RESULTS This section presents the company's financial performance through key statements, highlighting profitability, financial health, equity movements, and cash flow dynamics [CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS](index=3&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20PROFIT%20OR%20LOSS) Revenue from continuing operations slightly decreased, impacting gross profit and leading to a decline in profit for the period despite lower finance costs, with discontinued operations ceasing Key Financial Indicators from Continuing Operations (For the Six Months Ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) (Restated) | Y-o-Y Change (%) | | :--- | :------------- | :----------------------- | :----------- | | Revenue | 28,092 | 28,783 | -2.4% | | Cost of Sales and Services | (10,651) | (10,066) | 5.8% | | Gross Profit | 17,441 | 18,717 | -6.8% | | Other Income | 1,458 | 1 | 145700.0% | | Administrative Expenses | (7,898) | (5,762) | 37.1% | | Research and Development Expenses | (5,893) | (5,954) | -1.0% | | Selling and Distribution Expenses | (2,984) | (4,468) | -33.2% | | Operating Profit | 2,124 | 2,534 | -16.3% | | Finance Costs | (32) | (119) | -73.1% | | Profit Before Taxation from Continuing Operations | 2,092 | 2,415 | -13.3% | | Income Tax Expense | (259) | (81) | 219.8% | | Profit for the Period from Continuing Operations | 1,833 | 2,334 | -21.5% | | Loss for the Period from Discontinued Operations | – | (7) | -100.0% | | Profit for the Period | 1,833 | 2,327 | -21.2% | Earnings Per Share (HK cents) | Indicator | 2025 (HK cents) | 2024 (HK cents) (Restated) | | :--- | :---------- | :----------------------- | | From Continuing Operations | 0.60 | 0.61 | | From Discontinued Operations | – | – * | | **Total** | **0.60** | **0.61** | * Amount less than HKD 0.01 cents [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) The company recorded a profit of HKD 1,833 thousand for the period, with total comprehensive income reaching HKD 1,906 thousand due to exchange differences from foreign operations translation Total Comprehensive Income for the Period (For the Six Months Ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) (Restated) | | :--- | :------------- | :----------------------- | | Profit for the Period | 1,833 | 2,327 | | Exchange Differences on Translation of Financial Statements of Foreign Operations | 73 | – | | **Total Comprehensive Income for the Period** | **1,906** | **2,327** | - Total comprehensive income attributable to owners of the Company was **HKD 2,377 thousand** (2024: HKD 2,330 thousand), while that attributable to non-controlling interests was **HKD (471) thousand** (2024: HKD (3) thousand)[17](index=17&type=chunk) [CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20FINANCIAL%20POSITION) As of June 30, 2025, total assets and liabilities increased, driven by significant growth in inventories, trade and other receivables, and current liabilities, yet net assets continued to grow Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :------------- | :------------- | | **Non-current Assets** | | | | Property, Plant and Equipment | 324 | 295 | | Intangible Assets | 33 | 33 | | Goodwill | 9 | 9 | | Deferred Tax Assets | 4,019 | – | | **Total Non-current Assets** | **4,385** | **337** | | **Current Assets** | | | | Inventories | 16,834 | 10,034 | | Trade and Other Receivables | 27,233 | 18,477 | | Current Tax Recoverable | 1,371 | – | | Cash and Cash Equivalents | 24,033 | 32,897 | | **Total Current Assets** | **69,471** | **61,408** | | **Current Liabilities** | | | | Trade and Other Payables | 7,044 | 5,527 | | Contract Liabilities | 39,262 | 29,578 | | Interest-bearing Borrowings | – | 740 | | Amount Due to a Director | – | 2 | | Lease Liabilities | 133 | 526 | | Current Tax Payable | – | 29 | | **Total Current Liabilities** | **46,439** | **36,402** | | **Net Assets** | **26,599** | **24,416** | | **Total Equity** | **26,599** | **24,416** | - Non-current assets significantly increased from **HKD 337 thousand** in 2024 to **HKD 4,385 thousand** in 2025, primarily due to the recognition of deferred tax assets[19](index=19&type=chunk) - Net current assets decreased from **HKD 25,006 thousand** in 2024 to **HKD 23,032 thousand** in 2025[19](index=19&type=chunk) [CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CHANGES%20IN%20EQUITY) As of June 30, 2025, the company's total equity increased to HKD 26,599 thousand, driven by profit for the period, exchange differences from foreign operations, and capital contributions from non-controlling interests in subsidiaries Summary of Changes in Equity (For the Six Months Ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) (Restated) | | :--- | :------------- | :----------------------- | | Total Equity at Beginning of Period | 24,416 | (4,561) | | Profit/(Loss) for the Period | 1,833 | 2,327 | | Exchange Differences on Translation of Financial Statements of Foreign Operations | 73 | – | | Contribution from Non-controlling Shareholders of a Subsidiary | 277 | – | | **Total Equity at End of Period** | **26,599** | **(2,234)** | - Accumulated losses attributable to owners of the Company decreased from **HKD (450,617) thousand** as of January 1, 2024, to **HKD (404,195) thousand** as of June 30, 2025[23](index=23&type=chunk) [CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS](index=9&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CASH%20FLOWS) During the reporting period, the company's operating cash flow shifted from net inflow to net outflow, investing cash outflow decreased, and financing cash outflow increased, resulting in a net decrease in cash and cash equivalents Condensed Consolidated Cash Flows (For the Six Months Ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) (Restated) | | :--- | :------------- | :----------------------- | | Net Cash (Used in)/Generated from Operating Activities | (7,840) | 6,791 | | Net Cash Used in Investing Activities | (74) | (453) | | Net Cash (Used in)/Generated from Financing Activities | (890) | 674 | | Net (Decrease)/Increase in Cash and Cash Equivalents | (8,804) | 7,012 | | Cash and Cash Equivalents at Beginning of Period | 32,897 | 3,198 | | Effect of Exchange Rate Changes | (60) | – | | **Cash and Cash Equivalents at End of Period** | **24,033** | **10,210** | - Operating cash flow shifted from a net inflow of **HKD 6,791 thousand** in the same period of 2024 to a net outflow of **HKD 7,840 thousand** in the same period of 2025[25](index=25&type=chunk) - Financing cash flow shifted from a net inflow of **HKD 674 thousand** in the same period of 2024 to a net outflow of **HKD 890 thousand** in the same period of 2025, primarily due to repayment of interest-bearing borrowings and amounts due to a director[25](index=25&type=chunk) NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS This section details the basis of preparation, significant accounting policies, and specific notes to the condensed consolidated financial statements [BASIS OF PREPARATION AND ACCOUNTING POLICIES](index=10&type=section&id=BASIS%20OF%20PREPARATION%20AND%20ACCOUNTING%20POLICIES) The condensed consolidated financial statements are prepared in accordance with HKAS 34 and GEM Listing Rules, with 2024 interim results restated due to revised revenue calculation for e-commerce and product sales businesses, and new HKFRS amendments having no material impact - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of the GEM Listing Rules of The Stock Exchange of Hong Kong Limited[27](index=27&type=chunk)[29](index=29&type=chunk) - The Group's condensed consolidated interim results for the six months ended June 30, 2024, were adjusted due to the adoption of revised revenue calculation for advertising e-commerce and supply chain management services and product sales businesses[28](index=28&type=chunk)[30](index=30&type=chunk) Impact of 2024 Interim Results Restatement | Affected Item | Previously Reported (HKD thousands) | Restated Amount (HKD thousands) | Impact of Restatement (HKD thousands) | | :---------- | :----------------- | :----------------- | :----------------- | | Revenue | 36,749 | 28,783 | (7,966) | | Cost of Sales | (20,471) | (10,066) | 10,405 | | Selling and Distribution Expenses | (1,402) | (4,468) | (3,066) | | Earnings Per Share (HK cents) | 0.23 | 0.18 | (0.05) | [REVENUE AND SEGMENT REPORTING](index=12&type=section&id=REVENUE%20AND%20SEGMENT%20REPORTING) The company's revenue primarily stems from three continuing operations: software platform services, product sales, and advertising e-commerce and supply chain management services, with software platform services revenue declining and advertising e-commerce and supply chain management services revenue significantly increasing in H1 2025 - The Group's continuing operations comprise three reportable and operating segments: software platform business, product sales business, and advertising e-commerce and supply chain management services business[47](index=47&type=chunk)[48](index=48&type=chunk)[57](index=57&type=chunk)[69](index=69&type=chunk) Segment Revenue (For the Six Months Ended June 30) | Segment | 2025 (HKD thousands) | 2024 (HKD thousands) (Restated) | Y-o-Y Change (%) | | :--------------------------------- | :------------- | :----------------------- | :----------- | | Software Platform Services | 14,750 | 17,925 | -17.7% | | Product Sales | 5,032 | 4,385 | 14.8% | | Commission Income from Product Sales Agency | 2,081 | 2,911 | -28.5% | | Advertising E-commerce and Supply Chain Management Services | 6,229 | 3,562 | 74.9% | | **Total** | **28,092** | **28,783** | **-2.4%** | Revenue by Timing of Recognition (For the Six Months Ended June 30) | Timing of Revenue Recognition | 2025 (HKD thousands) | 2024 (HKD thousands) (Restated) | | :------------- | :------------- | :----------------------- | | At a point in time | 17,673 | 16,945 | | Over time | 10,419 | 11,838 | | **Total** | **28,092** | **28,783** | Revenue by Geographical Region (For the Six Months Ended June 30) | Region | 2025 (HKD thousands) | 2024 (HKD thousands) (Restated) | | :--- | :------------- | :----------------------- | | Hong Kong | 14,742 | 17,898 | | China | 13,342 | 10,858 | | Other | 8 | 27 | | **Total** | **28,092** | **28,783** | Revenue from Major Customers (For the Six Months Ended June 30) | Customer | 2025 (HKD thousands) | 2024 (HKD thousands) (Restated) | | :--- | :------------- | :----------------------- | | Customer B2 | 10,016 | 7,243 | | Customer A1 | Not Applicable | 2,897 | | Customer C3 | Not Applicable | 3,562 | * Customers A1 and C3 did not contribute more than 10% of total revenue in 2025 [OTHER INCOME](index=29&type=section&id=OTHER%20INCOME) Other income significantly increased in the first half of 2025, primarily due to government grants provided by the Chinese government to key supported enterprises under the product sales segment Other Income (For the Six Months Ended June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :------------- | :------------- | | Bank Interest Income | 1 | – | | Government Grants | 1,443 | – | | Miscellaneous Income | 14 | 1 | | **Total** | **1,458** | **1** | - Government grants primarily refer to subsidies provided by the Chinese government to key supported enterprises under the product sales segment, with one of the Group's subsidiaries listed as a key supported enterprise by the Chinese government[103](index=103&type=chunk)[104](index=104&type=chunk) [PROFIT BEFORE TAXATION](index=30&type=section&id=PROFIT%20BEFORE%20TAXATION) In the first half of 2025, the company's profit before taxation from continuing operations was impacted by increased staff costs and depreciation expenses, although finance costs decreased Profit Before Taxation Components (For the Six Months Ended June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) (Restated) | | :--- | :------------- | :----------------------- | | **Finance Costs** | | | | Interest on Lease Liabilities | 9 | 29 | | Interest on Other Borrowings | 23 | 90 | | **Subtotal** | **32** | **119** | | **Staff Costs** | | | | Salaries, Wages and Other Benefits | 11,278 | 9,720 | | Contributions to Defined Contribution Retirement Plans | 577 | 451 | | Provision for Long Service Payments | 151 | – | | Reversal of Provision for Long Service Payments | (260) | – | | **Subtotal** | **11,746** | **10,171** | | **Other Items** | | | | Cost of Inventories Sold | 1,960 | 2,320 | | Cost of Services | 8,691 | 7,746 | | Depreciation of Property, Plant and Equipment | 57 | 18 | - Staff costs (including directors' emoluments) increased by **15.5%** from HKD 10,171 thousand in 2024 to **HKD 11,746 thousand** in 2025[106](index=106&type=chunk) - Depreciation of property, plant and equipment significantly increased by **216.7%** from HKD 18 thousand in 2024 to **HKD 57 thousand** in 2025[106](index=106&type=chunk) [INCOME TAX](index=31&type=section&id=INCOME%20TAX) Hong Kong subsidiaries had no assessable profits and thus no Hong Kong profits tax, while Chinese subsidiaries are subject to a 25% corporate income tax rate, with some qualifying for a preferential 5% rate as small low-profit enterprises, and no income tax in Cayman Islands and BVI - Hong Kong subsidiaries had no assessable profits for the six months ended June 30, 2025, and therefore no provision for Hong Kong profits tax was made (2024: HKD nil)[107](index=107&type=chunk)[110](index=110&type=chunk) - Subsidiaries incorporated in China are subject to China corporate income tax at a rate of **25%** (2024: 25%), with certain Chinese subsidiaries qualifying as small low-profit enterprises enjoying a preferential income tax rate of **5%**[108](index=108&type=chunk)[111](index=111&type=chunk) - The Group is not subject to income tax in the Cayman Islands and British Virgin Islands according to income tax rules and regulations[109](index=109&type=chunk)[112](index=112&type=chunk) [DISCONTINUED OPERATION](index=32&type=section&id=DISCONTINUED%20OPERATION) The company's mobile game and application business, operated by First Surplus, was deregistered and ceased operations on December 31, 2024, resulting in no related losses for the first half of 2025 - The Group's mobile game and application business was related to game publishing services, development of mobile games and related intellectual property and platforms, and mobile applications provided by First Surplus, a non-wholly owned subsidiary of the Company[114](index=114&type=chunk)[116](index=116&type=chunk) - On December 31, 2024, the Company deregistered First Surplus and ceased the operation of its mobile game and application business from December 31, 2024[115](index=115&type=chunk)[116](index=116&type=chunk) Results of Discontinued Operation (For the Six Months Ended June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) (Restated) | | :--- | :------------- | :----------------------- | | Other Administrative Expenses | – | (7) | | Operating Loss | – | (7) | | Finance Costs | – | – | | **Loss for the Period from Discontinued Operation** | **–** | **(7)** | [INTERIM DIVIDEND](index=33&type=section&id=INTERIM%20DIVIDEND) The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2025 (2024: nil)[118](index=118&type=chunk)[119](index=119&type=chunk) [EARNINGS PER SHARE](index=33&type=section&id=EARNINGS%20PER%20SHARE) Basic and diluted earnings per share for the first half of 2025 were HKD 0.60 cents, a slight decrease from HKD 0.61 cents in the same period of 2024, with basic and diluted EPS being identical due to no potential dilutive ordinary shares Earnings Per Share (For the Six Months Ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) (Restated) | | :--- | :------------- | :----------------------- | | Profit/(Loss) for the Period Attributable to Owners of the Company | | | | – From Continuing Operations | 2,299 | 2,334 | | – From Discontinued Operations | – | (4) | | **Total** | **2,299** | **2,330** | | Weighted Average Number of Ordinary Shares in Issue (thousands) | 381,792 | 381,792 | - As there were no potential dilutive ordinary shares, the diluted earnings per share for the six months ended June 30, 2025 and 2024, were the same as the basic earnings per share[125](index=125&type=chunk)[127](index=127&type=chunk) [PROPERTY, PLANT AND EQUIPMENT](index=34&type=section&id=PROPERTY%2C%20PLANT%20AND%20EQUIPMENT) In the first half of 2025, the company's cost of purchasing property, plant and equipment was HKD 75,000, a significant decrease compared to the same period last year - For the six months ended June 30, 2025, the Group purchased items of property, plant and equipment with a total cost of **HKD 75,000** (for the six months ended June 30, 2024: HKD 453,000)[126](index=126&type=chunk)[128](index=128&type=chunk) [TRADE AND OTHER RECEIVABLES](index=35&type=section&id=TRADE%20AND%20OTHER%20RECEIVABLES) As of June 30, 2025, total trade and other receivables significantly increased, primarily driven by growth in prepayments and net recoverable VAT, with a notable rise in amounts due within one month in the trade receivables aging structure Trade and Other Receivables (As of June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :------------- | :------------- | | Gross Trade Receivables | 3,108 | 2,313 | | Less: Impairment Losses | (246) | (245) | | **Net Trade Receivables** | **2,862** | **2,068** | | Gross Other Receivables | 5,894 | 4,082 | | Less: Impairment Losses | (38) | (37) | | **Net Other Receivables** | **5,856** | **4,045** | | Deposits | 547 | 566 | | Net Recoverable VAT | 1,627 | 562 | | Prepayments | 16,341 | 11,236 | | **Total** | **27,233** | **18,477** | Aging Analysis of Trade Receivables (As of June 30) | Aging | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :------------- | :------------- | | Less than one month | 1,412 | 443 | | Over one month but less than three months | 858 | 522 | | Over three months but less than six months | 112 | 365 | | Over six months but less than twelve months | 480 | 738 | | **Total** | **2,862** | **2,068** | - Prepayments increased by **45.4%** from HKD 11,236 thousand in 2024 to **HKD 16,341 thousand** in 2025[131](index=131&type=chunk) [TRADE AND OTHER PAYABLES](index=37&type=section&id=TRADE%20AND%20OTHER%20PAYABLES) As of June 30, 2025, total trade and other payables increased, with a significant rise in trade payables, and the aging analysis indicates that most trade payables are due within three months Trade and Other Payables (As of June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :------------- | :------------- | | Trade Payables | 3,819 | 1,806 | | Other Payables | 3,225 | 3,721 | | **Total** | **7,044** | **5,527** | Aging Analysis of Trade Payables (As of June 30) | Aging | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :------------- | :------------- | | Less than one month | 40 | – | | Over one month but less than three months | 2,952 | 1,806 | | Over three months but less than six months | 267 | – | | Over six months but less than twelve months | 560 | – | | **Total** | **3,819** | **1,806** | - Trade payables increased by **111.5%** from HKD 1,806 thousand in 2024 to **HKD 3,819 thousand** in 2025[136](index=136&type=chunk) [AMOUNT DUE TO A DIRECTOR](index=38&type=section&id=AMOUNT%20DUE%20TO%20A%20DIRECTOR) As of June 30, 2025, the amount due to Mr. Liu Guanzhou, a director, is interest-free, unsecured, and repayable on demand - The amount due to a director, Mr. Liu Guanzhou, is interest-free, unsecured, and repayable on demand[140](index=140&type=chunk)[141](index=141&type=chunk) [SHARE CAPITAL](index=38&type=section&id=SHARE%20CAPITAL) As of June 30, 2025, the company's authorized share capital was HKD 120,000,000, divided into 12,000,000,000 shares of HKD 0.01 each, with 381,792,000 ordinary shares issued and fully paid, following a capital reorganization and rights issue in 2024 - As of June 30, 2025, the Company's authorized share capital was **HKD 120,000,000**, divided into **12,000,000,000 shares** of HKD 0.01 each[143](index=143&type=chunk)[178](index=178&type=chunk) - As of June 30, 2025, **381,792,000 ordinary shares** of HKD 0.01 each were issued and fully paid, totaling **HKD 3,818 thousand**[143](index=143&type=chunk)[178](index=178&type=chunk) - On July 8, 2024, the Company completed a capital reorganization involving share consolidation, capital reduction, and share subdivision, and on August 15, 2024, the Company raised net proceeds of approximately **HKD 28.9 million** through a rights issue[145](index=145&type=chunk)[148](index=148&type=chunk)[150](index=150&type=chunk) [FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS](index=39&type=section&id=FAIR%20VALUE%20MEASUREMENT%20OF%20FINANCIAL%20INSTRUMENTS) As of June 30, 2025, the carrying amounts of the company's financial instruments measured at cost or amortized cost did not significantly differ from their fair values - The carrying amounts of the Group's financial instruments measured at cost or amortized cost did not significantly differ from their fair values as of June 30, 2025, and December 31, 2024[146](index=146&type=chunk)[149](index=149&type=chunk) [RELATED PARTY TRANSACTIONS](index=40&type=section&id=RELATED%20PARTY%20TRANSACTIONS) In the first half of 2025, key management personnel compensation significantly increased Key Management Personnel Compensation (For the Six Months Ended June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :------------- | :------------- | | Short-term Employee Benefits | 2,275 | 1,003 | - Key management personnel compensation (short-term employee benefits) increased by **126.8%** from HKD 1,003 thousand in 2024 to **HKD 2,275 thousand** in 2025[153](index=153&type=chunk) [EVENTS AFTER THE REPORTING PERIOD](index=40&type=section&id=EVENTS%20AFTER%20THE%20REPORTING%20PERIOD) Subsequent to the reporting period, the company entered into a placing agreement with Emperor Securities Limited on August 21, 2025, to place up to 25,452,800 new shares, but this agreement was terminated the following day, August 22 - On August 21, 2025, the Company entered into a placing agreement with Emperor Securities Limited to place up to **25,452,800 new shares** at a placing price of **HKD 0.55 per share**[154](index=154&type=chunk)[156](index=156&type=chunk) - On August 22, 2025, the Company and the placing agent entered into a termination agreement, mutually agreeing to immediately terminate the placing agreement[155](index=155&type=chunk)[156](index=156&type=chunk) MANAGEMENT DISCUSSION AND ANALYSIS This section provides an in-depth review of the company's financial performance and strategic outlook, covering key financial metrics, business segment performance, and future growth initiatives [FINANCIAL REVIEW](index=41&type=section&id=FINANCIAL%20REVIEW) In the first half of 2025, the company's total revenue slightly decreased due to lower software platform business sales, while advertising e-commerce and supply chain management services revenue significantly grew, leading to reduced gross profit and increased administrative and other operating expenses, ultimately resulting in a decline in profit for the period and a deterioration in both gearing and current ratios - For the six months ended June 30, 2025, the Group recorded total revenue of approximately **HKD 28,092,000**, a decrease of approximately **HKD 691,000** or **2.4%** compared to approximately HKD 28,783,000 in the same period of 2024[158](index=158&type=chunk)[159](index=159&type=chunk) - Revenue from the software platform business segment decreased by approximately **HKD 3,175,000**, while revenue from advertising e-commerce and supply chain management services business increased to approximately **HKD 6,229,000**[158](index=158&type=chunk)[159](index=159&type=chunk) - Gross profit decreased by approximately **HKD 1,276,000** or **6.8%** to approximately **HKD 17,441,000**, while administrative and other operating expenses increased by approximately **HKD 591,000** or **3.7%** to approximately **HKD 16,775,000**[162](index=162&type=chunk)[163](index=163&type=chunk)[166](index=166&type=chunk)[167](index=167&type=chunk) - The consolidated net profit attributable to owners of the Company was approximately **HKD 2,299,000**, a slight decrease from HKD 2,330,000 in the same period last year[170](index=170&type=chunk)[174](index=174&type=chunk) Financial Resources and Liquidity Indicators (As of June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :------------- | :------------- | | Cash and Cash Equivalents | 24,033 | 32,897 | | Total Assets | 73,856 | 61,745 | | Total Liabilities | 47,257 | 37,329 | | Gearing Ratio (Total Liabilities/Total Assets) | 64% | 60% | | Current Ratio (Current Assets/Current Liabilities) | 1.60 | 1.70 | | Number of Employees | 81 | 76 | | Staff Costs (including Directors' Emoluments) | 11,746 | 10,171 | [BUSINESS REVIEW AND PROSPECT](index=45&type=section&id=BUSINESS%20REVIEW%20AND%20PROSPECT) The company remains focused on its three core businesses: software platform, advertising e-commerce and supply chain management services, and product sales, with software platform revenue declining due to government spending cuts, while advertising e-commerce and supply chain management services performed satisfactorily with significant revenue growth, as the company commits to technological innovation, China market expansion, and leveraging big data trends - The Group continues to focus on three main business categories: software platform business, advertising e-commerce and supply chain management services business, and product sales business[192](index=192&type=chunk)[196](index=196&type=chunk) - Revenue from the software platform business segment decreased by approximately **17.7%**, primarily due to the government's annual **2% reduction** in recurrent expenditure starting from 2025, leading to a more conservative approach by government departments towards new IT projects[193](index=193&type=chunk)[194](index=194&type=chunk)[195](index=195&type=chunk)[197](index=197&type=chunk) - The advertising e-commerce and supply chain management services business performed satisfactorily, achieving segment revenue of approximately **HKD 6,229,000**, an increase of approximately **74.9%**, accounting for **22.2%** of the Group's total revenue[200](index=200&type=chunk)[202](index=202&type=chunk) - Looking ahead, the Group will continue to strengthen its competitiveness, develop software platforms, maintain long-term relationships with existing customers, and actively participate in tenders to expand its customer base[204](index=204&type=chunk)[208](index=208&type=chunk) - The company will leverage the rising trend of big data applications to refine production and sales strategies, facilitate entry into global markets, and optimize efficiency while enhancing consumer experience[205](index=205&type=chunk)[208](index=208&type=chunk) - The Group will continue to develop and expand its business in China with potential opportunities, including but not limited to allocating more resources to research and development of industrial software, seeking opportunities to develop or acquire intellectual property and brands aligned with its industrial software strategy, and building a consumer-scenario-driven ecosystem business[207](index=207&type=chunk)[209](index=209&type=chunk) OTHER INFORMATION This section provides additional disclosures regarding directors' and substantial shareholders' interests, share option schemes, related party transactions, corporate governance, and other compliance matters [DIRECTORS' INTERESTS AND SHORT POSITIONS IN SHARES, UNDERLYING SHARES AND DEBENTURES](index=48&type=section&id=DIRECTORS%27%20INTERESTS%20AND%20SHORT%20POSITIONS%20IN%20SHARES%2C%20UNDERLYING%20SHARES%20AND%20DEBENTURES) As of June 30, 2025, Mr. Liu Guanzhou held 57.55% of the company's shares, making him the largest beneficial owner Directors' Shareholdings (As of June 30) | Director Name | Capacity | Number of Shares (thousands) | Approximate Percentage of Shareholding | | :------- | :--- | :--------------- | :------------- | | Mr. Liu Guanzhou | Beneficial Owner | 219,729,750 (L) | 57.55% | - "L" denotes a long position in the Company's shares; the total number of issued shares of **381,792,000** as of June 30, 2025, was used to calculate the approximate percentage[212](index=212&type=chunk)[213](index=213&type=chunk) [DIRECTORS' AND CHIEF EXECUTIVES' RIGHTS TO ACQUIRE SHARES OR DEBT SECURITIES](index=49&type=section&id=DIRECTORS%27%20AND%20CHIEF%20EXECUTIVES%27%20RIGHTS%20TO%20ACQUIRE%20SHARES%20OR%20DEBT%20SECURITIES) During the reporting period, neither the company nor any of its subsidiaries entered into any arrangements enabling directors, chief executives, their spouses, or minor children to benefit from acquiring shares or debt securities of the company - Save as disclosed in this report, at no time during the period has the Company or any of its subsidiaries entered into any arrangements to enable any directors and chief executives, their respective spouses or children under 18 years of age to acquire benefits by means of the acquisition of shares or debt securities (including debentures) of the Company or any other body corporate[215](index=215&type=chunk)[216](index=216&type=chunk) [SUBSTANTIAL SHAREHOLDERS' INTERESTS IN SECURITIES OF THE COMPANY](index=49&type=section&id=SUBSTANTIAL%20SHAREHOLDERS%27%20INTERESTS%20IN%20SECURITIES%20OF%20THE%20COMPANY) As of June 30, 2025, apart from the directors, Ms. Zhang Jiahui was deemed to hold 57.55% of the company's shares due to spousal interest, making her a substantial shareholder Substantial Shareholders' Shareholdings (As of June 30) | Substantial Shareholder Name | Capacity | Number of Shares (thousands) | Approximate Percentage of Shareholding | | :----------- | :--- | :--------------- | :------------- | | Ms. Zhang Jiahui | Interest of Spouse | 219,729,750 (L) | 57.55% | - Ms. Zhang Jiahui is the spouse of Mr. Liu Guanzhou; under the Securities and Futures Ordinance, Ms. Zhang is deemed to be interested in all shares in which Mr. Liu has an interest[218](index=218&type=chunk)[219](index=219&type=chunk) [SHARE OPTION SCHEME](index=50&type=section&id=SHARE%20OPTION%20SCHEME) The company's share option scheme expired on May 8, 2023, and no share options were granted or outstanding during the reporting period - The share option scheme was valid for ten years from May 8, 2013, and expired on May 8, 2023, with no new share option scheme adopted since then[221](index=221&type=chunk)[226](index=226&type=chunk) - No share options were granted or outstanding for the six months ended June 30, 2025, or 2024[222](index=222&type=chunk)[226](index=226&type=chunk) [IMPORTANT EVENTS AFTER THE REPORTING PERIOD_2](index=50&type=section&id=IMPORTANT%20EVENTS%20AFTER%20THE%20REPORTING%20PERIOD_2) Subsequent to the reporting period, the company entered into a placing agreement with Emperor Securities Limited on August 21, 2025, to place up to 25,452,800 new shares, but this agreement was terminated the following day, August 22 - On August 21, 2025 (after trading hours), the Company entered into a placing agreement with Emperor Securities Limited, whereby the Company conditionally agreed to place up to **25,452,800 new shares** at a placing price of **HKD 0.55 per placing share** through the placing agent on a best-effort basis[223](index=223&type=chunk)[227](index=227&type=chunk) - On August 22, 2025 (after trading hours), the Company and the placing agent entered into a termination agreement, whereby the Company and the placing agent agreed to immediately terminate the placing agreement[224](index=224&type=chunk)[227](index=227&type=chunk) [DIRECTORS' INTERESTS IN COMPETING BUSINESS](index=51&type=section&id=DIRECTORS%27%20INTERESTS%20IN%20COMPETING%20BUSINESS) During the reporting period and up to the date of this report, no director, to the best of their knowledge, held any interest in any business that competes or may compete with the Group's business - During the period and up to the date of this report, to the best knowledge of the directors, no director had any interest in any business that competes or may compete with the business carried on by the Group[229](index=229&type=chunk)[234](index=234&type=chunk) [CORPORATE GOVERNANCE CODE](index=51&type=section&id=CORPORATE%20GOVERNANCE%20CODE) The company is committed to high standards of corporate governance, complying with the Corporate Governance Code in Appendix 15 of the GEM Listing Rules during the reporting period, except for code provision A.2.1 (separation of Chairman and Chief Executive roles), where the Chief Executive role is currently jointly held by executive directors - The Company has complied with the code provisions of the Corporate Governance Code set out in Appendix 15 to the GEM Listing Rules throughout the period, save for code provision A.2.1[231](index=231&type=chunk)[235](index=235&type=chunk) - According to code provision A.2.1 of the Corporate Governance Code, the roles of chairman and chief executive should be separate and not performed by the same individual; the Company does not have a chief executive, and this role is currently jointly held by the executive directors[232](index=232&type=chunk)[233](index=233&type=chunk)[236](index=236&type=chunk) - The Board believes that the balance of power and authority can be maintained through the operation of the Board, which is composed of experienced individuals capable of making and implementing decisions promptly[233](index=233&type=chunk)[236](index=236&type=chunk) [AUDIT COMMITTEE](index=52&type=section&id=AUDIT%20COMMITTEE) The Audit Committee, comprising three independent non-executive directors with Mr. Fu Enming as Chairman, has reviewed the company's accounting principles, internal controls, and financial reporting matters, including the unaudited interim report for the current period - The Audit Committee comprises three independent non-executive directors: Mr. Fu Enming, Ms. Lam Yuen Man, and Mr. Xia Qiankun, with Mr. Fu Enming serving as the Chairman of the Audit Committee[237](index=237&type=chunk)[240](index=240&type=chunk) - The primary duties of the Audit Committee are to review the draft annual report and accounts and half-year report of the Company and provide recommendations and advice to the Board, as well as to review and monitor the Group's financial reporting process, risk management, and internal controls[237](index=237&type=chunk)[240](index=240&type=chunk) - The Audit Committee has reviewed the accounting principles and practices adopted by the Company and discussed internal controls and financial reporting matters with the Board, including the review of the unaudited interim report for the period[238](index=238&type=chunk)[241](index=241&type=chunk) [CODE OF CONDUCT REGARDING SECURITIES TRANSACTIONS BY DIRECTORS](index=52&type=section&id=CODE%20OF%20CONDUCT%20REGARDING%20SECURITIES%20TRANSACTIONS%20BY%20DIRECTORS) The company has adopted a code of conduct for directors' securities transactions that is no less stringent than required by the GEM Listing Rules, and no non-compliance by directors was identified during the reporting period - The Company has adopted a code of conduct regarding securities transactions by directors, the terms of which are no less stringent than the required standard of dealings set out in Rules 5.48 to 5.67 of the GEM Listing Rules[239](index=239&type=chunk)[242](index=242&type=chunk) - Following specific enquiries made to all directors, the Company is not aware of any non-compliance with the required standard of dealings and its code of conduct regarding securities transactions by directors during the period[239](index=239&type=chunk)[242](index=242&type=chunk) [PURCHASE, SALE OR REDEMPTION OF THE COMPANY'S LISTED SECURITIES](index=53&type=section&id=PURCHASE%2C%20SALE%20OR%20REDEMPTION%20OF%20THE%20COMPANY%27S%20LISTED%20SECURITIES) During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[243](index=243&type=chunk)

中期報告 美高梅中國控股有限公司 MGM China Holdings Limited (Incorporated in the Cayman Islands with limited liability)(於開曼群島註冊成立之有限公司) Stock Code 股份代號：2282 C122893 中期報告 美高梅中國控股有限公司 目錄 | 2 | 公司資料 | | --- | --- | | 3 | 財務及營運摘要 | | 4 | 管理層討論及分析 | | 30 | 其他資料 | | | 簡明綜合財務報表 | | 49 | 簡明綜合財務報表審閱報告 | | 50 | 簡明綜合損益及其他全面收入表 | | 51 | 簡明綜合財務狀況表 | | 53 | 簡明綜合權益變動表 | | 54 | 簡明綜合現金流量表 | | 55 | 簡明綜合財務報表附註 | | 79 | 詞彙 | 美高梅中國控股有限公司 公司資料 董事會 執行董事 何超瓊 （董事長） William Joseph Hornbuckle （聯席董事長） John M. McManus 劉珍伲 馮小峰 非執行董事 Daniel J. Taylor Ay ...

[Chairman's Statement](index=3&type=section&id=%E4%B8%BB%E5%B8%AD%E5%A0%B1%E5%91%8A) [Operational Overview and Three-Year Plan Progress](index=3&type=section&id=2.1%20%E7%87%9F%E9%81%8B%E6%A6%82%E8%A6%BD%E8%88%87%E4%B8%89%E5%B9%B4%E8%A6%8F%E5%8A%83%E9%80%B2%E5%B1%95) The company maintains strong demand and near-full capacity utilization in H1 2025, with its three-year plan on track - Despite macroeconomic uncertainty, the company experienced strong demand for its diversified product and geographical capacity in H1 2025, with non-dedicated manufacturing facilities operating at near-full capacity[3](index=3&type=chunk) - The three-year plan (2023-2025) has **exceeded its profitability targets** for 2023 and 2024, which were a 10% operating profit margin and a low-teens percentage growth rate in profit after tax[3](index=3&type=chunk) [Short-term Profitability Challenges and Future Growth Strategies](index=3&type=section&id=2.2%20%E7%9F%AD%E6%9C%9F%E7%9B%88%E5%88%A9%E6%8C%91%E6%88%B0%E8%88%87%E6%9C%AA%E4%BE%86%E5%A2%9E%E9%95%B7%E7%AD%96%E7%95%A5) The company faces short-term profit pressure from a high base effect and capacity ramp-up issues but plans for significant expansion - Short-term profitability challenges in the first half were due to a high base effect from an **early shipment of approximately 1 million pairs** in H1 2024 and operational inefficiencies during capacity ramp-ups in Indonesia and the Philippines[3](index=3&type=chunk) - To meet demand, some production was shifted to Vietnam footwear factories, leading to increased costs, including overtime expenses[3](index=3&type=chunk) - The company plans to expand its total capacity by another **20 million pairs** starting this year by ramping up its new factory in Solo, Indonesia, commissioning a second factory in Bangladesh, and accelerating the construction of a dedicated factory in Indonesia for its largest sports client[4](index=4&type=chunk) - The next three-year plan (2026-2028) will focus on developing the handbags and accessories manufacturing business, supported by the acquisition of a small handbag factory in Vietnam[4](index=4&type=chunk) [Dividend Policy and ESG Performance](index=3&type=section&id=2.3%20%E8%82%A1%E6%81%AF%E6%94%BF%E7%AD%96%E8%88%87ESG%E8%A1%A8%E7%8F%BE) The company declared an interim dividend, continues its excess cash return program, and achieved a higher MSCI ESG rating - The Board of Directors has resolved to declare an interim dividend of **52 HK cents per ordinary share**, in line with its long-term 70% payout policy[5](index=5&type=chunk) - The excess cash return program will continue, distributing an additional **$60 million annually** in fiscal years 2025 and 2026 through share buybacks and special dividends[5](index=5&type=chunk) - In August 2025, the company's MSCI ESG rating was upgraded from 'A' to **'AA'**, marking the second consecutive year of improvement[5](index=5&type=chunk) [Management Discussion and Analysis](index=4&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) [Business Strategy and Three-Year Plan](index=4&type=section&id=3.1%20%E6%A5%AD%E5%8B%99%E7%AD%96%E7%95%A5%E8%88%87%E4%B8%89%E5%B9%B4%E8%A6%8F%E5%8A%83) The company leverages its manufacturing excellence and customer-centric model to drive growth under its 2023-2025 strategic plan - The company is renowned in the footwear industry for its superior product design, craftsmanship, quality commitment, and flexibility in rapid product launches and small-batch production[8](index=8&type=chunk) - The three-year plan (2023-2025) focuses on business growth and margin enhancement through strengthening the category mix, expanding production, optimizing efficiency, and improving cost-effectiveness[9](index=9&type=chunk)[10](index=10&type=chunk) Three-Year Plan (2023-2025) Targets | Metric | Target | | :--- | :--- | | Operating Profit Margin | 10% | | Profit After Tax CAGR | Low-teens percentage | [Business Review and Financial Performance](index=6&type=section&id=3.2%20%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7%E8%88%87%E8%B2%A1%E5%8B%99%E8%A1%A8%E7%8F%BE) Revenue grew slightly in H1 2025, but profitability declined due to a high base effect and operational inefficiencies Key Financial Indicators for H1 2025 | Indicator | H1 2025 (USD thousands) | H1 2024 (USD thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Consolidated Revenue | 775,100 | 770,000 | +0.7% | | Shipment Volume (million pairs) | 27.5 | 26.5 | +3.8% | | Average Selling Price (per pair) | 27.4 | 28.3 | -3.2% | | Gross Profit | 175,200 | 198,900 | -11.9% | | Gross Profit Margin | 22.6% | 25.8% | -3.2%pp | | Reported Operating Profit | 84,700 | 99,100 | -14.5% | | Operating Profit Margin (before fair value changes) | 10.9% | 12.9% | -2.0%pp | | Net Profit | 78,100 | 91,500 | -14.6% | | Adjusted Net Profit | 77,900 | 92,900 | -16.2% | | Adjusted Net Profit Margin | 10.1% | 12.1% | -2.0%pp | | Net Cash Position | 291,300 | 326,100 | -10.7% | | Net Gearing Ratio | -26.6% | -29.6% | +3.0%pp | - The decline in gross profit and gross profit margin was primarily due to the high base from early shipments last year, insufficient training efficiency for new workers in Indonesia and the Philippines, and increased costs from shifting some production to Vietnam[18](index=18&type=chunk) - North America and Europe are the Group's two largest markets, accounting for **48.7% and 23.4% of total revenue**, respectively[12](index=12&type=chunk) Product Category Sales Mix for H1 2025 | Product Category | Sales Change | % of Total Manufacturing Revenue (H1 2025) | % of Total Manufacturing Revenue (H1 2024) | | :--- | :--- | :--- | :--- | | Sports | +8.2% | 48.5% | 45.1% | | Fashion & Luxury | -3.5% | 25.4% (Fashion), 7.8% (Luxury) | 26.2% (Fashion), 8.4% (Luxury) | | Casual | -9.2% | 18.3% | 20.3% | [Industry Recognition and Future Outlook](index=8&type=section&id=3.3%20%E8%A1%8C%E4%B8%9A%E8%AE%A4%E5%8F%AF%E4%B8%8E%E6%9C%AA%E6%9D%A5%E5%B1%95%E6%9C%9B) The company's ESG rating was upgraded, and it anticipates modest shipment growth with plans for significant capacity expansion - MSCI ESG Research upgraded the company's MSCI ESG rating from 'A' to **'AA'**[19](index=19&type=chunk) - Full-year 2025 shipment volume is expected to see modest growth, but profitability will be constrained by the gradual efficiency improvements at its Indonesian and Philippine manufacturing facilities[20](index=20&type=chunk) - The company plans to increase total capacity by an additional **20 million pairs** starting in 2025 through ramping up its new factory in Solo, Indonesia, commissioning a second facility in Bangladesh, and accelerating the construction of a dedicated factory in Indonesia for its largest sports client[21](index=21&type=chunk) - The handbags and accessories manufacturing business is positioned as a core future growth driver, supported by the completed acquisition of a small factory in Vietnam[21](index=21&type=chunk) [Cash Return and Financial Position](index=9&type=section&id=3.4%20%E7%8F%BE%E9%87%91%E5%9B%9E%E9%A5%8B%E8%88%87%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81) The company maintains a strong financial position and commits to significant shareholder returns through dividends and buybacks - The Board recommends an interim dividend of **52 HK cents per ordinary share**, maintaining a payout ratio of approximately 70%[22](index=22&type=chunk) - The company commits to returning up to an additional **$60 million** in cash to shareholders annually in 2025 and 2026, on top of regular dividends, through share buybacks and special dividends[22](index=22&type=chunk) - The significant decrease in net cash inflow from operating activities was mainly due to changes in working capital, including an increase in inventories and a lower base of accounts receivable[24](index=24&type=chunk) Liquidity and Capital Structure | Indicator | Jun 30, 2025 (USD thousands) | Dec 31, 2024 (USD thousands) | Jun 30, 2024 (USD thousands) | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 350,800 | 423,500 | 334,600 | | Net Cash Inflow from Operations (H1) | 3,900 | N/A | 99,200 | | Net Cash Outflow from Investing (H1) | 25,300 | N/A | 15,700 | | Current Assets | 916,300 | 893,200 | N/A | | Current Liabilities | 327,700 | 279,100 | N/A | | Current Ratio | 2.8 | 3.2 | N/A | | Bank Borrowings | 59,500 | 5,900 | N/A | | Net Cash Position | 291,300 | 417,600 | 326,100 | | Net Gearing Ratio | -26.6% | -29.6% | -29.6% | [Other Operational Information](index=10&type=section&id=3.5%20%E5%85%B6%E4%BB%96%E8%BF%90%E8%90%A5%E4%BF%A1%E6%81%AF) The company manages foreign exchange risk, has minimal liabilities, and focuses on human capital development - The primary foreign exchange risk is the conversion of RMB and HKD to the Group's functional currency, the USD[29](index=29&type=chunk) - As of June 30, 2025, the value of pledged assets was **$10.8 million**, and there were no contingent liabilities[30](index=30&typechunk)[31](index=31&type=chunk) - There were no major acquisitions or disposals during the reporting period, but the acquisition of a small handbag and accessories factory in Vietnam was completed in July 2025[32](index=32&type=chunk) - As of June 30, 2025, the Group had approximately 43,400 direct employees and a total workforce of about 65,000, with a focus on developing its management team through programs like the "Leadership Program"[36](index=36&type=chunk) [Interim Dividend](index=11&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) [Details of Interim Dividend Declaration](index=11&type=section&id=4.1%20%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF%E5%AE%A3%E6%B4%BE%E8%AF%A6%E6%83%85) The Board declared an interim dividend of 52 HK cents per share, payable in September 2025 - The Board of Directors resolved to declare an interim dividend of **52 HK cents per ordinary share**[37](index=37&type=chunk) - The interim dividend will be paid on **September 19, 2025**, with the record date being September 9, 2025[37](index=37&type=chunk) - The register of members will be closed from September 5 to September 9, 2025, inclusive[37](index=37&type=chunk) [Independent Review Report](index=12&type=section&id=%E7%8D%A8%E7%AB%8B%E5%AF%A9%E9%96%B1%E5%A0%B1%E5%91%8A) [Scope of Review and Conclusion](index=12&type=section&id=5.1%20%E5%AE%A1%E9%98%85%E8%8C%83%E5%9B%B4%E4%B8%8E%E7%BB%93%E8%AE%BA) Ernst & Young's review found no material misstatements in the interim financial information - Ernst & Young has reviewed the interim financial information; the scope of a review is less than an audit, and no audit opinion is expressed[38](index=38&type=chunk)[39](index=39&type=chunk) - Nothing has come to their attention that causes them to believe that the interim financial information is not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34[40](index=40&type=chunk) [Interim Financial Statements](index=13&type=section&id=%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=13&type=section&id=6.1%20%E4%B8%AD%E6%9C%9F%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E6%8D%9F%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) The company reported a profit of $78.1 million for the six-month period ending June 30, 2025 H1 2025 Consolidated Statement of Profit or Loss Summary | Indicator | H1 2025 (USD thousands) | H1 2024 (USD thousands) | | :--- | :--- | :--- | | Revenue | 775,074 | 770,011 | | Cost of Sales | (599,916) | (571,128) | | Gross Profit | 175,158 | 198,883 | | Operating profit before fair value changes | 84,724 | 99,052 | | Profit before tax | 91,869 | 105,393 | | Income tax expense | (13,752) | (13,879) | | Profit for the period | 78,117 | 91,514 | | Basic earnings per share (US cents) | 9.5 | 11.5 | | Diluted earnings per share (US cents) | 9.3 | 11.2 | - Other comprehensive loss for the period was primarily due to an exchange difference of **$265 thousand** on the translation of foreign operations[42](index=42&type=chunk) [Interim Condensed Consolidated Statement of Financial Position](index=14&type=section&id=6.2%20%E4%B8%AD%E6%9C%9F%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5%E8%A1%A8) The company's net assets stood at $1.10 billion as of June 30, 2025, reflecting a solid financial position Consolidated Statement of Financial Position Summary as of June 30, 2025 | Indicator | Jun 30, 2025 (USD thousands) | Dec 31, 2024 (USD thousands) | | :--- | :--- | :--- | | Total non-current assets | 537,139 | 530,125 | | Total current assets | 916,307 | 893,241 | | Total current liabilities | 327,690 | 279,146 | | Net current assets | 588,617 | 614,095 | | Total assets less current liabilities | 1,125,756 | 1,144,220 | | Total non-current liabilities | 29,779 | 26,681 | | Net assets | 1,095,977 | 1,117,539 | | Total equity | 1,095,977 | 1,117,539 | - The current ratio of **2.8** indicates the Group's high liquidity and sound financial position[25](index=25&type=chunk) [Interim Condensed Consolidated Statement of Cash Flows](index=16&type=section&id=6.3%20%E4%B8%AD%E6%9C%9F%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) Net cash from operating activities decreased significantly in H1 2025, leading to a reduction in total cash reserves H1 2025 Consolidated Statement of Cash Flows Summary | Indicator | H1 2025 (USD thousands) | H1 2024 (USD thousands) | | :--- | :--- | :--- | | Net cash from operating activities | 3,906 | 99,178 | | Net cash used in investing activities | (25,264) | (15,689) | | Net cash used in financing activities | (48,931) | (42,809) | | Net (decrease)/increase in cash | (70,289) | 40,680 | | Cash and cash equivalents at end of period | 350,786 | 334,585 | - The sharp decrease in net cash from operating activities was mainly due to a **negative change in working capital of $106.3 million**, compared to a negative change of $27.0 million in the prior year period[24](index=24&type=chunk)[45](index=45&type=chunk) [Notes to the Financial Statements](index=17&type=section&id=6.4%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%99%84%E6%B3%A8) The notes provide detailed disclosures on accounting policies, segment information, revenue breakdown, and other financial items - The Group has two reportable operating segments: the **Manufacturing segment** (sales and manufacturing of footwear and handbags) and the **Retail and Wholesale segment** (sales of self-developed branded products)[48](index=48&type=chunk)[52](index=52&type=chunk) - Total share option expenses for the six months ended June 30, 2025, amounted to **$175 thousand** (H1 2024: $890 thousand)[94](index=94&type=chunk)[97](index=97&type=chunk)[91](index=91&type=chunk)[88](index=88&type=chunk)[84](index=84&type=chunk) - As of June 30, 2025, the Group's bank borrowings were **$59.542 million**, primarily denominated in NTD, HKD, and USD, with effective interest rates ranging from 1.05% to 5%[73](index=73&type=chunk) - The total remuneration for key management personnel of the Group for the six months ended June 30, 2025, was **$762 thousand** (H1 2024: $871 thousand)[102](index=102&type=chunk) H1 2025 Revenue by Geographical Market | Geographical Market | Revenue (USD thousands) | Percentage | | :--- | :--- | :--- | | North America | 377,120 | 48.7% | | Europe | 181,314 | 23.4% | | People's Republic of China ("PRC") | 119,990 | 15.5% | | Asia (excluding PRC) | 69,743 | 9.0% | | Others | 26,907 | 3.4% | | **Total** | **775,074** | **100%** | [Disclosure of Interests](index=39&type=section&id=%E6%AC%8A%E7%9B%8A%E6%8A%AB%E9%9C%B2) [Interests of Directors and Chief Executive](index=39&type=section&id=7.1%20%E8%91%A3%E4%BA%8B%E5%8F%8A%E6%9C%80%E9%AB%98%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%91%98%E6%9D%83%E7%9B%8A) Directors' and the chief executive's interests in the company's shares and underlying shares have been disclosed Total Long Positions of Directors and Chief Executive in Shares and Underlying Shares (June 30, 2025) | Director | Number of Shares | Number of Underlying Shares (Options) | Total | Approx. % of Shareholding | | :--- | :--- | :--- | :--- | :--- | | CHAN Fu Keung | 100,000 | – | 100,000 | 0.01% | | CHAN Li-Ming | 28,769,227 | – | 28,769,227 | 3.44% | | CHAI Yue-Sun | 2,783,500 | 4,449,500 | 7,233,000 | 0.86% | | CHIANG Yi-Min | 53,547,418 | 3,479,500 | 59,780,067 | 7.14% | | Gillman Christopher Charles | – | 2,029,500 | 2,029,500 | 0.24% | - Mr. CHIANG Yi-Min's interest includes a spousal interest (2,753,149 shares, which ceased to be deemed an interest on July 2, 2025) and a family interest (52,747,418 shares)[114](index=114&type=chunk) [Interests of Substantial Shareholders and Other Persons](index=41&type=section&id=7.2%20%E4%B8%BB%E8%A6%81%E8%82%A1%E4%B8%9C%E5%8F%8A%E5%85%B6%E4%BB%96%E4%BA%BA%E5%A3%AB%E6%9D%83%E7%9B%8A) Cordwalner Bonaventure Inc. is the largest substantial shareholder with a 20.73% stake in the company Long Positions of Substantial Shareholders in the Company's Shares (June 30, 2025) | Name | Number of Shares | Approx. % of Shareholding | | :--- | :--- | :--- | | Cordwalner Bonaventure Inc. | 173,508,593 | 20.73% | | Chiang Family (PTC) Limited | 52,747,418 | 6.30% | | Merci Capital Limited | 52,747,418 | 6.30% | | CHIANG Chih-Kang | 53,078,918 | 6.34% | - Mr. CHIANG Chih-Kang holds shares indirectly through a trust he founded (Chiang Family (PTC) Limited) and Merci Capital Limited, in addition to a direct holding of 331,500 shares[118](index=118&type=chunk) [Corporate Governance](index=42&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) [Compliance with the Corporate Governance Code](index=42&type=section&id=8.1%20%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%88%99%E9%81%B5%E5%AE%88%E6%83%85%E5%86%B5) The company maintained full compliance with the Corporate Governance Code throughout the first half of 2025 - The company has complied with all provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules throughout the first half of 2025[119](index=119&type=chunk) - The company advocates a model that combines corporate governance with business governance to enhance accountability and assurance to shareholders[120](index=120&type=chunk) - All directors have confirmed their compliance with the Model Code for Securities Transactions by Directors of Listed Issuers throughout the first half of 2025[121](index=121&type=chunk) [Other Information](index=43&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) [Events After the Reporting Period](index=43&type=section&id=9.1%20%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%90%8E%E4%BA%8B%E9%A1%B9) No significant events affecting the Group occurred after the reporting period - From the end of the reporting period until the date of this interim report, no events have occurred that would have a material impact on the Group[122](index=122&type=chunk) [Share-based Payment Schemes](index=43&type=section&id=9.2%20%E8%82%A1%E4%BB%BD%E6%94%AF%E4%BB%98%E8%AE%A1%E5%88%92) The company has adopted new share option and award schemes in 2024 to replace its terminated 2017 plan - The 2017 Share Option Scheme was terminated on May 9, 2024, but options granted prior to termination remain exercisable under their original terms[123](index=123&type=chunk)[132](index=132&type=chunk) - The 2024 Share Option Scheme aims to reward employees, attract and retain talent, and promote long-term financial and business performance[146](index=146&type=chunk) - The 2024 Share Award Scheme will use existing shares for awards, requiring no new share issuance and no shareholder approval under Chapter 17 of the Listing Rules[157](index=157&type=chunk) - As of the date of this interim report, no options or share awards have been granted under the 2024 Share Option Scheme or the 2024 Share Award Scheme[156](index=156&type=chunk)[161](index=161&type=chunk) Summary of Outstanding Options under the 2017 Scheme (June 30, 2025) | Option Type | Exercise Price (HKD) | Outstanding (Options) | | :--- | :--- | :--- | | April 2020 Options | 8.71 | 468,000 | | November 2020 Options | 9.15 | 3,899,000 | | March 2021 Options | 9.46 | 6,000,000 | | January 2022 Options | 9.10 | 6,965,000 | | March 2023 Options | 7.65 | 8,695,000 | | **Total** | **-** | **26,027,000** | [Review and Dealings in Company Securities](index=56&type=section&id=9.3%20%E5%AE%A1%E9%98%85%E4%B8%8E%E5%85%AC%E5%8F%B8%E8%AF%81%E5%88%B8%E4%BA%A4%E6%98%93) The Audit Committee has reviewed the interim results, and the company did not trade its own securities - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the reporting period[163](index=163&type=chunk) - The Audit Committee has reviewed the Group's interim results and the accounting principles and practices adopted, with no disagreements[164](index=164&type=chunk) [Corporate Information](index=56&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) [Board of Directors and Committee Composition](index=57&type=section&id=10.1%20%E8%91%A3%E4%BA%8B%E4%BC%9A%E4%B8%8E%E5%A7%94%E5%91%98%E4%BC%9A%E6%9E%84%E6%88%90) The company's governance structure includes a Board of Directors and five specialized committees - The Board of Directors includes Executive Directors such as Chairman CHAN Li-Ming and CEO CHAI Yue-Sun, and Independent Non-executive Directors including Peter BOLLIGER, CHAN Fu Keung, YU Chao-Tang, and WAN Sin Yi[165](index=165&type=chunk) - The company has established an Audit Committee, Corporate Governance Committee, Executive Committee, Nomination Committee, and Remuneration Committee, each with a designated chairman and members[165](index=165&type=chunk) [Basic Corporate Information](index=57&type=section&id=10.2%20%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E4%BF%A1%E6%81%AF) This section provides key corporate details including officers, advisors, and stock information - The Chief Financial Officer is TAM Shiu Ming, and the Company Secretary is KAN Siu Yim[165](index=165&type=chunk) - The legal advisor is Chiu & Partners, and the auditor is Ernst & Young[166](index=166&type=chunk) - Principal bankers include CTBC Bank Co, Ltd, The Hongkong and Shanghai Banking Corporation Limited, and Citibank Taiwan, Ltd[166](index=166&type=chunk) - The company's stock code is 1836, and its website is www.stella.com.hk[167](index=167&type=chunk)

[Overview of 2024 Annual Report Supplemental Announcement](index=1&type=section&id=2024%E5%B9%B4%E5%B9%B4%E5%A0%B1%E8%A3%9C%E5%85%85%E5%85%AC%E5%91%8A%E6%A6%82%E8%A7%88) This announcement supplements CANbridge Pharmaceuticals Inc.'s 2024 annual report, detailing asset write-offs and share schemes - This announcement supplements CANbridge Pharmaceuticals Inc.'s 2024 annual report, providing additional information on right-of-use asset write-offs and share schemes[2](index=2&type=chunk)[3](index=3&type=chunk) [Write-off of Right-of-Use Assets](index=1&type=section&id=%E6%92%BF%E9%8A%B7) The company disclosed write-offs of U.S. right-of-use assets due to business scaling, recognizing lease liabilities at year-end - The company negotiated with the landlord of its U.S. Boston office and laboratory due to a U.S. scaling-down plan and vacated in the second half of 2024[4](index=4&type=chunk) - The company began defaulting on rent in August 2024[4](index=4&type=chunk) - Despite vacating, the lease agreement remained legally binding as of December 31, 2024, until the termination agreement became effective on February 8, 2025, thus lease liabilities were recognized at carrying value and not derecognized or reassessed[4](index=4&type=chunk) [Details of Share Schemes](index=2&type=section&id=%E8%82%A1%E4%BB%BD%E8%A8%88%E5%8A%83) Supplementary details were provided for pre-IPO and post-IPO share schemes, covering exercise, vesting, grants, limits, and a disclosure clarification - Supplementary information pertains to the pre-IPO equity incentive scheme, post-IPO restricted share unit scheme, and post-IPO share option scheme[5](index=5&type=chunk) [Exercise and Vesting of Share Incentives During the Reporting Period](index=2&type=section&id=%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E8%82%A1%E4%BB%BD%E6%BF%80%E5%8A%B1%E8%A1%8C%E4%BD%BF%E4%B8%8E%E5%BD%92%E5%B1%9E) The company disclosed pre-IPO share option exercises and post-IPO restricted share unit vesting for employees and Dr. Xue Overview of Share Incentive Exercise and Vesting During the Reporting Period | Share Scheme | Participant | Number of Shares | Exercise or Vesting Date | Weighted Average Closing Price Immediately Preceding Date (HKD) | | :--- | :--- | :--- | :--- | :--- | | Pre-IPO Equity Incentive Scheme | Certain Employees | 276,200 | 2023年12月29日 - 2024年1月23日 | 0.87 | | Post-IPO Restricted Share Unit Scheme | Dr. Xue | 75,000 | 2024年1月12日 - 2024年12月12日 | 0.36 | | Post-IPO Restricted Share Unit Scheme | Other Employees | 459,375 | 2024年1月12日 - 2024年11月12日 | 0.30 | [Grant and Grantable Limits of Share Schemes](index=3&type=section&id=%E8%82%A1%E4%BB%BD%E8%AE%A1%E5%88%92%E6%8E%88%E5%87%BA%E5%8F%8A%E5%8F%AF%E6%8E%88%E5%87%BA%E4%B8%8A%E9%99%90) The company granted 19.15 million share incentives (4.51% of issued shares) and disclosed scheme grantable limits - During the reporting period, **6,336,000 restricted share units** were granted under the post-IPO restricted share unit scheme, and **12,815,000 share options** were granted under the post-IPO share option scheme[6](index=6&type=chunk) - The total number of restricted share units and share options granted during the reporting period was **19,151,000 shares**, representing approximately **4.51%** of the weighted average number of relevant class of shares issued during the same period[6](index=6&type=chunk) Grantable Limits of Share Schemes as of 2024 Annual Report Date | Share Scheme | Maximum Number of Shares Grantable | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | | Post-IPO Restricted Share Unit Scheme (Total) | 42,483,832 | 10% | | Post-IPO Restricted Share Unit Scheme (Service Providers) | 4,248,383 | 1% | | Post-IPO Share Option Scheme (Total) | 42,483,832 | 10% | | Post-IPO Share Option Scheme (Service Providers) | 4,248,383 | 1% | [Clarification of 2024 Annual Report Disclosure](index=3&type=section&id=2024%E5%B9%B4%E5%B9%B4%E6%8A%A5%E6%8A%AB%E9%9C%B2%E6%BE%84%E6%B8%85) The company clarified a 2024 annual report error regarding restricted share unit disclosure, stating 'exercise' is inapplicable - Clarification that the column 'Number of relevant shares of restricted share units exercised during the reporting period' in the 2024 annual report, page 46 table, is not applicable to restricted share units and should be deleted[6](index=6&type=chunk) - The total number of relevant shares for restricted share units during the reporting period was **534,375 shares**[6](index=6&type=chunk) [Concluding Remarks of the Announcement](index=4&type=section&id=%E5%85%AC%E5%91%8A%E7%BB%93%E8%AF%AD) This supplemental announcement provides additional information, with all other 2024 annual report content unchanged - This supplementary information does not affect other information contained in the 2024 annual report, and all other information remains unchanged[7](index=7&type=chunk) - Board members include Executive Director Dr. Xue Qun, Non-executive Directors Ms. Zhao Wei and Mr. Wang Tingwei, and Independent Non-executive Directors Dr. Richard James Gregory, Mr. James Arthur Geraghty, Mr. Chen Bingjun, and Dr. Hu Lan[8](index=8&type=chunk)

目 錄 公司資料 1 綜合損益表 2 綜合損益及其他全面收益表 3 綜合財務狀況表 4 綜合權益變動表 6 簡明綜合現金流量表 8 未經審核中期財務報告附註 9 致董事會之審閱報告 24 管理層討論及分析 25 權益披露 31 其他資料 33 公司資料 （截至2025 年 8 月21日） 董事會 執行董事 張松橋 （主席） 楊顯中，SBS, OBE, JP （董事總經理） 袁永誠 黃志強 梁偉輝 董慧蘭 獨立非執行董事 吳國富 梁宇銘 黃龍德，BBS, JP 審核委員會 梁宇銘 （主席） 吳國富 黃龍德 薪酬委員會 梁宇銘 （主席） 張松橋 吳國富 提名委員會 張松橋 （主席） 董慧蘭 吳國富 梁宇銘 黃龍德 授權代表 楊顯中 梁偉輝 （楊顯中之替任者） 袁永誠 黃志強 （袁永誠之替任者） 公司秘書 文潔玲 法律顧問 胡關李羅律師行 註冊辦事處 香港 灣仔 港灣道26 號 華潤大廈25 樓 電話：(852) 2161 1888 傳真：(852) 2802 2080 網站：www.ch.limited 電郵：investors@ch.limited 外聘核數師 畢馬威會計師事務所 執業會計師 於《會計及財務匯報 ...

[Company Information](index=4&type=section&id=Company%20Information) [Company Overview](index=4&type=section&id=Company%20Information) This section provides fundamental company details, including board and committee compositions, auditors, bankers, registered office, and stock code - Board members include Executive Directors Mr. Chan Lap Tak (Chairman), Mr. Lo Chi Ho (CEO), Ms. Chan Ka Yan, and Independent Non-executive Directors Mr. Chan Chi Kwong, Mr. Liu Kin Sing, Mr. Au Yeung Po Fung[6](index=6&type=chunk) - Key Committee Chairmen: Audit Committee chaired by Mr. Au Yeung Po Fung, Remuneration Committee by Mr. Liu Kin Sing, Nomination Committee by Mr. Chan Lap Tak[6](index=6&type=chunk) - Company stock code is **8036**, and the website is www.ebrokersystems.com[7](index=7&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Unaudited)](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income%20(Unaudited)) [Interim Results Overview](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income%20(Unaudited)) For the six months ended June 30, 2025, the Group achieved a profit of HK$1.11 million, a significant improvement from a loss of HK$1.35 million in the prior year, primarily due to a turnaround in net other gains and losses despite a decrease in total revenue Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data (For the six months ended June 30) | Indicators | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Revenue | 14,125 | 15,904 | | Other income | 253 | 551 | | Net other gains and losses | 2,263 | (373) | | Staff costs | (9,410) | (10,842) | | Operating profit/(loss) | 1,206 | (1,269) | | Profit/(loss) before tax | 1,107 | (1,314) | | Profit/(loss) for the period attributable to owners of the Company | 1,107 | (1,350) | | Basic earnings/(loss) per share (HK cents) | 0.1 | (0.12) | - Profit for the period attributable to owners of the Company turned from a **loss of HK$1,350 thousand** in the same period of 2024 to a **profit of HK$1,107 thousand** in the same period of 2025[8](index=8&type=chunk) - Net other gains and losses turned from a **loss of HK$373 thousand** in the same period of 2024 to a **gain of HK$2,263 thousand** in the same period of 2025, being the main driver of performance improvement[8](index=8&type=chunk) [Condensed Consolidated Statement of Financial Position (Unaudited)](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position%20(Unaudited)) [Financial Position Overview](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position%20(Unaudited)) As of June 30, 2025, the Group's net assets increased to HK$61.95 million, with stable net current assets; cash and cash equivalents significantly increased, while trade and other receivables decreased Condensed Consolidated Statement of Financial Position Key Data (As of June 30) | Indicators | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | **Non-current assets:** | | | | Property, plant and equipment | 11,173 | 11,238 | | Intangible assets | 8,131 | 6,814 | | Right-of-use assets | 2,619 | 3,425 | | Financial assets at fair value through other comprehensive income | 2,653 | 2,229 | | **Current assets:** | | | | Contract assets | 399 | 375 | | Trade and other receivables | 12,913 | 15,393 | | Financial assets at fair value through profit or loss | 10,389 | 8,154 | | Cash and cash equivalents | 19,965 | 9,645 | | **Current liabilities:** | | | | Trade and other payables | 3,084 | 2,941 | | Contract liabilities | 1,747 | 1,216 | | **Net assets** | **61,954** | **60,380** | - Cash and cash equivalents significantly increased from **HK$9,645 thousand** as of December 31, 2024, to **HK$19,965 thousand** as of June 30, 2025[10](index=10&type=chunk) - Intangible assets grew by **19.3%** to **HK$8,131 thousand**, while trade and other receivables decreased by **16.1%** to **HK$12,913 thousand**[10](index=10&type=chunk) [Condensed Consolidated Statement of Changes in Equity (Unaudited)](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity%20(Unaudited)) [Equity Movement Analysis](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity%20(Unaudited)) For the six months ended June 30, 2025, the Group's total equity increased to HK$61.95 million, primarily driven by the turnaround from a loss to a profit in total comprehensive income for the period and a significant improvement in the investment revaluation reserve Condensed Consolidated Statement of Changes in Equity Key Data (As of June 30) | Indicators | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Share capital | 1,230 | 1,230 | | Share premium | 61,921 | 61,921 | | Capital reserve | (54,333) | (54,333) | | Exchange fluctuation reserve | 419 | 473 | | Investment revaluation reserve | 147 | (581) | | Statutory reserve | 26 | 26 | | Shares held for share award scheme | (16,097) | (16,531) | | Share-based payment reserve | 162 | 59 | | Retained profits | 68,479 | 68,992 | | **Total equity** | **61,954** | **61,256** | - Total comprehensive income attributable to owners of the Company for the period turned from a **loss of HK$1,371 thousand** in the same period of 2024 to a **gain of HK$1,513 thousand** in the same period of 2025[13](index=13&type=chunk) - Investment revaluation reserve turned from a **loss of HK$581 thousand** in the same period of 2024 to a **gain of HK$147 thousand** in the same period of 2025, reflecting fair value changes of equity instruments at fair value through other comprehensive income[13](index=13&type=chunk) [Condensed Consolidated Statement of Cash Flows (Unaudited)](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows%20(Unaudited)) [Cash Flow Analysis](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows%20(Unaudited)) For the six months ended June 30, 2025, the net increase in cash and cash equivalents significantly grew, primarily due to a turnaround from net outflow to net inflow from operating activities and continued positive cash flow from investing activities Condensed Consolidated Statement of Cash Flows Key Data (For the six months ended June 30) | Indicators | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Net cash generated from/(used in) operating activities | 2,739 | (255) | | Net cash generated from investing activities | 8,312 | 7,551 | | Net cash used in financing activities | (886) | (787) | | Net increase in cash and cash equivalents | 10,165 | 1,897 | | Cash and cash equivalents at June 30 | 19,965 | 30,414 | - Net cash generated from operating activities turned from a **net outflow of HK$255 thousand** in the same period of 2024 to a **net inflow of HK$2,739 thousand** in the same period of 2025[14](index=14&type=chunk) - Net increase in cash and cash equivalents significantly increased from **HK$1,897 thousand** in the same period of 2024 to **HK$10,165 thousand** in the same period of 2025[14](index=14&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [1. General Information](index=10&type=section&id=1.%20General%20Information) This note outlines the company's registration information and listing status - eBroker Systems Limited was incorporated in the Cayman Islands on May 23, 2016[15](index=15&type=chunk) - The Company's shares were listed on GEM of The Stock Exchange of Hong Kong Limited on February 19, 2019[15](index=15&type=chunk) [2. Basis of Preparation](index=10&type=section&id=2.%20Basis%20of%20Preparation) This note explains the basis for preparing the interim financial statements, emphasizing compliance with HKAS 34 and GEM Listing Rules, and consistency with annual financial statements - The unaudited condensed consolidated financial statements have been prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants[16](index=16&type=chunk) - The significant accounting policies adopted are consistent with those followed in the 2024 audited consolidated financial statements, except for new and revised standards[16](index=16&type=chunk) [3. Adoption of New and Revised Hong Kong Financial Reporting Standards](index=10&type=section&id=3.%20Adoption%20of%20New%20and%20Revised%20Hong%20Financial%20Reporting%20Standards) This note describes the company's adoption of new and revised HKFRSs and its assessment of their potential impact on the financial statements - The Directors believe that the adoption of new and revised HKFRSs effective for accounting periods beginning on January 1, 2025, will not have a significant impact on the results and financial position for the current and prior periods[17](index=17&type=chunk) - The Group is assessing the potential impact of HKFRSs that have not yet become effective or been early adopted[17](index=17&type=chunk) [4. Revenue](index=11&type=section&id=4.%20Revenue) This note details the Group's revenue by major product/service lines and geographical locations, showing a decrease in total revenue but growth in installation and customization services and mainland China market revenue Revenue Classification (For the six months ended June 30) | Product or Service Line | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Front-end trading solution services income | 6,921 | 8,027 | | Back-end settlement solution services income | 3,996 | 4,726 | | Installation and customization services income | 1,989 | 1,323 | | Managed cloud services income | 756 | 1,038 | | Others | 463 | 790 | | **Total** | **14,125** | **15,904** | Revenue by Major Geographical Market (For the six months ended June 30) | Region | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Hong Kong | 12,758 | 14,846 | | Macau | 302 | 598 | | Mainland China | 984 | 393 | | Singapore | 81 | 67 | | **Total** | **14,125** | **15,904** | - Installation and customization services income increased by **50.3%** year-on-year, while front-end trading and back-end settlement solution services income decreased by **13.8%** and **15.4%** respectively[19](index=19&type=chunk) [5. Other Income, and Net Other Gains and Losses](index=12&type=section&id=5.%20Other%20Income%2C%20and%20Net%20Other%20Gains%20and%20Losses) This note details the composition of other income and net other gains and losses, showing a decrease in other income but a significant increase in fair value gains on financial assets at fair value through profit or loss Other Income (For the six months ended June 30) | Indicators | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Bank interest income | 232 | 431 | | Dividend income from financial assets at fair value through profit or loss | 16 | 114 | | Government grants | 5 | 6 | | **Total** | **253** | **551** | - Fair value gains/(losses) on financial assets at fair value through profit or loss turned from a **loss of HK$373 thousand** in the same period of 2024 to a **gain of HK$2,263 thousand** in the same period of 2025[20](index=20&type=chunk) [6. Other Operating Expenses](index=12&type=section&id=6.%20Other%20Operating%20Expenses) This note provides a detailed breakdown of other operating expenses, showing a decrease in total, mainly due to reduced service costs, legal and professional fees, and net exchange gains Other Operating Expenses (For the six months ended June 30) | Indicators | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Service costs | 872 | 1,025 | | Amortisation of intangible assets | 669 | 669 | | Auditor's remuneration | 343 | 378 | | Legal and professional fees | 973 | 1,080 | | Office expenses | 818 | 729 | | Net exchange gains/(losses) | (205) | 140 | | **Total** | **4,797** | **5,359** | - Total other operating expenses decreased by **10.5%** year-on-year to **HK$4,797 thousand**[21](index=21&type=chunk) - Net exchange gains turned from a **loss of HK$140 thousand** in the same period of 2024 to a **gain of HK$205 thousand** in the same period of 2025[21](index=21&type=chunk) [7. Segment Information](index=13&type=section&id=7.%20Segment%20Information) This note states that the Group has only one reportable segment, providing financial software solution services, and presents revenue distribution by geographical location - The Group has only one reportable segment, which is the provision of services to the Group's customers[22](index=22&type=chunk) Revenue by Geographical Location (For the six months ended June 30) | Region | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Hong Kong | 12,758 | 14,846 | | Macau | 302 | 598 | | Mainland China | 984 | 393 | | Singapore | 81 | 67 | | **Total** | **14,125** | **15,904** | - During the period, no individual customer contributed more than **10%** of the Group's total revenue[22](index=22&type=chunk) [8. Income Tax Expense](index=14&type=section&id=8.%20Income%20Tax%20Expense) This note explains why income tax expense is zero, mainly due to tax losses incurred by Chinese subsidiaries and the taxable profit situation under the Hong Kong profits tax regime Income Tax Expense (For the six months ended June 30) | Indicators | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Current tax – Hong Kong profits tax | – | 36 | - Income tax expense for the same period in 2025 was **zero HKD**, a **100%** decrease from **HK$36 thousand** in the same period of 2024[23](index=23&type=chunk) - No provision was made for the period as the Chinese subsidiary incurred tax losses[23](index=23&type=chunk) [9. Profit/(Loss) for the Period](index=14&type=section&id=9.%20Profit%2F(Loss)%20for%20the%20Period) This note details the deductions and inclusions affecting the Group's profit or loss for the period, including depreciation, reversal of impairment losses, and finance costs [9(a) Profit/(Loss) for the Period is Stated After Charging/(Crediting) the Following](index=14&type=section&id=9(a)%20Profit%2F(Loss)%20for%20the%20Period%20is%20Stated%20After%20Charging%2F(Crediting)%20the%20Following) This sub-section lists specific items deducted or credited when calculating profit/loss for the period Profit/(Loss) for the Period Adjustments (For the six months ended June 30) | Indicators | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Auditor's remuneration | 343 | 378 | | Cost of inventories sold | – | 4 | | Depreciation of property, plant and equipment | 422 | 420 | | Depreciation of right-of-use assets | 806 | 726 | | Net reversal of impairment loss on trade receivables | (171) | (7) | - Net reversal of impairment loss on trade receivables increased from **HK$7 thousand** in the same period of 2024 to **HK$171 thousand** in the same period of 2025[24](index=24&type=chunk) [9(b) Finance Costs](index=15&type=section&id=9(b)%20Finance%20Costs) This sub-section explains the finance costs for the period, primarily interest expense on lease liabilities Finance Costs (For the six months ended June 30) | Indicators | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Interest expense on lease liabilities | 99 | 45 | - Interest expense on lease liabilities increased from **HK$45 thousand** in the same period of 2024 to **HK$99 thousand** in the same period of 2025[25](index=25&type=chunk) [10. Earnings/(Loss) Per Share](index=15&type=section&id=10.%20Earnings%2F(Loss)%20Per%20Share) This note provides the calculation method for basic earnings per share, reflecting the company's shift from loss to profit per share Basic Earnings/(Loss) Per Share (For the six months ended June 30) | Indicators | 2025 (HK$'000/thousand shares) | 2024 (HK$'000/thousand shares) | | :--- | :--- | :--- | | Profit/(loss) attributable to owners of the Company | 1,107 | (1,350) | | Weighted average number of ordinary shares (thousand shares) | 1,147,095 | 1,144,860 | | Basic earnings/(loss) per share (HK cents) | 0.1 | (0.12) | - Diluted earnings/(loss) per share was not calculated as there were no potentially dilutive ordinary shares[26](index=26&type=chunk) [11. Dividends](index=15&type=section&id=11.%20Dividends) This note states that the board of directors does not recommend any dividend for this interim period - The Directors do not recommend the payment of any dividend for the six months ended June 30, 2025 (2024: nil HKD)[27](index=27&type=chunk) [12. Contract Assets and Contract Liabilities](index=16&type=section&id=12.%20Contract%20Assets%20and%20Contract%20Liabilities) This note explains the changes in contract assets and contract liabilities, reflecting an increase in completed but unbilled work and advance payments for installation projects [12(a) Contract Assets](index=16&type=section&id=12(a)%20Contract%20Assets) This sub-section explains the nature of contract assets and the reasons for their increase Contract Assets (As of June 30) | Indicators | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Contract assets related to provision of services | 399 | 375 | - The increase in contract assets was mainly due to an increase in work completed but not yet billed as of June 30, 2025[28](index=28&type=chunk) [12(b) Contract Liabilities](index=16&type=section&id=12(b)%20Contract%20Liabilities) This sub-section explains the composition of contract liabilities and the reasons for their increase, and lists the revenue recognition related to contract liabilities Contract Liabilities (As of June 30) | Indicators | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Contract liabilities related to provision of services | 1,747 | 1,216 | - The increase in contract liabilities was mainly due to an overall increase in installation projects[29](index=29&type=chunk) - Revenue recognised during the period related to contract liabilities balance at the beginning of the period was **HK$743 thousand** (2024: **HK$929 thousand**)[30](index=30&type=chunk) [13. Trade and Other Receivables](index=18&type=section&id=13.%20Trade%20and%20Other%20Receivables) This note provides a detailed breakdown, aging analysis, and currency denomination of trade and other receivables, showing a significant decrease in amounts due from brokers Overview of Trade and Other Receivables (As of June 30) | Indicators | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Trade receivables (net of impairment loss) | 2,813 | 2,712 | | Prepayments, deposits and other receivables | 1,402 | 1,447 | | Amounts due from brokers | 8,852 | 11,387 | | **Total** | **13,728** | **16,208** | - Amounts due from brokers decreased from **HK$11,387 thousand** as of December 31, 2024, to **HK$8,852 thousand** as of June 30, 2025, with a significant reduction in amounts owed by companies beneficially owned by Mr. Chan Lap Tak[31](index=31&type=chunk)[32](index=32&type=chunk) Aging Analysis of Trade Receivables (As of June 30) | Aging | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | 0 to 30 days | 1,976 | 1,174 | | 31 to 60 days | 212 | 347 | | 61 to 90 days | 118 | 267 | | 91 to 120 days | 144 | 386 | | Over 120 days | 363 | 538 | | **Total** | **2,813** | **2,712** | [14. Trade and Other Payables](index=19&type=section&id=14.%20Trade%20and%20Other%20Payables) This note lists the composition, aging analysis, and currency denomination of trade and other payables, showing a slight increase in total Overview of Trade and Other Payables (As of June 30) | Indicators | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Trade payables | 177 | 214 | | Accruals and other payables | 2,907 | 2,727 | | **Total** | **3,084** | **2,941** | Aging Analysis of Trade Payables (As of June 30) | Aging | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | 0 to 30 days | 101 | 136 | | 31 to 60 days | 74 | 76 | | 61 to 90 days | – | – | | Over 90 days | 2 | 2 | | **Total** | **177** | **214** | - Total trade and other payables increased from **HK$2,941 thousand** as of December 31, 2024, to **HK$3,084 thousand** as of June 30, 2025[34](index=34&type=chunk) [15. Share Capital](index=20&type=section&id=15.%20Share%20Capital) This note elaborates on the Group's capital management objectives and the Company's authorised and issued share capital structure, including shares held under the share award scheme [The Group](index=20&type=section&id=The%20Group) This sub-section describes the Group's capital management objectives and strategies - The Group's capital management objective is to ensure its ability to continue as a going concern and maximise returns to shareholders by optimising the debt and equity balance[36](index=36&type=chunk) - As of June 30, 2025, the Group's total liabilities to total assets ratio was approximately **10.9%** (December 31, 2024: approximately **12.44%**)[36](index=36&type=chunk) [The Company](index=21&type=section&id=The%20Company) This sub-section provides detailed information on the Company's authorised and issued share capital Share Capital Structure (As of June 30) | Indicators | Par Value (HKD) | Number of Shares (thousand shares) | Amount (HK$'000) | | :--- | :--- | :--- | :--- | | Authorised ordinary shares | 0.001 | 5,000,000 | 5,000 | | Issued and fully paid ordinary shares | 0.001 | 1,230,000 | 1,230 | - As of June 30, 2025, the total number of shares included **82,905,000 shares** held by the trustee under the share award scheme[37](index=37&type=chunk) [16. Right-of-Use Assets](index=22&type=section&id=16.%20Right-of-Use%20Assets) This note reports changes in right-of-use assets, including additions and depreciation expense during the period - For the six months ended June 30, 2025, the Group added approximately **nil HKD** in right-of-use assets (December 31, 2024: **HK$947 thousand**)[38](index=38&type=chunk) - Depreciation expense for right-of-use assets of approximately **HK$806 thousand** was recognised during the period (December 31, 2024: approximately **HK$1,508 thousand**)[38](index=38&type=chunk) [17. Property, Plant and Equipment](index=22&type=section&id=17.%20Property%2C%20Plant%20and%20Equipment) This note discloses the Group's capital expenditure on property, plant and equipment - For the six months ended June 30, 2025, the Group purchased approximately **HK$40 thousand** of property, plant and equipment (December 31, 2024: approximately **HK$53 thousand**)[39](index=39&type=chunk) [18. Intangible Assets](index=22&type=section&id=18.%20Intangible%20Assets) This note reports the Group's capitalised development costs, recognised as intangible assets during the period - For the six months ended June 30, 2025, the Group capitalised development costs of approximately **HK$1,986 thousand** (December 31, 2024: approximately **HK$3,348 thousand**)[40](index=40&type=chunk) [19. Reserves](index=22&type=section&id=19.%20Reserves) This note indicates that the amounts and changes in reserves can be found in the condensed consolidated statement of changes in equity - The amounts and corresponding movements of the Group's reserves for the current period and the same period in 2024 are presented in the unaudited condensed consolidated statement of changes in equity in this report[41](index=41&type=chunk) [20. Contingent Liabilities](index=22&type=section&id=20.%20Contingent%20Liabilities) This note confirms that the Group had no significant contingent liabilities as of the reporting period end - As of June 30, 2025, the Group had no significant contingent liabilities[41](index=41&type=chunk) [21. Events After the Reporting Period](index=22&type=section&id=21.%20Events%20After%20the%20Reporting%20Period) This note states that no significant events occurred from the end of the reporting period to the date of this report - No significant events occurred after June 30, 2025, and up to the date of this report[42](index=42&type=chunk) [22. Approval of Financial Statements](index=22&type=section&id=22.%20Approval%20of%20Financial%20Statements) This note specifies the approval date of the condensed consolidated financial statements - The condensed consolidated financial statements for the six months ended June 30, 2025, were approved and authorised for issue by the Board of Directors on August 28, 2025[43](index=43&type=chunk) [Management Discussion and Analysis](index=23&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=23&type=section&id=Business%20Review) The Group primarily provides financial software solutions to Hong Kong financial institutions; for the six months ended June 30, 2025, revenue decreased by 11.2% year-on-year, but profit attributable to owners of the Company turned from a loss to a profit, increasing by 182%, mainly due to increased non-recurring installation and customization services and other income growth - The Group is principally engaged in providing financial software solution services to financial institutions in Hong Kong, including front-end trading, back-end settlement, installation and customization, and managed cloud services[44](index=44&type=chunk) - For the six months ended June 30, 2025, revenue was approximately **HK$14.1 million**, a decrease of **11.2%** compared to the same period last year[44](index=44&type=chunk) - Profit attributable to owners of the Company was approximately **HK$1.1 million**, an increase of approximately **182%** compared to a loss of **HK$1.4 million** in the same period last year, mainly attributable to an increase of approximately **HK$0.7 million** in non-recurring installation and customization services and an increase of **HK$2.6 million** in other income[44](index=44&type=chunk) [Outlook](index=23&type=section&id=Outlook) Looking ahead, the Group will continue to navigate macroeconomic uncertainties and seize opportunities from technological advancements and innovation to achieve sustainable business growth and long-term shareholder interests - The macroeconomic environment will continue to face uncertainties arising from ongoing geopolitical developments and rapid technological innovation[45](index=45&type=chunk) - The Group will continue to face challenges while seizing opportunities brought by technological advancements and innovation to achieve sustainable business growth and long-term shareholder interests[45](index=45&type=chunk) [Financial Review](index=24&type=section&id=Financial%20Review) This section provides a detailed review of the Group's financial performance, including changes and key reasons for revenue, inventories, profit before tax, other income, staff costs, depreciation, other operating expenses, and income tax expense [Revenue](index=24&type=section&id=Revenue) The Group's total revenue decreased by 11.2% year-on-year, mainly due to reduced back-end settlement solution services income and front-end trading solution services income - For the six months ended June 30, 2025, the Group recorded revenue of approximately **HK$14.1 million**, a decrease of approximately **11.2%** compared to the same period last year[47](index=47&type=chunk) - Back-end settlement solution services income decreased by approximately **15.4%** to approximately **HK$4.0 million**, and front-end trading solution services income decreased by approximately **13.8%** to approximately **HK$6.9 million**[47](index=47&type=chunk) [Purchase and Changes in Inventories](index=24&type=section&id=Purchase%20and%20Changes%20in%20Inventories) Inventory purchases and changes were nil for the period, indicating no product sales by the Group - The Group's purchase and changes in inventories for the six months ended June 30, 2025, were **nil HKD**, a decrease of approximately **100%** compared to the same period last year[48](index=48&type=chunk) - This decrease was mainly due to the Group having no product sales for the six months ended June 30, 2025[48](index=48&type=chunk) [Profit Before Tax](index=25&type=section&id=Profit%20Before%20Tax) The Group's profit before tax turned from a loss to a profit compared to the same period last year, mainly due to a significant increase in other income - The Group's profit before tax for the six months ended June 30, 2025, was approximately **HK$1.1 million**, an increase of approximately **184.2%** compared to a loss before tax of approximately **HK$1.3 million** in the same period last year[49](index=49&type=chunk) - This increase was mainly due to an increase of approximately **HK$2.6 million** in other income for the six months ended June 30, 2025[49](index=49&type=chunk) [Other Income](index=25&type=section&id=Other%20Income) The Group's other income decreased, mainly due to reduced bank interest income and dividend income from financial assets - The Group's other income decreased from approximately **HK$551 thousand** in the same period last year to approximately **HK$253 thousand**[50](index=50&type=chunk) - This was due to a decrease of approximately **HK$199 thousand** in interest income and a decrease of approximately **HK$98 thousand** in dividend income[50](index=50&type=chunk) [Staff Costs](index=25&type=section&id=Staff%20Costs) Staff costs decreased during the period - For the six months ended June 30, 2025, the Group's staff costs decreased by approximately **HK$1.4 million** to approximately **HK$9.4 million** (2024: approximately **HK$10.8 million**)[51](index=51&type=chunk) [Depreciation](index=25&type=section&id=Depreciation) Depreciation expense slightly increased during the period - The Group's depreciation for the six months ended June 30, 2025, increased by approximately **HK$82 thousand**, from **HK$1.1 million** in the same period last year to approximately **HK$1.2 million**, an increase of approximately **7.2%**[52](index=52&type=chunk) [Other Operating Expenses](index=25&type=section&id=Other%20Operating%20Expenses) The Group's total other operating expenses decreased, mainly due to reduced legal and professional fees, service costs, and net exchange gains - The Group's other operating expenses for the six months ended June 30, 2025, were approximately **HK$4.8 million**, a decrease of approximately **10.5%** compared to the same period last year[53](index=53&type=chunk) - The decrease was mainly attributable to a reduction of approximately **HK$0.1 million** in legal and professional fees, a reduction of approximately **HK$0.2 million** in service costs, and a reduction of approximately **HK$0.3 million** in exchange losses[53](index=53&type=chunk) [Income Tax Expense](index=25&type=section&id=Income%20Tax%20Expense) Income tax expense for the period was nil, mainly due to tax losses incurred by Chinese subsidiaries - The Group's income tax expense for the six months ended June 30, 2025, was approximately **nil HKD**, a decrease of approximately **100%** compared to the same period last year[54](index=54&type=chunk) - This decrease was due to the Chinese subsidiary incurring tax losses during the period, hence no provision was made for the period[23](index=23&type=chunk)[54](index=54&type=chunk) [Profit for the Period Attributable to Owners of the Company](index=26&type=section&id=Profit%20for%20the%20Period%20Attributable%20to%20Owners%20of%20the%20Company) Profit attributable to owners of the Company turned from a loss to a profit compared to the same period last year, driven primarily by an increase in other income - Profit for the period attributable to owners of the Company for the six months ended June 30, 2025, was approximately **HK$1.1 million**, an increase of approximately **182.0%** compared to a loss of approximately **HK$1.4 million** in the same period last year[56](index=56&type=chunk) - The increase was mainly attributable to an increase of approximately **HK$2.6 million** in other income for the six months ended June 30, 2025[56](index=56&type=chunk) [Liquidity and Financial Resources](index=26&type=section&id=Liquidity%20and%20Financial%20Resources) The Group's operations are primarily funded by cash generated from operations, net current assets remain stable, and there were no interest-bearing borrowings at period-end - The Group's operations are primarily funded by cash generated from operating activities[57](index=57&type=chunk) - As of June 30, 2025, the Group recorded net current assets of approximately **HK$37.5 million** (December 31, 2024: approximately **HK$37.4 million**)[57](index=57&type=chunk) - As of June 30, 2025, the Group had no interest-bearing or non-interest-bearing borrowings[57](index=57&type=chunk) [Key Risks and Uncertainties](index=26&type=section&id=Key%20Risks%20and%20Uncertainties) The Group faces key risks including failure of R&D to keep pace with technological advancements, trade receivables recovery risk, and financial risks such as credit, liquidity, and interest rate risks - The Group's research and development may not keep pace with technological advancements essential for maintaining its competitiveness[58](index=58&type=chunk) - The Group may not be able to recover its trade receivables in a timely manner and may have to record impairment losses[58](index=58&type=chunk) - The Group's business faces various financial risks, including credit risk, liquidity risk, and interest rate risk[58](index=58&type=chunk) [Capital Structure](index=27&type=section&id=Capital%20Structure) The Company's capital structure has remained unchanged since its GEM listing in 2019, primarily consisting of issued share capital and reserves - The shares were listed on GEM of the Stock Exchange on February 19, 2019; since then, the Company's capital structure has remained unchanged[59](index=59&type=chunk) - As of June 30, 2025, the Company's capital structure primarily comprised issued share capital and reserves[59](index=59&type=chunk) [Purchase, Sale or Redemption of Securities by the Company and its Subsidiaries](index=27&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Securities%20by%20the%20Company%20and%20its%20Subsidiaries) During the period, neither the Company nor its subsidiaries engaged in any purchase, sale, or redemption of securities - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's securities, convertible securities, options, warrants, or similar rights[60](index=60&type=chunk) [Issue of Securities or Sale of Treasury Shares](index=27&type=section&id=Issue%20of%20Securities%20or%20Sale%20of%20Treasury%20Shares) During the period, neither the Company nor its subsidiaries issued any equity securities or sold any treasury shares for cash - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries issued any equity securities, convertible securities, options, warrants, or similar rights of the Company, nor sold any treasury shares for cash[61](index=61&type=chunk) [Pledged Assets](index=27&type=section&id=Pledged%20Assets) As of the reporting period end, the Group had no pledged assets - As of June 30, 2025, the Group had no pledged assets (December 31, 2024: nil HKD)[62](index=62&type=chunk) [Material Acquisitions and Disposals](index=27&type=section&id=Material%20Acquisitions%20and%20Disposals) During the period, the Group did not undertake any material investments, acquisitions, or disposals - For the six months ended June 30, 2025, the Group did not make any material investments or material acquisitions and disposals of subsidiaries[63](index=63&type=chunk) [Capital Commitments and Contingent Liabilities](index=27&type=section&id=Capital%20Commitments%20and%20Contingent%20Liabilities) As of the reporting period end, the Group had no significant capital commitments or contingent liabilities - As of June 30, 2025, the Group had no significant capital commitments or contingent liabilities[64](index=64&type=chunk) [Exchange Rate Fluctuation Risk](index=27&type=section&id=Exchange%20Rate%20Fluctuation%20Risk) The Group's revenue and costs are primarily denominated in HKD, with some costs in RMB; there is currently no foreign currency hedging policy, but the Board continuously monitors related risks - The Group's revenue and costs are primarily denominated in HKD, with some costs denominated in RMB[65](index=65&type=chunk) - The Group currently has no foreign currency hedging policy; however, the Directors continuously monitor the relevant foreign exchange risks and will consider hedging the Group's foreign currency risks when necessary[65](index=65&type=chunk) [Credit Risk](index=28&type=section&id=Credit%20Risk) The Group's credit risk primarily arises from cash and receivables, managed through cooperation with recognised banks and strict credit policies, with no significant credit risk expected - The Group's credit risk primarily arises from cash and cash equivalents and receivables and contract assets from contracts with customers[67](index=67&type=chunk) - Management expects no significant credit risk as all bank balances are deposited with recognised banks in Hong Kong, coupled with the Group's comprehensive credit policy[67](index=67&type=chunk) [Liquidity Risk](index=28&type=section&id=Liquidity%20Risk) The Group ensures sufficient cash reserves to meet short-term and long-term liquidity needs by continuously monitoring funding and anticipated liquidity requirements - The Group's policy is to continuously monitor funding and anticipated liquidity requirements to ensure sufficient cash reserves to meet the Group's short-term and long-term liquidity needs[68](index=68&type=chunk) [Interest Rate Risk](index=28&type=section&id=Interest%20Rate%20Risk) The Group's interest rate risk primarily stems from bank deposits, but with no other interest-bearing assets and liabilities, its income and operating cash flows are not significantly affected by floating interest rate changes - The Group's interest rate risk arises from its bank deposits, which bear floating interest rates depending on market conditions[69](index=69&type=chunk) - The Group has no significant interest rate risk, and its income and operating cash flows are largely unaffected by changes in floating interest rates[69](index=69&type=chunk) [Human Resources and Remuneration Policy](index=28&type=section&id=Human%20Resources%20and%20Remuneration%20Policy) The Group has 51 full-time employees, with remuneration policies based on qualifications, performance, and market conditions, and provides training; total employee benefits expense for the period was approximately HK$7.4 million - As of June 30, 2025, the Group had **51** (2024: **55**) full-time employees[70](index=70&type=chunk) - The remuneration of the Group's employees is determined based on a range of factors, including their qualifications, functions, experience, job performance, and local market conditions[70](index=70&type=chunk) - For the six months ended June 30, 2025, the Group's total employee benefits expense (including salaries, bonuses, allowances, and contributions to retirement benefit schemes) was stable at approximately **HK$7.4 million** (2024: approximately **HK$10.8 million**)[70](index=70&type=chunk) [Changes in Board Members](index=28&type=section&id=Changes%20in%20Board%20Members) During the period, Ms. Chan Ka Yan was appointed as an Executive Director of the Company - Ms. Chan Ka Yan was appointed as an Executive Director of the Company with effect from May 13, 2024[71](index=71&type=chunk) [Material Investments and Plans for Material Investments or Capital Assets](index=29&type=section&id=Material%20Investments%20and%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) Except as disclosed in this report, the Group has no other material investments or capital asset plans - Save as disclosed herein, the Group has no material investments and no other future plans for material investments or capital assets[72](index=72&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures](index=29&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures) This section discloses the long positions of Directors and chief executives in the Company's shares as of June 30, 2025 Directors' and Chief Executive's Long Positions in Shares (As of June 30, 2025) | Name of Director | Capacity and Nature of Interest | Number of Shares Held | Approximate Percentage of Issued Shares | | :--- | :--- | :--- | :--- | | Mr. Chan Lap Tak | Interest of spouse | 2,291,420 | 0.19% | | Ms. Chan Ka Yan | Beneficial interest | 2,240,000 | 0.18% | | Mr. Lo Chi Ho | Beneficial interest | 12,210,010 | 0.99% | - Mr. Lo Chi Ho's interests include **1,190,000 award shares** vested in Mr. Lo on January 9, 2023, and **210,000 award shares** granted on January 20, 2022, and vested on December 31, 2023[74](index=74&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares, Underlying Shares and Debentures](index=30&type=section&id=Substantial%20Shareholders'%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures) This section lists the long positions of substantial shareholders (excluding Directors and chief executives) in the Company's shares as of June 30, 2025 Substantial Shareholders' Long Positions in Shares (As of June 30, 2025) | Name/Company Name | Capacity and Nature of Interest | Number of Shares Held | Approximate Percentage of Issued Shares | | :--- | :--- | :--- | :--- | | Quantsmile (BVI) Limited | Beneficial interest | 411,902,870 | 33.49% | | As Eagle Corporate Advisory Limited | Beneficial interest/Interest in controlled corporation | 714,676,910 | 58.10% | | Good Steward Foundation | Interest in controlled corporation | 714,676,910 | 58.10% | | Financial Data Technologies Limited | Beneficial interest | 98,040,000 | 7.97% | | Mr. Nie Fanqi | Interest in controlled corporation | 98,040,000 | 7.97% | | Bank of Communications Trustee Limited | Trustee | 82,905,000 | 6.74% | - As Eagle Corporate Advisory Limited and Good Steward Foundation indirectly hold a significant number of shares through control relationships, with Good Steward Foundation holding approximately **95.24%** interest in As Eagle Corporate Advisory[76](index=76&type=chunk) - Bank of Communications Trustee Limited is the trustee appointed by the Company for the share award scheme[78](index=78&type=chunk) [Share Option Scheme](index=31&type=section&id=Share%20Option%20Scheme) The Company adopted a share option scheme in 2019, but no share options have been granted since its adoption - The Company adopted a share option scheme on January 22, 2019[79](index=79&type=chunk) - No share options have been granted since the adoption date of the share option scheme[79](index=79&type=chunk) - As of June 30, 2025, the limit on the number of share options available for grant under the share option scheme was **80,100,000**[79](index=79&type=chunk) [Share Award Scheme](index=31&type=section&id=Share%20Award%20Scheme) The Company adopted a share award scheme in 2019, with a trustee holding shares on behalf of participants; as of June 30, 2025, the trustee held 82,905,000 shares, and 5,040,000 award shares were granted to selected individuals during the period - On August 12, 2019, the Company adopted a share award scheme[80](index=80&type=chunk) - As of June 30, 2025, the trustee held **82,905,000 shares** under the share award scheme[80](index=80&type=chunk) - On May 13, 2024, the Board resolved to grant a total of **5,040,000 award shares** to **13 selected individuals** under the share award scheme, to be vested in two tranches[82](index=82&type=chunk) [Competing Interests and Non-Competition Undertaking](index=33&type=section&id=Competing%20Interests%20and%20Non-Competition%20Undertaking) Each controlling shareholder has entered into a non-competition undertaking and confirmed that as of the reporting date, neither the Directors nor controlling shareholders have any interests that compete with the Group's business - Each controlling shareholder entered into a non-competition undertaking with the Company as beneficiary on January 22, 2019[83](index=83&type=chunk) - For the six months ended June 30, 2025, and up to the date of this report, none of the Directors or controlling shareholders or their close associates had any interests in any business that competes or may compete, directly or indirectly, with the Group's business[83](index=83&type=chunk) [Corporate Governance Practices](index=33&type=section&id=Corporate%20Governance%20Practices) The Company is committed to high standards of corporate governance and has adopted and complied with the Corporate Governance Code set out in Appendix C1 of the GEM Listing Rules - The Company is committed to achieving high standards of corporate governance[84](index=84&type=chunk) - For the six months ended June 30, 2025, the Company adopted and complied with the principles and code provisions of the Corporate Governance Code set out in Appendix C1 of the GEM Listing Rules[84](index=84&type=chunk) [Directors' Securities Transactions](index=33&type=section&id=Directors'%20Securities%20Transactions) The Company has adopted a code of conduct for Directors' securities transactions and confirmed that all Directors complied with it during the reporting period - The Company has adopted the required standard of dealings set out in Rules 5.48 to 5.67 of the GEM Listing Rules as the code of conduct for Directors' securities transactions[85](index=85&type=chunk) - Following specific enquiries made to all Directors, all Directors confirmed that they had complied with the required standard of dealings for the six months ended June 30, 2025, and no incidents of non-compliance with the required standard of dealings were reportable[85](index=85&type=chunk) [Events After the Reporting Period](index=34&type=section&id=Events%20After%20the%20Reporting%20Period) No significant events occurred for the Company or the Group from the end of the reporting period to the date of this report - No significant events occurred for the Company or the Group after June 30, 2025, and up to the date of this report[87](index=87&type=chunk) [Audit Committee](index=34&type=section&id=Audit%20Committee) The Audit Committee has reviewed this interim report and financial results, confirming compliance with applicable accounting standards and listing rules - The Company's Audit Committee has reviewed this report and the Group's unaudited condensed consolidated financial results for the six months ended June 30, 2025[88](index=88&type=chunk) - The Committee is of the opinion that these results were prepared in accordance with applicable accounting standards, the GEM Listing Rules, and other applicable legal requirements, and adequate disclosures have been made[88](index=88&type=chunk) [Dividends](index=34&type=section&id=Dividends) The Board of Directors does not recommend any dividend for this interim period - The Directors do not recommend the payment of any dividend for the six months ended June 30, 2025 (2024: nil HKD)[89](index=89&type=chunk) [Definitions](index=35&type=section&id=Definitions) [Definitions of Terms](index=35&type=section&id=Definitions%20of%20Terms) This section provides definitions for key terms and abbreviations used in the report to ensure consistent understanding of the content - Lists key terms and their definitions used in the report, such as "Board", "China", "Company", "Controlling Shareholder", "GEM Listing Rules", "Group", "HKD", "Shares", "Share Award Scheme", "Share Option Scheme", "Stock Exchange", etc[90](index=90&type=chunk)[92](index=92&type=chunk)

[Chairman's Report](index=4&type=section&id=%E8%91%A3%E4%BA%8B%E9%95%B7%E5%A0%B1%E5%91%8A%E6%9B%B8) [Overall Performance](index=5&type=section&id=%E6%95%B4%E9%AB%94%E6%A5%AD%E7%B8%BE) The company achieved steady business growth in the first half, with operating revenue exceeding RMB 200 billion, pre-tax profit reaching RMB 17.8 billion, and strategic emerging industries driving high-quality development, alongside a 14.5% year-on-year increase in interim dividend per share to RMB 0.2841 Overall Performance Metrics | Metric | H1 2025 (RMB billion) | Y-o-Y Growth | | :--- | :--- | :--- | | Operating Revenue | 200.0+ | 1.5% | | Pre-tax Profit | 17.8 | 5.1% | | International Business Revenue | 6.8 | 11% | | Interim Dividend (per share) | 0.2841 RMB | 14.5% | - Strategic emerging industries' revenue share increased to **86%**, becoming a new driver for the company's high-quality development[10](index=10&type=chunk) [Connectivity Business Steady Growth](index=5&type=section&id=%E8%81%AF%E7%B6%B2%E9%80%9A%E4%BF%A1%E7%A9%A9%E4%B8%AD%E6%9C%89%E9%80%B2) The connectivity business steadily improved operating efficiency and market position, with over 1.2 billion connected users, more than 11 million net additions in mobile and broadband users, over 60 million net additions in IoT connections, and a converged business penetration rate exceeding 77% - Connected user base exceeded **1.2 billion**, with net additions of over **11 million** mobile and broadband users, reaching a total of **480 million**, a new high for the same period in recent years[11](index=11&type=chunk) - IoT connections increased by over **60 million**, totaling **690 million**, including **86 million** vehicle IoT connections, further solidifying its leading position[11](index=11&type=chunk) - Converged business penetration rate exceeded **77%**, with average revenue per user surpassing **RMB 100**[11](index=11&type=chunk) - The Yuanjing large model empowered customer service, with intelligent service accounting for **84%** and problem resolution rate reaching **99%**[12](index=12&type=chunk) [Computing Network and Digital Intelligence Enhancement](index=6&type=section&id=%E7%AE%97%E7%B6%B2%E6%95%B8%E6%99%BA%E6%8F%90%E8%83%BD%E5%8D%87%E7%B4%9A) The computing network and digital intelligence business achieved both quantitative and qualitative growth, with Unicom Cloud revenue reaching RMB 37.6 billion, data center revenue growing by 9.4% year-on-year, AIDC contract value increasing by 60% year-on-year, and the development of a multi-modal Yuanjing large model driving large-scale commercial AI applications, alongside 5G private network revenue growth of 60% Computing Network and Digital Intelligence Metrics | Metric | H1 2025 (RMB billion) | Y-o-Y Growth | | :--- | :--- | :--- | | Unicom Cloud Revenue | 37.6 | - | | Data Center Revenue | 14.4 | 9.4% | | AIDC Contract Value | - | 60% | | 5G Private Network Revenue | - | 60% | - Developed a multi-modal Yuanjing large model and launched the "Yuanjing Wanwu" intelligent agent development platform, achieving large-scale commercial application of AI in several key areas[14](index=14&type=chunk) - Cumulatively built **7,500 5G factories**, supporting the high-end, intelligent, and green development of the manufacturing industry[14](index=14&type=chunk) [Accelerating International Market Expansion](index=7&type=section&id=%E5%8A%A0%E5%BF%AB%E6%8B%93%E5%B1%95%E5%9C%8B%E9%9A%9B%E5%B8%82%E5%A0%B4) The company refreshed its international brand UniCom, partnered with over 600 global operators and 1,000 industry partners, established 5 new overseas intelligent computing centers, and developed multiple benchmark projects, continuously enhancing its global development capabilities - Refreshed the international brand UniCom, collaborating with over **600** global operators and **1,000** industry partners, integrating into the global innovation network[15](index=15&type=chunk) - Established **5** new overseas intelligent computing centers, further improving the international intelligent computing layout[15](index=15&type=chunk) - Developed multiple benchmark projects, including intelligent manufacturing in ASEAN, intelligent warehousing in the Middle East, smart mines in Africa, and smart ports in Europe[15](index=15&type=chunk) [Network Investment Quality and Efficiency Improvement](index=7&type=section&id=%E7%B6%B2%E7%B5%A1%E6%8A%95%E8%B3%87%E6%8F%90%E8%B3%AA%E5%A2%9E%E6%95%88) The company's capital expenditure decreased by 15% year-on-year in the first half, with annualized OPEX savings of nearly RMB 1 billion, data center resource utilization exceeding 70%, and the advancement of mobile networks from 5G to 5G-A and broadband networks from gigabit to 10-gigabit, reaching a total intelligent computing scale of 30 EFLOPS Network Investment Metrics | Metric | H1 2025 (RMB billion) | Y-o-Y Change | | :--- | :--- | :--- | | Capital Expenditure | 20.2 | Decreased by 15% | | Annualized OPEX Savings | Nearly 1.0 | - | | Data Center Resource Utilization Rate | Over 70% | - | - Mobile network population coverage exceeded **99%**, with 5G-A commercial deployment in over **330** cities; broadband network covered **570 million** households, and 10-gigabit optical network pilots reached **106** cities[17](index=17&type=chunk) - Total intelligent computing scale reached **30 EFLOPS**, with data center capacity reserves reaching **2,650 MW**[17](index=17&type=chunk) [Continuous Strengthening of Scientific and Technological Innovation](index=8&type=section&id=%E7%A7%91%E5%89%B5%E5%AF%A6%E5%8A%9B%E4%B8%8D%E6%96%B7%E5%A2%9E%E5%BC%B7) The company increased R&D investment, with R&D expenses growing by 16% year-on-year, focusing on key technologies such as next-generation internet, big data, and artificial intelligence, while strengthening frontier layouts in 6G and low-altitude intelligent networks, with over 40% of employees being scientific and technological innovation talents - R&D expenses increased by **16%** year-on-year, leading to more landmark achievements and selection as an outstanding state-owned enterprise in scientific and technological innovation[18](index=18&type=chunk) - Focused on key technologies such as next-generation internet, big data, artificial intelligence, and cybersecurity, while strengthening frontier layouts in 6G, low-altitude intelligent networks, satellite internet, embodied AI, and quantum technology[18](index=18&type=chunk) - Scientific and technological innovation talents accounted for over **40%**, reaching a scale of **47,000** people, and established a high-level scientific and technological talent team of over a hundred individuals[18](index=18&type=chunk) [Actively Fulfilling Corporate ESG Responsibilities](index=8&type=section&id=%E7%A9%8D%E6%A5%B5%E5%B1%A5%E8%A1%8C%E4%BC%81%E6%A5%ADESG%E8%B2%AC%E4%BB%BB) The company released the "China Unicom Carbon Exploration Green Action Plan," operates 22 national-level green data centers, helps bridge the digital divide, and received multiple international honors in corporate governance, including ranking 264th in Forbes Global 2000 - Released the "China Unicom Carbon Exploration Green Action Plan," deepening network energy conservation and operating **22** national-level green data centers[19](index=19&type=chunk) - Helped bridge the digital divide, with caring products for elderly and disabled groups benefiting over **5 million** users[19](index=19&type=chunk) - Received multiple accolades, including ranking **264th** in Forbes Global 2000 and being recognized as the "Most Respected Telecommunications Enterprise" for ten consecutive years[19](index=19&type=chunk) [Future Outlook](index=9&type=section&id=%E6%9C%AA%E4%BE%86%E5%B1%95%E6%9C%9B) 2025 is a critical year for AI's transition from theory to practice, and the company will continue to enhance management, operations, and service levels, with expected fixed asset investment of approximately RMB 55 billion, while deeply implementing a converged innovation strategy, deepening the "three convergences" of computing network, digital intelligence, and digital-real, and advancing the "three new directions" for networks, technology, and services - **2025** is a critical year for AI's transition from theory to practice, and the company will co-create a new integrated ecosystem of AI infrastructure, AI technology, and AI industry with partners[20](index=20&type=chunk) - Expected fixed asset investment of approximately **RMB 55 billion**, with confidence to achieve annual targets with high quality[20](index=20&type=chunk) - Deeply implemented a converged innovation strategy, continuously deepening the "three convergences" of computing network, digital intelligence, and digital-real, and persistently advancing the "three new directions" for networks, technology, and services[20](index=20&type=

毛戈平化妝品股份有限公司 Mao Geping Cosmetics Co., Ltd. （於中華人民共和國註冊成立的股份有限公司） 股份代號：1318 中期報告 2025 目 錄 | 公司資料 | 2 | | --- | --- | | 管理層討論及分析 | 4 | | 企業管治及其他事項 | 31 | | 獨立審閱報告 | 42 | | 中期簡明綜合損益及其他全面收益表 | 43 | | 中期簡明綜合財務狀況表 | 44 | | 中期簡明綜合權益變動表 | 46 | | 中期簡明綜合現金流量表 | 47 | | 中期簡明綜合財務資料附註 | 49 | | 釋義 | 62 | 顧炯先生 黃輝先生 李海龍先生 審計委員會 顧炯先生 （主席） 黃輝先生 李海龍先生 提名委員會 毛戈平先生 毛霓萍女士 顧炯先生 黃輝先生 李海龍先生 （主席） 公司資料 董事會 執行董事 毛戈平先生 （董事長） 汪立群女士 毛霓萍女士 毛慧萍女士 汪立華先生 宋虹佺女士 獨立非執行董事 薪酬委員會 毛戈平先生 毛慧萍女士 顧炯先生 黃輝先生 李海龍先生 （主席） 聯席公司秘書 董樂勤先生 張瀟女士 （香港公司治理公會及 英國特許公司 ...

[Corporate Information](index=3&type=section&id=Corporate%20Information) This section details the company's board composition, registered offices, and key financial service providers [Board of Directors and Committees](index=3&type=section&id=Board%20of%20Directors%20and%20Committees) The board includes executive and independent non-executive directors, with recent changes in audit and nomination committee chairmanships - Executive Directors include **Mr. Zhu Min (Chairman)** and **Ms. Ye Xinyu**[7](index=7&type=chunk) - Independent Non-Executive Directors include **Mr. Li Kam Wing** (appointed June 25, 2025), **Mr. Li Yisheng**, and **Mr. Cao Ke**[7](index=7&type=chunk) - **Mr. Tang Yiu On** resigned as Independent Non-Executive Director, Chairman of the Audit Committee, member of the Remuneration Committee, and Chairman of the Nomination Committee on August 15, 2025[7](index=7&type=chunk)[8](index=8&type=chunk)[10](index=10&type=chunk) - **Mr. Li Kam Wing** was appointed Chairman of the Audit Committee and Chairman of the Nomination Committee on August 15, 2025[7](index=7&type=chunk)[10](index=10&type=chunk) [Registered and Principal Offices](index=4&type=section&id=Registered%20and%20Principal%20Offices) The company maintains registered offices in the Cayman Islands, principal offices in Hong Kong, and a main operating location in Shenzhen, China - Registered office is located at Cricket Square, Cayman Islands[10](index=10&type=chunk) - Head office and principal place of business in Hong Kong are at Room 1002, Capital Centre, 151 Gloucester Road, Wan Chai, Hong Kong[10](index=10&type=chunk) - Principal place of business in China is at Room 801, 8/F, Block B, Xinghua Building, 2018 Shennan Middle Road, Futian District, Shenzhen[10](index=10&type=chunk) [Share Registrar, Auditor, Legal Adviser & Principal Bankers](index=5&type=section&id=Share%20Registrar%2C%20Auditor%2C%20Legal%20Adviser%20%26%20Principal%20Bankers) Key service providers include Codan Trust Company (Cayman) Limited as Cayman share registrar, Tricor Investor Services Limited as Hong Kong share registrar, Tianjian International CPA Limited as auditor, and several major banks - The principal share registrar in the Cayman Islands is **Codan Trust Company (Cayman) Limited**[11](index=11&type=chunk) - The Hong Kong branch share registrar is **Tricor Investor Services Limited**[13](index=13&type=chunk) - The auditor is **Tianjian International CPA Limited**[13](index=13&type=chunk) - Principal bankers include **The Hongkong and Shanghai Banking Corporation Limited**, **CITIC Bank International Limited**, **Chong Hing Bank Limited**, and **China Construction Bank (Asia) Corporation Limited**[13](index=13&type=chunk) [Unaudited Interim Condensed Consolidated Financial Statements](index=6&type=section&id=Unaudited%20Interim%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited interim condensed consolidated financial statements, including statements of profit or loss, financial position, equity changes, and cash flows [Unaudited Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=6&type=section&id=Unaudited%20Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Revenue decreased to RMB 28,029 thousand, with loss for the period expanding to RMB 31,003 thousand and basic and diluted loss per share at RMB 0.63 cents Profit or Loss and Other Comprehensive Income Overview | Indicator | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands, Restated) | | :--- | :--- | :--- | | Revenue | 28,029 | 44,505 | | Gross profit | 10,673 | 9,117 | | Loss before tax | (31,003) | (27,411) | | Loss for the period | (31,003) | (27,411) | | Total comprehensive expense for the period | (31,512) | (25,835) | | Basic and diluted loss per share (RMB cents) | (0.63 cents) | (0.55 cents) | - **Revenue decreased by 37%** year-on-year, while **loss for the period expanded by 13.1%** year-on-year[15](index=15&type=chunk) [Unaudited Interim Condensed Consolidated Statement of Financial Position](index=8&type=section&id=Unaudited%20Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Net current liabilities turned negative at RMB (32,228) thousand, a significant shift from net current assets, with total net assets decreasing to RMB 50,320 thousand Financial Position Overview | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Non-current assets | 82,548 | 86,956 | | Current assets | 233,126 | 306,988 | | Current liabilities | 265,354 | 126,504 | | Net current (liabilities)/assets | (32,228) | 180,484 | | Total assets less current liabilities | 50,320 | 267,440 | | Net assets | 50,320 | 81,825 | - **Net current assets** shifted from **RMB 180,484 thousand** at the end of 2024 to **net current liabilities of RMB (32,228) thousand** as of June 30, 2025, primarily due to a significant increase in promissory notes[19](index=19&type=chunk) - **Promissory notes** increased significantly from **RMB 2,984 thousand (current)** at the end of 2024 to **RMB 176,873 thousand (current)** as of June 30, 2025, leading to a substantial rise in current liabilities[19](index=19&type=chunk) [Unaudited Interim Condensed Consolidated Statement of Changes in Equity](index=10&type=section&id=Unaudited%20Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) Total equity decreased from RMB 81,825 thousand to RMB 50,320 thousand, mainly driven by the RMB 31,003 thousand loss for the period and exchange differences Equity Movement Overview | Indicator | June 30, 2025 (RMB thousands) | January 1, 2025 (RMB thousands) | | :--- | :--- | :--- | | Share capital | 346,736 | 346,736 | | Reserves | (296,020) | (264,466) | | Equity attributable to owners of the Company | 50,716 | 82,270 | | Non-controlling interests | (396) | (445) | | Total equity | 50,320 | 81,825 | - **Loss for the period of RMB 31,003 thousand** led to a reduction in total equity[22](index=22&type=chunk) - Other comprehensive expenses of **RMB 509 thousand** resulted from exchange differences on translating foreign operations[22](index=22&type=chunk) [Unaudited Interim Condensed Consolidated Statement of Cash Flows](index=11&type=section&id=Unaudited%20Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) Net cash used in operating activities was RMB 26,067 thousand, with cash and cash equivalents decreasing to RMB 23,248 thousand by period-end Cash Flow Overview | Activity Type | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Net cash used in operating activities | 26,067 | 21,511 | | Net cash used in investing activities | 107 | (4,510) | | Net cash used in financing activities | (28,685) | 1,944 | | Net decrease in cash and cash equivalents | (2,511) | 18,945 | | Cash and cash equivalents at end of period | 23,248 | 51,557 | - **Net decrease in cash and cash equivalents** was **RMB 2,511 thousand**, compared to an increase of **RMB 18,945 thousand** in the prior period[23](index=23&type=chunk) - **Net cash used in financing activities** shifted from a net inflow in the prior period to a net outflow, primarily due to promissory note repayments[23](index=23&type=chunk) [Notes to the Unaudited Interim Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the unaudited interim condensed consolidated financial statements, covering accounting policies, adjustments, and specific financial items [Basis of Preparation and Principal Accounting Policies](index=12&type=section&id=Basis%20of%20Preparation%20and%20Principal%20Accounting%20Policies) The financial statements are prepared under HKAS 34 and Listing Rules Appendix 16 on a historical cost basis, with new HFRSs adopted having no significant impact - Financial statements are prepared in accordance with **Hong Kong Accounting Standard 34 'Interim Financial Reporting'** and **Appendix 16 of the Listing Rules**[24](index=24&type=chunk)[28](index=28&type=chunk) - Statements are prepared on a **historical cost basis**, except for financial instruments measured at fair value[25](index=25&type=chunk)[29](index=29&type=chunk) - All new and revised Hong Kong Financial Reporting Standards effective January 1, 2025, have been adopted, with **no significant impact** on the Group's consolidated financial statements[27](index=27&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) [Prior Period Adjustments](index=13&type=section&id=Prior%20Period%20Adjustments) Prior period adjustments were made for exchange difference allocation and promissory note amortization, leading to restatement of 2024 comparative figures for finance costs and loss per share - An **error in the allocation of exchange differences** for non-controlling interests was identified, requiring revision of the allocation between owners of the Company and non-controlling interests[33](index=33&type=chunk) - Promissory Note (PN) amortized cost was previously incorrect, not reflecting an adjustment of the annual interest rate from interest-free to **4%**, with the effective interest rate corrected from **16.78% to 23.72%**[33](index=33&type=chunk) Impact of Prior Period Adjustments on the Statement of Profit or Loss for the Six Months Ended June 30, 2024 | Indicator | Previously Reported (RMB thousands) | Prior Period Adjustment (1) (RMB thousands) | Prior Period Adjustment (2) (RMB thousands) | Restated (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Finance costs | (17,050) | – | (4,608) | (21,658) | | Loss before tax | (22,803) | – | (4,608) | (27,411) | | Loss for the period | (22,803) | – | (4,608) | (27,411) | | Exchange differences on translating foreign operations | 1,683 | – | (107) | 1,576 | | Total comprehensive expense for the period | (21,120) | – | (4,715) | (25,835) | | Basic and diluted loss per share (RMB cents) | (0.45 cents) | – | (0.1 cents) | (0.55 cents) | [Revenue Analysis](index=15&type=section&id=Revenue%20Analysis) Total revenue decreased to RMB 28,029 thousand, driven by a significant reduction in internet business revenue, partially offset by a slight increase in money lending revenue Revenue Source Analysis | Revenue Source | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue from internet business | 18,498 | 35,568 | | Revenue from money lending business | 9,531 | 8,937 | | **Total revenue** | **28,029** | **44,505** | - **Internet business revenue decreased by approximately 48%** year-on-year, while **money lending business revenue increased by approximately 6.6%** year-on-year[38](index=38&type=chunk) [Operating Segments](index=15&type=section&id=Operating%20Segments) The Group operates in money lending and internet business segments, with e-commerce and internet education merged into the latter, showing profit in money lending and loss in internet business - The Group's operating activities are divided into two segments: **money lending business** and **internet business**[40](index=40&type=chunk)[41](index=41&type=chunk) - The e-commerce and internet education services segments have been **merged into 'internet business'** to reflect the current internal reporting structure[42](index=42&type=chunk)[43](index=43&type=chunk) Revenue and Results by Operating Segment (Six Months Ended June 30, 2025) | Indicator | Money Lending Business (RMB thousands) | Internet Business (RMB thousands) | Consolidated (RMB thousands) | | :--- | :--- | :--- | :--- | | Revenue | 9,531 | 18,498 | 28,029 | | Segment (loss)/profit | 5,212 | (6,124) | (912) | | Loss before tax | – | – | (31,003) | Revenue and Results by Operating Segment (Six Months Ended June 30, 2024) | Indicator | Money Lending Business (RMB thousands) | Internet Business (RMB thousands) | Consolidated (RMB thousands, Restated) | | :--- | :--- | :--- | :--- | | Revenue | 8,937 | 35,568 | 44,505 | | Segment (loss)/profit | 8,345 | (3,967) | 4,378 | | Loss before tax | – | – | (27,411) | [Net Impairment Loss Recognised/(Reversed)](index=18&type=section&id=Net%20Impairment%20Loss%20Recognised%2F%28Reversed%29) The Group recognized a net impairment loss of RMB 2,077 thousand, a shift from a net reversal in the prior period, mainly due to increased impairment on other receivables Net Impairment Loss Recognised/(Reversed) | Item | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade receivables | (1,512) | (53) | | Loan receivables | (195) | (1,949) | | Other receivables | 3,784 | – | | **Total** | **2,077** | **(2,002)** | - **Net impairment loss of RMB 2,077 thousand** was recognized in H1 2025, compared to a **net impairment reversal of RMB 2,002 thousand** in H1 2024[49](index=49&type=chunk) - **Other receivables** recognized an impairment loss of **RMB 3,784 thousand** in H1 2025, compared to zero in the prior period[49](index=49&type=chunk) [Finance Costs](index=18&type=section&id=Finance%20Costs) Finance costs decreased to RMB 14,624 thousand, primarily due to reduced interest on promissory notes compared to the restated prior period Finance Costs Analysis | Item | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands, Restated) | | :--- | :--- | :--- | | Interest on lease liabilities | 45 | 43 | | Interest on promissory notes | 14,492 | 21,476 | | Interest on borrowings | 87 | 139 | | **Total** | **14,624** | **21,658** | - **Finance costs decreased by approximately 32.5%** year-on-year, mainly attributable to a reduction in interest on promissory notes[51](index=51&type=chunk) [Taxation](index=19&type=section&id=Taxation) No Hong Kong profits tax was provided due to no taxable profits, while Chinese subsidiaries are taxed at 25%, and Hong Kong applies a two-tiered profits tax rate - No **Hong Kong profits tax** was provided as the Group generated no taxable profits in Hong Kong[54](index=54&type=chunk)[57](index=57&type=chunk) - Chinese subsidiaries are provided at a **corporate income tax rate of 25%**[58](index=58&type=chunk)[60](index=60&type=chunk) - Hong Kong's two-tiered profits tax rate: **8.25%** on the first **HKD 2 million** of profits, and **16.5%** on the remainder[55](index=55&type=chunk)[57](index=57&type=chunk) [Loss for the Period](index=20&type=section&id=Loss%20for%20the%20Period) Loss for the period was determined after deducting inventory costs, depreciation of property, plant and equipment, and right-of-use assets Key Deductions for Loss for the Period | Item | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Cost of inventories recognized as an expense | 16,274 | 34,447 | | Depreciation of property, plant and equipment | 246 | 281 | | Depreciation of right-of-use assets | 668 | 716 | - **Cost of inventories recognized as an expense decreased by approximately 52.7%** year-on-year, consistent with the reduction in internet business revenue[62](index=62&type=chunk) [Dividends](index=21&type=section&id=Dividends) The Board does not recommend an interim dividend for the period ended June 30, 2025, consistent with the prior year - The Board does not recommend the payment of an interim dividend for the current period (**2024 interim and final dividends: nil**)[63](index=63&type=chunk)[64](index=64&type=chunk) [Loss Per Share](index=21&type=section&id=Loss%20Per%20Share) Basic and diluted loss per share attributable to owners of the Company increased to RMB 0.63 cents, with diluted loss per share remaining equal to basic loss per share Loss Per Share Data | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 (Restated) | | :--- | :--- | :--- | | Loss for the period attributable to owners of the Company (RMB thousands) | (31,053) | (26,757) | | Weighted average number of ordinary shares (thousand shares) | 4,918,781 | 4,908,781 | | Basic and diluted loss per share | (RMB 0.63 cents) | (RMB 0.55 cents) | - **Diluted loss per share was the same as basic loss per share** because the exercise of outstanding share options would reduce the loss per share[68](index=68&type=chunk)[71](index=71&type=chunk) [Property, Plant and Equipment & Right-of-Use Assets](index=22&type=section&id=Property%2C%20Plant%20and%20Equipment%20%26%20Right-of-Use%20Assets) The Group neither purchased nor disposed of any property, plant and equipment, and recognized no new right-of-use assets during the period - During the six months ended June 30, 2025, the Group **neither purchased nor disposed of any property, plant and equipment**[69](index=69&type=chunk)[72](index=72&type=chunk) - No **new right-of-use assets** were recognized during the period ended June 30, 2025 (2024: **RMB 2,615,000**)[70](index=70&type=chunk)[73](index=73&type=chunk) [Trade Receivables](index=23&type=section&id=Trade%20Receivables) Total trade receivables significantly decreased to RMB 23,217 thousand, with a reversal of impairment loss of approximately RMB 1,512 thousand recognized Aging Analysis of Trade Receivables | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | 0-30 days | 8,473 | 7,208 | | 31-60 days | 3,192 | 17,966 | | 61-90 days | 3,707 | 12,929 | | 91-120 days | 1,349 | 566 | | 121-180 days | – | – | | 181 days to within one year | 6,496 | 11,618 | | **Total** | **23,217** | **50,287** | - **Total trade receivables decreased by approximately 53.8%** year-on-year[76](index=76&type=chunk) - A **reversal of impairment loss on trade receivables of approximately RMB 1,512 thousand** was recognized for the six months ended June 30, 2025 (2024: approximately **RMB 53 thousand**)[78](index=78&type=chunk)[80](index=80&type=chunk) [Loan Receivables](index=24&type=section&id=Loan%20Receivables) Total loan receivables decreased to RMB 168,703 thousand, with a reversal of impairment loss of approximately RMB 195 thousand recognized - Loan receivables primarily arise from the money lending business, bearing variable and fixed interest rates, and are secured by **property and personal guarantees**[79](index=79&type=chunk)[81](index=81&type=chunk) Analysis of Loan Receivables by Remaining Period | Remaining Period | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within three months | 82,960 | 122,208 | | Three months to one year | 81,011 | 80,367 | | Over one year (with repayment on demand clause) | 4,732 | 6,644 | | Over one year | – | 523 | | **Total** | **168,703** | **209,742** | - A **reversal of impairment loss on loan receivables of approximately RMB 195 thousand** was recognized for the six months ended June 30, 2025 (2024: approximately **RMB 1,949 thousand**)[83](index=83&type=chunk)[85](index=85&type=chunk) [Trade Payables](index=25&type=section&id=Trade%20Payables) Total trade payables decreased to RMB 40,300 thousand, with suppliers granting a credit period of within 30 days Aging Analysis of Trade Payables | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | 0-30 days | 7,933 | 7,167 | | 31-60 days | – | 17,064 | | 61-90 days | 6,733 | 12,084 | | Over 90 days | 25,634 | 31,748 | | **Total** | **40,300** | **68,063** | - **Total trade payables decreased by approximately 40.8%** year-on-year[87](index=87&type=chunk) - The credit period granted by suppliers to the Group is **within 30 days**[88](index=88&type=chunk) [Promissory Notes](index=26&type=section&id=Promissory%20Notes) Total promissory notes decreased to RMB 176,873 thousand, with a significant increase in current promissory notes and non-current notes becoming zero Promissory Notes Movement and Analysis | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | At January 1 | 188,360 | 198,256 | | Interest accrued and deducted | 14,492 | 36,868 | | Loss on modification of promissory notes | 1,045 | 6,876 | | Repayment | (12,996) | (39,257) | | Exchange adjustment | (6,197) | 8,345 | | **At June 30/December 31** | **176,873** | **188,360** | | **Analyzed as:** | | | | Current | 176,873 | 2,984 | | Non-current | – | 185,376 | - **Current promissory notes** significantly increased from **RMB 2,984 thousand** as of December 31, 2024, to **RMB 176,873 thousand** as of June 30, 2025, while **non-current promissory notes became zero**[90](index=90&type=chunk) - Accrued interest on promissory notes was **RMB 14,492 thousand**[90](index=90&type=chunk) [Share Capital](index=27&type=section&id=Share%20Capital) Authorized share capital is 19,066,667 thousand shares at HKD 0.10 par value, with issued and fully paid capital of 4,081,448 thousand shares, equivalent to RMB 346,736 thousand Share Capital Overview | Item | Number of Shares (thousand shares) | Amount (HKD thousands) | | :--- | :--- | :--- | | Authorized share capital (as at June 30, 2025) | 19,066,667 | 1,906,667 | | Issued and fully paid share capital (as at June 30, 2025) | 4,081,448 | 408,145 | | As shown in the condensed consolidated financial statements (RMB thousands equivalent) | – | 346,736 | - The **share capital structure remained stable** in H1 2025, with no new issuances or redemptions[91](index=91&type=chunk) [Related Party Transactions](index=28&type=section&id=Related%20Party%20Transactions) The Group conducted transactions with key management personnel and related parties, with total compensation of RMB 857 thousand and ongoing loan receivables with an executive director Key Management Personnel Compensation | Item | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Emoluments of directors and other key management members | 849 | 1,136 | | Retirement benefit scheme contributions | 8 | 7 | | **Total** | **857** | **1,143** | Related Party Transactions | Name of Related Party | Relationship | Nature of Transaction/Balance | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Lü Yongchao | Executive Director (resigned) | Interest received on loans | 28 | 63 | | | | Loan receivables | – | 2,692 | | Ye Xinyu | Executive Director | Interest received on loans | 81 | 79 | | | | Loan receivables | 2,644 | 2,647 | - **Mr. Lü Yongchao's loan receivables were fully repaid** in early 2025[98](index=98&type=chunk) [Event After the Reporting Period](index=30&type=section&id=Event%20After%20the%20Reporting%20Period) Post-reporting period, AIA Credit Limited granted a HKD 5 million loan, and two promissory notes totaling HKD 197,416,000 had their maturity dates extended - On July 11, 2025, subsidiary **AIA Credit Limited granted a loan with a principal amount of HKD 5 million**[99](index=99&type=chunk)[102](index=102&type=chunk) - The maturity dates of two promissory notes with principal amounts of **HKD 44,208,000** and **HKD 153,208,000** were extended from January 1, 2026, to **January 1, 2027**[101](index=101&type=chunk)[103](index=103&type=chunk) [Management Discussion and Analysis](index=31&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's discussion and analysis of the Group's performance, market conditions, business segments, financial review, and future outlook [Market Review](index=31&type=section&id=Market%20Review) China's GDP grew by 5.3% in H1 2025 despite global uncertainties, while Hong Kong's economy expanded steadily but faces external pressures - In H1 2025, **China's GDP grew by 5.3%** year-on-year, leading major global economies[104](index=104&type=chunk)[105](index=105&type=chunk) - The **International Monetary Fund significantly raised its forecast** for China's economic growth this year[105](index=105&type=chunk) - Hong Kong's economy showed considerable resilience with **real GDP growing by 3.1%** year-on-year in Q2 2025[110](index=110&type=chunk)[111](index=111&type=chunk) - High external uncertainty, including renewed US tariffs and unclear interest rate cut timelines, poses pressure on global trade, local economic activity, and investment sentiment[106](index=106&type=chunk)[107](index=107&type=chunk)[110](index=110&type=chunk)[111](index=111&type=chunk) [Business Review](index=33&type=section&id=Business%20Review) Hong Kong's economy improved slightly but challenges persist; money lending performed stably, internet business revenue declined, and internet education services remain suspended and under restructuring - Hong Kong's economy saw a slight improvement, but the overall business environment remains challenging, with productivity below pre-pandemic levels[112](index=112&type=chunk)[115](index=115&type=chunk) - The Group's businesses comprise two segments: **money lending business** and **internet business**[113](index=113&type=chunk)[116](index=116&type=chunk) [Money Lending Business](index=33&type=section&id=Money%20Lending%20Business) AIA Credit Limited (TCL) provides first mortgage property loans to high-net-worth clients, maintaining good credit control and generating stable income - **TCL primarily generates revenue by providing first mortgage property loans** to clients[114](index=114&type=chunk)[117](index=117&type=chunk) - TCL's clients are mainly **high-net-worth individuals** or those referred through sub-mortgage partnerships, demonstrating **good credit control efficiency**[114](index=114&type=chunk)[117](index=117&type=chunk) - TCL's loan portfolio consists of **reputable clients**, including large corporate clients, contributing **stable income** to the Group[114](index=114&type=chunk)[117](index=117&type=chunk) [Internet Business](index=34&type=section&id=Internet%20Business) The 'VTZero' e-commerce segment focuses on B2B refurbished phone resales, but H1 2025 revenue decreased due to declining iPhone market share - The e-commerce segment diversified its business since H2 2022, primarily focusing on the **business-to-business (B2B) sector**[119](index=119&type=chunk)[121](index=121&type=chunk) - Revenue is primarily derived from **reselling refurbished used mobile phones of premium brands** to local resellers via websites and platforms[119](index=119&type=chunk)[121](index=121&type=chunk) - Revenue for this segment decreased in H1 2025 due to **reduced demand caused by a gradual decline in iPhone market share**[119](index=119&type=chunk)[121](index=121&type=chunk) [Internet Education Services](index=34&type=section&id=Internet%20Education%20Services) Jing Shi Wo Xue (Beijing) Education Technology Co., Ltd. suspended online tutoring due to China's 'Double Reduction' policy and is undergoing restructuring, with business expected to resume post-equity transfer - Online off-campus tutoring services have been **suspended since July 2021** due to China's 'Double Reduction' policy[120](index=120&type=chunk)[122](index=122&type=chunk) - Huzhou Company directly holds **90% equity** in Wo Xue's registered capital, with transfer procedures for the remaining **10% equity** currently underway[120](index=120&type=chunk)[122](index=122&type=chunk) - Upon completion of the remaining equity transfer, Wo Xue is expected to **resume its suspended business** and operate under new education regulatory requirements[120](index=120&type=chunk)[122](index=122&type=chunk) [Financial Review](index=35&type=section&id=Financial%20Review) This section reviews H1 2025 financial performance, noting decreased revenue, expanded loss, negative net current liabilities, and increased money lending revenue [Revenue](index=35&type=section&id=Revenue) Money lending revenue grew by 6.6% to RMB 9.5 million, while internet business revenue declined by 48.0% to RMB 18.5 million due to reduced demand - **Money lending business revenue** was approximately **RMB 9.5 million**, an increase of approximately **6.6%** from 2024[123](index=123&type=chunk)[127](index=127&type=chunk) - **Internet business revenue** was approximately **RMB 18.5 million**, a decrease of approximately **48.0%** from 2024, primarily due to reduced demand for refurbished used iPhones[125](index=125&type=chunk)[128](index=128&type=chunk) - **Internet education services suspended business operations** and did not contribute revenue[126](index=126&type=chunk)[129](index=129&type=chunk) - As of June 30, 2025, TCL had **20 borrower clients**, with loan receivables from the **top five borrowers accounting for approximately 63.1%** of the total[124](index=124&type=chunk)[127](index=127&type=chunk) [Cost of Sales/Service Rendered](index=36&type=section&id=Cost%20of%20Sales%2FService%20Rendered) Cost of sales decreased by 51.0% to RMB 17.4 million, mainly due to reduced internet business sales revenue - **Cost of sales decreased by approximately 51.0%** from approximately **RMB 35.4 million (restated)** in the prior period of 2024 to approximately **RMB 17.4 million**[131](index=131&type=chunk)[134](index=134&type=chunk) - The decrease in cost is primarily attributable to the **reduction in internet business sales revenue** during the review period[131](index=131&type=chunk)[134](index=134&type=chunk) [Gross Profit](index=36&type=section&id=Gross%20Profit) Gross profit increased to RMB 10.7 million, up from RMB 9.1 million in the prior period, primarily driven by money lending and internet businesses - **Gross profit** was approximately **RMB 10.7 million**, an increase from approximately **RMB 9.1 million** in the prior period of 2024[132](index=132&type=chunk)[135](index=135&type=chunk) - Gross profit primarily derived from **money lending business** and **internet business**[132](index=132&type=chunk)[135](index=135&type=chunk) [Reversal of Impairment Loss/Impairment Loss on Trade Receivables and Loan Receivables](index=36&type=section&id=Reversal%20of%20Impairment%20Loss%2FImpairment%20Loss%20on%20Trade%20Receivables%20and%20Loan%20Receivables) H1 2025 saw impairment reversals of RMB 1.5 million for trade receivables and RMB 0.2 million for loan receivables, indicating improved repayment capabilities - **Trade receivables impairment reversal** was approximately **RMB 1.5 million** (2024: approximately **RMB 0.1 million**)[133](index=133&type=chunk)[136](index=136&type=chunk) - **Loan receivables impairment reversal** was approximately **RMB 0.2 million** (2024: approximately **RMB 1.9 million**)[133](index=133&type=chunk)[136](index=136&type=chunk) - Improved repayment capabilities led to an **increase in impairment reversals**[133](index=133&type=chunk)[136](index=136&type=chunk) [Administrative Expenses](index=37&type=section&id=Administrative%20Expenses) Administrative expenses increased by 14.8% to RMB 16.7 million, mainly due to employee salary adjustments and higher legal and professional fees - **Administrative expenses increased by approximately 14.8%** from approximately **RMB 14.5 million (restated)** in the prior period of 2024 to approximately **RMB 16.7 million**[137](index=137&type=chunk)[141](index=141&type=chunk) - The increase was primarily due to **employee salary adjustments** and **higher legal and professional fees**[137](index=137&type=chunk)[141](index=141&type=chunk) [Finance Costs](index=37&type=section&id=Finance%20Costs) Finance costs decreased to RMB 14.6 million, down from RMB 21.7 million (restated) in the prior period, mainly due to changes in promissory note terms - **Finance costs** were approximately **RMB 14.6 million**, a decrease from approximately **RMB 21.7 million (restated)** in the prior period of 2024[138](index=138&type=chunk)[142](index=142&type=chunk) - The decrease was primarily due to **changes in the terms of certain promissory notes**[138](index=138&type=chunk)[142](index=142&type=chunk) [Taxation](index=37&type=section&id=Taxation) No Hong Kong profits tax was provided due to no taxable profits, while Chinese subsidiaries are provided at a 25% corporate income tax rate - No **Hong Kong profits tax** was provided due to the absence of taxable profits in Hong Kong[139](index=139&type=chunk)[143](index=143&type=chunk) - Chinese subsidiaries are provided at a **corporate income tax rate of 25%**[140](index=140&type=chunk)[143](index=143&type=chunk) [Loss and Total Comprehensive Expense for the Period](index=38&type=section&id=Loss%20and%20Total%20Comprehensive%20Expense%20for%20the%20Period) Loss and total comprehensive expense expanded to RMB 31.5 million, with basic loss per share increasing to RMB 0.63 cents - **Loss and total comprehensive expense** was approximately **RMB 31.5 million**, an expansion from approximately **RMB 25.8 million (restated)** in the prior period of 2024[145](index=145&type=chunk)[149](index=149&type=chunk) - **Basic loss per share** was approximately **RMB 0.63 cents**, higher than approximately **RMB 0.55 cents (restated)** in the prior period of 2024[145](index=145&type=chunk)[149](index=149&type=chunk) [Interim Dividend](index=38&type=section&id=Interim%20Dividend) The Board does not recommend an interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (**2024: nil**)[146](index=146&type=chunk)[150](index=150&type=chunk) [Capital Structure, Liquidity and Financial Resources](index=38&type=section&id=Capital%20Structure%2C%20Liquidity%20and%20Financial%20Resources) Bank balances and cash were RMB 23.2 million, total equity RMB 50.3 million, outstanding promissory notes RMB 176.9 million, and gearing ratio increased to 57% - **Bank balances and cash** were approximately **RMB 23.2 million** (December 31, 2024: approximately **RMB 26.5 million**)[147](index=147&type=chunk)[151](index=151&type=chunk) - **Total equity** was approximately **RMB 50.3 million** (December 31, 2024: approximately **RMB 81.8 million**)[147](index=147&type=chunk)[151](index=151&type=chunk) - **Outstanding promissory notes** were approximately **RMB 176.9 million** (December 31, 2024: approximately **RMB 188.4 million**)[147](index=147&type=chunk)[151](index=151&type=chunk) - The **gearing ratio** was approximately **57%** (December 31, 2024: approximately **53%**)[148](index=148&type=chunk)[151](index=151&type=chunk) [Pledge of Assets](index=39&type=section&id=Pledge%20of%20Assets) Buildings with a carrying amount of RMB 6.4 million were pledged to secure RMB 173.9 million in promissory notes, with no bank deposits pledged during the period - **Buildings with a carrying amount of approximately RMB 6.4 million** were pledged to secure promissory notes with a total carrying amount of approximately **RMB 173.9 million**[152](index=152&type=chunk)[156](index=156&type=chunk) - As of June 30, 2025, **no bank deposits were pledged** (December 31, 2024: approximately **RMB 8.3 million** in pledged bank deposits)[153](index=153&type=chunk)[156](index=156&type=chunk) [Material Acquisitions and Disposals of Subsidiaries and Associated Companies](index=39&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%20and%20Associated%20Companies) The Group had no material acquisitions or disposals of subsidiaries, associated companies, or joint ventures during the reporting period - During the reporting period, the Group had **no material acquisitions or disposals of subsidiaries, associated companies, and joint ventures**[154](index=154&type=chunk)[157](index=157&type=chunk) [Contingent Liabilities](index=39&type=section&id=Contingent%20Liabilities) VT Zero Limited faces a HKD 63.16 million claim lawsuit from Ai Huishou Co., Ltd., has filed a counterclaim, and the trial is set for early July 2026 - **VT Zero Limited faces a claim lawsuit from Ai Huishou Co., Ltd. for approximately HKD 63.16 million**[155](index=155&type=chunk)[158](index=158&type=chunk) - The claim involves **unpaid net proceeds from goods sales, overdue remittances, and agreed buy-out prices for unsold goods**[155](index=155&type=chunk)[158](index=158&type=chunk) - **VT Zero has filed a counterclaim** and considers the claim to be without merit; the court has **dismissed the plaintiff's applications for interim payment and proprietary injunction**[160](index=160&type=chunk)[161](index=161&type=chunk)[162](index=162&type=chunk)[164](index=164&type=chunk) - The **trial is scheduled for early July 2026**[161](index=161&type=chunk)[164](index=164&type=chunk) [Currency Exchange Exposures](index=41&type=section&id=Currency%20Exchange%20Exposures) The Group's purchases, sales, and operating expenses are primarily denominated in EUR, RMB, and HKD, with effective monitoring of currency exchange risks - The Group's **purchases and sales are primarily denominated in Euro, RMB, and HKD**[165](index=165&type=chunk)[167](index=167&type=chunk) - Operating expenses are mainly denominated in **HKD and RMB**[165](index=165&type=chunk)[167](index=167&type=chunk) - The Group has effectively **monitored and managed its currency exchange rate fluctuation risks**[165](index=165&type=chunk)[167](index=167&type=chunk) [Human Resources and Staff Remuneration](index=41&type=section&id=Human%20Resources%20and%20Staff%20Remuneration) The Group increased its workforce to 42 employees, investing in training and fair remuneration to enhance professionalism and engagement - As of June 30, 2025, the Group employed a total of **42 staff** (2024: **35 staff**)[166](index=166&type=chunk)[168](index=168&type=chunk) - The Group continues to invest significant resources in **strengthening training programs**, providing training and learning opportunities for management and professional technical personnel[166](index=166&type=chunk)[168](index=168&type=chunk) - The Group promptly communicates the latest government industry policy information to all employees and provides **fair remuneration** to enhance employee professionalism[166](index=166&type=chunk)[168](index=168&type=chunk) [Future Prospects](index=42&type=section&id=Future%20Prospects) Despite global challenges, the Group anticipates slow economic recovery in H2 2025, pursuing prudent capital management and new business ventures for diversification and long-term growth - The Group expects the economies of Hong Kong and mainland China to continue a **slow recovery in H2 2025**, though prospects remain uncertain[171](index=171&type=chunk)[172](index=172&type=chunk) - The Group will continue to adopt **prudent capital management and liquidity risk management**, seeking loan growth with reasonable returns in the money lending business[171](index=171&type=chunk)[172](index=172&type=chunk) - The Group will continue to invest resources in expanding into the **Southeast Asian geospatial intelligence industry**, including satellite positioning terminal equipment and high-precision positioning geospatial intelligence solutions, having signed MOUs with several companies[173](index=173&type=chunk)[174](index=174&type=chunk) - The Group intends to **acquire 100% of Newsbaba Ltd. for RMB 120 million**, whose subsidiary Beijing Newsbaba Intellectual Property Agency Co., Ltd. provides intellectual property asset management and maintenance services[176](index=176&type=chunk)[178](index=178&type=chunk) - The Group will continue to **diversify its business**, actively exploring new products and opportunities for cooperation with new suppliers and clients across various industries[179](index=179&type=chunk)[181](index=181&type=chunk) [Compliance with Money Lenders Ordinance](index=45&type=section&id=Compliance%20with%20Money%20Lenders%20Ordinance) The Group's money lending business strictly complies with the Money Lenders Ordinance, with no objections or investigations received, and robust credit risk and loan recovery procedures in place - The Group's money lending business strictly complies with the **Money Lenders Ordinance, Chapter 163 of the Laws of Hong Kong**[180](index=180&type=chunk)[182](index=182&type=chunk) - Since its initial money lender's license issuance, no **objections or investigations** have been received from the Registrar of Money Lenders or the Commissioner of Police[180](index=180&type=chunk)[182](index=182&type=chunk) - Procedures for **monitoring loan repayments and recovery** have been adopted, including executive directors regularly reporting repayment status and handling overdue loans to the Board[184](index=184&type=chunk)[185](index=185&type=chunk) - Credit risk assessment includes **land searches, valuation reports, client financial status review, and background checks**[184](index=184&type=chunk)[185](index=185&type=chunk) [Other Information](index=47&type=section&id=Other%20Information) This section covers other important information, including corporate governance, directors' securities transactions, changes in director information, audit committee review, and share option scheme details [Compliance with Corporate Governance Code](index=47&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Company has adopted and complied with the Corporate Governance Code principles and provisions outlined in Appendix 14 of the Listing Rules - The Company has adopted the **principles and code provisions of the Corporate Governance Code** set out in Appendix 14 of the Listing Rules[186](index=186&type=chunk)[189](index=189&type=chunk) - The Board believes that the Company has **complied with all applicable code provisions** for the six months ended June 30, 2025[186](index=186&type=chunk)[189](index=189&type=chunk) [Compliance with Model Code for Securities Transactions by Directors](index=47&type=section&id=Compliance%20with%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company adopted a code of conduct no less exacting than the Model Code, with all directors confirming compliance and relevant employees also adhering to securities transaction rules - The Company has adopted a **code of conduct** whose terms are no less exacting than the Model Code set out in **Appendix 10 of the Listing Rules**[187](index=187&type=chunk)[190](index=190&type=chunk) - All Directors have confirmed **compliance with the code of conduct** for the six months ended June 30, 2025[187](index=187&type=chunk)[190](index=190&type=chunk) - Relevant employees who may possess unpublished price-sensitive information are required to comply with the **company's code for employee securities transactions**[188](index=188&type=chunk)[190](index=190&type=chunk) [Changes in Directors' Information](index=48&type=section&id=Changes%20in%20Directors'%20Information) Mr. Li Kam Wing was appointed as an Independent Non-Executive Director on June 25, 2025, while Mr. Tang Yiu On resigned on August 15, 2025 - **Mr. Li Kam Wing** was appointed as an **Independent Non-Executive Director** on June 25, 2025[191](index=191&type=chunk)[194](index=194&type=chunk) - **Mr. Tang Yiu On resigned** as an Independent Non-Executive Director on August 15, 2025, to dedicate more time to other business endeavors[192](index=192&type=chunk)[194](index=194&type=chunk) [Audit Committee and Review of Unaudited Interim Results](index=48&type=section&id=Audit%20Committee%20and%20Review%20of%20Unaudited%20Interim%20Results) The Audit Committee, composed of three independent non-executive directors, reviewed accounting policies, audit matters, and the unaudited interim results for the period - The Audit Committee comprises **three independent non-executive directors**: **Mr. Li Kam Wing** (appointed August 15, 2025), **Mr. Li Yisheng**, and **Mr. Cao Ke**[193](index=193&type=chunk)[195](index=195&type=chunk) - The Committee has reviewed the **accounting principles and policies** adopted by the Group and discussed **audit, internal control, and financial reporting matters**[193](index=193&type=chunk)[195](index=195&type=chunk) - The Committee has **reviewed the unaudited interim results** for the six months ended June 30, 2025[193](index=193&type=chunk)[195](index=195&type=chunk) [Important Events After the Reporting Period](index=49&type=section&id=Important%20Events%20After%20the%20Reporting%20Period) Post-reporting period, AIA Credit Limited granted a HKD 5 million loan, and two promissory notes totaling HKD 197,416,000 had their maturity dates extended - On July 11, 2025, subsidiary **AIA Credit Limited granted a loan with a principal amount of HKD 5 million**[196](index=196&type=chunk)[198](index=198&type=chunk) - The maturity dates of two promissory notes with principal amounts of **HKD 44,208,000** and **HKD 153,208,000** were extended from January 1, 2026, to **January 1, 2027**[197](index=197&type=chunk)[199](index=199&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=50&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the six months ended June 30, 2025 - During the six months ended June 30, 2025, **neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities**[201](index=201&type=chunk)[203](index=203&type=chunk) [Share Option Scheme and Movement of the Share Options](index=50&type=section&id=Share%20Option%20Scheme%20and%20Movement%20of%20the%20Share%20Options) The Company's share option scheme provides incentives, with 237,000,000 outstanding options (5.81% of issued shares) and no movement during the period - The **share option scheme** was adopted on September 24, 2021, to provide incentives or rewards to selected eligible participants[202](index=202&type=chunk)[204](index=204&type=chunk) - As of June 30, 2025, the number of shares involved in **granted and outstanding share options was 237,000,000 shares**, representing **5.81% of issued shares**[212](index=212&type=chunk)[213](index=213&type=chunk) - There was **no movement in share options** under the share option scheme for the six months ended June 30, 2025[219](index=219&type=chunk)[220](index=220&type=chunk) - The **exercise period for share options** is any time from the third anniversary to the tenth anniversary of the grant date[217](index=217&type=chunk) [Interests and Short Positions of Directors in Shares](index=56&type=section&id=Interests%20and%20Short%20Positions%20of%20Directors%20in%20Shares) As of June 30, 2025, Mr. Zhu Min held long positions of 356,000,000 shares (8.72%) through a controlled corporation and 634,284,000 shares (15.54%) through Cybernaut International Limited Directors' Long Positions in Shares and Underlying Shares | Name of Shareholder | Nature of Interest | Number of Securities Held | Approximate Percentage of Equity (%) | | :--- | :--- | :--- | :--- | | Mr. Zhu Min | Interest in controlled corporation | 356,000,000 shares (L) | 8.72% | | Cybernaut International Limited | Beneficial owner | 634,284,000 shares (L) | 15.54% | - **Cybernaut International Limited is wholly owned by Mr. Zhu Min**[229](index=229&type=chunk) [Interest Discloseable Under SFO and Substantial Shareholders](index=57&type=section&id=Interest%20Discloseable%20Under%20SFO%20and%20Substantial%20Shareholders) As of June 30, 2025, no person, other than disclosed directors, notified the Company of disclosable interests or short positions under SFO Part XV, or direct/indirect interests of 5% or more - As of June 30, 2025, other than directors' interests, the Company had **not been notified by any person of disclosable interests or short positions** in shares or underlying shares under the Securities and Futures Ordinance[230](index=230&type=chunk)[232](index=232&type=chunk) - Furthermore, no person held direct or indirect interests in **5% or more of the shares**[230](index=230&type=chunk)[232](index=232&type=chunk) [Appreciation](index=57&type=section&id=Appreciation) The Company extends its gratitude to shareholders, business partners, clients, and dedicated staff for their continuous support and contributions - The Company expresses its appreciation to **shareholders, business partners, and clients for their continuous support**[231](index=231&type=chunk)[233](index=233&type=chunk) - The Company thanks its **dedicated staff for their contributions to the Group's success**[231](index=231&type=chunk)[233](index=233&type=chunk)

[Company Information](index=3&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) This section provides essential corporate details for Precision Group Limited, including its governance structure, key personnel, and operational addresses - The Board of Directors includes executive directors (Mr. Lim Kok Chye as CEO), non-executive directors (Mr. Loh Kian Wah as Chairman), and independent non-executive directors[6](index=6&type=chunk) - The company has established an Audit Committee, Nomination Committee, and Remuneration Committee to enhance corporate governance[6](index=6&type=chunk) - The company's registered office and principal place of business in Singapore are at 1 Changi North Street 1, Singapore 498789, with its principal place of business in Hong Kong at 31/F, 148 Electric Road, North Point[6](index=6&type=chunk)[7](index=7&type=chunk) [Definitions](index=4&type=section&id=%E9%87%8B%E7%BE%A9) This section defines key terms, including corporate entities, regulations, geographical areas, currency units, and business types, for clear report understanding - The report defines "the Company" (Precision Group Limited) and its major shareholder "China Everbright Holdings" with an approximate **28.58% stake**[8](index=8&type=chunk) - Key business terms such as "Electronic Manufacturing Services" (EMS) and "Original Design Manufacturing" (ODM) are clearly defined[8](index=8&type=chunk) - Currency units include Hong Kong Dollars, Renminbi, Singapore Dollars, and US Dollars, with "China" explicitly excluding Hong Kong, Macau, and Taiwan[8](index=8&type=chunk)[9](index=9&type=chunk) [Financial Summary](index=6&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) This section graphically summarizes Precision Group's key financial performance metrics for 2022-2024 and H1 2024 vs H1 2025 Revenue, Gross Profit, and Net Profit (S$ million) | Metric | H1 2024 | H1 2025 | | :--- | :--- | :--- | | Revenue | 51.5 | 50.3 | | Gross Profit | 4.8 | 4.5 | | Net Profit / (Loss) | 2.9 | (3.4) | Total Assets, Total Liabilities, and Total Equity (S$ million) | Metric | 2024 | H1 2025 | | :--- | :--- | :--- | | Total Assets | 157.6 | 149.7 | | Total Liabilities | 55.1 | 53.9 | | Total Equity | 102.5 | 95.7 | - In H1 2025, the Group recorded a **net loss of S$3.4 million**, compared to a **net profit of S$2.9 million** in H1 2024, primarily due to a reduction in one-off book income[12](index=12&type=chunk)[38](index=38&type=chunk) [Management Discussion and Analysis](index=7&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) This section details Precision Group's operating overview, segment performance, financial review, liquidity, capital resources, future plans, and risk management strategies for the six months ended June 30, 2025 [1. Overview](index=7&type=section&id=1.%20%E6%A6%82%E8%A6%BD) Precision Group, a contract manufacturer established in 1988, focuses on the semiconductor processing equipment industry through its Electronic Manufacturing Services (EMS), Original Design Manufacturing (ODM), and Investment segments, with EMS contributing 93.9% of total revenue in H1 2025 - Precision Group is a contract manufacturer in the semiconductor processing equipment industry, with production facilities in Singapore, China, the Philippines, and Malaysia[17](index=17&type=chunk) H1 2025 Revenue Contribution by Business Segment | Business Segment | Revenue Contribution | | :--- | :--- | | Electronic Manufacturing Services | Approx. 93.9% | | Original Design Manufacturing | Approx. 3.7% | | Investment | Approx. 2.4% | - The Group's business is affected by the semiconductor industry downturn, reduced new investments, sanctions, and US tariffs, leading to an uncertain business outlook[17](index=17&type=chunk) - Artificial Intelligence (AI) chip manufacturers and the Chinese semiconductor industry (primarily low-value assembly and wafer testing) are bright spots within the sector[18](index=18&type=chunk) [Business Review and Outlook](index=7&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7%E5%8F%8A%E5%89%8D%E6%99%AF) The Group actively responds to changes in the business environment, but revenue decreased due to trade uncertainties and reduced new investments, causing project delays, with slow semiconductor recovery leading to postponed new business development plans and varied performance across segments [Electronic Manufacturing Services Segment](index=7&type=section&id=%E9%9B%BB%E5%AD%90%E8%A3%BD%E9%80%A0%E6%9C%8D%E5%8B%99%E5%88%86%E9%83%A8) For the six months ended June 30, 2025, the Electronic Manufacturing Services segment's total revenue slightly decreased by approximately 0.3% year-on-year, primarily due to lower sales volume, but a significant agreement with a Singaporean wafer fabrication equipment company is nearing completion, signaling potential recovery - Electronic Manufacturing Services segment revenue slightly decreased by **0.3%**, primarily due to lower sales volume[20](index=20&type=chunk) - An agreement with a Singaporean wafer fabrication equipment company for a substantial volume of complete wafer fabrication equipment contracts is nearing completion, expected to drive revenue recovery[21](index=21&type=chunk) - Revenue was impacted by a significant decline in contract manufacturing for China's largest low-cost LED ball bonder customer and reduced equipment demand from Japanese clients[22](index=22&type=chunk) [Original Design Manufacturing Segment](index=8&type=section&id=%E5%8E%9F%E5%A7%8B%E8%A8%AD%E8%A8%88%E8%A3%BD%E9%80%A0%E5%88%86%E9%83%A8) For the six months ended June 30, 2025, the Original Design Manufacturing segment's total revenue significantly decreased by approximately 41.9%, marking its worst historical performance due to a challenging global semiconductor business environment and difficulties in selling obsolete products, prompting the CEO to take over marketing and plan for equipment manufacturing process transfer to the EMS segment and human resource restructuring - Original Design Manufacturing segment revenue decreased by **41.9%**, its worst performance to date, primarily due to declining customer demand and difficulties in selling obsolete products[23](index=23&type=chunk) - The CEO has taken over the marketing department, aiming to secure more capital equipment orders from developing OSAT industries in Vietnam, India, and the Philippines[23](index=23&type=chunk) - Plans include transferring Original Design Manufacturing equipment, prototyping, and future production processes to the Electronic Manufacturing Services segment, alongside human resource restructuring to enhance efficiency[23](index=23&type=chunk) [Investment Segment](index=8&type=section&id=%E6%8A%95%E8%B3%87%E5%88%86%E9%83%A8) For the six months ended June 30, 2025, the Investment segment's fund management fee income increased by 23.0% year-on-year, driven by the establishment of new funds, with Shanghai Guangpu managing seven funds totaling approximately S$141.7 million in assets under management, despite ongoing financial pressures in China's capital markets and geopolitical challenges impacting new funding sources - Fund management fee income increased by **23.0%**, primarily due to the establishment of new funds[24](index=24&type=chunk) - Shanghai Guangpu manages seven funds, with total assets under management of approximately **S$141.7 million** as of June 30, 2025[24](index=24&type=chunk) - China's capital market faces financial pressure, and geopolitical issues and tariff conflicts create an uncertain business outlook, making new funding sources a challenge[24](index=24&type=chunk) [2. Financial Review](index=8&type=section&id=2.%20%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) This section analyzes the Group's financial metrics for the six months ended June 30, 2025, including revenue, cost of sales, gross profit, other income, selling and marketing expenses, general and administrative expenses, other gains and losses, finance costs, loss before tax, income tax, and period loss, comparing them to the prior year Revenue by Operating Segment (S$ thousand) | Operating Segment | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Electronic Manufacturing Services | 47,217 | 47,347 | –0.3% | | Original Design Manufacturing | 1,856 | 3,194 | –41.9% | | Investment | 1,207 | 982 | 22.9% | | **Total** | **50,280** | **51,523** | **–2.4%** | Cost of Sales by Operating Segment (S$ thousand) | Operating Segment | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Electronic Manufacturing Services | 43,839 | 43,239 | 1.4% | | Original Design Manufacturing | 1,926 | 3,464 | –44.4% | | Investment | — | — | N/A | | **Total** | **45,765** | **46,703** | **–2.0%** | - Gross profit decreased by **6.3%** to **S$4.5 million**, with the gross profit margin falling from **9.4% to 9.0%**[29](index=29&type=chunk)[30](index=30&type=chunk) - Other income significantly decreased by **92.7%** to **S$0.6 million**, primarily due to a one-off book income of approximately **S$8.5 million** recorded in H1 2024[31](index=31&type=chunk) - General and administrative expenses decreased by **4.5%** to **S$6.5 million**, mainly due to reduced research and development costs[33](index=33&type=chunk) - Loss before tax shifted from a **profit of S$5.0 million** in H1 2024 to a **loss of S$3.6 million** in H1 2025, primarily impacted by the one-off income[36](index=36&type=chunk) - The period recorded a **net loss after tax of approximately S$3.4 million**, compared to a **net profit of approximately S$2.9 million** in the prior year period[38](index=38&type=chunk) [Liquidity and Capital Resources](index=10&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E6%BA%90) This section analyzes the Group's liquidity, cash and cash equivalents, funding and financial policies, cash flows, net current assets, capital expenditures, capital and investment commitments, use of IPO proceeds, debt situation, contingent liabilities, net debt-to-equity ratio, and leverage ratio - As of June 30, 2025, cash and cash equivalents were approximately **S$11.2 million**, and the Board considers the financial position to be sound[39](index=39&type=chunk) Cash Flow Summary (S$ thousand) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net cash flows used in operating activities | (7,877) | (2,787) | | Net cash flows used in investing activities | (1,644) | (5,036) | | Net cash flows from / (used in) financing activities | 2,543 | (1,849) | | Net decrease in cash and cash equivalents | (6,978) | (9,672) | | Cash and cash equivalents at June 30 | 11,229 | 8,450 | - Net current assets decreased from **S$35.2 million** as of December 31, 2024, to **S$30.6 million** as of June 30, 2025[45](index=45&type=chunk) - Total contracted but unprovided capital and investment expenditures amounted to **S$25.985 million** as of June 30, 2025, primarily for investment securities commitments[48](index=48&type=chunk) - **S$5.5 million** of IPO proceeds remain unutilized, expected to be fully deployed for marketing activities by Q4 2025[51](index=51&type=chunk)[52](index=52&type=chunk) - Total interest-bearing loans and borrowings amounted to **S$27.2 million**, with a net debt-to-equity ratio of **0.17** and a leverage ratio of **0.28**[54](index=54&type=chunk)[57](index=57&type=chunk)[58](index=58&type=chunk) [Future Plans for Material Investments and Capital Assets](index=14&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E7%9A%84%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) As of June 30, 2025, Precision Group has no specific future plans for material investments or capital assets - The Group had no specific plans for material investments or capital assets as of June 30, 2025[59](index=59&type=chunk) [Material Investments, Acquisitions, and Disposals](index=14&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E3%80%81%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) For the six months ended June 30, 2025, Precision Group did not undertake any material investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, there were no material investments held, nor any material acquisitions or disposals of subsidiaries, associates, or joint ventures[60](index=60&type=chunk) [Foreign Exchange Risk Management](index=14&type=section&id=%E5%A4%96%E5%BD%99%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86) Precision Group's functional currency is the Singapore Dollar, but with revenue primarily denominated in US Dollars and operating expenses in Singapore Dollars and Renminbi, the Group faces exchange rate fluctuation risks, which it mitigates through natural hedging via US Dollar raw material purchases and short-term loans, and US Dollar forward sales contracts - The Group's functional currency is the Singapore Dollar, with revenue primarily denominated in US Dollars and operating expenses in Singapore Dollars and Renminbi, exposing it to exchange rate fluctuation risks[61](index=61&type=chunk) - The Group employs natural hedging by purchasing raw materials and borrowing short-term loans in US Dollars, and enters into US Dollar forward sales contracts[61](index=61&type=chunk) - Group management will continue to monitor foreign exchange risks and implement prudent measures to mitigate currency exchange risks[61](index=61&type=chunk) [Pledge of Assets](index=14&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, Precision Group had not pledged or charged any assets other than deposits and a factory building provided by its Malaysian subsidiary as collateral for bank financing - As of June 30, 2025, only the Malaysian subsidiary provided deposits and a factory building as collateral for bank financing[62](index=62&type=chunk) [Human Resources](index=14&type=section&id=%E4%BA%BA%E5%8A%9B%E8%B3%87%E6%BA%90) As of June 30, 2025, Precision Group employed 760 staff, with employee benefit expenses totaling approximately S$13.5 million, and its remuneration policy is based on individual performance, market comparability, and group results, supported by internal and external training, with no labor disputes reported during the period - As of June 30, 2025, the Group employed **760 staff**, with employee benefit expenses totaling approximately **S$13.5 million**[63](index=63&type=chunk) - The remuneration policy is based on individual performance, capabilities, engagement, market comparability, and Group results, and is regularly reviewed to retain talent[63](index=63&type=chunk) - The company has adopted a share option scheme to recognize contributions and retain eligible employees[63](index=63&type=chunk) - No labor disputes were experienced for the six months ended June 30, 2025[63](index=63&type=chunk) [Other Information](index=15&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) This section covers non-financial information including Precision Group's dividend policy, corporate governance practices, directors' securities transaction standards, listed securities trading, audit committee review, post-reporting period events, directors' and chief executive's equity interests, substantial shareholders' interests, share option scheme details, and changes in directors' biographical details [Dividends](index=15&type=section&id=%E8%82%A1%E6%81%AF) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[65](index=65&type=chunk) [Corporate Governance Code](index=15&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) Precision Group is committed to corporate governance principles, having adopted robust practices and pledging to be a transparent and responsible organization, and has complied with all code provisions in Appendix C1 Part 2 of the Listing Rules for the six months ended June 30, 2025 - The Group is committed to corporate governance principles and has adopted robust corporate governance practices to comply with legal and commercial standards[66](index=66&type=chunk) - For the six months ended June 30, 2025, the company complied with all code provisions in Appendix C1 Part 2 of the Listing Rules[67](index=67&type=chunk) [Standard Code for Securities Transactions by Directors of Listed Issuers](index=15&type=section&id=%E4%B8%8A%E5%B8%82%E7%99%BC%E8%A1%8C%E4%BA%BA%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The company has adopted the Standard Code as the code of conduct for securities transactions by directors and relevant employees, and all directors confirmed compliance with its required standards for the six months ended June 30, 2025 - The company has adopted the Standard Code as the code of conduct for securities transactions by directors and relevant employees[68](index=68&type=chunk) - All directors confirmed compliance with the required standards of the Standard Code for the six months ended June 30, 2025[68](index=68&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=15&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities for the six months ended June 30, 2025 - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities for the six months ended June 30, 2025[69](index=69&type=chunk) [Audit Committee Review of Financial Information](index=15&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83%E5%AF%A9%E9%96%B1%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99) The Group's unaudited interim condensed consolidated financial statements and this report for the six months ended June 30, 2025, have been reviewed by the Board's Audit Committee, which comprises solely independent non-executive directors - The Group's unaudited interim condensed consolidated financial statements and this report for the six months ended June 30, 2025, have been reviewed by the Board's Audit Committee[70](index=70&type=chunk) [Events After Reporting Period](index=15&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) No material events occurred after June 30, 2025, up to the latest practicable date - No material events occurred after June 30, 2025, up to the latest practicable date[71](index=71&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares, and Debentures of the Company or Any Associated Corporation](index=16&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E4%B8%BB%E8%A6%81%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E6%96%BC%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%88%96%E4%BB%BB%E4%BD%95%E7%9B%B8%E8%81%AF%E6%B3%95%E5%9C%98%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E5%8F%8A%E5%82%B5%E6%AC%8A%E8%AD%89%E4%B8%AD%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) This section discloses the long positions of directors and the chief executive in the Company's shares as of June 30, 2025, including direct and deemed interests, and lists each director's shareholding and approximate percentage of ownership Directors' Long Positions in Company Shares (as of June 30, 2025) | Director Name | Capacity and Nature of Interest | Number of Shares Held | Approximate Percentage of Shareholding (%) | | :--- | :--- | :--- | :--- | | Mr. Lim Kok Chye | Beneficial owner; Spouse's interest | 324,573,113 | 35.26 | | Mr. Toh Siew Tat | Beneficial owner; Controlled corporation's interest | 14,758,000 | 1.60 | | Mr. Lim Kim Ming | Beneficial owner | 25,642,000 | 2.79 | | Mr. Cheng Kim Chia | Beneficial owner; Controlled corporation's interest | 9,916,000 | 1.08 | | Mr. Loh Kian Wah | Beneficial owner | 9,094,000 | 0.99 | - Mr. Lim Kok Chye (CEO) holds a **35.26% stake**, including shares held by his spouse, Ms. Foo Hwee Yoke[72](index=72&type=chunk)[74](index=74&type=chunk) - Other than the disclosed share option scheme, directors held no other disclosable interests and/or short positions in the Company's or its associated corporations' shares, underlying shares, or debentures[73](index=73&type=chunk) [Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares and Underlying Shares](index=17&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E5%8F%8A%E5%85%B6%E4%BB%96%E4%BA%BA%E5%A3%AB%E6%96%BC%E8%82%A1%E4%BB%BD%E5%8F%8A%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) This section discloses the long positions of substantial shareholders and other persons (not directors or chief executives) in the Company's shares as of June 30, 2025, including Ms. Foo Hwee Yoke, Diamond Rich Global Limited, China Everbright Holdings Company Limited and its associated entities, and Central Huijin Investment Ltd Substantial Shareholders' Long Positions in Company Shares (as of June 30, 2025) | Shareholder Name / Name | Nature of Interest | Number of Shares Held | Approximate Percentage of Shareholding (%) | | :--- | :--- | :--- | :--- | | Foo Hwee Yoke | Beneficial owner; Spouse's interest | 324,573,113 | 35.26 | | Diamond Rich Global Limited | Beneficial owner | 262,084,380 | 28.48 | | China Everbright Venture Capital Limited | Controlled corporation's interest | 262,084,380 | 28.48 | | China Everbright Holdings Company Limited | Controlled corporation's interest | 263,026,380 | 28.58 | | Honorich Holdings Limited | Controlled corporation's interest | 263,026,380 | 28.58 | | China Everbright Group Limited | Controlled corporation's interest | 263,026,380 | 28.58 | | China Everbright Group Company Limited | Controlled corporation's interest | 263,026,380 | 28.58 | | Central Huijin Investment Ltd | Controlled corporation's interest | 263,026,380 | 28.58 | - Ms. Foo Hwee Yoke (spouse of Mr. Lim Kok Chye) is deemed to have an interest in **35.26%** of the shares[75](index=75&type=chunk)[78](index=78&type=chunk) - China Everbright Holdings Company Limited and its associated entities (including Diamond Rich Global Limited) collectively hold approximately **28.58%** of the share interests[75](index=75&type=chunk)[78](index=78&type=chunk) - Central Huijin Investment Ltd, as a shareholder of China Everbright Group Company Limited, is deemed to have an interest in approximately **28.58%** of the shares[75](index=75&type=chunk)[78](index=78&type=chunk) [Share Option Scheme](index=18&type=section&id=%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) This section details Precision Group's Share Option Scheme, designed to incentivize and reward eligible participants for their contributions to the Group's business, including its effective period, grant limits, approval requirements, exercise price determination, and specific grant, lapse, and vesting details for 2021, 2023, 2024, and 2025 - The Share Option Scheme became effective on June 27, 2018, for a 10-year period, aiming to provide incentives and rewards to eligible participants[79](index=79&type=chunk) - The current unexercised share option limit is **10%** of the issued shares post-listing, totaling **83,935,132 shares**[79](index=79&type=chunk) - **18,500,000 share options** granted in 2021 lapsed on March 24, 2023, due to unfulfilled performance targets[81](index=81&type=chunk) - **8,340,000 share options** were granted on May 25, 2023, with an exercise price of **HK$0.300**, some of which lapsed due to grantees' resignation[82](index=82&type=chunk) - **2,900,000 share options** were granted on January 9, 2024, with an exercise price of **HK$0.304**, some of which lapsed due to grantees' resignation[83](index=83&type=chunk) - **9,120,000 share options** were granted on May 23, 2025, with an exercise price of **HK$0.1212**, subject to performance targets and clawback mechanisms for vesting[84](index=84&type=chunk) - As of June 30, 2025, the total number of shares available for issue under the Share Option Scheme was **69,025,132**, representing approximately **7.50%** of the issued shares[84](index=84&type=chunk) - The fair value of all existing unexercised share options as of June 30, 2025, was estimated at approximately **S$134,000**[86](index=86&type=chunk) [Changes in Directors' Biographical Details](index=21&type=section&id=%E8%91%A3%E4%BA%8B%E5%B1%A5%E6%AD%B7%E8%A9%B3%E6%83%85%E8%AE%8A%E6%9B%B4) This section discloses changes in directors' biographical details required under Listing Rule 13.51B(1) as of the latest practicable date, primarily concerning Mr. Poon Chi Wai's cessation as an independent non-executive director for two listed companies - Effective July 28, 2025, Mr. Poon Chi Wai ceased to be an independent non-executive director of Wing Mau Holdings Limited and Singapore Shipping Corporation Ltd[87](index=87&type=chunk) [Interim Condensed Consolidated Statement of Comprehensive Income](index=22&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E5%85%A5%E8%A1%A8) This section presents Precision Group's unaudited interim condensed consolidated statement of comprehensive income for the six months ended June 30, 2025, showing a shift from profit to loss compared to the prior year, primarily due to a significant decrease in other income Interim Condensed Consolidated Statement of Comprehensive Income (S$ thousand) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue | 50,280 | 51,523 | | Cost of sales | (45,765) | (46,703) | | Gross Profit | 4,515 | 4,820 | | Other income | 638 | 8,766 | | Loss Before Tax / Profit Before Tax | (3,588) | 5,047 | | Income tax credit / (expense) | 144 | (2,153) | | Loss / Profit for the period | (3,444) | 2,894 | | Loss / Profit for the period attributable to owners of the Company | (3,748) | (257) | | Total comprehensive income for the period | (6,802) | 3,683 | | Loss per share attributable to owners of the Company (Singapore cents) | (0.41) | (0.03) | - Loss for the period attributable to owners of the Company expanded from **S$257 thousand** in H1 2024 to **S$3,748 thousand** in H1 2025[89](index=89&type=chunk) - Exchange differences on translation of overseas operations resulted in other comprehensive income shifting from a **gain of S$789 thousand** to a **loss of S$3,358 thousand**[89](index=89&type=chunk) [Interim Condensed Consolidated Statement of Financial Position](index=23&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) This section provides Precision Group's unaudited interim condensed consolidated statement of financial position as of June 30, 2025, detailing the composition of assets, liabilities, and equity, reflecting a decrease in total assets and equity Interim Condensed Consolidated Statement of Financial Position (S$ thousand) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Non-current Assets | 69,563 | 72,505 | | Total Current Assets | 80,072 | 85,106 | | Total Current Liabilities | 49,512 | 49,908 | | Net Current Assets | 30,560 | 35,198 | | Total Non-current Liabilities | 4,393 | 5,171 | | Net Assets | 95,730 | 102,532 | | Total Equity | 95,730 | 102,532 | - Total assets decreased from **S$157,611 thousand** as of December 31, 2024, to **S$149,635 thousand** as of June 30, 2025[91](index=91&type=chunk) - Total equity decreased from **S$102,532 thousand** as of December 31, 2024, to **S$95,730 thousand** as of June 30, 2025[91](index=91&type=chunk) [Interim Condensed Consolidated Statement of Changes in Equity](index=24&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) This section presents Precision Group's unaudited interim condensed consolidated statement of changes in equity for the six months ended June 30, 2025, detailing movements in share capital, statutory reserves, exchange fluctuation reserve, share option reserve, retained profits, and non-controlling interests, reflecting the impact of period loss and exchange differences on equity Interim Condensed Consolidated Statement of Changes in Equity (S$ thousand) | Metric | As at January 1, 2025 | Loss for the period | Exchange differences on translation of overseas operations | As at June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | | Total equity attributable to owners of the Company | 89,511 | (3,748) | (2,757) | 83,006 | | Non-controlling interests | 13,021 | 304 | (601) | 12,724 | | **Total Equity** | **102,532** | **(3,444)** | **(3,358)** | **95,730** | - Total equity attributable to owners of the Company decreased from **S$89,511 thousand** as of January 1, 2025, to **S$83,006 thousand** as of June 30, 2025[92](index=92&type=chunk) - The exchange fluctuation reserve further decreased from **S$(5,073) thousand** to **S$(7,830) thousand** due to exchange differences on translation of overseas operations[92](index=92&type=chunk) [Interim Condensed Consolidated Statement of Cash Flows](index=25&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) This section presents Precision Group's unaudited interim condensed consolidated statement of cash flows for the six months ended June 30, 2025, detailing cash flows from operating, investing, and financing activities, reflecting a net decrease in cash and cash equivalents during the period Interim Condensed Consolidated Statement of Cash Flows (S$ thousand) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net cash flows used in operating activities | (7,877) | (2,787) | | Net cash flows used in investing activities | (1,644) | (5,036) | | Net cash flows from / (used in) financing activities | 2,543 | (1,849) | | Net decrease in cash and cash equivalents | (6,978) | (9,672) | | Cash and cash equivalents at end of period | 11,229 | 8,450 | - Net cash flows used in operating activities increased from **S$2,787 thousand** in H1 2024 to **S$7,877 thousand** in H1 2025[94](index=94&type=chunk) - Financing activities shifted from a **net cash outflow of S$1,849 thousand** in H1 2024 to a **net cash inflow of S$2,543 thousand** in H1 2025, primarily due to increased proceeds from bank loans offsetting bank loan repayments[95](index=95&type=chunk) - Cash and cash equivalents at the end of the period amounted to **S$11,229 thousand**, a decrease of **S$6,978 thousand** from the beginning of the period[95](index=95&type=chunk) [Notes to the Interim Condensed Consolidated Financial Statements](index=27&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section provides detailed notes to the interim condensed consolidated financial statements, explaining the company's basic information, basis of preparation, changes in accounting policies, operating segment information, revenue, other income, other gains and losses, loss before tax, income tax, loss per share, property, plant and equipment, investment securities, investments in associates, inventories, receivables, cash and cash equivalents, payables, interest-bearing loans and borrowings, share capital, related party transactions, financial instruments by category, and fair value hierarchy [1. Company Information](index=27&type=section&id=1.%20%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) Precision Group Limited, a Singapore-incorporated company listed on the Stock Exchange's Main Board, primarily engages in contract manufacturing, design, engineering, and assembly for the electronics industry, design, manufacturing, and sale of automated machinery, instruments, systems, and equipment, as well as fund management and investment in equity securities and funds, operating in Singapore, China, the Philippines, Japan, and Malaysia - The Company primarily engages in contract manufacturing for the electronics industry, design and manufacturing of automated equipment, and fund management and investment activities[98](index=98&type=chunk) - The Company and its subsidiaries operate in Singapore, China, the Philippines, Japan, and Malaysia[99](index=99&type=chunk) [2. Basis of Preparation and Changes in the Group's Accounting Policies](index=27&type=section&id=2.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96%E5%8F%8A%E6%9C%AC%E9%9B%86%E5%9C%98%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E7%9A%84%E8%AE%8A%E5%8B%95) The unaudited interim condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 and the Listing Rules, presented in Singapore Dollars, with the Group adopting new standards effective January 1, 2025, but not early adopting other standards not yet in effect - The unaudited interim condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 Interim Financial Reporting and the applicable disclosure provisions of the Listing Rules[100](index=100&type=chunk) - The Group adopted new standards effective January 1, 2025, but did not early adopt any other standards issued but not yet effective[101](index=101&type=chunk) [3. Operating Segment Information](index=27&type=section&id=3.%20%E7%B6%93%E7%87%9F%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group is organized into three reportable operating segments: Electronic Manufacturing Services (EMS), Original Design Manufacturing (ODM), and Investment, with EMS primarily producing subsystems, complete machines, and components for OEMs; ODM designing and manufacturing its own brand of automated equipment, precision tools, and components; and the Investment segment providing fund management services and equity securities investments, with Singapore being the primary market for revenue by customer location - The Group has three reportable operating segments: Electronic Manufacturing Services, Original Design Manufacturing, and Investment[102](index=102&type=chunk) - EMS segment's main products include complete machines such as advanced wire bonders, dicing machines, and grinding machines, as well as subsystems like equipment front-end modules[102](index=102&type=chunk) - ODM segment's main products include automatic frame loaders, automatic polishing equipment, and debonding equipment[102](index=102&type=chunk) Revenue Breakdown by Business Segment (S$ thousand) | Business Segment | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Electronic Manufacturing Services | 47,217 | 47,347 | | Original Design Manufacturing | 1,856 | 3,194 | | Investment | 1,207 | 982 | | **Total** | **50,280** | **51,523** | Revenue by Geographical Region (S$ thousand) | Region | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Singapore | 28,322 | 22,402 | | Mainland China | 7,152 | 7,250 | | United States | 6,955 | 12,031 | | Japan | 2,279 | 1,625 | | Other Countries | 4,648 | 6,759 | | **Total** | **50,280** | **51,523** | [4. Revenue](index=29&type=section&id=4.%20%E6%94%B6%E7%9B%8A) This section provides a breakdown of revenue by type of goods or services and timing of transfer of goods or services, showing that sales of goods remain the primary revenue source, while revenue from services provided has increased for the six months ended June 30, 2025 Revenue Breakdown (S$ thousand) | Type of Goods or Services | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Sales of goods | 48,531 | 50,231 | | Provision of services | 1,749 | 1,292 | | **Total** | **50,280** | **51,523** | - Revenue primarily derives from goods sold at a point in time, while revenue from services provided over time has increased[107](index=107&type=chunk) [5. Other Income](index=29&type=section&id=5.%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) This section details other income for the six months ended June 30, 2025, showing a significant decrease from S$8,766 thousand in the prior year to S$638 thousand, primarily due to a one-off book income of S$8.5 million recorded in H1 2024 Other Income Breakdown (S$ thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Bank interest income | 44 | 30 | | Government grants | 23 | 97 | | Dividend income | — | 69 | | Others | 113 | 70 | | Other investment income | 458 | 8,500 | | **Total** | **638** | **8,766** | - Other investment income significantly decreased, primarily because H1 2024 included **S$8.5 million** in book income from the maturity of an investment fund managed by Shanghai Guangpu[108](index=108&type=chunk)[109](index=109&type=chunk) [6. Other Gains and Losses](index=30&type=section&id=6.%20%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E5%8F%8A%E虧%E6%90%8D) This section provides a breakdown of other gains and losses for the six months ended June 30, 2025, indicating a shift from a gain in the prior year to a loss, primarily due to fair value losses on investment securities and reduced net foreign exchange differences Other Gains and Losses (S$ thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net foreign exchange differences | 128 | 510 | | Net fair value (loss) / gain on investment securities at fair value through profit or loss | (268) | 57 | | **Total** | **(140)** | **567** | - Fair value of investment securities shifted from a **gain of S$57 thousand** in H1 2024 to a **loss of S$268 thousand** in H1 2025[110](index=110&type=chunk) - Net foreign exchange differences decreased from **S$510 thousand** in H1 2024 to **S$128 thousand** in H1 2025[110](index=110&type=chunk) [7. Loss Before Tax / Profit Before Tax](index=30&type=section&id=7.%20%E9%99%A4%E7%A8%85%E5%89%8D%EF%BC%88%E虧%E6%90%8D%EF%BC%89%EF%BC%8F%E5%88%A9%E6%BD%A4) This section lists the expenses and income deducted/included in calculating the loss before tax for the six months ended June 30, 2025, showing a decrease in the Group's R&D expenses and employee benefit expenses Components of Loss Before Tax / Profit Before Tax (S$ thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Cost of inventories | 31,923 | 32,009 | | Depreciation of property, plant and equipment | 1,646 | 1,676 | | Research and development expenses | 1,055 | 1,418 | | Employee benefit expenses (excluding directors' and chief executive's remuneration) | 12,688 | 14,332 | | Net foreign exchange differences | (128) | (510) | | Government grants | (23) | (97) | - Research and development expenses decreased from **S$1,418 thousand** in H1 2024 to **S$1,055 thousand** in H1 2025[111](index=111&type=chunk) - Employee benefit expenses (excluding directors' and chief executive's remuneration) decreased from **S$14,332 thousand** in H1 2024 to **S$12,688 thousand** in H1 2025[111](index=111&type=chunk) [8. Income Tax Credit / (Expense)](index=31&type=section&id=8.%20%E6%89%80%E5%BE%97%E7%A8%85%E6%8A%B5%E5%85%8D%EF%BC%8F%EF%BC%88%E9%96%8B%E6%94%AF%EF%BC%89) This section lists the components of income tax credit / (expense) for the six months ended June 30, 2025, showing a shift from an income tax expense in the prior year to an income tax credit, consistent with the loss before tax Components of Income Tax Credit / (Expense) (S$ thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Current income tax credit / (expense) | 271 | (2,137) | | Underprovision in prior years | (127) | (16) | | **Income Tax Credit / (Expense)** | **144** | **(2,153)** | - The Group shifted from an income tax expense of **S$2,153 thousand** in H1 2024 to an income tax credit of **S$144 thousand** in H1 2025[112](index=112&type=chunk) [9. Loss Per Share Attributable to Owners of the Company](index=31&type=section&id=9.%20%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%93%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%B5%E6%AF%8F%E8%82%A1%E虧%E6%90%8D) This section explains the calculation of basic and diluted loss per share attributable to owners of the Company for the six months ended June 30, 2025, noting that basic loss per share was not adjusted for dilution due to the Group's recorded loss and absence of potentially dilutive ordinary shares Loss Per Share Calculation Data | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Loss for the period attributable to owners of the Company (S$ thousand) | (3,748) | (257) | | Weighted average number of ordinary shares | 920,393,394 | 920,393,394 | | Basic and diluted loss per share (Singapore cents) | (0.41) | (0.03) | - Basic and diluted loss per share expanded from **0.03 Singapore cents** in H1 2024 to **0.41 Singapore cents** in H1 2025[114](index=114&type=chunk) - Basic loss per share was not adjusted for dilution as the Group had no issued potentially dilutive ordinary shares[113](index=113&type=chunk) [10. Property, Plant and Equipment](index=31&type=section&id=10.%20%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) This section discloses the acquisitions and disposals of property, plant, and equipment for the six months ended June 30, 2025, showing a significant decrease in acquisition costs and no disposal activities during the period - For the six months ended June 30, 2025, the Group's consideration for property, plant and equipment acquisitions was approximately **S$264 thousand**, a significant decrease from **S$2,791 thousand** in the prior year period[115](index=115&type=chunk) - For the six months ended June 30, 2025, there were no disposals of property, plant and equipment with zero carrying value[116](index=116&type=chunk) [11. Investment Securities](index=32&type=section&id=11.%20%E6%8A%95%E8%B3%87%E8%AD%89%E5%88%B8) This section presents the investment securities as of June 30, 2025, indicating that the Group's investment securities primarily consist of unquoted equity investments measured at fair value through profit or loss, with the amount remaining unchanged Investment Securities (S$ thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | At fair value through profit or loss — Unquoted equity investments | 21,525 | 21,525 | [12. Investments in Associates](index=32&type=section&id=12.%20%E6%96%BC%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E7%9A%84%E6%8A%95%E8%B3%87) This section outlines Precision Group's investments in associates, including Nantong Guangpu Venture Capital Fund, Nantong Zhizao Fund, Nanyang Fund, and Liteleaf Pte Ltd., with the total investment amount decreasing Investments in Associates (S$ thousand) | Associate | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Nantong Guangpu Venture Capital Fund | 1,624 | 1,638 | | Nantong Zhizao Fund | 9,068 | 9,864 | | Nanyang Fund | 4,796 | 4,880 | | Liteleaf Pte Ltd. | 315 | 363 | | **Total** | **15,803** | **16,745** | - The Group's attributable ownership interest in Nantong Zhizao Fund and Nanyang Fund is **20%** each, and **30%** in Nantong Guangpu Venture Capital Fund[119](index=119&type=chunk) - Despite holding only approximately an **8% interest** in Liteleaf Pte Ltd., it is still considered a key associate because one of the Group's directors also serves as a director of Liteleaf[119](index=119&type=chunk) [13. Inventories](index=33&type=section&id=13.%20%E5%AD%98%E8%B2%A8) This section details the inventory breakdown as of June 30, 2025, including raw materials, work-in-progress, and finished goods, showing a slight increase in total inventory, with raw materials increasing while work-in-progress and finished goods decreased Inventories Breakdown (S$ thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Raw materials | 35,555 | 33,428 | | Work-in-progress | 4,145 | 5,659 | | Finished goods | 5,932 | 6,320 | | **Total Inventories** | **45,632** | **45,407** | - Raw material inventories increased, while finished goods and work-in-progress inventories decreased[120](index=120&type=chunk) [14. Trade Receivables](index=33&type=section&id=14.%20%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) This section provides an aging analysis of trade receivables as of June 30, 2025, indicating an increase in total trade receivables, particularly in the non-overdue and 0-30 days overdue categories Trade Receivables Aging Analysis (S$ thousand) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Neither overdue nor impaired | 16,719 | 15,843 | | 0 to 30 days | 2,927 | 2,316 | | 31 to 60 days | 476 | 1,087 | | 61 to 90 days | 179 | 163 | | Over 90 days | 228 | 54 | | **Total** | **20,529** | **19,463** | - Total trade receivables increased from **S$19,463 thousand** as of December 31, 2024, to **S$20,529 thousand** as of June 30, 2025[121](index=121&type=chunk) [15. Prepayments, Deposits and Other Receivables](index=33&type=section&id=15.%20%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85%E3%80%81%E6%8C%89%E9%87%91%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) This section details prepayments, deposits, and other receivables as of June 30, 2025, showing a slight increase in the total amount, with advances to suppliers and exchange bills increasing Prepayments, Deposits and Other Receivables Breakdown (S$ thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Advances to suppliers | 533 | 287 | | Deposits | 528 | 537 | | Prepaid goods and services tax / value added tax | 250 | 299 | | Prepayments | 599 | 579 | | Other receivables | 71 | 203 | | Exchange bills | 701 | 647 | | **Total** | **2,682** | **2,552** | - Advances to suppliers increased from **S$287 thousand** as of December 31, 2024, to **S$533 thousand** as of June 30, 2025[122](index=122&type=chunk) [16. Cash and Cash Equivalents](index=34&type=section&id=16.%20%E7%8F%BE%E9%87%91%E5%8F%8A%E7%8F%BE%E9%87%91%E7%AD%89%E5%83%B9%E7%89%A9) This section provides a breakdown of cash and cash equivalents as of June 30, 2025, categorized by currency, showing a significant decrease in total cash and cash equivalents, primarily due to a reduction in Renminbi-denominated holdings Cash and Cash Equivalents Breakdown (S$ thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and bank balances | 11,214 | 17,669 | | Short-term deposits | 15 | 15 | | **Total** | **11,229** | **17,684** | Cash and Cash Equivalents by Currency (S$ thousand) | Currency | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Denominated in Renminbi | 5,967 | 15,283 | | Denominated in US Dollars | 4,931 | 1,947 | | Denominated in Singapore Dollars | 80 | 146 | | Denominated in other currencies | 251 | 308 | | **Total** | **11,229** | **17,684** | - Total cash and cash equivalents decreased from **S$17,684 thousand** as of December 31, 2024, to **S$11,229 thousand** as of June 30, 2025, primarily due to a reduction in Renminbi-denominated holdings[123](index=123&type=chunk) [17. Trade Payables](index=34&type=section&id=17.%20%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) This section provides an aging analysis of trade payables as of June 30, 2025, indicating an increase in total trade payables, with a significant rise in payables aged 61-90 days and over 90 days Trade Payables Aging Analysis (S$ thousand) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 0 to 30 days | 3,485 | 6,898 | | 31 to 60 days | 4,787 | 4,499 | | 61 to 90 days | 4,208 | 2,497 | | Over 90 days | 5,721 | 2,991 | | **Total** | **18,201** | **16,885** | - Total trade payables increased from **S$16,885 thousand** as of December 31, 2024, to **S$18,201 thousand** as of June 30, 2025[124](index=124&type=chunk) - Trade payables aged over 90 days increased from **S$2,991 thousand** to **S$5,721 thousand**[124](index=124&type=chunk) [18. Other Payables and Accrued Expenses](index=34&type=section&id=18.%20%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%87%89%E8%A8%88%E8%B2%BB%E7%94%A8) This section details other payables and accrued expenses as of June 30, 2025, showing a decrease in the total amount, primarily due to reductions in accrued expenses and other payables Other Payables and Accrued Expenses Breakdown (S$ thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Accrued expenses | 3,073 | 4,860 | | Customer advances | 2,431 | 2,281 | | Other payables | 1,070 | 1,650 | | **Total** | **6,574** | **8,791** | - Accrued expenses decreased from **S$4,860 thousand** as of December 31, 2024, to **S$3,073 thousand** as of June 30, 2025[125](index=125&type=chunk) [19. Interest-Bearing Loans and Borrowings](index=35&type=section&id=19.%20%E8%A8%88%E6%81%AF%E8%B2%B8%E6%AC%BE%E5%8F%8A%E5%80%9F%E6%AC%BE) This section provides detailed information on interest-bearing loans and borrowings as of June 30, 2025, including lease liabilities, unsecured bank loans, secured bank loans, bank trade financing, and bank overdrafts, along with repayment period details, showing an increase in total borrowings primarily due to higher bank trade financing and bank overdrafts Interest-Bearing Loans and Borrowings Breakdown (S$ thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Lease liabilities | 2,859 | 3,637 | | Unsecured bank loans | 1,531 | 2,739 | | Secured bank loans | 1,013 | 1,020 | | Bank trade financing | 19,475 | 17,486 | | Bank overdrafts | 2,320 | 57 | | **Total** | **27,198** | **24,939** | Interest-Bearing Loans and Borrowings Repayment Period (S$ thousand) | Repayment Period | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Not exceeding 1 year | 24,591 | 21,307 | | After 1 year but not exceeding 2 years | 2,120 | 2,574 | | After 2 years but not exceeding 5 years | 487 | 1,058 | | **Total** | **27,198** | **24,939** | - Total interest-bearing loans and borrowings increased from **S$24,939 thousand** as of December 31, 2024, to **S$27,198 thousand** as of June 30, 2025[126](index=126&type=chunk) - Bank trade financing increased from **S$17,486 thousand** to **S$19,475 thousand**, and bank overdrafts significantly increased from **S$57 thousand** to **S$2,320 thousand**[126](index=126&type=chunk) [20. Share Capital](index=35&type=section&id=20.%20%E8%82%A1%E6%9C%AC) This section presents share capital information as of June 30, 2025, showing that the number and amount of issued and fully paid ordinary shares remained unchanged Share Capital (S$ thousand) | Item | Number of Shares | Amount | | :--- | :--- | :--- | | Issued and fully paid ordinary shares as of June 30, 2025 | 920,393,394 | 91,293 | - All issued shares are fully paid ordinary shares with no par value[127](index=127&type=chunk) [21. Related Party Transactions](index=36&type=section&id=21.%20%E9%97%9C%E8%81%AF%E6%96%B9%E4%BA%A4%E6%98%93) This section discloses related party transactions for the six months ended June 30, 2025, including key management personnel compensation and management and consulting fee transactions between related parties Key Management Personnel Compensation (S$ thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Short-term employee benefits | 1,478 | 1,712 | | Defined contribution benefits | 62 | 96 | | Other short-term benefits | 12 | 10 | | **Total** | **1,552** | **1,818** | | Directors of the Company | 798 | 770 | | Other key management personnel | 754 | 1,048 | Purchase and Sale of Goods and Services (S$ thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Management fees | 1,207 | 411 | | Consulting fees | (64) | (64) | - Total key management personnel compensation decreased from **S$1,818 thousand** in H1 2024 to **S$1,552 thousand** in H1 2025[128](index=128&type=chunk) - Management fee income increased from **S$411 thousand** in H1 2024 to **S$1,207 thousand** in H1 2025[129](index=129&type=chunk) [22. Financial Instruments by Category](index=36&type=section&id=22.%20%E6%8C%89%E9%A1%9E%E5%88%A5%E5%8A%83%E5%88%86%E7%9A%84%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7) This section lists the carrying amounts of financial instruments by category as of June 30, 2025, including financial assets (trade receivables, financial assets included in deposits and other receivables, cash and cash equivalents) and financial liabilities (trade payables, financial liabilities included in other payables and accrued expenses, interest-bearing loans and borrowings) Financial Assets (S$ thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade receivables | 20,529 | 19,463 | | Financial assets included in deposits and other receivables | 1,300 | 1,763 | | Cash and cash equivalents | 11,229 | 17,684 | | **Total** | **33,058** | **38,910** | Financial Liabilities (S$ thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables | 18,201 | 16,885 | | Financial liabilities included in other payables and accrued expenses | 4,143 | 6,510 | | Interest-bearing loans and borrowings | 27,384 | 25,448 | | **Total** | **49,728** | **48,843** | - Total financial assets decreased from **S$38,910 thousand** as of December 31, 2024, to **S$33,058 thousand** as of June 30, 2025[130](index=130&type=chunk) [23. Fair Value and Fair Value Hierarchy of Financial Instruments](index=37&type=section&id=23.%20%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E7%9A%84%E5%85%AC%E5%B9%B3%E5%80%BC%E5%8F%8A%E5%85%AC%E5%B9%B3%E5%80%BC%E5%B1%A4%E7%B4%9A) This section explains the fair value hierarchy classification of financial instruments (Level 1, Level 2, Level 3) and lists assets measured at fair value, noting that the Group's unquoted equity investments are classified as Level 3, with their fair value measurement reflecting the impact of sales restrictions - Fair value hierarchy is categorized into Level 1 (quoted prices in active markets), Level 2 (significant observable inputs), and Level 3 (significant unobservable inputs)[131](index=131&type=chunk)[136](index=136&type=chunk) Assets Measured at Fair Value (S$ thousand) | Item | June 30, 2025 (Level 3) | December 31, 2024 (Level 3) | | :--- | :--- | :--- | | Financial assets at fair value through profit or loss — Unquoted equity investments | 21,525 | 21,525 | - Certain shares of the Group listed on the Shanghai Stock Exchange are subject to sales restrictions for a specified period, and their fair value measurement reflects the impact of these restrictions[133](index=133&type=chunk) [24. Approval of Interim Condensed Consolidated Financial Statements](index=37&type=section&id=24.%20%E6%89%B9%E5%87%86%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) The unaudited interim condensed consolidated financial statements were approved and authorized for issue by the Board of Directors on August 22, 2025 - The unaudited interim condensed consolidated financial statements were approved and authorized for issue by the Board of Directors on August 22, 2025[134](index=134&type=chunk) [25. Dividends](index=37&type=section&id=25.%20%E8%82%A1%E6%81%AF) The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2025[135](index=135&type=chunk)