[Unaudited Interim Results](index=2&type=section&id=Interim%20Results) This section presents the unaudited condensed consolidated interim financial statements, covering performance, financial position, equity, and cash flows [Condensed Consolidated Interim Statement of Profit or Loss](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E4%B8%AD%E6%9C%9F%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the Group's revenue increased by **6.35%** year-on-year, operating loss significantly narrowed, but still recorded a loss after income tax, with basic loss per share of **HK$0.33** | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,302,141 | 1,224,403 | 6.35% | | Operating Loss | (32,372) | (144,205) | -77.56% | | Loss Before Income Tax | (139,086) | (371,741) | -62.59% | | Loss After Income Tax | (158,430) | (388,916) | -59.26% | | Loss Attributable to Owners of the Company | (158,430) | (388,916) | -59.26% | | Basic Loss Per Share | (0.33) | (0.81) | -59.26% | [Condensed Consolidated Interim Statement of Comprehensive Income](index=3&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E4%B8%AD%E6%9C%9F%E5%85%A8%E9%9D%A2%E6%94%B6%E5%85%A5%E8%A1%A8) Total comprehensive loss for the period significantly narrowed, primarily due to reduced loss for the period and a shift from exchange loss to gain | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Loss for the Period | (158,430) | (388,916) | -59.26% | | Exchange Differences on Translation | 79,545 | (59,230) | 234.30% | | Other Comprehensive Income / (Loss) for the Period, Net of Tax | 46,577 | (59,392) | 178.42% | | Total Comprehensive Loss Attributable to Owners of the Company for the Period | (111,853) | (448,308) | -75.04% | [Condensed Consolidated Interim Statement of Financial Position](index=4&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the Group's total assets and total equity both decreased, with reductions in investment properties and interests in joint ventures within non-current assets, while cash and cash equivalents in current assets increased | Metric | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 5,945,157 | 6,158,836 | -3.47% | | Non-current Assets | 3,264,761 | 3,460,829 | -5.67% | | Investment Properties | 1,366,723 | 1,473,317 | -7.24% | | Interests in Joint Ventures | 1,493,969 | 1,591,570 | -6.13% | | Current Assets | 2,680,396 | 2,698,007 | -0.65% | | Cash and Cash Equivalents | 883,592 | 719,846 | 22.75% | | Total Equity | 3,391,194 | 3,517,402 | -3.60% | | Total Liabilities | 2,553,963 | 2,641,434 | -3.29% | [Condensed Consolidated Interim Statement of Changes in Equity](index=6&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E4%B8%AD%E6%9C%9F%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) For the six months ended June 30, 2025, total equity attributable to owners of the Company decreased due to loss for the period and changes in other comprehensive income, but exchange differences in other reserves showed a positive movement | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Equity at Beginning of Period (January 1) | 3,517,402 | 4,474,267 | -21.40% | | Loss for the Period | (158,430) | (388,916) | -59.26% | | Exchange Differences on Translation | 79,545 | (59,230) | 234.30% | | Total Other Comprehensive Income | 46,577 | (59,392) | 178.42% | | Total Comprehensive Loss | (111,853) | (448,308) | -75.04% | | Dividends Paid | (14,355) | (14,355) | 0.00% | | Total Equity at End of Period (June 30) | 3,391,194 | 4,011,604 | -15.30% | [Condensed Consolidated Interim Statement of Cash Flows](index=7&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E4%B8%AD%E6%9C%9F%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the six months ended June 30, 2025, the Group's net cash from operating activities decreased, but cash flow from investing activities shifted from net outflow to net inflow, and net cash used in financing activities significantly reduced, leading to a net increase in cash and cash equivalents | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 116,306 | 153,378 | -24.17% | | Net Cash Generated from / (Used in) Investing Activities | 113,297 | (395,711) | 128.63% | | Net Cash Used in Financing Activities | (105,657) | (270,968) | -61.01% | | Net Increase / (Decrease) in Cash and Cash Equivalents | 123,946 | (513,301) | 124.15% | | Cash and Cash Equivalents at End of Period | 883,592 | 423,116 | 108.83% | [Notes to the Condensed Consolidated Interim Financial Information](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Information) This section provides notes to the interim financial information, covering general data, accounting policies, financial risk management, and segment reporting [1 General Information](index=8&type=section&id=1%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) Wong's International Holdings Limited and its subsidiaries are primarily engaged in the development, manufacturing, marketing, and distribution of electronic products, as well as property holding businesses - The Group's principal businesses include **Electronic Manufacturing Services (EMS)** and **property holding**[11](index=11&type=chunk) [2 Basis of Preparation](index=8&type=section&id=2%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) This interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and should be read in conjunction with the annual financial statements - This interim financial information is unaudited and prepared in accordance with **Hong Kong Accounting Standard 34**[12](index=12&type=chunk)[13](index=13&type=chunk) [3 Principal Accounting Policies](index=8&type=section&id=3%20%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) This interim financial information is prepared under the historical cost convention, with fair value adjustments for derivative financial instruments, financial assets at fair value through other comprehensive income, and investment properties. The Group has adopted revised HKAS 21 and HKFRS 1, and new standard HKFRS 18 is expected to impact the presentation of the consolidated statement of profit or loss - This interim financial information is prepared under the **historical cost convention**, with fair value adjustments for specific financial instruments and investment properties[14](index=14&type=chunk) - The Group has adopted revised **HKAS 21** and **HKFRS 1**, with no significant impact expected on current or future periods[15](index=15&type=chunk) - **HKFRS 18** will introduce new presentation requirements for the consolidated statement of comprehensive income, categorizing income and expenses into operating, investing, financing, income tax, and discontinued operations, which is expected to impact financial statement presentation[18](index=18&type=chunk) [4 Estimates](index=10&type=section&id=4%20%E4%BC%B0%E8%A8%88) The preparation of interim financial statements involves management's judgments, estimates, and assumptions, which are consistent with those used for the consolidated financial statements for the year ended December 31, 2024 - Significant judgments and estimates made by management in preparing the interim financial statements are consistent with those used for the annual financial statements[20](index=20&type=chunk) [5 Financial Risk Management and Financial Instruments](index=11&type=section&id=5%20%E8%B2%A1%E5%8B%99%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86%E5%8F%8A%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7) The Group is exposed to market risks (currency and interest rate), credit risk, and liquidity risk, and uses interest rate swap contracts to hedge against some floating-rate borrowing risks. Fair value measurements are categorized into three levels, with investment properties primarily valued using Level 3 unobservable inputs - The Group's operations are exposed to **market risks** (currency and cash flow interest rate risks), **credit risk**, and **liquidity risk**[21](index=21&type=chunk) - The Group has entered into **interest rate swap contracts** to hedge against the risk of increased interest on certain floating-rate borrowings[22](index=22&type=chunk) Financial Assets and Liabilities Measured at Fair Value (HK$ Thousand) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Financial Assets at Fair Value Through Other Comprehensive Income | 62,541 | 71,216 | | Of which: Level 1 | 45,531 | 53,874 | | Of which: Level 3 | 17,010 | 17,342 | | **Liabilities** | | | | Derivative Financial Instruments | 17,708 | 13,528 | | Of which: Level 2 | 17,708 | 13,528 | - Level 3 fair value measurements primarily involve unlisted private investment funds and physical investments, with valuation parameters including recent transaction prices of underlying assets, discount rates, and sales growth rates[30](index=30&type=chunk) [6 Segment Information](index=14&type=section&id=6%20%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group operates in two segments: Electronic Manufacturing Services (EMS) and Property Holding. The EMS segment saw growth in both revenue and segment results, while the Property Holding segment's revenue remained stable but still recorded a loss. The Group's revenue primarily comes from Asia (excluding Hong Kong) and European markets - The Group's primary operating segments are **Electronic Manufacturing Services (EMS)** and **property holding**[32](index=32&type=chunk) Segment Results Overview (For the six months ended June 30, HK$ Thousand) | Metric | EMS Segment (2025) | Property Holding Segment (2025) | Total (2025) | EMS Segment (2024) | Property Holding Segment (2024) | Total (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | External Revenue | 1,271,379 | 30,762 | 1,302,141 | 1,193,142 | 31,261 | 1,224,403 | | Segment Results | 81,769 | (179,677) | (97,908) | 64,347 | (409,914) | (345,567) | | Share of Loss of Joint Ventures | – | (83,322) | (83,322) | – | (200,847) | (200,847) | | Fair Value Change of Investment Properties | – | (107,196) | (107,196) | – | (210,927) | (210,927) | Revenue Analysis by Geographical Market (For the six months ended June 30, HK$ Thousand) | Region | 2025 | 2024 | | :--- | :--- | :--- | | North America | 208,972 | 157,169 | | Asia (excluding Hong Kong) | 699,471 | 775,133 | | Europe | 307,457 | 198,497 | | Hong Kong | 86,241 | 93,604 | | **Total** | **1,302,141** | **1,224,403** | - For the six months ended June 30, 2025, approximately **HK$628.39 million** and **HK$152.19 million** in revenue were derived from two major external customers, both attributable to the EMS segment[39](index=39&type=chunk) [7 Profit Before Income Tax](index=19&type=section&id=7%20%E9%99%A4%E6%89%80%E5%BE%97%E7%A8%85%E5%89%8D%E5%88%A9%E6%BD%A4) For the six months ended June 30, 2025, the Group's total depreciation and other operating expenses both decreased | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Depreciation | 21,064 | 26,229 | | Other Operating Expenses | 68,702 | 67,718 | | Total | 89,766 | 93,947 | [8 Other (Losses) / Gains – Net](index=20&type=section&id=8%20%E5%85%B6%E4%BB%96%EF%BC%88%E虧%E6%90%8D%EF%BC%89%E2%88%95%E6%94%B6%E7%9B%8A%EF%BC%8D%E6%B7%A8%E9%A1%8D) For the six months ended June 30, 2025, the Group recorded other net losses, primarily due to increased exchange losses | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Gain on Disposal of Property, Plant and Equipment | 650 | 1,288 | | Exchange (Losses) / Gains – Net | (8,444) | 9,689 | | **Total** | **(7,794)** | **10,977** | [9 Net Finance Costs](index=20&type=section&id=9%20%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC%EF%BC%8D%E6%B7%A8%E9%A1%8D) For the six months ended June 30, 2025, the Group's finance income increased, while finance costs slightly decreased, resulting in a reduction in net finance costs | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Interest Income | 12,336 | 10,696 | | Interest Expense on Bank Borrowings | (34,753) | (36,936) | | Interest Expense on Lease Liabilities | (976) | (449) | | Total Finance Costs | (35,729) | (37,385) | | **Net Finance Costs** | **(23,393)** | **(26,689)** | [10 Income Tax Expense](index=21&type=section&id=10%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, the Group's income tax expense increased, mainly due to higher overseas taxation, despite Hong Kong Profits Tax shifting from an expense to a gain - Hong Kong Profits Tax rate is **16.5%**, Mainland China subsidiaries' corporate income tax rate is **25%**, and Wong's High-Tech (Suzhou) Co., Ltd. is **15%**[44](index=44&type=chunk) | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Hong Kong Profits Tax | (290) | 3,498 | | Overseas Taxation | 20,688 | 13,010 | | Withholding Tax on Dividends Paid | 8,072 | 8,611 | | Deferred Income Tax | (9,126) | (7,944) | | **Income Tax Expense** | **19,344** | **17,175** | [11 Dividends](index=22&type=section&id=11%20%E8%82%A1%E6%81%AF) The Board has resolved to declare an interim dividend of HK$0.0275 per share, consistent with the same period last year, totaling HK$13,158,000 - The Board has resolved to declare an interim dividend of **HK$0.0275** per share, totaling **HK$13,158,000**, consistent with the same period last year[47](index=47&type=chunk) [12 Loss Per Share](index=22&type=section&id=12%20%E6%AF%8F%E8%82%A1%E虧%E6%90%8D) For the six months ended June 30, 2025, basic loss per share was HK$0.33, a significant reduction from HK$0.81 in the same period last year, with no potential dilutive ordinary shares in either period | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Loss Attributable to Owners of the Company (HK$ Thousand) | (158,430) | (388,916) | | Weighted Average Number of Ordinary Shares in Issue (Thousand Shares) | 478,484 | 478,484 | | Basic Loss Per Share (HK$) | (0.33) | (0.81) | - There were **no potential dilutive ordinary shares** outstanding in either period, resulting in no diluted loss per share[51](index=51&type=chunk) [13 Capital Expenditure](index=23&type=section&id=13%20%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, additions to property, plant and equipment decreased, investment properties recorded a fair value loss, and were primarily valued using Level 3 unobservable inputs Changes in Property, Plant and Equipment and Investment Properties (HK$ Thousand) | Metric | Property, Plant and Equipment (2025) | Investment Properties (2025) | Property, Plant and Equipment (2024) | Investment Properties (2024) | | :--- | :--- | :--- | :--- | :--- | | Net Book Value at Beginning of Period (January 1) | 190,494 | 1,473,317 | 211,689 | 1,946,822 | | Additions | 4,501 | – | 10,347 | – | | Fair Value Loss | – | (107,196) | – | (210,927) | | Depreciation | (13,589) | – | (17,778) | – | | Net Book Value at End of Period (June 30) | 181,182 | 1,366,723 | 196,159 | 1,735,269 | - Investment properties are primarily measured at fair value using **Level 3 unobservable inputs**, valued by independent professional valuers using the direct comparison approach[54](index=54&type=chunk)[56](index=56&type=chunk) - As of June 30, 2025, certain bank borrowings were secured by property, plant and equipment, right-of-use assets, investment properties, and completed property inventories, with a carrying value of approximately **HK$1,556.297 million**[58](index=58&type=chunk) [14 Interests in Joint Ventures](index=26&type=section&id=14%20%E5%90%88%E7%87%9F%E4%BC%81%E6%A5%AD%E7%9A%84%E6%AC%8A%E7%9B%8A) As of June 30, 2025, the Group's interests in joint ventures decreased, mainly due to its share of losses from joint ventures, which included fair value losses on investment properties | Metric | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Share of Net Assets | 521,374 | 604,695 | | Loans to Joint Ventures | 972,595 | 986,875 | | **Total** | **1,493,969** | **1,591,570** | - Share of loss of joint ventures includes share of fair value loss on investment properties (net of deferred income tax) of approximately **HK$97.775 million**[60](index=60&type=chunk) - Loans to joint ventures are **unsecured, interest-free**, and not repayable within the next twelve months[61](index=61&type=chunk) [15 Trade Receivables](index=27&type=section&id=15%20%E6%87%89%E6%94%B6%E8%B2%BF%E6%98%93%E8%B3%AC%E6%AC%BE) As of June 30, 2025, the Group's total trade receivables decreased, but impairment allowance slightly increased. Credit periods primarily range from 30 to 120 days | Metric | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Trade Receivables | 788,907 | 865,545 | | Less: Impairment Allowance | (460) | (438) | | **Net** | **788,447** | **865,107** | - The Group grants credit periods to trade customers primarily ranging from **30 to 120 days**, without charging interest[63](index=63&type=chunk) | Aging | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | 0 to 60 Days | 530,242 | 506,851 | | 61 to 90 Days | 127,918 | 180,405 | | Over 90 Days | 130,747 | 178,289 | [16 Trade Payables](index=29&type=section&id=16%20%E6%87%89%E4%BB%98%E8%B2%BF%E6%98%93%E8%B3%AC%E6%AC%BE) As of June 30, 2025, the Group's total trade payables slightly decreased, with a reduction in payables aged 0 to 60 days | Aging | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | 0 to 60 Days | 313,930 | 376,770 | | 61 to 90 Days | 49,587 | 47,815 | | Over 90 Days | 177,587 | 123,436 | | **Total** | **541,104** | **548,021** | [17 Borrowings](index=29&type=section&id=17%20%E8%B2%B8%E6%AC%BE) As of June 30, 2025, the Group's total borrowings decreased, with non-current borrowings reducing and current borrowings increasing. Some short-term and long-term bank borrowings are secured by assets such as property, plant and equipment, and investment properties | Borrowing Type | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Trust Receipt Bank Borrowings, Unsecured | 283,445 | 223,390 | | Short-term Bank Borrowings, Unsecured | 295,000 | 299,000 | | Short-term Bank Borrowings, Secured | 115,700 | 115,700 | | Portion of Long-term Bank Borrowings Repayable within One Year, Secured | 97,609 | 104,408 | | Portion of Long-term Bank Borrowings Repayable after One Year, Secured | 741,026 | 876,430 | | **Total Borrowings** | **1,532,780** | **1,618,928** | | Non-current | 741,026 | 876,430 | | Current | 791,754 | 742,498 | - Approximately **HK$954.334 million** of short-term and long-term bank borrowings are secured by property, plant and equipment, right-of-use assets, investment properties, completed property inventories, restricted cash, and corporate guarantees[66](index=66&type=chunk)[68](index=68&type=chunk) [18 Share Capital](index=30&type=section&id=18%20%E8%82%A1%E6%9C%AC) As of June 30, 2025, the Company's authorised and issued and fully paid share capital remained unchanged | Share Capital Type | Number of Shares | Amount (HK$ Thousand) | | :--- | :--- | :--- | | Authorised Share Capital (Ordinary Shares of HK$0.10 each) | 700,000,000 | 70,000 | | Issued and Fully Paid Share Capital (Ordinary Shares of HK$0.10 each) | 478,483,794 | 47,848 | [19 Commitments](index=31&type=section&id=19%20%E6%89%BF%E6%93%94) As of June 30, 2025, the Group's capital commitments for property, plant and equipment slightly increased, while total future minimum lease receipts under operating leases decreased | Commitment Type | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Capital Commitments for Property, Plant and Equipment (Contracted but not Provided For) | 8,572 | 7,713 | | Total Future Minimum Lease Receipts under Operating Leases (Within One Year) | 50,547 | 51,125 | | Total Future Minimum Lease Receipts under Operating Leases (Second to Fifth Year) | 44,650 | 72,029 | | **Total Future Minimum Lease Receipts under Operating Leases** | **95,197** | **123,154** | - Operating lease income refers to rent receivable by the Group for leasing its investment properties, with leases and rents negotiated and determined for an average term of **3 years**[69](index=69&type=chunk) [20 Related Party Transactions](index=32&type=section&id=20%20%E9%97%9C%E9%80%A3%E4%BA%BA%E5%A3%AB%E4%BA%A4%E6%98%93) Mr. Wong Chung Mat is the Company's largest shareholder. For the six months ended June 30, 2025, total key management personnel remuneration decreased - The Company's largest shareholder is **Mr. Wong Chung Mat**[70](index=70&type=chunk) - Loans to joint ventures are disclosed in Note 14 to the Condensed Consolidated Interim Financial Information[71](index=71&type=chunk) | Key Management Personnel Remuneration | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Salaries and Allowances | 7,769 | 8,252 | | Bonuses | 4,269 | 4,902 | | Pension Costs | 21 | 36 | | **Total** | **12,059** | **13,190** | [Other Information](index=33&type=section&id=Other%20Information) This section covers additional information, including interim dividends, business review, corporate governance, and shareholder interests [Interim Dividends](index=33&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board has resolved to declare an interim dividend of HK$0.0275 per share, payable on September 26, 2025, to shareholders on the register of members as of September 12, 2025 - The Board has resolved to declare an interim dividend of **HK$0.0275** per share, totaling **HK$13,158,000**, consistent with the same period last year[73](index=73&type=chunk) [Closure of Register of Members and Record Date](index=33&type=section&id=%E6%9A%AB%E5%81%9C%E8%BE%A6%E7%90%86%E8%82%A1%E6%9D%B1%E7%99%BB%E8%A8%98%E6%89%8B%E7%BA%8C%E5%8F%8A%E8%A8%98%E9%8C%84%E6%97%A5%E6%9C%9F) The Company will close its register of members from September 10 to September 12, 2025, to determine eligible shareholders for the interim dividend - The register of members will be closed from **September 10 to September 12, 2025**, with the record date set for **September 12, 2025**[74](index=74&type=chunk) [Business Review](index=33&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group's loss for the six months ended June 30, 2025, significantly narrowed, primarily due to increased profit in the EMS segment, reduced loss in the property holding segment, and decreased net finance costs. However, increased exchange difference losses and higher income tax expense partially offset these improvements. The Group maintains sufficient liquidity and will continue to invest in its EMS business while closely monitoring the impact of US tariff policy on its outlook - Loss attributable to owners of the Company was **HK$158.4 million**, a significant reduction from **HK$388.9 million** in the same period last year[75](index=75&type=chunk) - Excluding the impact of changes in investment properties and completed property inventories, underlying profit attributable to owners of the Company was **HK$56.4 million**, compared to **HK$54.3 million** in the same period last year[75](index=75&type=chunk) - EMS segment revenue was **HK$1,271.4 million**, a **6.56% year-on-year increase**; segment profit was **HK$81.8 million**, a **27.1% year-on-year increase**, primarily due to increased sales to external customers and improved cost efficiency[77](index=77&type=chunk) - Property holding segment revenue was **HK$30.8 million**, stable year-on-year; segment loss was **HK$179.7 million**, a significant reduction from **HK$409.9 million** in the same period last year[78](index=78&type=chunk) - As of June 30, 2025, the Group's total banking facilities were **HK$2,806.2 million**, total bank borrowings were **HK$1,532.8 million**, and cash and cash equivalents, short-term bank deposits, and restricted cash totaled **HK$1,427.1 million**[79](index=79&type=chunk) - The Group's net debt-to-equity ratio decreased to **0.03** from **0.08** in December 2024[79](index=79&type=chunk) - The Group does not use foreign exchange hedging products but will closely monitor currency risks from **RMB fluctuations**[80](index=80&type=chunk) - Looking ahead to the second half of 2025, **US tariff policy** remains a major disruptive force, with EMS business revenue expected to be slightly lower than the first half[83](index=83&type=chunk) - The Group will continue to enhance its **dual production bases** in Mainland China and Vietnam, expand production capacity, and broaden its customer base in areas such as industrial electronics and new energy[84](index=84&type=chunk) [Awards and Recognition](index=36&type=section&id=%E7%8D%8E%E9%A0%85%E5%8F%8A%E8%AA%8D%E5%8F%AF) The Company and its wholly-owned subsidiary, Wong's Electronics Company Limited, have been awarded the "Caring Company" logo by The Hong Kong Council of Social Service for thirteen consecutive years, recognizing their active community involvement and good corporate citizenship - The Company and its wholly-owned subsidiary, Wong's Electronics Company Limited, have been awarded the **'Caring Company' logo for thirteen consecutive years**[85](index=85&type=chunk) [Directors' and Chief Executive's Interests](index=37&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E4%B8%BB%E8%A6%81%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E4%B9%8B%E6%AC%8A%E7%9B%8A) As of June 30, 2025, Mr. Wong Chung Mat was the Company's largest shareholder, holding **28.60%** of the shares, with other directors also holding minor stakes Directors' Long Positions in the Company's Shares | Name of Director | Capacity | Number of Ordinary Shares | Approximate Percentage of Issued Shares | | :--- | :--- | :--- | :--- | | Wong Chung Mat | Beneficial Owner and Interest in Controlled Corporation | 136,828,569 | 28.60% | | Wong Yin Man | Beneficial Owner | 1,000,000 | 0.21% | | Chan Tze Wah | Beneficial Owner | 1,837,500 | 0.38% | | Yeung Sun Sai | Beneficial Owner | 500,000 | 0.10% | - **Mr. Wong Chung Mat's** interests include **1,000,000 shares** held personally and **135,828,569 shares** held through Salop Hong Kong Limited, which he wholly owns and controls[88](index=88&type=chunk)[89](index=89&type=chunk) [Major Shareholders' Interests](index=38&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E4%B9%8B%E6%AC%8A%E7%9B%8A) As of June 30, 2025, in addition to the directors, Salop Hong Kong Limited, Cantrust (Far East) Limited, Mr. Wong Chung Nga and his spouse Ms. Luk Kit Ching, Mr. Wong Chung Chin and his spouse Ms. Wu Sin Ming, among others, were major shareholders of the Company Major Shareholders' Long Positions in the Company's Shares | Name of Major Shareholder | Capacity | Number of Ordinary Shares | Approximate Percentage of Issued Shares | | :--- | :--- | :--- | :--- | | Salop Hong Kong Limited | Beneficial Owner | 135,828,569 | 28.39% | | Cantrust (Far East) Limited | Trustee | 126,298,413 | 26.40% | | Wong Chung Nga | Beneficial Owner, Spouse's Interest and Founder of Discretionary Trust | 90,308,532 | 18.87% | | Luk Kit Ching | Beneficial Owner and Spouse's Interest | 90,308,532 | 18.87% | | Kong King International Limited | Beneficial Owner | 88,073,532 | 18.41% | | WLJ Holding Limited | Interest in Controlled Corporation | 88,073,532 | 18.41% | | Wong Chung Chin | Beneficial Owner and Jointly Held Interest | 78,526,001 | 16.41% | | Wu Sin Ming | Jointly Held Interest and Spouse's Interest | 78,526,001 | 16.41% | | Wong Chung Yan | Founder of Discretionary Trust | 38,224,881 | 7.99% | | New Chung Yan Limited | Interest in Controlled Corporation | 38,224,881 | 7.99% | | Wong Chung Chiu | Founder of Discretionary Trust | 31,379,167 | 6.56% | | Sycamore Assets Limited | Beneficial Owner | 31,379,167 | 6.56% | | HSBC International Trustee Limited | Trustee | 31,379,167 | 6.56% | [Share Options](index=40&type=section&id=%E8%B3%BC%E8%82%A1%E6%AC%8A) The Company adopted a share option scheme in 2020, but as of June 30, 2025, no share options had been granted under the scheme - The Company adopted a share option scheme on June 26, 2020, but as of June 30, 2025, **no share options were granted**[94](index=94&type=chunk) - As of June 30, 2025, the number of share options authorized for grant under the scheme was **47,848,379 units**[94](index=94&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=40&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 any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the period[95](index=95&type=chunk) [Corporate Governance Code](index=41&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The Company has complied with the Corporate Governance Code of the Stock Exchange, but there are deviations such as the combined roles of Chairman and Chief Executive Officer, non-acceptance of anonymous complaints, and the Remuneration Committee's terms of reference not covering share scheme matters - The Company complies with the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules, with certain deviations[97](index=97&type=chunk) - Code Provision C.2.1: The roles of Chairman and Chief Executive Officer are combined and held by **Mr. Wong Chung Mat**, whom the Company believes possesses the necessary experience and leadership, with effective checks and balances provided by the Board and Independent Non-executive Directors[97](index=97&type=chunk)[98](index=98&type=chunk) - Code Provision D.2.3: The Company's current whistleblowing policy does not accept anonymous complaints due to follow-up difficulties and potential burden on management resources, but it commits to strict confidentiality for all reports[97](index=97&type=chunk) - Code Provision E.1.2(i): The Remuneration Committee's terms of reference do not include reviewing and/or approving share scheme matters, as the Board as a whole is considered more effective in fulfilling this oversight responsibility[99](index=99&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors of Listed Issuers](index=42&type=section&id=%E9%81%B5%E5%AE%88%E4%B8%8A%E5%B8%82%E7%99%BC%E8%A1%8C%E4%BA%BA%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) Following inquiries with all directors, all directors have confirmed compliance with the required standards of the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules for the six months ended June 30, 2025 - All Directors have confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers during the period[100](index=100&type=chunk) [Update on Directors' Information Pursuant to Rule 13.51B(1) of the Listing Rules](index=42&type=section&id=%E6%A0%B9%E6%93%9A%E4%B8%8A%E5%B8%82%E8%A6%8F%E5%89%87%E7%AC%AC13.51B(1)%E6%A2%9D%E4%B9%8B%E8%91%A3%E4%BA%8B%E8%B3%87%E6%96%99%E6%9B%B4%E6%96%B0) Ms. Wong Yin Man, an Executive Director of the Company, ceased to be a member of the Enterprise Support Scheme Assessment Panel under the Innovation and Technology Fund after her term expired on June 30, 2025 - Executive Director **Ms. Wong Yin Man** has ceased to be a member of the Enterprise Support Scheme Assessment Panel under the Innovation and Technology Fund[101](index=101&type=chunk) [Audit Committee](index=43&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, comprising three Independent Non-executive Directors, has reviewed the Group's accounting principles, internal controls, and financial reporting matters, including the interim financial information - The Audit Committee has reviewed the Group's accounting principles, internal controls, and financial reporting matters, and reviewed the interim financial information[102](index=102&type=chunk) [Board of Directors](index=43&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83) The Board of Directors includes Executive Directors Mr. Wong Chung Mat (Chairman and Chief Executive Officer), Ms. Wong Yin Man, Dr. Chan Tze Wah, Mr. Hung Wing Shun, Mr. Chan Wai Ming, and Independent Non-executive Directors Dr. Lee Ka Cheung, Dr. Yeung Sun Sai, Mr. Yip Tin Yeung, and Mr. Law Wai Ho - The Board of Directors comprises **five Executive Directors** and **four Independent Non-executive Directors**[102](index=102&type=chunk)

Company Information [Board of Directors and Committees](index=3&type=section&id=Board%20of%20Directors%20and%20Committees) The company's board comprises executive directors Ms. Gao Xiumei (Chairperson and CEO), Ms. Lian Xinli, Mr. Lian Xinglong, Mr. Yang Xiaoye, and independent non-executive directors Mr. Li Yaopei, Mr. Pan Dezheng, Mr. Peng Changwei. The Board has audit, remuneration, and nomination committees to ensure robust corporate governance - The Board of Directors includes **four executive directors and three independent non-executive directors**, with Ms. Gao Xiumei serving as both Chairperson and Chief Executive Officer[4](index=4&type=chunk) - The company has established **Audit, Remuneration, and Nomination Committees**, chaired or primarily composed of independent non-executive directors, to enhance corporate governance[4](index=4&type=chunk) [Company Contact and Registration Information](index=3&type=section&id=Company%20Contact%20and%20Registration%20Information) The company is registered in the Cayman Islands, with its principal place of business in Guangzhou, Guangdong Province, China, and its main Hong Kong business location in Sheung Wan. Ernst & Young is the auditor, and the stock code is 1861 - The company's registered office is in the **Cayman Islands**, and its principal place of business in the People's Republic of China is in Conghua District, Guangzhou, Guangdong Province[4](index=4&type=chunk) - The auditor is **Ernst & Young**, and the Hong Kong share registrar is Tricor Investor Services Limited[4](index=4&type=chunk)[5](index=5&type=chunk) - The company's stock code is **1861**, and its official website is www.botny.com[5](index=5&type=chunk) Business Review [Principal Business and Product Strategy](index=5&type=section&id=Principal%20Business%20and%20Product%20Strategy) The Group is a leading manufacturer of automotive beauty and maintenance aerosol products in China, engaged in designing, developing, manufacturing, and selling various automotive beauty and maintenance products, while also providing Contract Manufacturing Services (CMS) and Original Brand Manufacturing (OBM) products. The company continues to invest in OBM business development, enhancing market share through online platforms and brand activities, and launching the 'Botny Series' to reposition its corporate image - The Group specializes in the manufacturing of **aerosol products for automotive beauty and maintenance**, positioning itself as a leading manufacturer in China[6](index=6&type=chunk) - The company sells **Contract Manufacturing Services (CMS) and Original Brand Manufacturing (OBM) products**, with OBM products primarily sold through a distributor network and online platforms like Tmall and JD.com[6](index=6&type=chunk) - The Group continued to allocate resources to develop its **OBM business in the first half of 2025**, increasing brand awareness activities and achieving significant growth in online market sales[7](index=7&type=chunk) [Operating Environment and Outlook](index=5&type=section&id=Operating%20Environment%20and%20Outlook) Facing global economic uncertainty, trade protectionism, and raw material price volatility, the Group closely monitors industry developments and adjusts its strategies. Despite steady but fragile economic recovery in China, the company remains cautiously optimistic about the domestic market, OBM business, and personal care product industry, aiming to strengthen OBM through exhibitions, eco-friendly formulations, cost control, and brand enhancement - Global economic development faces **high uncertainty**, influenced by trade protectionism, international conflicts, and raw material price fluctuations[8](index=8&type=chunk) - The Chinese economy showed **steady growth in the first half of 2025**, though recovery remains fragile, with the government implementing safety and environmental regulations for aerosol products[9](index=9&type=chunk) - The Group will continuously enhance its **OBM business** through exhibitions, adopting eco-friendly formulations, strict cost control, improving brand image, and increasing product competitiveness[9](index=9&type=chunk) Management Discussion and Analysis [Financial Review](index=6&type=section&id=Financial%20Review) For the six months ended June 30, 2025, the Group's turnover increased by **18.4% to HK$324.7 million** year-on-year, driven by successful e-commerce strategies in China. Gross profit surged by **59.4%**, and net profit increased by **119.8%**, primarily due to online sales of high-margin OBM products, lower raw material costs, and a one-off gain from yacht disposal Key Financial Indicators for H1 2025 | Indicator | 2025 H1 (thousand HKD) | 2024 H1 (thousand HKD) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Turnover | 324,749 | 274,248 | +18.4% | | Cost of Sales | 180,589 | 183,802 | -1.7% | | Gross Profit | 144,160 | 90,446 | +59.4% | | Other Income and Gains | 26,422 | 8,816 | +199.7% | | Selling and Distribution Expenses | 69,728 | 23,464 | +197.2% | | Administrative Expenses | 22,597 | 23,051 | -2.0% | | Finance Costs | 710 | 986 | -28.0% | | Profit Attributable to Owners of the Parent | 52,711 | 23,978 | +119.8% | - Revenue from the **China market significantly increased by 27.4% to HK$283.7 million**, primarily due to China's economic recovery and effective e-commerce sales strategies[10](index=10&type=chunk) - Overseas sales decreased by **20.5% to HK$41.0 million**, mainly affected by weak demand in key export markets, global supply chain disruptions, exchange rate fluctuations, and geopolitical uncertainties[10](index=10&type=chunk) - The substantial increase in gross profit was primarily due to the success of **high-margin OBM product online sales strategies**, lower raw material prices, improved procurement strategies, and optimized automated production processes[12](index=12&type=chunk) - Other income and gains significantly increased by **199.7%**, mainly due to a disposal gain of approximately **HK$14.3 million** from the sale of a yacht and net exchange gains[13](index=13&type=chunk) - Selling and distribution expenses significantly increased by **197.2%**, primarily due to increased advertising and promotional costs of approximately **HK$53.9 million** to enhance e-commerce platforms[15](index=15&type=chunk) [Treasury Policy and Liquidity](index=7&type=section&id=Treasury%20Policy%20and%20Liquidity) The Group adopts a treasury policy to effectively control treasury operations and reduce borrowing costs, aiming to maintain sufficient cash levels. As of June 30, 2025, net current assets increased to **HK$168.1 million**, the current ratio improved to **2.4**, and the gearing ratio improved to **-10.7%**, indicating a robust financial position - The Group's treasury policy aims to effectively control treasury operations, reduce borrowing costs, and maintain **sufficient levels of cash and cash equivalents**[19](index=19&type=chunk) Liquidity Indicators | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Net Current Assets | 168,100 | 96,500 | Increased 74.2% | | Cash and Cash Equivalents | 158,600 | 110,500 | Increased 43.5% | | Current Ratio | 2.4 | 1.9 | Improved | | Bank Borrowings | 21,200 | 25,300 | Decreased 16.2% | | Available Standby Bank Facilities | 350,500 | 337,500 | Increased 3.8% | | Gearing Ratio | -10.7% | 4.0% | Improved | - The gearing ratio improved to **-10.7%**, primarily due to an increase in cash and cash equivalents and a decrease in total borrowings[23](index=23&type=chunk) [Capital Structure and Risk Management](index=8&type=section&id=Capital%20Structure%20and%20Risk%20Management) The total number of issued shares remained unchanged. The Group faces foreign exchange risk due to currency mismatch between USD revenue and RMB production costs, but no foreign currency forward contracts were entered into during the period. Employee numbers slightly decreased, with remuneration policies combining market terms and individual performance. No significant investments or contingent liabilities were incurred, and the yacht disposal was completed - The total number of issued shares of the Company is **233,917,250 shares**, remaining unchanged from December 31, 2024[24](index=24&type=chunk) - Approximately **12.6% of the Group's revenue is denominated in USD**, while over **90% of production costs are settled in RMB**, posing foreign exchange risk due to currency mismatch[25](index=25&type=chunk) - As of June 30, 2025, the Group had **460 employees** (December 31, 2024: 468 employees), with staff costs amounting to approximately **HK$20.7 million**[28](index=28&type=chunk) - The Group sold a yacht on June 27, 2025, for a consideration of **HK$35,021,737**, generating a disposal gain of approximately **HK$14.3 million**[13](index=13&type=chunk)[30](index=30&type=chunk) Interim Condensed Consolidated Financial Information Review Report [Independent Review Report](index=10&type=section&id=Independent%20Review%20Report) Ernst & Young conducted an independent review of Botny Technology Holdings Limited's interim condensed consolidated financial information for the six months ended June 30, 2025. The review scope is less than an audit, but no material matters were identified suggesting the financial information was not prepared in accordance with International Accounting Standard 34 - Ernst & Young conducted a review of the interim financial information in accordance with **Hong Kong Standard on Review Engagements 2410**[37](index=37&type=chunk) - The review concluded that no material matters were identified indicating that the interim financial information was not prepared, in all material respects, in accordance with **International Accounting Standard 34**[38](index=38&type=chunk) Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income [Profit or Loss Statement Overview](index=11&type=section&id=Profit%20or%20Loss%20Statement%20Overview) For the six months ended June 30, 2025, the Group recorded revenue of **HK$324.7 million**, gross profit of **HK$144.2 million**, and profit for the period of **HK$52.7 million**. Compared to the same period last year, revenue, gross profit, and profit all showed significant growth, with basic and diluted earnings per share at **22.5 HK cents** Summary of Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | 2025 H1 (thousand HKD) | 2024 H1 (thousand HKD) | | :--- | :--- | :--- | | Revenue | 324,749 | 274,248 | | Cost of Sales | (180,589) | (183,802) | | Gross Profit | 144,160 | 90,446 | | Other Income and Gains | 26,422 | 8,816 | | Selling and Distribution Expenses | (69,728) | (23,464) | | Administrative Expenses | (22,597) | (23,051) | | Research and Development Expenses | (11,169) | (10,772) | | Profit Before Tax | 64,463 | 33,918 | | Profit for the Period | 52,711 | 23,978 | | Total Comprehensive Income for the Period | 55,631 | 23,811 | | Basic and Diluted Earnings Per Share | 22.5 HK cents | 10.3 HK cents | - Profit for the period increased by **119.8% year-on-year**, primarily due to the combined effects of revenue growth, improved gross margin, and increased other income[41](index=41&type=chunk) - Exchange differences on translating overseas operations turned from a loss in the first half of 2024 to a gain in the first half of 2025, positively impacting **total comprehensive income**[41](index=41&type=chunk) Interim Condensed Consolidated Statement of Financial Position [Financial Position Overview](index=12&type=section&id=Financial%20Position%20Overview) As of June 30, 2025, the Group's total assets were **HK$531.9 million**, and net assets were **HK$381.1 million**. Net current assets significantly increased to **HK$168.1 million**, and cash and cash equivalents rose to **HK$155.9 million**, indicating strong liquidity Summary of Interim Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Total Non-current Assets | 246,192 | 266,839 | | Total Current Assets | 285,701 | 209,691 | | Total Current Liabilities | 117,561 | 113,207 | | Net Current Assets | 168,140 | 96,484 | | Total Assets Less Current Liabilities | 414,332 | 363,323 | | Total Non-current Liabilities | 33,221 | 37,843 | | Net Assets | 381,111 | 325,480 | | Equity Attributable to Owners of the Parent | 381,544 | 325,908 | - Total current assets increased from **HK$209.7 million to HK$285.7 million**, mainly due to increases in trade and bills receivables, prepayments, deposits and other receivables, and cash and cash equivalents[42](index=42&type=chunk) - Total non-current assets decreased, primarily due to a reduction in the **carrying amount of property, plant and equipment**[42](index=42&type=chunk) Interim Condensed Consolidated Statement of Changes in Equity [Equity Changes Overview](index=14&type=section&id=Equity%20Changes%20Overview) For the six months ended June 30, 2025, total equity attributable to owners of the parent increased from **HK$325.9 million** as of December 31, 2024, to **HK$381.5 million**, primarily driven by profit for the period of **HK$52.7 million** and exchange differences on translating overseas operations of **HK$2.9 million** Summary of Interim Condensed Consolidated Statement of Changes in Equity | Equity Item | December 31, 2024 (thousand HKD) | Profit for the Period (thousand HKD) | Exchange Differences (thousand HKD) | June 30, 2025 (thousand HKD) | | :--- | :--- | :--- | :--- | :--- | | Total Equity Attributable to Owners of the Parent | 325,908 | 52,711 | 2,925 | 381,544 | | Non-controlling Interests | (428) | — | (5) | (433) | | Total Equity | 325,480 | 52,711 | 2,920 | 381,111 | - Profit for the period was the primary driver of equity growth, while the **exchange fluctuation reserve also turned positive**, contributing to some growth[46](index=46&type=chunk) - Share option reserve slightly decreased due to transfers upon forfeiture or expiry, but its impact on **total equity was minor**[46](index=46&type=chunk) Interim Condensed Consolidated Statement of Cash Flows [Cash Flow Overview](index=16&type=section&id=Cash%20Flow%20Overview) For the six months ended June 30, 2025, the Group's net cash flow from operating activities was **HK$20.7 million**, net cash flow from investing activities was **HK$34.2 million**, and net cash flow used in financing activities was **HK$6.1 million**. Cash and cash equivalents at period-end significantly increased to **HK$155.9 million**, reflecting a healthy overall cash flow position Summary of Interim Condensed Consolidated Statement of Cash Flows | Cash Flow Category | 2025 H1 (thousand HKD) | 2024 H1 (thousand HKD) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 20,744 | 19,258 | | Net Cash Flow from Investing Activities | 34,165 | (9,164) | | Net Cash Flow Used in Financing Activities | (6,076) | (5,864) | | Net Increase in Cash and Cash Equivalents | 48,833 | 4,230 | | Cash and Cash Equivalents at End of Period | 155,866 | 112,768 | - Cash flow from investing activities turned from a net outflow last year to a **net inflow**, primarily due to a significant increase in proceeds from the disposal of property, plant and equipment to **HK$35.4 million**[51](index=51&type=chunk) - Net cash flow from operating activities slightly increased, supported by **growth in profit before tax**, despite an increase in trade and other receivables and prepayments[49](index=49&type=chunk) Notes to the Interim Condensed Consolidated Financial Information [Basis of Preparation and Changes in Accounting Policies](index=18&type=section&id=Basis%20of%20Preparation%20and%20Changes%20in%20Accounting%20Policies) The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 and should be read in conjunction with the 2024 annual consolidated financial statements. The revised International Accounting Standard 21 'Lack of Exchangeability' was adopted for the first time this period, but it had no material impact on the financial information as all the Group's transaction currencies are exchangeable - The interim condensed consolidated financial information is prepared in accordance with **International Accounting Standard 34 'Interim Financial Reporting'**[52](index=52&type=chunk) - The revised **International Accounting Standard 21 'Lack of Exchangeability'** was adopted for the first time this period, but it had no impact on the interim condensed consolidated financial information[53](index=53&type=chunk)[54](index=54&type=chunk) [Operating Segments and Revenue Analysis](index=19&type=section&id=Operating%20Segments%20and%20Revenue%20Analysis) The Group's operating segments include automotive beauty and maintenance products and personal care products. For the six months ended June 30, 2025, revenue from automotive beauty and maintenance products was **HK$257.8 million**, and personal care products was **HK$66.9 million**. Mainland China is the largest regional market, contributing **HK$283.7 million** in revenue Revenue and Results by Operating Segment | Segment | 2025 H1 Revenue (thousand HKD) | 2024 H1 Revenue (thousand HKD) | 2025 H1 Results (thousand HKD) | 2024 H1 Results (thousand HKD) | | :--- | :--- | :--- | :--- | :--- | | Automotive Beauty and Maintenance Products | 257,822 | 209,847 | 98,111 | 29,660 | | Personal Care Products | 66,927 | 64,401 | 15,625 | 8,594 | | Total | 324,749 | 274,248 | 113,736 | 38,254 | Revenue by Geographical Market | Geographical Market | 2025 H1 Revenue (thousand HKD) | 2024 H1 Revenue (thousand HKD) | | :--- | :--- | :--- | | Mainland China | 283,720 | 222,671 | | Japan | 25,340 | 31,087 | | Other Asia Pacific Countries/Regions | 5,765 | 7,700 | | Middle East | 3,080 | 4,040 | | Americas | 3,326 | 6,328 | | Other Regions | 3,518 | 2,422 | | Total Contract Revenue from Customers | 324,749 | 274,248 | - Segment results show a **significant improvement in the profitability of automotive beauty and maintenance products**, with steady growth also observed in personal care products[55](index=55&type=chunk)[56](index=56&type=chunk) [Profit Before Tax and Income Tax](index=24&type=section&id=Profit%20Before%20Tax%20and%20Income%20Tax) For the six months ended June 30, 2025, profit before tax was **HK$64.5 million**. Income tax expense was **HK$11.8 million**, primarily from Mainland China, with Hong Kong profits tax rate at **16.5%** (or **8.25%** for eligible entities) Composition of Profit Before Tax | Item | 2025 H1 (thousand HKD) | 2024 H1 (thousand HKD) | | :--- | :--- | :--- | | Cost of Inventories Sold | 180,589 | 183,802 | | Depreciation of Property, Plant and Equipment | 9,287 | 12,381 | | Research and Development Costs | 11,169 | 10,772 | | Employee Benefit Expenses | 22,780 | 25,241 | | Net Exchange (Gain)/Loss | (6,525) | 5,993 | | Net (Gain)/Loss on Disposal of Property, Plant and Equipment | (14,230) | 35 | | Impairment Loss on Financial Assets | 680 | 698 | | Write-down/(Reversal of Write-down) of Inventories to Net Realizable Value | 1,069 | (518) | Income Tax Expense | Item | 2025 H1 (thousand HKD) | 2024 H1 (thousand HKD) | | :--- | :--- | :--- | | Current - Mainland China | 12,228 | 9,898 | | Underprovision in Prior Years | 12 | 153 | | Deferred | (488) | (111) | | Total Income Tax Expense | 11,752 | 9,940 | - Income tax expense primarily originates from **Mainland China**, with Hong Kong profits tax rate at **16.5%**, and a preferential tax rate of **8.25%** applicable to certain eligible entities[62](index=62&type=chunk) [Dividends and Earnings Per Share](index=25&type=section&id=Dividends%20and%20Earnings%20Per%20Share) For the six months ended June 30, 2025, basic and diluted earnings per share were **22.5 HK cents**, a significant increase from **10.3 HK cents** in the prior year. The Board recommended an interim dividend of **3.24 HK cents per share**, higher than **1.42 HK cents** in the prior year Earnings Per Share and Dividends | Indicator | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Basic and Diluted Earnings Per Share | 22.5 HK cents | 10.3 HK cents | | Proposed Interim Dividend (per share) | 3.24 HK cents | 1.42 HK cents | - Earnings per share are calculated based on the **profit for the period attributable to ordinary equity holders of the parent** and the weighted average number of **233,917,250 ordinary shares** outstanding[64](index=64&type=chunk)[65](index=65&type=chunk) - No diluted adjustment was made to the basic earnings per share amount due to the **anti-dilutive effect of unexercised share options**[64](index=64&type=chunk) [Changes in Property, Plant and Equipment](index=26&type=section&id=Changes%20in%20Property%2C%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the Group purchased assets at a cost of **HK$2.133 million** and disposed of assets with a net book value of **HK$21.191 million**, generating a net gain of **HK$14.230 million** Changes in Property, Plant and Equipment | Item | 2025 H1 (thousand HKD) | 2024 H1 (thousand HKD) | | :--- | :--- | :--- | | Cost of Assets Purchased | 2,133 | 10,451 | | Net Book Value of Assets Disposed | 21,191 | 108 | | Net Gain on Disposal | 14,230 | (35) | - The disposal of assets during the period generated a **significant net gain**, compared to a net loss in the same period last year[67](index=67&type=chunk) - The Group did not recognize any **impairment losses** during the period[68](index=68&type=chunk) [Trade and Bills Receivables and Payables](index=26&type=section&id=Trade%20and%20Bills%20Receivables%20and%20Payables) As of June 30, 2025, total trade and bills receivables increased to **HK$69.4 million**, with the largest portion due within 30 days. Total trade and bills payables increased to **HK$42.3 million**, also with the largest portion due within 30 days Ageing Analysis of Trade and Bills Receivables | Ageing | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Within 30 days | 31,364 | 20,724 | | 31 to 60 days | 16,250 | 13,804 | | 61 to 90 days | 13,825 | 6,422 | | Over 90 days | 7,952 | 5,841 | | Total | 69,391 | 46,791 | Ageing Analysis of Trade and Bills Payables | Ageing | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Within 30 days | 22,900 | 22,206 | | 31 to 60 days | 5,835 | 8,620 | | 61 to 90 days | 3,783 | 6,977 | | Over 90 days | 9,804 | 3,817 | | Total | 42,322 | 41,620 | - Total trade receivables significantly increased, reflecting **sales growth**, while trade payables also slightly increased[69](index=69&type=chunk)[70](index=70&type=chunk) [Interest-Bearing Bank and Other Borrowings](index=27&type=section&id=Interest-Bearing%20Bank%20and%20Other%20Borrowings) As of June 30, 2025, the Group's total interest-bearing bank and other borrowings amounted to **HK$21.3 million**, a decrease from **HK$25.3 million** as of December 31, 2024. Borrowings primarily include lease liabilities and long-term bank loans, secured by property, plant and equipment Interest-Bearing Bank and Other Borrowings | Borrowing Category | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Current Portion | 10,689 | 10,160 | | Non-current Portion | 10,631 | 15,155 | | Total | 21,320 | 25,315 | - Long-term bank loans are secured and bear interest by reference to the **minimum lending rate**, with maturity dates between 2026 and 2027[71](index=71&type=chunk) - The **reduction in total borrowings** contributes to improving the company's debt-to-equity structure[71](index=71&type=chunk) [Capital Commitments and Related Party Transactions](index=28&type=section&id=Capital%20Commitments%20and%20Related%20Party%20Transactions) As of June 30, 2025, the Group's capital commitments primarily related to plant and machinery, amounting to approximately **HK$0.3 million**. Related party transactions included purchases from Guangdong Ouyabaozhuang Co., Ltd. and lease payments to Mr. Lian Yunzeng, the ultimate shareholder. Key management personnel remuneration increased Capital Commitments | Item | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Plant and Machinery | 326 | 481 | Summary of Related Party Transactions | Transaction Type | Related Party | 2025 H1 (thousand HKD) | 2024 H1 (thousand HKD) | | :--- | :--- | :--- | :--- | | Purchase of Products | Guangdong Ouyabaozhuang Co., Ltd. | 5,741 | 7,588 | | Lease Rental Expenses | Mr. Lian Yunzeng | 33 | 33 | | Total Key Management Personnel Remuneration | - | 4,136 | 3,520 | - Outstanding balances due to related parties amounted to **HK$33.965 million**, which are unsecured, interest-free, and have no fixed repayment terms[73](index=73&type=chunk) [Share Option Schemes](index=29&type=section&id=Share%20Option%20Schemes) The company has a Pre-IPO Share Option Scheme, a 2019 Share Option Scheme (terminated), and a 2023 Share Option Scheme. As of June 30, 2025, **6,557,500 share options** remained unexercised under the Pre-IPO scheme, while no options were granted, exercised, lapsed, or cancelled under the 2019 and 2023 schemes during the period - The Pre-IPO Share Option Scheme aims to recognize and incentivize executive directors, senior management, and other employees, with an exercise price of **HK$2.17 per share**[77](index=77&type=chunk) Changes in Pre-IPO Share Option Scheme | Item | Number of Share Options as of June 30, 2025 | Number of Share Options as of December 31, 2024 | | :--- | :--- | :--- | | Beginning of Period | 6,607,500 | 6,707,500 | | Forfeited During Period | (50,000) | (100,000) | | End of Period | 6,557,500 | 6,607,500 | - The 2019 Share Option Scheme was terminated on May 19, 2023, with **no share options granted** as of the termination date[86](index=86&type=chunk) - The 2023 Share Option Scheme was adopted on May 19, 2023, to encourage or reward selected participants, but **no share options were granted** for the six months ended June 30, 2025[87](index=87&type=chunk)[91](index=91&type=chunk) Other Information [Directors' and Major Shareholders' Interests](index=34&type=section&id=Directors'%20and%20Major%20Shareholders'%20Interests) As of June 30, 2025, Ms. Gao Xiumei (Chairperson and CEO) and her spouse Mr. Lian Yunzeng (through family and controlled corporations) collectively held approximately **74.94%** of the company's shares and share option interests. Mr. Lian Yunzeng, as a major shareholder, directly and indirectly held approximately **46.08%** of the company's shares Directors' Long Positions in Shares and Share Options | Director Name | Ordinary Shares (Beneficial Owner) | Family Interests (shares) | Corporate Interests (shares) | Share Options (shares) | Total (shares) | Approximate Percentage of Issued Shares | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Ms. Gao Xiumei | – | 107,788,500 | 67,000,000 | 500,000 | 175,288,500 | 74.94% | | Ms. Lian Xinli | 200,500 | – | – | 277,500 | 478,000 | 0.20% | | Mr. Lian Xinglong | – | – | – | 500,000 | 500,000 | 0.21% | | Mr. Yang Xiaoye | – | – | – | 300,000 | 300,000 | 0.13% | | Mr. Pan Dezheng | 368,000 | – | – | – | 368,000 | 0.16% | Major Shareholders' Long Positions in Shares | Shareholder Name/Entity | Capacity/Nature of Interest | Number of Shares Held (shares) | Approximate Percentage of Issued Shares | | :--- | :--- | :--- | :--- | | Mr. Lian Yunzeng | Beneficial Owner | 107,788,500 | 46.08% | | | Spouse's Interest | 500,000 | 0.21% | | | Interest in Controlled Corporation | 67,000,000 | 28.64% | | Wellmass International Limited | Beneficial Owner | 67,000,000 | 28.64% | - Ms. Gao Xiumei's interests include shares held by her spouse, Mr. Lian Yunzeng, and shares held through **Wellmass International Limited**, which she wholly beneficially owns[94](index=94&type=chunk) [Corporate Governance and Compliance](index=36&type=section&id=Corporate%20Governance%20and%20Compliance) The company has established Audit, Remuneration, and Nomination Committees and complies with the Corporate Governance Code, except for the combined roles of Chairman and CEO. The company explains this arrangement facilitates unified leadership and strategic execution, emphasizing sufficient checks and balances. During the period, the company maintained adequate public float, and all directors complied with the Model Code for Securities Transactions - The Company's **Audit Committee, Remuneration Committee, and Nomination Committee** have all been established and their terms of reference formulated in accordance with the Corporate Governance Code[115](index=115&type=chunk)[116](index=116&type=chunk)[117](index=117&type=chunk) - The Company complies with the Corporate Governance Code, except for the combined roles of Chairman and Chief Executive Officer held by Ms. Gao Xiumei, which the company believes facilitates **unified leadership and efficient decision-making**[118](index=118&type=chunk)[119](index=119&type=chunk) - For the six months ended June 30, 2025, the Company has consistently maintained a **sufficient public float of not less than 25%** as required by the Listing Rules[121](index=121&type=chunk) - All Directors confirmed their compliance with the **Model Code for Securities Transactions by Directors of Listed Issuers** throughout the period[122](index=122&type=chunk) [Dividend Distribution and Share Transfer Registration](index=41&type=section&id=Dividend%20Distribution%20and%20Share%20Transfer%20Registration) The Board has resolved to declare an interim dividend of **3.24 HK cents per share** for the six months ended June 30, 2025, payable on or about October 28, 2025. To determine dividend entitlements, share transfer registration will be suspended from September 5 to September 10, 2025 - The Board has declared an interim dividend of **3.24 HK cents per share** for the six months ended June 30, 2025, an increase from **1.42 HK cents** in the same period last year[123](index=123&type=chunk) - The interim dividend will be paid on or about **October 28, 2025**, to shareholders whose names appear on the register of members on **September 10, 2025**[123](index=123&type=chunk) - To be eligible for the interim dividend, share transfer registration will be suspended from **September 5, 2025, to September 10, 2025**[124](index=124&type=chunk)

連繫社區 共建未來 2025中期報告 股份代號：66 2025年中期業績 財務摘要 | 總收入 | 274 億港元 6.5% | | --- | --- | | 經常性業務利潤 | 34 億港元 | | | 15.7% | | 物業發展利潤 | 55 億港元 218.5% | | 投資物業公允價值 | 12 億港元 | | 計量虧損 | （與截至2024年6月30日止六個月的 公允價值計量收益3億港元相比） | | 本公司股東 應佔淨利潤 | 77 億港元 27.5% | | 中期普通股息 | 0.42 每股 港元 | | | （與2024年中期相同） | | 總資產 | 4,026 億港元 | | | 9.6%（與2024年12月31日相比） | | 淨資產 | 2,112 億港元 | | | 13.5%（與2024年12月31日相比） | | 淨負債權益比率 | 18.8% | | | 12.8個百分點（與2024年12月31日相比） | 目錄 MTR SHOP 我們的長遠目標 我們用關懷備至、創新及 可持續的服務，連繫及建 設社區，以成為廣受國際 認可的企業。 我們的使命 推動城市前行 我們的信念 我們 ...

SOUTH CHINA HOLDINGS COMPANY LIMITED 南華集團控股有限公司 （於 開 曼 群 島 註 冊 成 立 之 有 限 公 司） （股 份 代 號：00413） 截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月 中 期 業 績 報 告 South China Holdings Company Limited南華集團控股有限公司（「本公司」）之董事會（「董事會」或「董事」） 提 呈 本 公 司 及 其 附 屬 公 司（統 稱「本 集 團」）截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月 未 經 審 核 簡 明 綜 合 財 務 報 表。 綜 合 損 益 表 | 截 | 至 | 六 | 月 | 三 | 十 | 日 | 止 | 六 | 個 | 月 | 二 | 零 | 二 | 五 | 年 | 二 | 零 | 二 | 四 | 年 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ...

[GEM Listing Rules Features](index=3&type=section&id=GEM%20Listing%20Rules%20Features) The GEM market provides a listing platform for small and medium-sized companies, characterized by higher investment risks and potential market volatility - The GEM market is positioned to provide a listing platform for small and medium-sized companies, with **higher investment risks**, **greater potential market fluctuations**, and **no guarantee of high liquidity**[2](index=2&type=chunk) [Financial Summary](index=4&type=section&id=Financial%20Summary) The first half of 2025 saw a slight revenue decrease and a significant decline in profit attributable to owners, impacting earnings per share 2025 Half-Year Financial Summary (HK$ thousand) | Indicator | 2025 Half-Year (HK$ thousand) | 2024 Half-Year (HK$ thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 42,625 | 42,768 | -0.3% | | Profit Attributable to Owners of the Company | 976 | 2,825 | -65.5% | | Earnings Per Share (HK cents) | 0.33 | 0.96 | -65.7% | [Unaudited Condensed Consolidated Financial Statements](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including income, position, equity changes, and cash flows [Condensed Consolidated Statement of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, revenue slightly decreased, while profit and earnings per share significantly declined due to reduced other income and increased employee benefits Key Data from Condensed Consolidated Statement of Comprehensive Income (HK$ thousand) | Indicator | 2025 Half-Year (HK$ thousand) | 2024 Half-Year (HK$ thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 42,625 | 42,768 | -0.3% | | Other Income | 1,625 | 6,921 | -76.5% | | Employee Benefit Expenses | (37,974) | (35,360) | +7.4% | | Operating Profit | 1,037 | 3,014 | -65.6% | | Profit for the Period | 976 | 2,825 | -65.5% | | Basic and Diluted Earnings Per Share (HK cents) | 0.33 | 0.96 | -65.7% | [Condensed Consolidated Statement of Financial Position](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, non-current assets significantly decreased, current assets slightly increased due to term deposits, and current liabilities decreased, leading to a modest rise in net assets Key Data from Condensed Consolidated Statement of Financial Position (HK$ thousand) | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current Assets | 3,721 | 7,938 | -53.1% | | Current Assets | 71,952 | 71,614 | +0.5% | | Current Liabilities | 14,289 | 18,785 | -23.9% | | Net Assets | 61,370 | 60,394 | +1.6% | | Term Deposits | 33,000 | – | N/A | | Cash and Cash Equivalents | 19,553 | 49,523 | -60.5% | [Condensed Consolidated Statement of Changes in Equity](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, total equity slightly increased due to profit for the period, while share capital and share premium remained unchanged Key Data from Condensed Consolidated Statement of Changes in Equity (HK$ thousand) | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (HK$ thousand) | | :--- | :--- | :--- | :--- | | Share Capital | 2,956 | 2,956 | 0 | | Share Premium | 3,488 | 3,488 | 0 | | Retained Profits | 29,302 | 28,326 | +976 | | Total Equity | 61,370 | 60,394 | +976 | [Condensed Consolidated Statement of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operating activities significantly decreased, while cash outflows from investing and financing activities increased, resulting in a net decrease in cash and cash equivalents Key Data from Condensed Consolidated Statement of Cash Flows (HK$ thousand) | Indicator | 2025 Half-Year (HK$ thousand) | 2024 Half-Year (HK$ thousand) | Year-on-Year Change (HK$ thousand) | | :--- | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 3,874 | 8,278 | -4,404 | | Net Cash Used in Investing Activities | (32,678) | (23,259) | -9,419 | | Net Cash Used in Financing Activities | (1,166) | (134) | -1,032 | | Net Decrease in Cash, Cash Equivalents and Bank Overdrafts | (29,970) | (15,115) | -14,855 | | Cash, Cash Equivalents and Bank Overdrafts at End of Period | 19,553 | 11,472 | +8,081 | [Notes to Financial Information](index=10&type=section&id=Notes%20to%20Financial%20Information) This section provides detailed notes on the financial information, covering general company data, accounting policies, segment performance, and various financial accounts [1. General Information](index=10&type=section&id=1.%20General%20Information) The company was incorporated in the Cayman Islands on June 29, 2011, and listed on GEM of the Stock Exchange on January 9, 2012 - The company was **incorporated as an exempted company in the Cayman Islands on June 29, 2011**[11](index=11&type=chunk) - The company's shares have been **listed on GEM of the Stock Exchange since January 9, 2012**[11](index=11&type=chunk) [2. Basis of Preparation and Principal Accounting Policies](index=10&type=section&id=2.%20Basis%20of%20Preparation%20and%20Principal%20Accounting%20Policies) The unaudited condensed consolidated interim financial information is prepared in accordance with HKAS 34 and GEM Listing Rules, with consistent accounting policies and no significant impact from new standards - The unaudited condensed consolidated interim financial information is prepared in accordance with **Hong Kong Accounting Standard 34** issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of the **GEM Listing Rules**[12](index=12&type=chunk) - The accounting policies and basis of preparation adopted are **consistent with those applied in the consolidated financial statements for the year ended December 31, 2024**[12](index=12&type=chunk) - The newly issued and revised Hong Kong Financial Reporting Standards have **no significant impact** on the preparation and presentation of the Group's current and prior period results and financial position[12](index=12&type=chunk) [3. Segment Information and Revenue](index=11&type=section&id=3.%20Segment%20Information%20and%20Revenue) The Group operates in outsourced customer contact services, manpower placement, equipment management, and other system-related services, with financial services terminated in late 2024 - Reportable operating segments include **outsourced inbound/outbound customer contact services**, **manpower placement services**, **customer contact centre equipment management services**, **financial services related to credit financing (terminated operations)**, and **others (system and software sales, license service fees, system maintenance fees, and human resources services)**[14](index=14&type=chunk) - Financial services related to credit financing **ceased operations on December 27, 2024**[14](index=14&type=chunk) 2025 Half-Year Segment Revenue and Results (HK$ thousand) | Segment | Revenue | Results | | :--- | :--- | :--- | | Outsourced Inbound Customer Contact Services | 6,506 | 527 | | Manpower Placement Services | 28,567 | 2,829 | | Customer Contact Centre Equipment Management Services | 1,542 | 278 | | Others | 6,010 | 1,450 | | **Total** | **42,625** | **5,084** | 2024 Half-Year Segment Revenue and Results (HK$ thousand) | Segment | Revenue | Results | | :--- | :--- | :--- | | Outsourced Inbound Customer Contact Services | 8,421 | 824 | | Manpower Placement Services | 26,768 | 1,494 | | Customer Contact Centre Equipment Management Services | 3,312 | 861 | | Financial Services | 12 | 6,182 | | Others | 4,255 | 976 | | **Total** | **42,768** | **10,337** | Reconciliation of Segment Results to Profit Before Tax (HK$ thousand) | Indicator | 2025 Half-Year | 2024 Half-Year | | :--- | :--- | :--- | | Segment Results of Reportable Segments | 5,084 | 10,337 | | Unallocated Other Income | 1,625 | 172 | | Unallocated Depreciation and Amortization | (652) | (318) | | Corporate and Other Unallocated Expenses | (4,952) | (7,066) | | **Profit Before Tax** | **976** | **3,002** | [4. Employee Benefit Expenses](index=14&type=section&id=4.%20Employee%20Benefit%20Expenses) Total employee benefit expenses, including directors' emoluments, increased for the six months ended June 30, 2025, compared to the prior period Employee Benefit Expenses (HK$ thousand) | Indicator | 2025 Half-Year | 2024 Half-Year | | :--- | :--- | :--- | | Salaries and Allowances | 36,762 | 34,258 | | Pension Costs – Defined Contribution Plans | 1,575 | 1,467 | | Total Employee Benefit Expenses | 38,337 | 35,725 | | Less: Capitalized Amount | (363) | (365) | | **Total** | **37,974** | **35,360** | [5. Profit Before Income Tax](index=15&type=section&id=5.%20Profit%20Before%20Income%20Tax) For the six months ended June 30, 2025, total depreciation and amortization significantly increased, while short-term lease-related expenses substantially decreased Items Deducted from Profit Before Tax (HK$ thousand) | Indicator | 2025 Half-Year | 2024 Half-Year | | :--- | :--- | :--- | | Depreciation of Property, Plant and Equipment | 214 | 231 | | Depreciation of Right-of-Use Assets | 1,144 | 140 | | Amortization of Intangible Assets | 404 | 468 | | **Total Depreciation and Amortization** | **1,762** | **839** | | Short-term Lease Related Expenses | 100 | 1,218 | | Research and Development Costs | 404 | 468 | [6. Income Tax Expense](index=15&type=section&id=6.%20Income%20Tax%20Expense) For the six months ended June 30, 2025, the company incurred no income tax expense, unlike the prior period which had current income tax expense Income Tax Expense (HK$ thousand) | Indicator | 2025 Half-Year | 2024 Half-Year | | :--- | :--- | :--- | | Current Income Tax | – | 177 | | Deferred Income Tax | – | – | | **Total** | **–** | **177** | - Hong Kong Profits Tax is provided at a rate of **16.5%**, with **no significant timing differences** in the first half of 2025, hence no deferred tax provision[23](index=23&type=chunk)[25](index=25&type=chunk) [7. Interim Dividend](index=16&type=section&id=7.%20Interim%20Dividend) The Board does not recommend paying any interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Board does **not recommend the payment of any interim dividend** for the six months ended June 30, 2025 (2024: nil)[26](index=26&type=chunk) [8. Earnings Per Share](index=16&type=section&id=8.%20Earnings%20Per%20Share) Basic and diluted earnings per share for the six months ended June 30, 2025, were 0.33 HK cents, a significant decrease from 0.96 HK cents in the prior period, primarily due to reduced profit attributable to owners Earnings Per Share (HK cents) | Indicator | 2025 Half-Year | 2024 Half-Year | | :--- | :--- | :--- | | Basic and Diluted Earnings Per Share | 0.33 | 0.96 | - The decrease in earnings per share is primarily due to the **reduction in profit attributable to owners of the company from HK$2,825,000 to HK$976,000**, while the weighted average number of ordinary shares outstanding remained unchanged[27](index=27&type=chunk) [9. Financial Assets at Fair Value Through Profit or Loss](index=16&type=section&id=9.%20Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of June 30, 2025, the company held no unlisted equity investments measured at fair value through profit or loss Financial Assets at Fair Value Through Profit or Loss (HK$ thousand) | Investment Description | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Unlisted Equity Investments | – | – | [10. Trade and Other Receivables](index=17&type=section&id=10.%20Trade%20and%20Other%20Receivables) As of June 30, 2025, net trade receivables increased, while other receivables, deposits, and prepayments significantly decreased, with a notable portion of trade receivables over 90 days Trade and Other Receivables (HK$ thousand) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade Receivables – Net | 12,369 | 8,354 | | Other Receivables, Deposits and Prepayments – Net | 6,667 | 12,706 | | **Total** | **19,036** | **21,060** | - The Group's average credit period for sales is **30 days**[30](index=30&type=chunk) Ageing Analysis of Trade Receivables (HK$ thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 0 to 30 days | 10,357 | 5,609 | | 31 to 60 days | 687 | 1,539 | | 61 to 90 days | 1,401 | 666 | | Over 90 days | 10,677 | 11,261 | | **Total** | **23,122** | **19,075** | [11. Cash and Cash Equivalents](index=18&type=section&id=11.%20Cash%20and%20Cash%20Equivalents) Cash and cash equivalents primarily consist of bank and cash balances held with reputable banks, earning interest at floating rates - Bank balances earn interest at **floating rates** based on daily bank deposit rates[31](index=31&type=chunk) - Cash and cash equivalents comprise **bank and cash balances** held with reputable banks that have no recent history of default[31](index=31&type=chunk) [12. Trade and Other Payables](index=18&type=section&id=12.%20Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables decreased compared to December 31, 2024 Trade and Other Payables (HK$ thousand) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade Payables | – | – | | Other Payables and Accruals | 10,767 | 14,480 | | **Total** | **10,767** | **14,480** | [13. Share Capital](index=19&type=section&id=13.%20Share%20Capital) As of June 30, 2025, the company's authorized and issued and fully paid share capital remained unchanged Share Capital Structure (HK$ thousand) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Authorized Share Capital (Number of Ordinary Shares) | 5,000,000,000 | 5,000,000,000 | | Authorized Share Capital (HK$ thousand) | 50,000 | 50,000 | | Issued and Fully Paid Share Capital (Number of Ordinary Shares) | 295,625,000 | 295,625,000 | | Issued and Fully Paid Share Capital (HK$ thousand) | 2,956 | 2,956 | [14. Related Party Transactions](index=19&type=section&id=14.%20Related%20Party%20Transactions) For the six months ended June 30, 2025, there were no related party transactions for property lease expenses, but key management personnel compensation increased Related Party Transactions (HK$ thousand) | Related Party Name | Nature of Transaction | 2025 Half-Year | 2024 Half-Year | | :--- | :--- | :--- | :--- | | Star Yue Development Limited | Property Lease Expenses | – | 436 | | Fook Wu Investment Limited | Property Lease Expenses | – | 61 | Key Management Personnel Compensation (HK$ thousand) | Indicator | 2025 Half-Year | 2024 Half-Year | | :--- | :--- | :--- | | Salaries and Short-term Employee Benefits | 305 | 240 | | Post-employment Benefits | 3 | 3 | | **Total** | **308** | **243** | [15. Contingent Liabilities](index=20&type=section&id=15.%20Contingent%20Liabilities) As of June 30, 2025, the Group had no contingent liabilities - As of June 30, 2025, the Group had **no contingent liabilities**[39](index=39&type=chunk) [16. Approval of Unaudited Condensed Consolidated Interim Financial Information](index=20&type=section&id=16.%20Approval%20of%20Unaudited%20Condensed%20Consolidated%20Interim%20Financial%20Information) The unaudited condensed consolidated interim financial information was approved by the Board of Directors on August 7, 2025 - The unaudited condensed consolidated interim financial information was **approved by the Board of Directors on August 7, 2025**[40](index=40&type=chunk) [Management Discussion and Analysis](index=21&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the Group's business operations, financial performance, and future outlook, including strategic initiatives and challenges [Business Review and Prospects](index=21&type=section&id=Business%20Review%20and%20Prospects) The Group provides multimedia customer contact services and system solutions, facing challenges from rising labor costs and macroeconomic uncertainties, while actively integrating AI technology - The Group is primarily engaged in the business of providing **comprehensive multimedia customer contact centre services and system solutions**[42](index=42&type=chunk) - While the Hong Kong economy shows robust growth, **ongoing geopolitical tensions and unpredictable international trade policies challenge macroeconomic conditions**[42](index=42&type=chunk) - The local labor market faces challenges in recruiting customer contact centre staff, leading to **increased wages and initial recruitment costs**, impacting profit margins[42](index=42&type=chunk) - Management has placed **greater emphasis on talent retention programs** aimed at retaining experienced employees to help reduce employment costs[42](index=42&type=chunk) - The Group is collaborating closely with several local AI companies to **integrate AI technology into customer contact centre systems and services** to achieve fully automated customer service and enhance operational efficiency and productivity[43](index=43&type=chunk) - Management holds a **cautiously optimistic outlook** for the Group's financial performance in 2025, expecting innovative developments, particularly AI integration, to bring new momentum to the business[44](index=44&type=chunk) [Interests in an Associate](index=22&type=section&id=Interests%20in%20an%20Associate) The Group holds approximately 40% equity in Yuanzheng Group Limited, an associate providing asset tokenization consulting services, with a carrying value of approximately HK$203,000 - The Group holds **1,000,000 shares in Yuanzheng Group Limited**, representing approximately **40% of its issued share capital**, with a carrying value of approximately **HK$203,000**[45](index=45&type=chunk)[46](index=46&type=chunk) - Yuanzheng Group Limited is an unlisted company that provides **consulting services in asset tokenization** through professional process management services[45](index=45&type=chunk) [Financial Assets at Fair Value Through Profit or Loss](index=22&type=section&id=Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss%20%28Business%20Review%29) The Group holds an 18% equity interest in Cloudgo Limited, which had no carrying value as of June 30, 2025, reflecting impairment losses recognized in 2020 - The Group acquired a total of **2,470 shares in Cloudgo Limited in 2019**, representing approximately **18% of its total issued share capital**[47](index=47&type=chunk) - As of June 30, 2025, the Group's shares in Cloudgo had **no carrying value**, reflecting the **impairment loss on FAFVTPL investments recognized in 2020**[47](index=47&type=chunk) [Use of Proceeds from Issue of Convertible Bonds under General Mandate](index=23&type=section&id=Use%20of%20Proceeds%20from%20Issue%20of%20Convertible%20Bonds%20under%20General%20Mandate) As of June 30, 2025, the Group had fully utilized the net proceeds from convertible bonds for expanding financial services and general working capital Use of Net Proceeds from Convertible Bonds (HK$ thousand) | Purpose | Intended Use | Actual Use as of June 30, 2025 | Unutilized Balance as of June 30, 2025 | | :--- | :--- | :--- | :--- | | Expansion of Financial Services Business | 6,200 | 6,200 | – | | General Working Capital | 5,017 | 5,017 | – | | **Total** | **11,217** | **11,217** | **–** | - As of June 30, 2025, the Group had **fully utilized the unutilized net proceeds** according to the allocation method stated in the announcement[49](index=49&type=chunk) [Financial Review](index=23&type=section&id=Financial%20Review) The Group's total revenue slightly decreased in the first half of 2025, with a significant contraction in gross profit margin and a substantial reduction in profit attributable to owners 2025 Half-Year Financial Review Key Data (HK$) | Indicator | 2025 Half-Year (HK$) | 2024 Half-Year (HK$) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Unaudited Total Revenue | 42,600,000 | 42,800,000 | -0.5% | | Gross Profit Margin | 11.9% | 24.2% | -12.3 percentage points | | Profit Attributable to Owners of the Company | 1,000,000 | 2,800,000 | -64.3% | [Revenue and Segment Results](index=24&type=section&id=Revenue%20and%20Segment%20Results) Segment performance varied, with outsourced inbound and equipment management services declining, while manpower placement and other services (Weisi-related) showed growth [Outsourced Inbound Customer Contact Services](index=24&type=section&id=Outsourced%20Inbound%20Customer%20Contact%20Services) Revenue and segment results for outsourced inbound customer contact services decreased, with a narrower gross profit margin, primarily due to fewer customer sales orders Performance of Outsourced Inbound Customer Contact Services (HK$ thousand) | Indicator | 2025 Half-Year | 2024 Half-Year | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 6,500 | 8,400 | -22.6% | | Segment Results | 500 | 800 | -37.5% | | Gross Profit Margin | 8.1% | 9.8% | -1.7 percentage points | - The decrease in revenue was primarily due to a **reduction in customer sales orders** during the period[52](index=52&type=chunk) [Manpower Placement Services](index=24&type=section&id=Manpower%20Placement%20Services) Manpower placement services saw growth in both revenue and segment results, with a significantly improved gross profit margin, driven by increased customer demand and reduced expected credit losses Performance of Manpower Placement Services (HK$ thousand) | Indicator | 2025 Half-Year | 2024 Half-Year | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 28,600 | 26,800 | +6.7% | | Segment Results | 2,800 | 1,500 | +86.7% | | Gross Profit Margin | 9.9% | 5.6% | +4.3 percentage points | - The increase in revenue was primarily due to **growing customer demand for manpower placement services** during the period[53](index=53&type=chunk) - The rise in gross profit margin was mainly attributable to a **reduction in expected credit losses**[53](index=53&type=chunk) [Customer Contact Centre Equipment Management Services](index=25&type=section&id=Customer%20Contact%20Centre%20Equipment%20Management%20Services) Revenue and segment results for customer contact centre equipment management services significantly declined, with a narrower gross profit margin, mainly due to reduced customer service demand Performance of Customer Contact Centre Equipment Management Services (HK$ thousand) | Indicator | 2025 Half-Year | 2024 Half-Year | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,500 | 3,300 | -53.4% | | Segment Results | 300 | 900 | -66.7% | | Gross Profit Margin | 18% | 26% | -8 percentage points | - The decrease in revenue was primarily due to **reduced customer demand for services**[55](index=55&type=chunk) [Others](index=25&type=section&id=Others) The "Others" segment, primarily Weisi-related customer contact centre system services, experienced growth in both revenue and gross profit, reflecting increased market demand Performance of Other Segment (Weisi-related Services) (HK$ thousand) | Indicator | 2025 Half-Year | 2024 Half-Year | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 6,000 | 4,300 | +39.5% | | Gross Profit | 1,500 | 1,000 | +50.0% | - The increase in gross profit was primarily due to **increased demand for Weisi-related other services**[56](index=56&type=chunk) [Other Income](index=25&type=section&id=Other%20Income) Other income significantly decreased, primarily due to a reduction in the reversal of expected credit loss allowance for financial assets Other Income (HK$) | Indicator | 2025 Half-Year | 2024 Half-Year | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Other Income | 1,600,000 | 6,900,000 | -76.8% | - The significant decrease in other income was due to a **reduction in the reversal of expected credit loss allowance for financial assets**[57](index=57&type=chunk) [Other Operating Expenses](index=26&type=section&id=Other%20Operating%20Expenses) Other operating expenses include expected credit losses, auditor's remuneration, insurance, legal and professional fees, short-term lease expenses, and various administrative costs - Other operating expenses primarily include **expected credit losses, auditor's remuneration, insurance, legal and professional expenses, expenses related to short-term leases and rates, repairs and maintenance, subcontracting expenses, telephone expenses, travel, entertainment, and utilities expenses**[58](index=58&type=chunk) [Profit Attributable to Owners of the Company](index=26&type=section&id=Profit%20Attributable%20to%20Owners%20of%20the%20Company) Profit attributable to owners of the company significantly decreased, mainly due to a reduction in the reversal of expected credit loss allowance for financial assets Profit Attributable to Owners of the Company (HK$) | Indicator | 2025 Half-Year | 2024 Half-Year | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Profit Attributable to Owners of the Company | 1,000,000 | 2,800,000 | -64.3% | - The decrease in profit was primarily due to a **reduction in the reversal of expected credit loss allowance for financial assets**[59](index=59&type=chunk) [Corporate Governance and Other Information](index=26&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section details the company's adherence to corporate governance standards, directors' conduct, shareholdings, and other relevant disclosures [Corporate Governance](index=26&type=section&id=Corporate%20Governance) The company complied with all code provisions of the Corporate Governance Code in Appendix C1 of the GEM Listing Rules throughout the reporting period - For the entire period of the six months ended June 30, 2025, the company has **complied with all code provisions** set out in the Corporate Governance Code in Appendix C1 of the GEM Listing Rules[60](index=60&type=chunk) [Code of Conduct for Securities Transactions by Directors](index=26&type=section&id=Code%20of%20Conduct%20for%20Securities%20Transactions%20by%20Directors) The company adopted a code of conduct for directors' securities transactions, no less exacting than GEM Listing Rules, and all directors confirmed compliance - The company has adopted a **code of conduct for securities transactions by directors** on terms no less exacting than the required standard of dealings set out in Rules 5.48 to 5.67 of the GEM Listing Rules[61](index=61&type=chunk) - Following enquiry, all directors and former directors confirmed that they have **complied with the required standard of dealings** for securities transactions for the six months ended June 30, 2025[61](index=61&type=chunk) [Directors' Rights to Acquire Shares](index=27&type=section&id=Directors%27%20Rights%20to%20Acquire%20Shares) Except for the share option scheme, neither the company nor its associated corporations engaged in arrangements allowing directors to acquire shares or debentures during the period - Save for the share option scheme, at no time during the six months ended June 30, 2025, was the company or any of its associated corporations a party to any arrangement to enable the directors to **acquire benefits by means of the acquisition of shares or debentures** of the company or any other body corporate[62](index=62&type=chunk) [Share Option Scheme](index=27&type=section&id=Share%20Option%20Scheme) For the six months ended June 30, 2025, no share options were granted, exercised, lapsed, or cancelled under the 2021 share option scheme - For the six months ended June 30, 2025, **no share options were granted, exercised, lapsed, or cancelled** under the share option scheme conditionally adopted by the shareholders of the company on May 4, 2021, and which became unconditional on May 6, 2021[63](index=63&type=chunk) [Directors' Interests in Competing Business](index=27&type=section&id=Directors%27%20Interests%20in%20Competing%20Business) To the best of the directors' knowledge, no director or substantial shareholder had any interest in businesses competing with the Group or any other conflicts of interest during the reporting period - To the best knowledge of the directors, for the six months ended June 30, 2025, **no director or substantial shareholder/controlling shareholder of the company had any interest in a business that competes or is likely to compete with the Group's business**, nor any other conflicts of interest with the Group[64](index=64&type=chunk) [Directors' and Chief Executive's Interests and/or Short Positions in Shares, Underlying Shares and Debentures of the Company and/or its Associated Corporations](index=28&type=section&id=Directors%27%20and%20Chief%20Executive%27s%20Interests%20and%2For%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20and%2For%20its%20Associated%20Corporations) As of June 30, 2025, Executive Director and CEO Mr. Tang Yiu Sing held a 71.04% interest in the company's shares through Man Shing Ta Enterprises Limited, as part of the late Mr. Tang Shing Bor's will Directors' and Chief Executive's Long Positions in Shares of the Company | Name of Director/Chief Executive | Capacity | Nature of Interest | Number of Shares/Underlying Shares Held | Percentage of the Company's Issued Share Capital | | :--- | :--- | :--- | :--- | :--- | | Tang Yiu Sing | Executor or Administrator of the Will of the late Mr. Tang Shing Bor | Corporate Interest | 210,000,000 | 71.04% | - These interests are held by **Man Shing Ta Enterprises Limited** and form part of the **will of the late Mr. Tang Shing Bor**[65](index=65&type=chunk) [Substantial Shareholders' Interests and/or Short Positions in Shares and/or Underlying Shares of the Company](index=29&type=section&id=Substantial%20Shareholders%27%20Interests%20and%2For%20Short%20Positions%20in%20Shares%20and%2For%20Underlying%20Shares%20of%20the%20Company) As of June 30, 2025, Mr. Tang Yiu Sing, as co-executor of the late Mr. Tang Shing Bor's will, held a 71.04% interest in the company's shares through Man Shing Ta Enterprises Limited Substantial Shareholders' Long Positions in Shares of the Company | Name of Director/Chief Executive | Capacity | Nature of Interest | Number of Shares/Underlying Shares Held | Percentage of the Company's Issued Share Capital | | :--- | :--- | :--- | :--- | :--- | | Tang Yiu Sing | Co-executor of the Will of the late Mr. Tang Shing Bor | Corporate Interest | 210,000,000 | 71.04% | - These interests are held by **Man Shing Ta Enterprises Limited** and form part of the **will of the late Mr. Tang Shing Bor**[67](index=67&type=chunk) [Audit Committee](index=30&type=section&id=Audit%20Committee) The Audit Committee reviewed the Group's unaudited interim results for the six months ended June 30, 2025, confirming compliance with accounting principles and disclosure requirements - The Audit Committee has **reviewed the Group's unaudited interim results** for the six months ended June 30, 2025[69](index=69&type=chunk) - The Committee is of the opinion that the Group's accounting policies are in **compliance with Hong Kong Financial Reporting Standards, the Stock Exchange's requirements, and legal provisions**, and that **adequate disclosures have been made**[69](index=69&type=chunk) [Pre-emptive Rights](index=30&type=section&id=Pre-emptive%20Rights) Neither the company's articles of association nor Cayman Islands law contains pre-emptive rights provisions requiring pro-rata new share offerings to existing shareholders - There are **no pre-emptive rights provisions** in the company's articles of association or the laws of the Cayman Islands that would require the company to offer new shares pro-rata to existing shareholders[70](index=70&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=30&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) For the six months ended June 30, 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any of its listed securities - For the six months ended June 30, 2025, the company **did not redeem any of its listed securities**, and neither the company nor any of its subsidiaries **purchased or sold any of the company's listed securities**[71](index=71&type=chunk) [By Order of the Board](index=30&type=section&id=By%20Order%20of%20the%20Board) This report was approved by the Board of Directors on August 7, 2025, and signed by Executive Director and CEO Mr. Tang Yiu Sing - This report was **signed and issued by Mr. Tang Yiu Sing, Executive Director and Chief Executive Officer, on behalf of the Board of Directors on August 7, 2025**[71](index=71&type=chunk) - This report has been **published on the Stock Exchange's website** (www.hkexnews.hk) and the **company's website** (www.etsgroup.com.hk)[71](index=71&type=chunk)

[Company Information](index=3&type=section&id=Company%20Information) This section provides essential corporate details, including the composition of the Board of Directors, key committees, and registration and operational information [Board of Directors and Committees](index=3&type=section&id=Board%20of%20Directors%20and%20Committees) The company's Board of Directors comprises executive and independent non-executive directors, with established audit, remuneration, nomination, and risk management committees to ensure robust corporate governance - Board members include executive directors Yin Yanbin (Chairman and CEO), Zhuang Zhaohui, Chen Zhaohui, Zhou Chunian, Chen Hua, Diao Cheng, and independent non-executive directors Sun Hongbin, Wang Guangji, Zheng Qing[3](index=3&type=chunk) - The company has an Audit Committee (Chairperson: Zheng Qing), Remuneration Committee (Chairperson: Zheng Qing), Nomination Committee (Chairperson: Yin Yanbin), and Risk Management Committee (Chairperson: Chen Zhaohui)[3](index=3&type=chunk) [Registration and Operational Information](index=3&type=section&id=Registration%20and%20Operational%20Information) The company is registered in the Cayman Islands, with primary operating locations in Nanjing, China, and Hong Kong, detailing key information such as share registrars, legal advisors, principal bankers, and auditors - The company's registered office is in the Cayman Islands, with its principal place of business in the People's Republic of China in Nanjing and its principal place of business in Hong Kong in Causeway Bay[3](index=3&type=chunk) - The Hong Kong share registrar is Tricor Investor Services Limited, and the auditor is ZHONGHUI ANDA CPA Limited[4](index=4&type=chunk) - The company's website is www.goldenhighway.com, and its stock code is 9933[4](index=4&type=chunk) [Management Discussion and Analysis](index=5&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a comprehensive review of the Group's business operations, financial performance, future outlook, and risk management strategies for the reporting period [Business Overview](index=5&type=section&id=Business%20Overview) The Group is a supplier of application chemical intermediates in the integrated chemical services market, operating seven main business segments including methylamine, new materials, advanced intermediates, green products, health products, iodine derivatives, and selected products - The Group is principally engaged in the manufacture and sale of chemical products and the sale of chemical products manufactured by third-party manufacturers, with operations across mainland China, Southeast Asia, Europe, and the United States[6](index=6&type=chunk) - The company has seven main business segments: methylamine industry series, Golden Highway new materials, advanced materials intermediates series, green products, health products, iodine derivatives series and related products, and Gegexiang Selection[6](index=6&type=chunk) - The Golden Highway New Materials segment has regrouped all trading products and application chemical series products, and the Health Products segment has been renamed from the Pharmaceutical Intermediates and APIs segment[6](index=6&type=chunk) [Methylamine Industry Series](index=5&type=section&id=Methylamine%20Industry%20Series) This segment primarily produces animal nutrition chemicals like choline chloride and betaine, essential feed additives for poultry and livestock, crucial for the downstream animal husbandry industry - Choline chloride is used to accelerate animal growth and can also serve as a clay stabilizer in oil and gas drilling and hydraulic fracturing[7](index=7&type=chunk) - Betaine can be used as a dietary attractant to improve growth and survival rates in fish, poultry, pigs, and other animals[7](index=7&type=chunk) [Golden Highway New Materials](index=5&type=section&id=Golden%20Highway%20New%20Materials) This segment focuses on trading fine chemicals, polyurethane materials, and self-produced polyether polyol products, widely used in dye synthesis, cosmetics, building materials, and automotive components - Fine chemicals include carboxylic acids, resins, and oleochemicals, primarily procured from third parties for resale[7](index=7&type=chunk) - Polyurethane materials (e.g., polymeric MDI and TDI) are widely used in the manufacturing of insulation materials, building materials, adhesives, sponges, and automotive components[7](index=7&type=chunk) - In 2024, the sales structure of polyether polyol products shifted from rigid foam insulation to the flexible foam automotive interior parts industry[7](index=7&type=chunk) [Advanced Materials Intermediates Series](index=5&type=section&id=Advanced%20Materials%20Intermediates%20Series) This segment mainly includes self-produced isooctanoic acid and diethyl sulfate, with isooctanoic acid holding a significant market share in mainland China, applied in paint driers, PVC stabilizers, catalysts, and pharmaceutical raw materials - Isooctanoic acid holds a significant market share in mainland China, used in key applications such as paint driers, polyvinyl chloride (PVC) liquid stabilizers, catalysts, and pharmaceutical raw materials[8](index=8&type=chunk) [Green Products](index=6&type=section&id=Green%20Products) The Group expands its green products segment, primarily producing cardanol products extracted from cashew nutshell liquid, widely used in coatings, resins, and pharmaceuticals, manufactured at its Vietnam plant - The Green Products segment primarily produces cardanol products to address downstream customers' increasing focus on environmental protection and sustainable development[9](index=9&type=chunk) - Cardanol is a natural bio-based raw material extracted from cashew nutshell liquid, widely used in coatings, resins, and pharmaceuticals[9](index=9&type=chunk) - The Group produces cardanol products at its manufacturing facility in Vietnam[9](index=9&type=chunk) [Health Products](index=6&type=section&id=Health%20Products) The health products segment primarily sells pharmaceutical products such as Cefpodoxime Proxetil Dispersible Tablets and other pharmaceutical intermediates, with plans to develop a moxifloxacin hydrochloride side chain production line by the end of 2025 - The Group sells pharmaceutical products such as Cefpodoxime Proxetil Dispersible Tablets and other pharmaceutical intermediates[9](index=9&type=chunk) - A moxifloxacin hydrochloride side chain production line is under development and is expected to be operational by the end of 2025[9](index=9&type=chunk) [Iodine Derivatives Series and Related Products](index=6&type=section&id=Iodine%20Derivatives%20Series%20and%20Related%20Products) This segment primarily offers organic and inorganic iodine derivatives and iodine products - The Iodine Derivatives Series and Related Products segment primarily consists of organic and inorganic iodine derivatives and iodine[10](index=10&type=chunk) [Gegexiang Selection](index=6&type=section&id=Gegexiang%20Selection) As a new business segment, Gegexiang Selection primarily sells nutritional products sourced from third parties and promotes its brand and market development through marketing activities such as organizing sports events - The Gegexiang Selection segment primarily sells nutritional products, such as vitamin tablets, procured from third parties[10](index=10&type=chunk) - In 2024, the Group organized sports events to effectively promote its product brand and develop the sales market for supplements and related products[10](index=10&type=chunk) [Business Review](index=6&type=section&id=Business%20Review) In the first half of 2025, the Chinese chemical industry faced challenges including weak demand, supply-demand imbalance, and declining profit margins, yet the Group achieved resilient growth through technological innovation, supply chain management, and market segmentation, actively expanding global markets - In the first half of 2025, the Chinese chemical industry faced challenges such as weak demand, supply-demand imbalance, and declining profit margins, with falling raw material prices leading to widespread price reductions in chemical products[11](index=11&type=chunk) - The Group strengthened its core competitiveness and achieved resilient growth by leveraging technological innovation and integrated supply chain management, optimizing its product portfolio[11](index=11&type=chunk) - The Group utilized its technological expertise and brand strength to penetrate and cultivate international markets, accelerating global expansion through strategic investments and partnerships, and optimizing its global supply chain[12](index=12&type=chunk) 2025 H1 Financial Performance | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | YoY Change | Primarily Attributable to | | :--- | :--- | :--- | :--- | :--- | | Revenue | 1,856.7 | 1,790.2 | +3.7% | Increased revenue from green products, iodine derivatives series and related products | | Profit for the Period | 7.9 | 4.4 | +77.1% | Increase in net exchange gains and additional VAT credit refund policy, partially offset by a decrease in gross profit | [Financial Review](index=7&type=section&id=Financial%20Review) This section provides a detailed review of the Group's financial performance for the first half of 2025, including revenue, cost of sales, gross profit, various expenses, and profit for the period, analyzing contributions and changes across business segments and geographical regions [Revenue](index=7&type=section&id=Revenue) The Group's total revenue for the first half of 2025 was RMB 1,856.7 million, a year-on-year increase of 3.7%, with significant growth in iodine derivatives and green products segments, while methylamine and advanced materials intermediates saw declines Total Revenue by Business Segment (RMB thousand) | Business Segment | 2025 | % of Total Revenue (2025) | 2024 | % of Total Revenue (2024) | | :--- | :--- | :--- | :--- | :--- | | Methylamine Industry Series | 600,981 | 32.4% | 617,525 | 34.5% | | Iodine Derivatives Series and Related Products | 588,339 | 31.7% | 440,302 | 24.6% | | Golden Highway New Materials | 399,090 | 21.5% | 399,570 | 22.3% | | Advanced Materials Intermediates Series | 132,537 | 7.1% | 218,071 | 12.2% | | Green Products | 111,485 | 6.0% | 94,706 | 5.3% | | Health Products | 15,001 | 0.8% | 13,321 | 0.7% | | Gegexiang Selection | 978 | 0.1% | — | 0.0% | | Subtotal | 1,848,411 | 99.6% | 1,783,495 | 99.6% | | Other | 8,301 | 0.4% | 6,699 | 0.4% | | **Total** | **1,856,712** | **100.0%** | **1,790,194** | **100.0%** | - Revenue from the Green Products segment increased by **17.7% to RMB 111.5 million**, primarily due to market recovery in Europe, increased exports and production capacity, and higher selling prices driven by rising raw material costs[17](index=17&type=chunk)[24](index=24&type=chunk) - Revenue from the Iodine Derivatives Series and Related Products segment increased by **33.6% to RMB 588.3 million**, mainly due to increased sales volume from expanded market share and penetration[17](index=17&type=chunk)[20](index=20&type=chunk) - Revenue from the Methylamine Industry Series decreased by **2.7% to RMB 601.0 million**, primarily due to intense competition in the methylamine market, new production capacity leading to lower sales volume, market prices, and profit margins[19](index=19&type=chunk) - Revenue from the Advanced Materials Intermediates Series decreased to **RMB 132.5 million**, mainly due to declining domestic demand and production halts caused by reactor facility malfunctions[23](index=23&type=chunk) Total Revenue by Geographical Location (RMB thousand) | Geographical Location | 2025 | % of Total Revenue (2025) | 2024 | % of Total Revenue (2024) | | :--- | :--- | :--- | :--- | :--- | | Mainland China | 1,418,926 | 76.4% | 1,411,161 | 78.8% | | Europe | 183,474 | 9.9% | 148,735 | 8.3% | | Vietnam | 85,828 | 4.6% | 77,264 | 4.3% | | Other Asian Countries | 95,906 | 5.2% | 101,916 | 5.7% | | Other | 72,578 | 3.9% | 51,118 | 2.9% | | **Total** | **1,856,712** | **100.0%** | **1,790,194** | **100.0%** | - Revenue from mainland China accounted for the majority of total revenue, but its proportion decreased from **78.8% to 76.4%**, while revenue from Europe, Vietnam, and other regions increased[27](index=27&type=chunk)[28](index=28&type=chunk) [Cost of Sales](index=11&type=section&id=Cost%20of%20Sales) Cost of sales, primarily composed of raw materials and inventory costs, increased to RMB 1,686.2 million in the first half of 2025, mainly due to higher production costs for iodine and iodine derivatives - Cost of sales increased from approximately **RMB 1,595.7 million** in the first half of 2024 to approximately **RMB 1,686.2 million** in the first half of 2025[30](index=30&type=chunk) - The increase in cost of sales was primarily due to higher production costs for iodine and iodine derivatives, partially offset by reduced raw material costs for methylamine, isooctanoic acid, and diethyl sulfate[30](index=30&type=chunk) [Gross Profit and Gross Margin](index=11&type=section&id=Gross%20Profit%20and%20Gross%20Margin) The Group's gross profit decreased to RMB 170.5 million in the first half of 2025, with the overall gross margin falling from 10.9% to 9.2%, primarily impacted by lower gross profit in advanced materials intermediates, green products, and iodine derivatives segments Total Gross Profit and Gross Margin by Business Segment (RMB thousand) | Business Segment | 2025 Gross Profit | 2025 Gross Margin % | 2024 Gross Profit | 2024 Gross Margin % | | :--- | :--- | :--- | :--- | :--- | | Methylamine Industry Series | 93,800 | 15.6% | 83,328 | 13.5% | | Iodine Derivatives Series and Related Products | 27,020 | 4.6% | 36,873 | 8.4% | | Golden Highway New Materials | 26,639 | 6.7% | 31,519 | 7.9% | | Advanced Materials Intermediates Series | 4,294 | 3.2% | 21,318 | 9.8% | | Green Products | 12,803 | 11.5% | 17,568 | 18.6% | | Health Products | 4,299 | 28.7% | 3,219 | 24.2% | | Gegexiang Selection | 480 | 49.1% | 6 | 730.6% | | Other | 1,128 | 13.6% | 669 | 10.0% | | **Total** | **170,463** | **9.2%** | **194,500** | **10.9%** | - Overall gross profit decreased from **RMB 194.5 million to RMB 170.5 million**, and the overall gross margin decreased from **10.9% to 9.2%**[31](index=31&type=chunk) - The decrease in gross profit and gross margin was primarily due to the Advanced Materials Intermediates Series segment (declining domestic demand, new production capacity, and production interruptions) and the Green Products and Iodine Derivatives Series and Related Products segments (rapid increase in raw material costs exceeding market price growth)[32](index=32&type=chunk) [Other Income](index=12&type=section&id=Other%20Income) Other income significantly increased to RMB 12.3 million, primarily benefiting from additional value-added tax credit policies and increased government grants - Other income increased from approximately **RMB 2.7 million** in the first half of 2024 to approximately **RMB 12.3 million** in the first half of 2025[33](index=33&type=chunk) - The increase was mainly due to income of approximately **RMB 7.5 million** from additional value-added tax credit policies, and an increase in other government grants from approximately **RMB 1.4 million to RMB 2.6 million**[33](index=33&type=chunk) [Other Gains and Losses](index=12&type=section&id=Other%20Gains%20and%20Losses) The Group recorded a net other gain of approximately RMB 8.9 million, a turnaround from a net other loss in the prior period, mainly due to exchange gains from the appreciation of the Russian Ruble and Mexican Peso against the RMB - The Group recorded a net other gain of approximately **RMB 8.9 million** in the first half of 2025, compared to a net other loss of approximately **RMB 0.2 million** in the first half of 2024[34](index=34&type=chunk) - The increase in gain was primarily due to an increase in net exchange gains of approximately **RMB 9.5 million** as various currencies (such as the Russian Ruble and Mexican Peso) appreciated against the RMB during the period[34](index=34&type=chunk) [Selling and Distribution Expenses](index=12&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses slightly decreased to RMB 72.3 million, mainly due to reduced logistics costs resulting from lower sales volumes of certain products like methylamine and ethylene glycol - Selling and distribution expenses slightly decreased from approximately **RMB 75.8 million** in the first half of 2024 to approximately **RMB 72.3 million** in the first half of 2025[35](index=35&type=chunk) - The decrease was mainly due to a slight reduction in logistics costs (including transportation, port charges, and shipping costs) as a result of decreased sales volume for certain products[35](index=35&type=chunk) [Administrative Expenses](index=12&type=section&id=Administrative%20Expenses) Administrative expenses slightly decreased to RMB 65.5 million, primarily due to reduced expenses related to the Macau MMA competition last year, partially offset by increased staff costs for new employees in Singapore and share-based payment expenses - Administrative expenses slightly decreased from approximately **RMB 65.8 million** in the first half of 2024 to approximately **RMB 65.5 million** in the first half of 2025[36](index=36&type=chunk) - The decrease was mainly due to a reduction in consulting fees of approximately **RMB 2.6 million** related to the Macau MMA competition last year[36](index=36&type=chunk) - This decrease was partially offset by an increase in staff costs arising from new employees in Singapore and share-based payment expenses[36](index=36&type=chunk) [Research and Development Expenses](index=13&type=section&id=Research%20and%20Development%20Expenses) Research and development expenses decreased to RMB 26.0 million, mainly due to the completion of certain production technology improvement projects last year, leading to lower raw material costs - Research and development expenses decreased from approximately **RMB 26.9 million** in the first half of 2024 to approximately **RMB 26.0 million** in the first half of 2025[38](index=38&type=chunk) - The decrease was mainly due to the completion of certain production technology improvement projects last year, leading to lower raw material costs[38](index=38&type=chunk) [Finance Costs](index=13&type=section&id=Finance%20Costs) Finance costs remained stable at approximately RMB 19.6 million, with no significant fluctuations during the period - Finance costs changed from approximately **RMB 19.9 million** in the first half of 2024 to approximately **RMB 19.6 million** in the first half of 2025, with no significant fluctuations during the period[39](index=39&type=chunk) [Income Tax Expense](index=13&type=section&id=Income%20Tax%20Expense) Income tax expense increased to RMB 2.7 million, consistent with the rise in profit before tax, but the effective tax rate decreased from 35.8% to 25.8%, primarily due to the impact of under-provision for prior period income tax - Income tax expense increased from approximately **RMB 2.5 million** in the first half of 2024 to approximately **RMB 2.7 million** in the first half of 2025[40](index=40&type=chunk) - The effective tax rate for the first half of 2025 was approximately **25.8%** (2024: 35.8%), with the decrease attributable to the impact of under-provision for income tax expense in prior years recognized in the current period[40](index=40&type=chunk) [Profit for the Period](index=13&type=section&id=Profit%20for%20the%20Period) The Group's profit for the period increased to RMB 7.9 million in the first half of 2025, up from RMB 4.4 million in the prior period, reflecting the combined impact of the aforementioned financial fluctuations - Profit for the period was approximately **RMB 7.9 million** in the first half of 2025, compared to approximately **RMB 4.4 million** in the first half of 2024[41](index=41&type=chunk) [Outlook](index=14&type=section&id=Outlook) Looking ahead to the second half of 2025, cost pressures in the chemical industry are expected to ease, supply-demand balance to improve, and policies to focus on green environmental protection, while the Group will adhere to intelligent manufacturing, expand production capacity, and diversify markets for long-term sustainable growth - In the second half of 2025, falling prices of key raw materials such as crude oil and coal are expected to alleviate cost pressures, and the supply-demand balance in the chemical industry will improve[42](index=42&type=chunk) - Industry policies are anticipated to continue focusing on green environmental protection, further optimizing the supply-demand dynamics[42](index=42&type=chunk) - The Group will adhere to intelligent manufacturing, expand production capacity, and diversify regional markets through tiered customer cooperation and customized services, strengthening supply chain resilience[42](index=42&type=chunk) [Capital Structure, Liquidity and Financial Resources](index=14&type=section&id=Capital%20Structure%2C%20Liquidity%20and%20Financial%20Resources) The Group funds its working capital through internal resources and borrowings, with increases in total assets and bank balances and cash, while the gearing ratio rose to 146.6% due to increased borrowings - The Group manages its capital to ensure continuous operation and provides maximum returns to shareholders by optimizing the balance between debt and equity[43](index=43&type=chunk) Capital Structure and Liquidity | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 2,090.5 | 2,046.5 | Increase | | Bank Balances and Cash | 155.3 | 101.5 | Increase | | Total Borrowings | 926.8 | 852.2 | Increase | | Gearing Ratio | 146.6% | 137.1% | Increase | - Borrowings bear interest at fixed annual rates ranging from **2.6% to 7.2%** and are repayable between 2025 and 2050[45](index=45&type=chunk) [Key Risks and Uncertainties and Risk Management](index=15&type=section&id=Key%20Risks%20and%20Uncertainties%20and%20Risk%20Management) The Group faces market risks (currency risk, interest rate risk), credit risk, and liquidity risk, which management addresses through monitoring, credit limit setting, and regular assessments, without implementing foreign currency or interest rate hedging policies - The Group is primarily exposed to currency risk and interest rate risk, but its approach to managing and measuring these risks has not changed[47](index=47&type=chunk) - The Group currently has no foreign currency hedging policy, and management monitors foreign exchange risk and considers hedging when necessary[48](index=48&type=chunk) - The Group faces fair value interest rate risk on fixed-rate financial instruments and cash flow interest rate risk on variable-rate financial liabilities, with no interest rate hedging policy currently in place[49](index=49&type=chunk)[50](index=50&type=chunk) - Credit risk primarily arises from trade receivables, and management mitigates this risk by setting credit limits, approval, and follow-up procedures, and assessing impairment based on expected credit loss models[51](index=51&type=chunk) - Credit risk for bank balances and restricted bank deposits is limited as counterparties are banks with high credit ratings[52](index=52&type=chunk) - Liquidity risk is managed by monitoring and maintaining adequate levels of cash and cash equivalents[53](index=53&type=chunk) [Treasury Policy and Foreign Exchange Risk](index=17&type=section&id=Treasury%20Policy%20and%20Foreign%20Exchange%20Risk) The Group adopts a prudent treasury policy, continuously reviews customer creditworthiness to mitigate credit risk, and closely monitors its liquidity position, with foreign currency transactions primarily denominated in RMB and USD, but no financial instruments were undertaken to hedge foreign currency exposure during the period - The Group adopts a prudent treasury policy, maintains a sound liquidity position, and continuously conducts credit assessments of its customers[55](index=55&type=chunk) - The Group's foreign currency transactions are primarily denominated in RMB and USD, exposing it to currency risk, but no financial instruments were undertaken to hedge its foreign currency exposure during the period[56](index=56&type=chunk) [Capital Expenditure and Commitments](index=17&type=section&id=Capital%20Expenditure%20and%20Commitments) Capital expenditure for the interim period increased to RMB 70.1 million, primarily for the acquisition of property, plant, and equipment, with capital commitments of approximately RMB 10.9 million at period-end, mainly for purchasing machinery and equipment - Capital expenditure during the period, including additions to property, plant and equipment and construction in progress, amounted to approximately **RMB 70.1 million** (2024: RMB 55.4 million)[57](index=57&type=chunk) - As of June 30, 2025, the Group's capital commitments were approximately **RMB 10.9 million** (December 31, 2024: RMB 17.9 million), primarily for the purchase of machinery and equipment in mainland China[58](index=58&type=chunk) [Pledge of Assets and Contingent Liabilities](index=17&type=section&id=Pledge%20of%20Assets%20and%20Contingent%20Liabilities) The Group pledged restricted bank deposits, right-of-use assets, property, plant and equipment, bills receivable, cash and cash equivalents, inventories, and trade receivables as collateral for borrowings, with no significant contingent liabilities at period-end - As of June 30, 2025, the Group pledged various assets as collateral for borrowings, including restricted bank deposits (**RMB 30.4 million**), right-of-use assets (**RMB 62.9 million**), property, plant and equipment (**RMB 317.8 million**), etc[59](index=59&type=chunk) - As of June 30, 2025, the Group had no significant contingent liabilities[60](index=60&type=chunk) [Dividend Policy](index=17&type=section&id=Dividend%20Policy) The Board of Directors resolved not to recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board of Directors has resolved not to recommend the payment of any interim dividend for the six months ended June 30, 2025 (2024: nil)[61](index=61&type=chunk) [Employees and Remuneration Policy](index=18&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 1,093 employees, with total staff costs of approximately RMB 71.8 million, and remuneration is determined by market norms and individual performance, supported by share option and share award schemes - As of June 30, 2025, the Group had a total of **1,093 employees** (2024: 1,086 employees)[62](index=62&type=chunk) - Total staff costs (including directors' emoluments) for the six months ended June 30, 2025, amounted to approximately **RMB 71.8 million** (2024: RMB 67.9 million)[62](index=62&type=chunk) - Remuneration is determined with reference to market norms and employees' individual performance, qualifications, and experience, and the company has a share option scheme and a share award scheme[63](index=63&type=chunk)[64](index=64&type=chunk) [Material Investments and Acquisitions](index=18&type=section&id=Material%20Investments%20and%20Acquisitions) The Group held no material investments or capital assets during the interim period and plans to fund future acquisitions through internal resources and other fundraising activities, with no acquisitions or disposals of significant subsidiaries, associates, or joint ventures during the period - As of the six months ended June 30, 2025, the Group did not hold any material investments or capital assets[65](index=65&type=chunk) - The Group will fund future acquisitions through internally generated funds and other fundraising activities, including but not limited to the issuance of new debt or equity instruments[67](index=67&type=chunk) - The Group did not acquire or dispose of any of its significant subsidiaries, associates, or joint ventures for the six months ended June 30, 2025[68](index=68&type=chunk) [Events After Reporting Period](index=18&type=section&id=Events%20After%20Reporting%20Period) As of the report date, there have been no significant events subsequent to the six months ended June 30, 2025 - There have been no significant events subsequent to the six months ended June 30, 2025, up to the date of this report[69](index=69&type=chunk) [Other Information](index=19&type=section&id=Other%20Information) This section covers additional corporate governance practices, directors' interests, related party transactions, and details on share option and award schemes [Corporate Governance Practices](index=19&type=section&id=Corporate%20Governance%20Practices) The company has adopted the HKEX Corporate Governance Code and complied with all code provisions during the first half of 2025, except for the non-segregation of Chairman and CEO roles, with the Board committed to maintaining high standards of corporate governance - The company has adopted the Corporate Governance Code set out in Appendix C1 to the Listing Rules of the Stock Exchange[70](index=70&type=chunk) - For the six months ended June 30, 2025, the company has complied with all code provisions of the Corporate Governance Code, except for code provision C.2.1 (which states that the roles of chairman and chief executive should be separate)[70](index=70&type=chunk) [Chairman and Chief Executive Officer](index=19&type=section&id=Chairman%20and%20Chief%20Executive%20Officer) Mr. Yin Yanbin concurrently serves as both Chairman of the Board and Chief Executive Officer, an arrangement the Board believes provides strong and consistent leadership, which will be reviewed periodically - Mr. Yin Yanbin concurrently held the roles of Chairman of the Board and Chief Executive Officer of the company during the period, responsible for overseeing the Group's operations[71](index=71&type=chunk) - The Board believes that this arrangement provides strong and consistent leadership for the company and allows for more effective and efficient planning and implementation of business decisions and strategies[71](index=71&type=chunk) [Directors' Securities Transactions](index=19&type=section&id=Directors'%20Securities%20Transactions) The company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as its code of conduct for directors and employees trading company securities, with all directors confirming compliance during the period - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 to the Listing Rules as its own code of conduct[72](index=72&type=chunk) - Following specific inquiries made to all directors, each director has confirmed compliance with the required standards set out in the Model Code for the six months ended June 30, 2025[72](index=72&type=chunk) [Material Contracts and Competing Business Interests](index=19&type=section&id=Material%20Contracts%20and%20Competing%20Business%20Interests) Except for related party transactions, no director or their associated entity held a direct or indirect material interest in any contract significant to the Group's business, nor did any director have interests in businesses competing with the Group during the period - Save for related party transactions, no director or entity connected with a director had a direct or indirect material interest in any transaction, arrangement, or contract significant to the Group's business during or at the end of the six months ended June 30, 2025[73](index=73&type=chunk) - No director had any interest in any business that competes or is likely to compete with the Group's business[74](index=74&type=chunk) [Related Party Transactions](index=20&type=section&id=Related%20Party%20Transactions) The Group entered into loan agreements with Hanhe Industrial and Jinhan Tianxia, indirect subsidiaries of Mr. Yin Yanbin, each for RMB 100 million at an annual interest rate of 3.5%, which were reviewed by independent non-executive directors and exempted from Listing Rules disclosure requirements - On April 1, 2025, Nanjing Hanhe Industrial Co., Ltd., an indirect subsidiary of Mr. Yin, provided loan financing of **RMB 100 million** to the Group at an annual interest rate of **3.5%**[75](index=75&type=chunk) - As of June 30, 2025, the outstanding loan amount from Hanhe Industrial was approximately **RMB 26.85 million**[75](index=75&type=chunk) - On April 1, 2025, Nanjing Jinhan Tianxia Sports Culture Development Co., Ltd., an indirect subsidiary of Mr. Yin, provided a loan totaling **RMB 100 million** to the Group at an annual interest rate of **3.5%**[76](index=76&type=chunk) - As of June 30, 2025, the outstanding loan from Jinhan Tianxia was **RMB 56.2 million**[76](index=76&type=chunk) - The aforementioned major loan agreements were reviewed by the independent non-executive directors and were fully exempted from compliance with shareholder approval, annual review, and all disclosure requirements[77](index=77&type=chunk) [Management Contracts](index=21&type=section&id=Management%20Contracts) No contracts concerning the management and administration of the company's whole or any substantial part of its business were entered into or existed during the period - No contracts concerning the management and administration of the whole or any substantial part of the business of the company were entered into or existed during the period[79](index=79&type=chunk) [Directors' and Chief Executive's Interests in Shares](index=21&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20in%20Shares) As of June 30, 2025, Mr. Yin Yanbin held a 54.79% long position in shares through controlled corporations, with other executive directors also holding varying proportions of beneficial ownership Directors' and Chief Executive's Positions in Shares (Long Position) | Name | Capacity/Nature of Interest | Number of Shares Held | Approximate % of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Yin | Interest in controlled corporation | 553,141,500 | 54.79% | | Mr. Chen Zhaohui | Beneficial owner | 52,536,750 | 5.20% | | Mr. Zhuang Zhaohui | Beneficial owner | 31,509,000 | 3.12% | | Mr. Zhou Chunian | Beneficial owner | 12,323,250 | 1.22% | | Mr. Chen Hua | Beneficial owner | 8,215,500 | 0.81% | | Mr. Diao Cheng | Beneficial owner | 1,232,250 | 0.12% | - Mr. Yin is deemed to have an interest in **375,000,000 shares** held by Commonwealth B and **178,141,500 shares** held by Commonwealth Happy Elephant[80](index=80&type=chunk) [Directors' Rights to Acquire Shares or Debentures](index=21&type=section&id=Directors'%20Rights%20to%20Acquire%20Shares%20or%20Debentures) Except as disclosed, no rights to acquire shares or debentures of the company were granted to or exercised by directors, their spouses, or minor children during the period or up to the report date - Save as disclosed, at no time during the period or up to the date of this report were any rights granted to, or exercised by, the directors, their respective spouses, or minor children to acquire shares or debentures of the company, from which they might benefit[82](index=82&type=chunk) [Share Option Scheme](index=22&type=section&id=Share%20Option%20Scheme) The company adopted a share option scheme on December 16, 2019, to incentivize or reward selected participants, with no outstanding share options under the scheme as of June 30, 2025 - The company adopted a share option scheme on December 16, 2019, which became effective on January 21, 2020, to incentivize or reward selected participants for their contributions to the Group[83](index=83&type=chunk) - Eligible participants for the share option scheme include employees, non-executive directors, suppliers, customers, shareholders, and consultants of the Group[83](index=83&type=chunk) - As of June 30, 2025, no share options were granted, cancelled, lapsed, or forfeited under the share option scheme, and there were no outstanding share options[83](index=83&type=chunk) - As of the date of this report, the total number of shares available for issue under the share option scheme was **100,000,000 shares**, representing approximately **9.91%** of the total issued shares[84](index=84&type=chunk) [Share Award Scheme](index=22&type=section&id=Share%20Award%20Scheme) The company adopted a share award scheme on March 1, 2023, to recognize and reward contributions from eligible participants and provide incentives, with 904,000 share awards granted as of June 30, 2025, primarily to directors and employees - The company adopted a share award scheme on March 1, 2023, to recognize and reward contributions made by eligible participants and to provide incentives to retain and attract talent[85](index=85&type=chunk) - The vesting period for any award must be no less than **12 months** from the grant date[86](index=86&type=chunk) - As of June 30, 2025, the number of awards available for grant was **64,276,000 shares**, representing approximately **6.37%** of the total issued share capital[86](index=86&type=chunk) Number of Shares Under Share Awards (Outstanding as of June 30, 2025) | Grantee Name | Grant Date | Vesting Period | Outstanding as of Jan 1, 2025 | Granted During the Period | Outstanding as of June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | Mr. Zhuang Zhaohui | Jan 20, 2025 | One year | — | 36,000 | 36,000 | | Mr. Zhou Chunian | Jan 20, 2025 | One year | — | 20,000 | 20,000 | | Mr. Chen Hua | Jan 20, 2025 | One year | — | 12,000 | 12,000 | | Mr. Diao Cheng | Jan 20, 2025 | One year | — | 6,000 | 6,000 | | Connected Persons – Group A | Jan 20, 2025 | One year | — | 20,000 | 20,000 | | Connected Persons – Group B | Jan 20, 2025 | One year | — | 184,000 | 184,000 | | Connected Persons – Group B | Jan 20, 2025 | One year | — | 20,000 | 20,000 | | Employees | Jan 20, 2025 | One year | — | 337,500 | 337,500 | | Employees | Jan 21, 2025 | One year | — | 268,500 | 268,500 | | **Total** | | | **—** | **904,000** | **904,000** | - The fair value of the share awards is measured based on the market price of the company's shares on the grant date, with closing prices of **HKD 2.20 and HKD 2.24**, respectively[90](index=90&type=chunk) [Share-Linked Agreements](index=24&type=section&id=Share-Linked%20Agreements) During the period, other than the share option scheme, the company did not enter into any share-linked agreements, and no such agreements were in existence as of June 30, 2025 - During the period, save for the share option scheme, the company did not enter into any share-linked agreements, and as of June 30, 2025, no such agreements entered into by the company were in existence[92](index=92&type=chunk) [Major Shareholders' Interests in Shares](index=24&type=section&id=Major%20Shareholders'%20Interests%20in%20Shares) As of June 30, 2025, Commonwealth B, Commonwealth Yanbin, Commonwealth Happy Elephant, Commonwealth YYB, and Ms. Wu Hailing were major shareholders holding long positions in the company's shares Major Shareholders' Positions in Shares (Long Position) | Name/Designation | Capacity/Nature of Interest | Number of Shares Held | Approximate % of Shareholding | | :--- | :--- | :--- | :--- | | Commonwealth B | Beneficial owner | 375,000,000 | 37.15% | | Commonwealth Yanbin | Interest in controlled corporation | 375,000,000 | 37.15% | | Commonwealth Happy Elephant | Beneficial owner | 178,141,500 | 17.65% | | Commonwealth YYB | Interest in controlled corporation | 178,141,500 | 17.65% | | Ms. Wu | Spouse's interest | 553,141,500 | 54.79% | | Endless Reward Limited | Beneficial owner | 65,180,000 | 6.46% | | SP Global Trust Limited | Trustee of a trust | 65,180,000 | 6.46% | - Ms. Wu is the spouse of Mr. Yin and is deemed to have an interest in the shares in which Mr. Yin has an interest, pursuant to the Securities and Futures Ordinance[96](index=96&type=chunk) [Share Capital and Pre-emptive Rights](index=25&type=section&id=Share%20Capital%20and%20Pre-emptive%20Rights) As of June 30, 2025, the company's issued and fully paid share capital was 1,009,500,000 shares at HKD 0.01 each, with no pre-emptive rights provisions in the company's articles of association or Cayman Islands law Share Capital Changes (RMB thousand) | Indicator | Jan 1, 2025 and June 30, 2025 | Jan 1, 2024 and June 30, 2024 | | :--- | :--- | :--- | | Issued and fully paid share capital (Number of shares) | 1,009,500,000 | 1,000,000,000 | | Issued and fully paid share capital (RMB thousand) | 8,930 | 8,844 | - There are no provisions for pre-emptive rights in the company's articles of association, nor are there any restrictions on such rights under Cayman Islands law[100](index=100&type=chunk) [Dealings in Listed Securities and Interim Dividend](index=25&type=section&id=Dealings%20in%20Listed%20Securities%20and%20Interim%20Dividend) Except for the share award scheme, neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities during the period, and the Board resolved not to declare an interim dividend for the first half of 2025 - Save for the share award scheme, 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[101](index=101&type=chunk) - The Board has resolved not to recommend the payment of any interim dividend for the six months ended June 30, 2025[102](index=102&type=chunk) [Audit Committee and Review of Financial Statements](index=25&type=section&id=Audit%20Committee%20and%20Review%20of%20Financial%20Statements) The Audit Committee, composed of three independent non-executive directors, reviewed the Group's accounting principles, internal controls, risk management systems, and the unaudited condensed consolidated financial statements for the first half of 2025 - The Audit Committee comprises three independent non-executive directors: Ms. Zheng Qing (Chairperson), Mr. Sun Hongbin, and Mr. Wang Guangji[103](index=103&type=chunk) - The Audit Committee has reviewed the accounting principles and practices adopted by the Group and discussed matters relating to internal controls, risk management, and financial reporting, including the review of the unaudited condensed consolidated financial statements for the first half of 2025[103](index=103&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=26&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement presents the Group's consolidated profit or loss and other comprehensive income for the six months ended June 30, 2025, showing a 3.7% revenue growth and a significant 77.1% increase in profit for the period, primarily driven by higher other income and exchange gains Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30, RMB thousand) | Indicator | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Revenue | 1,856,712 | 1,790,194 | | Cost of sales | (1,686,249) | (1,595,694) | | Gross profit | 170,463 | 194,500 | | Other income | 12,315 | 2,691 | | Other gains and losses | 8,905 | (167) | | Selling and distribution expenses | (72,324) | (75,834) | | Administrative expenses | (65,490) | (65,785) | | Research and development expenses | (25,973) | (26,915) | | Finance costs | (19,639) | (19,902) | | Profit before tax | 10,613 | 6,932 | | Tax | (2,736) | (2,485) | | **Profit for the period** | **7,877** | **4,447** | | Total comprehensive income for the period | 9,996 | 596 | | Profit attributable to owners of the company | 7,036 | 4,447 | | Basic earnings per share (RMB) | 0.007 | 0.005 | - Profit for the period significantly increased by **77.1%**, primarily due to an increase in net exchange gains and higher other income from additional VAT credit refund policies[104](index=104&type=chunk) - Gross profit decreased, but the significant growth in other income and other gains offset some of the negative impact[104](index=104&type=chunk) [Condensed Consolidated Statement of Financial Position](index=27&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement presents the Group's financial position as of June 30, 2025, showing a slight increase in total assets, an improvement in net current liabilities, but an increase in total borrowings and the gearing ratio Condensed Consolidated Statement of Financial Position (As of June 30, 2025, RMB thousand) | Indicator | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, plant and equipment | 836,865 | 813,295 | | Right-of-use assets | 73,828 | 74,699 | | **Current Assets** | | | | Inventories | 426,607 | 414,619 | | Trade receivables | 270,195 | 286,452 | | Cash and cash equivalents | 155,278 | 101,461 | | **Current Liabilities** | | | | Trade payables and bills payable | 379,703 | 404,024 | | Borrowings (current portion) | 739,967 | 705,211 | | **Net Current Liabilities** | **(87,500)** | **(127,755)** | | **Total Assets Less Current Liabilities** | **843,438** | **797,415** | | **Non-current Liabilities** | | | | Borrowings (non-current portion) | 103,773 | 65,939 | | Loans from related companies (non-current portion) | 80,600 | 81,050 | | **Net Assets** | **632,338** | **621,576** | | **Total Equity** | **632,338** | **621,576** | - Net current liabilities improved from **RMB (127.8) million to RMB (87.5) million**, indicating an improvement in short-term solvency[106](index=106&type=chunk) - Total borrowings (current and non-current) increased from **RMB 771.15 million to RMB 843.74 million**, leading to a higher gearing ratio[106](index=106&type=chunk)[107](index=107&type=chunk)[143](index=143&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=29&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement outlines the changes in the Group's equity for the six months ended June 30, 2025, indicating an increase in equity attributable to owners of the company and total equity, primarily influenced by profit for the period and other comprehensive income Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30, RMB thousand) | Item | As of Jan 1, 2025 (Audited) | Profit for the Period | Other Comprehensive Income/(Expense) for the Period | Equity-settled share-based payments recognized | As of June 30, 2025 (Unaudited) | | :--- | :--- | :--- | :--- | :--- | :--- | | Share Capital | 8,930 | — | — | — | 8,930 | | Reserves | 576,852 | — | 2,119 | 766 | 579,737 | | Equity attributable to owners of the company | 585,782 | 7,036 | 2,119 | 766 | 595,703 | | Non-controlling interests | 35,794 | 841 | — | — | 36,635 | | **Total Equity** | **621,576** | **7,877** | **2,119** | **766** | **632,338** | - Equity attributable to owners of the company increased from **RMB 585.8 million to RMB 595.7 million**, primarily driven by profit for the period of **RMB 7.0 million** and other comprehensive income of **RMB 2.1 million**[109](index=109&type=chunk) - Share-based payments recognized resulted in an increase in reserves of **RMB 0.766 million**[109](index=109&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=30&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This statement presents the Group's cash flow activities for the six months ended June 30, 2025, showing a significant increase in net cash from operating activities, a slight decrease in net cash used in investing activities, stable net cash from financing activities, and a substantial increase in cash and cash equivalents at period-end Condensed Consolidated Statement of Cash Flows (For the six months ended June 30, RMB thousand) | Indicator | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Net cash from operating activities | 67,386 | 39,923 | | Net cash used in investing activities | (74,557) | (72,363) | | Net cash from financing activities | 57,035 | 54,101 | | Net increase in cash and cash equivalents | 49,864 | 21,661 | | Cash and cash equivalents at beginning of period | 101,461 | 77,393 | | Effect of foreign exchange rate changes | 3,953 | (2,067) | | **Cash and cash equivalents at end of period** | **155,278** | **96,987** | - Net cash from operating activities increased from **RMB 39.9 million to RMB 67.4 million**, indicating improved operational efficiency[112](index=112&type=chunk) - Cash and cash equivalents at the end of the period significantly increased to **RMB 155.3 million**, a notable rise from **RMB 97.0 million** in the prior period[112](index=112&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=31&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanatory notes to the condensed consolidated financial statements, covering general information, basis of preparation, significant accounting policies, and specific breakdowns of financial items [1. General Information](index=31&type=section&id=1.%20General%20Information) The company was incorporated in the Cayman Islands on April 25, 2018, and listed on the Main Board of the Stock Exchange on January 21, 2020, operating as an investment holding company with subsidiaries primarily engaged in manufacturing and selling chemical and pharmaceutical products - The company was incorporated in the Cayman Islands as an exempted company with limited liability on April 25, 2018, under the Companies Law of the Cayman Islands, and its shares were listed on the Main Board of the Stock Exchange on January 21, 2020[115](index=115&type=chunk) - The controlling shareholders of the company are Mr. Yin and Ms. Wu[115](index=115&type=chunk) - The company is an investment holding company, and its subsidiaries are principally engaged in the manufacture and sale of chemical and pharmaceutical products[116](index=116&type=chunk) [2. Basis of Preparation of the Condensed Consolidated Financial Statements](index=31&type=section&id=2.%20Basis%20of%20Preparation%20of%20the%20Condensed%20Consolidated%20Financial%20Statements) The condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and the applicable disclosure requirements of Appendix 16 to the Listing Rules, presented in RMB - The condensed consolidated financial statements have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and the applicable disclosure requirements of Appendix 16 to the Listing Rules[117](index=117&type=chunk) - The condensed consolidated financial statements are presented in RMB, which is the functional currency of the company[118](index=118&type=chunk) [3. Significant Accounting Policies](index=31&type=section&id=3.%20Significant%20Accounting%20Policies) The condensed consolidated financial statements are prepared under the historical cost convention, and accounting policies remain consistent with the 2024 annual consolidated financial statements, with no significant impact from new standards applied in the current period - The condensed consolidated financial statements have been prepared on the historical cost basis, except for certain financial instruments measured at fair value where applicable[119](index=119&type=chunk) - The accounting policies and methods of computation used in the preparation of the condensed consolidated financial statements for the six months ended June 30, 2025, are consistent with those presented in the Group's annual consolidated financial statements for the year ended December 31, 2024[119](index=119&type=chunk) - The application of the revised International Financial Reporting Standards and the Committee's agenda decisions during the interim period and prior periods did not have a significant impact on the Group's financial position and performance and/or the disclosures in these condensed consolidated financial statements[119](index=119&type=chunk) [4. Revenue and Segment Information](index=32&type=section&id=4.%20Revenue%20and%20Segment%20Information) The Group's revenue primarily derives from the manufacturing and sale of chemical and pharmaceutical products, totaling RMB 1,856.7 million in the first half of 2025, segmented by product type and customer geography, with mainland China remaining the primary market - Revenue represents revenue generated from the manufacture and sale of chemical and pharmaceutical products for both periods[120](index=120&type=chunk) Revenue by Type of Goods (RMB thousand) | Type of Goods | 2025 | 2024 | | :--- | :--- | :--- | | Methylamine Industry Series | 600,981 | 617,525 | | Iodine Derivatives Series and Related Products | 588,339 | 440,302 | | Golden Highway New Materials | 399,090 | 399,570 | | Advanced Materials Intermediates Series | 132,537 | 218,071 | | Green Products | 111,485 | 94,706 | | Health Products | 15,001 | 13,321 | | Gegexiang Selection | 978 | — | | Other | 8,301 | 6,699 | | **Total** | **1,856,712** | **1,790,194** | Revenue by Geographical Region (RMB thousand) | Region | 2025 | 2024 | | :--- | :--- | :--- | | Mainland China | 1,418,926 | 1,411,161 | | Europe | 183,474 | 148,735 | | Vietnam | 85,828 | 77,264 | | Other Asian Countries | 95,906 | 101,916 | | Other | 72,578 | 51,118 | | **Total** | **1,856,712** | **1,790,194** | - During both periods, no revenue from individual customers accounted for more than **10%** of the Group's total revenue[126](index=126&type=chunk) [5. Other Income and Other Gains and Losses](index=33&type=section&id=5.%20Other%20Income%20and%20Other%20Gains%20and%20Losses) The Group's other income significantly increased to RMB 12.3 million in the first half of 2025, mainly due to VAT additional deduction benefits, while other gains and losses turned from a loss to a gain of RMB 8.9 million, primarily driven by increased net exchange gains Other Income (For the six months ended June 30, RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Government grants | 2,560 | 1,409 | | VAT additional deduction benefits | 7,452 | — | | Bank interest income | 600 | 637 | | Interest income from loans receivable | 297 | 299 | | Other | 1,406 | 346 | | **Total** | **12,315** | **2,691** | Other Gains and Losses (For the six months ended June 30, RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Net exchange gains/(losses) | 9,427 | (114) | | Loss on disposal of plant and equipment | (1,090) | (654) | | Fair value changes of financial assets at fair value through profit or loss | (8) | (144) | | Fair value changes of derivative financial instruments | (79) | (7) | | Other | 655 | 752 | | **Total** | **8,905** | **(167)** | - VAT additional deduction benefits were a new source of income for the period, amounting to approximately **RMB 7,452,000**[129](index=129&type=chunk) - Net exchange gains turned from a loss of **RMB 114,000** in 2024 to a gain of **RMB 9,427,000** in 2025[127](index=127&type=chunk) [6. Profit Before Tax](index=34&type=section&id=6.%20Profit%20Before%20Tax) The Group's profit before tax for the first half of 2025 was RMB 10.6 million, an increase from RMB 6.9 million in the prior period, mainly affected by inventory costs, depreciation, and inventory write-downs Profit Before Tax Components (For the six months ended June 30, RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Cost of inventories recognized as expense | 1,686,256 | 1,594,853 | | Depreciation of property, plant and equipment | 42,953 | 36,168 | | Depreciation of right-of-use assets | 3,326 | 3,263 | | Total depreciation | 46,279 | 39,431 | | Capitalized as cost of inventories produced | (35,628) | (32,063) | | (Reversal of)/write-down of inventories, net of reversal | (7) | 841 | - Profit before tax for the first half of 2025 was **RMB 10,613,000**, an increase from **RMB 6,932,000** in the corresponding period of 2024[104](index=104&type=chunk) - Inventory write-down changed from a recognition of **RMB 841,000** in 2024 to a reversal of **RMB 7,000** in 2025[128](index=128&type=chunk) [7. Taxation](index=35&type=section&id=7.%20Taxation) The Group's tax expense increased to RMB 2.7 million in the first half of 2025, primarily comprising current tax and under-provision for prior years, with deferred tax being a negative amount Taxation Components (For the six months ended June 30, RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Current tax | 4,311 | 3,495 | | Under-provision in prior years | 9 | 1,324 | | Deferred tax (for the period) | (1,584) | (2,334) | | **Total** | **2,736** | **2,485** | - Total tax expense increased from **RMB 2,485,000** in 2024 to **RMB 2,736,000** in 2025[130](index=130&type=chunk) [8. Dividends](index=35&type=section&id=8.%20Dividends) The company neither paid nor declared any dividends for the six months ended June 30, 2025, and 2024 - The company neither paid nor declared any dividends for the six months ended June 30, 2025, and 2024[131](index=131&type=chunk) [9. Earnings Per Share](index=35&type=section&id=9.%20Earnings%20Per%20Share) Both basic and diluted earnings per share attributable to owners of the company increased to RMB 0.007, up from RMB 0.005 in the prior period, reflecting the increase in profit for the period Earnings Per Share Calculation (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the purpose of calculating basic and diluted earnings per share attributable to owners of the company (RMB thousand) | 7,036 | 4,447 | | Weighted average number of ordinary shares for basic earnings per share (thousand shares) | 944,320 | 949,100 | | Weighted average number of ordinary shares for diluted earnings per share (thousand shares) | 944,544 | 949,100 | | **Basic Earnings Per Share (RMB)** | **0.007** | **0.005** | | **Diluted Earnings Per Share (RMB)** | **0.007** | **0.005** | - Both basic and diluted earnings per share increased from **RMB 0.005** in 2024 to **RMB 0.007** in 2025[132](index=132&type=chunk) [10. Property, Plant and Equipment and Right-of-Use Assets](index=36&type=section&id=10.%20Property%2C%20Plant%20and%20Equipment%20and%20Right-of-Use%20Assets) During the interim period, the Group acquired property, plant, and equipment totaling RMB 70.1 million and disposed of property, plant, and equipment with a gross carrying amount of RMB 1.2 million, with certain assets and leased land pledged for bank financing - During the interim period, the Group acquired property, plant and equipment totaling **RMB 70,110,000** (2024: RMB 55,374,000)[133](index=133&type=chunk) - The Group disposed of property, plant and equipment with a gross carrying amount of **RMB 1,227,000**, resulting in a loss on disposal of **RMB 1,090,000**[133](index=133&type=chunk) - As of June 30, 2025, the Group had pledged buildings, plant and machinery, and motor vehicles with a total net carrying amount of **RMB 317,759,000** to secure general banking and other facilities[133](index=133&type=chunk) - The Group had pledged leasehold land with a net carrying amount of **RMB 62,884,000** to secure general banking facilities[134](index=134&type=chunk) [11. Trade Receivables](index=36&type=section&id=11.%20Trade%20Receivables) The Group's net trade receivables amounted to RMB 270.2 million, with a typical credit period of 60 days, and a reversal of impairment losses of RMB 2.3 million during the period indicates improved receivable quality, with some trade receivables pledged as collateral for borrowings Trade Receivables (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade receivables | 273,203 | 291,869 | | Less: Provision for credit losses | (3,008) | (5,417) | | **Net** | **270,195** | **286,452** | Ageing Analysis of Trade Receivables (RMB thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 0 to 30 days | 169,508 | 186,358 | | 31 to 60 days | 63,038 | 52,546 | | 61 to 90 days | 25,675 | 34,866 | | Over 90 days | 11,974 | 12,682 | | **Total** | **270,195** | **286,452** | - For the six months ended June 30, 2025, the Group recognized impairment provisions of **RMB 136,000** and reversed impairment provisions of **RMB 2,492,000**, resulting in a net reversal of **RMB 2,356,000**[139](index=139&type=chunk) - As of June 30, 2025, trade receivables with a carrying amount of **RMB 1,103,000** were pledged as collateral for the Group's borrowings[137](index=137&type=chunk) [12. Bills Receivable at Fair Value Through Other Comprehensive Income](index=38&type=section&id=12.%20Bills%20Receivable%20at%20Fair%20Value%20Through%20Other%20Comprehensive%20Income) The Group's bills receivable at fair value through other comprehensive income amounted to RMB 117.0 million, all maturing within 180 days, with some bills pledged as collateral for bank financing and supplier payments Bills Receivable at Fair Value Through Other Comprehensive Income (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Bills receivable at fair value through other comprehensive income | 117,027 | 127,229 | - All bills receivable have an ageing of between **0 and 180 days**[140](index=140&type=chunk) - As of June 30, 2025, the Group had pledged bills receivable with a total net carrying amount of **RMB 81,092,000** to secure general banking facilities granted to the Group and payments to suppliers[140](index=140&type=chunk) [13. Trade Payables and Bills Payable](index=38&type=section&id=13.%20Trade%20Payables%20and%20Bills%20Payable) The Group's total trade payables and bills payable amounted to RMB 379.7 million, with all bills payable maturing within one year and trade payables typically having a credit period of 90 days Trade Payables and Bills Payable (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables | 367,213 | 363,403 | | Bills payable | 12,490 | 40,621 | | **Total** | **379,703** | **404,024** | - All bills payable have a maturity period of less than one year[142](index=142&type=chunk) - The credit period for purchases of inventories is normally **90 days**[142](index=142&type=chunk) Ageing Analysis of Trade Payables (RMB thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 0 to 30 days | 157,804 | 207,405 | | 31 to 60 days | 102,347 | 39,702 | | 61 to 90 days | 60,959 | 67,922 | | Over 90 days | 46,103 | 48,374 | | **Total** | **367,213** | **363,403** | [14. Borrowings](index=40&type=section&id=14.%20Borrowings) The Group's total borrowings amounted to RMB 843.7 million, with the majority classified as current liabilities, comprising secured bank loans, unsecured bank loans, and other loans Borrowings Composition and Repayment Period (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Secured bank loans | 249,937 | 360,811 | | Unsecured bank loans | 447,880 | 304,300 | | Other loans | 145,923 | 106,039 | | **Total** | **843,740** | **771,150** | | Repayable within one year | 739,967 | 705,211 | | Repayable after one year but not more than two years | 44,025 | 45,000 | | Repayable after two years but not more than five years | 58,725 | 19,900 | | Repayable after five years | 1,023 | 1,039 | | **Amounts classified as non-current liabilities** | **103,773** | **65,939** | - Total borrowings increased from **RMB 771.15 million** as of December 31, 2024, to **RMB 843.74 million** as of June 30, 2025[143](index=143&type=chunk) [15. Loans from Related Companies](index=40&type=section&id=15.%20Loans%20from%20Related%20Companies) The Group obtained loans totaling RMB 83.05 million from related companies Hanhe Industrial and Jinhan Tianxia, both at an annual interest rate of 3.5%, with most loans classified as non-current liabilities Loans from Related Companies (RMB thousand) | Related Company | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Hanhe Industrial | 26,850 | 27,250 | | Jinhan Tianxia | 56,200 | 53,800 | | **Total** | **83,050** | **81,050** | | Less: Amounts classified as current liabilities | (2,450) | — | | **Amounts classified as non-current liabilities** | **80,600** | **81,050** | - Hanhe Industrial and Jinhan Tianxia provided loan financing to the Group, each

Financial Performance - Revenue for the six months ended June 30, 2025, was RMB 2,804,434,000, representing an increase of 7.0% compared to RMB 2,619,532,000 for the same period in 2024[3] - Gross profit for the same period was RMB 132,388,000, up 20.4% from RMB 109,869,000 year-on-year[3] - The net profit for the six months ended June 30, 2025, was RMB 16,493,000, a decrease of 25.5% compared to RMB 22,125,000 in the prior year[3] - The company reported a basic earnings per share of RMB 0.013 for the first half of 2025, down from RMB 0.017 in the same period of 2024[3] - The company reported a pre-tax profit of RMB 17,747,000, a decrease of 25.4% from RMB 23,811,000 in the previous year[20] - The company reported a pre-tax profit of RMB 16,493,000 for the six months ended June 30, 2025, down from RMB 22,125,000 in the same period of 2024, indicating a decrease of 25.6%[32] - The company's unaudited net profit attributable to owners was approximately RMB 16.49 million in the first half of 2025, a decrease of about 25.49% from approximately RMB 22.13 million in the same period of 2024[71] Revenue Breakdown - The revenue from gasoline engines was RMB 2,389,029,000, up 9.8% from RMB 2,174,521,000 in the previous year[20] - The revenue from diesel engines increased to RMB 53,832,000, a rise of 15.0% from RMB 46,652,000 in 2024[20] - The revenue from engine components was RMB 361,573,000, down 9.2% from RMB 398,359,000 in the same period last year[20] - Revenue from the engine business segment rose by approximately 9.98%, from about RMB 2.22117 billion in the first half of 2024 to approximately RMB 2.44286 billion in the first half of 2025[68] - Revenue from the engine parts segment decreased by approximately 9.23%, from about RMB 398.36 million in the first half of 2024 to approximately RMB 361.57 million in the first half of 2025[68] Cash Flow and Liquidity - The company's cash and cash equivalents increased to RMB 92,457,000 from RMB 85,570,000 at the end of 2024, reflecting a positive cash flow trend[4] - For the six months ended June 30, 2025, the operating cash flow before changes in working capital was RMB 172,655,000, an increase of 14.4% from RMB 151,039,000 in the same period of 2024[10] - The net cash generated from operating activities was RMB 94,118,000, down 33.8% from RMB 142,005,000 in the prior year[12] - The cash and cash equivalents at the end of the period were RMB 92,457,000, up from RMB 41,369,000 at the end of June 2024[12] - As of June 30, 2025, the company's bank balance and cash amounted to approximately RMB 92.45 million, an increase from approximately RMB 85.57 million as of December 31, 2024[72] Assets and Liabilities - Total assets decreased to RMB 5,052,948,000 as of June 30, 2025, down from RMB 5,477,709,000 at the end of 2024[5] - Current liabilities decreased to RMB 2,919,842,000 from RMB 3,293,002,000 at the end of 2024, indicating improved liquidity[5] - The total equity increased to RMB 1,770,683,000 as of June 30, 2025, compared to RMB 1,754,154,000 at the end of 2024, showing a slight improvement in financial stability[5] - The company's debt-to-equity ratio decreased to approximately 1.85 as of June 30, 2025, down from 2.12 as of December 31, 2024[75] Inventory and Receivables - Inventory levels rose to RMB 553,186,000, up from RMB 479,583,000, indicating potential growth in sales or production[4] - As of June 30, 2025, the net trade receivables amounted to RMB 1,890,844,000, a decrease of approximately 19.7% from RMB 2,354,559,000 as of December 31, 2024[38] - The total amount of trade and other receivables was RMB 2,110,207,000 as of June 30, 2025, compared to RMB 2,528,579,000 as of December 31, 2024, reflecting a decrease of approximately 16.5%[38] - The aging analysis of trade receivables shows that as of June 30, 2025, RMB 1,780,334,000 (94.2%) was within one month overdue, down from RMB 2,297,558,000 (97.6%) as of December 31, 2024[38] Expenses - Employee benefits expenses totaled RMB 66,044,000 for the six months ended June 30, 2025, compared to RMB 62,663,000 for the same period in 2024, reflecting an increase of 5.7%[28] - The company's administrative expenses increased by approximately 9.84% to RMB 89.86 million in the first half of 2025, up from RMB 81.80 million in the same period of 2024[70] - The company recorded total depreciation and amortization expense of RMB 131,851,000 for the six months ended June 30, 2025, slightly up from RMB 130,908,000 for the same period in 2024[28] Shareholder Information - As of June 30, 2025, major shareholders hold approximately 31.20% of the company's shares, with significant stakes held by Huachen Investment and Xin Hua Investment[90] - New China Power Holdings Limited's direct subsidiary, Xin Hua Investment, holds approximately 31.20% equity in the company as of June 30, 2025, based on 1,282,211,794 shares issued[91][93] - Mr. Deng Han, a director, holds 2,994,258 ordinary shares, representing 0.23% of the company's equity, and has trustee and controlled entity interests of 33,993,385 ordinary shares, representing 2.65%[94] Corporate Governance - The company has adopted the corporate governance code as per the listing rules and has complied with all provisions during the reporting period[97] - The audit committee, including independent non-executive directors, reviewed the accounting principles and practices adopted by the group for the six months ending June 30, 2025[99] - The board of directors consists of two executive directors, one non-executive director, and three independent non-executive directors as of the report date[100]

[Management Discussion and Analysis](index=3&type=section&id=Management%20Discussion%20and%20Analysis) The Group achieved robust H1 2025 financial growth and resilience through global production and cost control [Financial Review](index=3&type=section&id=Financial%20Review) The Group achieved significant H1 2025 financial growth through global production and cost control - Global geopolitical tensions, economic slowdown, and fluctuating US tariff policies intensified international trade uncertainty, but the Group demonstrated **exceptional operational resilience** through optimized global production layout and cost control[5](index=5&type=chunk) - The Bangladesh factory secured a large volume of transfer orders from high-tariff regions, driving **significant growth** in the manufacturing business[5](index=5&type=chunk) - The newly acquired Dutch company recorded a loss, but its design capabilities, industry experience, and licensed product trade network in Europe, the Middle East, and Africa are expected to provide **new impetus for trade business growth**[5](index=5&type=chunk) Key Financial Indicators for the Six Months Ended June 30, 2025 | Indicator | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 845,629 | 687,114 | +23.1% | | Gross Profit | 255,104 | 219,510 | +16.2% | | Gross Margin | 30.2% | 31.9% | -1.7% | | Profit Attributable to Shareholders | 59,918 | 35,269 | +69.9% | | Interim Dividend (HK cents per share) | 3 | 3 | 0% | | Cash on Hand (June 30, 2025) | 239,281 | 191,793 (Dec 31, 2024) | +24.76% | | Unutilized Bank Facilities (June 30, 2025) | 664,300 | 720,600 (Dec 31, 2024) | -7.79% | [Business Review](index=4&type=section&id=Business%20Review) The Group's manufacturing business achieved nearly 30% operating profit growth through global production optimization, while the trade business saw revenue growth but incurred an operating loss [Manufacturing Business](index=4&type=section&id=Manufacturing%20Business) The manufacturing business achieved nearly 30% operating profit growth by flexibly deploying Bangladesh and Mexico factories, with Cambodia facilities in preparation - The manufacturing business successfully mitigated tariff risks by negotiating with customers and suppliers and flexibly deploying production at Bangladesh and Mexico factories, driving **operating profit growth of nearly 30%**[7](index=7&type=chunk) - The Bangladesh factory performed exceptionally, securing a large volume of transfer orders from high-tariff regions, significantly **boosting production scale and profitability**[7](index=7&type=chunk) - The Mexico factory's operations stabilized, commencing production of high-end headwear to **diversify the product portfolio**[7](index=7&type=chunk) - The Shenzhen factory continued to focus on headwear design and development and operational support[8](index=8&type=chunk) - The Group is actively preparing for headwear production at its leased facility in Cambodia to **mitigate geopolitical risks**[8](index=8&type=chunk) Manufacturing Business Key Financial Data | Indicator | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 537,720 | 445,769 | +20.6% | | % of Total Revenue | 63.6% | - | - | | Segment Operating Profit | 120,152 | 93,178 | +28.9% | Manufacturing Factory Employee Count | Factory | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Bangladesh Factory | 7,200 | 7,400 | | Mexico Factory | 580 | 430 | [Trade Business](index=5&type=section&id=Trade%20Business) Despite global economic instability, the trade business saw revenue increase by 27.6% due to the Dutch acquisition, but recorded an operating loss - Global economic instability led to decreased demand for headwear and accessories, reduced retailer procurement, and **intensified market competition**[9](index=9&type=chunk) - The trade business maintained relative stability through its **brand portfolio advantage and rapid market response capabilities**[9](index=9&type=chunk) Trade Business Key Financial Data | Indicator | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 307,909 | 241,345 | +27.6% | | % of Total Revenue | 36.4% | - | - | | Operating Loss | (43,834) | (37,739) | +16.15% (Loss Widened) | - High sales costs in the trade segment and increased administrative expenses due to the **incorporation of the Dutch company** were the primary reasons for the expanded operating loss[9](index=9&type=chunk) [Outlook](index=5&type=section&id=Outlook) The Group plans to expand Cambodia and Mexico factories for manufacturing flexibility and leverage Mexico's free trade zone and the Dutch company for trade growth - The Group will adhere to a prudent approach, **steadily advancing its globalization strategy**, managing risks, and seizing opportunities for sustainable growth[10](index=10&type=chunk) - Preparation for the Cambodia production facility is accelerating, with an expected Q3 launch this year and a target annual capacity of **10 million units**, complementing the Bangladesh factory and optimizing the Southeast Asian production network[10](index=10&type=chunk) - The Mexico factory's production efficiency is steadily improving, benefiting from NAFTA tariff concessions, with plans for expansion to **solidify its North American supply chain position**[11](index=11&type=chunk) - The Group is advancing a free trade zone project and warehouse construction at the Mexico factory park, combined with the Shenzhen factory's transformation into a cross-border e-commerce industrial park, expected to **enhance trade business operational efficiency**[11](index=11&type=chunk) - The Dutch company's integration positions the Group as one of the **world's largest licensed product design and trading companies**, expanding trade business market coverage to new regions like the Middle East and Africa[11](index=11&type=chunk) - The Group will continue to deepen risk control and cost optimization measures, maintaining **healthy financial resilience** and confidence in overcoming challenges and capturing growth opportunities[12](index=12&type=chunk) [Liquidity and Financial Resources](index=7&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's total cash and bank balances were HK$243.4 million, with HK$664.3 million in unutilized bank facilities, indicating a sound financial position Liquidity and Bank Facilities | Indicator | June 30, 2025 (HK$ million) | December 31, 2024 (HK$ million) | | :--- | :--- | :--- | | Total Cash and Bank Balances | 243.4 | 196.0 | | Bank Credit Facilities | 852.2 | 905.4 | | Unutilized Bank Facilities | 664.3 | 720.6 | - Approximately **60.6% of liquidity was denominated in USD**, 17.4% in RMB, and 8.1% in HKD[13](index=13&type=chunk) - The gearing ratio (borrowings divided by total equity) was **15.9%** (December 31, 2024: 16.9%), indicating a sound financial position[13](index=13&type=chunk) [Capital Expenditure](index=7&type=section&id=Capital%20Expenditure) Capital expenditure for the period focused on US property renovation and equipment acquisition, with significant commitments approved for Mexico, Bangladesh, and Cambodia factory expansion Capital Expenditure for the Period | Project | H1 2025 (HK$ million) | H1 2024 (HK$ million) | | :--- | :--- | :--- | | US Missouri Property Renovation | 9.4 | 102.4 (Property Acquisition) | | Additions to Equipment and Machinery | 15.6 | 24.2 | | Additions to Trade Business Equipment and Systems | 1.2 | 1.0 | - As of June 30, 2025, approved capital commitments totaled **HK$151.4 million** for the construction of a Mexico warehouse and expansion of Bangladesh and Cambodia factories[14](index=14&type=chunk) - Additional capital commitments of **HK$4.0 million** were granted for upgrading trade business equipment[14](index=14&type=chunk) [Foreign Exchange Risk](index=7&type=section&id=Foreign%20Exchange%20Risk) Most of the Group's assets and liabilities are denominated in HKD, USD, RMB, or BDT, with a 1% BDT appreciation/depreciation expected to impact manufacturing gross margin by 0.25% - Most of the Group's assets and liabilities are denominated in **HKD, USD, RMB, or Bangladesh Taka (BDT)**[15](index=15&type=chunk) - A 1% appreciation/depreciation of the BDT is expected to result in a **decrease/increase of approximately 0.25%** in the manufacturing business's gross margin[15](index=15&type=chunk) - A 1% appreciation of other currencies is expected to have **no significant impact** on the manufacturing business's gross profit[15](index=15&type=chunk) [Employees and Remuneration Policy](index=8&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had approximately 8,200 global employees, with employee expenses of HK$223.8 million for the period, offering competitive remuneration and a share option scheme Employee Count as of June 30, 2025 | Region | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | China (including Hong Kong) | 220 | 335 | | Bangladesh | 7,235 | 7,222 | | Mexico | 585 | 389 | | United States | 116 | 147 | | Europe | 66 | 11 | | **Total** | **8,222** | **8,104** | - Employee expenses for the period were approximately **HK$223.8 million** (H1 2024: HK$192.3 million)[16](index=16&type=chunk) - The Group ensures competitive remuneration based on position and performance, with **share options granted to key employees**, including directors[16](index=16&type=chunk) [Interim Dividend and Closure of Register of Members](index=9&type=section&id=Interim%20Dividend%20and%20Closure%20of%20Register%20of%20Members) The Board declared an interim dividend of 3 HK cents per share and will close the register of members from September 17 to September 19, 2025, to determine dividend entitlements - The Board declared an interim dividend of **3 HK cents per share** (2024: 3 HK cents), payable on or after October 10, 2025[17](index=17&type=chunk) - To determine eligibility for the interim dividend, the Company's register of members will be closed from **September 17 to September 19, 2025** (both dates inclusive)[18](index=18&type=chunk) - All transfer documents must be lodged with Tricor Secretaries Limited by **4:30 p.m. on September 16, 2025**, to qualify for the interim dividend[18](index=18&type=chunk) [Interim Condensed Consolidated Statement of Profit or Loss (Unaudited)](index=10&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20(Unaudited)) For the six months ended June 30, 2025, the Group's revenue increased by 23.1% to HK$845,629 thousand, and profit attributable to shareholders surged by 69.9% to HK$59,918 thousand, with basic earnings per share at 13.962 HK cents Interim Condensed Consolidated Statement of Profit or Loss Summary | Indicator | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 845,629 | 687,114 | | Cost of Sales | (590,525) | (467,604) | | Gross Profit | 255,104 | 219,510 | | Operating Profit | 84,729 | 65,048 | | Profit for the Period | 57,579 | 39,979 | | Profit Attributable to Owners of the Company | 59,918 | 35,269 | | Non-controlling Interests | (2,339) | 4,710 | | Basic Earnings Per Share (HK cents) | 13.962 | 8.218 | | Diluted Earnings Per Share (HK cents) | 13.856 | 8.141 | [Interim Condensed Consolidated Statement of Comprehensive Income (Unaudited)](index=11&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income%20(Unaudited)) For the six months ended June 30, 2025, the Group's total comprehensive income for the period was HK$65,490 thousand, driven by profit for the period and positive exchange differences from translating overseas operations' financial statements Interim Condensed Consolidated Statement of Comprehensive Income Summary | Indicator | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Profit for the Period | 57,579 | 39,979 | | Exchange Differences on Translating Financial Statements of Overseas Operations | 7,911 | (1,906) | | Total Comprehensive Income for the Period, Net of Tax | 65,490 | 38,073 | | Attributable to Owners of the Company | 68,401 | 33,363 | | Attributable to Non-controlling Interests | (2,911) | 4,710 | [Interim Condensed Consolidated Statement of Financial Position (Unaudited)](index=12&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position%20(Unaudited)) As of June 30, 2025, the Group's total assets increased to HK$1,961,637 thousand, total equity to HK$1,223,321 thousand, and net current assets significantly improved to HK$395,421 thousand, indicating a robust financial position Interim Condensed Consolidated Statement of Financial Position Summary | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | **Assets** | | | | Non-current Assets | 929,707 | 940,361 | | Current Assets | 1,031,930 | 1,004,505 | | **Total Assets** | **1,961,637** | **1,944,866** | | **Equity and Liabilities** | | | | Equity Attributable to Owners of the Company | 1,164,183 | 1,117,240 | | Non-controlling Interests | 59,138 | 62,049 | | **Total Equity** | **1,223,321** | **1,179,289** | | Non-current Liabilities | 101,807 | 103,852 | | Current Liabilities | 636,509 | 661,725 | | **Total Liabilities** | **738,316** | **765,577** | | **Net Current Assets** | **395,421** | **342,780** | [Interim Condensed Consolidated Statement of Changes in Equity (Unaudited)](index=14&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity%20(Unaudited)) For the six months ended June 30, 2025, total equity attributable to owners of the Company increased to HK$1,164,183 thousand, driven by profit for the period and an increase in exchange reserves, while the 2024 final dividend was paid Changes in Equity for the Six Months Ended June 30, 2025 Summary | Indicator | January 1, 2025 (HK$ thousand) | Profit for the Period (HK$ thousand) | Exchange Differences (HK$ thousand) | 2024 Final Dividend (HK$ thousand) | June 30, 2025 (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | | Share Capital | 42,916 | – | – | – | 42,916 | | Other Reserves | 208,235 | – | – | – | 216,718 | | Exchange Reserve | (3,736) | – | 8,483 | – | 4,747 | | Retained Earnings | 866,089 | 59,918 | – | (21,458) | 904,549 | | **Total Attributable to Owners of the Company** | **1,117,240** | **59,918** | **8,483** | **(21,458)** | **1,164,183** | | Non-controlling Interests | 62,049 | (2,339) | (572) | – | 59,138 | | **Total Equity** | **1,179,289** | **57,579** | **7,911** | **(21,458)** | **1,223,321** | [Interim Condensed Consolidated Statement of Cash Flows (Unaudited)](index=16&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows%20(Unaudited)) For the six months ended June 30, 2025, net cash from operating activities significantly increased to HK$93,928 thousand, net cash outflow from investing activities decreased, and net cash outflow from financing activities remained stable, with cash and cash equivalents increasing to HK$229,069 thousand at period-end Interim Condensed Consolidated Statement of Cash Flows Summary | Indicator | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Net Cash From Operating Activities | 93,928 | 31,765 | | Net Cash Used in Investing Activities | (12,955) | (123,068) | | Net Cash Used in Financing Activities | (35,828) | (36,399) | | Net Increase/(Decrease) in Cash and Cash Equivalents | 45,145 | (127,702) | | Cash and Cash Equivalents at Beginning of Period | 179,638 | 317,849 | | Effect of Foreign Exchange Rate Changes | 4,286 | (1,519) | | Cash and Cash Equivalents at End of Period | 229,069 | 188,628 | [Notes to the Unaudited Interim Condensed Consolidated Financial Information](index=17&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Condensed%20Consolidated%20Financial%20Information) This section provides detailed notes to the unaudited interim condensed consolidated financial information for the six months ended June 30, 2025, covering general information, basis of preparation, accounting policies, financial risk management, segment information, profit components, taxation, earnings per share, dividends, balance sheet items, borrowings, commitments, and related party transactions [8.1 General Information](index=17&type=section&id=8.1%20General%20Information) Fida International Holdings Limited is a Bermuda-incorporated listed company primarily engaged in investment holding, with subsidiaries involved in headwear manufacturing, sales, and trading - The Company is a **listed limited liability company incorporated in Bermuda**, with shares listed on The Stock Exchange of Hong Kong Limited[28](index=28&type=chunk) - The Company's principal business is investment holding, while its subsidiaries are primarily engaged in the **manufacture and sale of headwear**, and the trading and distribution of headwear and other products[28](index=28&type=chunk) - This interim condensed consolidated financial information is presented in **Hong Kong dollars** and is unaudited[29](index=29&type=chunk)[30](index=30&type=chunk) [8.2 Basis of Preparation](index=17&type=section&id=8.2%20Basis%20of%20Preparation) This interim condensed consolidated financial information is prepared in accordance with HKAS 34 "Interim Financial Reporting" and should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2024 - This interim condensed consolidated financial information is prepared in accordance with **Hong Kong Accounting Standard 34 "Interim Financial Reporting"** issued by the Hong Kong Institute of Certified Public Accountants[31](index=31&type=chunk) - This information does not include all the notes normally included in annual consolidated financial statements and should be read in conjunction with the **annual consolidated financial statements for the year ended December 31, 2024**[31](index=31&type=chunk) [8.3 Accounting Policies](index=17&type=section&id=8.3%20Accounting%20Policies) Except for the adoption of new and revised standards, the accounting policies applied are consistent with those in the 2024 annual consolidated financial statements, with HKFRS 18 expected to impact profit or loss presentation and financial performance disclosures but not operating results or financial position - Except for the adoption of new and revised standards, the accounting policies applied are **consistent with those applied in the annual consolidated financial statements** for the year ended December 31, 2024[32](index=32&type=chunk) - Income tax expense for the interim period is accrued using the **tax rate that would be applicable to the expected annual earnings**[33](index=33&type=chunk) - HKFRS 18, effective for reporting periods beginning on or after January 1, 2027, will introduce new presentation requirements for the consolidated statement of comprehensive income, including classifying income and expenses in the profit or loss into five categories: **operating, investing, financing, income tax, and discontinued operations**[36](index=36&type=chunk) - The Group believes that the adoption of HKFRS 18 is **unlikely to have any significant impact** on the Group's operating results and financial position[36](index=36&type=chunk) [8.4 Estimates](index=19&type=section&id=8.4%20Estimates) The preparation of interim condensed consolidated financial information requires management's judgment, estimates, and assumptions, with significant judgments and sources of estimation uncertainty consistent with those applied in the 2024 annual consolidated financial statements - The preparation of interim condensed consolidated financial information requires management to make **judgments, estimates, and assumptions**, and actual results may differ from these estimates[37](index=37&type=chunk) - The significant judgments made by management in applying the accounting policies and the key sources of estimation uncertainty are the **same as those applied in the consolidated financial statements** for the year ended December 31, 2024[37](index=37&type=chunk) [8.5 Financial Risk Management](index=19&type=section&id=8.5%20Financial%20Risk%20Management) The Group faces market, credit, and liquidity risks, with no significant changes in financial liabilities' contractual undiscounted cash flows or risk management policies; fair value measurements use Level 1, 2, and 3 methods, with Level 3 primarily comprising unlisted equity investments [8.5.1 Financial Risk Factors](index=19&type=section&id=8.5.1%20Financial%20Risk%20Factors) The Group's operations are exposed to various financial risks, including market risk (foreign exchange, interest rate, and price risk), credit risk, and liquidity risk - The Group's operations are exposed to various financial risks: **market risk (including foreign exchange risk, interest rate risk, and price risk), credit risk, and liquidity risk**[38](index=38&type=chunk) - There have been **no significant changes in the contractual undiscounted cash outflows** of financial liabilities compared to the year-end[39](index=39&type=chunk) - There have been **no changes in any risk management policies** since the year-end[40](index=40&type=chunk) [8.5.2 Fair Value Estimation](index=20&type=section&id=8.5.2%20Fair%20Value%20Estimation) The Group's financial instrument fair value measurements are analyzed using Level 1, 2, and 3 methods, with Level 1 primarily for listed securities and Level 3 for unlisted equity investments; no transfers between fair value hierarchy levels or other changes in valuation techniques occurred during the period - Fair value measurements are analyzed using **Level 1 (quoted prices in active markets), Level 2 (observable input data), and Level 3 (unobservable input data)**[43](index=43&type=chunk) Financial Assets Measured at Fair Value as of June 30, 2025 | Item | Level 1 (HK$ thousand) | Level 2 (HK$ thousand) | Level 3 (HK$ thousand) | Total (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Unlisted Equity Investments (BVI) | – | – | 20,465 | 20,465 | | Unlisted Equity Investment Funds (China) | – | – | 14,117 | 14,117 | | Unlisted Equity Investment Funds (Hong Kong) | – | – | 3,508 | 3,508 | | Listed Securities (Hong Kong) | 4,149 | – | – | 4,149 | | **Total Financial Assets** | **4,149** | **–** | **38,090** | **42,239** | - During the period, there were **no transfers of financial assets** between fair value hierarchy levels, and no other changes in valuation techniques[45](index=45&type=chunk)[46](index=46&type=chunk) [8.5.3 Fair Value Measurements Using Significant Unobservable Inputs (Level 3)](index=22&type=section&id=8.5.3%20Fair%20Value%20Measurements%20Using%20Significant%20Unobservable%20Inputs%20(Level%203)) Level 3 fair value measurements primarily involve unlisted equity investments, including a sold US unlisted equity investment and equity investments in BVI, China, and Hong Kong funds, whose fair values are generally similar to their net asset values - The unlisted equity investment in the US was sold on March 31, 2025, for **US$1,292,000 (HK$10,052,000)**, resulting in a gain on disposal of HK$2,272,000[47](index=47&type=chunk) - The BVI unlisted equity investment represents a **2.3% equity investment in an unlisted fund**, with its fair value approximating its net asset value[48](index=48&type=chunk) - The China unlisted equity investment represents an approximately **2.72% capital contribution to a limited partnership**, with its fair value approximating its net asset value[49](index=49&type=chunk) - The Hong Kong unlisted equity investment represents an approximately **2% capital contribution to a limited partnership**, with its fair value approximating its net asset value[50](index=50&type=chunk) - The Group's finance department reviews the valuation of financial instruments and non-financial assets measured at fair value and **reports to the directors**[51](index=51&type=chunk) [8.5.4 Fair Value of Financial Assets and Liabilities Measured at Amortized Cost](index=23&type=section&id=8.5.4%20Fair%20Value%20of%20Financial%20Assets%20and%20Liabilities%20Measured%20at%20Amortized%20Cost) The fair values of financial assets and liabilities measured at amortized cost, including other financial assets, trade receivables, short-term deposits, cash and cash equivalents, trade and other payables, amounts due to non-controlling interests, lease liabilities, and borrowings, approximate their carrying amounts - The fair values of financial assets and liabilities measured at amortized cost, including other financial assets, trade receivables, short-term deposits, cash and cash equivalents, trade and other payables, amounts due to non-controlling interests, lease liabilities, and borrowings, **approximate their carrying amounts**[52](index=52&type=chunk)[56](index=56&type=chunk) [8.6 Revenue](index=23&type=section&id=8.6%20Revenue) The Group's principal activities are the manufacturing and trading of headwear, small leather goods, handbags, apparel, and accessories - The Group's principal activities are the **manufacturing and trading of headwear, small leather goods, handbags, apparel, and accessories**[52](index=52&type=chunk) [8.7 Segment Information](index=23&type=section&id=8.7%20Segment%20Information) The Group's operating segments include manufacturing and trade businesses, with executive directors assessing performance based on segment profit/loss; manufacturing revenue grew 20.6% with operating profit up 28.9%, while trade revenue grew 27.6% but recorded an operating loss - Executive directors are identified as the chief operating decision-makers, determining operating segments and assessing their performance based on **reviewed reports**[53](index=53&type=chunk)[54](index=54&type=chunk) - Operating segments include the manufacturing business (with primary production facilities in Bangladesh and Mexico, serving customers mainly in the US and Europe) and the trade business (operated through H3 Sportgear LLC, San Diego Hat Company, Aquarius Ltd., Drew Pearson International (Europe) Ltd., and Difuzed B.V.)[55](index=55&type=chunk)[57](index=57&type=chunk) Segment Revenue and Profit for the Six Months Ended June 30, 2025 | Indicator | Manufacturing Business (HK$ thousand) | Trade Business (HK$ thousand) | Total (HK$ thousand) | | :--- | :--- | :--- | :--- | | Revenue from External Customers | 537,720 | 307,909 | 845,629 | | Inter-segment Revenue | 17,130 | – | 17,130 | | Reportable Segment Revenue | 554,850 | 307,909 | 862,759 | | Reportable Segment Profit/(Loss) | 120,152 | (43,834) | 76,318 | Segment Assets and Liabilities as of June 30, 2025 | Indicator | Manufacturing Business (HK$ thousand) | Trade Business (HK$ thousand) | Total (HK$ thousand) | | :--- | :--- | :--- | :--- | | Reportable Segment Assets | 833,149 | 788,407 | 1,621,556 | | Reportable Segment Liabilities | 229,331 | 210,851 | 440,182 | | Additions to Non-current Assets | 21,012 | 15,413 | 36,425 | [8.8 Profit Before Income Tax](index=26&type=section&id=8.%20Profit%20Before%20Income%20Tax) For the six months ended June 30, 2025, the Group's profit before income tax was HK$77,272 thousand, influenced by operating profit, gain on disposal of financial assets, exchange gains, depreciation, amortization, and increased provisions for inventories and trade receivables impairment [8.8.1 Operating Profit](index=26&type=section&id=8(a)%20Operating%20Profit) Operating profit is influenced by gains on disposal of financial assets, fair value losses on investment properties, net exchange gains, and expenses such as depreciation, amortization, inventory provisions, and trade receivables impairment Components of Operating Profit | Item | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Gain on Disposal of Financial Assets Measured at Fair Value Through Profit or Loss | (2,272) | – | | Fair Value Loss on Investment Properties | 2,373 | – | | Net Exchange Gain | (6,114) | (2,841) | | Depreciation of Property, Plant and Equipment | 31,654 | 28,078 | | Depreciation of Right-of-Use Assets | 8,991 | 7,101 | | Amortization of Other Intangible Assets | 11,239 | 11,995 | | Net Provision for Inventories | 2,999 | 1,162 | | Net Impairment Loss on Trade Receivables | 2,620 | 2,163 | - For the six months ended June 30, 2025, a provision for obsolete inventories of **HK$2,999,000** was made, primarily related to the actual condition of inventories, market demand, and historical usage[61](index=61&type=chunk) - A net impairment loss on trade receivables of **HK$2,620,000** was recognized, primarily related to the business prospects and historical repayment patterns of US and European customers[61](index=61&type=chunk) [8.8.2 Finance Costs - Net](index=27&type=section&id=8(b)%20Finance%20Costs%20-%20Net) For the six months ended June 30, 2025, the Group's net finance costs were (HK$7,457) thousand, primarily comprising interest on bank loans, patent fees, and lease liabilities, with a decrease in finance income Components of Net Finance Costs | Item | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Interest on Bank Loans, Overdrafts and Other Borrowings | (6,868) | (6,655) | | Increase in Interest on Patent Fees Payable | (1,145) | (1,239) | | Interest on Lease Liabilities | (537) | (743) | | Finance Costs | (8,550) | (8,637) | | Finance Income | 1,093 | 2,047 | | **Finance Costs - Net** | **(7,457)** | **(6,590)** | [8.9 Income Tax Expense](index=27&type=section&id=9.%20Income%20Tax%20Expense) For the six months ended June 30, 2025, the Group's income tax expense was HK$19,693 thousand, primarily from overseas taxes, with Hong Kong profits tax accrued at 16.5% Components of Income Tax Expense | Item | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Hong Kong Profits Tax | 507 | 770 | | Overseas Taxation | 20,013 | 17,079 | | Deferred Income Tax | (827) | 615 | | **Total Income Tax Expense** | **19,693** | **18,464** | - Income tax expense for the interim period is recognized based on management's estimate of the **expected weighted average annual income tax rate** for the entire financial year[65](index=65&type=chunk) - Hong Kong profits tax is accrued at a rate of **16.5%**, and overseas profits tax is calculated at the applicable rates in the countries where the Group operates[65](index=65&type=chunk) [8.10 Earnings Per Share](index=28&type=section&id=10.%20Earnings%20Per%20Share) For the six months ended June 30, 2025, the Group's basic earnings per share were 13.962 HK cents and diluted earnings per share were 13.856 HK cents, both showing an increase from the prior period [8.10.1 Basic](index=28&type=section&id=10(a)%20Basic) Basic earnings per share are calculated by dividing profit attributable to owners of the Company by the weighted average number of ordinary shares outstanding during the period, which was 13.962 HK cents for the current period Basic Earnings Per Share Calculation | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit Attributable to Owners of the Company (HK$ thousand) | 59,918 | 35,269 | | Weighted Average Number of Ordinary Shares Outstanding | 429,164,448 | 429,164,448 | | **Basic Earnings Per Share (HK cents)** | **13.962** | **8.218** | [8.10.2 Diluted](index=28&type=section&id=10(b)%20Diluted) Diluted earnings per share are calculated by adjusting the weighted average number of ordinary shares outstanding for the conversion of all outstanding share options, resulting in 13.856 HK cents for the current period Diluted Earnings Per Share Calculation | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit Attributable to Owners of the Company (HK$ thousand) | 59,918 | 35,269 | | Weighted Average Number of Ordinary Shares Used for Diluted EPS | 432,447,010 | 433,242,339 | | **Diluted Earnings Per Share (HK cents)** | **13.856** | **8.141** | [8.11 Dividends](index=29&type=section&id=11.%20Dividends) The Board declared an interim dividend of 3 HK cents per share, consistent with the prior period; additionally, the 2024 final dividend of 5 HK cents per share was paid during the current period [8.11.1 Dividends Attributable to the Period](index=29&type=section&id=11(a)%20Dividends%20Attributable%20to%20the%20Period) The declared interim dividend is 3 HK cents per share, totaling HK$12,875 thousand, which is the same as the prior period Dividends Attributable to the Period | Indicator | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Interim Dividend Declared of 3 HK cents per share | 12,875 | 12,875 | - The amount of the proposed interim dividend is based on **429,164,448 issued shares** as of June 30, 2025[71](index=71&type=chunk) [8.11.2 Dividends Approved and Paid During the Period Attributable to the Previous Financial Year](index=30&type=section&id=11(b)%20Dividends%20Approved%20and%20Paid%20During%20the%20Period%20Attributable%20to%20the%20Previous%20Financial%20Year) The 2024 final dividend of 5 HK cents per share, totaling HK$21,458 thousand, was paid during the current period Dividends Approved and Paid During the Period Attributable to the Previous Financial Year | Indicator | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Final Dividend Paid for 2024 of 5 HK cents per share | 21,458 | 25,750 | [8.12 Property, Plant and Equipment, Investment Properties and Other Intangible Assets](index=30&type=section&id=12.%20Property%2C%20Plant%20and%20Equipment%2C%20Investment%20Properties%20and%20Other%20Intangible%20Assets) For the six months ended June 30, 2025, the Group acquired HK$26,160 thousand in property, plant, and equipment; one investment property recorded a fair value loss of HK$2,373 thousand; other intangible assets primarily include patent rights and customer and supplier relationships - For the six months ended June 30, 2025, the Group acquired **HK$26,160,000 in property, plant, and equipment**[73](index=73&type=chunk) - Among investment properties, one property recorded a **fair value loss of HK$2,373,000**[73](index=73&type=chunk) Components of Other Intangible Assets | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Patent Rights | 26,363 | 34,687 | | Customer and Supplier Relationships Acquired | 44,290 | 40,693 | [8.13 Right-of-Use Assets and Lease Liabilities](index=31&type=section&id=13.%20Right-of-Use%20Assets%20and%20Lease%20Liabilities) As of June 30, 2025, the Group's right-of-use assets totaled HK$56,482 thousand and lease liabilities totaled HK$60,639 thousand, with depreciation expense of HK$8,991 thousand and interest expense of HK$537 thousand for the period [8.13.1 Amounts Recognized in the Interim Condensed Consolidated Statement of Financial Position](index=31&type=section&id=13(i)%20Amounts%20Recognized%20in%20the%20Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's right-of-use assets were HK$56,482 thousand, and total lease liabilities were HK$60,639 thousand, with the non-current portion being HK$47,028 thousand Right-of-Use Assets and Lease Liabilities | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Right-of-Use Assets (Properties) | 56,482 | 55,628 | | Lease Liabilities (Non-current) | 47,028 | 45,911 | | Lease Liabilities (Current) | 13,611 | 14,382 | | **Total Lease Liabilities** | **60,639** | **60,293** | - Right-of-use assets increased by **HK$10,265,000** during the six months ended June 30, 2025[75](index=75&type=chunk) [8.13.2 Amounts Recognized in the Interim Condensed Consolidated Statement of Profit or Loss](index=32&type=section&id=13(ii)%20Amounts%20Recognized%20in%20the%20Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, depreciation expense for right-of-use assets was HK$8,991 thousand, interest expense was HK$537 thousand, and short-term lease expenses were HK$5,626 thousand Lease-Related Amounts Recognized in the Statement of Profit or Loss | Item | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Depreciation Expense of Right-of-Use Assets | 8,991 | 7,101 | | Interest Expense (Included in Finance Costs) | 537 | 743 | | Expenses Related to Short-Term Leases | 5,626 | 3,938 | [8.13.3 The Group's Leasing Activities](index=32&type=section&id=13(iii)%20The%20Group's%20Leasing%20Activities) The Group leases various properties with typical lease terms ranging from 2 to 20 years, and lease agreements do not impose covenants, nor can leased assets be used as collateral for borrowings - The Group leases various properties, with lease contracts typically ranging from **2 to 20 years**[77](index=77&type=chunk) - Lease agreements impose no covenants, except for security interests held by lessors in the leased assets, and **leased assets cannot be used as collateral for borrowings**[77](index=77&type=chunk) [8.14 Trade Receivables and Other Financial Assets Measured at Amortized Cost](index=33&type=section&id=14.%20Trade%20Receivables%20and%20Other%20Financial%20Assets%20Measured%20at%20Amortized%20Cost) As of June 30, 2025, the Group's net trade receivables were HK$401,737 thousand, and other financial assets measured at amortized cost were HK$20,172 thousand, with most sales having credit terms of 30-180 days Trade Receivables and Other Financial Assets | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade Receivables | 427,491 | 400,015 | | Less: Provision for Impairment Loss | (25,754) | (24,373) | | **Net Trade Receivables** | **401,737** | **375,642** | | Other Financial Assets Measured at Amortized Cost | 20,172 | 20,149 | | **Total** | **421,909** | **395,791** | - The **carrying amounts approximate their fair values**[78](index=78&type=chunk) - Most of the Group's sales are subject to **credit terms of 30–180 days**[79](index=79&type=chunk) Aging Analysis of Trade Receivables (June 30, 2025) | Aging | Amount (HK$ thousand) | | :--- | :--- | | 0–30 Days | 134,014 | | 31–60 Days | 128,184 | | 61–90 Days | 77,835 | | 91–120 Days | 25,326 | | 121–180 Days | 15,317 | | Over 180 Days | 46,815 | | **Total** | **427,491** | [8.15 Share Capital](index=34&type=section&id=15.%20Share%20Capital) As of June 30, 2025, the Company's issued and fully paid share capital was HK$42,916 thousand, with authorized share capital of HK$100,000 thousand; the Group has a share option scheme with 28,345,000 unexercised options at a weighted average exercise price of HK$1.335 at period-end [8.15.1 Share Capital](index=34&type=section&id=15(a)%20Share%20Capital) As of June 30, 2025, the Company's authorized share capital was 1,000,000,000 shares of HK$0.10 each, totaling HK$100,000 thousand; issued and fully paid share capital was 429,164,448 shares, totaling HK$42,916 thousand Share Capital Structure | Indicator | Number of Shares | Amount (HK$ thousand) | | :--- | :--- | :--- | | Authorized Share Capital (HK$0.10 par value per share) | 1,000,000,000 | 100,000 | | Issued and Fully Paid Share Capital (HK$0.10 par value per share) | 429,164,448 | 42,916 | [8.15.2 Equity-Settled Share-Based Payment Transactions](index=35&type=section&id=15(b)%20Equity-Settled%20Share-Based%20Payment%20Transactions) The Group operates a share option scheme; as of June 30, 2025, 28,345,000 share options remained unexercised with a weighted average exercise price of HK$1.335 and a weighted average contractual life of 1.2 years, with no options exercised during the period - As of June 30, 2025, **28,345,000 share options** granted under the former 2011 Share Option Scheme remained unexercised, valid, and exercisable[81](index=81&type=chunk) - A new share option scheme was adopted on May 24, 2024, valid for ten years, with the total number of shares that may be issued not exceeding **42,916,444 shares (10% of issued shares)**[81](index=81&type=chunk) - The exercise price of share options is the **highest of the nominal value of the share, the closing price on the offer date, and the average closing price of the preceding five trading days**[82](index=82&type=chunk) Share Option Movement | Indicator | January 1 & June 30, 2025 (thousand options) | Weighted Average Exercise Price (HK$) | | :--- | :--- | :--- | | Number of Share Options | 28,345 | 1.335 | | Vested Share Options | 28,345 | 1.335 | - As of June 30, 2025, the weighted average contractual life of the share options was **1.2 years**[84](index=84&type=chunk) - As of June 30, 2025, all **28,345,000 outstanding share options were exercisable**, and no share options were exercised during the period[85](index=85&type=chunk) [8.16 Trade and Other Payables](index=38&type=section&id=16.%20Trade%20and%20Other%20Payables) As of June 30, 2025, the Group's total trade and other payables were HK$387,144 thousand, with trade payables amounting to HK$168,273 thousand, primarily aged 0-30 days Trade and Other Payables | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade Payables | 168,273 | 188,009 | | Accrued Expenses and Other Payables | 218,871 | 240,581 | | **Total** | **387,144** | **428,590** | | Less: Other Non-current Payables | (22,812) | (26,394) | | **Current Portion** | **364,332** | **402,196** | Aging Analysis of Trade Payables (June 30, 2025) | Aging | Amount (HK$ thousand) | | :--- | :--- | | 0–30 Days | 111,170 | | 31–60 Days | 21,502 | | 61–90 Days | 15,038 | | Over 90 Days | 20,563 | | **Total** | **168,273** | [8.17 Borrowings](index=39&type=section&id=17.%20Borrowings) As of June 30, 2025, the Group's total borrowings were HK$195,047 thousand, primarily bank borrowings, with other borrowings including an unsecured loan from a shareholder's affiliate Borrowing Movement Analysis | Indicator | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Amount at Beginning of Period | 199,479 | 160,703 | | Repayment of Bank Borrowings | (44,963) | (30,558) | | Repayment of Other Borrowings | (7,469) | (9,958) | | Proceeds from Bank Borrowings | 48,000 | 30,000 | | Proceeds from Other Borrowings | – | 7,469 | | **Amount at End of Period** | **195,047** | **157,656** | Borrowing Composition (Current) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Bank Borrowings | 187,851 | 184,814 | | Other Borrowings | 7,196 | 14,665 | - Other borrowings refer to a loan from an affiliate of the Company's shareholder, New Era Cap Hong Kong LLC, with **HK$7,196,000 being unsecured, bearing an annual interest rate of 7%, and due for repayment on December 19, 2025**[89](index=89&type=chunk) [8.18 Commitments](index=40&type=section&id=18.%20Commitments) As of June 30, 2025, the Group had contracted but unprovided capital expenditure of HK$12,221 thousand, mainly for machinery, factory construction, and IT system upgrades; additionally, the Group had a remaining capital commitment of RMB17.5 million to a China fund [8.18.1 Capital Commitments](index=40&type=section&id=18(a)%20Capital%20Commitments) As of June 30, 2025, contracted but unprovided capital expenditure amounted to HK$12,221 thousand, primarily for machinery purchases, factory construction, and IT system upgrades Capital Commitments | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Contracted but Not Provided For | 12,221 | 10,307 | - The above commitments relate to capital expenditure for the **purchase of machinery, construction of a factory building, and upgrading of information technology systems**[92](index=92&type=chunk) [8.18.2 Other Commitments](index=40&type=section&id=18(b)%20Other%20Commitments) The Group has a remaining capital commitment of RMB16.0 million (approximately HK$17.5 million) to a China fund; the capital commitment to a Hong Kong fund was completed at period-end - As of June 30, 2025, the Group had a remaining capital commitment of **RMB16.0 million (approximately HK$17.5 million)** to a China fund[93](index=93&type=chunk) - The capital commitment of **US$0.5 million (approximately HK$3.9 million)** to a Hong Kong fund was completed as of June 30, 2025[93](index=93&type=chunk) [8.19 Significant Related Party Transactions](index=41&type=section&id=19.%20Significant%20Related%20Party%20Transactions) The Group engaged in various transactions with related parties, including sales of goods to a shareholder's affiliate, rental payments, claims expenses, and interest on borrowings; as of period-end, trade receivables from a shareholder's affiliate were HK$192,387 thousand, and borrowings payable were HK$7,196 thousand [8.19.1 Purchase and Sale of Goods and Services](index=41&type=section&id=19(a)%20Purchase%20and%20Sale%20of%20Goods%20and%20Services) The Group sold goods of HK$374,580 thousand to an affiliate of a shareholder and paid rent for office properties, rent to subsidiary shareholders, and claims expenses Related Party Transactions (Purchase and Sale of Goods and Services) | Item | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Sales of Goods to an Affiliate of a Shareholder | 374,580 | 315,467 | | Rent Paid for Office Properties to Directors and a Company Controlled by a Director | 101 | 101 | | Rent Paid for Office and Warehouse Properties to Subsidiary Shareholders | 2,088 | – | | Claims Expenses Paid to an Affiliate of a Shareholder | 292 | 1,190 | | Interest on Borrowings Provided by an Affiliate of a Shareholder | 327 | 1,153 | [8.19.2 Period-End Balances from Sale of Goods and Services](index=41&type=section&id=19(b)%20Period-End%20Balances%20from%20Sale%20of%20Goods%20and%20Services) As of period-end, trade receivables from an affiliate of a shareholder amounted to HK$192,387 thousand, primarily from sales transactions, with credit terms of 60 to 90 days, unsecured and non-interest bearing Period-End Balances from Sale of Goods and Services | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade Receivables from an Affiliate of a Shareholder | 192,387 | 185,370 | - These receivables are **unsecured and non-interest bearing**, and no provision has been made for them[95](index=95&type=chunk) [8.19.3 Period-End Balances from Borrowings](index=42&type=section&id=19(c)%20Period-End%20Balances%20from%20Borrowings) As of period-end, the outstanding balance of borrowings provided by an affiliate of a shareholder was HK$7,196 thousand Period-End Balances from Borrowings | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Borrowings Provided by an Affiliate of a Shareholder | 7,196 | 14,665 | [8.19.4 Key Management Personnel Remuneration](index=42&type=section&id=19(d)%20Key%20Management%20Personnel%20Remuneration) Total remuneration for key management personnel for the current period was HK$15,941 thousand, primarily consisting of short-term employee benefits Key Management Personnel Remuneration | Item | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Short-Term Employee Benefits | 15,866 | 14,380 | | Contributions to Retirement Schemes | 75 | 66 | | **Total** | **15,941** | **14,446** | [8.20 Approval of Interim Condensed Consolidated Financial Information](index=42&type=section&id=8.20%20Approval%20of%20Interim%20Condensed%20Consolidated%20Financial%20Information) This interim condensed consolidated financial information was approved by the Board of Directors on August 26, 2025 - This interim condensed consolidated financial information was **approved by the Board of Directors on August 26, 2025**[98](index=98&type=chunk) [Other Information Required by Listing Rules](index=43&type=section&id=Other%20Information%20Required%20by%20Listing%20Rules) This section provides additional information required by the Listing Rules, including directors' and major shareholders' interests in shares, details of the share option scheme, pre-emptive rights, purchases/sales/redemptions of the Company's listed securities, compliance with the Corporate Governance Code, and the Audit Committee's responsibilities [9.1 Directors' Interests in Shares and Underlying Shares](index=43&type=section&id=Directors'%20Interests%20in%20Shares%20and%20Underlying%20Shares) As of June 30, 2025, several directors held long positions in the Company's shares and underlying shares, with Mr. Yan Hei Cheung and Ms. Yan Po Ling collectively holding 65.23% interest, primarily through controlled corporations and share options Directors' Long Positions in the Company's Shares and Underlying Shares | Name | Personal Interest (shares) | Other Direct Interest (shares) | Underlying Shares (shares) | Total (shares) | % of Interest | | :--- | :--- | :--- | :--- | :--- | :--- | | Mr. Yan Hei Cheung | – | 232,583,400 | 47,040,000 | 279,623,400 | 65.23% | | Ms. Yan Po Ling | 39,698,400 | 192,885,000 | 47,040,000 | 279,623,400 | 65.23% | | Mr. James S. Patterson | – | – | 1,050,000 | 1,050,000 | 0.24% | | Mr. Yan Chiu Hon | – | – | 2,100,000 | 2,100,000 | 0.49% | | Mr. Lai Man Sing | – | – | 1,050,000 | 1,050,000 | 0.24% | - Mr. Yan Hei Cheung and Ms. Yan Po Ling ultimately and beneficially own **40% and 60% respectively of 192,885,000 shares** through Successful Years International Co., Ltd[99](index=99&type=chunk) - Mr. Yan Hei Cheung and Ms. Yan Po Ling are entitled to subscribe for **2,100,000 shares and 3,150,000 shares respectively** under unexercised share options granted under the Share Option Scheme[102](index=102&type=chunk) - Under the renewed Contingent Purchase Deed with NEHK, NEHK has the right to require Mr. Yan and Ms. Yan to purchase up to **41,790,000 shares**[99](index=99&type=chunk) [9.2 Share Option Scheme](index=44&type=section&id=Share%20Option%20Scheme) The Group operates a share option scheme to reward contributors; as of June 30, 2025, 28,345,000 share options remained unexercised, with directors holding 9,450,000 and employees holding 18,895,000 - As of June 30, 2025, **28,345,000 share options** remained unexercised, valid, and exercisable according to their respective grant terms[101](index=101&type=chunk) - A new share option scheme was adopted on May 24, 2024, valid for ten years, with the total number of shares that may be issued not exceeding **10% of the issued shares (42,916,444 shares)**[101](index=101&type=chunk) - The exercise price of share options is the **highest of the nominal value of the share, the closing price on the offer date, and the average closing price of the preceding five trading days**[103](index=103&type=chunk) - The share option scheme aims to allow the Group to grant share options to selected participants as a **reward or return for their contributions** to the Group[103](index=103&type=chunk) Directors' and Employees' Interests in Share Option Scheme (June 30, 2025) | Category | Grant Date | Exercise Price (HK$) | Number of Unexercised Shares | | :--- | :--- | :--- | :--- | | Directors | July 15, 2015 | 1.066 | 1,050,000 | | | April 13, 2017 | 1.460 | 8,400,000 | | **Total Directors** | | | **9,450,000** | | Employees | July 15, 2015 | 1.066 | 7,954,500 | | | April 13, 2017 | 1.460 | 10,940,500 | | **Total Employees** | | | **18,895,000** | | **Total** | | | **28,345,000** | [9.3 Major Shareholders](index=47&type=section&id=Major%20Shareholders) As of June 30, 2025, Ms. Yan Po Ling and Successful Years International Co., Ltd. were major shareholders, holding 9.25% and 44.94% of shares respectively; Mr. Christopher Koch and NEHK held 19.48% of shares and a short position of 41,790,000 underlying shares Major Shareholders' Long Positions in Shares and Underlying Shares | Name/Entity | Capacity | Number of Shares (shares) | % of Interest | | :--- | :--- | :--- | :--- | | Ms. Yan Po Ling | Personal Interest | 39,698,400 | 9.25% | | | Interest in Controlled Corporation | 192,885,000 | 44.94% | | **Total Ms. Yan Po Ling** | | **232,583,400** | **54.19%** | | Successful Years International Co., Ltd. | Beneficial Owner | 192,885,000 | 44.94% | | Mr. Christopher Koch | Interest in Controlled Corporation | 83,581,050 | 19.48% | | NEHK | Beneficial Owner | 83,581,050 | 19.48% | - Successful Years International Co., Ltd. is owned by Mr. Yan Hei Cheung and Ms. Yan Po Ling with **40% and 60% equity interests respectively**[106](index=106&type=chunk) - Mr. Christopher Koch owns **75% of the issued share capital of NEHK** and is therefore deemed to have an interest in the shares held by NEHK[106](index=106&type=chunk) Major Shareholders' Short Positions in Underlying Shares | Name/Entity | Number of Underlying Shares (shares) | Percentage | | :--- | :--- | :--- | | Mr. Christopher Koch | 41,790,000 | 9.74% | | NEHK | 41,790,000 | 9.74% | - NEHK has the right to sell up to **41,790,000 shares** to Mr. Yan Hei Cheung and Ms. Yan Po Ling under the renewed Contingent Purchase Deed, constituting a short position[107](index=107&type=chunk) [9.4 Pre-emptive Rights](index=48&type=section&id=Pre-emptive%20Rights) Neither the Company's Bye-laws nor Bermuda law contains pre-emptive rights provisions requiring the Company to offer new shares proportionally to existing shareholders - Neither the Company's Bye-laws nor Bermuda law contains **pre-emptive rights provisions** requiring the Company to offer new shares proportionally to existing shareholders[108](index=108&type=chunk) [9.5 Purchase, Sale or Redemption of the Company's Listed Securities](index=49&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) 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 securities - 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 securities**[109](index=109&type=chunk) [9.6 Corporate Governance Code](index=49&type=section&id=Corporate%20Governance%20Code) The Board believes that the Company has complied with the code provisions of the Corporate Governance Code as set out in Appendix 14 of the Listing Rules for the six months ended June 30, 2025 - The Board believes that for the six months ended June 30, 2025, the Company has **complied with the code provisions of the Corporate Governance Code** as set out in Appendix 14 of the Listing Rules[110](index=110&type=chunk) [9.7 Standard of Dealings by Directors in Securities](index=49&type=section&id=Standard%20of%20Dealings%20by%20Directors%20in%20Securities) The Company has adopted the Model Code as set out in Appendix 10 of the Listing Rules, and all directors have confirmed compliance with it during the period - The Company has adopted the **Model Code as set out in Appendix 10 of the Listing Rules**[111](index=111&type=chunk) - Following the Company's enquiry, all directors have confirmed their **compliance with the required standards** set out in the Model Code for the period ended June 30, 2025[111](index=111&type=chunk) [9.8 Audit Committee](index=49&type=section&id=Audit%20Committee) The Audit Committee, comprising all independent non-executive directors, is primarily responsible for reviewing and overseeing the Group's financial reporting and internal control procedures, and has reviewed this interim condensed consolidated financial information - The Audit Committee members include **all independent non-executive directors**[112](index=112&type=chunk) - The Audit Committee's primary responsibilities are to **review and oversee the Group's financial reporting and internal control procedures**[112](index=112&type=chunk) - The Audit Committee has **reviewed the interim condensed consolidated financial information** for the period ended June 30, 2025[112](index=112&type=chunk)

中州証券 Central China Securities Co., Ltd. (a joint stock company incorporated in 2002 in Henan Province, the People's Republic of China with limited liability under the Chinese corporate name " 中原證券股份有限公司 " and carrying on business in Hong Kong as " 中州證券 ") Stock Code 股份代號 : 01375 （2002 年於中華人民共和國河南省成立的股份有限公司，中文公司名稱為「中原證券股份有限公司」， 在香港以「中州證券」名義開展業務） 2025 INTERIM REPORT 中期報告 中州証券 Central China Securities Co., Ltd. Interim Report 2025 中期報告 中州証 券 Central China Securities Co., Ltd. 重要提示 本公司董事會及董事、高級管理人員保證半年度報告內容的真實性 ...

[Company Information](index=3&type=section&id=Company%20Information) This section provides an overview of the company's governance structure, including its board and committees, along with its registration and key operational locations [Board of Directors and Committees](index=3&type=section&id=Board%20of%20Directors%20and%20Committees) The Board of Directors, including executive and independent non-executive members, operates with audit, remuneration, nomination, and risk management committees to ensure sound corporate governance - The Board of Directors includes two executive directors and three independent non-executive directors, with Mr. Lian Yunzeng serving as Chairman[5](index=5&type=chunk) - The company has established audit, remuneration, nomination, and risk management committees to enhance corporate governance[5](index=5&type=chunk) [Registration and Business Locations](index=3&type=section&id=Registration%20and%20Business%20Locations) The company's registered office is in the Cayman Islands, with its PRC operational headquarters in Zhongshan, Guangdong, and its principal place of business in Hong Kong located in Sheung Wan - The registered office is in the Cayman Islands, the China operational headquarters is in Zhongshan, Guangdong, and the principal Hong Kong business location is in Sheung Wan[5](index=5&type=chunk) - Ernst & Young is the auditor, with primary banking relationships including Industrial and Commercial Bank of China, Bank of China, and Bangkok Bank (China) Co Ltd[6](index=6&type=chunk) - The company's stock code is **6898**, and its official website is www.euroasia-p.com[6](index=6&type=chunk) [Business Review](index=5&type=section&id=Business%20Review) This section reviews the group's principal business activities, revenue performance, operating environment, and strategic outlook [Principal Business and Revenue Performance](index=5&type=section&id=Principal%20Business%20and%20Revenue%20Performance) The Group primarily manufactures and sells monobloc aluminum aerosol cans for personal care and pharmaceutical products, with revenue declining 1.7% due to domestic overcapacity and US-China tariffs - The Group's core business is manufacturing and selling monobloc aluminum aerosol cans, used for personal care and pharmaceutical product packaging[8](index=8&type=chunk) Aluminum Aerosol Can Sales Revenue Comparison | Indicator | Six Months Ended June 30, 2025 (million HKD) | Six Months Ended June 30, 2024 (million HKD) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Sales Revenue | 117.6 | 119.7 | -1.7% | - The revenue decline is primarily attributed to intensified market competition from domestic industry overcapacity and a continuous decrease in overseas sales revenue due to the US-China tariff war[8](index=8&type=chunk) [Operating Environment and Strategic Outlook](index=5&type=section&id=Operating%20Environment%20and%20Strategic%20Outlook) The global economy faces geopolitical risks, commodity price volatility, and supply chain adjustments, while the domestic market contends with slow consumer confidence recovery and industry overcapacity - The global economy faces complex challenges including geopolitical risks, commodity price volatility, and supply chain adjustments[9](index=9&type=chunk) - The domestic market presents structural challenges such as slow consumer confidence recovery, overcapacity in some industries, and rising environmental compliance costs[9](index=9&type=chunk) - The Group's strategy includes strengthening its R&D system, deepening cooperation with key customers, optimizing production layout, accelerating production line upgrades, and actively participating in industry standard setting to achieve high-quality long-term development[10](index=10&type=chunk) [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a detailed financial review, liquidity and capital structure analysis, risk management strategies, and updates on employee and investment activities [Financial Review](index=6&type=section&id=Financial%20Review) The Group experienced year-on-year declines in revenue, gross profit, and net profit for the six months ended June 30, 2025, primarily due to increased market competition and lower product selling prices Key Financial Indicators Comparison (Six Months Ended June 30) | Indicator | 2025 (million HKD) | 2024 (million HKD) | Year-on-Year Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | 117.6 | 119.7 | -2.1 | -1.7% | | Cost of Sales | 87.5 | 84.2 | +3.3 | +3.9% | | Gross Profit | 30.1 | 35.4 | -5.3 | -15.0% | | Other Income and Gains | 5.2 | 4.5 | +0.7 | +16.0% | | Selling and Distribution Expenses | 1.7 | 2.1 | -0.4 | -19.6% | | Administrative Expenses | 9.8 | 11.4 | -1.6 | -14.6% | | Net Profit | 14.2 | 16.5 | -2.3 | -13.7% | Gross Profit Margin and Net Profit Margin Comparison (Six Months Ended June 30) | Indicator | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Gross Profit Margin | 25.6% | 30.0% | -4.4 percentage points | | Net Profit Margin | 12.1% | 13.8% | -1.7 percentage points | - The decrease in net profit is mainly due to intensified domestic market competition leading to lower product selling prices, alongside strict cost control measures to reduce general overheads[19](index=19&type=chunk) [Revenue and Customer Composition](index=6&type=section&id=Revenue%20and%20Customer%20Composition) The Group's revenue for the six months ended June 30, 2025, was 117.6 million HKD, a 1.7% decrease, with 61.8 million aluminum aerosol cans sold, and China contributing approximately 90% of total revenue Revenue and Sales Volume Comparison | Indicator | 2025 (Six Months Ended June 30) | 2024 (Six Months Ended June 30) | Change Rate | | :--- | :--- | :--- | :--- | | Revenue (million HKD) | 117.6 | 119.7 | -1.7% | | Sales Volume (million cans) | 61.8 | 68.6 | -9.9% | - The China market contributes approximately **90%** of the Group's total revenue, while overseas customer sales decreased by approximately **16.8%** year-on-year, primarily impacted by the US-China tariff war[12](index=12&type=chunk) [Cost and Profit Analysis](index=6&type=section&id=Cost%20and%20Profit%20Analysis) Cost of sales increased by 3.9% to 87.5 million HKD, representing 74.4% of revenue, primarily due to lower product selling prices, while gross profit decreased by 15% to 30.1 million HKD Cost and Profit Margin Changes | Indicator | 2025 (Six Months Ended June 30) | 2024 (Six Months Ended June 30) | Change Rate | | :--- | :--- | :--- | :--- | | Cost of Sales (million HKD) | 87.5 | 84.2 | +3.9% | | Cost of Sales as % of Revenue | 74.4% | 70.4% | +4.0 percentage points | | Gross Profit (million HKD) | 30.1 | 35.4 | -15.0% | | Gross Profit Margin | 25.6% | 30.0% | -4.4 percentage points | | Other Income and Gains (million HKD) | 5.2 | 4.5 | +16.0% | | Selling and Distribution Expenses (million HKD) | 1.7 | 2.1 | -19.6% | | Administrative Expenses (million HKD) | 9.8 | 11.4 | -14.6% | | Finance Costs (thousand HKD) | 6 | 9 | -33.3% | - The increase in cost of sales is mainly due to intensified market competition from domestic industry overcapacity, leading to lower product selling prices[13](index=13&type=chunk) - The increase in other income and gains is primarily due to the net effect of increased investment income[15](index=15&type=chunk) [Liquidity and Capital Structure](index=7&type=section&id=Liquidity%20and%20Capital%20Structure) The Group maintains sufficient cash and cash equivalents, with liquid assets increasing to 133.7 million HKD and cash doubling to 61.2 million HKD as of June 30, 2025, while the gearing ratio decreased to -21% - The Group adopts treasury policies to effectively control treasury operations and reduce borrowing costs, aiming to maintain sufficient cash and cash equivalents[20](index=20&type=chunk) Liquidity Indicators Comparison | Indicator | June 30, 2025 (million HKD) | December 31, 2024 (million HKD) | Change Rate | | :--- | :--- | :--- | :--- | | Current Assets | 133.7 | 109.4 | +22.2% | | Cash and Cash Equivalents | 61.2 | 30.6 | +100.0% | | Current Ratio | 5.3 | 5.4 | -1.9% | | Gearing Ratio | -21% | -9% | -12 percentage points | - As of June 30, 2025, the Group had available standby bank facilities of approximately **138.3 million HKD**, higher than **125.6 million HKD** as of December 31, 2024[22](index=22&type=chunk) - As of June 30, 2025, the total number of issued shares of the Company was **956,675,000 shares**, consistent with December 31, 2024[24](index=24&type=chunk) [Risk Management and Hedging Strategies](index=8&type=section&id=Risk%20Management%20and%20Hedging%20Strategies) The Group faces foreign exchange risk from currency mismatch between USD-denominated revenue and RMB-denominated production costs but did not enter into foreign currency forward contracts during the reporting period, nor did it engage in forward purchases of aluminum ingots due to price volatility - Approximately **10%** of the Group's revenue is denominated in USD, while over **95%** of its production costs are settled in RMB, creating foreign exchange risk due to currency mismatch[25](index=25&type=chunk) - For the six months ended June 30, 2025, the Group did not enter into any foreign currency forward contracts, nor did it have any outstanding foreign currency forward contracts[26](index=26&type=chunk) - Due to increased volatility in the commodity aluminum ingot market prices over the past six months, the Group did not engage in forward purchases of aluminum ingots during the reporting period[27](index=27&type=chunk)[28](index=28&type=chunk) [Employees and Investment Activities](index=9&type=section&id=Employees%20and%20Investment%20Activities) As of June 30, 2025, the Group's employee count increased to 277, with staff costs remaining at 15.6 million HKD, and no significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during the period Employee Count and Cost Comparison | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Number of Employees | 277 | 269 | +8 | | Staff Costs (million HKD) | 15.6 | 15.6 | 0 | - The Group had no significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during the reporting period[30](index=30&type=chunk)[31](index=31&type=chunk) [Use of Proceeds and Capital Commitments](index=9&type=section&id=Use%20of%20Proceeds%20and%20Capital%20Commitments) The expected timeline for utilizing the remaining net proceeds of 8.7 million HKD for a new R&D laboratory has been extended to December 31, 2026, due to design adjustments for new material research, while capital commitments for plant and machinery decreased Use of Proceeds from Prospectus | Business Objective | Actual Net Proceeds (million HKD) | Amount Utilized as of Dec 31, 2024 (million HKD) | Amount Utilized as of June 30, 2025 (million HKD) | Unutilized Balance as of June 30, 2025 (million HKD) | Expected Timeline for Unutilized Net Proceeds | | :--- | :--- | :--- | :--- | :--- | :--- | | Establishment of a new R&D laboratory | 8.7 | — | — | 8.7 | Before December 31, 2026 | - The R&D laboratory construction is delayed until December 31, 2026, as the original design needed to incorporate new material research requirements, and technical verification and plan adjustments took longer than expected[34](index=34&type=chunk) Capital Commitments Comparison | Item | June 30, 2025 (million HKD) | December 31, 2024 (million HKD) | Change | | :--- | :--- | :--- | :--- | | Plant and Machinery | 0.3 | 0.55 | -0.25 | [Post-Reporting Period Events and Convertible Notes](index=10&type=section&id=Post-Reporting%20Period%20Events%20and%20Convertible%20Notes) Subsequent to the reporting period, the company repurchased 37,628,000 shares for approximately 29.9 million HKD in July 2025, and amended convertible note terms with Mr. Lian Yunzeng, extending the maturity date to May 20, 2030, at an unchanged conversion price of 0.55 HKD per share July 2025 Share Repurchase Details | Year/Month | Number of Shares Repurchased | Highest Price Paid Per Share (HKD) | Lowest Price Paid Per Share (HKD) | Total Price Paid (HKD) | | :--- | :--- | :--- | :--- | :--- | | July 2025 | 37,628,000 | 0.87 | 0.72 | 29,897,460 | - The Board believes the share repurchase will benefit the company and create value for all shareholders, as the current trading price does not fully reflect the company's intrinsic value and business prospects[40](index=40&type=chunk) - The Company and Mr. Lian Yunzeng amended the convertible note terms, extending the maturity date by five years from May 20, 2025, to May 20, 2030, with the conversion price remaining at **0.55 HKD per share**[43](index=43&type=chunk) Dilutive Impact Upon Full Conversion of Convertible Notes | Major Shareholder | Number of Shares as of June 30, 2025 | Approximate Percentage of Issued Shares | Number of Shares Upon Full Conversion of Convertible Notes | Approximate Percentage of Issued Shares | | :--- | :--- | :--- | :--- | :--- | | Mr. Lian Yunzeng | 392,546,000 | 41.03% | 646,774,072 | 53.41% | | Wellmass International Limited | 268,000,000 | 28.01% | 268,000,000 | 22.13% | - For the six months ended June 30, 2025, basic earnings per share were **1.5 HK cents**, and diluted earnings per share were **1.2 HK cents**[46](index=46&type=chunk) [Review Report on Interim Condensed Consolidated Financial Statements](index=13&type=section&id=Review%20Report%20on%20Interim%20Condensed%20Consolidated%20Financial%20Statements) Ernst & Young reviewed China Aluminum Cans Holdings Limited's interim condensed consolidated financial information for the six months ended June 30, 2025, concluding no material matters were found inconsistent with International Accounting Standard 34 - Ernst & Young reviewed the interim financial information, performed in accordance with Hong Kong Standard on Review Engagements 2410[49](index=49&type=chunk)[50](index=50&type=chunk) - The review concluded that no matters were found indicating the interim financial information was not prepared, in all material respects, in accordance with International Accounting Standard 34[51](index=51&type=chunk) [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=14&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group reported revenue of 117,617 thousand HKD and a profit for the period of 14,209 thousand HKD, representing a 13.7% year-on-year decrease, with basic earnings per share of 1.5 HK cents Summary of Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | Change Rate | | :--- | :--- | :--- | :--- | | Revenue | 117,617 | 119,659 | -1.7% | | Gross Profit | 30,129 | 35,431 | -15.0% | | Profit Before Tax | 18,692 | 21,255 | -12.1% | | Profit for the Period | 14,209 | 16,473 | -13.7% | | Profit Attributable to Owners of the Parent | 13,956 | 16,189 | -13.8% | | Total Comprehensive Income for the Period | 17,517 | 12,664 | +38.3% | | Basic Earnings Per Share | 1.5 HK cents | 1.7 HK cents | -11.8% | | Diluted Earnings Per Share | 1.2 HK cents | 1.3 HK cents | -7.7% | - Total comprehensive income for the period significantly increased by **38.3%**, primarily due to a favorable shift from a loss to a gain in exchange differences arising from the translation of foreign operations[53](index=53&type=chunk) [Interim Condensed Consolidated Statement of Financial Position](index=15&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets less current liabilities were 276,177 thousand HKD, with net assets of 271,147 thousand HKD, reflecting an increase in total current assets and a significant rise in cash and cash equivalents Summary of Interim Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change Rate | | :--- | :--- | :--- | :--- | | Total Non-Current Assets | 167,631 | 173,580 | -3.4% | | Total Current Assets | 133,748 | 109,441 | +22.2% | | Total Current Liabilities | 25,202 | 20,348 | +23.8% | | Net Current Assets | 108,546 | 89,093 | +21.8% | | Total Assets Less Current Liabilities | 276,177 | 262,673 | +5.1% | | Total Non-Current Liabilities | 5,030 | 5,721 | -12.0% | | Net Assets | 271,147 | 256,952 | +5.5% | | Share Capital | 9,567 | 9,567 | 0% | | Reserves | 118,339 | 103,798 | +14.0% | | Total Equity | 271,147 | 256,952 | +5.5% | - Cash and cash equivalents nearly doubled from **30,621 thousand HKD** as of December 31, 2024, to **61,208 thousand HKD** as of June 30, 2025[55](index=55&type=chunk) - Trade and bills receivables increased by approximately **59.7%** from **27,260 thousand HKD** as of December 31, 2024, to **43,532 thousand HKD** as of June 30, 2025[55](index=55&type=chunk) [Interim Condensed Consolidated Statement of Changes in Equity](index=17&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, the Group's total equity increased from 256,952 thousand HKD to 271,147 thousand HKD, primarily driven by profit for the period and an increase in exchange fluctuation reserve, with dividends paid totaling 3,322 thousand HKD Summary of Interim Condensed Consolidated Statement of Changes in Equity | Indicator | December 31, 2024 (thousand HKD) | Profit for the Period (thousand HKD) | Total Comprehensive Income for the Period (thousand HKD) | Dividends Paid (thousand HKD) | June 30, 2025 (thousand HKD) | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Attributable to Owners of the Parent | 253,191 | 13,956 | 17,987 | (2,678) | 267,732 | | Non-Controlling Interests | 3,761 | 253 | 310 | (644) | 3,415 | | **Total Equity** | **256,952** | **14,209** | **18,297** | **(3,322)** | **271,147** | - The exchange fluctuation reserve improved from **(29,230) thousand HKD** as of December 31, 2024, to **(25,250) thousand HKD** as of June 30, 2025, reflecting a positive impact from exchange rate movements on equity[58](index=58&type=chunk) [Interim Condensed Consolidated Statement of Cash Flows](index=18&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, the Group reported net cash inflow from operating activities of 10,084 thousand HKD, net cash inflow from investing activities of 20,531 thousand HKD, and net cash outflow from financing activities of 801 thousand HKD, with cash and cash equivalents increasing to 61,208 thousand HKD at period-end Summary of Interim Condensed Consolidated Statement of Cash Flows | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Net Cash Inflow from Operating Activities | 10,084 | 25,534 | -60.5% | | Net Cash Inflow from Investing Activities | 20,531 | 23,673 | -13.3% | | Net Cash Outflow from Financing Activities | (801) | (65,975) | +98.8% | | Net Increase in Cash and Cash Equivalents | 29,814 | (16,768) | Turnaround to inflow | | Cash and Cash Equivalents at End of Period | 61,208 | 23,729 | +157.1% | - Net cash inflow from operating activities significantly decreased by **60.5%** year-on-year, primarily due to an increase in trade and bills receivables[59](index=59&type=chunk) - Net cash outflow from financing activities significantly reduced, mainly because there were share repurchase activities in 2024 but none in 2025[61](index=61&type=chunk) [Notes to the Interim Condensed Consolidated Financial Information](index=20&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) This section details the basis of preparation, changes in accounting policies, revenue and profit components, income tax, dividends, earnings per share, property, plant and equipment, trade receivables and payables, commitments, related party transactions, share capital, convertible notes, and post-reporting period events [Basis of Preparation and Changes in Accounting Policies](index=20&type=section&id=Basis%20of%20Preparation%20and%20Changes%20in%20Accounting%20Policies) The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 and should be read in conjunction with the annual consolidated financial statements, with no significant impact from newly adopted IFRS amendments - The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting"[62](index=62&type=chunk) - The newly adopted International Accounting Standard 21 (Amendment) "Lack of Exchangeability" had no impact on the interim condensed consolidated financial information for the current period[64](index=64&type=chunk) [Revenue and Components of Profit Before Tax](index=21&type=section&id=Revenue%20and%20Components%20of%20Profit%20Before%20Tax) The Group's revenue primarily derives from goods sales, totaling 117,617 thousand HKD for the six months ended June 30, 2025, with mainland China contributing the majority, and profit before tax calculated after deducting various expenses including staff costs of 15,613 thousand HKD Revenue Classification (Six Months Ended June 30) | Classification | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Sales of Goods | 117,617 | 119,659 | | Mainland China Market | 105,629 | 105,258 | | African Market | 1,281 | 845 | | Americas Market | 5,933 | 8,201 | | Asian Market | 4,774 | 5,355 | Profit Before Tax Adjustments (Six Months Ended June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Cost of Inventories Sold | 87,488 | 84,228 | | Provision for Write-down of Inventories to Net Realizable Value | 848 | (155) | | Net Impairment Loss on Financial Assets | 237 | (489) | | Depreciation of Property, Plant and Equipment | 8,107 | 8,418 | | Research and Development Costs | 4,594 | 4,803 | | Employee Benefit Expenses (Wages and Salaries) | 15,613 | 15,603 | [Income Tax and Dividends](index=22&type=section&id=Income%20Tax%20and%20Dividends) The Group's income tax expense for the six months ended June 30, 2025, was 4,483 thousand HKD, mainly from mainland China, and the Board proposed an interim dividend of 0.15 HK cents per share, lower than the prior year Income Tax Expense (Six Months Ended June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Current - Mainland China | 5,171 | 5,482 | | Deferred | (688) | (700) | | **Total** | **4,483** | **4,782** | Proposed Interim Dividend (Six Months Ended June 30) | Indicator | 2025 (per share) | 2024 (per share) | | :--- | :--- | :--- | | Dividend per Ordinary Share | 0.15 HK cents | 0.28 HK cents | | Total Dividend | 1,435 | 2,679 | [Earnings Per Share and Property, Plant and Equipment](index=23&type=section&id=Earnings%20Per%20Share%20and%20Property%2C%20Plant%20and%20Equipment) For the six months ended June 30, 2025, basic earnings per share attributable to owners of the parent was 1.5 HK cents, and diluted earnings per share was 1.2 HK cents, with a significant reduction in property, plant and equipment acquisition costs Earnings Per Share Calculation (Six Months Ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit Attributable to Owners of the Parent for Basic and Diluted EPS Calculation | 13,956 thousand HKD | 16,189 thousand HKD | | Weighted Average Number of Ordinary Shares for Basic EPS Calculation | 955,388,227 shares | 931,425,192 shares | | Dilutive Effect - Convertible Notes | 254,228,072 shares | 276,228,072 shares | | Adjusted Weighted Average Number of Ordinary Shares for Diluted EPS Calculation | 1,209,616,299 shares | 1,207,653,264 shares | Property, Plant and Equipment Movements (Six Months Ended June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Cost of Asset Acquisitions | 5 | 4,320 | | Net Book Value of Assets Disposed | 862 | 215 | | Net Loss on Disposal | 17 | 119 | - The Group recognized no impairment losses for the six months ended June 30, 2025, and 2024[74](index=74&type=chunk) [Trade and Bills Receivables and Payables](index=24&type=section&id=Trade%20and%20Bills%20Receivables%20and%20Payables) As of June 30, 2025, total trade and bills receivables significantly increased to 43,532 thousand HKD, with a substantial rise in receivables aged over 90 days, while trade and bills payables also increased to 8,738 thousand HKD Trade and Bills Receivables Comparison | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change Rate | | :--- | :--- | :--- | :--- | | Total Trade and Bills Receivables | 43,532 | 27,260 | +59.7% | | Net Book Value of Trade Receivables | 43,050 | 26,326 | +63.5% | | Trade Receivables Aged Over 90 Days | 13,143 | 2,418 | +443.5% | Trade and Bills Payables Comparison | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change Rate | | :--- | :--- | :--- | :--- | | Total Trade and Bills Payables | 8,738 | 5,913 | +47.8% | | Aged Within 30 Days | 6,221 | 4,716 | +31.9% | [Commitments and Related Party Transactions](index=25&type=section&id=Commitments%20and%20Related%20Party%20Transactions) As of June 30, 2025, the Group's contractual commitments for plant and machinery decreased to 296 thousand HKD, and it engaged in product sales and lease rental expense transactions with related parties, with outstanding balances remaining stable Contractual Commitments Comparison | Item | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change Rate | | :--- | :--- | :--- | :--- | | Plant and Machinery | 296 | 552 | -46.4% | Related Party Transactions (Six Months Ended June 30) | Transacting Party | Transaction Type | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | :--- | | Guangzhou Euroasia Aerosol & Daily Chemical Manufacturing Co Ltd | Sales of Products | 5,741 | 7,161 | | Mr. Lian Yunzeng | Lease Rental Expenses | 33 | 33 | - As of the end of the reporting period, the Group's outstanding balance of receivables from related companies controlled by the ultimate shareholder was **1,587 thousand HKD**, and payables were **13 thousand HKD**[79](index=79&type=chunk) [Share Capital and Convertible Notes](index=27&type=section&id=Share%20Capital%20and%20Convertible%20Notes) As of June 30, 2025, the company's issued and fully paid share capital remained at 9,567 thousand HKD, and the convertible note terms with Mr. Lian Yunzeng were revised to extend the maturity date to May 20, 2030, at an unchanged conversion price of 0.55 HKD per share Share Capital Information | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Authorized Ordinary Shares (0.1 HKD per share) | 1,500,000,000 shares | 1,500,000,000 shares | | Issued and Fully Paid Ordinary Shares (0.1 HKD per share) | 956,675,000 shares | 956,675,000 shares | | Share Capital (thousand HKD) | 9,567 | 9,567 | - The maturity date of the convertible notes has been extended by five years to May 20, 2030, with the conversion price maintained at **0.55 HKD per share**[82](index=82&type=chunk)[85](index=85&type=chunk) - If the convertible notes are fully exercised, it will result in an increase of **254,228,072 shares**, representing approximately **26.57%** of the company's issued share capital as of June 30, 2025[85](index=85&type=chunk) [Post-Reporting Period Events](index=28&type=section&id=Post-Reporting%20Period%20Events) Subsequent to the reporting period, the company repurchased 37,628,000 shares in July 2025 for a total of 29,897,460 HKD, with the Board believing this action will create value for the company and its shareholders July 2025 Share Repurchase Details | Year/Month | Number of Shares Repurchased | Highest Price Paid Per Share (HKD) | Lowest Price Paid Per Share (HKD) | Total Price Paid (HKD) | | :--- | :--- | :--- | :--- | :--- | | July 2025 | 37,628,000 | 0.87 | 0.72 | 29,897,460 | - The Board believes that the current trading price of the shares does not fully reflect the company's intrinsic value and business prospects, and the share repurchase will benefit the company and create value for shareholders[86](index=86&type=chunk) [Other Information](index=29&type=section&id=Other%20Information) This section covers directors' and major shareholders' interests, directors' benefits, share option schemes, corporate governance, compliance, dividends, and share registrar information [Directors' and Major Shareholders' Interests](index=29&type=section&id=Directors'%20and%20Major%20Shareholders'%20Interests) As of June 30, 2025, Chairman and Executive Director Mr. Lian Yunzeng held a 69.04% long position in the company's shares, including beneficial ownership and control through Wellmass International Limited, and also held convertible notes convertible into 254,228,072 shares Directors' Long Position in Shares (June 30, 2025) | Director Name | Number of Shares (Beneficial Owner) | Number of Shares (Controlled Corporation) | Total Number of Shares | Approximate Percentage of Issued Shares | | :--- | :--- | :--- | :--- | :--- | | Mr. Lian Yunzeng | 392,546,000 | 268,000,000 | 660,546,000 | 69.04% | Directors' Long Position in Shares Under Convertible Notes (June 30, 2025) | Convertible Note Holder Name | Principal Amount of Convertible Notes | Total Number of Relevant Shares | Approximate Percentage of Issued Shares | | :--- | :--- | :--- | :--- | | Mr. Lian | 139,825,440 HKD | 254,228,072 | 26.57% | Major Shareholders' Long Position in Shares (June 30, 2025) | Shareholder Name | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage of Issued Shares | | :--- | :--- | :--- | :--- | | Wellmass International Limited | Beneficial Owner | 268,000,000 | 28.01% | [Directors' Benefits and Share Option Schemes](index=31&type=section&id=Directors'%20Benefits%20and%20Share%20Option%20Schemes) During the reporting period, directors and their associated entities had no significant interests in material transactions or competing businesses, and while the company has several share option schemes, no options were granted, exercised, lapsed, or cancelled in this period - During the reporting period, no director or their associated entity had any significant interest in any material transaction, arrangement, or contract, nor did they engage in any competing business[97](index=97&type=chunk)[98](index=98&type=chunk) - The Pre-IPO Share Option Scheme has granted **17,490,000 share options** with an exercise price of **0.70 HKD**, but no options were granted, exercised, lapsed, or cancelled during the current period[100](index=100&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk) - The 2013 Share Option Scheme terminated on May 19, 2023, and the 2023 Share Option Scheme still has **90,178,500 options** available for grant, with no changes during the current period for either scheme[103](index=103&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk)[106](index=106&type=chunk) [Corporate Governance and Compliance](index=34&type=section&id=Corporate%20Governance%20and%20Compliance) The company maintains robust corporate governance through its audit, remuneration, nomination, and risk management committees, and while it generally complies with the Corporate Governance Code, the combined roles of Chairman and Chief Executive Officer represent a deviation, which the Board deems beneficial for leadership and efficiency - The audit, remuneration, nomination, and risk management committees have been established and are fulfilling their duties, ensuring corporate governance[107](index=107&type=chunk)[108](index=108&type=chunk)[109](index=109&type=chunk)[110](index=110&type=chunk) - The company deviates from Corporate Governance Code Provision C.2.1, where the roles of Chairman and Chief Executive Officer are combined by Mr. Lian Yunzeng, an arrangement the Board believes aids market leadership and decision-making efficiency[111](index=111&type=chunk) - The company maintained sufficient public float of not less than **25%** as required by the Listing Rules throughout the reporting period, and all directors complied with the Model Code for Securities Transactions by Directors of Listed Issuers[112](index=112&type=chunk)[113](index=113&type=chunk) [Dividends and Share Registrar](index=35&type=section&id=Dividends%20and%20Share%20Registrar) The Board has resolved to declare an interim dividend of 0.15 HK cents per share for the six months ended June 30, 2025, payable on or about October 28, 2025, with share registration suspended from September 5 to September 10, 2025, to determine eligibility Interim Dividend Declaration | Indicator | 2025 (per share) | 2024 (per share) | | :--- | :--- | :--- | | Interim Dividend | 0.15 HK cents | 0.28 HK cents | - The interim dividend will be paid on or about October 28, 2025, to shareholders whose names appear on the register of members on September 10, 2025[114](index=114&type=chunk) - Share registration will be suspended from September 5 to September 10, 2025, to determine eligibility for the interim dividend[115](index=115&type=chunk)