Financial Summary and Announcement This section presents the unaudited interim financial results for the six months ended June 30, 2025, highlighting key financial performance and the announcement's scope [Financial Summary](index=1&type=section&id=FinancialSummary) Summarizes H1 2025 financial performance, noting revenue growth, gross profit decline, and expanded loss per share | Metric | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (Restated, RMB million) | Change | | :--- | :--- | :--- | :--- | | Revenue | 0.80 | 0.20 | ⬆️ 300% | | Gross Profit | 0.02 | 0.09 | ⬇️ 77.78% | | Gross Profit Margin | 2.86% | 47.21% | ⬇️ 44.35% | | Loss for the Period | (16.87) | (8.52) | ⬆️ 98.00% | | Net Loss Margin | (2,008.45%) | (4,321.83%) | ⬆️ 2313.38% (loss narrowed) | | Basic and Diluted Loss Per Share | (0.07) | (0.04) | ⬆️ 75% | [Announcement Statement](index=1&type=section&id=AnnouncementStatement) This announcement presents the unaudited condensed consolidated interim results for H1 2025, reviewed by the audit committee - This announcement presents the company's unaudited condensed consolidated interim results for the six months ended June 30, 2025, which have been reviewed by the audit committee[2](index=2&type=chunk) Condensed Consolidated Financial Statements This section presents the condensed consolidated financial statements, including the statement of profit or loss and financial position, detailing the company's financial performance and position [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=ConsolidatedStatementOfProfitOrLoss) Revenue increased, gross profit declined, leading to expanded operating loss and a higher loss for the period | Metric (RMB thousand) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 (Restated) | Change | | :--- | :--- | :--- | :--- | | Revenue | 840 | 197 | ⬆️ 326.4% | | Cost of Sales | (816) | (104) | ⬆️ 684.6% | | Gross Profit | 24 | 93 | ⬇️ 74.2% | | Selling and Marketing Expenses | (379) | (390) | ⬇️ 2.8% | | Administrative Expenses | (3,629) | (5,418) | ⬇️ 33.0% | | Net Impairment Losses on Financial and Contract Assets | — | 11,696 | ⬇️ 100% | | Other (Expenses) / Income — Net | (1,690) | 2,027 | ⬇️ 183.4% | | Operating Loss | (5,675) | 8,008 | ⬇️ 170.9% (from profit to loss) | | Finance Costs — Net | (11,196) | (13,922) | ⬇️ 19.6% | | Loss Before Income Tax | (16,871) | (5,914) | ⬆️ 185.3% | | Income Tax Expense | — | (2,600) | ⬇️ 100% | | Loss for the Period | (16,871) | (8,514) | ⬆️ 98.2% | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=ConsolidatedStatementOfFinancialPosition) Total assets decreased, current assets declined, total equity negative and expanded, net current liabilities worsened | Metric (RMB thousand) | As of June 30, 2025 | As of December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Non-current Assets | 39,623 | 40,661 | ⬇️ 2.55% | | Current Assets | 14,680 | 17,063 | ⬇️ 13.97% | | Total Assets | 54,303 | 57,724 | ⬇️ 5.93% | | **Equity** | | | | | Total Equity | (720,551) | (703,680) | ⬇️ 2.39% (negative expanded) | | **Liabilities** | | | | | Non-current Liabilities | 1,230 | 1,265 | ⬇️ 2.77% | | Current Liabilities | 773,624 | 760,139 | ⬆️ 1.77% | | Total Liabilities | 774,854 | 761,404 | ⬆️ 1.77% | | Net Current Liabilities | (758,944) | (743,076) | ⬇️ 2.14% (negative expanded) | | Net Assets | (720,551) | (703,680) | ⬇️ 2.39% (negative expanded) | Notes to Financial Information This section provides detailed notes to the financial information, covering general company data, significant accounting policies, segment reporting, and specific financial statement line items [General Information](index=5&type=section&id=GeneralInformation) Guangdong Adway Construction, listed on HKEX, provides architectural decoration and design services in China, controlled by its founders - The company primarily engages in providing interior and exterior architectural decoration and design services in China[7](index=7&type=chunk) - Mr. Ye Yujing and Ms. Ye Xiujin have been the controlling shareholders of the Group since its establishment[7](index=7&type=chunk) [Summary of Significant Accounting Policies](index=5&type=section&id=SummaryOfSignificantAccountingPolicies) This section outlines the significant accounting policies adopted for the consolidated financial statements, including preparation basis, going concern, and new/revised standards [Basis of Preparation](index=5&type=section&id=BasisOfPreparation) The consolidated financial statements are prepared under HKFRSs, Hong Kong Companies Ordinance, and Listing Rules, using the historical cost convention - The consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, the Hong Kong Companies Ordinance, and the disclosure requirements of the Listing Rules[10](index=10&type=chunk) - The consolidated financial statements are prepared on a historical cost basis[11](index=11&type=chunk) [Going Concern Assumption](index=6&type=section&id=GoingConcernAssumption) Despite significant uncertainties like net loss, net current liabilities, and overdue borrowings, the Board deems the going concern basis appropriate through debt restructuring and new financing - As of June 30, 2025, the Group reported a net loss of approximately **RMB 16,871 thousand**, net current liabilities of approximately **RMB 758,944 thousand**, net liabilities of approximately **RMB 720,551 thousand**, and cash and cash equivalents of only **RMB 106 thousand**, indicating significant going concern uncertainties[12](index=12&type=chunk) - The Board plans to mitigate liquidity pressure through debt restructuring with creditors, seeking new financing, and controlling administrative expenses, thus considering the preparation of consolidated financial statements on a going concern basis appropriate[12](index=12&type=chunk)[14](index=14&type=chunk) [New and Revised Standards Adopted](index=6&type=section&id=NewAndRevisedStandardsAdopted) The Group adopted HKFRS 21 (Amendment) "Lack of Exchangeability" from January 1, 2025, with no material impact on financial performance or position - The Group first adopted HKFRS 21 (Amendment) "Lack of Exchangeability" from **January 1, 2025**[13](index=13&type=chunk) - The application of the new and revised standards had no material impact on the Group's financial position and performance for the current and prior periods[13](index=13&type=chunk) [New Standards Not Yet Adopted](index=7&type=section&id=NewStandardsNotYetAdopted) This section lists several new and amended standards not yet effective, which are not expected to materially impact the Group's financial performance or position - Several new and revised standards, including HKFRS 9, HKFRS 7, and HKFRS 18, have been published but are not yet mandatorily effective, with most effective dates on or after **January 1, 2026**[18](index=18&type=chunk) - The Group's preliminary assessment anticipates no material impact on its financial performance and position upon the effective adoption of these new standards and amendments[15](index=15&type=chunk) [Correction to 2024 Interim Results Announcement](index=7&type=section&id=CorrectionTo2024InterimResults) Management corrected revenue and cost of sales data in the 2024 interim results due to an inadvertent error, with no impact on 2025 financial performance - Management corrected revenue and cost of sales data in the interim results announcement for the six months ended June 30, 2024[16](index=16&type=chunk) | Metric (RMB thousand) | 2024 (Previously Presented) | 2024 (Restated) | | :--- | :--- | :--- | | Revenue | 5,534 | 197 | | Cost of Sales | 5,445 | 104 | - This correction does not affect the financial performance and position for the six months ended June 30, 2025[17](index=17&type=chunk) [Segment Information](index=8&type=section&id=SegmentInformation) The Group operates as a single segment in China, providing architectural decoration and design services, with all revenue and non-current assets located in China - The Group primarily engages in providing interior and exterior architectural decoration and design services in China, managed as a single operating segment[19](index=19&type=chunk) - For the six months ended June 30, 2025, all the Group's revenue was generated in China, and all non-current assets are also located in China[19](index=19&type=chunk)[20](index=20&type=chunk)

[Management Discussion and Analysis](index=3&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) This section provides an overview of the Group's operations, financial performance, and future outlook [Business Review](index=3&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group primarily operates big data center services, money lending, and Web3.0 businesses, with big data center revenue decreasing and money lending revenue slightly increasing during the reporting period, while Web3.0 is in the R&D investment phase [Big Data Center Services](index=3&type=section&id=%E5%A4%A7%E6%95%B8%E6%93%9A%E4%B8%AD%E5%BF%83%E6%9C%8D%E5%8B%99) The Group provides big data center services, including site, hardware, power supply, and monitoring management, with the Hong Kong data center ceasing operations in June 2025 and the US data center commencing operations in December 2023, resulting in a year-on-year revenue decrease of approximately **4.7 million HKD** - The Hong Kong data center ceased operations in **June 2025**, with a maximum processing capacity of approximately **1,400 kW**[6](index=6&type=chunk) - The US data center commenced operations in **December 2023**, covering **5 acres** with a maximum processing capacity of approximately **11 MW**[6](index=6&type=chunk) Big Data Center Services Revenue (For the six months ended June 30) | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Revenue | 24,900 | 29,600 | [Money Lending Business](index=4&type=section&id=%E6%94%BE%E5%82%B5%E6%A5%AD%E5%8B%99) The Group conducts money lending business in Hong Kong through Fortune Rich Limited, with one **30 million HKD** loan partially overdue and a **44 thousand HKD** provision made, while another **3 million HKD** loan was repaid in full before its due date, generating approximately **1 million HKD** in revenue - A **30,000,000 HKD** loan was granted in **April 2020** at an annual interest rate of **10%** for a term of **24 months**, later extended to **April 2, 2024**[7](index=7&type=chunk) - As of the reporting date, the borrower has further repaid principal and interest of approximately **18,700,000 HKD**, but the loan principal and remaining interest are still not fully repaid[7](index=7&type=chunk) - As of **June 30, 2025**, a **cumulative provision** of approximately **44,000 HKD** has been made for this loan[8](index=8&type=chunk) Money Lending Business Revenue (For the six months ended June 30) | Metric | 2025 (thousand HKD) | | :--- | :--- | | Revenue | 1,000 | [Web3.0 Business](index=8&type=section&id=Web3.0%E6%A5%AD%E5%8B%99) During the reporting period, the Group actively invested in R&D activities for its Web3.0 business, including blockchain applications and infrastructure platforms, and recruited talent in related fields to lay the foundation for future business development - During the reporting period, The Group conducted business model R&D for blockchain, Web3.0 applications, and infrastructure platforms[17](index=17&type=chunk) - Talent in blockchain and related fields has been recruited, covering overseas market business development, product operations, and blockchain-based financial services[17](index=17&type=chunk) [Internal Control Procedures](index=5&type=section&id=%E5%85%A7%E9%83%A8%E7%9B%A3%E6%8E%A7%E7%A8%8B%E5%BA%8F) The Group has established internal control procedures to manage money lending risks, covering credit risk assessment, credit approval, ongoing monitoring of loan recoverability, and impairment policies, aiming to protect the interests of the Company and its shareholders [Credit Risk Assessment](index=5&type=section&id=1.%20%E4%BF%A1%E8%B2%B8%E9%A2%A8%E9%9A%AA%E8%A9%95%E4%BC%B0) The Money Lending Monitoring Team is responsible for assessing potential clients' credit ratings, repayment abilities, financial conditions, and overall credit risk in accordance with relevant laws and regulations, reviewing various documents and conducting name screening - Assessment is conducted by the Money Lending Monitoring Team, comprising the CEO, accounting, and company secretary department personnel[10](index=10&type=chunk) - Assessment content includes client credit rating, repayment ability, financial condition, and overall credit risk, with review of identity documents, credit records, loan purpose, repayment plan, cash flow, and balance sheet documents[10](index=10&type=chunk) - The company secretary department conducts name screening to verify related party relationships, and management engages independent valuers to assess collateral value[12](index=12&type=chunk) [Credit Approval](index=6&type=section&id=2.%20%E4%BF%A1%E8%B2%B8%E6%89%B9%E5%87%86) The Money Lending Monitoring Team prepares preliminary recommendations based on credit risk assessment results, which are reviewed by the accounting team and subjected to size tests, ultimately submitted to the Board or shareholders for approval to ensure compliance with GEM Listing Rules - The Money Lending Monitoring Team prepares preliminary recommendations based on credit risk assessment results, determining loan principal, interest rate, and term[12](index=12&type=chunk) - The accounting team conducts an independent assessment of applications and performs size tests to ensure compliance with GEM Listing Rules' announcement, notification, and shareholder approval requirements[13](index=13&type=chunk) - Loan applications successfully passing the procedures are submitted to the Board or shareholders for approval[13](index=13&type=chunk) [Ongoing Monitoring of Loan Recoverability and Collection](index=7&type=section&id=3.%20%E6%8C%81%E7%BA%8C%E7%9B%A3%E5%AF%9F%E8%B2%B8%E6%AC%BE%E7%9A%84%E5%8F%AF%E6%94%B6%E5%9B%9E%E6%80%A7%E5%8F%8A%E8%B2%B8%E6%AC%BE%E7%9A%84%E6%94%B6%E5%9B%9E%E6%83%85%E6%B3%81) The finance department is responsible for establishing client loan sub-accounts and verifying repayments, while management and the Money Lending Monitoring Team quarterly review loan collection and recoverability, taking actions such as overdue notices, dunning letters, or legal action upon client default - The finance department establishes independent sub-accounts for each client, recording loan principal, repayment schedules, and records, which are reviewed and approved by the Head of Finance and CEO[15](index=15&type=chunk) - Management and the Money Lending Monitoring Team quarterly review loan collection and recoverability, identifying risks and formulating mitigation measures[15](index=15&type=chunk) - Upon client default, the finance department issues overdue notices, and the Money Lending Monitoring Team follows up and may initiate legal action[15](index=15&type=chunk) [Loan Impairment Policy](index=8&type=section&id=4.%20%E8%B2%B8%E6%AC%BE%E6%B8%9B%E5%80%BC%E6%94%BF%E7%AD%96) Management considers factors such as significant delays in borrower repayment, legal actions, decreased collateral value, and inability to obtain financial documents when assessing impairment of loans and interest receivable, and appoints independent valuers to assess impairment losses - Impairment considerations include significant delays in borrower repayment, the Company taking legal action against the borrower, decreased collateral value, and inability to obtain borrower financial documents[18](index=18&type=chunk) - Upon discovery of these factors, independent valuers will be appointed to assess the **impairment provision** for loans and interest receivable[16](index=16&type=chunk) [Financial Review](index=9&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) During the reporting period, the Group's **total revenue** was approximately **25.9 million HKD**, a year-on-year decrease of **4.4 million HKD**, primarily due to lower big data center services revenue, and recorded a **loss for the period** of approximately **32.8 million HKD**, a significant increase from the same period last year, mainly impacted by increased R&D expenses, share option payments, and expected credit loss provisions [Overall Revenue and Segment Contribution](index=9&type=section&id=%E7%B8%BD%E9%AB%94%E6%94%B6%E7%9B%8A%E8%88%87%E5%88%86%E9%83%A8%E8%B2%A2%E7%8D%BB) During the reporting period, the Group's **total revenue** was approximately **25.9 million HKD**, a year-on-year decrease of approximately **4.4 million HKD**, primarily due to lower big data center services revenue, while money lending business revenue increased, and Web3.0 business incurred R&D expenses Total Revenue and Segment Contribution (For the six months ended June 30) | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | **Total Revenue** | 25,900 | 30,300 | (4,400) | | Big Data Center Services Revenue | 24,900 | 29,600 | (4,700) | | Money Lending Business Revenue | 1,000 | 700 | 300 | | Web3.0 Business R&D Expenses | (12,900) | 0 | (12,900) | [Operating Results](index=10&type=section&id=%E7%87%9F%E9%81%8B%E6%A5%AD%E7%B8%BE) The Group recorded a **loss for the period** of approximately **32.8 million HKD**, a significant increase of **1,032.6%** compared to a **2.9 million HKD** loss in the same period last year, primarily due to decreased gross profit, increased Web3.0 business R&D expenses, share option payments, and expected credit loss provisions, partially offset by increased other income and gains Operating Results (For the six months ended June 30) | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Loss for the Period | (32,800) | (2,900) | (29,900) | 1,032.6% | - The increase in loss was primarily due to: a decrease in gross profit of approximately **2.4 million HKD**, an increase in Web3.0 business R&D expenses of approximately **12.9 million HKD** (including share option payments of approximately **5.3 million HKD**), an increase in share option payments of approximately **11.3 million HKD**, and an increase in **provision** under the expected credit loss model of approximately **5 million HKD**[23](index=23&type=chunk) - The increase in loss was partially offset by an increase in other income and gains of approximately **1.7 million HKD** (primarily from electricity sales)[23](index=23&type=chunk) [Significant Acquisitions, Disposals, and Major Investments](index=10&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E3%80%81%E5%87%BA%E5%94%AE%E5%8F%8A%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) The Group raised funds through multiple placings of new shares, primarily for Web3.0 business development, stablecoin, and related application development; additionally, the Group completed the acquisition of Rhino Trading, gaining **full control** of an Australian licensed digital currency exchange to strengthen its Web3.0 ecosystem - The first placing was completed on **March 6, 2025**, raising **net proceeds** of approximately **33,228,000 HKD**, of which approximately **41.0%** was used for Web3.0 development and new opportunities[22](index=22&type=chunk) - The second placing was completed on **July 24, 2025**, raising **net proceeds** of approximately **54,400,000 HKD**, of which approximately **35%** was used for Web3.0 business development and approximately **20%** for investing in stablecoins and other Web3.0 product development[25](index=25&type=chunk) - The Company gained **full control** of an Australian licensed digital currency exchange by acquiring **100%** equity interest in Rhino Trading to strengthen its Web3.0 ecosystem[25](index=25&type=chunk) [Additions to Property, Plant and Equipment](index=12&type=section&id=%E6%B7%BB%E7%BD%AE%E7%89%A9%E6%A5%AD%E3%80%81%E6%A9%9F%E5%99%A8%E5%8F%8A%E8%A8%AD%E5%82%99) During the reporting period, the Group added approximately **3.07 million HKD** in property, plant and equipment and recognized additions to right-of-use assets of approximately **2.22 million HKD**, primarily for leasing Hong Kong office premises Property, Plant and Equipment Additions (For the six months ended June 30) | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Additions to Property, Plant and Equipment | 3,070 | 1,559 | | Additions to Right-of-Use Assets | 2,218 | 9,097 | - In **2025**, additions to right-of-use assets primarily included **2,218,000 HKD** arising from leasing Hong Kong office premises[26](index=26&type=chunk) [Loans Receivable](index=12&type=section&id=%E6%87%89%E6%94%B6%E8%B2%B8%E6%AC%BE) The Group's money lending business involves two main loans: Loan A (**30 million HKD**) is partially overdue, with legal action taken and ongoing repayment negotiations, approximately **18.7 million HKD** repaid during the reporting period, **900 thousand HKD** interest income recorded, and a **44 thousand HKD** provision made; Loan B (**3 million HKD**) was repaid in full before its due date, recording **100 thousand HKD** interest income - Loan A, with a principal of **30,000,000 HKD** and an annual interest rate of **10%**, was extended to **April 2, 2024**[28](index=28&type=chunk) - As of the reporting date, the borrower of Loan A has further repaid approximately **18,700,000 HKD**, but the loan principal and remaining interest are still not fully repaid[30](index=30&type=chunk) - As of **June 30, 2025**, a **cumulative provision** of approximately **44,000 HKD** has been made for Loan A[30](index=30&type=chunk) - Loan B, with a principal of **3,000,000 HKD** and an annual interest rate of **10%**, was repaid in full before its due date[31](index=31&type=chunk) [Liquidity, Financial Resources, and Capital Structure](index=14&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E3%80%81%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90%E5%8F%8A%E8%B3%87%E6%9C%AC%E6%9E%B6%E6%A7%8B) As of **June 30, 2025**, the Group's **cash and bank balances** were approximately **3.5 million HKD**, an increase of **1.4 million HKD** from the end of **2024**, primarily due to placing; **net current assets** increased to **13.1 million HKD**, **capital surplus** increased to **54.1 million HKD**, and the **gearing ratio** was **zero** Liquidity Position (As of June 30) | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Cash and Bank Balances | 3,500 | 2,100 | | Net Current Assets | 13,100 | 6,900 | | Capital Surplus | 54,100 | 36,800 | | Gearing Ratio | 0 | 0 | - The increase in **cash and bank balances** was primarily due to placing activities during the reporting period[32](index=32&type=chunk) [Outlook](index=14&type=section&id=%E5%B1%95%E6%9C%9B) Given Hong Kong's favorable policy environment and the continuous development of the Web3.0 industry, the Company will invest more resources in blockchain and Web3.0 technology application R&D, explore various business models including on-chain data analytics platforms and decentralized exchanges, and remains optimistic about the stablecoin market potential, while continuing to develop big data centers with a focus on the US data center, and may seek additional fundraising to expand its business - The Hong Kong government's release of the "Hong Kong Policy Statement on Developing Virtual Assets 2.0" and the effective "Stablecoin Ordinance" provide a favorable environment for Web3.0 and digital asset sectors[34](index=34&type=chunk) - The Company plans to develop an on-chain data analytics platform and multiple Web3.0 decentralized exchanges, with the on-chain data analytics platform expected to contribute revenue[35](index=35&type=chunk) - Through the acquisition of Rhino Trading, the Company gained licenses to provide digital currency trading and remittance services, strengthening its Web3.0 ecosystem[36](index=36&type=chunk) - The Company will continue to focus on developing big data centers, with a focus on the US data center, and ceased operations of the Hong Kong data center due to high operating costs[36](index=36&type=chunk) - The Company will explore investments and joint ventures to accelerate Web3.0 business development and may seek additional fundraising[37](index=37&type=chunk) [Other Information](index=16&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) This section outlines the Group's charges on assets, exchange rate risk, employees and remuneration policy, capital commitments, use of proceeds from placing, and significant events after the reporting period, including multiple placings of shares, signing a memorandum of understanding with South Pacific, and completing the acquisition of Rhino Trading [Charges on the Group's Assets](index=16&type=section&id=%E6%9C%AC%E9%9B%86%E5%9C%98%E4%B9%8B%E8%B3%87%E7%94%A2%E6%8A%BC%E8%A8%98) As of **June 30, 2025**, and **December 31, 2024**, no assets of the Group were pledged - As of **June 30, 2025**, and **December 31, 2024**, no assets of The Group were pledged[39](index=39&type=chunk) [Exchange Rate Fluctuation Risk](index=16&type=section&id=%E5%BD%99%E7%8E%87%E6%B3%A2%E5%8B%95%E9%A2%A8%E9%9A%AA) The Group's business activities are primarily denominated in HKD and USD, and due to minimal impact from foreign exchange risk, no hedging or other measures have been implemented - The Group's business activities are primarily denominated in HKD and USD, with minimal impact from foreign exchange risk, and no hedging measures implemented[40](index=40&type=chunk) [Employees and Remuneration Policy](index=16&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of **June 30, 2025**, the Group employed **36 employees**, with employee benefit costs of approximately **27.3 million HKD**, including share option payments of approximately **16.6 million HKD**; the Company offers market-standard remuneration packages and other benefits Employees and Remuneration Information (As of June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Number of Employees | 36 | 31 | | Employee Benefit Costs (thousand HKD) | 27,300 | 7,200 | | Of which Share Option Payments (thousand HKD) | 16,600 | - | [Capital Commitments and Contingent Liabilities](index=16&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94%E5%8F%8A%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of **June 30, 2025**, the Group had **capital commitments** of **3 million HKD** for its Web3.0 business but no contingent liabilities Capital Commitments and Contingent Liabilities (As of June 30) | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Web3.0 Business Capital Commitments | 3,000 | 0 | | Contingent Liabilities | 0 | 0 | [Use of Proceeds from Placing](index=17&type=section&id=%E9%85%8D%E5%94%AE%E4%BA%8B%E9%A0%85%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85%E7%94%A8%E9%80%94) The first placing was completed on **March 6, 2025**, raising **net proceeds** of approximately **33.2 million HKD**; funds originally intended for expanding the US data center were reallocated to Web3.0 business development and general working capital due to increased costs from the tariff war - The first placing raised **net proceeds** of approximately **33,228,000 HKD**[43](index=43&type=chunk) Use of Net Proceeds from First Placing (As of June 30, 2025) | Purpose | Intended for (thousand HKD) | Reallocated (thousand HKD) | Utilized (thousand HKD) | Remaining (thousand HKD) | | :--- | :--- | :--- | :--- | :--- | | Web3.0 Development and New Opportunities | 11,621 | 2,000 | (13,621) | – | | Expansion and Upgrade of Big Data Centers | 3,553 | (3,553) | – | – | | R&D | 6,508 | – | (5,189) | 1,319 | | General Working Capital | 11,546 | 1,553 | (10,945) | 2,154 | | **Total** | **33,228** | **–** | **(29,755)** | **3,473** | - Funds originally intended for expanding the US data center were reallocated to Web3.0 business and general working capital due to significantly increased costs from the tariff war[44](index=44&type=chunk) [Events After the Reporting Period](index=18&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%B9%8B%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A0%85) After the reporting period, the Company completed a second placing, raising **net proceeds** of approximately **54.4 million HKD**, signed a memorandum of understanding with South Pacific to develop and launch a regulated stablecoin, and gained **full control** of an Australian licensed cryptocurrency exchange through the acquisition of Rhino Trading; the placing price and subscription price for the third placing and subscription agreement have also been revised - The second placing was completed on **July 24, 2025**, raising **net proceeds** of approximately **54,400,000 HKD**[45](index=45&type=chunk) - A non-binding memorandum of understanding was signed with South Pacific Investment Limited to support its development and launch of a sovereign-regulated stablecoin[46](index=46&type=chunk) - Through the acquisition of **100%** equity interest in Rhino Trading, The Group gained **full control** of an Australian licensed cryptocurrency exchange to strengthen Web3.0 synergies[47](index=47&type=chunk) - The placing price/subscription price for the third placing agreement and subscription agreement have been revised from **3.85 HKD** to **3.10 HKD**[48](index=48&type=chunk)[49](index=49&type=chunk) [Review Report on Interim Financial Information](index=20&type=section&id=%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E7%9A%84%E5%AF%A9%E9%96%B1%E5%A0%B1%E5%91%8A) [Review Report on Interim Financial Information](index=20&type=section&id=%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E7%9A%84%E5%AF%A9%E9%96%B1%E5%A0%B1%E5%91%8A) UHY Mac & Co. has reviewed the Group's condensed consolidated financial information for the six months ended **June 30, 2025**, in accordance with Hong Kong Standard on Review Engagements 2410, and found no matters that cause them to believe the information was not prepared in accordance with Hong Kong Accounting Standard 34 - The **Review Report** was issued by UHY Mac & Co[54](index=54&type=chunk) - The scope of review was conducted in accordance with Hong Kong Standard on Review Engagements 2410, which is less than an audit, thus no audit opinion is expressed[52](index=52&type=chunk) - The conclusion is that no matters were found that cause them to believe the interim financial information was not prepared in all material respects in accordance with Hong Kong Accounting Standard 34[53](index=53&type=chunk) [Condensed Consolidated Financial Statements](index=22&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=22&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended **June 30, 2025**, the Group recorded a **loss** of **32.822 million HKD**, a significant increase from the **2.898 million HKD** loss in the same period last year, primarily impacted by decreased revenue and significantly increased R&D and administrative expenses Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | Revenue | 25,894 | 30,258 | (4,364) | | Cost of Sales and Services Provided | (21,282) | (23,286) | 2,004 | | Gross Profit | 4,612 | 6,972 | (2,360) | | Other Income and Other Net Losses | 1,688 | (1) | 1,689 | | R&D Expenses | (12,856) | – | (12,856) | | Administrative Expenses | (25,657) | (14,291) | (11,366) | | Impairment Loss (Provision) Reversal under Expected Credit Loss Model | (233) | 4,767 | (5,000) | | Loss Before Tax | (32,806) | (2,910) | (29,896) | | Loss for the Period | (32,822) | (2,898) | (29,924) | | Basic and Diluted Loss Per Share (HK cents) | (5.30) | (0.53) | (4.77) | [Condensed Consolidated Statement of Financial Position](index=24&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of **June 30, 2025**, the Group's **total net assets** increased to **54.137 million HKD** from **36.829 million HKD** as of **December 31, 2024**, with growth in both non-current and current assets, and a significant improvement in **net current assets** Summary of Condensed Consolidated Statement of Financial Position (As of June 30) | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | **Non-current Assets** | | | | | Property, Plant and Equipment | 17,025 | 17,001 | 24 | | Right-of-Use Assets | 7,856 | 9,783 | (1,927) | | Prepayments and Deposits | 17,810 | 6,766 | 11,044 | | **Total Non-current Assets** | **44,164** | **35,437** | **8,727** | | **Current Assets** | | | | | Loans and Interest Receivable | 17,129 | 20,855 | (3,726) | | Trade Receivables | 6,530 | 7,555 | (1,025) | | Cash and Cash Equivalents | 3,540 | 2,091 | 1,449 | | **Total Current Assets** | **36,057** | **33,982** | **2,075** | | **Current Liabilities** | | | | | Total Current Liabilities | 22,944 | 27,064 | (4,120) | | **Net Current Assets** | **13,113** | **6,918** | **6,195** | | **Net Assets** | **54,137** | **36,829** | **17,308** | | **Total Equity** | **54,137** | **36,829** | **17,308** | [Condensed Consolidated Statement of Changes in Equity](index=26&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%

2025 2025 全面實施 高質量發展 High-quality Development in Action 二零二五常宏為 年中期業績報告 vivo昆明 1903 | 旭日企業有限公司 影像館提供店裝服務2 目錄 | 中期業績 | 2 | | --- | --- | | 簡明綜合損益表 | 2 | | 簡明綜合全面收益表 | 4 | | 簡明綜合財務狀況表 | 5 | | 簡明綜合權益變動表 | 7 | | 簡明綜合現金流量表 | 9 | | 簡明綜合財務報表附註 | 10 | | 管理層討論與分析 | 25 | | 其他資料 | 32 | 1 二零二五年中期業績報告 | 旭日企業有限公司 中期業績 旭日企業有限公司（「本公司」）董事局（「董事局」）欣然宣佈，本公司及其附屬公司 （「本集團」）截至二零二五年六月三十日止六個月之未經審核中期簡明綜合業績，連 同上年同期之比較數字如下： 簡明綜合損益表 截至二零二五年六月三十日止六個月 | | 附註 | 二零二五年 | 二零二四年 | | --- | --- | --- | --- | | | | （未經審核） | （未經審核） | | | | 千港元 | 千 ...

2025 INTERIM REPORT 中期報告 2025 INTERIM REPORT 中期報告 CONTENTS | 目錄 | | CORPORATE PROFILE | | --- | --- | | 2 | 公司簡介 | | | FINANCIAL HIGHLIGHTS | | 3 | 財務概要 | | | MANAGEMENT DISCUSSION AND ANALYSIS | | 4 | 管理層討論及分析 | | | OTHER INFORMATION | | 23 | 其他資料 | | | CONDENSED CONSOLIDATED | | 33 | STATEMENT OF PROFIT OR LOSS | | | AND OTHER COMPREHENSIVE INCOME | | | 簡明綜合損益及其他全面收益報表 | | | CONDENSED CONSOLIDATED | | 34 | STATEMENT OF FINANCIAL POSITION | | | 簡明綜合財務狀況報表 | | | CONDENSED CONSOLIDATED | | 36 | STATEMENT OF ...

[Chairman's Report](index=1&type=section&id=%E4%B8%BB%E5%B8%AD%E5%A0%B1%E5%91%8A) [Business Review](index=1&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) SmarTone achieved stable growth in FY2024/25, with **2% profit attributable to shareholders growth**, driven by efficiency, AI, and strong 5G home broadband and roaming data services Key Financial Performance for FY2024/25 | Metric | Amount (HK$) | Y-o-Y Change | | :--- | :--- | :--- | | Profit Attributable to Shareholders (Excluding One-off Items) | HK$478.000 million | Up 2% | | Operating Expenses | Down HK$66.000 million | Down 4% | | Core Capital Expenditure | - | Down 10% | | Revenue | HK$6,253.000 million | Stable | | Consumer Outbound Roaming Data Revenue | - | Up 5.5% | | 5G Home Broadband Service Revenue | - | Up 16% | | 5G Home Broadband Service EBITDA | - | Up 18% | | Enterprise Solutions EBITDA | - | Up 24% | | Proposed Full-Year Dividend | 32.0 cents per share | Stable | - The company significantly improved productivity and cost-effectiveness by integrating **AI and advanced analytics** to address market competition and macro uncertainties[3](index=3&type=chunk) [Excellent Network Quality](index=2&type=section&id=%E9%91%8A%E5%B0%8D%E5%AE%A2%E6%88%B6%E6%9C%80%E9%9C%80%E8%A6%81%E7%9A%84%E6%99%82%E5%88%BB%E6%8F%90%E4%BE%9B%E5%8D%93%E8%B6%8A%E7%B6%B2%E7%B5%A1%E8%B3%AA%E7%B4%A0) SmarTone continuously invests in network infrastructure, securing 850MHz and 6/7GHz spectrums to solidify its 5G leadership and optimize network performance - Successfully secured exclusive **850MHz and 6/7GHz spectrums** to enhance 5G network capabilities[5](index=5&type=chunk) - Strategically allocated optimal spectrum in **24 busiest MTR stations** to improve peak-hour network performance[5](index=5&type=chunk) - Collaborated with a global leader in network automation to flexibly optimize network resources using **AI scenario planning tools**[6](index=6&type=chunk) [Strict Cost and Capital Expenditure Control](index=2&type=section&id=%E5%9A%B0%E6%A0%BC%E6%8E%A7%E5%88%B6%E6%88%90%E6%9C%AC%E5%8F%8A%E8%B3%87%E6%9C%AC%E6%94%AF%E5%87%BA) The company strengthened cost and capital control, achieving a **4% decrease in operating expenses** and a **10% reduction in core capital expenditure** Changes in Costs and Capital Expenditure | Metric | Y-o-Y Change | | :--- | :--- | | Operating Expenses | Down 4% | | Core Capital Expenditure | Down 10% | | Depreciation of Right-of-Use Assets | Down 6% | - Spectrum usage fees reached **HK$534 million**, exceeding total profit attributable to shareholders, with the company utilizing **AI tools** to enhance spectrum efficiency[7](index=7&type=chunk) - Returned Macau mobile network operator license, reallocating resources to the **Hong Kong premium customer market**[7](index=7&type=chunk) [Catering to More Diverse Customer Needs](index=2&type=section&id=%E8%BF%8E%E5%90%88%E5%AE%A2%E6%88%B6%E6%9B%B4%E5%A4%9A%E5%85%83%E5%8C%96%E7%9A%84%E9%9C%80%E8%A6%81) SmarTone is committed to meeting diverse customer needs, with **5G home broadband services growing double-digits** for three consecutive years and the launch of WiFi-7 - **5G home broadband services** recorded **double-digit growth** for three consecutive years and was the first to launch **WiFi-7 services**[8](index=8&type=chunk) - Became the **sole mobile network operator** in Hong Kong offering **Disney+ subscriptions** and launched the **'Kids CARE' application**[9](index=9&type=chunk) - Introduced 'Internet Butler', 'Call Butler', and suspicious SMS alert services, along with a **24-hour hotline**, to enhance customer network security[9](index=9&type=chunk) [Leveraging Sun Hung Kai Properties Group Resources](index=3&type=section&id=%E5%96%84%E7%94%A8%E6%96%B0%E9%B4%BB%E5%9F%BA%E5%9C%B0%E7%94%A2%E9%9B%86%E5%9C%98%E7%9A%84%E8%B3%87%E6%BA%90%EF%BC%8C%E6%8D%89%E6%8D%89%E6%B6%88%E8%B2%BB%E8%80%85%E5%8F%8A%E4%BC%81%E6%A5%AD%E6%87%89%E7%94%A8%E6%96%B9%E6%A1%88%E6%96%B9%E9%9D%A2%E7%9A%84%E5%8D%94%E5%90%8C%E6%95%88%E6%87%89) The company collaborates closely with Sun Hung Kai Properties Group, achieving robust profit growth in enterprise solutions and expanding consumer market synergies - Utilized latest **5G-Advanced network technology**, including network slicing and dedicated 5G networks, at the **2024 Hong Kong World Series events in Go Park**[10](index=10&type=chunk) - Provided **SmartHome services** for SIERRA SEA, a new flagship residential project by Sun Hung Kai Properties, helping it achieve Hong Kong's **first WiredScore Platinum pre-certification** for a residential project[10](index=10&type=chunk) - Deepened collaboration with Sun Hung Kai Properties Group's **'The Point' loyalty program** to offer more targeted promotions and benefits[10](index=10&type=chunk) [Dividends](index=3&type=section&id=%E8%82%A1%E6%81%AF) The Board recommends a final dividend of **17.5 cents per share**, bringing the total annual dividend to **32.0 cents per share** FY2024/25 Dividends | Dividend Type | Amount Per Share (HK cents) | | :--- | :--- | | Final Dividend | 17.5 | | Total Annual Dividend | 32.0 | [Outlook](index=3&type=section&id=%E5%89%8D%E6%99%AF) The company will continue to focus on service excellence, robust network, and strict cost management, leveraging AI to streamline operations and capture market opportunities - Will continue to invest in **new AI technologies** to further streamline operations, enhance cost-effectiveness, and improve productivity[12](index=12&type=chunk) - Identifies **new arrivals and immigrants** as a key growth area, developing suitable solutions to enhance market position[12](index=12&type=chunk) - Prepared to capitalize on market opportunities from the popularization of **generative AI applications** using 5G, AI, and IoT technologies[12](index=12&type=chunk) [Management Discussion and Analysis](index=5&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) [Financial Business Review](index=5&type=section&id=%E8%B2%A1%E5%8B%99%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) Group profit attributable to shareholders (excluding one-off items) increased by **2% to HK$478 million**, with total revenue slightly up by **1% to HK$6,253 million** FY2025 Financial Performance Summary | Metric | 2025 (HK$) | 2024 (HK$) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Profit Attributable to Shareholders (Excluding One-off Items) | HK$478.000 million | HK$470.000 million | Up 2% | | Total Revenue | HK$6,253.000 million | HK$6,221.000 million | Up 1% | | Cost of Services Provided | HK$395.000 million | HK$410.000 million | Down 4% | | Staff Costs | HK$715.000 million | HK$713.000 million | Stable | | Other Operating Expenses | HK$897.000 million | HK$964.000 million | Down 7% | | Depreciation, Amortization & Loss on Disposal | HK$1,693.000 million | HK$1,741.000 million | Down 3% | | Expected Credit Losses | HK$50.000 million | - | Increased | | Net Finance Costs | HK$35.000 million | HK$37.000 million | Stable | | Income Tax Expense | HK$189.000 million | HK$193.000 million | Decreased | | Effective Tax Rate | 28.3% | 29.1% | Decreased | - Improved gross profit margin in **enterprise solutions business** and increased revenue from **handset and accessory sales** offset stable total service revenue[14](index=14&type=chunk) - Current income tax liabilities include a **HK$633 million provision**, assuming all spectrum usage fees are non-deductible, with the company continuing to seek tax deductions[16](index=16&type=chunk) [Capital Structure, Liquidity and Financial Resources](index=6&type=section&id=%E8%B3%87%E6%9C%AC%E6%9E%B6%E6%A7%8B%E3%80%81%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) The Group maintains a robust financial position with total equity increasing to **HK$5,305 million** and ample cash and bank balances of **HK$2,028 million** FY2025 Capital and Liquidity | Metric | June 30, 2025 (HK$) | June 30, 2024 (HK$) | | :--- | :--- | :--- | | Total Equity | HK$5,305.000 million | HK$5,186.000 million | | Cash and Bank Balances | HK$2,028.000 million | HK$1,577.000 million | | Total Borrowings | HK$62.000 million | HK$64.000 million | | Net Cash Generated from Operating Activities | HK$2,133.000 million | HK$2,162.000 million | - The Directors believe that **internal cash resources** are sufficient to meet capital expenditure and working capital requirements for the next financial year[18](index=18&type=chunk) [Treasury Management Policy](index=6&type=section&id=%E8%B2%A1%E8%B3%87%E7%AE%A1%E7%90%86%E6%94%BF%E7%AD%96) The Group manages treasury according to Board-approved policies, primarily holding surplus funds in bank deposits and amortized cost financial assets in HKD and USD - Surplus funds are primarily held in **bank deposits** and invested in **financial assets measured at amortized cost**, mainly in **HKD and USD**[19](index=19&type=chunk) [Pledged Assets](index=6&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group's bank borrowings are secured by certain assets with a carrying value of **HK$61 million** Carrying Value of Pledged Assets | Date | Amount (HK$) | | :--- | :--- | | June 30, 2025 | HK$61.000 million | | June 30, 2024 | HK$63.000 million | [Interest Rate Risk](index=6&type=section&id=%E5%88%A9%E7%8E%87%E9%A2%A8%E9%9A%AA) The Group's total borrowings of **HK$62 million** are at floating rates, and management considers the interest rate risk to be immaterial, with no hedging activities currently undertaken - The Group's total borrowings of **HK$62 million** are at **floating rates**, and management considers the interest rate risk to be immaterial[22](index=22&type=chunk) [Functional Currency and Foreign Exchange Fluctuation Risk](index=6&type=section&id=%E5%8A%9F%E8%83%BD%E8%B2%A8%E5%B9%A3%E5%8F%8A%E5%A4%96%E5%8C%AF%E6%B3%A2%E5%8B%95%E9%A2%A8%E9%9A%AA) The company's functional currency is HKD, facing foreign exchange risk from USD-denominated receivables, bank deposits, and payables, partially hedged by USD deposits - The company's functional currency is **HKD**, with primary foreign exchange risk from **USD-denominated assets and liabilities**, partially hedged by USD deposits[23](index=23&type=chunk) [Contingent Liabilities](index=7&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group's performance guarantees increased to **HK$718 million** compared to the previous year Performance Guarantee Amount | Date | Amount (HK$) | | :--- | :--- | | June 30, 2025 | HK$718.000 million | | June 30, 2024 | HK$523.000 million | [Employees, Share Award Scheme and Share Option Scheme](index=7&type=section&id=%E5%83%B1%E5%93%A1%E3%80%81%E8%82%A1%E4%BB%BD%E7%8D%8E%E5%8B%B5%E8%A8%88%E5%8A%83%E5%8F%8A%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) As of June 30, 2025, the Group had **1,656 full-time employees** with total staff costs of **HK$715 million**, offering various benefits and incentive schemes Employee and Incentive Scheme Overview | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Number of Full-time Employees | 1,656 | 1,756 | | Total Staff Costs | HK$715.000 million | HK$713.000 million | | Unvested Awarded Shares | None | None | | Number of Outstanding Share Options | 4,000,000 | 4,000,000 | - The company provides benefits such as **retirement schemes, medical and dental insurance**, and offers internal and external training for individual employees[25](index=25&type=chunk) [Results](index=8&type=section&id=%E6%A5%AD%E7%B8%BE) [Consolidated Statement of Profit or Loss](index=8&type=section&id=%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) For the year ended June 30, 2025, Group revenue slightly increased to **HK$6,253 million**, with operating profit growing to **HK$752 million**, and profit attributable to shareholders at **HK$478 million** Consolidated Statement of Profit or Loss Summary (For the year ended June 30, 2025) | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Revenue | 6,253,447 | 6,221,251 | | Operating Profit | 752,209 | 700,602 | | Expected Credit Losses on Financial Assets Measured at Amortized Cost | (50,000) | - | | Profit Before Income Tax | 667,618 | 663,176 | | Income Tax Expense | (188,717) | (193,050) | | Profit for the Year (Attributable to Company Shareholders) | 478,901 | 470,126 | | Basic Earnings Per Share (cents) | 43.5 | 42.6 | | Diluted Earnings Per Share (cents) | 43.5 | 42.6 | [Consolidated Statement of Comprehensive Income](index=9&type=section&id=%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the year ended June 30, 2025, the Group's profit for the year was **HK$478 million**, with total comprehensive income for the year at **HK$477 million** due to fair value losses on financial assets Consolidated Statement of Comprehensive Income Summary (For the year ended June 30, 2025) | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Profit for the Year | 478,901 | 470,126 | | Currency Translation Differences | (79) | 112 | | Fair Value Loss on Financial Assets Measured at Fair Value Through Other Comprehensive Income | (1,789) | (640) | | Other Comprehensive Loss for the Year | (1,868) | (528) | | Total Comprehensive Income for the Year | 477,033 | 469,598 | [Consolidated Statement of Financial Position](index=10&type=section&id=%E7%B6%9C%E5%90%88%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E8%A1%A8) As of June 30, 2025, total non-current assets were **HK$7,860 million**, total current assets **HK$3,447 million**, and net assets increased to **HK$5,305 million** Consolidated Statement of Financial Position Summary (As of June 30, 2025) | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Total Non-Current Assets | 7,860,433 | 8,152,969 | | Total Current Assets | 3,447,095 | 3,025,306 | | Cash and Cash Equivalents | 2,028,081 | 1,576,915 | | Total Current Liabilities | 2,973,299 | 2,943,905 | | Total Non-Current Liabilities | 3,028,975 | 3,048,721 | | Net Assets | 5,305,254 | 5,185,649 | | Total Equity | 5,305,254 | 5,185,649 | [Notes to the Consolidated Financial Statements](index=12&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) [General Information](index=12&type=section&id=%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) SmarTone Telecommunications Group Limited primarily provides telecommunications services and sells handsets/accessories in Hong Kong, with shares listed on the HKEX - The Group's principal activities are **telecommunications services** and **handset and accessory sales** in Hong Kong[31](index=31&type=chunk) - The Company's shares are listed on **The Stock Exchange of Hong Kong Limited**[32](index=32&type=chunk) [Summary of Significant Accounting Policies](index=12&type=section&id=%E9%87%8D%E5%A4%A7%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E6%A6%82%E8%A6%81) Consolidated financial statements are prepared under HKFRSs and HK Companies Ordinance, primarily using historical cost, with no significant impact from new standards - Consolidated financial statements are prepared in accordance with **HKFRSs** and **HK Companies Ordinance Cap. 622**, primarily using the historical cost convention[34](index=34&type=chunk)[36](index=36&type=chunk) - Adopted amendments to standards had **no significant impact** on the Group's results and financial position[35](index=35&type=chunk) - **HKFRS 18** may impact the presentation of consolidated financial statements for the year ending June 30, 2028[38](index=38&type=chunk) [Revenue](index=14&type=section&id=%E6%94%B6%E5%85%A5) Total revenue for the year was **HK$6,253 million**, comprising mobile telecommunications services and handset/accessory sales, including a **HK$51 million one-off gain** from Macau exit Revenue Composition and Recognition Timing | Revenue Source | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Mobile Telecommunications Services | 4,415,349 | 4,508,713 | | Sales of Handsets and Accessories | 1,838,098 | 1,712,538 | | **Total Revenue** | **6,253,447** | **6,221,251** | | **Revenue Recognition Timing** | | | | Over time | 4,415,349 | 4,508,713 | | At a point in time | 1,838,098 | 1,712,538 | - Revenue for the year includes a **HK$51 million one-off gain** from exiting the Macau market[41](index=41&type=chunk) [Finance Income](index=14&type=section&id=%E8%9E%8D%E8%B3%87%E6%94%B6%E5%85%A5) Total finance income for the year was **HK$69 million**, primarily from interest income on bank deposits and financial assets measured at amortized cost Finance Income Composition | Income Source | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Interest Income from Financial Assets Measured at Amortized Cost | 2,442 | 6,937 | | Interest Income from Bank Deposits | 67,214 | 60,917 | | **Total Finance Income** | **69,656** | **67,854** | [Finance Costs](index=15&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) Total finance costs for the year were **HK$104 million**, mainly from accretion expenses on spectrum usage fee liabilities, lease liabilities, and bank loan interest Finance Costs Composition | Cost Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Interest Expense on Bank and Other Borrowings | 2,001 | 2,338 | | Accretion Expense on Spectrum Usage Fee Liabilities | 60,996 | 64,981 | | Accretion Expense on Lease Liabilities | 40,734 | 34,729 | | Accretion Expense on Asset Retirement Obligations | 527 | 493 | | Net Exchange (Gain)/Loss Arising from Financing Activities | (11) | 361 | | Loss on Early Redemption of Financial Assets Measured at Amortized Cost | - | 2,378 | | **Total Finance Costs** | **104,247** | **105,280** | [Profit Before Income Tax](index=15&type=section&id=%E9%99%A4%E6%89%80%E5%BE%97%E7%A8%85%E5%89%8D%E6%BA%A2%E5%88%A9) Profit before income tax is stated after deducting various operating expenses, including network costs, depreciation, and **HK$50 million** in new expected credit losses Key Deductions from Profit Before Income Tax | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Network Costs | 517,884 | 568,023 | | Impairment Loss on Trade Receivables | 4,504 | 2,970 | | Depreciation of Property, Plant and Equipment | 524,746 | 525,909 | | Depreciation of Right-of-Use Assets | 605,262 | 644,754 | | Amortization of Spectrum Usage Fees | 473,333 | 473,333 | | Expected Credit Losses on Financial Assets Measured at Amortized Cost | 50,000 | - | [Income Tax](index=16&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85) Income tax expense for the year was **HK$188 million**, with an effective tax rate of **28.3%**, primarily due to the uncertainty of tax deductibility for spectrum usage fees Income Tax Expense and Effective Tax Rate | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Total Current Income Tax Expense | 185,836 | 174,495 | | Deferred Income Tax Expense | 2,881 | 18,555 | | **Income Tax Expense** | **188,717** | **193,050** | | Profit Before Income Tax Expense | 667,618 | 663,176 | | Tax at Hong Kong Tax Rate of 16.5% | 110,157 | 109,424 | | Effective Tax Rate | 28.3% | 29.1% | - Current income tax liabilities include a **HK$633 million provision**, assuming all spectrum usage fees are non-deductible[45](index=45&type=chunk) [Earnings Per Share](index=17&type=section&id=%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) Basic and diluted earnings per share for the year ended June 30, 2025, were both **43.5 cents**, a slight increase from the previous year Earnings Per Share Overview | Metric | 2025 (cents) | 2024 (cents) | | :--- | :--- | :--- | | Basic Earnings Per Share | 43.5 | 42.6 | | Diluted Earnings Per Share | 43.5 | 42.6 | Weighted Average Number of Shares for EPS Calculation | Share Type | 2025 (Number) | 2024 (Number) | | :--- | :--- | :--- | | Weighted Average Number of Ordinary Shares for Basic EPS | 1,101,720,037 | 1,103,917,568 | | Weighted Average Number of Ordinary and Potential Ordinary Shares for Diluted EPS | 1,101,720,037 | 1,103,919,740 | [Dividends](index=18&type=section&id=%E8%82%A1%E6%81%AF) The Board recommends a final dividend of **17.5 cents per share**, bringing the total annual dividend to **32.0 cents per share**, payable on November 21, 2025 Dividend Payout Details | Dividend Type | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Interim Dividend (14.5 cents per share) | 159,733 | 160,004 | | Proposed Final Dividend (17.5 cents per share) | 192,667 | 192,860 | | **Total Dividends** | **352,400** | **352,864** | - The proposed final dividend will be paid on **November 21, 2025**, to shareholders registered on **November 12, 2025**[56](index=56&type=chunk) [Trade Receivables](index=19&type=section&id=%E6%87%89%E6%94%B6%E7%87%9F%E6%A5%AD%E8%B3%AC%E6%AC%BE) The Group generally grants **15 to 45 days credit**, with total trade receivables at **HK$414 million** as of June 30, 2025, and an impairment loss of **HK$4.5 million** for the year Aging Analysis of Trade Receivables (Net of Provision) | Aging | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Current to 30 days | 302,753 | 323,423 | | 31 – 60 days | 17,618 | 14,989 | | 61 – 90 days | 5,090 | 10,152 | | Over 90 days | 88,605 | 61,751 | | **Total** | **414,066** | **410,315** | - For the year ended June 30, 2025, the impairment loss on trade receivables was **HK$4.504 million**[53](index=53&type=chunk) [Trade Payables](index=19&type=section&id=%E6%87%89%E4%BB%98%E7%87%9F%E6%A5%AD%E8%B3%AC%E6%AC%BE) As of June 30, 2025, total trade payables decreased to **HK$351 million**, with the majority falling within the current to 30-day aging category Aging Analysis of Trade Payables | Aging | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Current to 30 days | 175,680 | 146,192 | | 31 – 60 days | 47,362 | 81,128 | | 61 – 90 days | 38,176 | 52,846 | | Over 90 days | 90,637 | 86,042 | | **Total** | **351,855** | **366,208** | [Other Information](index=20&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) [Review of Financial Statements](index=20&type=section&id=%E5%AF%A9%E9%96%B1%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) The Group's consolidated financial statements for the year ended June 30, 2025, have been audited by PwC and will include an unmodified independent auditor's report - The Group's consolidated financial statements have been audited by **PricewaterhouseCoopers** and will include an **unmodified independent auditor's report**[55](index=55&type=chunk) [Dividends](index=20&type=section&id=%E8%82%A1%E6%81%AF) The Board recommends a final dividend of **17.5 cents per share** for FY2025, totaling **32.0 cents per share** for the year, payable on November 21, 2025 FY2024/25 Dividend Payout | Dividend Type | Amount Per Share (cents) | | :--- | :--- | | Proposed Final Dividend | 17.5 | | Interim Dividend | 14.5 | | **Total Annual Dividend** | **32.0** | - The proposed final dividend will be paid on **November 21, 2025**, to shareholders registered on **November 12, 2025**[56](index=56&type=chunk) [Closure of Register of Members](index=20&type=section&id=%E6%9A%AB%E5%81%9C%E8%BE%A6%E7%90%86%E8%82%A1%E4%BB%BD%E9%81%8E%E6%88%B6%E7%99%BB%E8%A8%98) The company will temporarily close its register of members from **October 30 to November 4, 2025**, and on **November 12, 2025**, to determine eligibility for AGM attendance and final dividend - Closure dates for **AGM attendance eligibility**: **October 30 to November 4, 2025**[57](index=57&type=chunk) - Closure date for **final dividend eligibility**: **November 12, 2025**[57](index=57&type=chunk) [Purchases, Sales or Redemptions of Shares](index=20&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E8%82%A1%E4%BB%BD) For the year ended June 30, 2025, the company repurchased and cancelled **1,307,500 shares** on the HKEX for a total of **HK$5.488 million**, expected to increase EPS Share Repurchase Details (For the year ended June 30, 2025) | Month of Repurchase | Number of Shares Repurchased | Total Price Paid (HK$) | | :--- | :--- | :--- | | October 2024 | 203,000 | HK$848,000 | | November 2024 | 142,000 | HK$562,000 | | February 2025 | 312,500 | HK$1,346,000 | | March 2025 | 650,000 | HK$2,732,000 | | **Total** | **1,307,500** | **HK$5.488 million** | - Repurchased shares were cancelled before June 30, 2025, with Directors believing this will **increase the company's earnings per share**[58](index=58&type=chunk)[59](index=59&type=chunk) [Audit Committee Review of Annual Results](index=21&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83%E5%AF%A9%E9%96%B1%E5%B9%B4%E5%BA%A6%E6%A5%AD%E7%B8%BE) The Audit Committee reviewed the Group's FY2025 financial statements, risk management, and internal audit reports, expressing satisfaction with policies and controls - The Audit Committee found the Group's accounting policies and calculation methods to be **appropriate and consistent with industry practices**[60](index=60&type=chunk) - The Committee concluded that the Group maintained **appropriate and effective risk management and internal control systems** during the year[60](index=60&type=chunk) [Corporate Governance](index=21&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The company maintained high corporate governance standards, complying with Appendix C1 of the Listing Rules' Corporate Governance Code for the year ended June 30, 2025 - The company consistently applied and complied with the **Corporate Governance Code in Appendix C1 of the Listing Rules** during the year[61](index=61&type=chunk) - Two independent non-executive directors were unable to attend the **AGM on November 5, 2024**, due to overseas commitments, but **82% of other independent non-executive and non-executive directors attended**[61](index=61&type=chunk)

[Management Discussion and Analysis](index=3&type=section&id=Management%20Discussion%20and%20Analysis) [Overview](index=3&type=section&id=Overview) Playmates Toys' H1 2025 global revenue decreased **58%** to **HK$185.5 million**, shifting to an operating loss and net loss, impacted by brand performance and trade tensions - H1 2025 Key Financial Performance (Year-over-Year) | Metric | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 185,514 | 445,141 | -58% | | Gross Profit | 79,360 | 249,447 | -68% | | Operating (Loss)/Profit | (45,293) | 68,435 | N/A (Turned to Loss) | | (Loss)/Profit Attributable to Owners of the Company | (25,610) | 91,458 | N/A (Turned to Loss) | | Basic (Loss)/Earnings Per Share (HK Cents) | (2.17) | 7.75 | N/A (Turned to Loss) | | Interim Dividend Per Share (HK Cents) | 1.00 | 2.00 | -50% | - Revenue decline primarily due to: (i) reduced benefit from 'Godzilla x Kong: The New Empire' film, leading to expected lower product shipments; (ii) lack of major entertainment for 'Teenage Mutant Ninja Turtles' brand, slowing product series demand; and (iii) increased trade tensions hindering April shipments to the US market[7](index=7&type=chunk) - Gross margin decrease reflects: (i) tariffs on US imports from Q2 2025; (ii) higher product development and tooling costs as a percentage of sales for new product launches; and (iii) increased clearance costs for discontinued products[8](index=8&type=chunk) - The company is prudently evaluating alternative sourcing options and closely monitoring changes in consumer behavior to address global trade uncertainties and potential tariff adjustments[9](index=9&type=chunk) [Brand Overview](index=4&type=section&id=Brand%20Overview) The company actively develops entertainment content and products for key toy brands, including 'Teenage Mutant Ninja Turtles', 'Power Rangers', 'Godzilla x Kong', and 'Winx Club' - 'Teenage Mutant Ninja Turtles' brand is developing a four-season series and film sequels via Paramount Pictures and Nickelodeon Movies, with a spin-off series already launched on Paramount+ and Netflix, supported by active new product development[10](index=10&type=chunk) - A global licensing agreement with Hasbro grants rights to manufacture and distribute 'Power Rangers' toys, with initial 'Mighty Morphin Power Rangers: Re-Ignition' products shipped and receiving positive consumer feedback[11](index=11&type=chunk) - Following the success of the 'Godzilla x Kong' film, the company will continue to develop and expand product lines to bring various characters from the 'MonsterVerse' film and TV series to life[12](index=12&type=chunk) - 'Winx Club: The Magic Is Back' CGI reboot animation will premiere on Netflix in October 2025, with new fashion dolls and role-play toy lines planned for launch in the US and select international markets this autumn[13](index=13&type=chunk) [Condensed Consolidated Financial Information](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Information) This section presents H1 2025 condensed consolidated financial statements, detailing significant revenue and profit declines while maintaining healthy liquidity - Financial statements show the company faced significant revenue and profitability pressure in H1 2025, but the balance sheet and cash flow remain relatively stable[14](index=14&type=chunk)[15](index=15&type=chunk)[16](index=16&type=chunk) - Detailed notes explain performance changes, including shifts in the trade environment, new product investments, and tariff impacts[7](index=7&type=chunk)[8](index=8&type=chunk)[9](index=9&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement details the company's revenue, costs, and profit or loss for H1 2025, highlighting a significant shift from profit to loss - Condensed Consolidated Statement of Profit or Loss (Six Months Ended June 30) | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 185,514 | 445,141 | -58.3% | | Cost of Sales | (106,154) | (195,694) | -45.7% | | Gross Profit | 79,360 | 249,447 | -68.2% | | Marketing and License Fees | (47,609) | (91,651) | -48.1% | | Selling and Distribution Expenses | (15,629) | (31,725) | -50.7% | | Administrative Expenses | (61,415) | (57,636) | +6.5% | | Operating (Loss)/Profit | (45,293) | 68,435 | N/A (Turned to Loss) | | Net Other Income | 30,718 | 50,822 | -39.5% | | Finance Costs | (942) | (1,837) | -48.7% | | (Loss)/Profit Before Income Tax | (15,517) | 117,420 | N/A (Turned to Loss) | | Income Tax Expense | (10,093) | (25,962) | -61.1% | | (Loss)/Profit Attributable to Owners of the Company | (25,610) | 91,458 | N/A (Turned to Loss) | | Basic (Loss)/Earnings Per Share (HK Cents) | (2.17) | 7.75 | N/A (Turned to Loss) | | Diluted (Loss)/Earnings Per Share (HK Cents) | (2.17) | 7.75 | N/A (Turned to Loss) | [Condensed Consolidated Statement of Financial Position](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement presents the company's assets, liabilities, and equity as of June 30, 2025, showing changes in liquidity and asset composition - Condensed Consolidated Statement of Financial Position (As of June 30) | Metric | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current Assets | 40,054 | 43,327 | -7.6% | | Current Assets | 1,280,012 | 1,381,805 | -7.4% | | Inventories | 34,608 | 27,654 | +25.1% | | Trade Receivables | 44,435 | 136,670 | -67.5% | | Cash and Bank Balances | 1,028,781 | 1,043,325 | -1.4% | | Current Liabilities | 213,882 | 220,756 | -3.2% | | Trade Payables | 46,407 | 19,372 | +139.5% | | Net Current Assets | 1,066,130 | 1,161,049 | -8.2% | | Net Assets | 1,104,772 | 1,201,122 | -8.0% | | Total Equity | 1,104,772 | 1,201,122 | -8.0% | [Condensed Consolidated Statement of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This statement outlines the company's cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2025 - Condensed Consolidated Statement of Cash Flows (Six Months Ended June 30) | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 33,782 | 119,245 | -71.7% | | Net Cash Generated from Investing Activities | 166,605 | 29,921 | +456.8% | | Net Cash Used in Financing Activities | (77,374) | (75,676) | +2.2% | | Net Increase in Cash and Cash Equivalents | 123,013 | 73,490 | +67.4% | | Cash and Cash Equivalents at End of Period | 690,479 | 460,892 | +49.8% | - Net cash from investing activities significantly increased due to a **HK$137.6 million** decrease in bank deposits and treasury bills with original maturities over three months[16](index=16&type=chunk) - Financing activities primarily involved **HK$70.8 million** in dividends paid to owners of the company and **HK$1.68 million** for share purchases under the share award scheme[16](index=16&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement details the changes in the company's equity components for the six months ended June 30, 2025, reflecting losses and dividend payments - Condensed Consolidated Statement of Changes in Equity (Six Months Ended June 30) | Metric | June 30, 2025 (HK$ Thousand) | January 1, 2025 (HK$ Thousand) | Change (HK$ Thousand) | | :--- | :--- | :--- | :--- | | Total Equity | 1,104,772 | 1,201,122 | (96,350) | - Total equity decreased primarily due to a **HK$25.6 million** loss for the period, **HK$70.8 million** in dividend payments, and **HK$1.68 million** for share purchases under the share award scheme[17](index=17&type=chunk) [Notes to the Condensed Consolidated Financial Information](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Information) This section provides detailed explanations of accounting policies, segment information, and specific financial items within the condensed consolidated financial statements - The condensed consolidated financial information is prepared in accordance with HKAS 34 and applicable Listing Rules, with accounting policies consistent with the 2024 annual financial statements[18](index=18&type=chunk)[19](index=19&type=chunk) - The Group operates in a single operating segment: the design, research and development, marketing, and distribution of toys and family entertainment products[21](index=21&type=chunk) - Geographical Segment Revenue (Six Months Ended June 30) | Region | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | United States | 131,459 | 309,454 | -57.5% | | Europe | 31,351 | 90,536 | -65.4% | | Other Asia Pacific (excluding Hong Kong) | 2,487 | 18,549 | -86.6% | | **Total Revenue** | **185,514** | **445,141** | **-58.3%** | - In H1 2025, three customers accounted for over **10%** of the Group's total revenue, with transactions of **HK$56.6 million**, **HK$51.1 million**, and **HK$24.0 million** respectively[25](index=25&type=chunk) - As of June 30, 2025, the Group's accumulated unrecognized tax losses were **HK$66.2 million** (December 31, 2024: **HK$11.1 million**), with no expiry date[29](index=29&type=chunk) - The Board resolved to pay an interim dividend of **HK 1 cent** per share (2024: **HK 2 cents**), totaling **HK$11.8 million**, payable on September 19, 2025[30](index=30&type=chunk)[31](index=31&type=chunk) - As of June 30, 2025, trade receivables were **HK$44.4 million** (December 31, 2024: **HK$136.7 million**), with most balances aged zero to sixty days[37](index=37&type=chunk)[38](index=38&type=chunk) - As of June 30, 2025, trade payables were **HK$46.4 million** (December 31, 2024: **HK$19.4 million**), with most balances aged zero to thirty days[39](index=39&type=chunk) - In H1 2025, the Share Award Scheme trustee purchased **3,000,000 shares** from the open market for a total consideration of **HK$1.68 million** to satisfy future vesting share awards[44](index=44&type=chunk)[45](index=45&type=chunk) - As of June 30, 2025, total contracted but unprovided royalty financial commitments were **HK$117.7 million** (December 31, 2024: **HK$138.6 million**)[49](index=49&type=chunk) [Information Required by the Listing Rules](index=22&type=section&id=Information%20Required%20by%20the%20Listing%20Rules) [Liquidity and Financial Resources](index=22&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the company maintained strong liquidity with a current ratio of **6.0**, **HK$1,028.8 million** in cash, and **HK$85.0 million** in listed securities, with unhedged USD foreign currency risk - Liquidity and Financial Resources Overview | Metric | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Current Ratio | 6.0 | 6.3 | | Cash and Bank Balances | 1,028,781 | 1,043,325 | | Trade Receivables | 44,435 | 136,670 | | Inventories | 34,608 | 27,654 | | Listed Securities Investments | 85,044 | 87,473 | - Listed securities investments, totaling **HK$85.0 million** and representing **6.4%** of total assets, include holdings in NVIDIA, Amazon, Disney, Netflix, Microsoft, Alphabet, Goldman Sachs, Tencent, Apple, and Alibaba[54](index=54&type=chunk) - The company is primarily exposed to foreign currency risk from USD-denominated sales but does not hedge this risk due to the Hong Kong dollar's narrow peg to the US dollar[55](index=55&type=chunk) [Employees](index=23&type=section&id=Employees) As of June 30, 2025, the Group employed **69** staff in Hong Kong and the US, with no significant changes to remuneration policies during the period - As of June 30, 2025, the Group had a total of **69** employees in Hong Kong and the United States[56](index=56&type=chunk) - Remuneration policies for the period remained consistent with those outlined in the most recent annual report, with no significant changes[56](index=56&type=chunk) [Share Award Scheme](index=23&type=section&id=Share%20Award%20Scheme) Adopted May 19, 2023, the Share Award Scheme aims to reward and retain talent, with a **10%** share limit and **3 million shares** purchased for **HK$1.68 million** in H1 2025 for future awards - The Share Award Scheme, adopted on May 19, 2023, aims to recognize and reward contributions from eligible participants (including employees, connected entities, and service providers) and provide incentives for retention and attraction of talent[57](index=57&type=chunk) - The scheme has a ten-year validity until May 18, 2033, with a maximum limit of **10%** (118,000,000 shares) of the total issued shares on the adoption date, and a sub-limit of **5%** (59,000,000 shares) for service providers[58](index=58&type=chunk) - In H1 2025, the Share Award Scheme trustee purchased **3,000,000 shares** from the open market for a total consideration of **HK$1.68 million** to satisfy future vesting share awards[59](index=59&type=chunk)[44](index=44&type=chunk) - As of the period end, **6,000,000** unvested share awards were outstanding for directors, employees, and service providers, which will vest on December 6, 2025, without purchase price or performance targets[60](index=60&type=chunk)[61](index=61&type=chunk) [Share Option Scheme](index=26&type=section&id=Share%20Option%20Scheme) The 2018 Share Option Scheme, adopted May 21, 2018, was terminated on May 19, 2023, with no new options granted, leaving **19.44 million** unexercised options and **252,000** lapsed employee options as of June 30, 2025 - The company adopted the Share Option Scheme on May 21, 2018, but it was terminated on May 19, 2023, following the adoption of the Share Award Scheme, with no new share options to be granted[62](index=62&type=chunk)[63](index=63&type=chunk) - As of June 30, 2025, **19,444,000** shares were available for issue under unexercised share options granted under the 2018 scheme[63](index=63&type=chunk) - No share options were granted, exercised, or cancelled during the period, but **252,000** employee share options lapsed[62](index=62&type=chunk)[63](index=63&type=chunk) - Granted share options have an exercise price of **HK$0.826** and are exercisable in four tranches from June 29, 2018, to June 28, 2028[62](index=62&type=chunk) [Directors' and Chief Executives' Interests and Major Shareholders' Interests](index=27&type=section&id=Directors'%20and%20Chief%20Executives'%20Interests%20and%20Major%20Shareholders'%20Interests) This section details long positions in shares and related shares held by directors and chief executives, and major shareholders holding **5%** or more of the company's shares as of June 30, 2025 - Directors' Long Positions in the Company's Shares (As of June 30, 2025) | Director's Name | Nature of Interest | Number of Shares Held (Ordinary Shares) | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Chan Kwong Fai | Personal | 3,274,000 | 0.28% | | Yip Shu Wing | Personal | 2,487,026 | 0.21% | | Chan Wai Hang | Personal | 1,000,000 | 0.08% | | Yu Hon To | Personal | 1,241,600 | 0.11% | - Directors' Long Positions in the Company's Related Shares (Equity Derivatives, As of June 30, 2025) | Director's Name | Nature of Interest | Number of Equity Derivatives | Number of Related Shares (Ordinary Shares) | Percentage of Shareholding | | :--- | :--- | :--- | :--- | :--- | | Chan Kwong Fai | Personal | 2,000,000 share options | 2,000,000 | 0.17% | | Chan Hoi Lun | Personal | 1,000,000 share options | 1,000,000 | 0.08% | | Chan Kwong Keung | Personal | 1,000,000 share options | 1,000,000 | 0.08% | | Chan Wai Hang | Personal | 1,000,000 share options | 2,000,000 | 0.17% | | | | 1,000,000 unvested share awards | | | - Major Shareholders' Long Positions in the Company's Shares (5% or More, As of June 30, 2025) | Name/Company | Nature of Interest | Number of Shares Held (Ordinary Shares) | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Chan Chun Ho | Personal (Deemed) | 632,000,000 | 53.56% | | TGC Assets Limited | Corporate and Beneficial Owner | 632,000,000 | 53.56% | | Playmates Holdings Limited | Corporate (Deemed) | 600,000,000 | 50.85% | | PIL Management Limited | Corporate (Deemed) | 600,000,000 | 50.85% | | PIL Investments Limited | Corporate (Deemed) | 600,000,000 | 50.85% | | PIL Toys Limited | Beneficial Owner | 600,000,000 | 50.85% | | Edward A. COLLERY | Personal (Deemed) | 59,052,000 | 5.00% | | Peter M. COLLERY | Personal (Deemed) | 59,052,000 | 5.00% | | Part V Capital Management, LLC | Corporate | 59,052,000 | 5.00% | | Pelham Investment Partners, LP | Beneficial Owner | 59,052,000 | 5.00% | [Repurchase, Sale or Redemption of Shares](index=30&type=section&id=Repurchase%2C%20Sale%20or%20Redemption%20of%20Shares) In H1 2025, the Share Award Scheme trustee repurchased **3 million shares** for approximately **HK$1.68 million** for future awards, with no other share redemptions, repurchases, or sales by the company - The Share Award Scheme trustee repurchased **3,000,000 shares** from the open market during the period for a total consideration of approximately **HK$1.68 million** to satisfy future vesting share awards[70](index=70&type=chunk) - Other than the aforementioned share repurchases, neither the company nor its subsidiaries redeemed, repurchased, or sold any of the company's shares during the period, and the company holds no treasury shares[70](index=70&type=chunk) [Compliance with Corporate Governance Code](index=31&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company complied with all applicable Corporate Governance Code provisions for H1 2025, except for the non-segregation of Chairman and CEO roles, which the board deems effective - The company has adopted and complied with all applicable code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules[72](index=72&type=chunk) - An exception is that the roles of Chairman and Chief Executive are not segregated, and the company has not appointed a Chief Executive; the Board believes this structure is suitable for effective management and monitoring of the Group's business and will review it regularly[72](index=72&type=chunk) - The Audit Committee has reviewed the accounting principles and practices adopted by the Group with management and discussed matters such as internal controls and financial reporting[72](index=72&type=chunk) [Compliance with Model Code](index=31&type=section&id=Compliance%20with%20Model%20Code) All directors confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers for the six months ended June 30, 2025 - All members of the Board confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules for the six months ended June 30, 2025[73](index=73&type=chunk) [Update on Directors' Information under Listing Rule 13.51B(1)](index=31&type=section&id=Update%20on%20Directors'%20Information%20under%20Listing%20Rule%2013.51B(1)) No information required to be disclosed under Listing Rule 13.51B(1) during the reporting period - No information was required to be disclosed under Listing Rule 13.51B(1) during the period[74](index=74&type=chunk) [Company Information](index=32&type=section&id=Company%20Information) [Provisional Arrangements for Share Transfer Registration and Dividend Payment](index=32&type=section&id=Provisional%20Arrangements%20for%20Share%20Transfer%20Registration%20and%20Dividend%20Payment) Share transfer registration will be suspended from September 1-2, 2025, to determine interim dividend eligibility, with payment scheduled for September 19, 2025 - The company will suspend share transfer registration from September 1 to September 2, 2025 (both dates inclusive), to determine shareholders' eligibility for the declared interim dividend[75](index=75&type=chunk) - The interim dividend will be paid on September 19, 2025, to shareholders whose names appear on the company's register of members as of September 2, 2025[75](index=75&type=chunk) [Company Particulars](index=33&type=section&id=Company%20Particulars) This section provides essential company details, including board members, company secretary, registered office, auditors, legal advisors, and stock code - The Board of Directors includes Chairman Chan Kwong Fai (Executive Director), Executive Directors Chan Hoi Lun, Chan Kwong Keung, Chan Wai Hang, and Independent Non-executive Directors Yip Shu Wing, Lam Wai Hon, and Yu Hon To[78](index=78&type=chunk) - The company's shares are listed on The Stock Exchange of Hong Kong Limited under stock code **869**[79](index=79&type=chunk) - The company's website is www.playmatestoys.com[79](index=79&type=chunk)[80](index=80&type=chunk)

[Annual Report Supplemental Announcement](index=1&type=section&id=Annual%20Report%20Supplemental%20Announcement) [Background and Purpose of the Announcement](index=1&type=section&id=Background%20and%20Purpose%20of%20the%20Announcement) This announcement supplements Autostreets Development Limited's 2024 annual report, disclosing CEO Mr. Zhao Hongliang's remuneration per Listing Rules Appendix D2 paragraph 24 - This announcement is a supplementary announcement to the annual report of Autostreets Development Limited (Stock Code: 2443) for the year ended December 31, 2024[2](index=2&type=chunk) - The purpose of the announcement is to supplement the disclosure of remuneration information for Mr. Zhao Hongliang, the Chief Executive Officer, in accordance with paragraph 24 of Appendix D2 of the Listing Rules[2](index=2&type=chunk) [CEO Remuneration Disclosure](index=1&type=section&id=CEO%20Remuneration%20Disclosure) This chapter details CEO Mr. Zhao Hongliang's remuneration for 2023 and 2024, including salary, benefits, and pension contributions, showing stable total compensation - Mr. Zhao Hongliang has served as Chief Executive Officer since March 15, 2022, and as Executive Director since May 28, 2025[2](index=2&type=chunk) Chief Executive Officer Mr. Zhao Hongliang's Remuneration Details (RMB '000) | Metric | 2024 (RMB '000) | 2023 (RMB '000) | | :--- | :--- | :--- | | Salaries, allowances, and benefits in kind | 1,569 | 1,563 | | Performance-related bonuses | — | — | | Pension scheme contributions | 66 | 70 | | **Total Remuneration** | **1,635** | **1,633** | - This supplementary information does not affect other information contained in the annual report[3](index=3&type=chunk) [Board of Directors Composition](index=2&type=section&id=Board%20of%20Directors%20Composition) As of September 3, 2025, the Board of Directors consists of four executive, two non-executive, and three independent non-executive directors - As of September 3, 2025, the Board of Directors members include[4](index=4&type=chunk) - Executive Directors: Mr. Yang Aihua, Mr. Yang Hansong (Chairman and Executive Director), Mr. Zhao Hongliang, Ms. Gao Kun[4](index=4&type=chunk) - Non-executive Directors: Mr. Rob Huting, Ms. Yang Chuyu[4](index=4&type=chunk) - Independent Non-executive Directors: Mr. Wang Jianping, Ms. Li Mochou, Mr. Yan Jun[4](index=4&type=chunk)

CHINA BOHAI BANK CO., LTD. 渤海銀行股份有限公司 股份代號 : 9668 （ 於中華人民共和國註冊成立的股份有限公司 ） 2025 中期報告 2025年中期報告 1 目錄 目錄 2 釋義 4 重要提示 5 公司基本情況簡介 6 會計數據和財務指標摘要 8 管理層討論與分析 50 股本變動及股東情況 54 董事、監事、高級管理層成員、員工和機構情況 61 公司治理 66 重要事項 70 審閱報告及中期財務報告 170 組織架構圖 釋義 | | | 渤海銀行股份有限公司 本行、公司 指 渤海銀行股份有限公司，一家根據中國相關法律法規於2005年12月30日在 中國成立的股份有限公司，其H股於香港聯交所上市（股票代碼：9668） 渤銀理財 指 渤銀理財有限責任公司 中央銀行、人民銀行 指 中國人民銀行 中國企業會計準則 指 中華人民共和國財政部於2006年2月15日及以後期間頒佈的《企業會計準 則 － 基本準則》、具體會計準則、企業會計準則應用指南、企業會計準則解 釋及其他相關規定 《公司法》 指 《中華人民共和國公司法》 中國證監會 指 中國證券監督管理委員會 本報告日期 指 本行董事會 ...

[Corporate Information](index=2&type=section&id=Corporate%20Information) [Board of Directors](index=3&type=section&id=Board%20of%20Directors) The company's Board of Directors comprises executive directors, co-chairmen, vice-chairmen, presidents, and independent non-executive directors, ensuring a diverse and independent corporate governance structure - Executive Directors include Ms. Chu Lam Yiu (Chairperson and CEO), Mr. Lam Ka Yu (Co-Chairman and Vice President), Mr. Hsia Li Chun (Vice Chairman and President), Mr. Poon Siu Kwok (Vice President and Company Secretary), Ms. Lam Ka Yan, and Ms. Choi Man Ha[5](index=5&type=chunk) - Independent Non-Executive Directors are Mr. Li Luk Shiu, Mr. Jonathan Jun YAN, and Mr. Hou Hai Tao[5](index=5&type=chunk) [Committee Composition](index=3&type=section&id=Committees) The company has an Audit Committee, Remuneration Committee, and Nomination Committee, with independent non-executive directors holding key positions to strengthen corporate governance and oversight functions - The Audit Committee Chairman is Mr. Li Luk Shiu, with members including Mr. Jonathan Jun YAN and Mr. Hou Hai Tao[5](index=5&type=chunk) - The Remuneration Committee Chairman is Mr. Li Luk Shiu, with members including Mr. Hou Hai Tao and Mr. Hsia Li Chun[7](index=7&type=chunk) - The Nomination Committee Chairman is Ms. Chu Lam Yiu, with members including Mr. Li Luk Shiu, Mr. Jonathan Jun YAN, Mr. Hou Hai Tao, and Ms. Lam Ka Yan[6](index=6&type=chunk)[7](index=7&type=chunk) [Key Advisors and Contacts](index=3&type=section&id=Key%20Advisors%20and%20Contacts) The company appointed PricewaterhouseCoopers as auditor and Haiwen & Partners as legal advisor, listing key bankers, headquarters and registered office addresses, stock code, and company website - The auditor is PricewaterhouseCoopers[6](index=6&type=chunk) - The legal advisor is Haiwen & Partners[7](index=7&type=chunk) - Key bankers include China CITIC Bank, China Minsheng Bank, Hang Seng Bank, and Industrial Bank[9](index=9&type=chunk) - The company's stock code is The Stock Exchange of Hong Kong Limited: 00336[10](index=10&type=chunk) - The company website is www.hbglobal.com[11](index=11&type=chunk) [Financial Highlights](index=5&type=section&id=Financial%20Highlights) [Key Financial Performance Indicators](index=5&type=section&id=Key%20Financial%20Performance%20Indicators) For the six months ended June 30, 2025, the company's revenue increased by **2.5%** year-on-year to **RMB 1.621 billion**, with profit for the period surging by **158.5%** to **RMB 119.65 million**, primarily due to reduced impairment provisions in the prior period Unaudited Financial Summary for the Six Months Ended June 30, 2025 | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Percentage Change | | :--- | :--- | :--- | :--- | | Revenue | 1,621,157 | 1,582,285 | +2.5% | | Gross profit | 703,462 | 709,254 | -0.8% | | Gross profit margin | 43.4% | 44.8% | -1.4% | | EBITDA1 | 293,690 | 262,021 | +12.1% | | EBITDA margin | 18.1% | 16.6% | +1.5% | | Operating profit | 122,194 | 100,287 | +21.8% | | Operating profit margin | 7.5% | 6.3% | +1.2% | | Profit for the period | 119,650 | 46,286 | +158.5% | | Profit attributable to equity holders of the Company | 118,081 | 29,662 | +298.1% | | Net cash generated from operating activities | 214,058 | 113,507 | +88.6% | | Basic and diluted earnings per share (RMB cents) | 3.66 | 0.92 | - | | Proposed/Paid interim dividend per share (HK cents) | 1.2 | 0.3 | +300% | | Proposed/Paid special dividend per share (HK cents) | 3.2 | 3.2 | 0% | Unaudited Non-HKFRS Measures for the Six Months Ended June 30, 2025 | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Percentage Change | | :--- | :--- | :--- | :--- | | Adjusted EBITDA | 366,450 | 356,172 | +2.9% | | Adjusted EBITDA margin | 22.6% | 22.5% | +0.1% | | Adjusted operating profit | 194,954 | 194,438 | +0.3% | | Adjusted operating profit margin | 12.0% | 12.3% | -0.3% | | Adjusted profit for the period | 192,410 | 188,396 | +2.1% | [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) [Overview](index=6&type=section&id=Overview) In the first half of 2025, the global economy faced challenges such as high inflation, high interest rates, and geopolitical conflicts, while weak domestic consumption intensified market competition; the Group actively responded by leveraging AI technology to enhance operational efficiency, expanding into overseas markets in Southeast Asia, and strengthening risk management to maintain stable operations - The global economy was affected by changes in tariff policies and geopolitical conflicts, with slow growth in major economies, and negative impacts from high inflation, high interest rates, and supply chain disruptions[16](index=16&type=chunk) - Insufficient domestic consumer demand and intensified "price wars" among enterprises exacerbated market competition, eroding profit margins[16](index=16&type=chunk) - The Group introduced AI technology into operations and management, enhancing intelligence and digitalization levels[17](index=17&type=chunk)[18](index=18&type=chunk) - Factories were built and put into operation in Southeast Asia, steadily advancing overseas market development[17](index=17&type=chunk)[18](index=18&type=chunk) - Resources were invested to optimize operating procedures and improve regulations, reducing operational risks from various aspects including climate change, safety production, and compliance[17](index=17&type=chunk)[18](index=18&type=chunk) [Industry Overview](index=7&type=section&id=Industry%20Overview) During the reporting period, the tobacco industry accelerated harm reduction transformation, increasing sales of HNB and new smokeless products; the food and beverage industry trended towards health, emotional, and rational consumption; the daily chemical industry saw demand for natural, eco-friendly products; and the condiment industry faced slow growth in catering and price competition, necessitating enhanced digital marketing and supply chain management [Overview of the Tobacco Industry](index=7&type=section&id=Overview%20of%20the%20tobacco%20industry) In the first half of 2025, cigarette production increased by **0.8%** year-on-year, with traditional cigarettes remaining dominant; the global tobacco industry accelerated its harm reduction transformation, with HNB products and new smokeless products like oral tobacco continuously increasing their sales share, becoming a mid-to-long-term strategic focus for industry chain enterprises - In the first half of 2025, cigarette production reached **27.513 million boxes**, a **0.8%** year-on-year increase[19](index=19&type=chunk)[21](index=21&type=chunk) - The global tobacco industry accelerated its harm reduction transformation, with international tobacco companies increasing investment in technology, production capacity, and market for HNB tobacco products[19](index=19&type=chunk)[21](index=21&type=chunk) - The competitiveness and supply capability of new smokeless products (such as HNB and oral tobacco) became a core strategic direction for industry chain enterprises[19](index=19&type=chunk)[21](index=21&type=chunk) [Overview of the Food, Beverage, and Daily Chemical Industries](index=7&type=section&id=Overview%20of%20the%20food%20and%20beverage%20industry%20and%20daily-use%20chemical%20industry) The food and beverage industry was influenced by health, emotional, and rational consumption trends, with consumers preferring healthy, functional, high-quality low-price, and sustainable products; the daily chemical industry saw increased demand for natural, eco-friendly, and additive-free products, driving product ingredient upgrades and increased R&D and marketing investment by companies, with social media and online stores becoming important sales channels Year-on-Year Growth in Value Added for Food, Beverage, and Daily Chemical Industries in H1 2025 | Industry | Year-on-Year Growth Rate | | :--- | :--- | | Agricultural and sideline food processing industry | 7.5% | | Food manufacturing industry | 6.3% | | Liquor, beverage, and refined tea manufacturing industry | 4.7% | - Key consumption trends in the food and beverage industry are healthy consumption, emotional consumption, and rational consumption, with consumers focusing on product health, functionality, cost-effectiveness, and sustainability[20](index=20&type=chunk)[22](index=22&type=chunk) - Increased consumer demand for natural, eco-friendly, and additive-free products in the daily chemical industry drove product ingredient upgrades and increased investment in technology, R&D, and marketing by enterprises[20](index=20&type=chunk)[22](index=22&type=chunk) - Social media and online stores increasingly became important sales channels for daily chemical brands[20](index=20&type=chunk)[22](index=22&type=chunk) [Overview of the Condiment Industry](index=8&type=section&id=Overview%20of%20the%20condiment%20industry) In the first half of 2025, national catering industry revenue grew by **4.3%** year-on-year

[Management Discussion and Analysis](index=3&type=section&id=Management%20Discussion%20and%20Analysis) This section outlines Playmates Group's overall operating performance in H1 2025, covering key financial metrics such as revenue, gross profit, operating loss, and loss per share across its three main business segments: Property Investment and Management, Playmates Toys, and Portfolio Investments [Overview](index=3&type=section&id=Overview) In H1 2025, Playmates Group's total revenue significantly decreased by 50.4% year-on-year to HK$261.1 million, mainly due to a 58.3% drop in toy sales, leading to expanded operating loss and increased loss attributable to owners of the Company Key Financial Indicators Comparison for H1 2025 (HK$ thousand) | Indicator | H1 2025 | H1 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Group Revenue | 261,116 | 526,666 | -50.4% | | - Toy Business | 185,514 | 445,141 | -58.3% | | - Property Investment and Management Business | 74,800 | 79,339 | -5.7% | | - Investment Business | 802 | 2,186 | -63.3% | | Gross Profit | 146,835 | 324,137 | -54.7% | | Net Revaluation Loss on Investment Properties | (234,926) | (249,529) | -5.8% | | Operating Loss | (227,641) | (121,081) | +88.0% | | Loss Before Income Tax | (198,940) | (80,414) | +147.4% | | Loss Attributable to Owners of the Company | (205,570) | (159,880) | +28.6% | | Basic Loss Per Share (HK cents) | (9.94) | (7.72) | +28.8% | | Interim Dividend Per Share (HK cents) | 1.50 | 1.50 | 0.0% | - Group's overall revenue significantly decreased by **50.4% year-on-year**, primarily due to a **58.3% reduction in toy business revenue**[5](index=5&type=chunk) - Operating loss expanded by **88.0% year-on-year** to **HK$228 million**, mainly impacted by underperforming toy business and investment property revaluation losses[5](index=5&type=chunk) [Property Investment and Management](index=3&type=section&id=Property%20Investment%20and%20Management) In H1 2025, revenue for the Property Investment and Management segment decreased by 5.7% year-on-year to HK$74.8 million, with a net revaluation loss of HK$235 million on investment properties, resulting in a segment operating loss of HK$183 million Property Investment and Management Segment Performance (HK$ thousand) | Indicator | H1 2025 | H1 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 74,800 | 79,339 | -5.7% | | Net Revaluation Loss on Investment Properties | (234,926) | (249,529) | -5.8% | | Segment Operating Loss (including revaluation) | (183,100) | (190,300) | -3.8% | - The fair value of investment properties was **HK$4.2 billion**, with a **net revaluation loss of HK$235 million** recognized in the consolidated income statement[6](index=6&type=chunk) - The Group remains optimistic about the long-term prospects of property investment, aiming to balance its portfolio for capital appreciation and recurring income growth[10](index=10&type=chunk) [Property Investment](index=4&type=section&id=Property%20Investment) The Group's main investment properties include commercial, residential, and industrial properties in Hong Kong, with overseas properties accounting for 9.6% of the total portfolio, experiencing a 5.1% decline in rental income and a drop in overall occupancy rate Investment Property Rental Income and Occupancy Rate | Indicator | H1 2025 | H1 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Total Rental Income (HK$ thousand) | 65,000 | 68,500 | -5.1% | | Overall Occupancy Rate | 58.8% | 60.3% (Dec 31, 2024) | -1.5 percentage points | - Overseas investment properties accounted for **9.6% of the Group's total investment property portfolio fair value**, an increase from **8.6% at the end of 2024**[7](index=7&type=chunk) - The planning application for converting Tuen Mun Playmates Industrial Building to commercial use has received conditional approval, with subsequent approval procedures underway[9](index=9&type=chunk) [Commercial](index=4&type=section&id=Commercial) Hong Kong's retail and commercial property markets continued to face challenges in H1 2025, primarily due to changing spending patterns of inbound tourists and an oversupply of office space - Hong Kong's retail and commercial property markets continued to face challenges in H1 2025, primarily due to changing spending patterns of inbound tourists and an oversupply of office space[8](index=8&type=chunk) [Residential](index=4&type=section&id=Residential) The residential market performed weakly in a challenging economic environment, but renovation of Mid-Levels units is expected to enhance long-term value - The residential market performed weakly in a challenging economic environment, but renovation of Mid-Levels units is expected to enhance long-term value[8](index=8&type=chunk) [Industrial](index=4&type=section&id=Industrial) The planning application for converting Playmates Industrial Building in Tuen Mun to commercial use was conditionally approved in January 2020, with subsequent approval procedures ongoing - The planning application for converting Playmates Industrial Building to commercial use was conditionally approved in January 2020, with subsequent approval procedures ongoing[9](index=9&type=chunk) [Property Management](index=5&type=section&id=Property%20Management) Property management business revenue decreased by 9.3% year-on-year to HK$9.8 million, with Savills Property Management Limited appointed to provide comprehensive services for key buildings Property Management Business Revenue (HK$ thousand) | Indicator | H1 2025 | H1 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 9,800 | 10,800 | -9.3% | - Savills Property Management Limited manages Playmates Group Building and Playmates Industrial Building, providing comprehensive property management services[10](index=10&type=chunk) [Playmates Toys](index=5&type=section&id=Playmates%20Toys) In H1 2025, Playmates Toys' global revenue significantly decreased by 58% to HK$186 million, shifting from profit to a loss of HK$45 million due to reduced product shipments, lack of brand entertainment, and trade tensions Playmates Toys Segment Performance (HK$ thousand) | Indicator | H1 2025 | H1 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Global Revenue | 186,000 | 445,000 | -58.2% | | Toy Sales Gross Profit Margin | 43% | 56% | -13 percentage points | | Operating Loss/(Profit) | (45,000) | 68,000 | Shift from profit to loss | | Net Loss/(Profit) | (25,600) | 91,500 | Shift from profit to loss | - Revenue decline primarily attributed to reduced shipments of **"Godzilla x Kong" products**, lack of major entertainment events for the **"Teenage Mutant Ninja Turtles" brand**, and escalating trade tensions[11](index=11&type=chunk) - Gross profit margin decreased due to **tariffs on US imports**, increased proportion of **product development and tooling costs**, and higher clearance costs for discontinued products[11](index=11&type=chunk) - The Group is prudently evaluating alternative sourcing options and plans to implement **selective price adjustments in Q3 2025** to mitigate negative tariff pressures[13](index=13&type=chunk) [Brand Overview](index=6&type=section&id=Brand%20Overview) Playmates Toys actively develops new product lines to coincide with entertainment content releases for its key brands, including "Teenage Mutant Ninja Turtles," "Power Rangers," "Godzilla x Kong," and "Winx," ensuring continuous market engagement - The Group is actively developing new products to coincide with the launch of entertainment content such as the **"Teenage Mutant Ninja Turtles" Paramount+ series and movie sequel**[14](index=14&type=chunk) - A global licensing agreement with Hasbro grants the Group authorization to manufacture and distribute **"Power Rangers" toys**, with initial shipments receiving positive market feedback[15](index=15&type=chunk) - The **"Winx Club: The Magic Is Back" CGI reboot animation** will premiere on Netflix in October 2025, with the Group simultaneously launching new fashion doll and role-play toy lines[17](index=17&type=chunk) [Teenage Mutant Ninja Turtles](index=6&type=section&id=Teenage%20Mutant%20Ninja%20Turtles) The "Teenage Mutant Ninja Turtles" series will launch a Paramount+ series and a 2027 movie sequel, with spin-off series already premiered on Paramount+ and Netflix in August 2024 and January 2025 - The **"Teenage Mutant Ninja Turtles" series** will launch a Paramount+ series and a 2027 movie sequel, with spin-off series already premiered on Paramount+ and Netflix in August 2024 and January 2025[14](index=14&type=chunk) [Power Rangers](index=6&type=section&id=Power%20Rangers) The Group signed a global licensing agreement with Hasbro to produce and distribute "Power Rangers" toys, with the first "Mighty Morphin Power Rangers: Re-Ignition" products already shipped - The Group signed a global licensing agreement with Hasbro to produce and distribute **"Power Rangers" toys**, with the first **"Mighty Morphin Power Rangers: Re-Ignition" products** already shipped[15](index=15&type=chunk) [Godzilla x Kong](index=6&type=section&id=Godzilla%20x%20Kong) The Group will continue to develop and expand the "Godzilla x Kong MonsterVerse" product series to maintain brand popularity - The Group will continue to develop and expand the **"Godzilla x Kong MonsterVerse" product series** to maintain brand popularity[16](index=16&type=chunk) [Winx](index=7&type=section&id=Winx) The "Winx Club: The Magic Is Back" CGI reboot animation will premiere on Netflix in October 2025, with the Group simultaneously launching new fashion doll and role-play toy lines - The **"Winx Club: The Magic Is Back" CGI reboot animation** will premiere on Netflix in October 2025, with the Group simultaneously launching new fashion doll and role-play toy lines[17](index=17&type=chunk) [Portfolio Investments](index=7&type=section&id=Portfolio%20Investments) As of June 30, 2025, the fair value of the Group's investment portfolio decreased to HK$98.9 million, representing 1.7% of total assets, with a net investment gain of HK$11.5 million recorded in H1 Portfolio Investments Overview (HK$ thousand) | Indicator | June 30, 2025 | December 31, 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Investment Portfolio Fair Value | 98,900 | 109,100 | -9.4% | | % of Group's Total Assets | 1.7% | 1.8% | -0.1 percentage points | | Hong Kong Listed Securities | 23,600 | 32,400 | -27.2% | | Overseas Listed Securities | 75,300 | 76,700 | -1.8% | Portfolio Investment Income (HK$ thousand) | Indicator | H1 2025 | H1 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Net Investment Gain | 11,500 | 18,500 | -37.8% | | Dividend and Interest Income | 22,200 | 32,200 | -31.0% | - The investment portfolio primarily includes ten listed securities such as **NVIDIA, Amazon, Disney, Netflix, Tencent, Microsoft, Alphabet, Sun Hung Kai Properties, Goldman Sachs, and Apple**[19](index=19&type=chunk) [Condensed Consolidated Financial Information](index=8&type=section&id=Condensed%20Consolidated%20Financial%20Information) This section presents Playmates Group's condensed consolidated financial statements for the six months ended June 30, 2025, including the income statement, statement of comprehensive income, statement of financial position, cash flow statement, and statement of changes in equity, reflecting significant losses and operational challenges [Condensed Consolidated Income Statement](index=8&type=section&id=Condensed%20Consolidated%20Income%20Statement) In H1 2025, Group revenue decreased by 50.4% year-on-year to HK$261.1 million, and gross profit fell by 54.7% to HK$147 million, leading to an expanded operating loss of HK$228 million and a basic loss per share of 9.94 HK cents Key Data from Condensed Consolidated Income Statement (HK$ thousand) | Indicator | H1 2025 | H1 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 261,116 | 526,666 | -50.4% | | Cost of Sales | (114,281) | (202,529) | -43.6% | | Gross Profit | 146,835 | 324,137 | -54.7% | | Net Revaluation Loss on Investment Properties | (234,926) | (249,529) | -5.8% | | Operating Loss | (227,641) | (121,081) | +88.0% | | Loss Before Income Tax | (198,940) | (80,414) | +147.4% | | Loss for the Period | (218,158) | (114,899) | +89.9% | | Loss Attributable to Owners of the Company | (205,570) | (159,880) | +28.6% | | Basic Loss Per Share (HK cents) | (9.94) | (7.72) | +28.8% | - Marketing and license fees, and selling and distribution expenses both significantly decreased, while administrative expenses slightly increased[21](index=21&type=chunk) [Condensed Consolidated Statement of Comprehensive Income](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) In H1 2025, the Group's loss for the period was HK$218 million, partially offset by a positive exchange difference of HK$26.71 million from overseas subsidiaries, resulting in a total comprehensive loss of HK$191 million Key Data from Condensed Consolidated Statement of Comprehensive Income (HK$ thousand) | Indicator | H1 2025 | H1 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Loss for the Period | (218,158) | (114,899) | +89.9% | | Exchange Difference Arising from Translation of Overseas Subsidiaries | 26,710 | (10,936) | Shift from negative to positive | | Total Comprehensive Income for the Period | (191,448) | (125,835) | +52.1% | | Total Comprehensive Income Attributable to Owners of the Company | (178,860) | (170,816) | +4.7% | - Exchange differences from overseas subsidiaries turned from a loss to a **profit year-on-year**, partially offsetting the loss for the period[23](index=23&type=chunk) [Condensed Consolidated Statement of Financial Position](index=10&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets decreased to HK$5.345 billion, with investment properties and net current assets declining, while total bank loans reduced to HK$137 million Key Data from Condensed Consolidated Statement of Financial Position (HK$ thousand) | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Investment Properties | 4,208,052 | 4,416,969 | -4.7% | | Total Assets Less Current Liabilities | 5,345,167 | 5,638,787 | -5.2% | | Net Current Assets | 952,320 | 1,039,474 | -8.4% | | Bank Loans (Total) | 136,800 | 175,400 | -22.0% | | Cash and Bank Balances | 1,081,282 | 1,102,889 | -2.0% | | Total Equity | 5,307,136 | 5,595,364 | -5.1% | - Trade receivables significantly decreased from **HK$138 million at the end of 2024** to **HK$45.7 million**, reflecting a decline in toy business sales[24](index=24&type=chunk) - Trade payables increased from **HK$23.27 million at the end of 2024** to **HK$46.37 million**[24](index=24&type=chunk) [Condensed Consolidated Cash Flow Statement](index=12&type=section&id=Condensed%20Consolidated%20Cash%20Flow%20Statement) In H1 2025, net cash generated from operating activities significantly decreased to HK$80.84 million, while net cash from investing activities substantially increased to HK$172 million, primarily due to asset disposals and interest received Key Data from Condensed Consolidated Cash Flow Statement (HK$ thousand) | Indicator | H1 2025 | H1 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 80,840 | 168,952 | -52.1% | | Net Cash Generated from Investing Activities | 171,593 | 3,429 | +4903.5% | | Net Cash Used in Financing Activities | (139,390) | (147,886) | -5.7% | | Net Increase in Cash and Cash Equivalents | 113,043 | 24,495 | +361.5% | | Cash and Cash Equivalents at Period-End | 742,980 | 503,518 | +47.6% | - Net cash from investing activities significantly increased, mainly due to **increased proceeds from disposal of financial assets** to **HK$25.69 million** (H1 2024: HK$17.02 million) and higher interest received[27](index=27&type=chunk) - Dividends paid to owners of the Company and non-controlling interests totaled **HK$96.84 million**[27](index=27&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=14&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) As of June 30, 2025, total equity attributable to owners of the Company decreased to HK$4.764 billion, impacted by a loss for the period but partially offset by positive exchange differences from overseas subsidiaries Key Data from Condensed Consolidated Statement of Changes in Equity (HK$ thousand) | Indicator | June 30, 2025 | January 1, 2025 | Change | | :--- | :--- | :--- | :--- | | Equity Attributable to Owners of the Company | 4,764,113 | 5,004,982 | -4.8% | | Non-controlling Interests | 543,023 | 590,382 | -8.0% | | Total Equity | 5,307,136 | 5,595,364 | -5.1% | - Loss for the period led to a decrease in retained earnings, but exchange reserves increased by **HK$26.71 million** due to exchange differences from overseas subsidiaries[30](index=30&type=chunk) - Second interim dividend and special interim dividend for 2024, both **1.5 HK cents per share**, totaling **HK$62.04 million**, were paid[30](index=30&type=chunk) [Notes to the Condensed Consolidated Financial Information](index=16&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Information) This section details the basis of preparation, accounting policy changes, segment information, other income, taxation, dividends, loss per share, properties, receivables and payables, bank loans, financial instruments, and commitments for the Group's condensed consolidated financial information, providing a deeper understanding of its financial performance and position [Basis of Preparation and Accounting Policies](index=16&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) This condensed consolidated financial information is prepared in accordance with HKAS 34 "Interim Financial Reporting" and HKEX Listing Rules, consistent with the accounting policies adopted for the 2024 annual financial statements - Financial information prepared in accordance with **HKAS 34 "Interim Financial Reporting"** and **HKEX Listing Rules**[31](index=31&type=chunk) - Accounting policies adopted are consistent with those used for the annual financial statements for the year ended December 31, 2024[32](index=32&type=chunk) [Changes in Accounting Policies](index=16&type=section&id=Changes%20in%20Accounting%20Policies) Certain amendments to Hong Kong Financial Reporting Standards became effective for the first time in the current accounting period but had no significant impact on the Group's results or financial position - Amendments to Hong Kong Financial Reporting Standards effective for the first time in this accounting period had **no significant impact** on the Group's results and financial position[33](index=33&type=chunk) [Revenue and Segment Information](index=16&type=section&id=Revenue%20and%20Segment%20Information) The Group identified three reportable segments: Property Investment and Management, Investment Business, and Toy Business, with total revenue of HK$261 million in H1 2025, showing a shift from profit to loss in the toy business and expanded losses in property investment - The Group identified three reportable segments: **Property Investment and Management, Investment Business, and Toy Business**[34](index=34&type=chunk)[35](index=35&type=chunk) Revenue by Major Product or Service Line for H1 2025 (HK$ thousand) | Revenue Source | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Toy Sales | 185,514 | 445,141 | | Property Management Income | 9,754 | 10,804 | | Investment Property Rental Income | 65,046 | 68,535 | | Dividend Income | 188 | 507 | | Interest Income | 614 | 1,679 | | **Total Revenue** | **261,116** | **526,666** | [Segment Results, Assets and Liabilities](index=17&type=section&id=Segment%20Results%2C%20Assets%20and%20Liabilities) In H1 2025, the Toy Business segment recorded an operating loss of HK$45.4 million, while the Property Investment and Management segment's operating loss was HK$183 million, with the Investment Business segment showing a small operating profit Segment Operating Performance for H1 2025 (HK$ thousand) | Segment | H1 2025 Operating (Loss)/Profit | H1 2024 Operating (Loss)/Profit | | :--- | :--- | :--- | | Property Investment and Management Business | (183,085) | (190,320) | | Investment Business | 777 | 2,161 | | Toy Business | (45,395) | 68,210 | | **Total** | **(227,703)** | **(119,949)** | Segment Assets as of June 30, 2025 (HK$ thousand) | Segment | Assets as of June 30, 2025 | Assets as of December 31, 2024 | | :--- | :--- | :--- | | Property Investment and Management Business | 4,359,795 | 4,565,614 | | Investment Business | 56,962 | 74,191 | | Toy Business | 1,267,866 | 1,370,418 | | **Total Assets** | **5,742,544** | **6,067,926** | [Geographical Segment Information](index=22&type=section&id=Geographical%20Segment%20Information) In H1 2025, the Group's revenue from external customers primarily originated from the United States, Hong Kong, and Europe, with designated non-current assets mainly located in Hong Kong Revenue from External Customers for H1 2025 (HK$ thousand) | Region | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Hong Kong | 75,602 | 81,629 | | United States | 131,459 | 309,462 | | Europe | 31,351 | 90,536 | | Other Regions | 22,704 | 44,639 | | **Total** | **261,116** | **526,666** | Designated Non-Current Assets as of June 30, 2025 (HK$ thousand) | Region | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Hong Kong | 3,894,867 | 4,125,229 | | United States | 179,785 | 181,226 | | Europe | 199,560 | 181,703 | | Other Asia Pacific Regions | 82,141 | 73,490 | | **Total** | **4,356,353** | **4,561,648** | [Major Customers](index=22&type=section&id=Major%20Customers) In H1 2025, the Group had three customers whose transactions individually accounted for over 10% of total revenue, compared to two major customers in the prior period - In H1 2025, the Group had **three customers** whose transactions individually accounted for **over 10% of total revenue**, compared to two in H1 2024[44](index=44&type=chunk) Major Customer Sales for H1 2025 (HK$ thousand) | Customer | H1 2025 Sales | | :--- | :--- | | Customer A | 56,572 | | Customer B | 51,054 | | Customer C | 50,122 | [Net Other Income](index=23&type=section&id=Net%20Other%20Income) In H1 2025, the Group's net other income decreased to HK$33.24 million, primarily comprising unrealized gains on financial assets at fair value through profit or loss and interest income from Playmates Toys treasury Composition of Net Other Income (HK$ thousand) | Income Source | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Gain on Financial Assets at Fair Value Through Profit or Loss (Unrealized) | 12,325 | 14,005 | | Net Gain on Financial Assets at Fair Value Through Profit or Loss (Realized) | (845) | 4,511 | | Playmates Toys Treasury Interest Income | 21,149 | 29,811 | | Playmates Toys Treasury Dividend Income | 237 | 240 | | Others | 376 | 84 | | **Total** | **33,242** | **48,651** | - Realized gains on financial assets at fair value through profit or loss turned from a **profit to a loss** year-on-year[45](index=45&type=chunk) [(Loss)/Profit Before Income Tax](index=23&type=section&id=(Loss)%2FProfit%20Before%20Income%20Tax) In H1 2025, loss before income tax was HK$199 million, with key deductions including cost of inventories sold, product development and tooling expenses, royalty expenses, and interest expenses Key Deductions/(Additions) for Loss Before Income Tax (HK$ thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Cost of Inventories Sold | 90,999 | 184,619 | | Product Development and Tooling Expenses | 14,946 | 10,638 | | Royalty Expenses | 25,849 | 58,936 | | Directors' and Employees' Remuneration | 41,926 | 39,857 | | Depreciation (Total) | 6,202 | 6,336 | | Interest Expenses (Total) | 3,766 | 6,565 | | Net Exchange Gain | (1,075) | (315) | - Product development and tooling expenses increased year-on-year, while royalty expenses significantly decreased year-on-year[46](index=46&type=chunk) [Income Tax Expense](index=24&type=section&id=Income%20Tax%20Expense) In H1 2025, income tax expense decreased to HK$19.22 million, comprising Hong Kong profits tax and overseas taxation, with cumulative unrecognized tax losses significantly increasing to HK$66.16 million Composition of Income Tax Expense (HK$ thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Hong Kong Profits Tax | 11,273 | 15,565 | | Overseas Taxation | 7,578 | 12,897 | | Deferred Tax | 367 | 6,023 | | **Total Income Tax Expense** | **19,218** | **34,485** | - The Group's cumulative unrecognized tax losses significantly increased from **HK$11.07 million as of December 31, 2024** to **HK$66.16 million**[48](index=48&type=chunk) [Dividends](index=24&type=section&id=Dividends) The Board resolved to declare an interim dividend of 1.5 HK cents per share, payable on September 19, 2025, consistent with the prior period's interim and special interim dividends totaling HK$62.04 million - The Board resolved to declare an interim dividend of **1.5 HK cents per share**, consistent with the prior period[49](index=49&type=chunk) Dividends Paid During Interim Period (HK$ thousand) | Dividend Type | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Second Interim Dividend for 2024 (1.5 HK cents per share) | 31,020 | 31,046 | | Special Interim Dividend for 2024 (1.5 HK cents per share) | 31,020 | 31,045 | | **Total** | **62,040** | **62,091** | [Interim Dividend](index=24&type=section&id=Interim%20Dividend) The Board resolved on August 15, 2025, to declare an interim dividend of 1.5 HK cents per share, payable on September 19, 2025, to shareholders on record as of September 2, 2025 - The Board resolved to declare an interim dividend of **1.5 HK cents per share**, payable on **September 19, 2025**[49](index=49&type=chunk) [Dividends Paid for Previous Financial Year During Interim Period](index=25&type=section&id=Dividends%20Paid%20for%20Previous%20Financial%20Year%20During%20Interim%20Period) During the interim period, the Group paid the second interim dividend and special interim dividend for 2024, both 1.5 HK cents per share, totaling HK$62.04 million - Second interim dividend and special interim dividend for 2024, both **1.5 HK cents per share**, totaling **HK$62.04 million**, were paid[50](index=50&type=chunk) [Loss Per Share](index=25&type=section&id=Loss%20Per%20Share) In H1 2025, basic loss per share was 9.94 HK cents, calculated based on the loss attributable to owners of the Company and the weighted average of ordinary shares outstanding, with diluted loss per share being the same due to no potential ordinary shares Loss Per Share (HK cents) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Basic Loss Per Share | (9.94) | (7.72) | | Diluted Loss Per Share | (9.94) | (7.72) | - Diluted loss per share was the same as basic loss per share, as there were **no potential ordinary shares** during the period[51](index=51&type=chunk) [Investment Properties and Other Property, Plant and Equipment](index=26&type=section&id=Investment%20Properties%20and%20Other%20Property%2C%20Plant%20and%20Equipment) As of June 30, 2025, the net book value of investment properties decreased by 4.7% to HK$4.208 billion, primarily due to a net revaluation loss of HK$235 million, while other property, plant and equipment slightly increased Net Book Value of Investment Properties and Other Property, Plant and Equipment (HK$ thousand) | Item | June 30, 2025 | January 1, 2025 | Change | | :--- | :--- | :--- | :--- | | Investment Properties | 4,208,052 | 4,416,969 | -4.7% | | Other Property, Plant and Equipment | 136,193 | 133,551 | +2.0% | - A **net revaluation loss of HK$235 million** on investment properties was the primary reason for the decrease in their net book value[52](index=52&type=chunk) [Trade Receivables](index=27&type=section&id=Trade%20Receivables) As of June 30, 2025, net trade receivables significantly decreased to HK$45.7 million from HK$138 million at the end of 2024, reflecting a decline in toy business sales, with a customer discount provision of HK$39.25 million Trade Receivables (HK$ thousand) | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total Trade Receivables | 84,950 | 177,322 | -52.1% | | Provision for Customer Discounts | (39,253) | (38,847) | +1.0% | | **Net Trade Receivables** | **45,697** | **138,475** | **-67.0%** | - Aging analysis shows trade receivables aged **0-60 days significantly decreased** from **HK$90.81 million to HK$39.04 million**[53](index=53&type=chunk) [Deposits Paid, Other Receivables and Prepayments](index=28&type=section&id=Deposits%20Paid%2C%20Other%20Receivables%20and%20Prepayments) As of June 30, 2025, total deposits paid, other receivables, and prepayments were HK$67.14 million, similar to the end of 2024, primarily comprising prepaid royalties, tooling expenses, and marketing expenses Composition of Deposits Paid, Other Receivables and Prepayments (HK$ thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Prepayments for Fixed Assets | 2,798 | – | | Prepaid Royalties | 48,454 | 48,851 | | Prepaid Tooling and Production Line Expenses | 6,820 | 4,163 | | Prepaid Marketing Expenses | 4,728 | 4,064 | | Deferred Rental Income + Other Prepayments, Deposits Paid and Receivables | 7,134 | 11,077 | | **Total** | **67,136** | **68,155** | - Prepaid royalties can be used to offset future royalty payments for licensed toy product sales[54](index=54&type=chunk) [Bank Loans](index=29&type=section&id=Bank%20Loans) As of June 30, 2025, the Group's total bank loans decreased by 22% to HK$137 million, all denominated in HKD with a significantly lower effective annual interest rate of 1.56% Bank Loans Overview (HK$ thousand) | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Repayable within One Year | 136,800 | 172,200 | -20.6% | | Repayable within Second Year | – | 3,200 | -100% | | **Total Bank Loans** | **136,800** | **175,400** | **-22.0%** | - The effective annual interest rate on bank loans significantly decreased from **5.49% as of December 31, 2024** to **1.56% as of June 30, 2025**[55](index=55&type=chunk) - Bank credit facilities of certain subsidiaries are secured by **investment properties and land and buildings**[56](index=56&type=chunk) [Trade Payables](index=29&type=section&id=Trade%20Payables) As of June 30, 2025, total trade payables significantly increased to HK$46.37 million from HK$23.27 million at the end of 2024, with the majority concentrated within zero to thirty days Aging Analysis of Trade Payables (HK$ thousand) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 0 to 30 Days | 42,550 | 21,851 | | 31 to 60 Days | 1,758 | 1,389 | | Over 60 Days | 2,065 | 34 | | **Total** | **46,373** | **23,274** | - Total trade payables nearly doubled year-on-year, primarily concentrated within **30 days**[57](index=57&type=chunk) [Deposits Received, Other Payables and Accrued Expenses](index=30&type=section&id=Deposits%20Received%2C%20Other%20Payables%20and%20Accrued%20Expenses) As of June 30, 2025, total deposits received, other payables, and accrued expenses decreased to HK$131 million, primarily including accrued royalties, security deposits from tenants, and accrued product development and marketing expenses Composition of Deposits Received, Other Payables and Accrued Expenses (HK$ thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Contract Liabilities (Purchase commitment deposits and advance sales deposits) | 17,174 | 17,273 | | Security Deposits and Advance Receipts from Tenants | 25,383 | 25,308 | | Accrued Product Development, Sales, Marketing, Licensing and Distribution Expenses | 18,270 | 16,931 | | Accrued Royalties | 49,182 | 68,580 | | Accrued Directors' and Employees' Remuneration | 5,580 | 14,654 | | Withholding Tax Payable | 5,016 | 3,394 | | Accrued Administrative Expenses and Professional Fees | 10,212 | 10,235 | | **Total** | **130,817** | **156,375** | - Accrued royalties significantly decreased year-on-year, while accrued product development, sales, marketing, licensing, and distribution expenses slightly increased[58](index=58&type=chunk) [Share Capital](index=30&type=section&id=Share%20Capital) As of June 30, 2025, the Company's issued and fully paid share capital was HK$20.68 million, comprising 2.068 billion ordinary shares, consistent with December 31, 2024, with no share repurchase, holding, or sale activities during the period Share Capital Overview (HK$ thousand) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Issued and Fully Paid Share Capital | 20,680 | 20,680 | | Number of Shares | 2,068,000,000 | 2,068,000,000 | - The Company did not engage in any share repurchase, holding, or sale activities during the period[59](index=59&type=chunk) [Financial Assets and Liabilities Measured at Fair Value](index=31&type=section&id=Financial%20Assets%20and%20Liabilities%20Measured%20at%20Fair%20Value) As of June 30, 2025, total financial assets at fair value through profit or loss were HK$98.92 million, all classified as Level 1 valuation, indicating listed equity investments measured using unadjusted quoted prices in active markets Financial Assets Measured at Fair Value (HK$ thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Listed Equity Investments in Hong Kong | 23,581 | 32,371 | | Listed Equity Investments Outside Hong Kong | 75,343 | 76,745 | | **Total** | **98,924** | **109,116** | - All financial assets measured at fair value are classified as **Level 1 valuation**, indicating active market quotes are available[61](index=61&type=chunk) [Recurring Fair Value Measurements](index=31&type=section&id=Recurring%20Fair%20Value%20Measurements) The Group's recurring fair value measurements primarily target financial assets at fair value through profit or loss, all using Level 1 valuation based on unadjusted quoted prices in active markets, with no transfers between fair value levels during the period - The Group's financial asset fair value measurements are all based on **Level 1 valuation**, using unadjusted quoted prices in active markets[61](index=61&type=chunk) - No transfers occurred between different fair value levels during the period[62](index=62&type=chunk) [Financial Assets and Liabilities Not Measured at Fair Value](index=32&type=section&id=Financial%20Assets%20and%20Liabilities%20Not%20Measured%20at%20Fair%20Value) As of June 30, 2025, and December 31, 2024, the carrying amounts of most of the Group's financial assets and liabilities approximated their fair values - The carrying amounts of most of the Group's financial assets and liabilities approximate their fair values[63](index=63&type=chunk) [Commitments](index=33&type=section&id=Commitments) As of June 30, 2025, the Group's total royalty commitments were HK$118 million, with HK$51.75 million due within one year, and total minimum future rentals receivable as a lessor within one year were HK$129 million, with no capital commitments outstanding Commitments Overview (HK$ thousand) | Commitment Type | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Royalty Commitments | 117,694 | 138,559 | | Lease Commitments (as Lessor, minimum rentals receivable within one year) | 129,202 | 120,808 | | Capital Commitments | – | – | [Royalty Commitments](index=33&type=section&id=Royalty%20Commitments) As of June 30, 2025, the Group's total contracted but unprovided royalty commitments were HK$118 million, with HK$51.75 million payable within one year and HK$65.95 million payable within the second to fifth years Royalty Commitments (HK$ thousand) | Period | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within One Year | 51,745 | 42,385 | | Second to Fifth Year | 65,949 | 96,174 | | **Total** | **117,694** | **138,559** | - Total royalty commitments decreased by **15.1% year-on-year**[64](index=64&type=chunk) [Lease Commitments](index=33&type=section&id=Lease%20Commitments) All committed leases as a lessee have commenced and are recognized as lease liabilities, while as a lessor, the Group's total minimum future rentals receivable under non-cancellable leases were HK$286 million as of June 30, 2025 - All of the Group's committed leases as a lessee have been recognized as lease liabilities[66](index=66&type=chunk) Total Minimum Rentals Receivable as Lessor (HK$ thousand) | Period | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within One Year | 129,202 | 120,808 | | After One Year but Within Two Years | 110,229 | 110,619 | | After Two Years but Within Three Years | 46,596 | 94,318 | | **Total** | **286,027** | **325,745** | [As Lessee](index=33&type=section&id=As%20Lessee) All committed leases by the Group as a lessee have commenced and are recognized as lease liabilities in accordance with HKFRS 16 - All of the Group's committed leases have been recognized as lease liabilities in accordance with **HKFRS 16**[66](index=66&type=chunk) [As Lessor](index=33&type=section&id=As%20Lessor) As a lessor, the Group's total minimum future rentals receivable within one year were HK$129 million - As a lessor, the Group's total minimum future rentals receivable within one year were **HK$129 million**[67](index=67&type=chunk) [Capital Commitments](index=34&type=section&id=Capital%20Commitments) As of June 30, 2025, and December 31, 2024, the Group had no outstanding capital commitments not provided for at period-end - The Group had **no outstanding capital commitments** at period-end[68](index=68&type=chunk) [Related Party Transactions](index=34&type=section&id=Related%20Party%20Transactions) For the six months ended June 30, 2025, and 2024, the Group did not enter into any significant transactions with related parties, nor did the Company engage in transactions with directors other than their emoluments - The Group did not enter into any **significant related party transactions** during the reporting period[70](index=70&type=chunk) [US Dollar Equivalents](index=34&type=section&id=US%20Dollar%20Equivalents) The US dollar equivalent figures in the report are for reference only and are calculated at an exchange rate of HK$7.8 to US$1 as of June 30, 2025 - US dollar equivalent figures are calculated at an exchange rate of **HK$7.8 to US$1** as of June 30, 2025, for reference only[71](index=71&type=chunk) [Information Required by Listing Rules](index=35&type=section&id=Information%20Required%20by%20Listing%20Rules) This section discloses the Group's liquidity and financial resources, asset pledges, employee information, share award schemes, share option schemes, directors' and substantial shareholders' interests in shares, and corporate governance practices, as required by the Listing Rules, ensuring transparency and compliance [Liquidity and Financial Resources](index=35&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's gearing ratio was 2.4% and its current ratio was 3.4, maintaining ample cash levels with most denominated in US dollars, while toy business receivables and inventories typically increase after peak sales seasons Key Liquidity and Financial Resources Indicators | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Gearing Ratio | 2.4% | 2.9% | -0.5 percentage points | | Current Ratio | 3.4 | 3.4 | 0.0 | | Cash and Bank Balances (HK$ thousand) | 1,081,282 | 1,102,889 | -2.0% | | Toy Business Trade Receivables (HK$ thousand) | 44,435 | 136,670 | -67.5% | | Toy Business Inventories (HK$ thousand) | 34,608 | 27,654 | +25.1% | - The Group maintains **ample cash levels**, with **HK$1.012 billion denominated in US dollars**[73](index=73&type=chunk) [Pledge of Group Assets](index=35&type=section&id=Pledge%20of%20Group%20Assets) Details of the pledge of Group assets are disclosed in Financial Note 12, primarily involving bank credit facilities of certain subsidiaries secured by investment properties and land and buildings - Details of the pledge of Group assets are disclosed in **Financial Note 12**, primarily involving investment properties and land and buildings[74](index=74&type=chunk) [Employees](index=35&type=section&id=Employees) As of June 30, 2025, the Group had 86 employees in Hong Kong, the United States, and the United Kingdom, with the remuneration policy remaining largely unchanged - The Group has a total of **86 employees globally**, with a stable remuneration policy[75](index=75&type=chunk)[76](index=76&type=chunk) [Company Share Award Scheme](index=36&type=section&id=Company%20Share%20Award%20Scheme) The Company did not adopt any share award scheme during the reporting period - The Company did not adopt any share award scheme during the reporting period[77](index=77&type=chunk) [Playmates Toys Limited ("Playmates Toys") Share Award Scheme](index=36&type=section&id=Playmates%20Toys%20Limited%20%28%22Playmates%20Toys%22%29%20Share%20Award%20Scheme) Playmates Toys adopted a share award scheme on May 19, 2023, to reward, retain, and attract eligible participants, with 6 million unvested share awards and 3 million shares purchased by the trustee to satisfy future awards - The Playmates Toys Share Award Scheme aims to **reward, retain, and attract talent**, with a **ten-year validity period**[78](index=78&type=chunk)[79](index=79&type=chunk) - The scheme's authorized limit is **10% of Playmates Toys' total issued shares**, with a **5% sub-limit for service providers**[79](index=79&type=chunk) Playmates Toys Share Award Scheme Overview | Indicator | June 30, 2025 | | :--- | :--- | | Number of Unvested Share Awards | 6,000,000 awards | | Number of Shares Purchased by Trustee | 3,000,000 shares | | Scheme Authorized Limit (Number of Shares) | 118,000,000 shares | - Share awards granted to selected eligible participants will **vest on December 6, 2025**, with no purchase price payable and no performance targets attached[84](index=84&type=chunk) [Share Option Schemes](index=38&type=section&id=Share%20Option%20Schemes) The Company did not adopt any share option scheme during the reporting period, while Playmates Toys' 2018 scheme ceased granting new options on May 19, 2023, but previously granted unexercised options remain valid, totaling 19.444 million as of June 30, 2025 - The Company did not adopt any share option scheme during the reporting period[82](index=82&type=chunk) - Playmates Toys' 2018 share option scheme ceased granting new options on **May 19, 2023**, but previously granted unexercised options remain valid[86](index=86&type=chunk) [Company Share Options](index=38&type=section&id=Company%20Share%20Options) The Company did not adopt any share option scheme during the reporting period - The Company did not adopt any share option scheme during the reporting period[82](index=82&type=chunk) [Playmates Toys Share Options](index=38&type=section&id=Playmates%20Toys%20Share%20Options) Playmates Toys' 2018 share option scheme ceased granting new options on May 19, 2023, but previously granted unexercised options remain valid, totaling 19.444 million with an exercise price of HK$0.826 as of June 30, 2025 Playmates Toys Share Options Overview | Indicator | June 30, 2025 | January 1, 2025 | | :--- | :--- | :--- | | Number of Unexercised Share Options | 19,444,000 options | 19,696,000 options | | Exercise Price | HK$0.826 | HK$0.826 | - The 2018 Playmates Toys scheme terminated on **May 19, 2023**, ceasing new option grants, but existing options remain exercisable under their terms[86](index=86&type=chunk) [Directors' Interests in Shares and Underlying Shares of the Company or Any Associated Corporation](index=40&type=section&id=Directors%27%20Interests%20in%20Shares%20and%20Underlying%20Shares%20of%20the%20Company%20or%20Any%20Associated%20Corporation) As of June 30, 2025, Chairman Chan Kwong Fai held 5.03% of the Company's shares and interests in Playmates Toys' shares and underlying shares, with other directors also holding interests, and no directors holding short positions - Chairman Chan Kwong Fai holds **5.03% of the Company's shares** and shares and share options in Playmates Toys[87](index=87&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk) - As of period-end, no directors held or were deemed to hold **short positions** in the shares or underlying shares of the Company or any associated corporation[90](index=90&type=chunk) [Long Positions in Shares of the Company](index=40&type=section&id=Long%20Positions%20in%20Shares%20of%20the%20Company) As of June 30, 2025, Chan Kwong Fai held 104 million ordinary shares (5.03%) of the Company, with other directors also holding significant ordinary shares Directors' Long Positions in Shares of the Company | Director Name | Number of Shares Held (shares) | Percentage of Shareholding | | :--- | :--- | :--- | | Chan Kwong Fai | 104,000,000 | 5.03% | | Chan Hoi Lun | 28,000,000 | 1.35% | | Chan Kwong Keung | 2,600,000 | 0.13% | | Lo Kai Yiu | 250,000 | 0.01% | [Long Positions in Shares of Playmates Toys](index=41&type=section&id=Long%20Positions%20in%20Shares%20of%20Playmates%20Toys) As of June 30, 2025, Chan Kwong Fai held 3.274 million ordinary shares (0.28%) of Playmates Toys, and Lo Kai Yiu held 0.376 million ordinary shares (0.03%) Directors' Long Positions in Shares of Playmates Toys | Director Name | Number of Shares Held (shares) | Percentage of Shareholding | | :--- | :--- | :--- | | Chan Kwong Fai | 3,274,000 | 0.28% | | Lo Kai Yiu | 376,000 | 0.03% | [Long Positions in Underlying Shares of Playmates Toys](index=41&type=section&id=Long%20Positions%20in%20Underlying%20Shares%20of%20Playmates%20Toys) As of June 30, 2025, Chan Kwong Fai held 2 million share options, corresponding to 2 million underlying shares (0.17%), with Chan Hoi Lun and Chan Kwong Keung each holding 1 million share options Directors' Long Positions in Underlying Shares of Playmates Toys (Share Options) | Director Name | Number of Equity Derivatives Held (options) | Corresponding Underlying Shares (shares) | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Chan Kwong Fai | 2,000,000 | 2,000,000 | 0.17% | | Chan Hoi Lun | 1,000,000 | 1,000,000 | 0.08% | | Chan Kwong Keung | 1,000,000 | 1,000,000 | 0.08% | [Shareholders' Interests and Short Positions in Shares and Underlying Shares of the Company as Recorded Under Section 336 of the Securities and Futures Ordinance](index=42&type=section&id=Shareholders%27%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares%20of%20the%20Company%20as%20Recorded%20Under%20Section%20336%20of%20the%20Securities%20and%20Futures%20Ordinance) As of June 30, 2025, Mr. Chan Chun Hung and his associates and companies held a long position of 1.374 billion shares (66.42%) in the Company, with TGC Assets Limited beneficially owning 1.102 billion shares (53.27%), and no other disclosable interests or short positions Major Shareholders' Long Positions in Shares of the Company | Name | Nature of Interest | Number of Shares Held (shares) | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Chan Chun Hung | Personal, Associates and Companies | 1,373,602,000 | 66.42% | | TGC Assets Limited | Beneficial Owner | 1,101,602,000 | 53.27% | - Mr. Chan Chun Hung is the **beneficial owner of the entire issued share capital of TGC Assets Limited**[93](index=93&type=chunk) [Repurchase, Sale or Redemption of Shares](index=42&type=section&id=Repurchase%2C%20Sale%20or%20Redemption%20of%20Shares) During the reporting period, neither the Company nor its subsidiaries redeemed, repurchased, or sold any shares of the Company, and the Company did not hold any treasury shares - Neither the Company nor its subsidiaries engaged in any **share redemption, repurchase, or sale activities** during the reporting period[92](index=92&type=chunk) [Corporate Governance Code](index=43&type=section&id=Corporate%20Governance%20Code) For the six months ended June 30, 2025, the Company complied with the Corporate Governance Code, except for the separation of Chairman and Chief Executive roles, which the Board deems appropriate for effective management - The Company adopted and complied with the Corporate Governance Code, but the roles of Chairman and Chief Executive are not separated, with executive directors jointly handling daily business[94](index=94&type=chunk) - The Board believes the existing management structure is appropriate to ensure effective management and oversight of the Group's business and operations[94](index=94&type=chunk) [Compliance with Model Code](index=43&type=section&id=Compliance%20with%20Model%20Code) The Company adopted the Model Code for Securities Transactions by Directors, and all Board members confirmed compliance throughout the reporting period - All Board members confirmed compliance with the **Model Code** set out in Appendix C3 of the Listing Rules throughout the reporting period[95](index=95&type=chunk) [Update on Directors' Information Pursuant to Rule 13.51B(1) of the Listing Rules](index=43&type=section&id=Update%20on%20Directors%27%20Information%20Pursuant%20to%20Rule%2013.51B%281%29%20of%20the%20Listing%20Rules) During the reporting period, no information was required to be disclosed pursuant to Rule 13.51B(1) of the Listing Rules - No updates to directors' information requiring disclosure under **Rule 13.51B(1) of the Listing Rules** during the reporting period[96](index=96&type=chunk) [Company Information](index=44&type=section&id=Company%20Information) This section provides Playmates Group's basic company information, including Board members, company secretary, registered and principal offices, auditors, legal advisors, principal bankers, share registrars, stock code, and company website, along with dates for suspension of share registration [Suspension of Register of Members](index=44&type=section&id=Suspension%20of%20Register%20of%20Members) The Company's register of members will be suspended from September 1 to September 2, 2025, to determine eligibility for the interim dividend, payable on September 19, 2025 - Share registration will be suspended from **September 1 to September 2, 2025**, to determine eligibility for the interim dividend[97](index=97&type=chunk) - The interim dividend will be paid on **September 19, 2025**, to shareholders on the Company's register of members as of September 2, 2025[97](index=97&type=chunk) [Shareholder Information](index=44&type=section&id=Shareholder%20Information) This interim report is available on the Company's website and The Stock Exchange of Hong Kong Limited website, with printed copies available free of charge at the share registrar - The interim report is available on the **Company's website and HKEX website**, with printed copies available free of charge at the share registrar[98](index=98&type=chunk) [Directors](index=45&type=section&id=Directors) The Board of Directors comprises a Chairman and Executive Director, two Executive Directors, one Non-executive Director, and three Independent Non-executive Directors - The Board of Directors comprises a Chairman and Executive Director, two Executive Directors, one Non-executive Director, and three Independent Non-executive Directors[99](index=99&type=chunk) [Company Secretary](index=45&type=section&id=Company%20Secretary) The Company Secretary is Ng Ka Yan - The Company Secretary is **Ng Ka Yan**[99](index=99&type=chunk) [Registered Office](index=45&type=section&id=Registered%20Office) The registered office is located in Bermuda - The registered office is located in **Bermuda**[99](index=99&type=chunk) [Principal Place of Business](index=45&type=section&id=Principal%20Place%20of%20Business) The principal place of business is located at 23rd Floor, Playmates Group Building, 100 Canton Road, Tsimshatsui, Kowloon, Hong Kong - The principal place of business is located at **23rd Floor, Playmates Group Building, 100 Canton Road, Tsimshatsui, Kowloon, Hong Kong**[99](index=99&type=chunk) [Auditors](index=45&type=section&id=Auditors) The auditors are Grant Thornton Hong Kong Limited, Certified Public Accountants and Registered Public Interest Entity Auditors - The auditors are **Grant Thornton Hong Kong Limited**[99](index=99&type=chunk) [Legal Advisers](index=45&type=section&id=Legal%20Advisers) The legal advisers are Conyers Dill & Pearman and Deacons - The legal advisers are **Conyers Dill & Pearman and Deacons**[99](index=99&type=chunk) [Principal Bankers](index=45&type=section&id=Principal%20Bankers) The principal bankers include The Bank of East Asia, Limited, Hang Seng Bank Limited, UBS AG, and Merrill Lynch, Pierce, Fenner & Smith Inc - Principal bankers include **The Bank of East Asia, Limited, Hang Seng Bank Limited, UBS AG, and Merrill Lynch**[99](index=99&type=chunk) [Principal Share Registrar](index=45&type=section&id=Principal%20Share%20Registrar) The principal share registrar is Codan Services Limited, located in Bermuda - The principal share registrar is located in **Bermuda**[100](index=100&type=chunk) [Hong Kong Branch Share Registrar](index=45&type=section&id=Hong%20Kong%20Branch%20Share%20Registrar) The Hong Kong branch share registrar is Tricor Secretaries Limited, located at 17th Floor, Far East Finance Centre, 16 Harcourt Road, Hong Kong - The Hong Kong branch share registrar is **Tricor Secretaries Limited**[100](index=100&type=chunk) [Stock Code](index=45&type=section&id=Stock%20Code) Playmates Group Limited's shares are listed on The Stock Exchange of Hong Kong Limited, with stock code 635 - The Company's shares are listed on the **HKEX**, with stock code **635**[100](index=100&type=chunk) [Website](index=45&type=section&id=Website) The Company's website is www.playmates.net - The Company's website is **www.playmates.net**[100](index=100&type=chunk)