compared to US$182.8 million as of December 31, 2024[13] - As of June 30, 2025, net assets increased to $182,285,000 from $179,247,000 as of December 31, 2024, reflecting a growth of approximately 1.15%[14] - Lease liabilities decreased significantly from $3,579,000 to $514,000, indicating a reduction of about 85.6%[14] - Total equity attributable to owners of the Company rose to $181,172,000, up from $178,191,000, representing an increase of approximately 1.1%[14] - Total liabilities decreased to $117,872,000 as of June 30, 2025, from $131,123,000 as of December 31, 2024, indicating a reduction of 10.1%[42] Cash Flow - Cash generated from operations for the six months ended June 30, 2025, was $35,285,000, a substantial increase from $3,864,000 in the same period of 2024[17] - Net cash generated from operating activities reached $33,496,000, compared to $2,245,000 in the prior year, marking an increase of approximately 1,392%[17] - The Company reported a net cash used in investing activities of $842,000, a decrease from $14,779,000 generated in the same period last year[17] - Cash and cash equivalents at June 30, 2025, totaled $90,564,000, up from $70,780,000 at the same date in 2024, reflecting an increase of approximately 27.9%[17] Revenue Breakdown - Revenue from sales of land drilling equipment, offshore equipment, and marine equipment was $28,228,000, down 25.5% from $37,859,000 in 2024[28] - Revenue from oilfield supply chain and integration services decreased to $10,341,000, a decline of 29.1% from $14,526,000 in 2024[28] - Revenue from asset management and engineering service fee income was $8,537,000, down 33.3% from $12,802,000 in 2024[28] - Rental income from leasing of land and offshore drilling rigs classified as operating leases was $320,000, a decrease of 17.5% from $388,000 in 2024[28] - Rental income from sub-leasing of diving support construction vessels classified as operating leases increased to $14,623,000, up 27.5% from $11,444,000 in 2024[28] Segment Reporting - The Group's segment reporting includes three reportable segments: equipment manufacturing and packages, supply chain and integration services, and asset management and engineering services[29][34] - The measure used for reporting segment profit/loss is "adjusted earnings before finance costs and taxes" for individual segments[35] - Reportable segment revenue decreased to $75,171,000 in the first half of 2025 from $95,870,000 in the same period of 2024, reflecting a decline of 21.5%[41] - Reportable segment results for the six months ended June 30, 2025, were $6,625,000, down 18.4% from $8,121,000 in 2024[41] Strategic Initiatives - The company’s strategic plan for 2025 focuses on hydrogen-based energy and high-end equipment, aiming to become a green energy and equipment service provider for the shipping industry[81] - The company has secured orders for three large-format electrolyzers, with one successfully sold overseas, marking a significant step in global production capacity expansion[81] - The company aims to reduce clean hydrogen production costs to $1 per kilogram by 2030, focusing on high-temperature electrolyzer technology[1] - The company is committed to sustainable development and has launched a training program for young key personnel to prepare for future growth[151] Market Conditions - The global economic growth is projected at 2.8%, with developed economies growing by only 1.2% and emerging markets by 4.1%[80] - The international hydrogen industry is projected to attract direct investments of $320 billion by 2030, with China, the EU, and the US expected to dominate market shares[1] - In June 2025, average international oil prices for WTI, Brent, and Oman crude were $67.33, $69.80, and $69.12 per barrel, reflecting month-to-month increases of $6.39, $5.79, and $5.24 respectively[137] Shareholder Information - The Board has resolved not to declare an interim dividend for the six months ended June 30, 2025[163] - The 2025 Share Award Plan was amended to extend its term for 10 years, from January 14, 2025, to January 13, 2035[164] - The total number of shares that may be purchased under the 2025 Share Award Plan is limited to 5% of the total issued shares, approximately 162,171,695 shares[172]

Revenue Performance - Revenue from corporate finance advisory services for the Interim Period was approximately HK$7.2 million, down from approximately HK$11.0 million in 2024, representing a decrease of about 34.5%[19]. - Revenue from asset management services during the Interim Period was approximately HK$10.2 million, an increase from approximately HK$8.1 million in 2024, reflecting a growth of about 25.9%[23]. - Revenue for the Interim Period was approximately HK$23.3 million, down from approximately HK$24.8 million in 2024[36]. - Revenue from securities and related services was approximately HK$5.0 million, slightly up from approximately HK$4.9 million in 2024[30]. - Revenue from money lending and related business was approximately HK$0.9 million, an increase from approximately HK$0.8 million in 2024[38]. - Total revenue for the six months ended June 30, 2025, was HK$23,289,000, a decrease of 6.2% from HK$24,832,000 in the same period of 2024[159]. - Revenue from advisory and related services decreased to HK$7,163,000 from HK$11,034,000, a decline of approximately 34.5% year-over-year[180]. - Asset management services revenue increased to HK$9,840,000, up from HK$7,722,000, representing a growth of approximately 27.5%[180]. Profitability - The Group recorded a net profit of approximately HK$14.8 million for the Interim Period, a decrease of approximately HK$11.0 million compared to HK$25.8 million in 2024[35]. - Basic earnings per share for the Interim Period was HK0.65 cent, compared to HK1.24 cents in 2024[41]. - Profit before income tax for the period was HK$15,988,000, a decline of 40.6% compared to HK$26,941,000 in the previous year[160]. - Profit attributable to the owners of the Company was HK$14,764,000, down 42.9% from HK$25,813,000 in the same period last year[160]. - The total comprehensive income for the period was HK$16,427,000, down from HK$25,813,000, indicating a decline of approximately 36.4%[164]. Financial Position - The Group had cash and cash equivalents of approximately HK$114.0 million as of June 30, 2025, compared to approximately HK$98.6 million as of December 31, 2024[44]. - Total assets as of June 30, 2025, were approximately HK$938.5 million, an increase from approximately HK$757.2 million as of December 31, 2024[47]. - The Group's total liabilities as of June 30, 2025, were approximately HK$430.7 million, up from approximately HK$255.8 million as of December 31, 2024[51]. - Total equity attributable to the owners of the Company reached HK$507,757,000, up from HK$501,356,000, indicating an increase of approximately 1.8%[163]. - As of June 30, 2025, total assets amounted to HK$938,463,000, a slight decrease from HK$938,053,000 as of December 31, 2024[161]. Operational Highlights - The Group aims to adapt to rapid changes in the market and maintain resilience in its operations[2]. - The Group's corporate finance advisory services include advising on trading resumption, takeovers, and hostile situations[18]. - The Group's asset management services were provided to SHK Hong Kong Industries Limited and two investment funds, including YMHD Fund[23]. - The corporate finance advisory business remains competitive in the first half of 2025 despite increased IPO activities and improved market valuations in Hong Kong[111]. - The asset management business is expected to provide a long-term stable income source, with ongoing efforts to seek additional fund management opportunities[111]. Shareholder Information - As of June 30, 2025, Xu Haohao holds 680,106,534 shares, representing 29.85% of the total issued shares[115]. - Beyond Global Enterprises Limited holds 677,646,534 shares, accounting for 29.74% of the total issued shares as of June 30, 2025[123]. - Victory Gain Ventures Limited has a beneficial interest in 664,076,534 shares, which is 29.14% of the total issued shares[123]. - First Steamship Company Limited holds 663,320,000 shares, representing 29.11% of the total issued shares[123]. - Cheung Kit Shan Susanna has a family interest in 227,250,000 shares, which is 9.97% of the total issued shares[123]. Governance and Compliance - The audit committee reviewed the interim condensed consolidated financial statements for the six months ended June 30, 2025[135]. - The Company complied with all applicable code provisions of the Corporate Governance Code during the Interim Period[140]. - Ms. Li Ming was appointed as a member of the nomination committee in May 2025[141]. Future Outlook - The bank expects global growth to moderate slightly to 3.1% in 2025, down from 3.2% projected in late 2024, amid ongoing trade policy uncertainty[74]. - Future strategies may include further market expansion and potential new product developments based on segment performance analysis[198].

Company Information [Board of Directors and Committees](index=3&type=section&id=董事會及委員會) This chapter outlines the company's board members and their roles in audit, remuneration, and nomination committees, demonstrating the corporate governance structure - Board members include Mr. Kwok Lam Sik (Chairman), Mr. So Koon To (CEO and Vice Chairman) as executive directors, and Ms. Chan Po Yee, Mr. Cheung Kiu Chor, Mr. Liu Wing Tung as independent non-executive directors[6](index=6&type=chunk) - Ms. Chan Po Yee chairs the Audit Committee, Mr. Liu Wing Tung chairs the Remuneration Committee, and Mr. Cheung Kiu Chor chairs the Nomination Committee[6](index=6&type=chunk) [Company Contact Information](index=3&type=section&id=公司联络信息) This chapter provides detailed contact information for the company, including its registered office, principal places of business, share registrar, auditor, legal counsel, principal bankers, stock code, and website - Registered office in Cayman Islands, Macau head office and principal place of business in Dynasty Plaza, Hong Kong principal place of business in Hing Yip Commercial Centre[6](index=6&type=chunk) - Hong Kong share registrar is Tricor Investor Services Limited, auditor is Deloitte Touche Tohmatsu[7](index=7&type=chunk) - Principal bankers include Agricultural Bank of China Limited, Bank of Communications Co., Ltd., China Guangfa Bank Co., Ltd. Macau Branch, Dah Sing Bank Limited, and Tai Fung Bank Limited[8](index=8&type=chunk) Management Discussion and Analysis [Company Profile](index=5&type=section&id=公司簡介) MECOM Power and Construction Limited and its subsidiaries are a renowned integrated construction enterprise operating in Macau, Hong Kong, Singapore, and Australia, with core businesses in smart manufacturing, construction, and EV-related services - The Group is a renowned integrated construction enterprise with operations in high-growth potential regions including Macau, Hong Kong, Singapore, and Australia[9](index=9&type=chunk) - Business segments primarily include: (1) smart manufacturing (R&D and sales of new building materials, production and sales of smart machinery); (2) construction business (construction and renovation, high-voltage substation construction, E&M engineering, facility management and O&M services); (3) electric vehicle (EV) related services[9](index=9&type=chunk) - The Smart Manufacturing business officially commenced production of smart equipment for various high-rise buildings during the six months ended June 30, 2025 ("the Period")[11](index=11&type=chunk) [Business Review](index=6&type=section&id=業務回顧) Despite global economic uncertainties, AI innovation and government strategies drove growth in smart machinery and regional construction, leading to significant increases in the Group's overall revenue and net profit, with Hong Kong and Singapore markets showing strong contributions - Increased global economic uncertainty, but AI technology innovation and government strategic initiatives bring growth opportunities for smart machinery R&D and regional engineering construction[13](index=13&type=chunk) - Macau's GDP increased by **1.8%** compared to the previous period, tourist arrivals increased by **14.9%** year-on-year, and the region actively promotes economic diversification focusing on modern finance, data centers, and technological innovation[13](index=13&type=chunk) - Hong Kong market revenue contribution doubled compared to the previous period, becoming the second-largest market; Singapore market contribution rapidly grew from **0.4% to 3.9%** from the previous period[15](index=15&type=chunk) Performance Indicators | Indicator | 2025 (MOP million) | 2024 (MOP million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Overall Revenue | 803.2 | 746.2 | +7.6% | | Smart Manufacturing Revenue | 529.7 | 554.9 | -4.5% | | Smart Manufacturing % of Total | 65.9% | 74.4% | -8.5pp | | Gross Profit | 71.9 | 47.5 | +51.5% | | Gross Profit Margin | 9.0% | 6.4% | +2.6pp | | Net Profit | 20.4 | 8.0 | +155.3% | | Net Profit Margin | 2.5% | 1.1% | +1.4pp | | Construction Business Order Book | 595.3 | 682.1 (Dec 31, 2024) | -12.7% | | Smart Manufacturing Order Book | 567.0 | 618.1 (Dec 31, 2024) | -8.3% | [Smart Manufacturing Business](index=7&type=section&id=智能製造業務) Smart manufacturing contributed 65.9% of total revenue with an improved gross profit margin of 8.8%, driven by efficient delivery and quality, despite a slight sales volume decrease - Smart Manufacturing business contributed approximately **65.9% of total revenue**, delivering about **102,180 tonnes of contracted orders** for large public and private projects in Macau, Hong Kong, and Southeast Asia[17](index=17&type=chunk) - Smart Manufacturing gross profit margin increased to **8.8%** (previous period: 5.4%), primarily due to higher gross profit margins from sales orders in Hong Kong and Singapore[17](index=17&type=chunk)[27](index=27&type=chunk) - Strategic cooperation with Beijing Institute of Architectural Mechanization (a central state-owned enterprise) for joint R&D and promotion of green energy, new materials, and complete sets of smart equipment, with smart window cleaning equipment already in production[18](index=18&type=chunk) - Guangdong Jiangmen production plant expanded capacity in H1 2025, participating in new rounds of urban infrastructure projects such as Hong Kong's Northern Metropolis, Macau's New Urban Zone reclamation project, and Singapore's intercity rail[18](index=18&type=chunk) [Construction Business](index=9&type=section&id=建設業務) Construction business revenue significantly increased by 43.9% year-on-year, driven by key project milestones and deliveries, including Macau government data center and Coloane substation civil construction - Construction business revenue significantly increased by approximately **43.9%** compared to the same period in 2024, primarily due to the completion of important milestones and deliveries for several major projects[20](index=20&type=chunk)[24](index=24&type=chunk) - Successfully secured renovation projects and equipment procurement services for the Macau Government Data Center, casino renovation and improvement projects, with new project contracts totaling approximately **MOP158.6 million**[20](index=20&type=chunk) - Construction business gross profit margin remained stable, but construction and renovation engineering still recorded a gross loss margin of **7.1%**, and facility management services gross profit margin decreased to **22.1%**, mainly affected by inflation and unit price reductions by casino operators[20](index=20&type=chunk)[27](index=27&type=chunk) [Electric Vehicle Business](index=9&type=section&id=電動汽車業務) The EV business, through Free Charge (Macau) Limited, continues to provide charging services to high-end entertainment resorts, residential areas, and commercial buildings, diversifying the Group's revenue, but recorded a gross loss during the period - Indirect wholly-owned subsidiary Free Charge (Macau) Limited continues to provide paid EV charging services to various high-end integrated entertainment and resort complexes, premium residential areas, and commercial buildings, including City of Dreams, Studio City, and The Venetian[21](index=21&type=chunk) - EV business revenue decreased by **MOP1.12 million** or **77.1%**, primarily due to lower sales volume[22](index=22&type=chunk) - The EV business segment recorded a gross loss of **MOP33,000** during the period, due to continuous investment to expand market share and prepare for rapid future customer growth[27](index=27&type=chunk) [Financial Review](index=10&type=section&id=財務回顧) The Group's revenue increased by 7.6% to MOP803.2 million, gross profit surged by 51.5% to MOP71.9 million, and net profit rose by 155.3% to MOP20.4 million, driven by improved smart manufacturing margins and construction revenue growth, despite an EV business gross loss Revenue Breakdown (Six months ended June 30, 2025 vs. Six months ended June 30, 2024) | Business Segment | 2025 (MOP '000) | 2025 (%) | 2024 (MOP '000) | 2024 (%) | Change (MOP '000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Construction Business | 273,157 | 34.0 | 189,846 | 25.4 | +83,311 | +43.9% | | EV Business | 332 | 0.1 | 1,452 | 0.2 | -1,120 | -77.1% | | Smart Manufacturing Business | 529,678 | 65.9 | 554,866 | 74.4 | -25,188 | -4.5% | | **Total** | **803,167** | **100.0** | **746,164** | **100.0** | **+57,003** | **+7.6%** | Gross Profit and Gross Profit Margin Breakdown (Six months ended June 30, 2025 vs. Six months ended June 30, 2024) | Business Segment | 2025 Gross Profit (MOP '000) | 2025 Gross Margin (%) | 2024 Gross Profit (MOP '000) | 2024 Gross Margin (%) | Gross Profit Change (MOP '000) | Gross Margin Change (pp) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Construction Business | 25,540 | 9.3 | 18,342 | 9.7 | +7,198 | -0.4 | | Construction and Renovation | (6,077) | (7.1) | (10,273) | (16.0) | +4,196 | +8.9 | | High-Voltage Substation Construction | 3,467 | 6.8 | 140 | 1.5 | +3,327 | +5.3 | | E&M Engineering Services | 507 | 4.4 | 152 | 0.4 | +355 | +4.0 | | Facility Management Services | 27,643 | 22.1 | 28,323 | 34.5 | -680 | -12.4 | | EV Business | (33) | (10.1) | (1,008) | (69.4) | +975 | +59.3 | | Smart Manufacturing Business | 46,412 | 8.8 | 30,143 | 5.4 | +16,269 | +3.4 | | **Total** | **71,919** | **9.0** | **47,477** | **6.4** | **+24,442** | **+2.6** | - Other income increased by **MOP7.2 million**, primarily due to the Group recognizing **MOP5.8 million** in insurance claim proceeds as compensation for certain defects identified in the second phase development of a new hotel complex in Cotai, Macau[28](index=28&type=chunk) - Administrative expenses increased by **MOP2.7 million** or **7.7%**, mainly due to the expansion of production facilities in China during the period, leading to increased salaries, other staff costs, and depreciation for the smart manufacturing business[32](index=32&type=chunk) - Finance costs decreased by **MOP0.9 million** or **17.5%**, due to a reduction in bank borrowings during the period[33](index=33&type=chunk) - Profit for the period increased by **MOP12.4 million** or **155.3%**, with the net profit margin improving from **1.1%** in the previous period to **2.5%** in the current period[35](index=35&type=chunk) [Liquidity and Financial Resources](index=13&type=section&id=流動資金及財務資源) The Group maintains a prudent cash management approach and a robust liquidity position, with increased net current assets and cash balances, reduced bank borrowings, and a lower gearing ratio - Net current assets increased to **MOP242.0 million** (December 31, 2024: MOP229.1 million)[37](index=37&type=chunk) - Current ratio remained at **1.4 times**[37](index=37&type=chunk) - Total cash and bank balances increased to **MOP116.6 million** (December 31, 2024: MOP61.3 million)[37](index=37&type=chunk) - Outstanding bank borrowings decreased to **MOP240.5 million** (December 31, 2024: MOP257.7 million)[37](index=37&type=chunk) - Gearing ratio decreased to **47.2%** (December 31, 2024: 53.5%)[37](index=37&type=chunk) [Capital Structure](index=13&type=section&id=資本架構) As of June 30, 2025, the company's share capital and total equity both increased, reflecting a strengthened financial foundation - As of June 30, 2025, the company's share capital was **MOP41.0 million** (December 31, 2024: MOP41.0 million)[38](index=38&type=chunk) - As of June 30, 2025, the company's total equity was **MOP510.0 million** (December 31, 2024: MOP481.9 million)[38](index=38&type=chunk) [Foreign Exchange Risk](index=13&type=section&id=外匯風險) The Group's currency risk primarily arises from RMB-denominated steel material purchases and HKD-denominated sales, which management continuously monitors and manages - The Group's currency risk primarily arises from the purchase of steel materials denominated in RMB, while sales are denominated in HKD[39](index=39&type=chunk) - Management will monitor and review the Group's foreign exchange risk from time to time and ensure that appropriate measures are taken promptly and effectively to manage currency risk[39](index=39&type=chunk) [Material Investments, Acquisitions or Disposals, and Future Plans](index=13&type=section&id=重大投資%E3%80%81重大收購或出售以及重大投資或資本資產的未來計劃) During the reporting period, the Group did not undertake any material investments, acquisitions, or disposals, nor does it have other significant future plans for investments or capital assets - The Group had no material investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during the period[40](index=40&type=chunk) - Save as disclosed in this report, the Group had no material future plans for investments or capital assets as of June 30, 2025[41](index=41&type=chunk) [Pledged Assets](index=14&type=section&id=資產抵押) As of June 30, 2025, the Group has pledged bank deposits and certain property, plant, and equipment as collateral for credit facilities - As of June 30, 2025, the Group had pledged **MOP45.3 million** in bank deposits (December 31, 2024: MOP27.9 million) to banks[42](index=42&type=chunk) - As of June 30, 2025, the Group had pledged **MOP258.1 million** in property, plant and equipment (including right-of-use assets) (December 31, 2024: MOP258.9 million) to banks as collateral for credit facilities[42](index=42&type=chunk) [Contingent Liabilities and Commitments](index=14&type=section&id=或然負債及承擔) As of June 30, 2025, the Group had no material contingent liabilities or significant capital commitments - The Group had no material contingent liabilities as of June 30, 2025 (December 31, 2024: Nil)[43](index=43&type=chunk) - As of June 30, 2025, the Group had no material capital commitments (December 31, 2024: MOP4,530,000)[44](index=44&type=chunk) [Employees and Remuneration Policy](index=14&type=section&id=僱員及薪酬政策) The Group's remuneration policy is based on employee performance, qualifications, position, and industry practice, with 507 employees globally as of June 30, 2025, and no share options granted, exercised, cancelled, or lapsed during the period - Employee remuneration packages generally include salaries, allowances, benefits-in-kind, other benefits including medical insurance and provident fund contributions, and bonuses; overall, the Group determines employee salaries based on their performance, qualifications, position, and prevailing industry practice[45](index=45&type=chunk) - As of June 30, 2025, the Group had **507 employees** (December 31, 2024: 405 employees) in Hong Kong, Macau, China, Singapore, and Cyprus[45](index=45&type=chunk) - No share options were granted, agreed to be granted, exercised, cancelled, or lapsed under the share option scheme during the period[45](index=45&type=chunk) [Outlook](index=14&type=section&id=展望) The Group will respond to the central government's "new quality productive forces" call by collaborating with Beijing Institute of Architectural Mechanization to develop and promote green energy, new materials, and smart equipment, while expanding intelligent rebar production lines and smart window cleaning devices, and actively pursuing data center construction and maintenance opportunities in emerging overseas markets like Singapore - Responding to the central government's call for "new quality productive forces," the Group has become a strategic partner with Beijing Institute of Architectural Mechanization, a national-level architectural machinery R&D institution and central state-owned enterprise, to jointly develop and promote green energy, new materials, and complete sets of specialized smart equipment manufacturing[46](index=46&type=chunk)[48](index=48&type=chunk) - Starting from the second half of 2025, the Group will progressively expand its full range of intelligent rebar production lines, which feature high technological content, significantly improving production efficiency, reducing labor costs, and lowering the incidence of production safety accidents[48](index=48&type=chunk) - Committed to building the only R&D and production base for smart window cleaning equipment and special building operation robots in South China, and collaborating with Beijing Institute of Architectural Mechanization to develop a series of highly complex smart window cleaning machines[48](index=48&type=chunk) - Seizing opportunities from the rapid popularization of AI and cloud services, which drive demand for computing network construction and data centers, to secure more public and private data center operation and maintenance orders[49](index=49&type=chunk) - Actively exploring emerging overseas markets such as Singapore, optimizing business layout to reduce reliance on a few markets, and building a more balanced and resilient development model[50](index=50&type=chunk) Review Report on Condensed Consolidated Financial Statements [Introduction](index=15&type=section&id=緒言) Deloitte Touche Tohmatsu has reviewed MECOM Power and Construction Limited's condensed consolidated financial statements for the six months ended June 30, 2025, prepared in accordance with HKEX Listing Rules and IAS 34 - Deloitte Touche Tohmatsu has reviewed the Group's condensed consolidated financial statements for the six months ended June 30, 2025[51](index=51&type=chunk) - The financial statements are prepared in accordance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and International Accounting Standard 34 "Interim Financial Reporting"[51](index=51&type=chunk) [Scope of Review](index=16&type=section&id=審閱範圍) The review was conducted in accordance with HKSAE 2410, which is less extensive than an audit, thus no audit opinion is expressed - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Hong Kong Institute of Certified Public Accountants[52](index=52&type=chunk) - A review is substantially less in scope than an audit conducted in accordance with Hong Kong Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit, accordingly, we do not express an audit opinion[52](index=52&type=chunk) [Conclusion](index=16&type=section&id=結論) The review found no matters suggesting that the condensed consolidated financial statements were not prepared in all material respects in accordance with IAS 34 - Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated financial statements are not prepared, in all material respects, in accordance with International Accounting Standard 34[53](index=53&type=chunk) Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the Group's revenue was MOP803,167 thousand, with profit for the period at MOP20,378 thousand, a significant 155.3% increase year-on-year, driven by 51.5% gross profit growth and increased other income and exchange gains Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Six months ended June 30, 2025 vs. Six months ended June 30, 2024) | Indicator | 2025 (MOP '000) | 2024 (MOP '000) | Change (MOP '000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 803,167 | 746,164 | +57,003 | +7.6% | | Cost of goods and services | (731,248) | (698,687) | (32,561) | +4.7% | | Gross profit | 71,919 | 47,477 | +24,442 | +51.5% | | Other income | 8,581 | 1,343 | +7,238 | +538.9% | | Other gains and losses | 4,169 | 1,792 | +2,377 | +132.7% | | Distribution costs | (15,098) | (12,002) | (3,096) | +25.8% | | Net impairment losses | (2,631) | 6,153 | (8,784) | -142.8% | | Administrative expenses | (37,813) | (35,108) | (2,705) | +7.7% | | Finance costs | (4,444) | (5,388) | +944 | -17.5% | | Profit before tax | 24,689 | 9,598 | +15,091 | +157.2% | | Income tax expense | (4,311) | (1,616) | (2,695) | +166.8% | | **Profit for the period** | **20,378** | **7,982** | **+12,396** | **+155.3%** | | Total comprehensive income for the period | 28,232 | 1,522 | +26,710 | +1754.9% | | Basic earnings per share (MOP cents) | 0.40 | 0.17 | +0.23 | +135.3% | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets less current liabilities were MOP583,857 thousand, and net assets were MOP510,009 thousand, reflecting a solid financial position with increased net current assets and cash, and reduced trade and other receivables Summary of Condensed Consolidated Statement of Financial Position (As of June 30, 2025 vs. As of December 31, 2024) | Indicator | June 30, 2025 (MOP '000) | Dec 31, 2024 (MOP '000) | Change (MOP '000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Non-current assets | 341,866 | 346,808 | (4,942) | -1.4% | | Current assets | 815,497 | 792,296 | +23,201 | +2.9% | | Inventories | 139,710 | 103,069 | +36,641 | +35.5% | | Contract assets | 54,378 | 62,065 | (7,687) | -12.4% | | Trade and other receivables | 454,804 | 531,813 | (77,009) | -14.5% | | Pledged bank deposits | 45,270 | 27,928 | +17,342 | +62.1% | | Cash and cash equivalents | 116,632 | 61,315 | +55,317 | +90.2% | | Current liabilities | 573,506 | 563,170 | +10,336 | +1.8% | | Trade payables and accrued expenses | 299,683 | 310,605 | (10,922) | -3.5% | | Bank borrowings (current) | 166,785 | 163,911 | +2,874 | +1.8% | | Contract liabilities | 87,408 | 61,518 | +25,890 | +42.1% | | **Net current assets** | **241,991** | **229,126** | **+12,865** | **+5.6%** | | Non-current liabilities | 73,848 | 94,019 | (20,171) | -21.5% | | **Net assets** | **510,009** | **481,915** | **+28,094** | **+5.8%** | | Total equity | 510,009 | 481,915 | +28,094 | +5.8% | Condensed Consolidated Statement of Changes in Equity For the six months ended June 30, 2025, equity attributable to owners increased from MOP371,100 thousand to MOP391,788 thousand, primarily due to profit for the period and other comprehensive income from exchange differences, alongside a significant increase in non-controlling interests and minor share repurchases Summary of Condensed Consolidated Statement of Changes in Equity (As of June 30, 2025 vs. As of January 1, 2024) | Indicator | June 30, 2025 (MOP '000) | Jan 1, 2024 (MOP '000) | Change (MOP '000) | | :--- | :--- | :--- | :--- | | Equity attributable to owners of the Company | 391,788 | 376,114 | +15,674 | | Non-controlling interests | 118,221 | 103,851 | +14,370 | | **Total equity** | **510,009** | **479,965** | **+30,044** | | Profit for the period (attributable to owners) | 15,867 | 6,949 | +8,918 | | Other comprehensive income for the period (attributable to owners) | 4,959 | (3,979) | +8,938 | | Shares repurchased and cancelled | (138) | 0 | (138) | - Total comprehensive income for the period was **MOP28,232 thousand**, of which **MOP20,826 thousand** was attributable to owners of the Company and **MOP7,406 thousand** to non-controlling interests[59](index=59&type=chunk) - Repurchase and cancellation of shares resulted in a decrease of **MOP7 thousand** in share capital and **MOP131 thousand** in share premium, totaling **MOP138 thousand**[59](index=59&type=chunk) Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2025, net cash from operating activities was MOP93,588 thousand, net cash used in investing activities was MOP20,561 thousand, and net cash used in financing activities was MOP25,500 thousand, with cash and cash equivalents increasing to MOP116,632 thousand at period-end Summary of Condensed Consolidated Statement of Cash Flows (Six months ended June 30, 2025 vs. Six months ended June 30, 2024) | Indicator | 2025 (MOP '000) | 2024 (MOP '000) | Change (MOP '000) | | :--- | :--- | :--- | :--- | | Net cash from operating activities | 93,588 | 71,289 | +22,299 | | Net cash used in investing activities | (20,561) | (33,729) | +13,168 | | Net cash (used in) from financing activities | (25,500) | 2,845 | (28,345) | | Net increase in cash and cash equivalents | 47,527 | 40,405 | +7,122 | | Cash and cash equivalents at end of period | 116,632 | 94,443 | +22,189 | - Net cash from operating activities increased, primarily due to higher profit before tax, a decrease in trade and other receivables, and an increase in contract liabilities[63](index=63&type=chunk) - Net cash used in investing activities decreased, mainly due to lower expenditure on the purchase of property, plant and equipment[63](index=63&type=chunk) - Financing activities shifted from net inflow to net outflow, primarily due to more repayment of bank borrowings than new bank borrowings raised, and the repurchase and cancellation of shares[65](index=65&type=chunk) Notes to the Condensed Consolidated Financial Statements [Basis of Preparation and Accounting Policies](index=22&type=section&id=1.%20編製基準) The condensed consolidated financial statements are prepared in accordance with IAS 34 and HKEX Listing Rules, using the historical cost basis, with no material impact from the first-time application of IFRS amendments - The condensed consolidated financial statements have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[66](index=66&type=chunk) - The condensed consolidated financial statements are prepared on the historical cost basis, except for certain financial instruments which are measured at fair value as appropriate[67](index=67&type=chunk) - The Group first applied amendments to IFRS accounting standards (IAS 21 (Amendment) Lack of Exchangeability) but it had no material impact on the Group's financial position and performance and/or disclosures in these condensed consolidated financial statements for the current and prior periods[68](index=68&type=chunk) [Revenue and Segment Information](index=22&type=section&id=3.%20收益及分部資料) The Group's reporting segments include construction, EV, and smart manufacturing, with total revenue of MOP803,167 thousand, where smart manufacturing was the largest contributor despite a revenue decrease, while construction revenue significantly grew, and Hong Kong and Singapore markets showed increased contributions - The Group's reporting segments include: (1) Construction Business; (2) Electric Vehicle Business; (3) Smart Manufacturing Business[70](index=70&type=chunk) Revenue from Contracts with Customers (Six months ended June 30, 2025 vs. Six months ended June 30, 2024) | Business Segment | 2025 (MOP '000) | 2024 (MOP '000) | Change (MOP '000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Construction Business | 273,157 | 189,846 | +83,311 | +43.9% | | EV Business | 332 | 1,452 | -1,120 | -77.1% | | Smart Manufacturing Business (Sales and Processing) | 517,922 | 554,866 | -36,944 | -6.7% | | Steel Structure Rental Income | 11,756 | – | +11,756 | N/A | | **Total Revenue** | **803,167** | **746,164** | **+57,003** | **+7.6%** | Segment Results (Six months ended June 30, 2025 vs. Six months ended June 30, 2024) | Segment | 2025 Segment Result (MOP '000) | 2024 Segment Result (MOP '000) | Change (MOP '000) | | :--- | :--- | :--- | :--- | | Construction Business | 16,014 | 3,203 | +12,811 | | EV Business | (182) | (1,690) | +1,508 | | Smart Manufacturing Business | 10,245 | 3,734 | +6,511 | | **Total** | **26,077** | **5,247** | **+20,830** | Geographical Revenue and Non-current Assets (As of June 30, 2025 vs. As of June 30, 2024/Dec 31, 2024) | Region | 2025 Revenue (MOP '000) | 2024 Revenue (MOP '000) | 2025 Non-current Assets (MOP '000) | 2024 Non-current Assets (MOP '000) | | :--- | :--- | :--- | :--- | :--- | | Macau | 500,933 | 587,798 | 88,664 | 97,048 | | China | 98,942 | 60,692 | 252,464 | 248,921 | | Hong Kong | 164,592 | 81,187 | – | – | | Singapore | 20,899 | 1,986 | – | – | | Cyprus | 17,801 | 14,501 | 738 | 839 | | **Total** | **803,167** | **746,164** | **341,866** | **346,808** | [Other Income](index=26&type=section&id=4.%20其他收入) Other income significantly increased to MOP8,581 thousand during the period, primarily driven by MOP5.8 million in insurance claim proceeds Other Income Breakdown (Six months ended June 30, 2025 vs. Six months ended June 30, 2024) | Item | 2025 (MOP '000) | 2024 (MOP '000) | Change (MOP '000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Bank interest income | 618 | 503 | +115 | +22.9% | | Government grants | 117 | 203 | -86 | -42.4% | | Others (primarily insurance claim proceeds) | 7,846 | 637 | +7,209 | +1131.7% | | **Total** | **8,581** | **1,343** | **+7,238** | **+538.9%** | - During the six months ended June 30, 2025, the Company received **MOP5.8 million** in compensation income from a customer's insurance company, related to repair costs for certain defects identified in one of the Group's construction projects in Macau that had been recognized and incurred in prior years[76](index=76&type=chunk) [Other Gains and Losses](index=27&type=section&id=5.%20其他收益及虧損) Net other gains and losses for the period amounted to MOP4,169 thousand, primarily contributed by exchange gains Other Gains and Losses Breakdown (Six months ended June 30, 2025 vs. Six months ended June 30, 2024) | Item | 2025 (MOP '000) | 2024 (MOP '000) | Change (MOP '000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Exchange gains, net | 4,173 | 1,846 | +2,327 | +126.1% | | Loss on write-off of property, plant and equipment | (4) | (54) | +50 | -92.6% | | **Total** | **4,169** | **1,792** | **+2,377** | **+132.7%** | [Income Tax Expense](index=27&type=section&id=6.%20所得稅開支) Income tax expense significantly increased to MOP4,311 thousand, mainly due to higher gross profit, with varying tax rates across regions and MOP44,473 thousand in unutilized tax losses at period-end Income Tax Expense Breakdown (Six months ended June 30, 2025 vs. Six months ended June 30, 2024) | Item | 2025 (MOP '000) | 2024 (MOP '000) | Change (MOP '000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Current tax | 3,500 | 2,645 | +855 | +32.3% | | Underprovision (overprovision) in prior years | 811 | (1,029) | +1,840 | -178.8% | | **Total** | **4,311** | **1,616** | **+2,695** | **+166.8%** | - Macau subsidiaries are taxed at **12%** on assessable profits exceeding MOP600,000; China subsidiaries at **25%**; Cyprus subsidiaries at **12.5%**; Hong Kong subsidiaries at **8.25% or 16.5%** (two-tiered system); Singapore subsidiaries at **17%**[79](index=79&type=chunk)[80](index=80&type=chunk)[81](index=81&type=chunk)[82](index=82&type=chunk) - As of the end of this interim period, the Group had unutilized tax losses of **MOP44,473 thousand** (December 31, 2024: MOP40,189 thousand) available to offset future profits; no deferred tax asset was recognized due to the unpredictability of future profit sources[82](index=82&type=chunk) [Finance Costs](index=28&type=section&id=7.%20融資成本) Finance costs decreased to MOP4,444 thousand, primarily due to reduced interest expense on bank borrowings Finance Costs Breakdown (Six months ended June 30, 2025 vs. Six months ended June 30, 2024) | Item | 2025 (MOP '000) | 2024 (MOP '000) | Change (MOP '000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Interest expense on bank borrowings | 4,420 | 5,373 | -953 | -17.7% | | Interest on lease liabilities | 24 | 15 | +9 | +60.0% | | **Total** | **4,444** | **5,388** | **-944** | **-17.5%** | [Profit for the Period](index=29&type=section&id=8.%20期內溢利) Profit for the period was MOP20,378 thousand, influenced by factors such as directors' emoluments, staff costs, impairment losses, depreciation, and short-term lease expenses Key Deductions from Profit for the Period (Six months ended June 30, 2025 vs. Six months ended June 30, 2024) | Item | 2025 (MOP '000) | 2024 (MOP '000) | Change (MOP '000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Directors' emoluments | 4,487 | 4,487 | 0 | 0.0% | | Total staff costs | 63,389 | 80,279 | -16,890 | -21.0% | | Net impairment losses | 2,631 | (6,153) | +8,784 | -142.8% | | Depreciation of property, plant and equipment | 13,828 | 4,566 | +9,262 | +202.8% | | Short-term lease related expenses | 3,305 | 2,262 | +1,043 | +46.1% | [Earnings Per Share](index=30&type=section&id=9.%20每股盈利) For the six months ended June 30, 2025, basic and diluted earnings per share attributable to owners of the Company were both MOP0.40 cents, an increase from the prior period, with no outstanding bonus warrants Earnings Per Share (Six months ended June 30, 2025 vs. Six months ended June 30, 2024) | Indicator | 2025 | 2024 | Change | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Profit for calculating basic and diluted EPS (MOP '000) | 15,867 | 6,949 | +8,918 | +128.3% | | Weighted average number of ordinary shares (thousands) | 3,980,817 | 3,986,007 | -5,190 | -0.13% | | **Basic EPS (MOP cents)** | **0.40** | **0.17** | **+0.23** | **+135.3%** | | **Diluted EPS (MOP cents)** | **0.40** | **0.17** | **+0.23** | **+135.3%** | - As of June 30, 2025, there were no bonus warrants issued or outstanding[86](index=86&type=chunk) [Property, Plant and Equipment](index=31&type=section&id=10.%20物業%E3%80%81廠房及設備) During the period, the Group purchased MOP5,383 thousand in plant and machinery and computer equipment, transferred MOP995 thousand in construction in progress to plant and machinery, and recognized MOP11,756 thousand in rental income from certain plant and machinery held for rental purposes - During this interim period, the Group purchased approximately **MOP5,383 thousand** (six months ended June 30, 2024: MOP10,428 thousand) of plant and machinery and computer equipment[87](index=87&type=chunk) - The Group transferred approximately **MOP995 thousand** of construction in progress to plant and machinery[87](index=87&type=chunk) - As of June 30, 2025, certain plant and machinery with a carrying amount of **MOP42,894 thousand** (December 31, 2024: MOP50,215 thousand) were held for rental purposes, and rental income of **MOP11,756 thousand** (six months ended June 30, 2024: Nil) was recognized[88](index=88&type=chunk) [Inventories](index=32&type=section&id=11.%20存貨) Inventories primarily consist of finished goods for the smart manufacturing business, accounted for at the lower of cost and net realizable value - Inventories primarily consist of finished goods for the smart manufacturing business, accounted for at the lower of cost and net realizable value[89](index=89&type=chunk) [Contract Assets](index=32&type=section&id=12.%20合約資產) Contract assets, mainly comprising unbilled revenue and retention receivables, totaled MOP54,378 thousand as of June 30, 2025, a decrease from the beginning of the period, with retention receivables at MOP40,343 thousand Contract Assets Breakdown (As of June 30, 2025 vs. As of December 31, 2024) | Item | 2025 (MOP '000) | 2024 (MOP '000) | Change (MOP '000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Contract assets from customer contracts | 59,479 | 67,581 | -8,102 | -12.0% | | Less: Provision for credit losses | (5,101) | (5,516) | +415 | -7.5% | | **Total** | **54,378** | **62,065** | **-7,687** | **-12.4%** | | Unbilled revenue | 14,035 | 21,125 | -7,090 | -33.6% | | Retention receivables | 40,343 | 40,940 | -597 | -1.5% | - As of June 30, 2025, retention money held by customers for contract works amounted to **MOP40,343 thousand** (December 31, 2024: MOP40,940 thousand), of which **MOP52 thousand** (December 31, 2024: MOP1,172 thousand) was held by related companies[93](index=93&type=chunk) Ageing Analysis of Retention Receivables (As of June 30, 2025 vs. As of December 31, 2024) | Ageing | 2025 (MOP '000) | 2024 (MOP '000) | | :--- | :--- | :--- | | Within 1 year | 11,811 | 12,810 | | After 1 year | 28,532 | 28,130 | | **Total** | **40,343** | **40,940** | [Trade and Other Receivables](index=34&type=section&id=13.%20貿易及其他應收款項) Total trade and other receivables amounted to MOP454,804 thousand, a decrease from the beginning of the period, with trade receivables (net of credit loss provision) at MOP286,985 thousand, some of which are overdue but not impaired Trade and Other Receivables Breakdown (As of June 30, 2025 vs. As of December 31, 2024) | Item | 2025 (MOP '000) | 2024 (MOP '000) | Change (MOP '000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Trade receivables from customer contracts (net of provision) | 286,985 | 372,169 | -85,184 | -22.9% | | Other receivables, deposits and prepayments | 167,819 | 159,644 | +8,175 | +5.1% | | **Total** | **454,804** | **531,813** | **-77,009** | **-14.5%** | Ageing Analysis of Trade Receivables (As of June 30, 2025 vs. As of December 31, 2024) | Ageing | 2025 (MOP '000) | 2024 (MOP '000) | | :--- | :--- | :--- | | 0 to 90 days | 187,572 | 270,702 | | 91 to 365 days | 80,154 | 72,765 | | 1 to 2 years | 13,954 | 21,178 | | Over 2 years | 5,305 | 7,524 | | **Total** | **286,985** | **372,169** | - As of June 30, 2025, the Group's trade receivables balance included gross carrying amounts of **MOP147,640 thousand** (December 31, 2024: MOP304,702 thousand) that were past due at the reporting date, of which **MOP63,600 thousand** (December 31, 2024: MOP76,485 thousand) were past due for more than 90 days and not considered to be in default[97](index=97&type=chunk) [Amounts Due from/to Related Companies](index=35&type=section&id=14.%20與關聯公司的款項) As of June 30, 2025, amounts due from related companies totaled MOP4,703 thousand, and amounts due to related companies were MOP79 thousand, with trade-related receivables from related companies having credit terms of 30 to 45 days Amounts Due from Related Companies (As of June 30, 2025 vs. As of December 31, 2024) | Item | 2025 (MOP '000) | 2024 (MOP '000) | | :--- | :--- | :--- | | Non-trade related amounts due from related companies | 3,573 | 4,989 | | Trade related amounts due from related companies (net of provision) | 1,130 | 1,117 | | **Total** | **4,703** | **6,106** | Amounts Due to Related Companies (As of June 30, 2025 vs. As of December 31, 2024) | Item | 2025 (MOP '000) | 2024 (MOP '000) | | :--- | :--- | :--- | | Non-trade related amounts due to related companies | 79 | 178 | - The Group generally grants its related companies credit terms of **30 to 45 days**[98](index=98&type=chunk)[99](index=99&type=chunk) - As of June 30, 2025, **MOP1,130 thousand** (2024: MOP1,117 thousand) of trade related amounts due from related companies were past due but not impaired[98](index=98&type=chunk)[99](index=99&type=chunk) [Pledged Bank Deposits / Cash and Cash Equivalents](index=36&type=section&id=15.%20已抵押銀行存款%E2%88%95現金及現金等價物) Pledged bank deposits, serving as collateral for bank guarantees and bills payable, amounted to MOP45,270 thousand at period-end, bearing interest rates from 0.21% to 3.35%, while bank balances earned 0.001% to 0.25% market interest - Pledged bank deposits refer to pledged fixed-rate bank deposits serving as collateral for the Group's bank guarantees and bills payable[100](index=100&type=chunk) - As of June 30, 2025, pledged bank deposits bore interest at annual rates ranging from **0.21% to 3.35%** (December 31, 2024: 0.21% to 3.65%)[100](index=100&type=chunk) - As of June 30, 2025, bank balances bore interest at prevailing market annual rates ranging from **0.001% to 0.25%** (December 31, 2024: 0.001% to 0.25%)[101](index=101&type=chunk) [Trade Payables and Accrued Expenses](index=36&type=section&id=16.%20貿易應付款項及應計費用) Total trade payables and accrued expenses were MOP299,683 thousand, a decrease from the beginning of the period, with trade purchases having credit terms of 0 to 90 days and retention payables at MOP22,438 thousand Trade Payables and Accrued Expenses Breakdown (As of June 30, 2025 vs. As of December 31, 2024) | Item | 2025 (MOP '000) | 2024 (MOP '000) | Change (MOP '000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Trade payables | 155,159 | 172,627 | -17,468 | -10.1% | | Retention payables | 22,438 | 24,338 | -1,900 | -7.8% | | Bills payable | 6,733 | 963 | +5,770 | +599.2% | | Other payables and accrued expenses | 115,328 | 112,677 | +2,651 | +2.4% | | **Total** | **299,683** | **310,605** | **-10,922** | **-3.5%** | Ageing Analysis of Trade Payables (As of June 30, 2025 vs. As of December 31, 2024) | Ageing | 2025 (MOP '000) | 2024 (MOP '000) | | :--- | :--- | :--- | | 0 to 90 days | 116,029 | 132,378 | | 91 to 365 days | 38,606 | 37,507 | | 1 to 2 years | 122 | 2,692 | | Over 2 years | 402 | 50 | | **Total** | **155,159** | **172,627** | Ageing Analysis of Retention Payables (As of June 30, 2025 vs. As of December 31, 2024) | Ageing | 2025 (MOP '000) | 2024 (MOP '000) | | :--- | :--- | :--- | | On demand or within 1 year | 18,381 | 21,077 | | After 1 year | 4,057 | 3,261 | | **Total** | **22,438** | **24,338** | [Bank Borrowings](index=38&type=section&id=17.%20銀行借款) Total bank borrowings decreased to MOP240,507 thousand, predominantly secured and collateralized by property, plant, and equipment, comprising both floating and fixed-rate loans Bank Borrowings Breakdown (As of June 30, 2025 vs. As of December 31, 2024) | Item | 2025 (MOP '000) | 2024 (MOP '000) | Change (MOP '000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Repayable within 1 year | 166,785 | 163,911 | +2,874 | +1.8% | | Repayable after 1 year but within 2 years | 68,224 | 23,433 | +44,791 | +191.2% | | Repayable after 2 years but within 5 years | 5,498 | 70,353 | -64,855 | -92.2% | | **Total** | **240,507** | **257,697** | **-17,190** | **-6.7%** | | Secured | 151,213 | 144,697 | +6,516 | +4.5% | | Unsecured | 89,294 | 113,000 | -23,706 | -21.0% | - The Group holds floating-rate bank loans totaling **MOP207,966 thousand** and fixed-rate bank loans totaling **MOP32,541 thousand** in Macau and China[106](index=106&type=chunk)[107](index=107&type=chunk) - **MOP151,213 thousand** of bank borrowings are secured by **MOP226,164 thousand** of property, plant and equipment (including right-of-use assets) and **MOP31,919 thousand** of construction in progress[107](index=107&type=chunk) [Share Capital](index=39&type=section&id=18.%20股本) As of June 30, 2025, issued and fully paid share capital was MOP41,001 thousand, a slight decrease from the beginning of the period, primarily due to share repurchases and cancellations Share Capital Movement (As of June 30, 2025 vs. As of January 1, 2024) | Item | June 30, 2025 (MOP '000) | Jan 1, 2024 (MOP '000) | Change (MOP '000) | | :--- | :--- | :--- | :--- | | Authorized share capital | 51,500 | 51,500 | 0 | | Issued and fully paid share capital | 41,001 | 41,056 | -55 | | Number of issued shares (thousands) | 3,980,719 | 3,985,997 | -5,278 | - The Company repurchased **680,000 shares** of the Company in January for a total consideration of approximately **HKD134,000** (equivalent to MOP138,000), and these shares have been cancelled[110](index=110&type=chunk) [Related Party Disclosures](index=39&type=section&id=19.%20關聯方披露) The Group engaged in transactions with related parties, including short-term office rental and management expenses, with total key management personnel compensation amounting to MOP7,075 thousand Related Party Transactions (Six months ended June 30, 2025 vs. Six months ended June 30, 2024) | Nature of Transaction | 2025 (MOP '000) | 2024 (MOP '000) | | :--- | :--- | :--- | | Short-term office rental expenses paid (Mr. Kwok and spouse) | 343 | 343 | | Management expenses paid (Hong Yip Construction Engineering Limited - China Construction (Hong Kong) - Hong Yip Joint Venture) | 2 | 57 | Key Management Personnel Compensation (Six months ended June 30, 2025 vs. Six months ended June 30, 2024) | Item | 2025 (MOP '000) | 2024 (MOP '000) | | :--- | :--- | :--- | | Short-term benefits | 7,064 | 7,058 | | Post-employment benefits | 11 | 11 | | **Total** | **7,075** | **7,069** | [Performance Guarantees and Contingent Liabilities](index=41&type=section&id=20.%20履約保證金及或然負債) The Group has issued performance guarantees for construction contracts, with MOP60,687 thousand outstanding at period-end, secured by pledged bank deposits, bills accepted, and corporate guarantees - As of the end of the reporting period, the Group's outstanding performance guarantees amounted to **MOP60,687 thousand** (December 31, 2024: MOP60,052 thousand)[115](index=115&type=chunk) - The Group has obtained credit facilities totaling approximately **MOP113,300 thousand** for the issued performance guarantees, secured by pledged bank deposits of approximately **MOP18,360 thousand**, bills accepted of approximately **MOP309,000 thousand**, and corporate guarantees provided by the Company[115](index=115&type=chunk) Other Information [Corporate Governance Practices](index=42&type=section&id=企業管治常規) The Company is committed to maintaining good corporate governance practices and has complied with all code provisions of the Corporate Governance Code under Appendix C1 of the HKEX Listing Rules - The Company has adopted the code provisions set out in the Corporate Governance Code under Appendix C1 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited as the basis for its corporate governance practices[116](index=116&type=chunk) - The Board believes that the Company has complied with all code provisions in Part 2 of the Corporate Governance Code throughout the period[117](index=117&type=chunk) [Standard Code for Securities Transactions](index=42&type=section&id=證券交易標準守則) The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers under Appendix C3 of the Listing Rules, requiring all directors and employees with inside information to comply, ensuring market fairness - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules as its own code of conduct regarding directors' securities transactions[118](index=118&type=chunk) - Following specific enquiries made to all Directors, each Director has confirmed that they have complied with the required standards set out in the Model Code throughout the period[118](index=118&type=chunk) - Pursuant to Rule B.13 of the Model Code, the Directors have also requested any employee of the Company or director or employee of a subsidiary of the Company who, because of their office or employment, may possess inside information in relation to the Company's securities, not to deal in the Company's securities during the periods prohibited by the Model Code[118](index=118&type=chunk) [Interim Dividend](index=42&type=section&id=中期股息) The Board did not recommend the payment of an interim dividend for the period - The Board did not recommend the payment of an interim dividend for the period (six months ended June 30, 2024: Nil)[119](index=119&type=chunk) [Purchase, Redemption or Sale of the Company's Listed Securities](index=43&type=section&id=購買%E3%80%81贖回或出售本公司上市證券) During the period, the Company repurchased and cancelled 680,000 shares on the Stock Exchange for approximately HKD134,000, which the Board believes enhanced earnings per share and benefited the Company and its shareholders as a whole - During the period, the Company repurchased **680,000 shares** of the Company on the Stock Exchange for a total consideration (including transaction costs) of approximately **HKD134,000**, and all repurchased shares were cancelled during the period[120](index=120&type=chunk) - The Board believes that the repurchase enhanced earnings per share and benefited the Company and its shareholders as a whole[120](index=120&type=chunk) - As of June 30, 2025, the Company had no treasury shares[120](index=120&type=chunk) [Pre-emptive Rights](index=43&type=section&id=優先認股權) There are no pre-emptive rights provisions under the Company's articles of association or Cayman Islands law requiring the Company to offer new shares proportionally to existing shareholders - There are no pre-emptive rights provisions under the Company's articles of association or the applicable laws of the Cayman Islands, where the Company is incorporated, that would oblige the Company to offer new shares proportionally to existing shareholders[121](index=121&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures](index=44&type=section&id=董事及主要行政人員於股份%E3%80%81相關股份及債權證中的權益及淡倉) As of June 30, 2025, Mr. Kwok Lam Sik and Mr. So Koon To held 51.27% long positions in the Company's shares through MECOM Holding Limited, with Ms. Chan Po Yee holding 0.02% beneficial interest Directors' and Chief Executive's Long Positions in Shares and Underlying Shares of the Company (As of June 30, 2025) | Director Name | Nature of Interest | Number of Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Kwok Lam Sik ("Mr. Kwok") | Interest in controlled corporation | 2,040,802,000 | 51.27% | | Mr. So Koon To ("Mr. So") | Interest in controlled corporation | 2,040,802,000 | 51.27% | | Ms. Chan Po Yee | Beneficial interest | 675,000 | 0.02% | - MECOM Holding Limited is owned by Mr. Kwok, Mr. So, Mr. Lam Kwok Wah, and Mr. Lau Ka Wah with **35%, 35%, 15%, and 15%** interests, respectively[123](index=123&type=chunk) - Mr. Kwok, Mr. So, Mr. Lam, and Mr. Lau are parties acting in concert[123](index=123&type=chunk) Directors' Interests in Associated Corporations of the Company (As of June 30, 2025) | Director Name | Name of Associated Corporation | Nature of Interest | Number of Shares | Percentage of Shareholding | | :--- | :--- | :--- | :--- | :--- | | Mr. Kwok | MECOM Holding Limited | Beneficial owner and interest held jointly with other persons | 100 | 100% | | Mr. So | MECOM Holding Limited | Beneficial owner and interest held jointly with other persons | 100 | 100% | [Substantial Shareholders' Interests in Shares and Underlying Shares](index=46&type=section&id=主要股東於股份及相關股份中的權益) As of June 30, 2025, Mr. Lam, Mr. Lau, and MECOM Holding Limited each held 51.27% long positions in the Company's shares, while Macau Ruiying Investment Limited and its owner Mr. Kwok Wai Hang held 13.58% long positions Substantial Shareholders' Long Positions in Shares and Underlying Shares of the Company (As of June 30, 2025) | Name/Company Name | Nature of Interest | Number of Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Lam | Interest in controlled corporation | 2,040,802,000 | 51.27% | | Mr. Lau | Interest in controlled corporation | 2,040,802,000 | 51.27% | | MECOM Holding Limited | Beneficial owner | 2,040,802,000 | 51.27% | | Mr. Kwok Wai Hang | Interest in controlled corporation | 540,617,500 | 13.58% | | Macau Ruiying Investment Limited | Beneficial owner | 540,617,500 | 13.58% | - MECOM Holding Limited is owned by Mr. Kwok, Mr. So, Mr. Lam, and Mr. Lau with **35%, 35%, 15%, and 15%** interests, respectively[128](index=128&type=chunk) - Mr. Kwok, Mr. So, Mr. Lam, and Mr. Lau are parties acting in concert[128](index=128&type=chunk) - Macau Ruiying Investment Limited is **100%** owned by Mr. Kwok Wai Hang[128](index=128&type=chunk) [Share Option Scheme](index=47&type=section&id=購股權計劃) The Company adopted a share option scheme in 2018 to recognize and reward eligible participants, but no options were granted, exercised, cancelled, or lapsed during the period - The Company adopted a share option scheme on January 23, 2018, which became effective upon the listing of the Company's shares on the Stock Exchange on February 13, 2018[129](index=129&type=chunk) - The purpose of the share option scheme is to recognize and reward eligible participants who have contributed or may contribute to the Group[129](index=129&type=chunk) - No share options were granted, agreed to be granted, exercised, cancelled, or lapsed under the share option scheme during the period[130](index=130&type=chunk) [Disclosure Requirements under Rule 13.21 of the Listing Rules](index=47&type=section&id=上市規則第13.21條項下的披露規定) The Company and its subsidiaries entered into several financing agreements with Tai Fung Bank (2024 and 2025 Financing Agreements A and B), which include a key default clause stating that a default event occurs if Mr. Kwok and Mr. So cease to exercise management control over the Company - In July 2024, Hong Yip Construction Engineering Limited and Sun Hong Yip Engineering Construction Limited (as borrowers) and the Company (as guarantor) entered into the 2024 Financing Agreement A with Tai Fung Bank, involving revolving bank guarantee commitments up to **HKD110,000,000** and revolving loan and bank overdraft facilities up to **HKD53,000,000**[131](index=131&type=chunk) - In October 2024, MECOM Construction (Macau) Limited (as borrower) and the Company and MECOM International New Material Technology (Guangdong) Co., Ltd. (as guarantors) entered into the 2024 Financing Agreement B with Tai Fung Bank, involving revolving invoice financing facilities up to **HKD40,000,000** and revolving loan facilities up to **HKD60,000,000**[132](index=132&type=chunk) - Under the terms of the 2024 Financing Agreements and 2025 Financing Agreements, a default event would occur if (among other things) Mr. Kwok and Mr. So cease to exercise management control over the Company[133](index=133&type=chunk)[137](index=137&type=chunk) [Audit Committee](index=48&type=section&id=審核委員會) The Audit Committee, comprising three independent non-executive directors chaired by Ms. Chan Po Yee, primarily assists the Board by providing independent opinions on financial reporting, internal controls, and risk management - The Audit Committee comprises three members, namely Ms. Chan Po Yee (Chairperson), Mr. Cheung Kiu Chor, and Mr. Liu Wing Tung, all of whom are independent non-executive directors[139](index=139&type=chunk) - The primary duties of the Audit Committee are to assist the Board in providing independent opinions on the Group's financial reporting process, internal control and risk management systems, monitoring the audit process, and performing other duties and responsibilities assigned by the Board[139](index=139&type=chunk) [Review of Interim Financial Information](index=48&type=section&id=審閱中期財務資料) The Audit Committee and external auditor Deloitte Touche Tohmatsu have reviewed the Group's condensed consolidated financial statements for the six months ended June 30, 2025, and this interim report - The Audit Committee and the Company's external auditor, Deloitte Touche Tohmatsu, have reviewed the accounting principles and practices adopted by the Group and have reviewed the Group's condensed consolidated financial statements for the six months ended June 30, 2025, and this interim report[140](index=140&type=chunk) [Events After Reporting Period](index=49&type=section&id=報告期後事項) As of the report date, there have been no other significant events affecting the Group after the reporting period, apart from those already disclosed - Save as disclosed in this report, no other significant events affecting the Group have occurred subsequent to June 30, 2025, and up to the date of this report[141](index=141&type=chunk)

和譽開曼有限責任公司 Abbisko Cayman Limited 股份代號 : 2256 （於開曼群島註冊成立的有限公司） 2025 中期報告 目錄 | 公司資料 | 2 | | --- | --- | | 業務亮點 | 4 | | 財務亮點 | 7 | | 管理層討論及分析 | 9 | | 其他資料 | 36 | | 核數師審閱中期簡明綜合財務報表之報告 | 69 | | 中期簡明綜合損益及其他全面收益表 | 70 | | 中期簡明綜合財務狀況表 | 71 | | 中期簡明綜合權益變動表 | 72 | | 中期簡明綜合現金流量表 | 74 | | 中期簡明綜合財務資料附註 | 76 | 公司資料 董事會 執行董事 徐耀昌博士 （主席） 喻紅平博士 嵇靖博士 （獲委任為執行董事，並自2025年3月3日起生效） 陳椎博士 （辭去執行董事職務，並自2025年3月3日起生效） 獨立非執行董事 孫飄揚博士 孫洪斌先生 徐海音女士 （獲委任為獨立非執行董事，並自2025年 2月28日起生效） 王磊先生 （辭去獨立非執行董事職務，並自2025年 2月28日起生效） 聯席公司秘書 喻紅平博士 陳燕華女士 授權代表 徐耀昌 ...

Here is the professionally structured report outline in Markdown format, with all requirements applied: [Company Information](index=3&type=section&id=Company%20Information) This section provides essential corporate details, including board composition, contact information, and registration specifics. [Board of Directors and Committee Composition](index=3&type=section&id=Board%20of%20Directors%20and%20Committee%20Composition) The company's board comprises executive and independent non-executive directors, with Ms. Jiang Xueying appointed as Audit Committee Chair on June 20, 2025. - Executive directors include Jia Xiaodong (Chairman and CEO), Huang Xiang, and Li Xin[3](index=3&type=chunk) - Independent non-executive director Ms. Jiang Xueying was appointed on **June 20, 2025**, as Audit Committee Chair, succeeding Mr. Liang Mingxu[3](index=3&type=chunk) [Company Contact and Registration Information](index=3&type=section&id=Company%20Contact%20and%20Registration%20Information) The company's registered office is in the Cayman Islands, with primary business locations in Hong Kong and Shenzhen, and stock code 02458. - The company's registered office is in the Cayman Islands, with its principal place of business in Hong Kong at 31/F, 148 Electric Road, North Point[4](index=4&type=chunk) - Its headquarters and principal place of business in China are in Shenzhen Qianhai, with the company website at www.galasports.com[5](index=5&type=chunk) - The company's stock code is **02458**[5](index=5&type=chunk) [Financial Performance Summary](index=5&type=section&id=Financial%20Performance%20Summary) This section outlines the group's key financial results for the reporting period, highlighting significant revenue, profit, and margin changes. [Group Performance Overview](index=5&type=section&id=Group%20Performance%20Overview) For the six months ended June 30, 2025, group revenue grew 48.9% to RMB 469.7 million, gross profit increased 38.6% to RMB 237.6 million, and profit for the period surged 110.3% to RMB 53.7 million. Summary of Financial Performance for the Six Months Ended June 30 | Metric | 2025 (RMB thousands) | 2025 (%) | 2024 (RMB thousands) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 469,681 | 100.0 | 315,379 | 100.0 | | Cost of Revenue | (232,122) | (49.4) | (143,976) | (45.7) | | Gross profit | 237,559 | 50.6 | 171,403 | 54.3 | | Other (losses)/gains, net | (6,072) | (1.3) | 535 | 0.2 | | Other income | 4,597 | 1.0 | 4,315 | 1.4 | | Selling and marketing expenses | (68,170) | (14.5) | (68,401) | (21.7) | | General and administrative expenses | (22,954) | (4.9) | (21,531) | (6.8) | | Research and development expenses | (84,317) | (18.0) | (58,899) | (18.7) | | Operating profit | 60,418 | 12.9 | 27,401 | 8.7 | | Profit before income tax | 58,303 | 12.4 | 25,589 | 8.1 | | Profit for the period | 53,710 | 11.4 | 25,539 | 8.1 | - Revenue increased year-on-year by **48.9%**, gross profit by **38.6%**, and net profit by **110.3%**[12](index=12&type=chunk) [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an in-depth review of the group's operational performance, strategic initiatives, and financial position. [Business Overview](index=6&type=section&id=Business%20Overview) The group, a leading technology-driven mobile sports game company in China, achieved outstanding performance in a complex global competitive environment, driven by its "Technology + IP + Regionalized Operations" strategy. - The Group is a leading technology-driven mobile sports game company in China, adhering to the principle of "Technology makes sports more fun"[7](index=7&type=chunk) - In the first half, the core business achieved full-chain value breakthroughs, benefiting from the "Technology + IP + Regionalized Operations" strategy[7](index=7&type=chunk) - Self-developed AIGC technology Arena 4D built a technological barrier, driving the synergistic leap in user scale and commercial performance across multiple product categories including football, basketball, and baseball[8](index=8&type=chunk) - Basketball game cumulative revenue exceeded **RMB 200 million**, baseball game monthly revenue exceeded **HKD 9 million**, and the football category maintained revenue growth during a "minor year" cycle[8](index=8&type=chunk) [Football Game Product Line Performance](index=6&type=section&id=Football%20Game%20Product%20Line%20Performance) This subsection details the performance and strategic achievements of the group's football game products. - Football Master 2 continued to show strong vitality five years after its launch, achieving steady expansion of its user base through user growth strategy adjustments[9](index=9&type=chunk) - Football Club achieved a resonance of product power and commercial value in the first half, enhancing experience standards based on neural network AI algorithms and the Motion Matching motion engine, with IP investment return rate over **300%**[10](index=10&type=chunk) - Football Club successfully renewed its contract with the German national team, added multiple Ballon d'Or level legendary players, and historically obtained full authorization for the Russian Premier League[10](index=10&type=chunk) [Basketball Game Product Line Performance](index=7&type=section&id=Basketball%20Game%20Product%20Line%20Performance) This subsection highlights the market impact and user growth of the group's basketball game products. - NBA Clash quickly established market influence since its launch in August 2024, topping the Apple App Store free download chart within three days of its debut[11](index=11&type=chunk) - As of June 30, 2025, the cumulative revenue scale in the Chinese mainland market surpassed a significant threshold, and total registered users exceeded **6 million**[11](index=11&type=chunk) - Brand building achieved breakthroughs, signing international top basketball player Butler as endorser and deeply participating in the Huawei Game Festival[11](index=11&type=chunk) [Baseball Game Product Line Performance](index=7&type=section&id=Baseball%20Game%20Product%20Line%20Performance) This subsection details the significant growth and market positioning of the group's baseball game products. - Baseball Master achieved a historic turning point in the first half, realizing double growth in user scale and revenue, with **750 thousand** new users and monthly active users increased year-on-year by **46%**[12](index=12&type=chunk) - In June 2025, game revenue exceeded **HKD 9 million**, achieving monthly profitability for the first time[12](index=12&type=chunk) - North American market payment rate increased year-on-year by **15.6%**, and monthly new users maintained **8%** steady growth, consolidating Top 2 position in North American MLB licensed category[12](index=12&type=chunk) [2025 Second Half Outlook](index=8&type=section&id=2025%20Second%20Half%20Outlook) The company will continue its technology-driven and global deep cultivation strategy in the second half, focusing on product experience iteration, emerging market breakthroughs, and event resource integration. - The second half will continue the technology-driven and global deep cultivation strategy, focusing on product experience iteration, emerging market breakthroughs, and event resource integration[14](index=14&type=chunk) - The football product line will optimize its product structure, focus on layout in Southeast Asia, and accelerate commercialization preparations for the mini-game 'Fantasy Manager'[14](index=14&type=chunk) - The baseball and basketball sectors will focus on in-depth development of the event economy, such as Baseball Master integrating with MLB postseason data, and NBA Clash launching independent distribution in Hong Kong, Macau, and Taiwan[15](index=15&type=chunk) - The company will build a multi-layered growth engine with technology refinement, regionalized operations, and ecological distribution as its strategic triangle[15](index=15&type=chunk) [Financial Review](index=9&type=section&id=Financial%20Review) This section provides a detailed review of the group's financial indicators for the six months ended June 30, 2025, including changes in revenue, cost of revenue, gross profit, various expenses, and finance costs, along with their primary reasons. [Revenue](index=9&type=section&id=Revenue) This subsection details the group's revenue performance and its contributing factors. Revenue by Distribution Model | | 2025 (RMB thousands) | 2025 (%) | 2024 (RMB thousands) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Self-published games | 469,070 | 99.9 | 314,563 | 99.7 | | Third-party published games | 611 | 0.1 | 816 | 0.3 | | Total | 469,681 | 100 | 315,379 | 100 | - Revenue increased year-on-year by **48.9%** to **RMB 469.7 million**, primarily due to the comprehensive upgrade of Football Club and the strong performance of the new game NBA Clash[17](index=17&type=chunk) [Cost of Revenue](index=9&type=section&id=Cost%20of%20Revenue) This subsection analyzes the components and changes in the group's cost of revenue. Cost of Revenue Details | | 2

[Company Information](index=2&type=section&id=Company%20Information) Provides an overview of the company's board of directors, committees, and essential corporate details [Board of Directors and Committees](index=3&type=section&id=Board%20of%20Directors%20and%20Committees) Details the composition of the Board of Directors, including executive and independent non-executive directors, and the structure and chairpersons of the Audit, Remuneration, and Nomination Committees - The Board of Directors comprises three executive directors (Mr. Liu Jun as Chairman, Mr. Jiang Shisheng, Mr. Gao Juwen) and three independent non-executive directors (Mr. Liu Zhenbang, Mr. Lu Jiayu, Ms. Jiang Ping)[3](index=3&type=chunk) - Mr. Liu Zhenbang chairs the Audit Committee, Mr. Lu Jiayu chairs the Remuneration Committee, and Ms. Jiang Ping chairs the Nomination Committee[3](index=3&type=chunk) [Company Basic Information](index=3&type=section&id=Company%20Basic%20Information) Presents key corporate details such as legal representatives, independent auditor, principal bankers, registered office, stock code, website, and investor contact - Mr. Zhou Yaohua is the Company Secretary, and Mr. Liu Jun and Mr. Zhou Yaohua are the legal representatives[3](index=3&type=chunk) - The independent auditor is Zhonghui Anda Certified Public Accountants Limited, and the principal banker is Bank of China (Hong Kong) Limited[3](index=3&type=chunk) - The company's stock code is **1863**, and its website is http://www.chinalongevity.hk[4](index=4&type=chunk) [Management Discussion and Analysis](index=3&type=section&id=Management%20Discussion%20and%20Analysis) Reviews the group's business performance, financial results, liquidity, human resources, and future outlook, highlighting key operational and financial trends [Business Review](index=4&type=section&id=Business%20Review) Reviews the group's position as a leader in eco-friendly special functional new materials, detailing revenue by product and region, and highlighting patent achievements - The group is one of the world's leading manufacturers of eco-friendly special functional new materials, with operations in over **100 countries and regions**, focusing on low-carbon, emission reduction, and technological innovation[5](index=5&type=chunk) - As of June 30, 2025, the group held **150 patents** for material products, including **67 invention patents**, **78 utility model patents**, and **5 software copyright patents**[10](index=10&type=chunk) [Revenue by Product](index=5&type=section&id=Revenue%20by%20Product) Group revenue is primarily derived from material products, accounting for 93.34% of total revenue, with building materials products contributing 6.66% | Product Category | 2025 Revenue (RMB million) | 2025 % of Total Revenue | 2024 Revenue (RMB million) | 2024 % of Total Revenue | | :--- | :--- | :--- | :--- | :--- | | Material Products | 552.20 | 93.34 | 482.02 | 90.58 | | Building Materials Products | 39.37 | 6.66 | 50.13 | 9.42 | | **Total** | **591.57** | **100.00** | **532.15** | **100.00** | [Revenue by Geographical Region](index=6&type=section&id=Revenue%20by%20Geographical%20Region) Domestic sales remain the group's primary revenue source, contributing approximately 65.4% of total revenue, while export sales account for about 34.6% | Region | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | China | 387.13 | 357.90 | | Other | 204.44 | 174.25 | | **Total** | **591.57** | **532.15** | - Domestic sales accounted for approximately **65.4%** of total revenue (June 30, 2024: 67.3%), while export sales accounted for approximately **34.6%** (June 30, 2024: 32.7%)[6](index=6&type=chunk) [Material Products](index=7&type=section&id=Material%20Products) Material products revenue reached approximately RMB 552.2 million, representing about 93.3% of total group revenue, with sales increasing by approximately 14.6% due to higher demand - Material products revenue was approximately **RMB 552.2 million** (June 30, 2024: RMB 482.0 million), accounting for approximately **93.3%** of total revenue (June 30, 2024: 90.6%)[11](index=11&type=chunk) - Sales of material products increased by approximately **14.6%**, primarily due to increased demand[11](index=11&type=chunk) [Building Materials Products](index=7&type=section&id=Building%20Materials%20Products) Building materials products revenue was approximately RMB 39.4 million, accounting for about 6.7% of total revenue, with sales decreasing by approximately 21.5% - Building materials products revenue was approximately **RMB 39.4 million** (June 30, 2024: RMB 50.1 million), accounting for approximately **6.7%** of total revenue (June 30, 2024: 9.4%)[12](index=12&type=chunk) - Sales of building materials products decreased by approximately **21.5%**[12](index=12&type=chunk) [Financial Review](index=7&type=section&id=Financial%20Review) The group's revenue increased by 11.2% year-on-year, but profit for the period decreased by 14.6% due to increased administrative and finance costs, with no interim dividend proposed - Revenue was approximately **RMB 591.6 million**, an increase of **11.2%** compared to the same period last year[13](index=13&type=chunk) - Gross margin was approximately **17.0%** (June 30, 2024: 17.4%), with the decrease primarily attributed to the economic downturn in European and American countries and political instability in Sino-US trade relations leading to lower selling prices[14](index=14&type=chunk) - Profit attributable to owners of the company was approximately **RMB 17.2 million**, or basic earnings per share of **RMB 2.02 cents**, a decrease from RMB 20.2 million in the prior year, partly due to increased finance costs[22](index=22&type=chunk) - The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025[23](index=23&type=chunk) [Revenue](index=7&type=section&id=Revenue) The group's revenue for the six months ended June 30, 2025, was approximately RMB 591.6 million, an increase of 11.2% compared to the same period last year | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 591,574 | 532,153 | - Revenue increased by approximately **RMB 59.4 million**, or **11.2%**[13](index=13&type=chunk) [Gross Profit and Gross Margin](index=7&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross profit was approximately RMB 100.9 million, with a gross margin of about 17.0%, a slight decrease from 17.4% in the prior year, influenced by market downturns and trade relations | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Gross Profit | 100,853 | 92,735 | | Gross Margin | 17.0% | 17.4% | - The decrease in gross margin was mainly due to the economic downturn in European and American countries and political instability in Sino-US trade relations, leading to lower selling prices[14](index=14&type=chunk) | Product Category | 2025 (%) | 2024 (%) | | :--- | :--- | :--- | | Material Products | 17.6 | 17.4 | | Building Materials Products | 9.8 | 17.8 | | **Total** | **17.0** | **17.4** | [Selling and Distribution Costs](index=8&type=section&id=Selling%20and%20Distribution%20Costs) Selling and distribution costs increased by approximately RMB 0.3 million to RMB 23.4 million, while its proportion to revenue decreased from 4.4% to 4.0% - Selling and distribution costs increased by approximately **RMB 0.3 million** to approximately **RMB 23.4 million**[16](index=16&type=chunk) - The proportion to revenue decreased from **4.4% to 4.0%**[16](index=16&type=chunk) [Administrative Expenses](index=8&type=section&id=Administrative%20Expenses) Administrative expenses increased by approximately RMB 1.5 million or 2.6% to RMB 59.8 million, primarily due to higher staff costs - Administrative expenses increased by approximately **RMB 1.5 million** or **2.6%** to approximately **RMB 59.8 million**[17](index=17&type=chunk) - The increase in administrative expenses was mainly due to increased staff costs[17](index=17&type=chunk) [Research and Development](index=8&type=section&id=Research%20and%20Development) Research and development costs were approximately RMB 26.5 million, representing 4.5% of revenue, with continued investment planned for long-term competitiveness and new material development - Research and development costs were approximately **RMB 26.5 million** (June 30, 2024: RMB 24.9 million), accounting for **4.5%** of revenue (June 30, 2024: 4.7%)[18](index=18&type=chunk) - The group will continue to allocate resources to reduce raw material costs, optimize production processes, increase production capacity, and develop high-value-added new materials, expanding new application areas and customer markets for its products[18](index=18&type=chunk) [Finance Costs](index=8&type=section&id=Finance%20Costs) Finance costs significantly increased to approximately RMB 9.2 million from RMB 4.4 million in the prior year, mainly due to new bank borrowings for operations - Finance costs were approximately **RMB 9.2 million** (June 30, 2024: RMB 4.4 million)[19](index=19&type=chunk) - The increase in finance costs was mainly due to the group obtaining new bank borrowings to facilitate operations[19](index=19&type=chunk) [Other Income and Gains](index=9&type=section&id=Other%20Income%20and%20Gains) Other income and gains decreased to approximately RMB 11.1 million from RMB 17.6 million in the prior year, primarily due to a reduction in government subsidies - Other income and gains were approximately **RMB 11.1 million** (June 30, 2024: approximately RMB 17.6 million)[20](index=20&type=chunk) - The decrease during the period was mainly due to a reduction in government subsidies[20](index=20&type=chunk) [Income Tax](index=9&type=section&id=Income%20Tax) Income tax expense slightly increased to approximately RMB 5.3 million, mainly due to an increase in deferred income tax recognized in profit or loss for the current period - Income tax expense was approximately **RMB 5.3 million** (June 30, 2024: RMB 5.1 million)[21](index=21&type=chunk) - The slight increase in this expense was mainly due to an increase in deferred income tax recognized in profit or loss for the current period[21](index=21&type=chunk) [Profit for the Period](index=9&type=section&id=Profit%20for%20the%20Period) Profit attributable to owners of the company for the period was approximately RMB 17.2 million, with basic earnings per share of RMB 2.02 cents, a decrease from the prior year, partly due to higher finance costs | Metric | 2025 (RMB) | 2024 (RMB) | | :--- | :--- | :--- | | Profit attributable to owners of the company | 17,200,000 | 20,200,000 | | Basic Earnings Per Share | 2.02 cents | 2.36 cents | - The decrease in profit for the year was partly due to increased finance costs[22](index=22&type=chunk) [Dividends](index=9&type=section&id=Dividends) The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025 - The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025 (June 30, 2024: nil)[23](index=23&type=chunk) [Liquidity and Financial Resources](index=9&type=section&id=Liquidity%20and%20Financial%20Resources) Total equity increased by 2.0% year-on-year, with an increase in net current assets and cash and cash equivalents, alongside new bank borrowings and pledged assets for financing - As of June 30, 2025, total equity was approximately **RMB 844.1 million**, an increase of **2.0%** compared to approximately RMB 827.4 million as of December 31, 2024[24](index=24&type=chunk) - Net current assets were approximately **RMB 267.0 million** (December 31, 2024: net current assets of RMB 222.0 million)[25](index=25&type=chunk) - The net debt-to-equity ratio (calculated as total interest-bearing liabilities as a percentage of total assets) was **36.4%**, compared to 35.1% as of December 31, 2024[25](index=25&type=chunk) - As of June 30, 2025, the group held cash and cash equivalents of approximately **RMB 110.7 million** (December 31, 2024: RMB 83.4 million)[26](index=26&type=chunk) [Total Equity](index=9&type=section&id=Total%20Equity) As of June 30, 2025, the group's total equity was approximately RMB 844.1 million, representing a 2.0% increase from December 31, 2024 - Total equity was approximately **RMB 844.1 million**, an increase of **2.0%** compared to approximately RMB 827.4 million as of December 31, 2024[24](index=24&type=chunk) [Financial Position](index=9&type=section&id=Financial%20Position) The group reported total current assets of approximately RMB 767.3 million, total current liabilities of RMB 500.3 million, net current assets of RMB 267.0 million, and a net debt-to-equity ratio of 36.4% | Metric | 2025 (RMB thousand) | 2024 December 31 (RMB thousand) | | :--- | :--- | :--- | | Total Current Assets | 767,300 | 780,900 | | Total Current Liabilities | 500,300 | 559,000 | | Net Current Assets | 267,000 | 222,000 | | Net Debt-to-Equity Ratio | 36.4% | 35.1% | [Cash and Cash Equivalents](index=10&type=section&id=Cash%20and%20Cash%20Equivalents) As of June 30, 2025, the group held cash and cash equivalents of approximately RMB 110.7 million, an increase from RMB 83.4 million as of December 31, 2024 - Cash and cash equivalents were approximately **RMB 110.7 million** (December 31, 2024: RMB 83.4 million)[26](index=26&type=chunk) [Bank Borrowings](index=10&type=section&id=Bank%20Borrowings) As of June 30, 2024, the group's interest-bearing bank borrowings were approximately RMB 704.8 million, with new bank loans of approximately RMB 111.5 million obtained during the year - Interest-bearing bank borrowings were approximately **RMB 704.8 million** (December 31, 2024: RMB 677.3 million)[27](index=27&type=chunk) - New bank loans of approximately **RMB 111.5 million** were obtained during the year[27](index=27&type=chunk) [Contingent Liabilities](index=10&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)[28](index=28&type=chunk) [Capital Commitments](index=10&type=section&id=Capital%20Commitments) As of June 30, 2025, the group's capital commitments were approximately RMB 121.7 million, funded partly by internal resources and partly by bank borrowings - Capital commitments were approximately **RMB 121.7 million** (December 31, 2024: RMB 111.2 million)[29](index=29&type=chunk) - Capital commitments are partly funded by internal resources and partly by bank borrowings[29](index=29&type=chunk) [Pledge of Assets](index=10&type=section&id=Pledge%20of%20Assets) Certain buildings, plant and machinery, construction in progress, leasehold land, investment properties, and bank deposits were pledged to banks as collateral for bank loans and general banking facilities - Buildings, plant and machinery, and construction in progress of approximately **RMB 516.8 million**, leasehold land of approximately **RMB 77.1 million**, investment properties of approximately **RMB 20.3 million**, and bank deposits of approximately **RMB 44.3 million** were pledged to banks[30](index=30&type=chunk) [Events After Reporting Period](index=10&type=section&id=Events%20After%20Reporting%20Period) No significant events occurred after the reporting period - No significant events occurred after the reporting period[31](index=31&type=chunk) [Human Resources](index=11&type=section&id=Human%20Resources) The group's total number of employees increased to 730, with a focus on enhancing employee quality, capabilities, and skills through training and competitive compensation - As of June 30, 2025, the group employed a total of **730 employees** (December 31, 2024: 718 employees)[32](index=32&type=chunk) - The group provides on-the-job training for employees at all levels and continuously offers competitive compensation packages and bonuses to qualified employees based on their performance[32](index=32&type=chunk) [Exchange Rate Fluctuation Risk and Related Hedging](index=11&type=section&id=Exchange%20Rate%20Fluctuation%20Risk%20and%20Related%20Hedging) The group experienced exchange losses on some foreign trade orders due to RMB/USD exchange rate fluctuations but has no hedging agreements as most business transactions are settled in RMB - Due to factors such as RMB exchange rate reform and USD appreciation, the group incurred certain exchange losses on some foreign trade orders due to RMB/USD exchange rate fluctuations[33](index=33&type=chunk) - As the group primarily operates in mainland China, with most business transactions settled in RMB, the group has not entered into any agreements to hedge against foreign exchange risks[33](index=33&type=chunk) [Significant Acquisitions or Disposals of Subsidiaries, Associates and Joint Ventures](index=11&type=section&id=Significant%20Acquisitions%20or%20Disposals%20of%20Subsidiaries,%20Associates%20and%20Joint%20Ventures) For the six months ended June 30, 2025, the group had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, there were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures[34](index=34&type=chunk) [Future Prospects](index=12&type=section&id=Future%20Prospects) The group plans to achieve sustainable development by focusing on technological innovation, market expansion, digital transformation, talent strategy, and intellectual property protection amidst global challenges - The group actively responds to national policies, establishing and adhering to the development strategy of "stable operation, green development, continuous innovation, and pursuit of excellence"[35](index=35&type=chunk) - The group will vigorously develop ecological building materials products, further expand its overseas markets, and accelerate its presence in the Chinese building materials market, promoting the "Sijia Super Core" brand[36](index=36&type=chunk) - The group aims to achieve phased goals of business operation digitalization, efficient horizontal/vertical business synergy, integrated business and finance, and "refined, profitable, and standardized" management[36](index=36&type=chunk) - The group will comprehensively implement seven major development strategies: talent, safety, green, R&D, digitalization, supply chain management, and corporate culture[36](index=36&type=chunk) - The group will establish an intelligent manufacturing technology research institute to promote the intelligent and automated transformation of production equipment across its subsidiaries and strengthen intellectual property protection for new technologies and processes[37](index=37&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=13&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) During the reporting period, group revenue increased by 11.2% to RMB 591.6 million, but profit attributable to owners of the company decreased by 14.6% to RMB 17.2 million, with basic earnings per share of RMB 2.02 cents, due to increased costs | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 591,574 | 532,153 | | Cost of sales | (490,721) | (439,418) | | Gross profit | 100,853 | 92,735 | | Other income and gains | 11,128 | 17,649 | | Selling and distribution costs | (23,437) | (23,160) | | Administrative expenses | (59,810) | (58,300) | | Profit from operations | 29,115 | 27,217 | | Finance costs | (9,228) | (4,367) | | Profit before tax | 19,415 | 22,850 | | Income tax expense | (5,264) | (5,059) | | Profit for the period | 14,151 | 17,791 | | Profit attributable to owners of the company | 17,211 | 20,153 | | Basic Earnings Per Share (RMB cents) | 2.02 | 2.36 | [Condensed Consolidated Statement of Financial Position](index=14&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the group's total assets less current liabilities increased to RMB 1,445.3 million, with net current assets rising to RMB 267.0 million and total equity growing by 2.0% to RMB 844.1 million | Metric | 2025 (RMB thousand) | 2024 December 31 (RMB thousand) | | :--- | :--- | :--- | | Total Non-current Assets | 1,178,335 | 1,159,555 | | Total Current Assets | 767,253 | 780,919 | | Total Current Liabilities | 500,260 | 559,016 | | Net Current Assets | 266,993 | 221,903 | | Total Assets Less Current Liabilities | 1,445,328 | 1,381,458 | | Total Non-current Liabilities | 601,190 | 554,025 | | Total Equity | 844,138 | 827,433 | [Condensed Consolidated Statement of Changes in Equity](index=16&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, the group's total equity increased from RMB 827.4 million at the beginning of the period to RMB 844.1 million, primarily driven by total comprehensive income and capital injection from a non-controlling shareholder | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Equity at Beginning of Period | 827,433 | 758,156 | | Total Comprehensive Income for the Period | 14,205 | 17,798 | | Capital Contribution from a Non-controlling Shareholder | 2,500 | – | | Total Equity at End of Period | 844,138 | 775,954 | [Condensed Consolidated Statement of Cash Flows](index=17&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) During the reporting period, net cash from operating activities significantly increased, net cash used in investing activities decreased, and net cash from financing activities declined, with cash and cash equivalents rising to RMB 110.7 million at period-end | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 59,110 | 40,953 | | Net Cash Used in Investing Activities | (52,254) | (89,977) | | Net Cash from Financing Activities | 20,439 | 38,758 | | Net Increase/(Decrease) in Cash and Cash Equivalents | 27,295 | (10,266) | | Cash and Cash Equivalents at End of Period | 110,730 | 54,110 | [Notes to the Condensed Consolidated Financial Statements](index=18&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanations and disclosures for the condensed consolidated financial statements, covering general information, accounting policies, revenue, expenses, and financial position items [1. General Information](index=18&type=section&id=1.%20General%20Information) China Longevity Group Limited was incorporated in the Cayman Islands, with its shares suspended from trading since February 14, 2013, primarily engaged in designing, developing, producing, and selling material and building materials products, ultimately controlled by Mr. Lin Shenxiong - The company was incorporated as a limited company in the Cayman Islands on October 7, 2009[44](index=44&type=chunk) - The company's shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited and have been suspended from trading since February 14, 2013[44](index=44&type=chunk) - The company is principally engaged in the design, development, production, and sale of material products and building materials products[44](index=44&type=chunk) - Mr. Lin Shenxiong is the ultimate controlling party of the company[44](index=44&type=chunk) [2. Basis of Preparation](index=19&type=section&id=2.%20Basis%20of%20Preparation) The interim financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, generally accepted accounting principles, and disclosure requirements, and should be read in conjunction with the 2024 annual consolidated financial statements - The interim financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants, Hong Kong Generally Accepted Accounting Principles, and the disclosure requirements of the Hong Kong Companies Ordinance and the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[45](index=45&type=chunk) - The accounting policies and methods of computation adopted in the preparation of the interim financial statements are consistent with those adopted in the 2024 annual report[45](index=45&type=chunk) [3. Adoption of New and Revised Hong Kong Financial Reporting Standards](index=20&type=section&id=3.%20Adoption%20of%20New%20and%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards) The group adopted all new and revised Hong Kong Financial Reporting Standards effective for the current period, with no significant changes to accounting policies, financial statement presentation, or reported amounts - During the current period, the group adopted all new and revised Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants that are relevant to its operations and effective for accounting periods beginning on January 1, 2025[46](index=46&type=chunk) - Except as described below, the adoption of these new and revised Hong Kong Financial Reporting Standards has not resulted in significant changes to the group's accounting policies, the presentation of the group's financial statements, or the amounts reported for the current and prior years[46](index=46&type=chunk) [4. Revenue](index=20&type=section&id=4.%20Revenue) Group revenue, primarily from goods sales, is recognized when control of products transfers, with credit terms typically ranging from 30 to 90 days, and is segmented by geographical market and major product categories - The group had only one operating segment during the year, primarily engaged in the design, development, production, and sale of material products and building materials products[47](index=47&type=chunk) - Sales are recognized when control of the products is transferred, and credit terms generally range from **30 to 90 days**[47](index=47&type=chunk)[48](index=48&type=chunk) Customer Contract Revenue Disaggregation (For the six months ended June 30) | Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | **Geographical Market** | | | | China | 387,135 | 357,906 | | Other | 204,439 | 174,247 | | **Total** | **591,574** | **532,153** | | **Major Products** | | | | Material Products | 552,199 | 482,025 | | Building Materials Products | 39,375 | 50,128 | | **Total** | **591,574** | **532,153** | [5. Other Income and Gains](index=22&type=section&id=5.%20Other%20Income%20and%20Gains) Total other income and gains amounted to RMB 11.1 million, a decrease from the prior year, mainly attributed to reduced government grants Composition of Other Income and Gains (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest income | 379 | 384 | | Government grants | 2,419 | 9,962 | | Gain on lease termination | 16 | 55 | | Gross rental income | 2,150 | 2,173 | | Exchange gain, net | 897 | 2,317 | | Miscellaneous income | 5,267 | 2,758 | | **Total** | **11,128** | **17,649** | - The decrease during the period was mainly due to a reduction in government subsidies[51](index=51&type=chunk) [6. Finance Costs](index=22&type=section&id=6.%20Finance%20Costs) Total finance costs significantly increased to RMB 9.2 million from the prior year, primarily consisting of interest on bank borrowings Composition of Finance Costs (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest on leases | 62 | 95 | | Interest on bank borrowings | 9,157 | 10,131 | | Interest on other borrowings | 9 | 429 | | **Total Borrowing Costs** | **9,228** | **10,655** | | Less: Interest capitalized | – | (6,288) | | **Total** | **9,228** | **4,367** | [7. Profit Before Tax](index=23&type=section&id=7.%20Profit%20Before%20Tax) Profit before tax decreased to RMB 19.4 million from the prior year, primarily impacted by increased depreciation, amortization, and finance costs Items Affecting Profit Before Tax (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Directors' emoluments | 839 | 928 | | Depreciation of property, plant and equipment | 35,266 | 25,231 | | Depreciation of right-of-use assets | 3,579 | 1,804 | | Amortization of intangible assets | 2,193 | 64 | | Net loss on disposal of property, plant and equipment | 3 | 14 | [8. Income Tax Expense](index=23&type=section&id=8.%20Income%20Tax%20Expense) Income tax expense slightly increased to RMB 5.3 million, mainly due to higher current and deferred tax in China, with high-tech enterprises taxed at 15% Composition of Income Tax Expense (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current tax – China | 4,136 | 2,265 | | Under-provision in prior years | 952 | 2,715 | | Deferred tax | 176 | 79 | | **Total** | **5,264** | **5,059** | - No provision for Hong Kong profits tax has been made as there was no assessable profit in Hong Kong[55](index=55&type=chunk) - Fujian Sijia, Sijia Environmental Material Technology (Shanghai) Co., Ltd., and Fujian Sijia New Material Technology Co., Ltd. are high-tech enterprises subject to a tax rate of **15%**; other subsidiaries are subject to a corporate income tax rate of **25%**[56](index=56&type=chunk) [9. Dividends](index=24&type=section&id=9.%20Dividends) The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The directors do not recommend the payment of any interim dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: nil)[57](index=57&type=chunk) [10. Earnings Per Share Attributable to Owners of the Company](index=24&type=section&id=10.%20Earnings%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Company) Basic earnings per share were RMB 2.02 cents, consistent with diluted earnings per share, as there were no potential dilutive ordinary shares during the period - Basic earnings per share attributable to owners of the company for the six months ended June 30, 2025, were **RMB 2.02 cents**, calculated based on the profit attributable to owners of the company of approximately **RMB 17.211 million** and the weighted average number of ordinary shares in issue during the year of approximately **852,612,470 shares**[58](index=58&type=chunk) - As the company had no potential dilutive ordinary shares for the six months ended June 30, 2025, and 2024, the diluted earnings per share for these periods were consistent with the basic earnings per share[59](index=59&type=chunk) [11. Property, Plant and Equipment](index=25&type=section&id=11.%20Property,%20Plant%20and%20Equipment) During the reporting period, the group acquired property, plant and equipment at a total cost of RMB 19.983 million and disposed of assets with a carrying amount of RMB 15 thousand, resulting in a loss on disposal of RMB 3 thousand - For the six months ended June 30, 2025, the total cost of property, plant and equipment acquired by the group was approximately **RMB 19.983 million** (for the six months ended June 30, 2024: RMB 87.416 million)[60](index=60&type=chunk) - The disposal of property, plant and equipment with a carrying amount of approximately **RMB 15 thousand** (for the six months ended June 30, 2024: RMB 14 thousand) resulted in a loss on disposal of approximately **RMB 3 thousand** (for the six months ended June 30, 2024: RMB 14 thousand)[60](index=60&type=chunk) [12. Trade and Bills Receivables](index=25&type=section&id=12.%20Trade%20and%20Bills%20Receivables) Total trade and bills receivables amounted to RMB 359.9 million, with credit terms generally ranging from 30 to 90 days, and overdue balances are regularly reviewed by management - The group's transaction terms with customers are primarily based on credit and cash on delivery, with credit terms generally ranging from **30 to 90 days**[61](index=61&type=chunk) Ageing Analysis of Trade Receivables (Net of Provision) (As of June 30) | Ageing | 2025 (RMB thousand) | 2024 December 31 (RMB thousand) | | :--- | :--- | :--- | | Within 3 months | 214,668 | 270,797 | | More than 3 months but within 6 months | 76,944 | 54,281 | | More than 6 months but within 1 year | 65,504 | 27,179 | | More than 1 year | 2,857 | 2,344 | | **Total** | **359,973** | **354,601** | [13. Prepayments, Deposits and Other Receivables](index=26&type=section&id=13.%20Prepayments,%20Deposits%20and%20Other%20Receivables) Total prepayments, deposits, and other receivables decreased to RMB 38.8 million from the prior year-end, primarily comprising prepaid sales tax and government surcharges, advances to suppliers, and other receivables Prepayments, Deposits and Other Receivables (As of June 30) | Item | 2025 (RMB thousand) | 2024 December 31 (RMB thousand) | | :--- | :--- | :--- | | Advances to suppliers | 7,508 | 9,742 | | Prepaid sales tax and government surcharges | 23,142 | 24,488 | | Prepaid expenses | 940 | 614 | | Other receivables | 7,259 | 18,578 | | **Total** | **38,849** | **53,422** | [14. Trade and Bills Payables](index=27&type=section&id=14.%20Trade%20and%20Bills%20Payables) Total trade and bills payables decreased to RMB 280.2 million from the prior year-end, with the majority of amounts due within three months Trade and Bills Payables (As of June 30) | Item | 2025 (RMB thousand) | 2024 December 31 (RMB thousand) | | :--- | :--- | :--- | | Trade payables | 138,314 | 147,735 | | Bills payables | 141,852 | 155,878 | | **Total** | **280,166** | **303,613** | Ageing Analysis of Trade and Bills Payables (As of June 30) | Ageing | 2025 (RMB thousand) | 2024 December 31 (RMB thousand) | | :--- | :--- | :--- | | Within 3 months | 181,142 | 211,095 | | More than 3 months but within 6 months | 85,979 | 81,308 | | More than 6 months but within 1 year | 10,460 | 6,271 | | More than 1 year | 2,585 | 4,939 | | **Total** | **280,166** | **303,613** | [15. Other Payables and Accruals](index=28&type=section&id=15.%20Other%20Payables%20and%20Accruals) Total other payables and accruals decreased to RMB 33.1 million from the prior year-end, mainly including accrued liabilities, wages payable, and payables for property, plant, and equipment acquisitions Other Payables and Accruals (As of June 30) | Item | 2025 (RMB thousand) | 2024 December 31 (RMB thousand) | | :--- | :--- | :--- | | Accrued liabilities | 13,653 | 16,447 | | Wages payable | 3,510 | 3,576 | | Payables for acquisition of property, plant and equipment | 9,422 | 20,175 | | Other | 6,483 | 7,768 | | **Total** | **33,068** | **47,966** | [16. Interest-Bearing Borrowings](index=28&type=section&id=16.%20Interest-Bearing%20Borrowings) During the reporting period, the group obtained new interest-bearing borrowings of RMB 111.5 million for additional working capital and repaid RMB 83.925 million of interest-bearing borrowings - The group obtained new interest-bearing borrowings of approximately **RMB 111.5 million** for additional working capital (for the six months ended June 30, 2024: RMB 124.2 million)[68](index=68&type=chunk) - Interest-bearing borrowings of approximately **RMB 83.925 million** were repaid (for the six months ended June 30, 2024: RMB 80.626 million)[68](index=68&type=chunk) [17. Capital Commitments](index=29&type=section&id=17.%20Capital%20Commitments) As of June 30, 2025, the group's capital commitments were approximately RMB 121.7 million, primarily for property, plant and equipment, and capital injection into an associate Capital Commitments (As of June 30) | Item | 2025 (RMB thousand) | 2024 December 31 (RMB thousand) | | :--- | :--- | :--- | | Property, plant and equipment (contracted but not provided for) | 112,176 | 100,725 | | Capital injection into an associate | 9,526 | 10,507 | | **Total** | **121,702** | **111,232** | [18. Contingent Liabilities](index=29&type=section&id=18.%20Contingent%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)[70](index=70&type=chunk) [19. Related Party Transactions](index=29&type=section&id=19.%20Related%20Party%20Transactions) The group engages in transactions with related parties, including receiving income from an associate, purchasing raw materials, and paying utility expenses, with the ultimate shareholder and family members guaranteeing approximately RMB 649.2 million in bank loans Related Party Transactions (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Income received from an associate | 13 | 8 | | Raw materials purchased from an associate | 19,533 | 11,894 | | Utility expenses paid to an associate | 1,555 | 427 | - The ultimate shareholder and a family member of the ultimate shareholder have guaranteed bank loans of approximately **RMB 649.2 million** (December 31, 2024: RMB 632.8 million) for the group[73](index=73&type=chunk) [20. Events After Reporting Period](index=30&type=section&id=20.%20Events%20After%20Reporting%20Period) No significant events occurred after the reporting period - No significant events occurred after the reporting period[74](index=74&type=chunk) [21. Approval of Financial Statements](index=30&type=section&id=21.%20Approval%20of%20Financial%20Statements) The consolidated financial statements were approved and authorized for issue by the Board of Directors on August 28, 2025 - The consolidated financial statements were approved and authorized for issue by the Board of Directors on August 28, 2025[75](index=75&type=chunk) [Other Information](index=30&type=section&id=Other%20Information) Presents additional disclosures including results and appropriations, compliance with regulations, directors' securities transactions, share dealings, contractual interests, and major shareholder information [Results and Appropriations](index=30&type=section&id=Results%20and%20Appropriations) The group's results for the six months ended June 30, 2025, are presented in the condensed consolidated statement of profit or loss and other comprehensive income, with no interim dividend recommended by the Board - The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2025 (2024: nil)[76](index=76&type=chunk) [Compliance with Laws and Regulations](index=31&type=section&id=Compliance%20with%20Laws%20and%20Regulations) The group is committed to complying with relevant laws and regulations, allocating resources to ensure continuous adherence to applicable rules, and maintaining good working relationships with regulatory bodies - The group has allocated financial and human resources to ensure continuous compliance with applicable rules and regulations and maintains good working relationships with regulatory authorities through effective communication[77](index=77&type=chunk) - During the review period, the group complied with the Listing Rules, the Securities and Futures Ordinance, the Companies Ordinance, the Patent Law of the People's Republic of China, the Contract Law of the People's Republic of China, the Labor Law, and other relevant rules and regulations[77](index=77&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors](index=31&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The company adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all directors confirmed compliance with its required standards for the six months ended June 30, 2025 - The company adopted the Model Code for Securities Transactions by Directors of Listed Issuers as the standard for directors' securities transactions[78](index=78&type=chunk) - All directors confirmed that they have complied with the required standards set out in the Model Code for the six months ended June 30, 2025[78](index=78&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=31&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the six months ended June 30, 2025 - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the six months ended June 30, 2025[79](index=79&type=chunk) [Directors' Contractual Interests](index=31&type=section&id=Directors'%20Contractual%20Interests) As of June 30, 2025, or at any time during the six months ended June 30, 2025, no significant contracts materially related to the company's business, in which a director had a material interest, were entered into by the company or its affiliates - No significant contracts materially related to the company's business, in which a director (whether directly or indirectly) had a material interest, were entered into by the company, its holding company, or any of its subsidiaries or fellow subsidiaries[80](index=80&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company or any Associated Corporation](index=32&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20or%20any%20Associated%20Corporation) Discloses the long positions held by directors and chief executives in the shares of the company and its associated corporations [Long Positions in Shares of the Company](index=32&type=section&id=Long%20Positions%20in%20Shares%20of%20the%20Company) Mr. Lin Shenxiong holds 48.19% of the company's issued share capital through a controlled corporation, while Mr. Huang Wanneng beneficially owns 0.59% | Name of Director | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage of Shareholding in the Company | | :--- | :--- | :--- | :--- | | Mr. Lin Shenxiong | Interest in controlled corporation | 410,886,000 | 48.19% | | Mr. Huang Wanneng | Beneficial owner | 5,060,000 | 0.59% | [Long Positions in Shares of Associated Corporations](index=32&type=section&id=Long%20Positions%20in%20Shares%20of%20Associated%20Corporations) Mr. Lin Shenxiong beneficially owns 100% equity interest in Haolin International Holdings Limited | Name of Director | Name of Associated Corporation | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage of Shareholding in Associated Corporation | | :--- | :--- | :--- | :--- | | Mr. Lin Shenxiong | Haolin International Holdings Limited | Beneficial owner | 1 | 100.00% | [Share Option Scheme](index=33&type=section&id=Share%20Option%20Scheme) The company's share option scheme adopted on April 8, 2010, expired on April 7, 2020, with no new scheme launched and no outstanding share options as of June 30, 2025 - The company adopted a share option scheme on April 8, 2010, which expired on April 7, 2020, and no new scheme has been launched as of the date of this report[83](index=83&type=chunk) - As of June 30, 2025, no outstanding share options had been granted[83](index=83&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares of the Company](index=34&type=section&id=Substantial%20Shareholders'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) Discloses the long positions in the company's shares held by substantial shareholders, including Haolin International Holdings Limited, Mr. Lin Shenxiong, Ms. Lin Hongting, Rongliang Investment Enterprise Limited, Mr. Lin Wanpeng, and Ms. Wang Huiqing Substantial Shareholders' Long Positions in Shares of the Company (As of June 30) | Name of Shareholder | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage of Shareholding in the Company | | :--- | :--- | :--- | :--- | | Haolin International Holdings Limited | Beneficial owner | 410,886,000 | 48.19% | | Mr. Lin Shenxiong | Interest in controlled corporation | 410,886,000 | 48.19% | | Ms. Lin Hongting | Spouse's interest | 410,886,000 | 48.19% | | Rongliang Investment Enterprise Limited | Beneficial owner | 59,011,000 | 6.92% | | Mr. Lin Wanpeng | Interest in controlled corporation | 59,011,000 | 6.92% | | Ms. Wang Huiqing | Spouse's interest | 59,011,000 | 6.92% | [Significant Acquisitions or Disposals](index=35&type=section&id=Significant%20Acquisitions%20or%20Disposals) For the six months ended June 30, 2025, there were no significant acquisitions or disposals of subsidiaries by the group - For the six months ended June 30, 2025, there were no significant acquisitions or disposals of subsidiaries by the group[88](index=88&type=chunk) [Audit Committee](index=35&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, reviewed the group's accounting principles, internal controls, and financial reporting, and approved the unaudited condensed consolidated financial statements for the period - The Audit Committee, composed of three independent non-executive directors, has reviewed the accounting principles and practices adopted by the group with management and discussed matters related to audit, internal control, and financial reporting[89](index=89&type=chunk) - The Audit Committee has reviewed the group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025, and is of the opinion that the accounts comply with applicable accounting standards, the Listing Rules, and all legal requirements, and that adequate disclosures have been made[89](index=89&type=chunk) [Suspension of Trading](index=35&type=section&id=Suspension%20of%20Trading) The company's shares have been suspended from trading on the Stock Exchange since February 14, 2013, and will remain suspended until further notice - The company's shares have been suspended from trading on the Stock Exchange since February 14, 2013, and will continue to be suspended until further notice[90](index=90&type=chunk)

Financial Performance - Total revenue for the six months ended June 30, 2025, was HKD 180.7 million, a decrease from HKD 1,030.1 million in the same period of 2024[8]. - The net loss attributable to shareholders for the period was HKD 1,337.6 million, compared to a loss of HKD 974.8 million in the previous year, representing a year-on-year increase of approximately 37.2%[8]. - Basic loss per share for the six months was HKD 4.72, compared to HKD 3.44 in the same period of 2024[8]. - The company reported a total comprehensive loss of HKD 1,331,336,000, which includes a loss of HKD 1,337,584,000[77]. - The company reported a pre-tax loss of HKD 1,322,996,000 for the six months ended June 30, 2025, compared to a loss of HKD 916,737,000 in the previous year[99]. - The net loss for the six months ended June 30, 2025, was HKD 1,337,584,000, compared to a net loss of HKD 974,549,000 for the same period in 2024, representing a 37.2% increase in losses[67]. Assets and Liabilities - Total assets as of June 30, 2025, were HKD 16,617 million, down from HKD 17,975 million as of December 31, 2024[8]. - The net asset value decreased to HKD 14,345 million from HKD 15,677 million in the previous year[8]. - Total liabilities decreased from HKD 1,669,611,000 to HKD 1,202,564,000, a reduction of 28.0%[74]. - The total liabilities as of June 30, 2025, were HKD 2,271,780,000, compared to HKD 2,298,398,000 as of December 31, 2024[94]. - The company's equity attributable to owners as of June 30, 2025, was HKD 14,345,405,000, down from HKD 15,676,741,000 at the beginning of the year[77]. Revenue Breakdown - Rental income from property leasing was approximately HKD 162.19 million, accounting for about 90% of total revenue[16]. - Property development revenue for the six months ended June 30, 2025, was approximately HKD 6,833,000, accounting for about 4% of total group revenue[20]. - Property management revenue for the six months ended June 30, 2025, was approximately HKD 11,689,000, representing about 6% of total group revenue[23]. - The company reported other income totaling HKD 31,965,000 for the six months ended June 30, 2025, compared to HKD 34,553,000 in the same period of 2024[95]. Market Conditions and Strategy - The group plans to optimize its tenant mix and enhance property management to adapt to changing consumer trends[14]. - The group will adopt a cautious approach towards land reserve replenishment and property acquisitions in response to the current market conditions[14]. - The overall economic outlook for the second half of 2025 remains cautious, with challenges in consumer sentiment and real estate market confidence[29]. - The real estate market in mainland China is showing signs of stabilization, with first-tier cities recovering faster than third and fourth-tier cities[22]. Cash Flow and Financing - The company's net cash inflow from operating activities for the six months ended June 30, 2025, was HKD 81,580,000, a decrease of 76.4% compared to HKD 345,435,000 for the same period in 2024[80]. - The company experienced a net cash outflow from investing activities of HKD 143,473,000 for the six months ended June 30, 2025, compared to a net inflow of HKD 461,432,000 in the previous year[80]. - The total interest expense for the six months ended June 30, 2025, was approximately HKD 24,819,000, down from HKD 38,576,000 for the same period in 2024[32]. - The group’s cash balance in mainland China is approximately HKD 26,414,000 as of June 30, 2025, down from HKD 110,643,000 as of December 31, 2024[116]. Corporate Governance and Compliance - The company has adopted the corporate governance code and confirmed compliance by all directors for the six-month period[60]. - The audit committee reviewed the interim financial statements and found no disagreements with management[62]. - The group has maintained its listing status on the stock exchange despite a proposal for privatization that was not approved by shareholders[36]. Employee Compensation - The total employee compensation for the six months ended June 30, 2025, was approximately HKD 70,285,000, compared to HKD 73,911,000 for the same period in 2024[41]. - The company incurred employee compensation expenses of HKD 70,285,000, slightly lower than HKD 73,911,000 in the previous year[100]. Environmental and Community Engagement - The group actively participates in community service and has received recognition for its environmental protection efforts, including the "Outstanding Environmental Partner" award[29]. - The group is preparing to establish a dedicated team to address climate change, focusing on carbon reduction and energy-saving projects[28].

[Company Overview](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E6%A6%82%E8%A7%88) This section provides an overview of the company's board members and their roles [Board of Directors](index=2&type=section&id=%E5%9F%B7%E8%A1%8C%E8%91%A3%E4%BA%8B) The report lists the executive, non-executive, and independent non-executive directors, CFO, and company secretary of Luen Thai Holdings Limited, noting changes in independent non-executive director appointments - The Board of Directors includes Chairman Wang Weimin, Permanent Honorary Chairman Dr. Henry Tan, CEO Raymond Tan as executive directors, Huo Yushan as a non-executive director, and Chan Ming Yan, Li Cheuk Ran, Shi Min as independent non-executive directors. **Shi Min was appointed on March 29, 2025**, while **Wang Jing retired on the same day**[6](index=6&type=chunk)[7](index=7&type=chunk) [Review Report on Interim Financial Information](index=3&type=section&id=%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E7%9A%84%E5%AF%A9%E9%96%B1%E5%A0%B1%E5%91%8A) This section presents the independent auditor's review report on the interim financial information [Independent Auditor's Review Report](index=3&type=section&id=%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E7%9A%84%E5%AF%A9%E9%96%B1%E5%A0%B1%E5%91%8A) PricewaterhouseCoopers reviewed Luen Thai Holdings Limited's interim financial information for the six months ended June 30, 2025, concluding no material matters indicated non-compliance with HKAS 34 - PricewaterhouseCoopers reviewed the interim financial information, confirming its preparation in all material respects in accordance with **Hong Kong Accounting Standard 34 'Interim Financial Reporting'** issued by the Hong Kong Institute of Certified Public Accountants[8](index=8&type=chunk)[9](index=9&type=chunk)[10](index=10&type=chunk) [Condensed Consolidated Financial Statements](index=4&type=section&id=%E7%AE%80%E6%98%8E%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the condensed consolidated financial statements, including the statement of financial position, income, comprehensive income, changes in equity, and cash flows [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, total assets increased to **USD 480,924 thousand**, driven by higher current assets, particularly inventory and cash balances, with total liabilities also rising due to increased borrowings Condensed Consolidated Statement of Financial Position Key Data (USD thousands) | Indicator | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | Change | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Total non-current assets | 162,498 | 165,811 | -3,313 | | Total current assets | 318,426 | 280,172 | +38,254 | | **Total assets** | **480,924** | **445,983** | **+34,941** | | **Equity** | | | | | Equity attributable to owners of the Company | 156,076 | 155,954 | +122 | | Non-controlling interests | 629 | 748 | -119 | | **Total equity** | **156,705** | **156,702** | **+3** | | **Liabilities** | | | | | Total non-current liabilities | 29,266 | 26,079 | +3,187 | | Total current liabilities | 294,953 | 263,202 | +31,751 | | **Total liabilities** | **324,219** | **289,281** | **+34,938** | [Condensed Consolidated Statement of Profit or Loss](index=6&type=section&id=%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E6%90%8D%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, revenue slightly decreased, but gross profit increased, leading to a **profit attributable to owners of USD 373 thousand**, a turnaround from a **loss of USD 9,728 thousand** in the prior period Condensed Consolidated Statement of Profit or Loss Key Data (USD thousands) | Indicator | June 30, 2025 (Unaudited) | June 30, 2024 (Unaudited) | Change | | :--- | :--- | :--- | :--- | | Revenue | 295,824 | 304,522 | -2.9% | | Cost of sales | (254,645) | (265,901) | -4.2% | | Gross profit | 41,179 | 38,621 | +6.6% | | Operating profit/(loss) | 4,583 | (2,602) | Turned loss into profit | | Finance costs — net | (4,795) | (6,412) | -25.2% | | Profit/(loss) for the period | 254 | (9,808) | Turned loss into profit | | Profit/(loss) attributable to owners of the Company | 373 | (9,728) | Turned loss into profit | | Basic earnings/(loss) per share (US cents) | 0.04 | (0.94) | Turned loss into profit | [Condensed Consolidated Statement of Comprehensive Income](index=7&type=section&id=%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E7%B6%9C%E5%90%88%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, profit for the period was **USD 254 thousand**, resulting in a total comprehensive income of **USD 3 thousand** after other comprehensive losses, a significant improvement from a **USD 9,343 thousand** loss in the prior period Condensed Consolidated Statement of Comprehensive Income Key Data (USD thousands) | Indicator | June 30, 2025 (Unaudited) | June 30, 2024 (Unaudited) | Change | | :--- | :--- | :--- | :--- | | Profit/(loss) for the period | 254 | (9,808) | Turned loss into profit | | Currency translation differences | (251) | 465 | Switched to loss | | **Total comprehensive income/(loss) for the period** | **3** | **(9,343)** | **Significant improvement** | | Total comprehensive income/(loss) attributable to owners of the Company | 122 | (8,946) | Significant improvement | [Condensed Consolidated Statement of Changes in Equity](index=8&type=section&id=%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) As of June 30, 2025, equity attributable to owners of the Company slightly increased from **USD 155,954 thousand** to **USD 156,076 thousand**, primarily due to profit for the period offsetting some currency translation differences Condensed Consolidated Statement of Changes in Equity Key Data (USD thousands) | Indicator | January 1, 2025 | June 30, 2025 | January 1, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total equity attributable to owners of the Company | 155,954 | 156,076 | 190,668 | 181,722 | | Non-controlling interests | 748 | 629 | 1,018 | 621 | | **Total equity** | **156,702** | **156,705** | **191,686** | **182,343** | [Condensed Consolidated Statement of Cash Flows](index=10&type=section&id=%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%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 outflow from operating activities significantly decreased, while net cash inflow from financing activities increased, leading to a **net increase in cash and bank balances of USD 19,191 thousand** and an **ending balance of USD 72,756 thousand** Condensed Consolidated Statement of Cash Flows Key Data (USD thousands) | Indicator | June 30, 2025 (Unaudited) | June 30, 2024 (Unaudited) | Change | | :--- | :--- | :--- | :--- | | Net cash outflow from operating activities | (4,851) | (11,114) | Improved 56.3% | | Net cash inflow from investing activities | 474 | 224 | Increased 111.6% | | Net cash inflow from financing activities | 23,568 | 16,638 | Increased 41.6% | | Net increase in cash and bank balances | 19,191 | 5,748 | Increased 233.9% | | Cash and bank balances at end of period | 72,756 | 81,212 | -10.4% | [Notes to the Condensed Consolidated Interim Financial Information](index=11&type=section&id=%E7%AE%80%E6%98%8E%E5%90%88%E5%B9%B6%E4%B8%AD%E6%9C%9F%E8%B4%A2%E5%8A%A1%E8%B5%84%E6%96%99%E9%99%84%E6%B3%A8) This section provides detailed notes supporting the condensed consolidated interim financial information, covering general information, basis of preparation, accounting policies, estimates, financial risk management, segment information, and other financial details [General Information](index=11&type=section&id=1%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) Luen Thai Holdings Limited primarily manufactures and trades apparel and accessories with production facilities in China, Cambodia, the Philippines, and Myanmar, listed on the HKEX Main Board, with interim financial information presented in USD and unaudited - The Group's principal activities are the manufacturing and trading of **apparel and accessories**, with production facilities located in China, Cambodia, the Philippines, and Myanmar[19](index=19&type=chunk) - The Company is primarily listed on the Main Board of The Stock Exchange of Hong Kong Limited, and this condensed consolidated interim financial information is presented in **USD** and is **unaudited**[20](index=20&type=chunk)[21](index=21&type=chunk) [Basis of Preparation](index=11&type=section&id=2%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The condensed consolidated interim financial information is prepared in accordance with HKAS 34 'Interim Financial Reporting' and should be read with the Company's annual report for the year ended December 31, 2024, with income tax accrued using the applicable tax rate on the expected annual total earnings - The condensed consolidated interim financial information has been prepared in accordance with **Hong Kong Accounting Standard 34 'Interim Financial Reporting'**[22](index=22&type=chunk) - Income tax is accrued using the tax rate that would be applicable to the expected total annual earnings[23](index=23&type=chunk) [Accounting Policies](index=12&type=section&id=3%20%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The Group's accounting policies are consistent with the 2024 annual financial statements, adopting only HKAS 21 and HKFRS 1 (amendments) — Lack of Exchangeability effective for FY2025 with no significant impact, while assessing the potential impact of HKFRS 18 - The accounting policies applied are consistent with those of the annual financial statements for the year ended December 31, 2024, with the adoption of **HKAS 21** and **HKFRS 1 (amendments) — Lack of Exchangeability** effective for the 2025 financial year, which are not expected to have a significant impact[24](index=24&type=chunk)[25](index=25&type=chunk) - The Group is currently assessing the potential impact of adopting **HKFRS 18 (Presentation and Disclosure in Financial Statements)**, which primarily affects the presentation of the consolidated statement of comprehensive income and cash flows[27](index=27&type=chunk) [Estimates](index=13&type=section&id=4%20%E4%BC%B0%E8%A8%88) Management's significant judgments, estimates, and assumptions in preparing the interim financial information are consistent with those applied in the 2024 consolidated financial statements, though actual results may differ from estimates - The significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty in preparing the condensed consolidated interim financial information are the same as those applied to the consolidated financial statements for the year ended December 31, 2024[28](index=28&type=chunk) [Financial Risk Management](index=13&type=section&id=5%20%E8%B2%A1%E5%8B%99%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86) The Group faces market risks (foreign exchange and interest rate), credit risk, and liquidity risk, with no significant changes in risk management policies since December 31, 2024, and derivative financial instruments are measured at fair value as Level 2 financial instruments - The Group's activities expose it to a variety of financial risks: **market risk** (including foreign exchange risk and cash flow interest rate risk), **credit risk**, and **liquidity risk**[29](index=29&type=chunk) - There have been **no changes** in the risk management policies since December 31, 2024[30](index=30&type=chunk) Fair Value of Derivative Financial Instruments (USD thousands) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Derivative financial instruments (liabilities) | 167 | — | | Derivative financial instruments (assets) | — | 31 | [Segment Information](index=15&type=section&id=6%20%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group primarily operates in two segments: apparel and accessories; for the six months ended June 30, 2025, the apparel segment saw decreased revenue but significantly reduced losses, while the accessories segment experienced revenue growth but a slight profit decline, with overall segment profit turning from loss to gain Segment Revenue and Profit (USD thousands) | Segment | June 30, 2025 Revenue | June 30, 2024 Revenue | Revenue Change | June 30, 2025 Segment Profit/(Loss) | June 30, 2024 Segment Profit/(Loss) | Profit Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Apparel | 171,553 | 183,362 | -6.4% | (2,741) | (9,635) | Improved 71.6% | | Accessories | 124,271 | 121,160 | +2.6% | 5,040 | 5,277 | -4.5% | | **Group Total** | **295,824** | **304,522** | **-2.9%** | **2,299** | **(4,358)** | **Turned loss into profit** | Revenue Analysis by Category (USD thousands) | Category | June 30, 2025 | June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Sales of apparel, textiles and accessories | 292,347 | 299,592 | -2.4% | | Other income | 3,477 | 4,930 | -29.5% | | **Total Revenue** | **295,824** | **304,522** | **-2.9%** | [Intangible Assets and Property, Plant and Equipment](index=18&type=section&id=7%20%E7%84%A1%E5%BD%A2%E8%B3%87%E7%94%A2%E4%BB%A5%E5%8F%8A%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) As of June 30, 2025, the total net book value of intangible assets and property, plant, and equipment was **USD 125,181 thousand**, a decrease from the beginning of the year; goodwill impairment tests for apparel and accessories cash-generating units resulted in no impairment loss, but key assumptions for value-in-use calculations were updated Net Book Value of Intangible Assets and Property, Plant and Equipment (USD thousands) | Indicator | June 30, 2025 | January 1, 2025 | June 30, 2024 | January 1, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total intangible assets | 43,229 | 43,563 | 43,897 | 44,231 | | Property, plant and equipment | 81,952 | 87,386 | 98,845 | 105,203 | | **Total** | **125,181** | **130,949** | **142,742** | **149,434** | - As of June 30, 2025, the Group performed goodwill impairment tests for the apparel and accessories cash-generating units, with **no impairment loss recognized** as the recoverable amounts exceeded the carrying amounts[43](index=43&type=chunk) Key Assumptions for Goodwill Impairment Test (Average) | Assumption | Accessories (June 30, 2025) | Apparel (June 30, 2025) | Accessories (December 31, 2024) | Apparel (December 31, 2024) | | :--- | :--- | :--- | :--- | :--- | | Average revenue growth | 7.1% | 6.6% | 5.8% | 4.6% | | Average gross margin | 18.2% | 13.8% | 19.4% | 13.6% | | Terminal growth rate | 2.0% | 2.0% | 2.0% | 2.0% | | Discount rate | 16.0% | 17.0% | 16.0% | 17.0% | [Leases](index=21&type=section&id=8%20%E7%A7%9F%E8%B3%83) As of June 30, 2025, total right-of-use assets amounted to **USD 25,542 thousand**, and total lease liabilities were **USD 25,071 thousand**, with total cash outflow for leases during the period decreasing to **USD 3,900 thousand** from the prior year Right-of-Use Assets and Lease Liabilities (USD thousands) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total right-of-use assets | 25,542 | 23,202 | | Lease liabilities (current) | 2,535 | 3,202 | | Lease liabilities (non-current) | 22,536 | 19,514 | | **Total lease liabilities** | **25,071** | **22,716** | - Total cash outflow for leases for the six months ended June 30, 2025, was **USD 3,900 thousand**, a decrease from **USD 5,344 thousand** in the corresponding period of 2024[48](index=48&type=chunk) [Inventories](index=23&type=section&id=9%20%E5%AD%98%E8%B2%A8) As of June 30, 2025, total inventories increased to **USD 70,943 thousand**, primarily driven by increases in work-in-progress and finished goods, reflecting changes in production activities Composition of Inventories (USD thousands) | Category | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Raw materials | 23,833 | 24,285 | -1.9% | | Work-in-progress | 37,612 | 23,370 | +61.0% | | Finished goods | 9,498 | 7,929 | +19.8% | | **Total** | **70,943** | **55,584** | **+27.6%** | [Trade and Other Receivables](index=23&type=section&id=10%20%E6%87%89%E6%94%B6%E8%B2%BF%E6%98%93%E8%B3%87%E6%AC%BE%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, net trade receivables increased to **USD 108,585 thousand**, with total trade and other receivables at **USD 170,482 thousand**; the Company generally grants customers a credit period of up to 120 days Trade and Other Receivables (USD thousands) | Category | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Trade receivables — net | 108,585 | 104,197 | +4.2% | | Amounts due from related parties — net | 18,050 | 19,234 | -6.2% | | Deposits, prepayments and other receivables | 27,124 | 25,285 | +7.3% | | Indemnity guarantee assets | 16,723 | 16,723 | 0% | | **Total current portion** | **170,482** | **165,439** | **+3.0%** | - The Group generally grants credit terms of up to **120 days** to its customers[52](index=52&type=chunk) [Cash and Bank Balances](index=24&type=section&id=11%20%E7%8F%BE%E9%87%91%E5%8F%8A%E9%8A%80%E8%A1%8C%E7%B5%90%E9%A4%98) As of June 30, 2025, cash and bank balances increased significantly to **USD 72,756 thousand** from December 31, 2024, reflecting improved liquidity Cash and Bank Balances (USD thousands) | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Cash at bank and in hand | 72,756 | 54,136 | +34.4% | | Bank deposits maturing after 3 months | — | 735 | -100% | | **Total cash and cash equivalents** | **72,756** | **54,871** | **+32.6%** | [Share Capital](index=25&type=section&id=12%20%E8%82%A1%E6%9C%AC) As of June 30, 2025, issued and fully paid share capital remained unchanged at **USD 10,341 thousand**, consisting of ordinary shares with a par value of **USD 0.01 per share** Share Capital Information (USD thousands) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Issued and fully paid share capital | 10,341 | 10,341 | [Other Reserves](index=25&type=section&id=13%20%E5%85%B6%E4%BB%96%E5%84%B2%E5%82%99) As of June 30, 2025, total other reserves decreased to **(USD 6,936) thousand** from **(USD 6,685) thousand** at the beginning of the year, primarily due to currency translation differences Composition of Other Reserves (USD thousands) | Category | January 1, 2025 | June 30, 2025 | January 1, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Capital reserve | 7,891 | 7,891 | 7,891 | 7,891 | | Other capital reserve | (4,031) | (4,031) | (2,795) | (2,795) | | Employee benefits reserve | 870 | 913 | 4,602 | 1,012 | | Exchange reserve | (11,415) | (11,709) | (12,378) | (11,536) | | **Total** | **(6,685)** | **(6,936)** | **(2,680)** | **(5,428)** | [Interests in Joint Ventures and Associates](index=26&type=section&id=14%20%E6%96%BC%E5%90%88%E7%87%9F%E4%BC%81%E6%A5%AD%E5%8F%8A%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E7%9A%84%E6%AC%8A%E7%9B%8A) As of June 30, 2025, the Group's total interests in joint ventures and associates slightly decreased to **USD 4,975 thousand** from the beginning of the year, mainly influenced by dividends received Interests in Joint Ventures and Associates (USD thousands) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Interests in joint ventures | 4,888 | 4,990 | | Interests in associates | 87 | 88 | | **Total** | **4,975** | **5,078** | - For the six months ended June 30, 2025, the Group's share of post-tax profit from joint ventures and associates was **USD 311 thousand**, and **dividends of USD 414 thousand** were received[55](index=55&type=chunk) [Borrowings](index=27&type=section&id=15%20%E5%80%9F%E8%B2%B8) As of June 30, 2025, total Group borrowings increased to **USD 169,587 thousand**, entirely current and unsecured, primarily comprising term loans and trade financing Composition of Borrowings (USD thousands) | Category | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Bank borrowings — term loans | 144,952 | 122,090 | +18.7% | | Bank borrowings — trade financing | 24,635 | 21,411 | +15.1% | | **Total borrowings** | **169,587** | **143,501** | **+18.2%** | | Current borrowings (unsecured) | 169,587 | 141,902 | +19.5% | [Trade and Other Payables](index=28&type=section&id=16%20%E6%87%89%E4%BB%98%E8%B2%BF%E6%98%93%E8%B3%87%E6%AC%BE%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade and other payables increased to **USD 93,377 thousand**, primarily consisting of trade payables and accrued wages and salaries Composition of Trade and Other Payables (USD thousands) | Category | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Trade payables | 50,635 | 40,404 | +25.3% | | Contract liabilities | 70 | 74 | -5.4% | | Other tax payables | 9,266 | 9,033 | +2.6% | | Accrued wages and salaries | 19,306 | 23,177 | -16.7% | | Accrued professional fees | 2,732 | 2,941 | -7.0% | | Amounts due to related parties | 800 | 1,004 | -20.4% | | Others | 10,568 | 10,163 | +4.0% | | **Total** | **93,377** | **86,796** | **+7.6%** | [Provisions](index=29&type=section&id=17%20%E6%92%A5%E5%82%99) As of June 30, 2025, total provisions amounted to **USD 19,054 thousand**, including **USD 16,723 thousand** in contingent liabilities primarily related to potential risks from import duties, other taxes, and penalties in overseas countries, with corresponding indemnity assets Composition of Provisions (USD thousands) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Contingent liabilities | 16,723 | 16,723 | | Other provisions | 2,331 | 2,355 | | **Total** | **19,054** | **19,078** | - Contingent liabilities primarily relate to potential risks from import duties, other taxes, and penalties in certain overseas countries, amounting to **USD 16,723 thousand**, with corresponding indemnity assets[58](index=58&type=chunk)[59](index=59&type=chunk) [Other Gains/(Losses) — Net](index=30&type=section&id=18%20%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E2%95%97%EF%BC%88%E8%99%A7%E6%90%8D%EF%BC%89%20%E2%80%94%20%E6%B7%A8%E9%A1%8D) For the six months ended June 30, 2025, the Group achieved **net other gains of USD 328 thousand**, primarily driven by net foreign exchange gains, reversing a loss in the prior period Other Gains/(Losses) — Net (USD thousands) | Category | June 30, 2025 | June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Fair value (loss)/gain on derivative instruments — net | (198) | 244 | Switched from gain to loss | | Net foreign exchange gains | 526 | 62 | Significant increase | | Loss on disposal of a joint venture | — | (323) | Loss eliminated | | **Total** | **328** | **(17)** | **Turned loss into gain** | [Operating Profit/(Loss)](index=30&type=section&id=19%20%E7%B6%93%E7%87%9F%E5%88%A9%E6%BD%A4%E2%95%97%EF%BC%88%E8%99%A7%E6%90%8D%EF%BC%89) For the six months ended June 30, 2025, operating profit was **USD 4,583 thousand**, a significant improvement from a **USD 2,602 thousand** loss in the prior period, mainly due to reduced depreciation and amortization and increased provision for obsolete inventories Factors Affecting Operating Profit/(Loss) (USD thousands) | Category | June 30, 2025 | June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Amortisation of intangible assets | 334 | 334 | 0% | | Depreciation of property, plant and equipment | 6,058 | 7,271 | -16.7% | | Depreciation of right-of-use assets | 1,985 | 2,766 | -28.3% | | (Gain)/loss on disposal of property, plant and equipment | (199) | 56 | Switched from loss to gain | | Impairment (reversal)/provision for trade receivables | (79) | 41 | Switched from provision to reversal | | Provision for obsolete inventories | 907 | — | New provision | [Finance Costs — Net](index=31&type=section&id=20%20%E8%B2%A1%E5%8B%99%E8%B2%BB%E7%94%A8%20%E2%80%94%20%E6%B7%A8%E9%A1%8D) For the six months ended June 30, 2025, net finance costs significantly decreased to **USD 4,795 thousand**, primarily due to a substantial reduction in interest expenses on bank loans and overdrafts Finance Costs — Net (USD thousands) | Category | June 30, 2025 | June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Interest expense on lease liabilities from related companies | (42) | (66) | -36.3% | | Interest expense on lease liabilities from third parties | (746) | (809) | -7.7% | | Interest expense on bank loans and overdrafts | (4,415) | (5,880) | -25.0% | | Finance costs | (5,203) | (6,755) | -23.0% | | Interest income from bank deposits | 395 | 328 | +20.4% | | Interest income from amounts due from a joint venture | 13 | 15 | -13.3% | | Finance income | 408 | 343 | +18.9% | | **Finance costs — net** | **(4,795)** | **(6,412)** | **-25.2%** | [Income Tax (Credit)/Expense](index=31&type=section&id=21%20%E6%89%80%E5%BE%97%E7%A8%85%EF%BC%88%E6%8A%B5%E5%85%8D%EF%BC%89%E2%95%97%E8%B2%BB%E7%94%A8) For the six months ended June 30, 2025, the Group recorded an **income tax credit of USD 155 thousand**, a reversal from a **USD 1,154 thousand expense** in the prior period, mainly due to over-provision reversals; the Company settled Hong Kong tax disputes, made provisions for China indirect transfers and Cambodia tax audits, and recognized current tax expenses under Pillar Two rules Income Tax (Credit)/Expense (USD thousands) | Category | June 30, 2025 | June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Current income tax | 1,912 | 1,243 | +53.8% | | Over-provision in prior years | (1,660) | — | New reversal | | Deferred income tax | (407) | (89) | Increased 357.3% | | **Total** | **(155)** | **1,154** | **Switched from expense to credit** | - The Group reached a settlement with the Hong Kong Inland Revenue Department regarding disputes over offshore profit claims for prior years, resulting in a **tax provision of USD 4,150 thousand**[65](index=65&type=chunk) - The Group has made provisions for potential withholding income tax exposure from indirect transfers of Chinese companies (approximately **USD 1,533 thousand**) and for Cambodian tax audits[66](index=66&type=chunk) - The Group has assessed and recognized a current tax expense of **USD 562 thousand** for the six months ended June 30, 2025, expected to be levied under the **OECD Pillar Two rules**[67](index=67&type=chunk) [Earnings/(Loss) Per Share](index=33&type=section&id=22%20%E6%AF%8F%E8%82%A1%E6%94%B6%E7%9B%8A%E2%95%97%EF%BC%88%E8%99%A7%E6%90%8D%EF%BC%89) For the six months ended June 30, 2025, basic earnings per share attributable to owners of the Company was **0.04 US cents**, a turnaround from a **loss of 0.94 US cents** per share in the prior period; diluted earnings per share was the same as basic earnings per share due to no dilutive potential ordinary shares Earnings/(Loss) Per Share (US cents) | Indicator | June 30, 2025 | June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Profit/(loss) attributable to owners of the Company (USD thousands) | 373 | (9,728) | Turned loss into profit | | Weighted average number of ordinary shares outstanding (thousands) | 1,034,113 | 1,034,113 | 0% | | **Basic earnings/(loss) per share (US cents)** | **0.04** | **(0.94)** | **Turned loss into profit** | - As there were no dilutive potential ordinary shares outstanding for the six months ended June 30, 2025, and 2024, diluted earnings/(loss) per share was **the same as basic earnings/(loss) per share**[69](index=69&type=chunk) [Dividends](index=34&type=section&id=23%20%E8%82%A1%E6%81%AF) For the six months ended June 30, 2025, the Board of Directors did not declare an interim dividend - The Board of Directors did not declare an interim dividend for the six months ended June 30, 2025, and 2024[70](index=70&type=chunk) [Related Party Transactions and Balances](index=34&type=section&id=24%20%E9%97%9C%E8%81%AF%E6%96%B9%E4%BA%A4%E6%98%93%E5%8F%8A%E7%B5%90%E9%A4%98) The Group engages in various related party transactions with its holding companies, joint ventures, and associates, including sales of apparel, textiles, and accessories, management fee income, interest income, and purchases of goods and services; as of June 30, 2025, net amounts due from related parties were **USD 18,050 thousand**, and amounts due to related parties were **USD 800 thousand** - The Company's immediate holding company is Shanghai Textile (Hong Kong) Limited, and its ultimate holding company is Shanghai Textile (Group) Co., Ltd[71](index=71&type=chunk) Significant Related Party Transactions (USD thousands) | Transaction Type | June 30, 2025 | June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Sales of apparel, textiles and accessories to related companies | 22,133 | 34,347 | -35.5% | | Management fee income received from joint ventures and related companies | 2,942 | 1,559 | +88.7% | | Professional and technical support service fees paid to related companies | 577 | 960 | -39.9% | | Outwork charges paid to joint ventures | 11,401 | 3,466 | +228.9% | | Purchases of goods from joint ventures | 10,952 | 11,967 | -8.5% | Period-End Balances with Related Parties (USD thousands) | Category | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Amounts due from related parties — net | 18,050 | 19,234 | -6.2% | | Amounts due to related parties | 800 | 1,004 | -20.4% | | Lease liabilities (from related parties) | 316 | 1,760 | -82.0% | [Management Discussion and Analysis](index=38&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 management's discussion and analysis of the Group's operating results, segment performance, market conditions, liquidity, financial resources, risk management, and future outlook [Operating Results and Overview](index=38&type=section&id=%E7%B6%93%E7%87%9F%E6%A5%AD%E7%B8%BE%E5%8F%8A%E7%B6%9C%E8%A6%BD) Despite global geopolitical instability and trade policy uncertainties, Luen Thai Holdings turned profitable in H1 2025, achieving **USD 373 thousand profit attributable to owners**, driven by improved gross margin, reduced non-recurring expenses, and lower finance costs - The global economy faces uncertainties from **geopolitical instability** and **US reciprocal tariff policies**, leading to reduced or suspended procurement by brand customers[83](index=83&type=chunk) Operating Results Overview (USD thousands) | Indicator | June 30, 2025 | June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | 295,824 | 304,522 | -2.9% | | Gross profit | 41,179 | 38,621 | +6.6% | | Profit/(loss) attributable to owners of the Company | 373 | (9,728) | Turned loss into profit | - Performance improvement was primarily attributable to: (i) **no non-recurring expenses** related to US customs laws and regulations in H1 2025 (compared to approximately **USD 3,900 thousand** in H1 2024); (ii) an **overall gross margin increase of 1.2 percentage points to 13.9%**; and (iii) a **25.2% reduction in finance costs to USD 4,795 thousand**[84](index=84&type=chunk) [Segment Review](index=39&type=section&id=%E5%88%86%E9%83%A8%E5%9B%9E%E9%A1%A7) In H1 2025, apparel business accounted for approximately **58.0% of total revenue**, and accessories for **42.0%**; the apparel segment saw revenue decline but losses significantly narrowed by **71.6%**, while accessories revenue grew by **2.6%** but profit slightly decreased by **4.5%** - Apparel and accessories businesses accounted for approximately **58.0%** and **42.0%** of the Group's total revenue, respectively, during the review period[85](index=85&type=chunk) [Apparel](index=39&type=section&id=%E6%88%90%E8%A1%A3) In H1 2025, apparel segment revenue decreased by **6.4%** year-on-year to **USD 171,553 thousand**, but segment loss significantly improved by **71.6%** to **USD 2,741 thousand**, primarily due to the elimination of non-recurring expenses Apparel Segment Performance (USD thousands) | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | 171,553 | 183,362 | -6.4% | | Segment loss | (2,741) | (9,635) | Improved 71.6% | - The improvement in the apparel segment's performance was mainly due to **no non-recurring expenses** related to US customs laws and regulations in H1 2025[86](index=86&type=chunk) [Accessories](index=39&type=section&id=%E6%9C%8D%E9%A3%BE%E9%85%8D%E4%BB%B6) In H1 2025, accessories segment revenue increased by **2.6%** year-on-year to **USD 124,271 thousand**, but segment profit slightly decreased by **4.5%** to **USD 5,040 thousand** Accessories Segment Performance (USD thousands) | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | 124,271 | 121,160 | +2.6% | | Segment profit | 5,040 | 5,277 | -4.5% | [Markets](index=39&type=section&id=%E5%B8%82%E5%A0%B4) Europe and the US remain the Group's primary export markets, accounting for approximately **62.6% of total revenue** in H1 2025, while the Asian market (mainly China and Japan) contributed approximately **20.5%** - Europe and the US are the Group's primary export markets, with total revenue of approximately **USD 185,196 thousand** in H1 2025, accounting for approximately **62.6% of total revenue**[88](index=88&type=chunk) - The Asian market (mainly China and Japan) generated revenue of approximately **USD 60,773 thousand**, representing approximately **20.5% of the Group's total revenue**[88](index=88&type=chunk) [Liquidity and Financial Resources](index=39&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, total cash and bank deposits increased to **USD 72,756 thousand**, and total bank borrowings rose to **USD 169,587 thousand**, all repayable within one year, resulting in a **gearing ratio of 62.0%** Liquidity and Financial Resources (USD thousands) | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total cash and bank deposits | 72,756 | 54,871 | +32.6% | | Total bank borrowings | 169,587 | 143,501 | +18.2% | - As of June 30, 2025, all of the Group's bank borrowings, approximately **USD 169,587 thousand**, are repayable within one year[90](index=90&type=chunk) - As of June 30, 2025, the Group's **gearing ratio was approximately 62.0%**[90](index=90&type=chunk) [Foreign Exchange Risk Management](index=40&type=section&id=%E5%A4%96%E6%BB%99%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86) The Group adopts a prudent policy to hedge against exchange rate fluctuations by regularly reviewing net foreign exchange exposure and entering into currency hedging arrangements when necessary; no forward foreign exchange or hedging contracts were entered into during the reporting period - The Group adopts a prudent policy to hedge against exchange rate fluctuations by regularly reviewing its net foreign exchange exposure and entering into currency hedging arrangements when necessary[91](index=91&type=chunk) - For the six months ended June 30, 2025, and 2024, the Group did not enter into any forward foreign exchange or hedging contracts[91](index=91&type=chunk) [Future Plans and Prospects](index=40&type=section&id=%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83%E5%8F%8A%E5%89%8D%E6%99%AF) Facing a challenging operating environment and slowing global economic growth, the Group will continue to assess economic conditions, monitor market uncertainties and business risks, and implement strict cost control, streamline production bases, enhance strategic resilience, and adjust business strategies to address challenges and seize opportunities - The overall operating environment remains challenging, particularly due to uncertainties arising from **US reciprocal tariff policies**[92](index=92&type=chunk) - The Group will continue to implement **strict cost control measures**, including reducing production, distribution, and administrative costs, and achieving greater synergy through sharing internal resources[93](index=93&type=chunk) - The Group will further **streamline and integrate its diversified production bases**, enhance strategic resilience, closely monitor market conditions, and adjust business strategies as needed[93](index=93&type=chunk) [Material Investments, Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=41&type=section&id=%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E3%80%81%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%90%88%E7%87%9F%E4%BC%81%E6%A5%AD%E7%9A%84%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E3%80%81%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) For the period ended June 30, 2025, the Group had **no material investments, acquisitions, or disposals** of subsidiaries, associates, or joint ventures - For the period ended June 30, 2025, there were **no material investments, acquisitions, or disposals** of subsidiaries, associates, or joint ventures[94](index=94&type=chunk) [Future Plans for Material Investments or Capital Assets](index=41&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E6%88%96%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E7%9A%84%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) As of June 30, 2025, or the date of this report, the Group had **no specific plans for material investments or capital assets** - As of June 30, 2025, or the date of this report, there were **no specific plans for material investments or capital assets**[95](index=95&type=chunk) [Pledge of Assets](index=41&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%BC%E8%A8%98) As of June 30, 2025, the Group had **no assets pledged to third parties** - As of June 30, 2025, **no assets of the Group were pledged to third parties**[96](index=96&type=chunk) [Contingent Liabilities](index=41&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group's total contingent liabilities amounted to **USD 16,723 thousand**, primarily related to potential risks from import duties, other taxes, and penalties in overseas countries, with corresponding indemnity assets; some tax cases were settled during the period - As of June 30, 2025, the Group's total contingent liabilities were approximately **USD 16,723 thousand**, involving potential risks from import duties, other taxes, and penalties in overseas countries[97](index=97&type=chunk) - Contingent liabilities include **USD 5,504 thousand** recognized from the Universal business combination and **USD 11,461 thousand** from the Sachio business combination, both fully indemnified by the sellers[97](index=97&type=chunk)[98](index=98&type=chunk) - For the period ended June 30, 2025, **USD 22 thousand** of Universal-related tax cases and **USD 220 thousand** of Sachio-related tax cases were settled[98](index=98&type=chunk) [Human Resources and Corporate Social Responsibility](index=42&type=section&id=%E4%BA%BA%E5%8A%9B%E8%B3%87%E6%BA%90%E5%8F%8A%E4%BC%81%E6%A5%AD%E7%A4%BE%E6%9C%83%E8%B2%AC%E4%BB%BB) Luen Thai recruits talent through strategic HR, adopts social responsibility initiatives for growth, commits to safe work environments, fair compensation, career advancement, and acts as a global corporate citizen to advance supply chains and improve the environment - Luen Thai recruits through targeted and strategic human resources strategies and adopts social responsibility programs to support company growth[99](index=99&type=chunk) - The Company is committed to providing a **safe and pleasant working and living environment**, fair compensation and benefits programs, and career advancement opportunities through training and development initiatives[99](index=99&type=chunk) - As a global corporate citizen, Luen Thai operates with foresight in its business and sustainable commercial strategies, promoting global supply chain development and improving the surrounding environment[99](index=99&type=chunk) [Other Information](index=43&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) This section covers other relevant information including interim dividends, share transactions, director updates, share options, directors' and major shareholders' interests in shares, corporate governance practices, and review of interim financial information [Interim Dividend](index=43&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board of Directors resolved **not to declare an interim dividend** for the six months ended June 30, 2025[100](index=100&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=43&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed shares - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed shares[101](index=101&type=chunk) [Update on Directors' Information](index=43&type=section&id=%E8%91%A3%E4%BA%8B%E8%B3%87%E6%96%99%E6%9B%B4%E6%96%B0) Ms. Shi Min was appointed as an independent non-executive director and committee member on March 29, 2025, while Dr. Wang Jing retired on the same day; Mr. Jin Xin was appointed as a member of the Remuneration Committee - **Ms. Shi Min was appointed** as an independent non-executive director and a member of the Audit, Remuneration, and Nomination Committees on **March 29, 2025**[102](index=102&type=chunk) - **Dr. Wang Jing retired** as an independent non-executive director and a member of the relevant committees on **March 29, 2025**[102](index=102&type=chunk) - **Mr. Jin Xin was appointed** as a member of the Remuneration Committee, effective **March 29, 2025**[103](index=103&type=chunk) [Share Options](index=44&type=section&id=%E8%B3%BC%E8%82%A1%E6%AC%8A) The Company approved a 10-year share option scheme on May 30, 2024; for the period ended June 30, 2025, no share options were granted, exercised, cancelled, or lapsed, with no outstanding options and total shares available for issue representing approximately **10% of issued share capital** - The Company approved and adopted a **share option scheme on May 30, 2024**, with a **10-year validity period**, and eligible participants include directors (excluding independent non-executive directors) and employees[105](index=105&type=chunk) - For the six months ended June 30, 2025, **no share options were granted, exercised, cancelled, or lapsed** under the share option scheme[105](index=105&type=chunk) - As of June 30, 2025, there were **no outstanding share options** under the share option scheme, and the total number of shares available for issue represents approximately **10% of the total issued share capital**[105](index=105&type=chunk) [Directors' and Chief Executive's Interests in Shares](index=45&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E6%9C%80%E9%AB%98%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E6%96%BC%E8%82%A1%E4%BB%BD%E7%9A%84%E6%AC%8A%E7%9B%8A) As of June 30, 2025, Dr. Henry Tan and Mr. Raymond Tan held interests in the Company's shares, including trustee, controlled corporation, and spouse interests Directors' and Chief Executive's Long Positions in Shares (As of June 30, 2025) | Director Name | Capacity | Number of Shares (thousands) | Approximate Percentage of Interest in the Company | | :--- | :--- | :--- | :--- | | Henry Tan | Trustee | 1,841 | 0.18% | | | Interest in controlled corporation | 10,993 | 1.06% | | | Founder of discretionary trust | 13,916 | 1.35% | | Raymond Tan | Interest in controlled corporation | 15,656 | 1.51% | | | Spouse's interest | 2,050 | 0.20% | - Save as disclosed, as of June 30, 2025, no director or chief executive or their associates had any interests or short positions in any shares, underlying shares, or debentures of the Company or any of its associated corporations[107](index=107&type=chunk) [Major Shareholders' Interests in Shares](index=46&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E6%96%BC%E8%82%A1%E4%BB%BD%E7%9A%84%E6%AC%8A%E7%9B%8A) As of June 30, 2025, Shanghai Textile (Hong Kong) Limited and its associated companies were the largest shareholders, holding **70.64% of shares**; other major shareholders included Double Joy Investment Limited, Luen Thai Capital Limited, Luen Thai Group Limited, and Dr. Henry Tan and Mrs. Tan Chiu Man Kuk Major Shareholders' Long Positions in Shares (As of June 30, 2025) | Shareholder Name | Capacity | Number of Ordinary Shares (thousands) | Approximate Percentage of Interest in the Company | | :--- | :--- | :--- | :--- | | Shanghai Textile (Hong Kong) Limited | Beneficial owner | 730,462 | 70.64% | | Shanghai Textile Group Investment Co., Ltd. | Interest in controlled corporation | 730,462 | 70.64% | | Shanghai Textile (Group) Co., Ltd. | Interest in controlled corporation | 730,462 | 70.64% | | Orient International (Holding) Co., Ltd. | Interest in controlled corporation | 730,462 | 70.64% | | Shanghai Guosheng (Group) Co., Ltd. | Interest in controlled corporation | 730,462 | 70.64% | | Double Joy Investment Limited | Beneficial owner | 71,976 | 6.96% | | Luen Thai Capital Limited | Beneficial owner | 17,204 | 1.66% | | Luen Thai Group Limited | Beneficial owner | 13,916 | 1.35% | | Dr. Henry Tan | Interest in controlled corporation | 103,096 | 9.97% | | Mrs. Tan Chiu Man Kuk | Interest in controlled corporation/Spouse's interest | 103,096 | 9.97% | - Shanghai Textile (Hong Kong) Limited is **100% directly owned by Shanghai Textile Group Investment Co., Ltd.**, which is in turn **100% directly owned by Shanghai Textile (Group) Co., Ltd.**[111](index=111&type=chunk) [Corporate Governance Practices](index=48&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A6%8F) The Company consistently complied with the applicable code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules during the reporting period, maintaining high corporate governance standards through its Audit, Remuneration, Nomination, and Finance and Banking Committees - The Company has consistently complied with the applicable code provisions of the **Corporate Governance Code** as set out in Appendix C1 to the Listing Rules for the six months ended June 30, 2025[114](index=114&type=chunk) - The Board has established an **Audit Committee, Remuneration Committee, Nomination Committee, and Finance and Banking Committee** to enhance corporate transparency and uphold ethical conduct[115](index=115&type=chunk)[117](index=117&type=chunk) [Review of Interim Financial Information](index=49&type=section&id=%E5%AF%A9%E9%96%B1%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99) The Audit Committee reviewed the Group's accounting principles and practices, discussed review, internal controls, and financial reporting with management, and external auditor PricewaterhouseCoopers reviewed the unaudited condensed consolidated interim financial information - The Audit Committee has reviewed the accounting principles and practices adopted by the Group and discussed review, internal controls, and financial reporting matters with management[118](index=118&type=chunk) - The unaudited condensed consolidated interim financial information has been reviewed by the external auditor, **PricewaterhouseCoopers**, in accordance with **Hong Kong Standard on Review Engagements 2410**[118](index=118&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors](index=49&type=section&id=%E9%81%B5%E5%AE%88%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The Company adopted a code of conduct for directors' securities transactions no less exacting than the Model Code in Appendix C3 of the Listing Rules, and all directors confirmed compliance during the reporting period - The Company has adopted a code of conduct for directors' securities transactions no less exacting than the **Model Code** set out in Appendix C3 to the Listing Rules[119](index=119&type=chunk) - All directors confirmed their compliance with the required standards set out in the Model Code and the Company's adopted code of conduct for directors' securities transactions for the six months ended June 30, 2025[119](index=119&type=chunk)

2025 中期報告 2025 年中期報告 永嘉集團控股有限公司及其附屬公司經營國際運動、時裝及戶外品牌的綜 合生產及零售業務。本集團的業務分為兩大類，即生產業務及高級時裝零 售業務，市場遍佈歐洲、美國、中國大陸及香港。 本公司股份自二零零六年九月六日起於聯交所主板上市。 目錄 | | | 11–12 獨立核數師的簡明中期財務資料審閱報告 二零二五年中期報告 永嘉集團控股有限公司 1 4 財務摘要 5–10 管理層討論及分析 13–14 合併財務狀況表 15 合併利潤表 16 合併全面收益表 17 簡明合併權益變動表 18 簡明合併現金流量表 19–36 簡明中期財務資料附註 37–43 其他資料 44 詞彙 公司資料 董事會 執行董事 李國棟先生 （主席） 黎清平先生 （副主席） 李國樑先生 （行政總裁） 王志強先生 （首席財務官） 獨立非執行董事 關啟昌先生 馬家駿先生 陳潔芬女士 公司秘書 林彩霞小姐 授權代表 李國棟先生 王志強先生 法律顧問 的近律師行 核數師 羅兵咸永道會計師事務所 執業會計師及註冊公眾利益實體核數師 董事會委員會 審核委員會 馬家駿先生 （主席） 李國棟先生 陳潔芬女士 註冊辦事處 ...