[Introduction and Definitions](index=2&type=section&id=Introduction%20and%20Definitions) This section provides an overview of the GEM market characteristics and disclaimers, along with definitions of key terms used throughout the report to ensure clarity [GEM Market Characteristics and Disclaimer](index=2&type=section&id=GEM%20Market%20Characteristics%20and%20Disclaimer) This section outlines the characteristics of the GEM market, highlighting its role as a listing platform for SMEs, the associated higher investment risks, and disclaimers from HKEX and the Stock Exchange, while affirming directors' full responsibility for the report's accuracy - The GEM market serves as a listing platform for small and medium-sized enterprises, entailing relatively higher investment risks and potential for significant market volatility in securities[3](index=3&type=chunk) - Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited bear no responsibility for the contents of this report and explicitly disclaim liability for any loss arising from its contents[3](index=3&type=chunk) - The Company's directors jointly and individually assume full responsibility for this report, confirming that the information contained herein is accurate and complete in all material respects, without misleading or fraudulent elements[3](index=3&type=chunk) [Definitions of Terms](index=3&type=section&id=Definitions%20of%20Terms) This section defines key terms used in the report, including company entities, committees, geographical regions, currencies, and relevant regulations, to ensure clear understanding of the content - The report defines 'the Company' as Yancheng Port International Co., Limited and 'the Group' as the Company and its subsidiaries[4](index=4&type=chunk) - 'The Period' refers to January 1, 2025, to June 30, 2025[5](index=5&type=chunk) - 'China/Mainland China' for the purpose of this report excludes Hong Kong, Macau Special Administrative Regions, and Taiwan[5](index=5&type=chunk) [Financial Summary and Condensed Consolidated Financial Statements](index=5&type=section&id=Financial%20Summary%20and%20Condensed%20Consolidated%20Financial%20Statements) This section presents the Group's financial highlights and condensed consolidated financial statements, including comprehensive income, financial position, equity changes, and cash flows for the period [Financial Highlights](index=5&type=section&id=Financial%20Highlights) The Group faced significant challenges in the first half of 2025, with total revenue decreasing by 25.47% year-on-year, and both loss before tax and loss attributable to owners of the Company increasing substantially, leading to an expanded loss per share Financial Highlights for H1 2025 | Indicator | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 514,700 | 690,500 | -25.47% | | Loss Before Tax | (26,800) | (18,100) | +48.00% | | Loss Attributable to Owners of the Company | (26,900) | (17,800) | +51.71% | | Loss Per Share (HK Cents) | (2.09) | (1.38) | +51.45% | [Condensed Consolidated Statement of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) The Group's revenue decreased by 25.47% year-on-year in H1 2025, with gross profit slightly increasing, but higher other losses and administrative expenses led to a 48.00% increase in loss before tax to HK$26,780 thousand, resulting in a loss for the period of HK$26,877 thousand Key Data from Condensed Consolidated Statement of Comprehensive Income | Indicator | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 514,654 | 690,507 | -25.47% | | Cost of Revenue | (513,268) | (689,223) | -25.53% | | Gross Profit | 1,386 | 1,284 | +7.94% | | Other (Losses)/Income | (4,354) | 1,802 | -341.62% | | Administrative Expenses | (13,742) | (9,929) | +38.40% | | Finance Costs | (10,070) | (11,251) | -10.49% | | Loss Before Tax | (26,780) | (18,094) | +48.00% | | Loss for the Period | (26,877) | (18,094) | +48.54% | | Loss Attributable to Owners of the Company | (26,941) | (17,758) | +51.71% | | Basic and Diluted Loss Per Share (HK Cents) | (2.09) | (1.38) | +51.45% | - Other (losses)/income shifted from a gain of **HK$1,802 thousand** in H1 2024 to a loss of **HK$(4,354) thousand** in H1 2025, primarily due to exchange losses[9](index=9&type=chunk)[34](index=34&type=chunk) [Condensed Consolidated Statement of Financial Position](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's current assets significantly increased, driven by higher trade and other receivables, but current liabilities also rose substantially, further expanding net current liabilities, while total assets less current liabilities and net liabilities both increased, reflecting challenging financial conditions Key Data from Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current Assets | 143,906 | 143,022 | +0.62% | | Current Assets | 516,003 | 174,486 | +195.73% | | Trade and Other Receivables | 510,337 | 169,518 | +201.05% | | Bank Balances and Cash | 5,666 | 4,968 | +14.05% | | Current Liabilities | 890,701 | 519,241 | +71.54% | | Trade and Other Payables | 763,815 | 365,829 | +108.80% | | Current Portion of Bank and Other Borrowings | 124,418 | 151,946 | -18.12% | | Net Current Liabilities | (374,698) | (344,755) | +8.68% | | Total Assets Less Current Liabilities | (230,792) | (201,733) | +14.40% | | Net Liabilities | (519,669) | (494,149) | +5.16% | | Total Deficit Attributable to Owners of the Company | (537,053) | (510,711) | +5.16% | - Trade and other receivables significantly increased from **HK$169,518 thousand** as of December 31, 2024, to **HK$510,337 thousand** as of June 30, 2025[12](index=12&type=chunk)[14](index=14&type=chunk) - Trade and other payables substantially increased from **HK$365,829 thousand** as of December 31, 2024, to **HK$763,815 thousand** as of June 30, 2025[14](index=14&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=10&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) The Group's total deficit attributable to owners of the Company further expanded as of June 30, 2025, primarily due to the loss for the period and changes in exchange fluctuation reserve, increasing from HK$(510,711) thousand as of December 31, 2024, to HK$(537,053) thousand Key Data from Condensed Consolidated Statement of Changes in Equity | Indicator | June 30, 2025 (HK$ Thousand) | January 1, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Share Capital | 12,880 | 12,880 | | Share Premium | 201,419 | 201,419 | | Capital Reserve | (7,337) | (7,337) | | Exchange Fluctuation Reserve | (7,668) | (8,229) | | Statutory Reserve | 1,720 | 1,720 | | Other Reserves | (9,151) | (9,151) | | Accumulated Losses | (728,916) | (656,885) | | Total Deficit Attributable to Owners of the Company | (537,053) | (465,583) | | Non-controlling Interests | 17,384 | 18,600 | | Total Deficit | (519,669) | (446,983) | - The loss attributable to owners of the Company for the period was **HK$26,941 thousand**, leading to a further increase in accumulated losses[15](index=15&type=chunk) - Exchange differences arising from translation of overseas operations resulted in a **HK$1,357 thousand** gain in H1 2025, compared to a **HK$4,484 thousand** loss in H1 2024[15](index=15&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) The Group's net cash used in operating activities significantly increased in H1 2025, while net cash used in investing activities slightly decreased, and financing activities shifted from a net outflow to a net inflow, primarily due to new advances from related companies, resulting in an increase in cash and cash equivalents at the end of the period Key Data from Condensed Consolidated Statement of Cash Flows | Indicator | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (75,537) | (40,409) | +86.93% | | Net Cash Used in Investing Activities | (610) | (1,990) | -69.35% | | Net Cash Generated From/(Used In) Financing Activities | 76,730 | (91,681) | +183.69% | | Net Increase/(Decrease) in Cash and Cash Equivalents | 583 | (134,080) | +100.43% | | Cash and Cash Equivalents at End of Period | 5,666 | 21,838 | -74.06% | - Net cash used in operating activities increased from **HK$(40,409) thousand** in H1 2024 to **HK$(75,537) thousand** in H1 2025, indicating increased pressure on operating cash flow[17](index=17&type=chunk) - Financing activities shifted from a net outflow of **HK$(91,681) thousand** in H1 2024 to a net inflow of **HK$76,730 thousand** in H1 2025, primarily due to new advances from related companies totaling **HK$116,283 thousand**[17](index=17&type=chunk) [Notes to the Unaudited Interim Financial Statements](index=12&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Financial%20Statements) This section provides detailed notes to the unaudited interim financial statements, covering company information, basis of preparation, segment details, revenue, expenses, and other financial disclosures [Company Information](index=12&type=section&id=Company%20Information) The Company was incorporated in the Cayman Islands as an exempted limited liability company on September 13, 2011, with its principal place of business located in Kowloon, Hong Kong - The Company was incorporated in the Cayman Islands on **September 13, 2011**[18](index=18&type=chunk) - Its principal place of business is located at Unit 1009, International Trade Centre, 33 Wang Chiu Road, Kowloon Bay, Kowloon, Hong Kong[18](index=18&type=chunk) [Basis of Preparation](index=12&type=section&id=Basis%20of%20Preparation) The interim financial statements are prepared in accordance with HKAS 34 "Interim Financial Reporting" issued by the HKICPA and applicable disclosure requirements of the GEM Listing Rules, applying the same accounting policies as the 2024 annual financial statements - The interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' and the GEM Listing Rules[19](index=19&type=chunk) - The accounting policies and methods of computation applied are consistent with those used in the audited annual financial statements for the year ended December 31, 2024[19](index=19&type=chunk) [Adoption of New/Revised HKFRSs](index=12&type=section&id=Adoption%20of%20New%2FRevised%20HKFRSs) The adoption of new/revised HKFRSs had no significant impact on the Group's results and financial position for current and prior accounting periods, and no early adoption of standards not yet effective occurred - The adoption of new/revised HKFRSs had no significant impact on the Group's results and financial position for the current and prior accounting periods[20](index=20&type=chunk) - The Group has not early adopted any new/revised HKFRSs that have been issued but are not yet effective for the current period[20](index=20&type=chunk) [Segment Information](index=13&type=section&id=Segment%20Information) The Group is primarily divided into two operating segments: trading business and petrochemical products storage business, based on which resources are allocated and performance is assessed. In H1 2025, trading business revenue significantly decreased but segment results turned profitable, while storage business revenue slightly declined and losses expanded - The Group's principal operating segments are trading business (trading of petrochemical products and soybean products, provision of supply chain management services) and petrochemical products storage business (provision of petrochemical products storage services)[23](index=23&type=chunk) [Operating Segments](index=13&type=section&id=Operating%20Segments) In H1 2025, trading business revenue decreased by 25.75% year-on-year, but segment results turned from loss to profit; petrochemical products storage business revenue decreased by 3.15% year-on-year, and segment losses expanded Operating Segment Revenue and Results | Indicator | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | **Trading Business** | | | | | Revenue (from external customers) | 506,156 | 681,724 | -25.75% | | Segment Results | 709 | (1,435) | +149.41% | | **Storage Business** | | | | | Revenue (from external customers) | 8,498 | 8,783 | -3.25% | | Segment Results | (6,904) | (6,554) | +5.34% | | **Total** | | | | | Total Revenue | 514,654 | 690,507 | -25.47% | | Loss Before Tax | (26,780) | (18,094) | +48.00% | - As of June 30, 2025, trading business segment assets were **HK$503,558 thousand**, and storage business segment assets were **HK$151,290 thousand**[28](index=28&type=chunk) - As of June 30, 2025, trading business segment liabilities were **HK$(570,149) thousand**, and storage business segment liabilities were **HK$(134,019) thousand**[28](index=28&type=chunk) [Geographical Segments](index=18&type=section&id=Geographical%20Segments) The Group primarily operates in China, thus no geographical segment information is presented, with all revenue from external customers attributed to China - The Group primarily operates in China, and all revenue from external customers is attributable to China[31](index=31&type=chunk) [Revenue](index=18&type=section&id=Revenue) The Group's revenue primarily derives from trading business and petrochemical products storage business, with trading business revenue decreasing by 25.75% year-on-year in H1 2025, while petrochemical products storage business revenue slightly declined by 3.25% Revenue by Category Analysis | Revenue Category | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue from Trading Business | 506,156 | 681,724 | -25.75% | | Revenue from Petrochemical Products Storage Business | 8,498 | 8,783 | -3.25% | | **Total** | **514,654** | **690,507** | **-25.47%** | [Other (Losses)/Income](index=19&type=section&id=Other%20(Losses)%2FIncome) The Group's other income turned from profit to loss in H1 2025, mainly due to exchange gains shifting to exchange losses, offsetting meager bank interest income and miscellaneous income Other (Losses)/Income Analysis | Item | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Bank Interest Income | 4 | 46 | -91.30% | | Exchange (Losses)/Gains | (4,362) | 1,753 | -348.89% | | Miscellaneous Income | 4 | 3 | +33.33% | | **Total** | **(4,354)** | **1,802** | **-341.62%** | - Exchange differences shifted from a **HK$1,753 thousand** gain in H1 2024 to a **HK$4,362 thousand** loss in H1 2025, which is the primary reason for the change from positive to negative in other (losses)/income[34](index=34&type=chunk) [Loss Before Tax](index=19&type=section&id=Loss%20Before%20Tax) The Group's loss before tax for H1 2025 was HK$26,780 thousand, primarily impacted by cost of revenue, administrative expenses, and finance costs, with finance costs slightly decreasing but staff costs significantly increasing Key Components of Loss Before Tax | Item | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | **Finance Costs** | | | | | Interest on Borrowings (repayable within five years) | 2,049 | 2,368 | -13.47% | | Interest on Listed Credit-Enhanced Guaranteed Bonds | 7,041 | 8,876 | -20.67% | | Interest on Lease Liabilities | 35 | 7 | +400.00% | | Interest on Loan from Former Associate | 945 | – | N/A | | **Total Finance Costs** | **10,070** | **11,251** | **-10.49%** | | **Other Items** | | | | | Cost of Inventories | 505,552 | 681,436 | -25.81% | | Depreciation of Property, Plant and Equipment | 5,982 | 6,044 | -1.03% | | Depreciation of Right-of-Use Assets | 501 | 534 | -6.20% | | **Staff Costs** | | | | | Salaries, Allowances and Other Short-Term Benefits | 7,588 | 5,802 | +30.78% | | Contributions to Defined Contribution Plans | 2,073 | 1,457 | +42.28% | | **Total Staff Costs** | **9,661** | **7,259** | **+33.09%** | - Total staff costs increased by **33.09%** from **HK$7,259 thousand** in H1 2024 to **HK$9,661 thousand** in H1 2025[35](index=35&type=chunk) [Taxation](index=20&type=section&id=Taxation) The Group incurred an income tax expense of HK$97 thousand in H1 2025, mainly due to under-provision for PRC enterprise income tax in prior periods, with no income tax arising in Hong Kong and Cayman Islands jurisdictions - Hong Kong profits tax is calculated under a two-tiered profits tax regime, but no assessable profits were derived by the Company or its Hong Kong subsidiaries, thus no income tax arose[36](index=36&type=chunk) - PRC enterprise income tax is calculated at the prevailing rate of **25%**[36](index=36&type=chunk) Income Tax Expense | Item | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | | :--- | :--- | :--- | | PRC Enterprise Income Tax - Under-provision in prior periods | 97 | – | | **Total Income Tax Expense Recognized in Profit or Loss** | **97** | **–** | [Dividends](index=21&type=section&id=Dividends) The Board of Directors does not recommend the payment of any interim dividend for the current period, consistent with the prior corresponding period - The Board does not recommend the payment of any interim dividend for the period (2024: nil)[40](index=40&type=chunk) [Loss Per Share](index=21&type=section&id=Loss%20Per%20Share) The Group's basic loss per share for H1 2025 was 2.09 HK cents, an increase from 1.38 HK cents in H1 2024, with basic and diluted loss per share being the same due to the absence of potential dilutive ordinary shares Loss Per Share Calculation | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Loss Attributable to Owners of the Company (HK$ Thousand) | (26,941) | (17,758) | | Weighted Average Number of Ordinary Shares in Issue | 1,288,000,000 | 1,288,000,000 | | **Basic Loss Per Share (HK Cents)** | **(2.09)** | **(1.38)** | - Basic and diluted loss per share are the same as the Company had no potential dilutive ordinary shares during the period[42](index=42&type=chunk) [Property, Plant and Equipment](index=22&type=section&id=Property%2C%20Plant%20and%20Equipment) The Group acquired property, plant and equipment items at a cost of approximately HK$640,000 in H1 2025, an increase from the prior corresponding period, with no related assets disposed of during the period - During the period, the Group acquired property, plant and equipment at a cost of approximately **HK$640,000**, an increase from approximately **HK$300,000** in H1 2024[43](index=43&type=chunk) - The Group did not dispose of any property, plant and equipment during the period or in H1 2024[43](index=43&type=chunk) [Trade and Other Receivables](index=22&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2025, the Group's trade and other receivables significantly increased by 201.05% to HK$510,337 thousand, primarily driven by third-party trade receivables; despite overdue amounts, management believes credit quality remains unchanged and amounts are fully recoverable Trade and Other Receivables | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Receivables - Third Parties | 456,851 | 117,029 | +290.37% | | Less: Loss Allowance | (3,514) | (3,514) | 0% | | Total Other Receivables | 57,000 | 56,003 | +1.78% | | **Total** | **510,337** | **169,518** | **+201.05%** | [Ageing Analysis of Trade Receivables](index=23&type=section&id=Ageing%20Analysis%20of%20Trade%20Receivables) As of June 30, 2025, the vast majority of the Group's trade receivables were within 90 days, though some amounts remained overdue for over 365 days Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Not Credit Impaired - Within 90 days | 449,373 | 107,727 | | Not Credit Impaired - Over 365 days | 3,964 | 5,788 | | Credit Impaired - Over 365 days | 3,514 | 3,514 | | **Total** | **456,851** | **117,029** | - The Group grants a maximum credit period of **90 days** to its trade debtors[46](index=46&type=chunk) [Credit Risk of Trade Receivables](index=24&type=section&id=Credit%20Risk%20of%20Trade%20Receivables) As of June 30, 2025, the Group had HK$3,964 thousand in trade receivables overdue for over 365 days but not impaired, which management believes are fully recoverable, and no collateral is held Summary of Trade Receivables Credit Risk | Status | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Not Credit Impaired - Not Past Due | 449,373 | 107,727 | | Not Credit Impaired - Past Due Over 365 days | 3,964 | 5,788 | | Credit Impaired - Past Due Over 365 days | 3,514 | 3,514 | | **Total** | **456,851** | **117,029** | - The Group had approximately **HK$3,964 thousand** (December 31, 2024: approximately **HK$5,788 thousand**) of trade receivables that were past due but not impaired, which management believes are fully recoverable[49](index=49&type=chunk) - The Group does not hold any collateral for these past due but not impaired balances[49](index=49&type=chunk) [Amounts Due from a Related Company](index=25&type=section&id=Amounts%20Due%20from%20a%20Related%20Company) As of June 30, 2025, amounts due from related company Smart Port totaled HK$11 thousand, which are unsecured, interest-free, and without fixed repayment terms Amounts Due from Related Company | Related Company | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Smart Port | 11 | 11 | - These amounts are unsecured, interest-free, and without fixed repayment terms[52](index=52&type=chunk) [Trade and Other Payables](index=26&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, the Group's trade and other payables significantly increased by 108.80% to HK$763,815 thousand, primarily driven by substantial growth in trade payables and amounts due to related companies Trade and Other Payables | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Payables | 284,715 | 10,200 | +2691.32% | | Total Other Payables | 479,100 | 355,629 | +34.72% | | **Total** | **763,815** | **365,829** | **+108.80%** | [Ageing Analysis of Trade Payables](index=26&type=section&id=Ageing%20Analysis%20of%20Trade%20Payables) As of June 30, 2025, the Group's trade payables within 90 days or less significantly increased, while some amounts remained overdue for over 365 days Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | 90 days or less | 276,718 | 40 | | Over 365 days | 7,997 | 10,160 | | **Total** | **284,715** | **10,200** | [Amounts Due to Related Companies](index=27&type=section&id=Amounts%20Due%20to%20Related%20Companies) As of June 30, 2025, amounts due to related companies totaled HK$435,804 thousand, a significant increase from December 31, 2024, primarily comprising amounts due to Dafeng Port Development Group, New Yu International Development Limited, and Dafeng Port (Hong Kong), most of which are unsecured, repayable on demand, and interest-free Amounts Due to Related Companies | Related Company | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Dafeng Port Development Group | 208,806 | 101,767 | | New Yu International Development Limited | 10,462 | 790 | | Dafeng Port (Hong Kong) | 216,536 | 212,403 | | **Total** | **435,804** | **314,960** | - The majority of amounts due to Dafeng Port Development Group are unsecured, repayable on demand, and interest-free, with some interest-bearing amounts repayable on specified dates[54](index=54&type=chunk) - Amounts due to New Yu International Development Limited and Dafeng Port (Hong Kong) are unsecured, repayable on demand, and interest-free[54](index=54&type=chunk) [Bank and Other Borrowings](index=28&type=section&id=Bank%20and%20Other%20Borrowings) As of June 30, 2025, the Group's total bank and other borrowings amounted to HK$411,868 thousand, a decrease from December 31, 2024, with the current portion decreasing and the non-current portion slightly declining, and most borrowings being unsecured but guaranteed or unsecured Total Bank and Other Borrowings | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Bank Loans | 10,940 | 42,315 | -74.16% | | Loans from Related Companies | 102,537 | 99,650 | +2.90% | | Listed Credit-Enhanced Guaranteed Bonds | 244,925 | 242,010 | +1.20% | | **Total Bank and Other Borrowings** | **411,868** | **442,975** | **-7.02%** | | Current Portion | 124,418 | 151,946 | -18.12% | | Non-current Portion | 287,450 | 291,029 | -1.23% | | Secured and Guaranteed | 19,339 | 25,871 | -25.25% | | Unsecured | 136,664 | 132,779 | +2.92% | | Unsecured but Guaranteed | 255,865 | 284,325 | -10.01% | - The current portion of bank loans significantly decreased from **HK$42,315 thousand** as of December 31, 2024, to **HK$10,940 thousand** as of June 30, 2025[55](index=55&type=chunk) - Listed credit-enhanced guaranteed bonds constitute the largest component of borrowings, primarily as non-current portions[55](index=55&type=chunk) [Share Capital](index=29&type=section&id=Share%20Capital) As of June 30, 2025, the Company's authorized and issued and fully paid share capital remained unchanged, maintaining at 10,000,000,000 shares and 1,288,000,000 shares, respectively Share Capital Structure | Type of Share Capital | Number of Shares | Par Value (HK$ Thousand) | | :--- | :--- | :--- | | Authorized Share Capital (HK$0.01 par value per share) | 10,000,000,000 | 100,000 | | Issued and Fully Paid (HK$0.01 par value per share) | 1,288,000,000 | 12,880 | - The Company's issued share capital remained unchanged during the period[57](index=57&type=chunk) [Related Party Transactions](index=30&type=section&id=Related%20Party%20Transactions) The Group's related party transactions in H1 2025 included lease expenses, while H1 2024 also included sales to Yancheng Port Finished Oil Co., Ltd Related Party Transactions | Transaction Type | Related Party | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | | :--- | :--- | :--- | :--- | | Sales | Yancheng Port Finished Oil Co., Ltd. | 0 | 9,985 | | Lease Expenses | Dafeng Port Development Group | 114 | 105 | - In H1 2025, the Group made no sales to Yancheng Port Finished Oil Co., Ltd., compared to **HK$9,985 thousand** in sales in H1 2024[58](index=58&type=chunk) [Key Management Personnel Remuneration](index=30&type=section&id=Key%20Management%20Personnel%20Remuneration) The Group's total remuneration for key management personnel (including directors) in H1 2025 was HK$2,801 thousand, a significant increase from H1 2024 Key Management Personnel Remuneration | Remuneration Category | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Salaries, Allowances and Other Short-Term Employee Benefits | 2,385 | 690 | +245.65% | | Contributions to Defined Contribution Plans | 416 | 12 | +3366.67% | | **Total** | **2,801** | **702** | **+299.00%** | - Total key management personnel remuneration significantly increased from **HK$702 thousand** in H1 2024 to **HK$2,801 thousand** in H1 2025[59](index=59&type=chunk) [Pledge of Assets/Bank and Other Facilities](index=31&type=section&id=Pledge%20of%20Assets%2FBank%20and%20Other%20Facilities) As of June 30, 2025, the Group's total utilized bank and other facilities amounted to HK$30,279 thousand, a decrease from December 31, 2024, with approximately HK$19.3 million in loans from a third party secured by petrochemical products storage equipment Bank and Other Facilities | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Total Bank and Other Facilities Granted to the Group | 54,700 | 85,056 | | Total Utilized Bank and Other Facilities | 30,279 | 68,186 | - As of June 30, 2025, loans of approximately **HK$19.3 million** from a third party were secured by petrochemical products storage equipment valued at approximately **HK$32.3 million**[60](index=60&type=chunk) [Commitments](index=31&type=section&id=Commitments) As of June 30, 2025, the Group's capital expenditure commitments (contracted but not provided for, net of deposits paid) amounted to approximately HK$221,763 thousand, primarily related to the construction of property, plant and equipment, a slight increase from December 31, 2024 Capital Expenditure Commitments | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Capital Expenditure Commitments Contracted but Not Provided For, Net of Deposits Paid for Construction of Property, Plant and Equipment | 221,763 | 212,862 | - Capital commitments primarily relate to the construction of property, plant and equipment[79](index=79&type=chunk) [Approval of Interim Financial Statements](index=31&type=section&id=Approval%20of%20Interim%20Financial%20Statements) The interim financial statements were approved and authorized for issue by the Board of Directors on August 26, 2025 - The interim financial statements were approved and authorized for issue by the Board of Directors on **August 26, 2025**[62](index=62&type=chunk) [Management Discussion and Analysis](index=32&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's discussion and analysis of the Group's performance, financial position, and future outlook, covering macroeconomic conditions, business and financial reviews, liquidity, capital structure, and risk factors [Macroeconomic Review](index=32&type=section&id=Macroeconomic%20Review) The global economy in H1 2025 was complex and volatile with fragmented growth, while domestic economic momentum remained weak; the Company will prudently monitor global dynamics to mitigate adverse external impacts and ensure stable operations - The global economic situation in H1 2025 was complex and volatile, with fragmented growth and a challenging recovery[63](index=63&type=chunk) - Domestic economic endogenous growth momentum remained weak, and the recovery process faced numerous challenges[63](index=63&type=chunk) - The Company will maintain a cautious approach, continuously monitoring global economic dynamics to mitigate adverse external impacts and achieve stable operations[63](index=63&type=chunk) [Business Review](index=32&type=section&id=Business%20Review) The Group primarily engages in trading and petrochemical products storage businesses; in H1 2025, trading business revenue significantly declined due to US-China tariff policies, while petrochemical products storage business revenue remained largely stable - During the period, the Group was primarily engaged in trading business and the provision of petrochemical products storage services[64](index=64&type=chunk) [Trading Business](index=32&type=section&id=Trading%20Business) The Group's trading business revenue in H1 2025 was approximately HK$506.2 million, a year-on-year decrease of about 25.75%, mainly due to reduced transaction volumes impacted by US-China tariff policies Trading Business Revenue | Indicator | H1 2025 (HK$) | H1 2024 (HK$) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Trading Business Revenue | 506,200,000 | 681,700,000 | -25.75% | - The decrease in trading business revenue was primarily due to the impact of US-China tariff policies, which led to reduced transaction volumes, thereby lowering trade scale and revenue[65](index=65&type=chunk) [Petrochemical Products Storage Business](index=32&type=section&id=Petrochemical%20Products%20Storage%20Business) The Group's petrochemical products storage business revenue in H1 2025 was approximately HK$8.5 million, a slight year-on-year decrease of about 3.25%, remaining largely consistent with the prior corresponding period Petrochemical Products Storage Business Revenue | Indicator | H1 2025 (HK$) | H1 2024 (HK$) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Petrochemical Products Storage Business Revenue | 8,500,000 | 8,800,000 | -3.41% | - This segment's revenue remained largely stable compared to H1 2024[66](index=66&type=chunk) [Financial Review](index=33&type=section&id=Financial%20Review) The Group's revenue decreased by 25.47% year-on-year in H1 2025, with a corresponding reduction in cost of revenue; gross profit margin improved to 0.27% due to new sales channel development and optimization, while finance costs remained largely stable, but both loss for the period and loss per share expanded Key Financial Performance Indicators | Indicator | H1 2025 (HK$) | H1 2024 (HK$) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 514,700,000 | 690,500,000 | -25.47% | | Cost of Revenue | 513,300,000 | 689,200,000 | -25.53% | | Gross Profit Margin | 0.27% | 0.19% | +42.11% | | Finance Costs | 10,100,000 | 11,300,000 | -10.53% | | Loss for the Period | 26,900,000 | 18,100,000 | +48.62% | | Loss Attributable to Owners of the Company | 26,900,000 | 17,800,000 | +51.12% | | Loss Per Share (HK Cents) | 2.09 | 1.38 | +51.45% | - The increase in gross profit margin was primarily due to the Group's proactive development of new sales channels and markets, optimization of existing channel structures, and enhanced bargaining power[68](index=68&type=chunk) [Liquidity and Financial Resources](index=34&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's net current liabilities expanded to HK$374.7 million, but the current ratio improved to 0.58; the gearing ratio improved from negative 89.6% to negative 79.3%, mainly due to a decrease in total interest-bearing borrowings Key Liquidity and Financial Resources Indicators | Indicator | June 30, 2025 (HK$) | December 31, 2024 (HK$) | Change (%) | | :--- | :--- | :--- | :--- | | Net Current Liabilities | 374,700,000 | 344,800,000 | +8.67% | | Amounts Due to Related Companies | 435,800,000 | 315,000,000 | +38.35% | | Current Ratio | 0.58 | 0.34 | +70.59% | | Total Interest-Bearing Borrowings | 411,900,000 | 443,000,000 | -7.02% | | Total Deficit | 519,700,000 | 494,100,000 | +5.18% | | Gearing Ratio | -79.3% | -89.6% | +11.50% | - The increase in the current ratio was a combined effect of increased trade and other receivables, bank balances and cash, trade and other payables, and a decrease in the current portion of bank and other borrowings[69](index=69&type=chunk) - The improvement in the gearing ratio was a combined effect of a **7.0%** decrease in total interest-bearing borrowings and a **5.2%** increase in total deficit[69](index=69&type=chunk) [Capital Structure](index=34&type=section&id=Capital%20Structure) As of June 30, 2025, the Group's total deficit attributable to owners of the Company was approximately HK$537.1 million, an increase from December 31, 2024, with no changes in issued share capital during the period Key Capital Structure Data | Indicator | June 30, 2025 (HK$) | December 31, 2024 (HK$) | Change (%) | | :--- | :--- | :--- | :--- | | Total Deficit Attributable to Owners of the Company | 537,100,000 | 510,700,000 | +5.17% | - The Company's issued share capital remained unchanged during the period[70](index=70&type=chunk) [Dividends](index=34&type=section&id=Dividends) The Board of Directors does not recommend the payment of any interim dividend for the current period, consistent with the prior corresponding period - The Board does not recommend the payment of any interim dividend for the period (2024: nil)[71](index=71&type=chunk) [Pledge of Assets](index=35&type=section&id=Pledge%20of%20Assets) The Group utilizes bank financing and other borrowings to fund business expansion; as of June 30, 2025, approximately HK$19.3 million in third-party loans were secured by petrochemical storage equipment valued at approximately HK$32.3 million - The Group utilizes bank financing and other borrowings to fund business expansion[73](index=73&type=chunk) - As of June 30, 2025, approximately **HK$19.3 million** in third-party loans were secured by petrochemical storage equipment valued at approximately **HK$32.3 million**[73](index=73&type=chunk) [Major Investments, Significant Acquisitions and Disposals](index=35&type=section&id=Major%20Investments%2C%20Significant%20Acquisitions%20and%20Disposals) During the period, the Company did not undertake any major investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures - During the period, the Company did not undertake any major investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures[74](index=74&type=chunk) [Future Plans for Material Investments or Capital Assets and Expected Funding Sources](index=35&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets%20and%20Expected%20Funding%20Sources) As of June 30, 2025, the Group had no future plans for material investments or capital assets and will continue to monitor the industry and review its business expansion plans - As of June 30, 2025, the Group had no future plans for material investments or capital assets[75](index=75&type=chunk) - The Group will continue to closely monitor the industry and regularly review its business expansion plans[75](index=75&type=chunk) [Outlook](index=35&type=section&id=Outlook) The Group anticipates slow and stable economic growth in H2 2025 and will adopt a prudent operating approach, seizing opportunities from Jiangsu Yancheng's integrated development, optimizing resources, and cautiously seeking investment opportunities - The Group anticipates slow and stable economic growth in H2 2025, with global inflation expectations continuing to moderate[76](index=76&type=chunk) - The Company will adopt a prudent approach to its existing businesses and actively seize opportunities from Jiangsu Yancheng's integrated development[76](index=76&type=chunk) - The Group will rationally reorganize and optimize resources, streamline and restructure resources, and cautiously seek investment opportunities[76](index=76&type=chunk) [Foreign Currency Risk](index=36&type=section&id=Foreign%20Currency%20Risk) The Group's income and expenses are primarily denominated in HKD, RMB, and USD, with foreign currency risk arising from trade receivables, payables, listed credit-enhanced bonds, and cash denominated in RMB and USD; the Group monitors risk by adjusting timing of foreign currency receipts and payments and matching balances, without using derivative financial instruments for hedging - The Group's income and expenses are primarily denominated in HKD, RMB, and USD[77](index=77&type=chunk) - Foreign currency risk arises from trade and other receivables, payables, listed credit-enhanced bonds, and cash and bank balances denominated in RMB and USD[77](index=77&type=chunk) - The Group primarily monitors foreign exchange risk by adjusting the timing of foreign currency receipts and payments and matching foreign currency income and expenditure balances, without using derivative financial instruments for hedging[77](index=77&type=chunk) [Employees and Remuneration Policy](index=36&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 89 employees, with total staff costs of approximately HK$9.7 million, a significant increase from the prior corresponding period; the Group reviews staff remuneration based on qualifications, experience, performance, and market levels, and provides relevant benefits Employees and Remuneration | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of Employees | 89 | 90 | | **Total Staff Costs (HK$)** | **9,700,000** | **7,300,000** | - The Group reviews remuneration for directors and employees based on qualifications, experience, performance, and market levels to maintain competitive compensation[78](index=78&type=chunk) [Capital Commitments](index=36&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group had capital expenditure commitments (contracted but not provided for, net of deposits paid) of approximately HK$221,763 thousand, primarily for the construction of property, plant and equipment Capital Commitments | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Capital Expenditure Commitments Contracted but Not Provided For | 221,763 | 212,862 | - Capital commitments primarily relate to the construction of property, plant and equipment[79](index=79&type=chunk) [Contingent Liabilities](index=37&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities (December 31, 2024: nil)[81](index=81&type=chunk) [Mandatory Unconditional Cash Offer](index=37&type=section&id=Mandatory%20Unconditional%20Cash%20Offer) Dafeng Port (Hong Kong) acquired a 60% equity interest in Yancheng Port Overseas from Top Billion Limited, Xingya Investment Group Limited, and Jiangsu Huahai Investment Co., Ltd., triggering a mandatory unconditional cash offer to acquire all issued shares at HK$0.48 per share; during the offer period, 314,815,000 offer shares, representing approximately 24.44% of the then issued share capital, were validly accepted - Dafeng Port (Hong Kong) acquired a **60%** equity interest in Yancheng Port Overseas for a total consideration of **US$60 million** (equivalent to **HK$471 million**)[82](index=82&type=chunk) - The offer price for the mandatory unconditional cash offer was **HK$0.48 per share**[82](index=82&type=chunk) - During the offer period, a total of **314,815,000** offer shares were validly accepted, representing approximately **24.44%** of the Company's then issued share capital[82](index=82&type=chunk) [Change of Company Name](index=38&type=section&id=Change%20of%20Company%20Name) The Company's English name changed from "Dafeng Port Heshun Technology Company Limited" to "Yancheng Port International Co., Limited," and its Chinese name from "大丰港和顺科技股份有限公司" to "盐城港国际股份有限公司," effective March 6, 2025 - The Company's English name changed from 'Dafeng Port Heshun Technology Company Limited' to 'Yancheng Port International Co., Limited'[83](index=83&type=chunk) - The Chinese name changed from '大丰港和顺科技股份有限公司' to '盐城港国际股份有限公司'[83](index=83&type=chunk) - The change of name became effective on **March 6, 2025**[83](index=83&type=chunk) [Changes in Directors and Board Committee Composition](index=38&type=section&id=Changes%20in%20Directors%20and%20Board%20Committee%20Composition) During the period and up to the date of this announcement, several changes occurred in the Board and Board committee composition, including the resignation of multiple non-executive directors, the appointment of Mr. Ji Yaosheng as Executive Director and Chief Executive Officer, and adjustments to the Chairman of the Board, Chairman of the Nomination Committee, and other committee members - Mr. Ji Longtao, Mr. Yang Yuexia, and Mr. Zhang Shukai resigned as non-executive directors[85](index=85&type=chunk) - Mr. Ji Yaosheng was appointed as an Executive Director and Chief Executive Officer of the Company, and as Chairman of the Nomination Committee and the Company's authorized representative under the GEM Listing Rules[85](index=85&type=chunk) - Mr. Zhao Liang resigned as Executive Director, Chairman of the Board, and other positions; Mr. Zhou Zhengxiong was appointed as a Non-executive Director, Chairman of the Board, and Chairman of the Nomination Committee; Mr. Lu Shuai was appointed as an Executive Director, Chairman of the Board, and Chairman of the Nomination Committee[85](index=85&type=chunk)[89](index=89&type=chunk) [Post-Balance Sheet Events](index=39&type=section&id=Post-Balance%20Sheet%20Events) Except as disclosed in this report, the Group had no significant post-balance sheet events up to the date of this report - Except as disclosed in this report, the Group had no significant post-balance sheet events subsequent to the period and up to the date of this report[88](index=88&type=chunk) [Corporate Governance and Other Information](index=40&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section details the Company's corporate governance practices and other relevant information, including directors' and substantial shareholders' interests, securities transactions, competing interests, and the audit committee's role [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company or any Associated Corporation](index=40&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20or%20any%20Associated%20Corporation) As of June 30, 2025, no directors or chief executives of the Company held any interests or short positions in the shares, underlying shares, or debentures of the Company or any associated corporation that required disclosure under the SFO or GEM Listing Rules - As of June 30, 2025, no directors or chief executives of the Company held any disclosable interests or short positions in the shares, underlying shares, or debentures of the Company or any associated corporation[90](index=90&type=chunk) [Convertible Securities, Warrants or Similar Rights](index=40&type=section&id=Convertible%20Securities%2C%20Warrants%20or%20Similar%20Rights) As of June 30, 2025, the Group had not issued or granted any convertible securities, warrants, or other similar rights - As of June 30, 2025, the Group had not issued or granted any convertible securities, warrants, or other similar rights[91](index=91&type=chunk) [Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares and Underlying Shares of the Company](index=41&type=section&id=Substantial%20Shareholders'%20and%20Other%20Persons'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) As of June 30, 2025, Yancheng Port Overseas, Dafeng Port (Hong Kong), Dafeng Port Development Group, Jiangsu Yancheng, and Yancheng Municipal People's Government were substantial shareholders of the Company, holding the majority of its issued share capital Shareholding of Substantial Shareholders | Shareholder Name | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage of the Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Yancheng Port Overseas | Beneficial Owner | 740,040,000 (L) | 57.46% | | Dafeng Port (Hong Kong) | Interest in Controlled Corporation / Beneficial Owner | 965,575,000 (L) | 74.97% | | Dafeng Port Development Group | Interest in Controlled Corporation | 965,575,000 (L) | 74.97% | | Jiangsu Yancheng | Interest in Controlled Corporation | 965,575,000 (L) | 74.97% | | Yancheng Municipal People's Government | Interest in Controlled Corporation | 965,575,000 (L) | 74.97% | - Dafeng Port (Hong Kong) is deemed to be interested in the Company's shares held by Yancheng Port Overseas[97](index=97&type=chunk) - Dafeng Port Development Group, Jiangsu Yancheng, and Yancheng Municipal People's Government are deemed to be interested in the Company's shares held by Yancheng Port Overseas and Dafeng Port (Hong Kong)[97](index=97&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=42&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[95](index=95&type=chunk) [Competing Interests](index=42&type=section&id=Competing%20Interests) Subsidiaries of the Company's controlling shareholder, Dafeng Port Development Group, engage in various goods trading businesses, posing potential competition to the Group's trading business; however, the Board believes this competitive threat is not significant due to differing product focus and target customers, and the Board operates independently of the controlling shareholder - Subsidiaries of the controlling shareholder, Dafeng Port Development Group (Yancheng Port Supply Chain and Yueda Logistics), engage in various goods trading businesses, posing potential competition to the Group's trading business[96](index=96&type=chunk) - The Board believes that the competitive threat is not significant as the Group and Dafeng Port Development Group focus on different product types and target different customers in the market[96](index=96&type=chunk) - The Board believes it can operate independently of Dafeng Port Development Group, as directors are prohibited from voting on matters involving conflicts of interest and are fully aware of their fiduciary duties[99](index=99&type=chunk) [Code of Conduct for Securities Transactions by Directors](index=43&type=section&id=Code%20of%20Conduct%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted a code of conduct for directors' securities transactions, with terms no less exacting than those required by the GEM Listing Rules, and no breaches were identified during the period after specific inquiries - The Company has adopted a code of conduct for securities transactions by directors, with terms no less exacting than those required by the GEM Listing Rules[100](index=100&type=chunk) - Following specific inquiries with all directors, the Company is not aware of any non-compliance with the required standards of dealing and the code of conduct for securities transactions by directors during the period[100](index=100&type=chunk) [Corporate Governance Code](index=44&type=section&id=Corporate%20Governance%20Code) The Company has complied with all code provisions of the Corporate Governance Code, including the separation of Chairman and Chief Executive Officer functions, which was clarified upon Mr. Ji Yaosheng's appointment as CEO - The Corporate Governance Code stipulates that the roles of Chairman and Chief Executive Officer must be separate and not performed by the same individual[101](index=101&type=chunk) - Mr. Ji Yaosheng was appointed as an Executive Director and Chief Executive Officer of the Company on **March 21, 2025**, prior to which the Company had not appointed a Chief Executive Officer[101](index=101&type=chunk) - The Directors believe that the Company has complied with all code provisions of the Corporate Governance Code during the period[101](index=101&type=chunk) [Audit Committee](index=44&type=section&id=Audit%20Committee) The Company's Audit Committee, comprising three independent non-executive directors, advises on external auditor appointment, reviews financial statements, financial reporting processes, and internal control and risk management systems; the Committee has reviewed the interim financial statements and found them compliant with applicable accounting standards and disclosure requirements - The Audit Committee comprises Mr. Liu Hanji (Chairman), Mr. Yu Xugang, and Ms. Xu Jingyang, all of whom are independent non-executive directors[102](index=102&type=chunk) - The Audit Committee's primary responsibilities include providing recommendations on the appointment and removal of external auditors, reviewing financial statements and related information, and overseeing the Group's internal control procedures and risk management systems[102](index=102&type=chunk) - The Audit Committee has reviewed the interim financial statements and considers them to be in compliance with applicable accounting standards, the GEM Listing Rules, and legal requirements, with appropriate disclosures made[102](index=102&type=chunk) [Acknowledgement](index=45&type=section&id=Acknowledgement) The Chairman of the Board, on behalf of the directors, extends sincere gratitude to all management, staff, business partners, customers, and shareholders for their support and contributions - The Chairman of the Board, on behalf of the directors, extends sincere gratitude to all management and staff for their dedicated contributions[104](index=104&type=chunk) - Appreciation is also extended to all business partners, customers, and shareholders for their continuous support[104](index=104&type=chunk) [Board Composition](index=45&type=section&id=Board%20Composition) As of the date of this report, the Board of Directors comprises three executive directors (including the Chairman and Vice Chairman), one non-executive director, and three independent non-executive directors Board Members | Category | Name | Position | | :--- | :--- | :--- | | **Executive Directors** | Mr. Lu Shuai | Chairman | | | Ms. Yuan Xin | Vice Chairman | | | Mr. Ji Yaosheng | | | **Non-executive Director** | Mr. Ding Anguang | | | **Independent Non-executive Directors** | Mr. Liu Hanji | | | | Mr. Yu Xugang | | | | Ms. Xu Jingyang | |

誠如二零二四年報「管理階層討論與分析」一節「配售」一段所披露，本公司已於二 零二四年六月十四日完成配售80,000,000股配售股份（「配售股份」）。按配售條款訂 定當日在聯交所所報的收市價0.141港元計算，配售股份的市價為11,280,000港元。 配售股份所得款項淨額已於截至二零二四年十二月三十一日止年度按計畫悉數使 用，即90%用於支持本集團建材供應鏈業務發展及10%用於本集團一般營運資金。 象 興 國 際 控 股 有 限 公 司 （ 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ） （股份代號：1732） 有關二零二四年報之補充公告 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部 分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 茲提述本公司截至二零二四年十二月三十一日止年度之年報（「二零二四年報」）。除 另有䫦明外，本公告所用詞彙與二零二四年年報中所界定者具有相同涵義。 本公司謹此就二零二四年報中有關二零二四年六月配售本公司股份補充以下額外資 料。 XIANGXING INTER ...

（於中華人民共和國註冊成立的股份有限公司） 股份代號：3698 2 0 2 5 中期報告 目錄 | | 釋義 | 4 | | --- | --- | --- | | 第一章 | 公司簡介 | 5 | | 第二章 | 會計數據和業務數據摘要 | 7 | | 第三章 | 管理層討論與分析 | 10 | | 第四章 | 股本變動及股東情況 | 63 | | 第五章 | 董事、監事、高級管理人員、員工和機構情況 | 74 | | 第六章 | 公司治理 | 81 | | 第七章 | 重要事項 | 85 | | 第八章 | 中期財務報告 | 90 | 2025 中期報告 徽商銀行股份有限公司 釋義 在本報告中，除非文義另有所指外，下列詞語具有如下涵義。 「內資股」 本行在中國發行的每股面值人民幣1.00元的普通股 「H股」 本行向境外投資人發行的、以人民幣標明股票價值、以港幣認購並在香港聯交所主板上 市的普通股 「報告期」 2025年半年度（2025年1月1日至2025年6月30日） 「IFRS」或 International Financial Reporting Standards，國際財務報告準則 「國際財務報告準 ...

www.harbourcentre.com.hk 集團業績 基礎淨虧損為港幣八千六百萬元（二○二四年：盈利港幣七千四百萬元），主要因為發展物 業計提應佔減值撥備增加至港幣二億一千一百萬元（二○二四年：港幣一億零三百萬元）。 若計入投資物業重估減值淨額港幣一億一千三百萬元（二○二四年：港幣八千二百萬元）， 股東應佔集團虧損則為港幣一億九千九百萬元（二○二四年：港幣八百萬元）。 每股基本虧損為港幣0.28元（二○二四年：港幣0.01元）。 中期股息 本公司董事會已議決不會就截至二○二五年六月三十日止半年度宣派任何中期股息（二○ 二四年：無）。 業務評議 期內本港的消費持續低迷，反映經濟前景不明朗仍然持續。同時，市民外遊依然鍾情於物 價具競爭優勢的周邊地區。上述因素給本港零售業和酒店業帶來重大壓力。 儘管如此，令人鼓舞的回穩跡象已開始出現。上半年訪港入境旅客同比上升12%，本港零 售銷售在五月份結束了新冠疫情後長期下滑的趨勢，較去年增長2.4%。若此趨勢持續，近 期的匯率變動可望進一步提振本地消費。 中國內地方面，由於經濟增長乏力且消費意欲疲弱，酒店業仍處逆風。區內旅遊目的地之 間競爭激烈，進一步加劇國內酒店企業的 ...

Financial Performance - For the six months ended June 30, 2025, the company's turnover was RMB 23,942 million, representing a year-on-year increase of 0.8%[19] - Profit attributable to shareholders for the same period reached RMB 5,789 million, a 23.0% increase compared to RMB 4,705 million in 2024[19] - Basic earnings per share increased to RMB 1.78 from RMB 1.45, reflecting a growth of 22.8%[13] - The gross profit margin improved by 2.0 percentage points to a record high of 48.9% due to the ongoing development of the premiumization strategy in the beer business[19] - Earnings before interest and taxation for the first half of 2025 amounted to RMB 7,691 million, marking a 20.8% increase from RMB 6,368 million in 2024[19] - The beer segment's earnings before interest and taxation rose by 13.8% to RMB 7,241 million, while the profit attributable to shareholders in this segment increased by 17.3%[19] - The Group's total comprehensive income for the period was RMB 5,735 million, compared to RMB 4,744 million in 2024, indicating an increase of 20.92%[64] - Profit before taxation for the six months ended June 30, 2025, was RMB 7,747 million, compared to RMB 6,414 million in 2024, representing a growth of 20.74%[63] - The profit for the period was RMB 5,757 million, an increase from RMB 4,733 million in the previous year, marking a growth of 21.66%[63][64] Cash Flow and Financial Position - Consolidated net cash reached RMB 7,382 million, significantly up from RMB 2,011 million in the previous year[13] - The current ratio improved to 0.83 from 0.60, indicating better short-term financial health[13] - As of June 30, 2025, the Group's consolidated net cash amounted to RMB 7,382,000,000, with borrowings totaling RMB 1,036,000,000[40] - Cash and cash equivalents increased significantly to RMB 8,384 million from RMB 3,816 million, marking a net increase of RMB 4,573 million[68] - Net cash from operating activities rose to RMB 6,373 million, compared to RMB 6,012 million in the same period last year[68] - The company incurred a net cash outflow of RMB 681 million from financing activities, a significant improvement from RMB 3,827 million in the previous year[68] - The net cash used in investing activities was RMB 1,119 million, slightly lower than RMB 1,167 million in the previous year[68] Equity and Dividends - The company's equity attributable to shareholders increased to RMB 36,201 million from RMB 31,692 million, a growth of 14.3%[13] - The Company declared dividends of RMB 1,258 million for the period ending June 30, 2025[70] - The retained profits increased to RMB 24,491 million as of June 30, 2025, compared to RMB 18,584 million as of January 1, 2024, indicating a growth of approximately 32.0%[70] - The total equity of the Company reached RMB 40,062 million as of June 30, 2025, reflecting an increase from RMB 34,174 million as of January 1, 2024[70] - The Company announced an interim dividend of RMB 0.464 per share for the six months ended June 30, 2025, compared to RMB 0.373 per share for the same period in 2024, representing an increase of approximately 24.4%[197] Operational Highlights - The Group's online business recorded nearly 40% year-on-year growth in gross merchandise volume (GMV) in the first half of 2025[32] - Beer sales volume was approximately 6,487,000 kilolitres, up 2.2% year-on-year, with premium beer products showing strong performance[26] - The beer business turnover was RMB 23,161,000,000, representing a year-on-year growth of 2.6%, with a gross profit margin of 48.3%[27] - The Group plans to continue executing its "Excellence in Development for Winning at Premiumisation" strategy to strengthen its competitive position[34] - The Group focused on business empowerment, talent development, and knowledge management as part of its strategic initiatives in 2025[58][60][61] Asset Management - As of June 30, 2025, total assets amounted to RMB 71,185 million, a decrease from RMB 69,308 million as of December 31, 2024[65] - The company reported a total equity of RMB 40,062 million, up from RMB 35,585 million as of December 31, 2024[67] - Fixed assets decreased slightly to RMB 17,714 million from RMB 18,124 million, while other intangible assets also saw a decline to RMB 7,894 million from RMB 8,258 million[65] - The consideration receivable as of June 30, 2025, was RMB 3,146 million, a decrease from RMB 3,672 million as of December 31, 2024, representing a decline of approximately 14.34%[106] Corporate Governance and Compliance - The auditor's report for the financial statements was unqualified, indicating no significant issues were raised[77] - The Company has sufficient resources to meet its liabilities and commitments, ensuring operational continuity for the foreseeable future[80] - The accounting policies applied are consistent with those used in the annual financial statements for the year ended December 31, 2024[81] - The Company has implemented its corporate governance standards since November 2003, with the latest revision of the Corporate Governance Practice Manual dated July 4, 2025[179] - The Board of Directors consists of two executive directors, three non-executive directors, and four independent non-executive directors, ensuring a balanced power structure[183] Market and Economic Context - The Chinese economy showed resilience in the first half of 2025, supported by effective policy measures, while market sentiment towards Hong Kong stocks improved[144] - The Group's operational performance remained resilient, focusing on premiumisation and high-quality development in emerging consumer scenarios[150] Risk Management - The Group's risk management and internal control systems were reviewed, with no significant concerns identified that could materially affect operations or financial reporting[140] - The Group's risk management process is designed to proactively identify and mitigate risks across all business segments[141] - The Group's existing risk management and internal control systems are deemed effective and adequate as of the latest review[140]

[Corporate Information](index=2&type=section&id=Corporate%20Information) [Board of Directors](index=3&type=section&id=Board%20of%20Directors) The company's board comprises one executive director and three independent non-executive directors, with audit, remuneration, and nomination committees, each chaired by an independent non-executive director - Executive Director: **SHUM Kit Lan Anita** [3](index=3&type=chunk) - Independent Non-Executive Directors: **HUNG Cho Sing**, **CHUNG Fai Chun**, **YU Tat Chi Michael** [3](index=3&type=chunk) - Audit Committee Chairman: **YU Tat Chi Michael** [3](index=3&type=chunk) - Remuneration Committee Chairman: **HUNG Cho Sing** [3](index=3&type=chunk) - Nomination Committee Chairman: **HUNG Cho Sing** [3](index=3&type=chunk) [Key Service Providers](index=3&type=section&id=Key%20Service%20Providers) This report lists the company's key service providers, including principal bankers, custodians, investment managers, auditors, registered office, Hong Kong principal place of business, and share registrars - Principal Bankers: **The Hongkong and Shanghai Banking Corporation Limited**, **Chong Hing Bank Limited** [4](index=4&type=chunk) - Investment Manager: **Guojin Securities (Hong Kong) Limited** [5](index=5&type=chunk) - Auditor: **Kaiyuan Xin De Certified Public Accountants Limited** [6](index=6&type=chunk) - Hong Kong Share Registrar: **Tricor Investor Services Limited** [7](index=7&type=chunk) [Condensed Consolidated Statement of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) [Financial Performance Overview](index=5&type=section&id=Financial%20Performance%20Overview) For the six months ended June 30, 2025, the Group achieved a net profit of HK$7,224 thousand, a significant improvement from the net loss of HK$45,922 thousand in the prior year, primarily due to fair value changes in listed equity instruments at fair value through profit or loss Condensed Consolidated Statement of Comprehensive Income Key Data (Six Months Ended June 30) | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Gross proceeds from disposal of trading securities | 1,736 | 1,466 | | (Loss)/gain on disposal of FVPL listed equity investments | (9,512) | 34 | | Revenue | 767 | 600 | | Other income | 3 | 2 | | Fair value change of FVPL listed equity instruments | 16,188 | (43,438) | | Reversal of impairment loss under expected credit loss model | 3,253 | – | | Other operating expenses | (3,475) | (3,120) | | Profit/(loss) before tax | 7,224 | (45,922) | | Income tax | – | – | | Profit/(loss) and total comprehensive loss for the period | 7,224 | (45,922) | | Earnings/(loss) per share - Basic and diluted | HK2.04 cents | HK(16.09 cents) | - Basic and diluted earnings per share for the period were **HK2.04 cents**, compared to a basic and diluted loss per share of **HK16.09 cents** for the same period in 2024 [11](index=11&type=chunk) [Condensed Consolidated Statement of Financial Position](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) [Asset and Liability Structure](index=7&type=section&id=Asset%20and%20Liability%20Structure) As of June 30, 2025, the Group's total net assets increased to HK$179,241 thousand, primarily driven by FVPL equity investments and debt investments at amortized cost, maintaining a robust net current asset position Condensed Consolidated Statement of Financial Position Key Data (As of June 30) | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | **Non-current assets** | | | | Debt investments at amortized cost | 25,081 | 18,314 | | **Current assets** | | | | Equity investments at fair value through profit or loss | 113,901 | 106,597 | | Deposits and prepayments | 2,607 | 1,338 | | Due from securities brokers | 1,745 | 4,358 | | Other receivables | 30,899 | 30,899 | | Bank balances and cash | 5,869 | 11,351 | | **Current liabilities** | | | | Other payables and accrued charges | 861 | 840 | | **Net assets** | 179,241 | 172,017 | | **Total equity** | 179,241 | 172,017 | - As of June 30, 2025, net current assets were **HK$154,160 thousand**, slightly higher than **HK$153,703 thousand** as of December 31, 2024 [12](index=12&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) [Equity Movements](index=8&type=section&id=Equity%20Movements) For the six months ended June 30, 2025, total equity attributable to owners of the company increased from HK$172,017 thousand at the beginning of the period to HK$179,241 thousand, mainly due to profit contribution for the period and lapse of share options Equity Movements Overview (Six Months Ended June 30) | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | **At January 1** | 172,017 | 170,304 | | Profit/(loss) and total comprehensive loss for the period | 7,224 | (45,922) | | Lapse of share options | – | – | | **At June 30** | 179,241 | 128,965 | - In the first half of 2025, the lapse of share options resulted in a **HK$9,982 thousand** decrease in the share option reserve and a corresponding increase in accumulated losses [13](index=13&type=chunk) - In the first half of 2024, the exercise of share options led to a **HK$15 thousand** increase in share capital, a **HK$6,601 thousand** increase in share premium, and a **HK$2,033 thousand** decrease in the share option reserve [14](index=14&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) [Cash Flow Summary](index=10&type=section&id=Cash%20Flow%20Summary) For the six months ended June 30, 2025, the Group's net cash used in operating activities was HK$5,482 thousand, compared to HK$2,615 thousand in the prior year, with cash and cash equivalents at period-end totaling HK$5,869 thousand Condensed Consolidated Statement of Cash Flows Key Data (Six Months Ended June 30) | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Net cash used in operating activities | (5,482) | (2,615) | | Net cash from financing activities | – | 4,583 | | Net increase/(decrease) in cash and cash equivalents | (5,482) | 1,968 | | Cash and cash equivalents at beginning of period | 11,351 | 1,978 | | Cash and cash equivalents at end of period | 5,869 | 3,946 | - In the first half of 2025, financing activities generated no net cash, whereas the same period in 2024 saw **HK$4,583 thousand** from share issuance [15](index=15&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [1. BASIS OF PREPARATION](index=11&type=section&id=1.%20BASIS%20OF%20PREPARATION) The interim financial statements are prepared in accordance with Appendix D2 of the HKEX Listing Rules and HKAS 34 "Interim Financial Reporting," applying consistent accounting policies and methods as the 2024 annual financial statements, with no significant impact from newly adopted HKFRSs - Interim financial statements are prepared in accordance with **Appendix D2 of the HKEX Listing Rules** and **HKAS 34** [16](index=16&type=chunk) - Accounting policies are consistent with the **2024 annual financial statements** [17](index=17&type=chunk) - The adoption of newly revised HKFRSs has not resulted in significant changes to the Group's accounting policies, financial statement presentation, or reported amounts for the period [18](index=18&type=chunk) [2. REVENUE AND OTHER INCOME](index=12&type=section&id=2.%20REVENUE%20AND%20OTHER%20INCOME) The Group's principal business is investing in listed and unlisted securities; for the six months ended June 30, 2025, revenue primarily comprised interest income from debt investments at amortized cost, with total revenue and other income reaching HK$770 thousand, an increase from the prior year Revenue and Other Income (Six Months Ended June 30) | Category | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Revenue: Interest income from debt investments at amortized cost | 767 | 600 | | Other income: Interest income from amounts due from brokers | 3 | 2 | | **Total** | **770** | **602** | - The Group's principal business is investing in **listed and unlisted securities** [20](index=20&type=chunk) [3. SEGMENT INFORMATION](index=12&type=section&id=3.%20SEGMENT%20INFORMATION) The Group operates in a single business segment, investing in listed and unlisted securities, thus no business segment information is presented; over 90% of revenue and non-current assets are derived from Hong Kong, so no geographical information is presented - The Group has only one business segment: **investing in listed and unlisted securities** [22](index=22&type=chunk) - Over **90% of revenue and non-current assets** are primarily derived from Hong Kong, hence no geographical information is presented [23](index=23&type=chunk)[25](index=25&type=chunk) [4. PROFIT/(LOSS) BEFORE TAX](index=13&type=section&id=4.%20PROFIT%2F(LOSS)%20BEFORE%20TAX) For the six months ended June 30, 2025, the Group recorded a profit before tax of HK$7,224 thousand, a significant improvement from the loss of HK$45,922 thousand in the prior year, with key costs including staff salaries, pension scheme contributions, and operating lease expenses Profit/(Loss) Before Tax Key Components (Six Months Ended June 30) | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Staff costs - Salaries | 867 | 852 | | Staff costs - Pension scheme contributions | 20 | 19 | | Operating lease expenses - Land and buildings | 97 | 94 | | Realized loss/(gain) on disposal of listed equity investments | 9,512 | (34) | | Unrealized (gain)/loss on listed equity investments | (16,188) | 43,438 | - Profit before tax for the period was **HK$7,224 thousand**, compared to a loss of **HK$45,922 thousand** in the prior year [11](index=11&type=chunk) [5. INCOME TAX](index=14&type=section&id=5.%20INCOME%20TAX) The Group incurred no assessable profits for the six months ended June 30, 2025, or the corresponding period in 2024, resulting in zero income tax - The Group generated no assessable profits for the current period or the six months ended June 30, 2024 [27](index=27&type=chunk)[30](index=30&type=chunk) [6. EARNINGS/(LOSS) PER SHARE](index=14&type=section&id=6.%20EARNINGS%2F(LOSS)%20PER%20SHARE) As of June 30, 2025, the company's basic and diluted earnings per share were HK2.04 cents, a significant improvement from the loss per share of HK16.09 cents in the prior year, reflecting enhanced performance for the period Earnings/(Loss) Per Share (Six Months Ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit/(loss) attributable to owners of the company | HK$7,224,000 | HK$(45,922,000) | | Basic and diluted earnings/(loss) per share | HK2.04 cents | HK(16.09 cents) | | Weighted average number of ordinary shares in issue | 354,818,016 | 285,324,537 | - For the six months ended June 30, 2025, the company had no potential dilutive ordinary shares [28](index=28&type=chunk) [7. DEBT INVESTMENT AT AMORTISED COST](index=15&type=section&id=7.%20DEBT%20INVESTMENT%20AT%20AMORTISED%20COST) As of June 30, 2025, debt investments at amortized cost totaled HK$25,081 thousand, primarily comprising unsecured bonds issued by Juntai Holdings Limited, with no coupon received or unrealized gains/losses from revaluation during the period Debt Investment at Amortized Cost (As of June 30) | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Unlisted debt investments | 26,000 | 20,000 | | Interest receivable | 1,691 | 924 | | Less: Provision for credit losses | (2,610) | (2,610) | | **Total** | **25,081** | **18,314** | - Primarily comprises unsecured bonds issued by **Juntai Holdings Limited** with a principal of **HK$20,000,000**, an annual interest rate of **6%**, and an **8-year maturity** [33](index=33&type=chunk)[35](index=35&type=chunk) - The carrying value of Juntai bonds is approximately **HK$18,914 thousand**, representing about **10.5%** of the company's total assets [34](index=34&type=chunk)[35](index=35&type=chunk) - For the six months ended June 30, 2025, no coupon was received, and no unrealized holding gains/losses arose from revaluation [34](index=34&type=chunk)[35](index=35&type=chunk) [8. EQUITY INVESTMENTS AT FVPL](index=16&type=section&id=8.%20EQUITY%20INVESTMENTS%20AT%20FVPL) As of June 30, 2025, the Group's FVPL equity investments totaled HK$113,901 thousand, mainly Hong Kong-listed equity investments, with a net fair value gain of approximately HK$16,188 thousand recognized during the period, but a net loss of approximately HK$9,512 thousand recognized on disposal FVPL Equity Investments Overview (As of June 30) | Category | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Hong Kong listed equity investments | 113,901 | 106,597 | - A net fair value gain of approximately **HK$16,188 thousand** was recognized during the period, while a net loss of approximately **HK$9,512 thousand** was recognized on the disposal of listed equity investments [39](index=39&type=chunk)[40](index=40&type=chunk) Major Listed Equity Investments (As of June 30, 2025) | Company Name | Stock Code | Fair Value/Market Value (HK$'000) | Approximate % of Total Assets | Unrealized Gain/(Loss) (HK$'000) | | :--- | :--- | :--- | :--- | :--- | | CMMB Vision Holdings Limited | 205 | 15,194 | 8.4% | 8,067 | | Juntai Holdings Limited | 630 | 11,764 | 6.5% | 6,536 | | China Integrated Holdings Limited | 1027 | 14,484 | 8.0% | (1,182) | | China Investment and Finance Group Limited | 1226 | 12,735 | 7.1% | 1,443 | | Well Long Holdings Limited | 8021 | 16,416 | 9.1% | (8,564) | [9. DUE FROM SECURITIES BROKERS](index=19&type=section&id=9.%20DUE%20FROM%20SECURITIES%20BROKERS) Amounts due from securities brokers represent deposits placed with brokers for trading listed investments, repayable on demand and interest-free; as of June 30, 2025, this amount was HK$1,745 thousand, a decrease from HK$4,358 thousand as of December 31, 2024 - Amounts due from securities brokers are deposits placed with brokers for trading listed investments [46](index=46&type=chunk)[48](index=48&type=chunk) - These amounts are repayable on demand and are interest-free [46](index=46&type=chunk)[48](index=48&type=chunk) Due from Securities Brokers (As of June 30) | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Due from securities brokers | 1,745 | 4,358 | [10. SHARE CAPITAL](index=19&type=section&id=10.%20SHARE%20CAPITAL) As of June 30, 2025, the company's issued and fully paid share capital was HK$355 thousand, comprising 354,818,000 ordinary shares, following a placement of 59,136,000 new shares completed in October 2024 Share Capital Movements (As of June 30) | Indicator | 2025 (Thousand Shares) | 2025 (HK$'000) | | :--- | :--- | :--- | | Authorized share capital | 2,000,000 | 2,000 | | Issued and fully paid at January 1, 2024 | 281,182 | 281 | | Shares issued upon exercise of share options | 14,500 | 15 | | Shares issued under placement | 59,136 | 59 | | Issued and fully paid at June 30, 2025 | 354,818 | 355 | - On October 30, 2024, the company completed a placement of **59,136,000 shares** at **HK$0.24 per share**, raising approximately **HK$14.2 million** before expenses [52](index=52&type=chunk)[56](index=56&type=chunk) [11. SHARE OPTION SCHEME](index=20&type=section&id=11.%20SHARE%20OPTION%20SCHEME) The company's share option scheme expired on April 30, 2023, with no outstanding share options as of June 30, 2025, and no new share options granted during the period - The share option scheme expired on **April 30, 2023**, and no new scheme has been adopted as of the report date [53](index=53&type=chunk)[57](index=57&type=chunk) - As of June 30, 2025, there are **no outstanding share options** [67](index=67&type=chunk)[71](index=71&type=chunk) Share Option Scheme Movements (Six Months Ended June 30, 2025) | Category | Grant Date | Exercise Price | Option Period | Number of Options Held at Jan 1, 2025 | Number of Options Granted During Period | Number of Options Exercised During Period | Number of Options Cancelled/Lapsed During Period | Number of Options Held at Jun 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Employees (Total) | May 12, 2022 | HK$0.800 | Three years from grant date | 19,250,000 | – | – | (19,250,000) | – | | Employees (Total) | June 28, 2022 | HK$0.780 | Three years from grant date | 5,500,000 | – | – | (5,500,000) | – | | **Total** | | | | **24,750,000** | **–** | **–** | **(24,750,000)** | **–** | [12. CHARGE OF ASSETS AND MARGIN FACILITIES](index=23&type=section&id=12.%20CHARGE%20OF%20ASSETS%20AND%20MARGIN%20FACILITIES) As of June 30, 2025, the Group has margin facilities from several regulated securities brokers, secured by equity instruments and investments held for trading, but these facilities remain unutilized - The Group has obtained margin facilities from several regulated securities brokers [69](index=69&type=chunk)[72](index=72&type=chunk) - The facilities are secured by the Group's equity instruments and investments held for trading [69](index=69&type=chunk)[72](index=72&type=chunk) - As of June 30, 2025, and December 31, 2024, the Group had not utilized these facilities [69](index=69&type=chunk)[72](index=72&type=chunk) [13. CONTINGENT LIABILITIES](index=23&type=section&id=13.%20CONTINGENT%20LIABILITIES) The company provides corporate guarantees for a subsidiary's securities trading accounts with brokers, which were unutilized as of June 30, 2025, and December 31, 2024, and directors believe the likelihood of claims under any guarantee is remote - The company provides corporate guarantees for a subsidiary's securities trading accounts [70](index=70&type=chunk)[73](index=73&type=chunk) - The guarantees were unutilized as of June 30, 2025, and December 31, 2024 [70](index=70&type=chunk)[73](index=73&type=chunk) - Directors believe the likelihood of claims against the company due to any guarantee is remote [70](index=70&type=chunk)[73](index=73&type=chunk) [14. RELATED PARTY TRANSACTIONS](index=24&type=section&id=14.%20RELATED%20PARTY%20TRANSACTIONS) During the period, the Group engaged in related party transactions including investment management fee payments and key management personnel compensation; the investment manager changed from Evergrande Securities (Hong Kong) Limited to Guojin Securities (Hong Kong) Limited Related Party Transactions (Six Months Ended June 30) | Related Party | Transaction Type | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | :--- | | Evergrande Securities (Hong Kong) Limited (Former Investment Manager) | Investment management fees paid | – | 300 | | Guojin Securities (Hong Kong) Limited (Current Investment Manager) | Investment management fees paid | 179 | – | Key Management Personnel Compensation (Six Months Ended June 30) | Compensation Category | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Short-term benefits | 600 | 600 | | Post-employment benefits | 9 | 9 | | **Total** | **609** | **609** | [Management Discussion and Analysis](index=24&type=section&id=Management%20Discussion%20and%20Analysis) [INTERIM DIVIDEND](index=25&type=section&id=INTERIM%20DIVIDEND) The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board does not recommend the payment of an interim dividend for the first half of 2025 [77](index=77&type=chunk)[81](index=81&type=chunk) - No dividend was distributed for the same period in 2024 [77](index=77&type=chunk)[81](index=81&type=chunk) [RESULTS](index=25&type=section&id=RESULTS) The Group recorded a net profit of approximately HK$7.2 million in the first half of 2025, a significant improvement compared to a net loss of approximately HK$45.9 million in the prior year, primarily driven by overall gains from listed equities Results Overview (Six Months Ended June 30) | Indicator | 2025 (HK$ million) | 2024 (HK$ million) | | :--- | :--- | :--- | | Net profit/(loss) | 7.2 | (45.9) | | Total gain/(loss) from listed equities | 6.7 | (43.4) | | Basic and diluted earnings/(loss) per share | HK2.04 cents | HK(16.09 cents) | - The improved performance is mainly attributable to a total gain from listed equities of approximately **HK$6.7 million** during the period [78](index=78&type=chunk)[82](index=82&type=chunk) [BUSINESS REVIEW](index=25&type=section&id=BUSINESS%20REVIEW) As an investment company, the company primarily engages in listed investments in Hong Kong and other major global stock markets, as well as unlisted investments, aiming for medium to long-term capital appreciation; with improved market conditions during the period, the Board continues to focus on Hong Kong-listed equity investments and prudently seeks new opportunities - The company primarily engages in **listed and unlisted securities investments**, targeting medium to long-term capital appreciation [79](index=79&type=chunk)[83](index=83&type=chunk) - Improved market conditions led to a net realized loss of approximately **HK$9.5 million** (2024: gain of HK$34 thousand) and a net unrealized gain of approximately **HK$16.2 million** (2024: loss of HK$43.4 million) from listed equity investments [80](index=80&type=chunk)[83](index=83&type=chunk) - The Board maintains a diversified investment portfolio covering various sectors including finance, consumer goods, media, and manufacturing [84](index=84&type=chunk)[88](index=88&type=chunk) [Significant Investments](index=26&type=section&id=Significant%20Investments) The Group's significant investments include a debt investment and several major listed equity investments, with unlisted bonds from Juntai Holdings Limited and various Hong Kong-listed stocks forming key components, representing a substantial portion of the Group's total net assets - The investment portfolio primarily includes a listed equity portfolio of **HK$113.9 million** across **31 companies** (approximately **63.5%** of consolidated net assets) and **3 direct unlisted debt investments** totaling **HK$25.1 million** (approximately **14.0%** of consolidated net assets) [85](index=85&type=chunk)[88](index=88&type=chunk) - The main unlisted debt investment is a bond issued by **Juntai Holdings Limited** (stock code: 630), a company with diversified businesses and sound financial health, showing no signs of default [86](index=86&type=chunk)[87](index=87&type=chunk)[89](index=89&type=chunk) Major Listed Equity Investments Overview (As of June 30, 2025) | Company Name | Stock Code | % of Total Assets | Unrealized Gain/(Loss) (HK$ million) | Principal Business and Outlook | | :--- | :--- | :--- | :--- | :--- | | CMMB Vision Holdings Limited | 205 | 8.4% | 8.1 | Advertising agency, securities brokerage, money lending; actively developing digital media marketing and MCN businesses | | Juntai Holdings Limited | 630 | 6.5% | 6.5 | Medical products, plastic molds, money lending, securities investment; optimizing business portfolio, exploring new growth potential | | China Integrated Holdings Limited | 1027 | 8.0% | (1.2) | Umbrella manufacturing and sales; shifting business focus to downstream distribution and brand building | | China Investment and Finance Group Limited | 1226 | 7.1% | 1.4 | Securities trading; focusing on the Chinese economy, prudently managing investment portfolio | | Well Long Holdings Limited | 8021 | 9.1% | (8.6) | Scaffolding, fitting-out, money lending, securities investment; adapting to market changes, leveraging public projects and real estate market opportunities | [Segment Information](index=30&type=section&id=Segment%20Information) The Group's investment segment, primarily comprising listed and unlisted securities investments, experienced no significant changes during the period - The Group's investment segment (primarily listed and unlisted securities investments) experienced no significant changes during the period [100](index=100&type=chunk)[102](index=102&type=chunk) [Performance of the Group's Listed Securities](index=30&type=section&id=Performance%20of%20the%20Group's%20Listed%20Securities) Net gain from listed securities for the period was approximately HK$6.7 million, consisting of a net realized loss of HK$9.5 million and a net unrealized gain of HK$16.2 million, with China 33 Media Group Limited significantly impacting both realized losses and unrealized gains - Net gain from listed securities for the period was approximately **HK$6.7 million** [103](index=103&type=chunk) - Comprised of a net realized loss of approximately **HK$9.5 million** from disposal of listed securities and a net unrealized gain of approximately **HK$16.2 million** from listed securities [103](index=103&type=chunk) Major Realized Losses (Six Months Ended June 30) | Company Name | Stock Code | Realized Loss (HK$ million) | | :--- | :--- | :--- | | China 33 Media Group Limited | 8087 | 9.4 | Major Unrealized Gains (Six Months Ended June 30) | Company Name | Stock Code | Unrealized Gain (HK$ million) | | :--- | :--- | :--- | | China 33 Media Group Limited | 8087 | 10.2 | | CMMB Vision Holdings Limited | 205 | 8.1 | | Juntai Holdings Limited | 630 | 6.5 | | Huicui International (Holdings) Limited | 8041 | 4.7 | Major Unrealized Losses (Six Months Ended June 30) | Company Name | Stock Code | Unrealized Loss (HK$ million) | | :--- | :--- | :--- | | Well Long Holdings Limited | 8021 | 8.6 | | Hao Wen Holdings Limited | 8019 | 2.7 | [PROSPECTS](index=32&type=section&id=PROSPECTS) The first half of 2025 saw a global investment market theme of declining USD exchange rates, with both the Dow Jones Industrial Average and Hang Seng Index recording gains; despite a complex US economic outlook, China's economy performed strongly driven by high-end manufacturing, and the Group will continue to focus on opportunities in the US, China, and Hong Kong markets with a conservative investment strategy to enhance shareholder value - The main theme of the global investment market in the first half of 2025 was the generally anticipated decline in the USD exchange rate [112](index=112&type=chunk)[114](index=114&type=chunk) Major Stock Index Performance (End of 2024 to June 30, 2025) | Index | Points at End of 2024 | Points at June 30, 2025 | Increase | | :--- | :--- | :--- | :--- | | Dow Jones Industrial Average (DJI) | 42,544 | 44,095 | 3.6% | | Hang Seng Index (HSI) | 20,060 | 24,072 | 20% | - US economic activity is slowing, with renewed inflationary pressures, while tariffs, policy uncertainty, immigration restrictions, and high interest rates collectively suppress employment, investment, and consumption [115](index=115&type=chunk)[117](index=117&type=chunk) - China's economy performed exceptionally well, with rapid growth in high-end manufacturing (e.g., electric vehicles, industrial automation, digitalization) and supply chains [116](index=116&type=chunk)[118](index=118&type=chunk) - The Group will continue to focus on investments in the **Chinese and Hong Kong markets**, and explore opportunities in the **US market**, while adopting a conservative investment approach [120](index=120&type=chunk)[122](index=122&type=chunk) [Future Plans for Material Investments or Capital Assets and Their Expected of Funding in Twelve Months](index=34&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets%20and%20Their%20Expected%20of%20Funding%20in%20Twelve%20Months) As of June 30, 2025, and the approval date of this interim report, the company has no specific plans for material investments or capital assets - As of June 30, 2025, and the approval date of this interim report, the company has no specific plans for any material investments or capital assets [121](index=121&type=chunk)[123](index=123&type=chunk) [FINANCIAL REVIEW](index=35&type=section&id=FINANCIAL%20REVIEW) The Group maintains a sound financial position, with growth in both net current assets and net assets; the placement successfully raised funds primarily for listed securities investments and general working capital, with low contingent liability risk, no significant capital commitments, and insignificant foreign exchange risk - The Group's asset portfolio is primarily funded by internally generated cash resources [124](index=124&type=chunk)[129](index=129&type=chunk) Liquidity and Capital Structure Key Data (As of June 30) | Indicator | 2025 (HK$ million) | 2024 (HK$ million) | | :--- | :--- | :--- | | Net current assets | 154.2 | 153.7 | | Cash and bank balances | 5.9 | 11.4 | | Unaudited consolidated net asset value per share | HK$0.505 | HK$0.485 | | Gearing ratio | 0.5% | 0.5% | - The placement successfully raised a net amount of approximately **HK$14.0 million**, with **HK$3.0 million** allocated to listed securities investments, **HK$3.5 million** for general working capital, and the remaining **HK$7.5 million** expected to be utilized by December 31, 2025 [135](index=135&type=chunk)[137](index=137&type=chunk)[138](index=138&type=chunk) - The Group has no significant capital commitments, low contingent liability risk, and insignificant foreign exchange risk [140](index=140&type=chunk)[141](index=141&type=chunk)[142](index=142&type=chunk)[145](index=145&type=chunk)[146](index=146&type=chunk)[147](index=147&type=chunk) [SIGNIFICANT ACQUISITION AND DISPOSAL OF SUBSIDIARIES](index=38&type=section&id=SIGNIFICANT%20ACQUISITION%20AND%20DISPOSAL%20OF%20SUBSIDIARIES) During the period, the company did not undertake any significant acquisitions or disposals of subsidiaries - During the period, the company did not undertake any significant acquisitions or disposals of subsidiaries [148](index=148&type=chunk)[151](index=151&type=chunk) [DIRECTORS' AND CHIEF EXECUTIVES' INTEREST AND SHORT POSITIONS IN SHARES, UNDERLYING SHARES AND DEBENTURES OF THE COMPANY](index=38&type=section&id=DIRECTORS'%20AND%20CHIEF%20EXECUTIVES'%20INTEREST%20AND%20SHORT%20POSITIONS%20IN%20SHARES,%20UNDERLYING%20SHARES%20AND%20DEBENTURES%20OF%20THE%20COMPANY) As of June 30, 2025, no directors or chief executives held disclosable interests or short positions in the company's shares, underlying shares, and debentures, except for Ms. Chung Fai Chun, who held 750,000 shares - As of June 30, 2025, **Ms. Chung Fai Chun** held **750,000 shares** in the company [149](index=149&type=chunk)[152](index=152&type=chunk) - Other than the above, no other directors or chief executives held disclosable interests or short positions [149](index=149&type=chunk)[152](index=152&type=chunk) [INTERESTS AND SHORT POSITIONS OF SUBSTANTIAL SHAREHOLDERS DISCLOSEABLE UNDER THE SFO](index=38&type=section&id=INTERESTS%20AND%20SHORT%20POSITIONS%20OF%20SUBSTANTIAL%20SHAREHOLDERS%20DISCLOSEABLE%20UNDER%20THE%20SFO) As of June 30, 2025, no person held substantial shareholder interests or short positions in the company's shares or underlying shares disclosable under the Securities and Futures Ordinance - As of June 30, 2025, no person held disclosable substantial shareholder interests or short positions [150](index=150&type=chunk)[153](index=153&type=chunk) [DIRECTORS' RIGHTS TO ACQUIRE SHARES OR DEBENTURES OF THE COMPANY](index=39&type=section&id=DIRECTORS'%20RIGHTS%20TO%20ACQUIRE%20SHARES%20OR%20DEBENTURES%20OF%20THE%20COMPANY) During the period, neither the company nor its subsidiaries participated in any arrangements enabling directors to benefit from acquiring company shares or debt securities, nor did directors, their spouses, or minor children hold or exercise any such subscription rights - During the period, neither the company nor its subsidiaries participated in any arrangements enabling directors to benefit from acquiring shares or debt securities [154](index=154&type=chunk)[159](index=159&type=chunk) - Directors, their spouses, or minor children did not hold or exercise any rights to subscribe for shares or debt securities of the company [154](index=154&type=chunk)[159](index=159&type=chunk) [DIRECTORS' SECURITIES TRANSACTIONS](index=39&type=section&id=DIRECTORS'%20SECURITIES%20TRANSACTIONS) The company has adopted the Model Code as set out in Appendix C3 of the Listing Rules as the code of conduct for directors' securities transactions, and all directors confirmed compliance with this code during the period - The company has adopted the **Model Code** as set out in **Appendix C3 of the Listing Rules** as the code of conduct for directors' securities transactions [155](index=155&type=chunk)[160](index=160&type=chunk) - All directors confirmed compliance with this code during the period [155](index=155&type=chunk)[160](index=160&type=chunk) [SHARE OPTION SCHEME (Reference)](index=39&type=section&id=SHARE%20OPTION%20SCHEME%20(Reference)) Detailed information on the company's share option scheme, adopted on April 30, 2013, and expired on April 30, 2023, is disclosed in Note 11 to the condensed consolidated financial statements - The share option scheme was adopted on **April 30, 2013**, and expired on **April 30, 2023** [156](index=156&type=chunk)[161](index=161&type=chunk) - Detailed information is disclosed in **Note 11** to the condensed consolidated financial statements [156](index=156&type=chunk)[161](index=161&type=chunk) [PURCHASE, SALE OR REDEMPTION OF THE COMPANY'S SHARES](index=39&type=section&id=PURCHASE,%20SALE%20OR%20REDEMPTION%20OF%20THE%20COMPANY'S%20SHARES) During the period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities [157](index=157&type=chunk)[162](index=162&type=chunk) [CORPORATE GOVERNANCE](index=39&type=section&id=CORPORATE%20GOVERNANCE) The company complied with the Corporate Governance Code in Appendix C1 of the Listing Rules during the period, except for Rule C.2.1 regarding the separation of roles between chairman and chief executive, and will periodically review and update its corporate governance practices - The company complied with the **Corporate Governance Code** in **Appendix C1 of the Listing Rules**, except for **Rule C.2.1** (separation of chairman and chief executive roles) [158](index=158&type=chunk)[163](index=163&type=chunk)[164](index=164&type=chunk)[169](index=169&type=chunk) - The company has not appointed a chief executive since Mr. Ng Chi Kai's resignation on August 1, 2016 [164](index=164&type=chunk)[169](index=169&type=chunk) - Significant Board decisions are made at meetings, with each director having the right to propose meetings and participate in decision-making [164](index=164&type=chunk)[169](index=169&type=chunk) [EMPLOYEE AND REMUNERATION POLICIES](index=40&type=section&id=EMPLOYEE%20AND%20REMUNERATION%20POLICIES) As of June 30, 2025, the Group had 6 employees (including directors), with remuneration based on performance, experience, and market standards, and benefits including medical insurance and MPF schemes; no significant changes to remuneration policies occurred during the period - As of June 30, 2025, the Group had **6 employees** (including directors) [166](index=166&type=chunk)[171](index=171&type=chunk) - Remuneration is based on performance, work experience, and market standards, with benefits including medical insurance and Mandatory Provident Fund schemes [166](index=166&type=chunk)[171](index=171&type=chunk) - No significant changes to remuneration policies occurred during the period [166](index=166&type=chunk)[171](index=171&type=chunk) [AUDIT COMMITTEE](index=40&type=section&id=AUDIT%20COMMITTEE) The Audit Committee has reviewed the Group's accounting principles, risk management, internal controls, and financial reporting matters, including the unaudited interim accounts for the period, and is composed of all independent non-executive directors, with Mr. Yu Tat Chi as chairman - The Audit Committee has reviewed accounting principles, risk management, internal controls, and financial reporting matters, including the unaudited interim accounts for the period [167](index=167&type=chunk)[172](index=172&type=chunk) - The committee comprises all independent non-executive directors: **Mr. Yu Tat Chi** (Chairman), **Mr. Hung Cho Sing**, and **Ms. Chung Fai Chun** [168](index=168&type=chunk)[172](index=172&type=chunk) [REMUNERATION COMMITTEE](index=41&type=section&id=REMUNERATION%20COMMITTEE) The Remuneration Committee, composed of all independent non-executive directors with Mr. Hung Cho Sing as chairman, is primarily responsible for determining the remuneration of executive directors and senior management, and advising the Board on non-executive directors' remuneration - The Remuneration Committee comprises all independent non-executive directors: **Mr. Hung Cho Sing** (Chairman), **Ms. Chung Fai Chun**, and **Mr. Yu Tat Chi** [173](index=173&type=chunk)[176](index=176&type=chunk) - Its primary responsibilities include determining the remuneration of executive directors and senior management, and advising the Board on non-executive directors' remuneration [173](index=173&type=chunk)[176](index=176&type=chunk) [NOMINATION COMMITTEE](index=41&type=section&id=NOMINATION%20COMMITTEE) The Nomination Committee, composed of all independent non-executive directors with Mr. Hung Cho Sing as chairman, is primarily responsible for reviewing the Board's structure, size, and composition, and recommending director appointments or re-appointments to ensure compliance with Listing Rules and safeguard shareholders' best interests - The Nomination Committee comprises all independent non-executive directors: **Mr. Hung Cho Sing** (Chairman), **Ms. Chung Fai Chun**, and **Mr. Yu Tat Chi** [174](index=174&type=chunk)[177](index=177&type=chunk) - Its primary responsibilities include reviewing the Board's structure, size, and composition, and recommending director appointments or re-appointments [174](index=174&type=chunk)[177](index=177&type=chunk) - It ensures the Board complies with Listing Rules, fulfills fiduciary duties, and acts in the best interests of shareholders [174](index=174&type=chunk)[177](index=177&type=chunk) [BOARD OF DIRECTORS (Composition)](index=41&type=section&id=BOARD%20OF%20DIRECTORS%20(Composition)) As of the report date, the Board of Directors consists of Ms. Shum Kit Lan Anita as Executive Director and Mr. Hung Cho Sing, Ms. Chung Fai Chun, and Mr. Yu Tat Chi as Independent Non-Executive Directors - Executive Director: **SHUM Kit Lan Anita** [175](index=175&type=chunk)[178](index=178&type=chunk) - Independent Non-Executive Directors: **HUNG Cho Sing**, **CHUNG Fai Chun**, **YU Tat Chi Michael** [175](index=175&type=chunk)[178](index=178&type=chunk) [APPRECIATION](index=41&type=section&id=APPRECIATION) The Board, on behalf of the company, extends gratitude to the management team, employees, and all shareholders for their contributions and continued support during the reporting period - The Board expresses gratitude for the contributions of the management team and employees [176](index=176&type=chunk)[179](index=179&type=chunk) - Sincere thanks are extended to all shareholders for their continued support [176](index=176&type=chunk)[179](index=179&type=chunk)

[Supplementary Announcement Overview](index=1&type=section&id=Supplementary%20Announcement%20Overview) This section supplements the 2024 annual report, detailing share options granted under specific Listing Rules [Purpose and Background of the Announcement](index=1&type=section&id=Purpose%20and%20Background%20of%20the%20Announcement) This announcement provides supplementary details for the 2024 annual report, focusing on share options granted per HKEX Listing Rules 17.03(F), 17.06B(7), and 17.06B(8) - This announcement serves as a supplement to China Anchu Energy Group Limited's 2024 annual report[3](index=3&type=chunk) - The supplementary information primarily addresses share options granted by the company this year, in accordance with Listing Rules 17.03(F), 17.06B(7), and 17.06B(8)[3](index=3&type=chunk) [Grant of Share Options and Corporate Governance](index=1&type=section&id=Grant%20of%20Share%20Options%20and%20Corporate%20Governance) This section details the Remuneration Committee's views on the share option scheme, including terms and forfeiture mechanisms [Remuneration Committee's Opinion](index=1&type=section&id=Remuneration%20Committee%27s%20Opinion) The Remuneration Committee found share options granted on January 23, 2024, compliant with Listing Rule 17.03F (vesting period ≥12 months), thus not requiring opinion on shorter vesting; the scheme aims to recognize, retain, and incentivize eligible individuals for business success - The company granted share options to directors and employees on January 23, 2024, with a vesting period of **not less than 12 months**, complying with Listing Rule 17.03F[4](index=4&type=chunk) - No opinion from the Remuneration Committee was required for a shorter vesting period[4](index=4&type=chunk) - The Remuneration Committee believes the share option scheme aims to recognize contributions, retain, and incentivize eligible individuals, aligning their interests with the company to optimize performance[4](index=4&type=chunk) [Share Option Terms and Forfeiture Mechanism](index=1&type=section&id=Share%20Option%20Terms%20and%20Forfeiture%20Mechanism) Granted share options are subject to a clawback mechanism, lapsing if the grantee ceases to be eligible due to integrity-related criminal offenses, insolvency, or creditor arrangements - Granted share options are subject to the clawback mechanism stipulated in the share option scheme terms[4](index=4&type=chunk) - Share options will lapse if the grantee ceases to be an eligible person due to integrity-related criminal offenses, insolvency, or agreements with creditors[4](index=4&type=chunk) [Statement on Report Integrity](index=1&type=section&id=Statement%20on%20Report%20Integrity) This section confirms the supplementary information does not alter other 2024 annual report details, with remaining content unchanged [Impact on 2024 Annual Report](index=1&type=section&id=Impact%20on%202024%20Annual%20Report) The Board confirms this supplementary information does not affect other 2024 annual report details, with all other content remaining unchanged except for disclosures herein - The Board confirms that the supplementary information above has no impact on any other details within the 2024 annual report[5](index=5&type=chunk) - Except for the disclosures in this announcement, the content of the 2024 annual report remains unchanged[5](index=5&type=chunk) [Company Basic Information](index=2&type=section&id=Company%20Basic%20Information) This section provides essential company details, including Board composition and official contact information [Board Members](index=2&type=section&id=Board%20Members) As of this announcement, China Anchu Energy Group Limited's Board consists of five executive, one non-executive, and three independent non-executive directors - Executive Directors: Mr Guo Jianxin, Mr Guo Hanfeng, Mr Lu Ke, Mr Duan Huiyuan, and Ms Ma Xiaoling[6](index=6&type=chunk) - Non-executive Director: Mr Wang Xin[6](index=6&type=chunk) - Independent Non-executive Directors: Mr Zhang Zhaodong, Mr Pan Yipeng, and Mr Ma Youheng[6](index=6&type=chunk) [Company Contact Information](index=2&type=section&id=Company%20Contact%20Information) The company's official website is www.chinaanchu2399.com - Official company website: **www.chinaanchu2399.com**[7](index=7&type=chunk)

Company Information [Board of Directors and Committees](index=4&type=section&id=Board%20of%20Directors%20and%20Committees) The company's board comprises executive, non-executive, and independent non-executive directors, with established audit, remuneration, nomination, risk management, and investment committees to ensure robust corporate governance - Board members include **Leung Chi Tin** (Executive Director), **Siu Man Hei** (CEO), and **Yip Kwok Hung** (CFO), with **Hui Hing Lee** serving as Chairman[3](index=3&type=chunk) - Committees include the Audit Committee (Chairman: **Tsang Ho Ka**), Remuneration Committee (Chairman: **Lau Yu**), Nomination Committee (Chairman: **Hui Hing Lee**), Risk Management Committee (Chairman: **Tsang Ho Ka**), and Investment Committee (Chairman: **Hui Hing Lee**)[3](index=3&type=chunk) [Company Basic Information](index=4&type=section&id=Company%20Basic%20Information) The company is registered in the Cayman Islands, with its Hong Kong headquarters in Kowloon Bay, stock code 2262, and BDO Limited Hong Kong as its independent external auditor - The company's registered office is in the Cayman Islands, with its Hong Kong headquarters and principal place of business located at 30/F, Manhattan Place, 23 Wang Tai Road, Kowloon Bay[3](index=3&type=chunk) Company Key Information | Metric | Detail | | :--- | :--- | | Stock Code | 2262 | | Company Website | www.sldgroup.com | | Investor Relations Contact | ir@steveleung.com | | Independent External Auditor | BDO Limited Hong Kong | Management Discussion and Analysis [Market Overview](index=6&type=section&id=Market%20Overview) Global economic growth remained weak in H1 2025, with IMF forecasting 2.8% growth, while escalating trade protectionism led to supply chain restructuring; China's real estate market showed recovery, with narrowing declines in new commercial housing sales and government policies boosting confidence - The International Monetary Fund (IMF) forecasts global economic growth of only **2.8%** for 2025, a slight downward revision from its January projection, indicating insufficient recovery momentum[5](index=5&type=chunk) - Upon returning to the White House, the US swiftly escalated trade protectionist measures, introducing "Reciprocal Tariffs 2.0," triggering global supply chain restructuring and exchange rate volatility[5](index=5&type=chunk) - China's new commercial housing sales area and value decreased by **3.5%** during the period, a significant **15.5%** narrower decline than the previous period, with real estate developers' funding growth showing a clear rebound despite remaining negative[6](index=6&type=chunk) - Central and local governments intensively introduced "stabilize market, prevent risks, promote transformation" policies, including urban renewal, affordable housing, optimized financing, and high-quality development, with first-tier cities performing relatively better[13](index=13&type=chunk) [Overall Performance and Business Review](index=8&type=section&id=Overall%20Performance%20and%20Business%20Review) Despite an uncertain macroeconomic environment, the Group maintained stable contract signing value, achieved an **18.3%** increase in total revenue to **HKD 194.6 million**, and successfully turned a net loss into a **HKD 1.0 million** net profit, actively adjusting strategies, expanding overseas markets, and optimizing its business structure - The Group's contract signing value for the period slightly decreased by approximately **1.8%** compared to the previous period, yet remained stable amidst macroeconomic challenges[14](index=14&type=chunk) Key Financial Performance for the Period | Metric | Current Period (H1 2025) | Previous Period (H1 2024) | Change | | :--- | :--- | :--- | :--- | | Total Revenue | 194.6 Million HKD | 164.5 Million HKD | +18.3% | | Gross Profit | 73.0 Million HKD | 63.9 Million HKD | +14.2% | | Gross Profit Margin | 37.5% | 38.8% | -1.3% | | Net Profit (Loss) | 1.0 Million HKD | (7.4) Million HKD | Turned profitable | - As of June 30, 2025, the Group's total remaining contract value was approximately **HKD 538.5 million**, an increase of approximately **6.2%** from December 31, 2024[16](index=16&type=chunk) Liquidity and Gearing for the Period | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Bank Balances and Cash | 112.7 Million HKD | 140.9 Million HKD | -20.0% | | Current Ratio | 2.8 times | 2.6 times | +0.2 times | | Net Operating Cash Outflow | 4.3 Million HKD | 26.4 Million HKD | -83.7% | | Gearing Ratio | 1.6% | 6.6% | -5.0% | [Total Remaining Contract Value](index=9&type=section&id=Total%20Remaining%20Contract%20Value) As of June 30, 2025, the Group's total remaining contract value was **HKD 538.5 million**, with significant growth in SLL brand contracts, while SLD and JHD brands decreased due to market competition and client strategy adjustments Total Remaining Contract Value by Brand | Brand | June 30, 2025 (Million HKD) | December 31, 2024 (Million HKD) | Change | | :--- | :--- | :--- | :--- | | SLD | 284.6 | 285.8 | -1.2 | | SLL | 189.2 | 146.4 | +42.8 | | JHD | 64.7 | 74.9 | -10.2 | | **Total** | **538.5** | **507.1** | **+31.4** | - SLL's total remaining contract value increased to **HKD 189.2 million**, reflecting enhanced client recognition and synergy with the SLD brand[18](index=18&type=chunk) [Total New Contracts Signed](index=9&type=section&id=Total%20New%20Contracts%20Signed) Total new contracts signed for the period amounted to **HKD 287.1 million**, a slight decrease of **1.8%** from the previous period, primarily due to intensified competition in the residential and private residential interior design markets Total New Contracts Signed by Brand and Project Type | Project Type | H1 2025 (Million HKD) | H1 2024 (Million HKD) | Change | | :--- | :--- | :--- | :--- | | Residential Projects | 216.6 | 227.3 | -10.7 | | Private Residential Projects | 5.9 | 12.6 | -6.7 | | Hotel, F&B, and Hospitality Projects | 24.7 | 22.8 | +1.9 | | Commercial Projects | 24.9 | 27.8 | -2.9 | | Others | 15.0 | 1.8 | +13.2 | | **Total** | **287.1** | **292.3** | **-5.2 (-1.8%)** | [Revenue Breakdown](index=10&type=section&id=Revenue%20Breakdown) Total revenue for the period increased by **18.3%**, driven primarily by higher revenue from residential and private residential projects, with strong performance from SLD and SLL segments, while JHD segment revenue declined Revenue by Brand and Project Type | Project Type | H1 2025 (Million HKD) | H1 2024 (Million HKD) | Change | | :--- | :--- | :--- | :--- | | Residential Projects | 145.0 | 101.0 | +44.0 | | Private Residential Projects | 14.4 | 6.2 | +8.2 | | Hotel, F&B, and Hospitality Projects | 17.7 | 30.8 | -13.1 | | Commercial Projects | 10.7 | 17.4 | -6.7 | | Others | 6.8 | 9.1 | -2.3 | | **Total** | **194.6** | **164.5** | **+30.1 (+18.3%)** | [SLD Segment Performance](index=11&type=section&id=SLD%20Segment%20Performance) The SLD segment, as the Group's primary business, saw revenue grow by **17.2%** to **HKD 117.0 million**, primarily due to accelerated residential and private residential project progress and restored confidence in China's tier-one and tier-two property markets, accounting for **60.1%** of total Group revenue SLD Segment Key Data | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Segment Revenue | 117.0 Million HKD | 99.8 Million HKD | +17.2% | | % of Total Revenue | 60.1% | 60.7% | -0.6% | | Total Remaining Contract Value | 284.6 Million HKD | 285.8 Million HKD (Dec 31, 2024) | -0.4% | - Revenue growth was primarily driven by accelerated project progress and an upward trend in property market investment and sales volume in China's tier-one and tier-two cities[25](index=25&type=chunk) [SLL Segment Performance](index=11&type=section&id=SLL%20Segment%20Performance) The SLL segment's revenue significantly increased by **40.2%** to **HKD 55.5 million**, accounting for **28.5%** of total Group revenue, primarily driven by the recovery of China's tier-one and tier-two property markets and the launch of high-end residential projects, with a notable increase in total remaining contract value SLL Segment Key Data | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Segment Revenue | 55.5 Million HKD | 39.6 Million HKD | +40.2% | | % of Total Revenue | 28.5% | 24.0% | +4.5% | | Total Remaining Contract Value | 189.2 Million HKD | 146.4 Million HKD (Dec 31, 2024) | +29.2% | - Revenue growth was primarily driven by the recovery of property markets in China's tier-one and tier-two cities, coupled with increased confidence among property developers in launching high-end residential development projects[27](index=27&type=chunk) [JHD Segment Performance](index=12&type=section&id=JHD%20Segment%20Performance) The JHD segment's revenue decreased by **12.0%** to **HKD 22.1 million**, accounting for **11.4%** of total Group revenue, primarily due to weak domestic demand in China's hotel, F&B, hospitality, and commercial real estate sectors, with a corresponding decline in total remaining contract value JHD Segment Key Data | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Segment Revenue | 22.1 Million HKD | 25.1 Million HKD | -12.0% | | % of Total Revenue | 11.4% | 15.3% | -3.9% | | Total Remaining Contract Value | 64.7 Million HKD | 74.9 Million HKD (Dec 31, 2024) | -13.6% | - The decrease in revenue was primarily attributable to weak domestic demand in China's hotel, F&B, hospitality, and commercial real estate sectors[28](index=28&type=chunk) [Financial Review](index=12&type=section&id=Financial%20Review) The Group's financial performance significantly improved, with total revenue growing by **18.3%**, gross profit by **14.2%**, and a successful return to profitability; other income increased, finance costs decreased, but impairment losses on expected credit losses and selling expenses rose Revenue and Gross Profit Overview | Metric | H1 2025 (Thousand HKD) | H1 2024 (Thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Total Revenue | 194,592 | 164,514 | +18.3% | | Service Income | 137,181 | 128,032 | +7.1% | | Royalty Income | 881 | 742 | +18.7% | | Trading Income | 56,530 | 35,740 | +57.7% | | Gross Profit | 72,999 | 63,931 | +14.2% | | Gross Profit Margin | 37.5% | 38.8% | -1.3% | - Other income was approximately **HKD 0.9 million**, compared to a loss of approximately **HKD 2.9 million** in the previous period, primarily due to a reduction in litigation provisions[31](index=31&type=chunk) - Impairment losses on trade receivables and contract assets under the expected credit loss model increased to approximately **HKD 9.8 million** (previous period: approximately **HKD 5.4 million**), primarily attributable to increased balances due to revenue growth[32](index=32&type=chunk) - Selling expenses increased by **32.5%** to approximately **HKD 10.2 million**, primarily due to increased business consulting fees and human resources driven by revenue growth[34](index=34&type=chunk) - Administrative expenses remained stable at approximately **HKD 51.2 million**, benefiting from continuous cost control measures[35](index=35&type=chunk) - Finance costs decreased to approximately **HKD 1.2 million** (previous period: approximately **HKD 2.0 million**), primarily due to a reduction in average bank borrowings[36](index=36&type=chunk) Profit for the Period and Earnings Per Share | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Profit (Loss) for the Period | 1.0 Million HKD | (7.4) Million HKD | Turned profitable | | Basic Earnings (Loss) Per Share | 0.14 HK cents | (0.54) HK cents | Turned profitable | [Outlook and Prospects](index=14&type=section&id=Outlook%20and%20Prospects) Facing geopolitical tensions and trade policy uncertainties, the Group will adhere to a steady yet progressive approach, focusing on "youthful, diversified, and internationalized" development strategies, expanding design business types, exploring cross-industry collaborations, and establishing overseas presence to enhance competitiveness and generate long-term returns - China's GDP grew by **5.3%** year-on-year in H1 2025, but geopolitical situations, trade policy uncertainties, and an unstable foundation for consumption demand recovery pose pressure on macroeconomic financial stability[39](index=39&type=chunk) - The Group will focus on three key development areas: "youthful, diversified, and internationalized," including innovating brand image, expanding design business beyond real estate and private residences, and planning to establish overseas presence in markets such as Southeast Asia and the Middle East[40](index=40&type=chunk) - The Group launched a new brand in Milan in early 2025, collaborating with emerging Italian designers, aiming to enhance its recognition and influence in the European market[40](index=40&type=chunk) - The Group will continue to optimize cost control measures and resource allocation efficiency to enhance organizational resilience and risk resistance capabilities[40](index=40&type=chunk) [Corporate Finance and Risk Management](index=14&type=section&id=Corporate%20Finance%20and%20Risk%20Management) The Group maintains a robust financial position with good liquidity and a significantly reduced gearing ratio; despite facing exchange rate fluctuations and credit risk, it manages risks through prudent credit policies and internal controls, actively seeking diversified projects to broaden revenue streams Liquidity and Capital Structure Overview | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total Debt to Total Assets Ratio | 1.0% | 4.0% | -3.0% | | Gearing Ratio | 1.6% | 6.6% | -5.0% | | Net Cash | 107.7 Million HKD | 120.9 Million HKD | -10.9% | | Bank Borrowings | 5.0 Million HKD | 20.0 Million HKD | -75.0% | | Current Ratio | 2.8 times | 2.6 times | +0.2 times | | Equity Attributable to Equity Holders | 308.3 Million HKD | 303.3 Million HKD | +1.6% | - The Group currently has no hedging arrangements for foreign currency or interest rates but regularly reviews exchange rate risks and closely monitors foreign currency fluctuations[47](index=47&type=chunk) - Credit risk primarily stems from trade receivables and contract assets, remaining high despite the stabilization of China's real estate market; the Group adopts prudent credit policies and strengthens business relationships with financially sound clients, including state-owned enterprises[48](index=48&type=chunk)[49](index=49&type=chunk) Credit Loss Provision Status | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Trade Receivables (Gross) | 253.0 Million HKD | 226.3 Million HKD | +26.7 Million HKD | | Accumulated Provision for Trade Receivables | 94.0 Million HKD | 87.6 Million HKD | +6.4 Million HKD | | Average Loss Rate for Trade Receivables | 37.2% | 38.7% | -1.5% | | Contract Assets (Gross) | 132.5 Million HKD | 133.5 Million HKD | -1.0 Million HKD | | Accumulated Provision for Contract Assets | 48.0 Million HKD | 43.2 Million HKD | +4.8 Million HKD | | Average Loss Rate for Contract Assets | 36.2% | 32.4% | +3.8% | | Overall Accumulated Credit Loss Provision | 142.0 Million HKD | 130.8 Million HKD | +11.2 Million HKD | | Overall Average Loss Rate | 36.8% | 36.4% | +0.4% | - The Group is actively seeking diversified project types and business opportunities, continuously strengthening internal controls and risk management procedures through regular reviews of market, operational, financing, policy, legal, contractual, and client credit risks[53](index=53&type=chunk) [Employees and Remuneration Policy](index=17&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had **434** full-time employees, an increase of **35** from the previous year; total employee remuneration grew to **HKD 91.3 million**, primarily due to increased headcount and average salaries, with the Group offering competitive remuneration, discretionary bonuses, share options, and external training Employees and Remuneration Overview | Metric | June 30, 2025 | June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Number of Full-time Employees | 434 employees | 399 employees | +35 employees | | Total Employee Remuneration | 91.3 Million HKD | 82.2 Million HKD | +9.1 Million HKD | - The increase in total remuneration was primarily due to an increase in the number of employees and average employee salaries[54](index=54&type=chunk) - The Group offers an attractive remuneration policy and may grant discretionary bonuses and share options based on individual performance to recognize contributions[54](index=54&type=chunk) [Significant Investments / Significant Acquisitions and Disposals](index=18&type=section&id=Significant%20Investments%20%2F%20Significant%20Acquisitions%20and%20Disposals) During the period, the Group did not undertake any significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures - As of June 30, 2025, the Group had no significant investments[55](index=55&type=chunk) - During the period, the Company did not have any significant acquisitions or disposals of subsidiaries, associates, or joint ventures[56](index=56&type=chunk) [Future Plans for Material Investments or Capital Assets](index=18&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) As of June 30, 2025, the Group had no definite future plans regarding material investments and capital assets - As of June 30, 2025, the Group had no definite plans regarding material investments and capital assets[57](index=57&type=chunk) Corporate Governance and Other Information [Interim Dividend](index=19&type=section&id=Interim%20Dividend) The Board of Directors resolved not to declare any interim dividend for the period - The Board of Directors resolved not to declare any interim dividend for the period[59](index=59&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares and Underlying Shares](index=19&type=section&id=Directors%27%20and%20Chief%20Executive%27s%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares) As of June 30, 2025, Executive Director Mr. Leung Chi Tin held a **22.47%** long position in the company's shares through his wholly-owned Sino Panda Group Limited Directors' and Chief Executive's Shareholdings | Name of Director or Chief Executive | Long/Short Position | Capacity/Nature of Interest | Number of Shares Held | Approximate % of Issued Share Capital | | :--- | :--- | :--- | :--- | :--- | | Mr. Leung Chi Tin (Bronze Bauhinia Star) | Long Position | Interest in controlled corporation | 256,500,000 | 22.47% | - Mr. Leung Chi Tin holds share interests through his wholly and beneficially owned Sino Panda Group Limited[60](index=60&type=chunk) [Major Shareholders' Interests and Short Positions in Shares and Underlying Shares](index=20&type=section&id=Major%20Shareholders%27%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares) As of June 30, 2025, Eagle Vision Development Limited and its associates, including Jangho Group Co., Ltd. and Mr. Liu Zaiwang, held **52.44%** of the company's shares, making them the largest shareholder; Mr. Leung Chi Tin's Sino Panda Group Limited held **22.47%** Major Shareholders' Shareholdings | Name of Shareholder | Long/Short Position | Capacity/Nature of Interest | Number of Shares | Approximate % of Issued Share Capital | | :--- | :--- | :--- | :--- | :--- | | Eagle Vision Development Limited | Long Position | Beneficial owner | 598,500,000 | 52.44% | | Peacemark Enterprises Limited | Long Position | Interest in controlled corporation | 598,500,000 | 52.44% | | Jangho Hong Kong Holdings Limited | Long Position | Interest in controlled corporation | 598,500,000 | 52.44% | | Jangho Group Co., Ltd. | Long Position | Interest in controlled corporation | 598,500,000 | 52.44% | | Beijing Jangho Yuan Holdings Co., Ltd. | Long Position | Interest in controlled corporation | 598,500,000 | 52.44% | | Mr. Liu Zaiwang | Long Position | Interest in controlled corporation | 598,500,000 | 52.44% | | Ms. Fu Haixia | Long Position | Spouse's interest | 598,500,000 | 52.44% | | Sino Panda Group Limited | Long Position | Beneficial owner | 256,500,000 | 22.47% | | Ms. Chan Siu Wan | Long Position | Spouse's interest | 256,500,000 | 22.47% | - Jangho Group Co., Ltd., through multi-layered control relationships, is ultimately controlled by Mr. Liu Zaiwang and his spouse Ms. Fu Haixia, holding a **52.44%** interest in the Company[62](index=62&type=chunk)[66](index=66&type=chunk) [Share Option Scheme](index=21&type=section&id=Share%20Option%20Scheme) The company adopted a share option scheme in 2018 to reward and retain eligible individuals, with limits on total shares and individual grants, and specific exercise price determination; no share options have been granted since adoption, and all options granted in 2018 expired on June 30, 2024 - The Share Option Scheme was adopted on **June 11, 2018**, aiming to incentivize eligible persons to contribute to the Group and reward their past contributions[65](index=65&type=chunk) - Under the scheme, the maximum number of shares subject to outstanding share options shall not exceed **30%** of the issued shares, and the total number of shares issued upon exercise of all options shall not exceed **10%** of the total issued shares on the listing date (i.e., **114,000,000 shares**)[67](index=67&type=chunk) - The subscription price for share options shall not be less than the higher of the closing price of the shares as quoted on the Stock Exchange on the offer date and the average closing price for the five business days immediately preceding the offer date[70](index=70&type=chunk) - No share options have been granted under the Share Option Scheme since its adoption and up to the date of this report; all share options granted in **2018** expired on **June 30, 2024**[70](index=70&type=chunk)[72](index=72&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=23&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[73](index=73&type=chunk) [Sufficient Public Float](index=24&type=section&id=Sufficient%20Public%20Float) The company maintained a sufficient public float throughout the period and up to the date of this report, as required by the Listing Rules - As of the date of this report, the Company maintained a sufficient public float as required by the Listing Rules[74](index=74&type=chunk) [Corporate Governance](index=24&type=section&id=Corporate%20Governance) The company is committed to maintaining high standards of corporate governance and has complied with the code provisions set out in Appendix C1 Part 2 of the Listing Rules' Corporate Governance Code - The Company is committed to maintaining high standards of corporate governance and has complied with the code provisions set out in Appendix C1 Part 2 of the Listing Rules' Corporate Governance Code[75](index=75&type=chunk)[76](index=76&type=chunk) [Directors' Securities Transactions](index=24&type=section&id=Directors%27%20Securities%20Transactions) The company has adopted a code for directors' and employees' securities transactions no less exacting than the Listing Rules' standards, and all directors and relevant employees confirmed compliance with it - The Company has adopted a code for directors' and employees' securities transactions no less exacting than the standards set out in Appendix C3 of the Listing Rules, "Model Code for Securities Transactions by Directors of Listed Issuers"[77](index=77&type=chunk) - All directors and relevant employees of the Group confirmed their compliance with the Securities Code and Model Code during the period[77](index=77&type=chunk) [External Auditor and Audit Committee Review](index=24&type=section&id=External%20Auditor%20and%20Audit%20Committee%20Review) The Group's interim condensed consolidated financial statements were reviewed by BDO Limited Hong Kong, which issued an unmodified review report; the Audit Committee reviewed and discussed the interim results with management - The Group's unaudited condensed consolidated financial statements for the period were reviewed by BDO Limited Hong Kong, which issued an unmodified review report[78](index=78&type=chunk) - The Board's Audit Committee reviewed and discussed the Group's interim results for the period with management and examined the unaudited condensed consolidated financial statements[78](index=78&type=chunk) Review Report on Condensed Consolidated Financial Statements [Review Conclusion](index=25&type=section&id=Review%20Conclusion) BDO Limited Hong Kong reviewed the Group's condensed consolidated financial statements for the six months ended June 30, 2025, issuing an unmodified opinion that the financial statements are prepared in all material respects in accordance with Hong Kong Accounting Standard 34 - The review report was issued by BDO Limited Hong Kong, confirming that the condensed consolidated financial statements were prepared in accordance with Hong Kong Accounting Standard 34, issued by the Hong Kong Institute of Certified Public Accountants[81](index=81&type=chunk) - Based on the review, the auditor did not note any matters that caused them to believe the condensed consolidated financial statements were not prepared in all material respects in accordance with Hong Kong Accounting Standard 34[83](index=83&type=chunk) Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income [Profit or Loss and Comprehensive Income Overview](index=26&type=section&id=Profit%20or%20Loss%20and%20Comprehensive%20Income%20Overview) The Group achieved revenue of **HKD 194,592 thousand** in H1 2025, an **18.3%** increase year-on-year, successfully turning a loss into a profit of **HKD 971 thousand** for the period; total comprehensive income was **HKD 4,489 thousand**, with basic earnings per share of **0.14 HK cents** Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Summary) | Metric | H1 2025 (Thousand HKD) | H1 2024 (Thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Revenue | 194,592 | 164,514 | +18.3% | | Gross Profit | 72,999 | 63,931 | +14.2% | | Profit (Loss) Before Tax | 3,805 | (4,588) | Turned profitable | | Profit (Loss) for the Period | 971 | (7,374) | Turned profitable | | Total Comprehensive Income (Expense) for the Period | 4,489 | (8,264) | Turned profitable | | Basic Earnings (Loss) Per Share | 0.14 HK cents | (0.54) HK cents | Turned profitable | - Other gains and losses turned from a loss of **HKD 2,937 thousand** to a gain of **HKD 874 thousand**, while impairment losses on expected credit losses increased to **HKD 9,793 thousand**[85](index=85&type=chunk) - Exchange differences arising from translation of overseas operations turned from an expense of **HKD 890 thousand** to income of **HKD 3,518 thousand**, positively impacting total comprehensive income[85](index=85&type=chunk) Condensed Consolidated Statement of Financial Position [Assets and Liabilities Overview](index=27&type=section&id=Assets%20and%20Liabilities%20Overview) As of June 30, 2025, the Group's total assets less current liabilities amounted to **HKD 347,268 thousand**; net current assets were **HKD 238,607 thousand**, with a current ratio maintained at **2.8 times**, and equity attributable to equity holders of the Company increased to **HKD 308,287 thousand** Condensed Consolidated Statement of Financial Position (Summary) | Metric | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Non-current Assets | 108,661 | 115,035 | -5.5% | | Current Assets | 370,092 | 382,319 | -3.2% | | Current Liabilities | 131,485 | 149,267 | -11.8% | | Net Current Assets | 238,607 | 233,052 | +2.4% | | Total Assets Less Current Liabilities | 347,268 | 348,087 | -0.2% | | Equity Attributable to Equity Holders of the Company | 308,287 | 303,273 | +1.6% | | Total Equity | 318,548 | 314,059 | +1.4% | | Non-current Liabilities | 28,720 | 34,028 | -15.6% | - Net trade receivables increased to **HKD 158,919 thousand**, while net contract assets slightly decreased to **HKD 84,429 thousand**[86](index=86&type=chunk) - Bank borrowings significantly decreased to **HKD 5,000 thousand** (December 31, 2024: **HKD 20,000 thousand**)[86](index=86&type=chunk) Condensed Consolidated Statement of Changes in Equity [Equity Movement Overview](index=28&type=section&id=Equity%20Movement%20Overview) As of June 30, 2025, equity attributable to equity holders of the Company increased to **HKD 308,287 thousand**, primarily influenced by profit for the period and exchange differences from overseas operations turning into gains; statutory reserves increased, while long-term employee benefit reserves became zero Condensed Consolidated Statement of Changes in Equity (Summary) | Metric | June 30, 2025 (Thousand HKD) | January 1, 2025 (Thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Share Capital | 11,414 | 11,414 | 0 | | Share Premium | 258,224 | 258,224 | 0 | | Merger Reserve | (112,360) | (112,360) | 0 | | Statutory Reserve | 8,524 | 8,343 | +181 | | Exchange Reserve | (19,523) | (22,947) | +3,424 | | Long-term Employee Benefit Reserve | 0 | 0 | 0 | | Capital Contribution by Shareholders | 43,119 | 43,119 | 0 | | Retained Profits | 118,889 | 117,480 | +1,409 | | Total Attributable to Equity Holders of the Company | 308,287 | 303,273 | +5,014 | | Non-controlling Interests | 10,261 | 10,786 | -525 | | **Total** | **318,548** | **314,059** | **+4,489** | - Profit for the period of **HKD 1,590 thousand** and exchange differences arising from translation of overseas operations of **HKD 3,424 thousand** were the main contributions to total comprehensive income attributable to equity holders of the Company[87](index=87&type=chunk) - Statutory reserve increased by **HKD 181 thousand**, primarily from provisions made by Chinese subsidiaries based on profit for the year[87](index=87&type=chunk)[88](index=88&type=chunk) Condensed Consolidated Statement of Cash Flows [Cash Flow Overview](index=30&type=section&id=Cash%20Flow%20Overview) The Group's net cash used in operating activities significantly decreased by **83.7%** to **HKD 4,330 thousand**, while net cash used in financing activities increased to **HKD 24,753 thousand**, primarily due to repayment of bank borrowings; cash and cash equivalents at period-end amounted to **HKD 112,671 thousand** Condensed Consolidated Statement of Cash Flows (Summary) | Activity Type | H1 2025 (Thousand HKD) | H1 2024 (Thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (4,330) | (26,418) | +83.7% (outflow reduced) | | Net Cash Used in Investing Activities | (500) | (1,363) | +63.3% (outflow reduced) | | Net Cash Used in Financing Activities | (24,753) | (21,535) | -14.9% (outflow increased) | | Net Decrease in Cash and Cash Equivalents | (29,583) | (49,316) | +39.9% (decrease narrowed) | | Cash and Cash Equivalents at End of Period | 112,671 | 99,562 | +13.2% | - The reduction in cash outflow from operating activities was primarily due to increased operating cash flow before working capital changes and a narrower increase in trade receivables[89](index=89&type=chunk) - In financing activities, bank borrowings of **HKD 20,000 thousand** were repaid, and new bank borrowings of **HKD 5,000 thousand** were obtained, resulting in an increased net repayment amount[89](index=89&type=chunk) Notes to the Condensed Consolidated Financial Statements [General Information and Basis of Preparation](index=31&type=section&id=General%20Information%20and%20Basis%20of%20Preparation) The company is incorporated in the Cayman Islands, with shares listed on the Stock Exchange, and its ultimate holding company is Jangho Group Co., Ltd.; the condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and presented in HKD - The Company was incorporated in the Cayman Islands on **December 9, 2016**, and its shares were listed on the Stock Exchange on **July 5, 2018**[90](index=90&type=chunk) - The Company's ultimate holding company is Jangho Group Co., Ltd., whose shares are listed on the Shanghai Stock Exchange[90](index=90&type=chunk) - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants, and are presented in HKD[90](index=90&type=chunk)[91](index=91&type=chunk) [Significant Accounting Policies](index=31&type=section&id=Significant%20Accounting%20Policies) The condensed consolidated financial statements are prepared on a historical cost basis, with accounting policies and calculation methods consistent with the 2024 annual consolidated financial statements, and the first-time application of HKFRS amendments is not expected to have a material impact on financial position and performance - The condensed consolidated financial statements are prepared on a historical cost basis, with accounting policies consistent with the **2024** annual consolidated financial statements[92](index=92&type=chunk) - The first-time application of HKAS 21 and HKFRS 1 (Amendments) "Lack of Exchangeability" during the period is not expected to have a material impact on the Group's financial position and performance[93](index=93&type=chunk)[94](index=94&type=chunk) [Revenue and Segment Information](index=32&type=section&id=Revenue%20and%20Segment%20Information) The Group's revenue sources include interior design services, interior furnishing design services, product design services, and trading of interior decoration products; the Group has three reportable segments: SLD, SLL, and JHD, with SLD and SLL primarily focusing on the residential market, and JHD on hotel, F&B, and commercial projects Revenue by Nature | Revenue Nature | H1 2025 (Thousand HKD) | H1 2024 (Thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Service Income | 137,181 | 128,032 | +7.1% | | Royalty Income | 881 | 742 | +18.7% | | Trading Income | 56,530 | 35,740 | +57.7% | | **Total** | **194,592** | **164,514** | **+18.3%** | - The Group's reportable segments include SLD (interior design and product design, primarily residential market), SLL (interior furnishing design and product trading, primarily residential market), and JHD (interior design, furnishing design, and product trading, primarily hotel, F&B, and commercial projects)[97](index=97&type=chunk) Revenue from Contracts with Customers by Market Region (H1 2025) | Market Region | SLD (Thousand HKD) | SLL (Thousand HKD) | JHD (Thousand HKD) | Total (Thousand HKD) | | :--- | :--- | :--- | :--- | :--- | | Hong Kong | 13,279 | 970 | – | 14,249 | | China | 94,515 | 54,349 | 22,040 | 170,904 | | Other Regions | 9,212 | 227 | – | 9,439 | | **Total** | **117,006** | **55,546** | **22,040** | **194,592** | Segment Revenue and Results (H1 2025) | Segment | Revenue (Thousand HKD) | Results (Thousand HKD) | | :--- | :--- | :--- | | SLD | 117,006 | 12,703 | | SLL | 55,546 | 5,897 | | JHD | 22,040 | (4,422) | | **Total** | **194,592** | **14,178** | [Impairment Losses on Trade Receivables and Contract Assets under Expected Credit Loss Model](index=35&type=section&id=Impairment%20Losses%20on%20Trade%20Receivables%20and%20Contract%20Assets%20under%20Expected%20Credit%20Loss%20Model) Net impairment losses on trade receivables and contract assets for the period amounted to **HKD 9,793 thousand**, an increase from the prior period, primarily due to higher balances resulting from revenue growth Net Impairment Losses | Item | H1 2025 (Thousand HKD) | H1 2024 (Thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Trade Receivables | 5,251 | (4,527) | Turned to loss | | Contract Assets | 4,542 | 9,917 | -54.1% | | **Total** | **9,793** | **5,390** | **+81.7%** | - The increase in impairment losses was primarily attributable to increased balances of both trade receivables and contract assets assessed under the expected credit loss model, driven by revenue growth[32](index=32&type=chunk) [Income Tax Expense](index=35&type=section&id=Income%20Tax%20Expense) Income tax expense for the period was **HKD 2,834 thousand**, primarily comprising PRC corporate income tax, with Hong Kong profits tax calculated at **16.5%** and PRC subsidiaries at **25%**; deferred tax mainly arose from accelerated tax depreciation and credit loss provisions Income Tax Expense Breakdown | Tax Type | H1 2025 (Thousand HKD) | H1 2024 (Thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Current tax: Hong Kong profits tax | – | – | 0 | | Current tax: PRC corporate income tax | 3,025 | 2,753 | +9.9% | | Current tax: Overseas corporate income tax | 14 | – | New | | Under (over) provision in prior years: PRC corporate income tax | 21 | (5) | Turned to under-provision | | Deferred tax | (226) | 38 | Turned to gain | | **Total** | **2,834** | **2,786** | **+1.7%** | - Hong Kong profits tax is calculated at **16.5%** of estimated assessable profits, while PRC subsidiaries are taxed at **25%**[102](index=102&type=chunk)[103](index=103&type=chunk) - Deferred tax primarily arises from temporary differences related to accelerated tax depreciation, credit loss provisions, tax losses, and unrealized profits[105](index=105&type=chunk) [Profit (Loss) for the Period](index=36&type=section&id=Profit%20(Loss)%20for%20the%20Period) Profit (loss) for the period was influenced by several factors, including amortization of intangible assets, cost of inventories, depreciation of property and right-of-use assets, exchange gains, interest income and expenses, and a reduction in litigation provisions Key Items Affecting Profit (Loss) for the Period | Item | H1 2025 (Thousand HKD) | H1 2024 (Thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Amortisation of intangible assets | 188 | 199 | -5.5% | | Cost of inventories recognised as expense | 33,713 | 24,845 | +35.7% | | Depreciation of property, plant and equipment | 2,452 | 2,263 | +8.4% | | Depreciation of right-of-use assets | 9,246 | 9,935 | -6.9% | | Exchange (gains) losses, net | (38) | 777 | Turned to gain | | Interest on bank borrowings | 454 | 1,144 | -60.3% | | Provision for litigation | – | 2,240 | Reduced | - Litigation provision was **zero** for the current period, compared to **HKD 2,240 thousand** in the previous period, positively impacting profit for the period[106](index=106&type=chunk) - The Group was involved in two legal disputes, resulting in frozen bank accounts, but one was unfrozen in **June 2025**[106](index=106&type=chunk) [Earnings (Loss) Per Share](index=37&type=section&id=Earnings%20(Loss)%20Per%20Share) Basic earnings per share attributable to equity holders of the Company was **0.14 HK cents**, a significant improvement from a loss of **0.54 HK cents** per share in the prior year; diluted earnings per share was the same as basic earnings per share due to the absence of potential dilutive ordinary shares during the period Earnings (Loss) Per Share Calculation | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Profit (Loss) for the period attributable to equity holders of the Company (Thousand HKD) | 1,590 | (6,139) | Turned profitable | | Weighted average number of ordinary shares | 1,141,401,000 | 1,141,401,000 | 0 | | Basic earnings (loss) per share (HK cents) | 0.14 | (0.54) | Turned profitable | | Diluted earnings (loss) per share (HK cents) | 0.14 | (0.54) | Turned profitable | - As there were no potential dilutive ordinary shares outstanding for the six months ended June 30, 2025, diluted earnings per share for the period was the same as basic earnings per share[107](index=107&type=chunk) [Movements in Property, Plant and Equipment and Right-of-Use Assets](index=37&type=section&id=Movements%20in%20Property%2C%20Plant%20and%20Equipment%20and%20Right-of-Use%20Assets) During the period, the Group acquired **HKD 612 thousand** in property, plant, and equipment, and entered into new lease arrangements, recognizing **HKD 433 thousand** in right-of-use assets and lease liabilities; concurrently, the Group early terminated one lease and modified three, leading to corresponding adjustments in right-of-use assets and lease liabilities Movements in Property, Plant and Equipment and Right-of-Use Assets | Item | H1 2025 (Thousand HKD) | H1 2024 (Thousand HKD) | | :--- | :--- | :--- | | Additions to property, plant and equipment | 612 | 1,596 | | New right-of-use assets | 433 | – | | New lease liabilities | 433 | – | | Lease liabilities derecognised on early termination of lease | 133 | – | | Right-of-use assets adjusted on early termination of lease | 118 | – | | Lease liabilities adjusted on modification of leases | 2,800 | – | | Right-of-use assets adjusted on modification of leases | 3,621 | – | [Trade Receivables](index=38&type=section&id=Trade%20Receivables) As of June 30, 2025, net trade receivables amounted to **HKD 158,919 thousand**, including net unbilled receivables of **HKD 37,240 thousand**; the aging analysis of trade receivables showed a higher proportion of debts over one year, but the Group believes most are recoverable Trade Receivables Overview | Metric | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Trade receivables (gross) | 184,854 | 168,559 | +9.7% | | Less: Provision for credit losses | (63,175) | (58,672) | +7.7% | | Trade receivables (net book value) | 121,679 | 109,887 | +10.7% | | Unbilled receivables (net book value) | 37,240 | 28,843 | +29.1% | | **Total (net book value)** | **158,919** | **138,730** | **+14.5%** | Aging Analysis of Trade Receivables (Net of Credit Loss Provision) | Aging | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | 0 to 30 days | 44,709 | 50,546 | | 31 to 90 days | 21,112 | 6,162 | | 91 to 180 days | 7,406 | 8,875 | | 181 days to 1 year | 18,024 | 7,461 | | Over 1 year | 30,428 | 36,843 | | **Total** | **121,679** | **109,887** | - The Group does not offer credit terms to customers, but **HKD 55,858 thousand** of debts overdue by more than **90 days** are still considered recoverable[114](index=114&type=chunk) - Approximately **HKD 9,114 thousand** of trade receivables are secured by certain properties of customers in China[114](index=114&type=chunk) [Other Receivables, Deposits and Prepayments](index=39&type=section&id=Other%20Receivables%2C%20Deposits%20and%20Prepayments) As of June 30, 2025, other receivables, deposits, and prepayments totaled **HKD 16,842 thousand**, with the current portion being **HKD 11,534 thousand**; other receivables included **HKD 829 thousand** due from related parties Other Receivables, Deposits and Prepayments Breakdown | Item | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Other receivables | 6,582 | 3,667 | +79.5% | | Recoverable VAT | 2,152 | 1,919 | +12.1% | | Prepayments for expenses | 2,291 | 3,059 | -25.2% | | Rental deposits | 5,308 | 5,379 | -1.3% | | Other deposits | 509 | 743 | -31.5% | | **Total** | **16,842** | **14,767** | **+14.7%** | - The carrying amount of other receivables includes **HKD 829 thousand** due from a related party controlled by the Company's controlling shareholder[115](index=115&type=chunk) [Contract Assets and Contract Liabilities](index=40&type=section&id=Contract%20Assets%20and%20Contract%20Liabilities) As of June 30, 2025, net contract assets amounted to **HKD 84,429 thousand**, primarily from interior design services; contract liabilities were **HKD 18,333 thousand**, mainly from interior furnishing services, and contract assets included amounts due from related parties Contract Assets and Contract Liabilities Overview | Item | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Contract assets (net) | 84,429 | 90,323 | -6.5% | | - Interior design services | 126,314 | 124,798 | +1.2% | | - Interior furnishing services | 6,160 | 8,692 | -29.2% | | - Less: Provision for credit losses | (48,045) | (43,167) | +11.3% | | Contract liabilities | 18,333 | 19,384 | -5.5% | | - Interior design services | 6,819 | 9,253 | -26.3% | | - Interior furnishing services | 11,514 | 10,131 | +13.6% | - Contract assets primarily represent the Group's right to consideration for unbilled completed work, which will be transferred to trade receivables when the right becomes unconditional[116](index=116&type=chunk) - The carrying amount of contract assets includes **HKD 1,102 thousand** due from a related party controlled by the Company's controlling shareholder[116](index=116&type=chunk) [Restricted Bank Balances](index=40&type=section&id=Restricted%20Bank%20Balances) As of June 30, 2025, restricted bank balances amounted to approximately **HKD 2,265 thousand**, primarily due to legal disputes Restricted Bank Balances | Metric | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Restricted bank balances | 2,265 | 2,720 | -16.8% | - Restricted bank balances arose from legal disputes, details of which are set out in Note 6[118](index=118&type=chunk) [Trade Payables, Other Payables and Accrued Expenses](index=41&type=section&id=Trade%20Payables%2C%20Other%20Payables%20and%20Accrued%20Expenses) As of June 30, 2025, trade payables were **HKD 53,943 thousand**, with **HKD 23,749 thousand** overdue by more than **180 days**; other payables and accrued expenses totaled **HKD 14,120 thousand**, including accrued staff benefits and litigation provisions Aging Analysis of Trade Payables | Aging | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | 0 to 180 days | 30,194 | 36,893 | | Over 180 days | 23,749 | 13,732 | | **Total** | **53,943** | **50,625** | Other Payables and Accrued Expenses Breakdown | Item | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Accrued staff benefits | 7,074 | 10,191 | -30.5% | | Other payables and accrued expenses | 4,781 | 7,809 | -38.8% | | Provision for litigation | 2,265 | 2,242 | +1.0% | | **Total** | **14,120** | **20,242** | **-30.3%** | [Bank Borrowings](index=41&type=section&id=Bank%20Borrowings) As of June 30, 2025, the Group's bank borrowings amounted to **HKD 5,000 thousand**, a significant decrease from **HKD 20,000 thousand** on December 31, 2024; all borrowings are unsecured and bear floating interest rates Bank Borrowings Overview | Metric | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Unsecured bank borrowings | 5,000 | 20,000 | -75.0% | - Bank borrowings are denominated in HKD and bear floating interest rates, calculated at HIBOR plus an annual rate of **3.00%** to **3.75%**[120](index=120&type=chunk) [Share Capital](index=42&type=section&id=Share%20Capital) As of June 30, 2025, the Company's authorized share capital was **HKD 40,000,000**, with issued and fully paid share capital of **HKD 11,414,010**, at a par value of **HKD 0.01** per share, and the number of shares remained unchanged Share Capital Overview | Share Capital Type | Number of Shares | Amount (HKD) | | :--- | :--- | :--- | | Authorised share capital (par value HKD 0.01 per share) | 4,000,000,000 | 40,000,000 | | Issued and fully paid share capital (par value HKD 0.01 per share) | 1,141,401,000 | 11,414,010 | - The authorized and issued share capital remained unchanged as of **January 1, 2024**, **December 31, 2024**, and **June 30, 2025**[121](index=121&type=chunk) [Related Party Transactions](index=42&type=section&id=Related%20Party%20Transactions) During the period, the Group engaged in related party transactions with fellow subsidiaries, including consulting services, interior design services, and rental expenses; key management personnel remuneration totaled **HKD 7,935 thousand** Related Party Transactions Breakdown | Relationship | Nature of Transaction | H1 2025 (Thousand HKD) | H1 2024 (Thousand HKD) | | :--- | :--- | :--- | :--- | | Fellow subsidiaries | Consulting service expenses | 580 | – | | Fellow subsidiaries | Interior design service income | 362 | 3,610 | | Fellow subsidiaries | Rental expenses | 1,150 | – | | Fellow subsidiaries | Purchase of property, plant and equipment | – | 30 | Key Management Personnel Remuneration | Remuneration Type | H1 2025 (Thousand HKD) | H1 2024 (Thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Basic salaries, allowances and other benefits | 5,957 | 7,430 | -19.8% | | Discretionary bonuses | 1,691 | 405 | +317.5% | | Contributions to retirement benefit schemes | 287 | 311 | -7.7% | | **Total** | **7,935** | **8,146** | **-2.6%** | [Fair Value of Financial Instruments](index=43&type=section&id=Fair%20Value%20of%20Financial%20Instruments) The carrying amounts of the Group's financial assets and liabilities approximate their respective fair values, primarily due to the relatively short maturities of these financial instruments - The condensed consolidated statement of financial position reflects that the carrying amounts of the Group's financial assets and liabilities measured at amortized cost approximate their respective fair values, due to the relatively short maturities of these financial instruments[124](index=124&type=chunk) [Share-based Payment Transactions](index=43&type=section&id=Share-based%20Payment%20Transactions) The company has an equity-settled share option scheme to reward senior management and employees, with limits on total shares and individual grants, and clear exercise price determination; as of this report date, all share options have expired, with no outstanding options - The Share Option Scheme was adopted on **June 11, 2018**, to recognize contributions made or potentially made by certain senior management, employees, consultants, and other contributors to the Group's development[125](index=125&type=chunk) - Under the scheme, without prior shareholder approval, the total number of shares that may be granted under options shall not exceed **10%** of the Company's issued shares at any time, and the number of shares issued and to be issued under options granted to any individual in any one year shall not exceed **1%** of the Company's issued shares at any time[125](index=125&type=chunk) - The exercise price of share options is determined by the Board, but shall not be less than the higher of the closing price of the shares on the date of grant and the average closing price for the five business days immediately preceding the date of grant[126](index=126&type=chunk) - All share options granted on **July 5, 2018**, expired on **June 30, 2024**, and as of the date of this report, there are no outstanding share options under the Share Option Scheme[127](index=127&type=chunk) [Contingent Liabilities](index=44&type=section&id=Contingent%20Liabilities) During the period, a PRC subsidiary of the Group was sued by a client over a contract dispute, resulting in approximately **HKD 338 thousand** in bank accounts being frozen; the litigation is in its early stages, and the potential impact is not yet practicable to assess - During the period, a client initiated legal proceedings against a PRC subsidiary of the Group concerning a contract dispute related to interior design services, which is currently in the litigation stage[128](index=128&type=chunk) - Pursuant to a pre-litigation property preservation order issued by the court, an amount of approximately **RMB 308,000** (equivalent to approximately **HKD 338,000**) in a bank account of a PRC subsidiary of the Group was frozen in **July 2025**[128](index=128&type=chunk) - As the legal proceedings are still in their early stages, it is not practicable to assess the potential impact on the Group[128](index=128&type=chunk) [Events After Reporting Period](index=44&type=section&id=Events%20After%20Reporting%20Period) Except for the contingent liability disclosed in Note 19, no significant events have occurred after June 30, 2025, and up to the date of this report that could materially affect the Group's operations and financial performance - Except for the matters disclosed in Note 19, no significant events have occurred after **June 30, 2025**, and up to the date of this report that could materially affect the Group's operations and financial performance[129](index=129&type=chunk)

股份代號:1883 連接未來 聯繫世界 連接未來 聯繫世界 中 期 報 告 2 0 2 5 關於我們 安全管理服務、雲數據中心及一系列增值服務等。CPC 是亞太區跨國企業及商業客戶最可信賴的主要合作夥伴之 一。同時，透過附屬公司中企網絡通信技術有限公司（「中 企通信」），拓展中國內地市場，為國內大型企業及跨國商 業客戶提供全方位ICT服務。中企通信在中國內地持有多 項全國範圍的增值電信業務經營許可，包括全國性的國內 以太網虛擬專用網，並在北京、上海、廣州等多個城市設 有雲數據中心。 本集團持有澳門電訊股份有限公司（「澳門電訊」）99%權 益。澳門電訊是澳門主要的綜合電訊服務供應商之一， 亦是澳門唯一提供全面電訊服務（包括移動、互聯網、固 定電話、數據中心、企業ICT服務和國際通訊服務）的供應 商，以及「數碼澳門」智慧城市的主體運營商，長久以來一 直為澳門居民、政府及企業提供優質的電訊及ICT服務， 具市場領先地位，對澳門的持續發展舉足輕重。 本集團在22個國家和地區設有分支機構，擁有約2,500位 員工，全球網絡節點接近170個、業務覆蓋達160個國家 和地區，連接世界上600多家運營商，服務3,000多家跨 ...

[Company Information](index=3&type=section&id=%E5%85%AC%E5%8F%B8%E8%B5%84%E6%96%99) This section provides an overview of the company's governance structure, key financial relationships, and operational locations [Board of Directors and Committees](index=3&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83) This section lists the company's executive directors, independent non-executive directors, company secretary, authorized representatives, and members and chairpersons of the audit, remuneration, and nomination committees - Executive Directors include **Dr. Lam Wai Yan** (Chairman and Chief Executive Officer), **Mr. Ho Kam Wah**, and **Mr. Wong Tai Sum**[7](index=7&type=chunk) - Independent Non-Executive Directors include **Mr. Tsui Yiu Wah**, **Mr. Pak Tai Tak**, **Mr. Lam Wai Hon**, and **Ms. Li Kit Ying**[7](index=7&type=chunk) - The Audit Committee Chairman is **Mr. Tsui Yiu Wah**, the Remuneration Committee Chairman is **Mr. Tsui Yiu Wah**, and the Nomination Committee Chairman is **Dr. Lam Wai Yan**[7](index=7&type=chunk) [Principal Banks and Auditor](index=3&type=section&id=%E4%B8%BB%E8%A6%81%E5%BE%80%E6%9D%A5%E9%93%B6%E8%A1%8C) This section discloses the company's principal banks, including Bank of China and China Construction Bank, and its auditor, PricewaterhouseCoopers - Principal banks include **Bank of China**, **China Construction Bank**, **China Merchants Bank**, and **OCBC Wing Hang Bank**[7](index=7&type=chunk) - Auditor is **PricewaterhouseCoopers**[7](index=7&type=chunk) [Registered and Business Locations](index=3&type=section&id=%E6%B3%A8%E5%86%8C%E5%8A%9E) This section provides the company's registered office in the Cayman Islands, business locations in Guangzhou, China, and Hong Kong, along with the group's website and stock code - The company was incorporated in the Cayman Islands, with its registered office address at **Vistra (Cayman) Limited**[7](index=7&type=chunk) - China's main business location is in **No. 115 Gaopu Road, Tianhe District, Guangzhou**, and Hong Kong business location is in **Part of Room 807, Lippo Centre Tower Two, 89 Queensway**[8](index=8&type=chunk) - Company stock code is **543**[8](index=8&type=chunk) [Financial Statements](index=4&type=section&id=%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the company's condensed consolidated interim financial statements, including profit or loss, comprehensive income, financial position, changes in equity, and cash flows [Condensed Consolidated Interim Statement of Profit or Loss](index=4&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%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 company's revenue slightly decreased year-on-year, shifting from profit to loss with a basic loss per share of **0.76 cents**, primarily due to reduced gross profit and operating losses Condensed Consolidated Interim Statement of Profit or Loss Key Data | Indicator | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 272,860 | 276,378 | | Cost of revenue | (192,464) | (170,936) | | Gross profit | 80,396 | 105,442 | | Operating (loss)/profit | (8,427) | 10,428 | | (Loss)/profit for the period | (8,571) | 10,130 | | Basic (loss)/earnings per share | (0.76) cents | 0.89 cents | [Condensed Consolidated Interim Statement of Comprehensive Income](index=5&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E4%B8%AD%E6%9C%9F%E5%85%A8%E9%9D%A2%E6%94%B6%E5%85%A5%E6%8A%A5%E8%A1%A8) For the six months ended June 30, 2025, the company's total comprehensive loss was **RMB 8,571 thousand**, consistent with the period's loss, compared to a comprehensive income of **RMB 10,130 thousand** in the prior year Condensed Consolidated Interim Statement of Comprehensive Income Key Data | Indicator | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | (Loss)/profit for the period | (8,571) | 10,130 | | Other comprehensive income | — | — | | Total comprehensive (loss)/income for the period | (8,571) | 10,130 | [Condensed Consolidated Interim Statement of Financial Position](index=6&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E4%B8%AD%E6%9C%9F%E8%B5%84%E7%94%A2%E8%B2%A0%E5%82%B5%E8%A1%A8) As of June 30, 2025, the company's total assets and equity decreased, with trade receivables and cash equivalents in current assets declining, while the liability structure remained stable and lease liabilities in non-current liabilities increased Condensed Consolidated Interim Statement of Financial Position Key Data | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total assets | 867,085 | 982,297 | | Total equity | 637,203 | 695,832 | | Total liabilities | 229,882 | 286,465 | | Cash and cash equivalents | 240,030 | 263,488 | | Trade and bills receivables, other receivables and prepayments | 339,689 | 430,833 | [Condensed Consolidated Interim Statement of Changes in Equity](index=8&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%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 decreased due to the period's loss and cash dividend payments, with a minor positive impact from the share award scheme Condensed Consolidated Interim Statement of Changes in Equity Key Data | Indicator | June 30, 2025 (RMB thousands) | January 1, 2025 (RMB thousands) | | :--- | :--- | :--- | | Total equity | 637,203 | 695,832 | | Loss for the period | (8,571) | — | | Cash dividends related to 2024 | (51,095) | — | | Share award scheme — value of employee services | 1,358 | — | | Share award scheme — purchase of shares | (321) | — | [Condensed Consolidated Interim Statement of Cash Flows](index=9&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%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, net cash from operating activities significantly increased, but substantial net cash outflow from financing activities led to a net decrease in cash and cash equivalents Condensed Consolidated Interim Statement of Cash Flows Key Data | Indicator | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Net cash from operating activities | 28,655 | 11,469 | | Net cash (used in)/from investing activities | (172) | 18,262 | | Net cash used in financing activities | (51,767) | (48,462) | | Net decrease in cash and cash equivalents | (23,284) | (18,731) | | Cash and cash equivalents at end of period | 240,030 | 252,142 | [Notes to the Interim Financial Information](index=10&type=section&id=%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) This section provides detailed notes supporting the interim financial statements, covering general information, accounting policies, financial risk management, segment information, and specific asset and liability breakdowns [General Information](index=10&type=section&id=1.%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%9