[Supplemental Announcement Regarding the Annual Report for the Year Ended December 31, 2024](index=1&type=section&id=Supplemental%20Announcement%20Regarding%20the%20Annual%20Report%20for%20the%20Year%20Ended%20December%2031%2C%202024) This section contains supplementary disclosures for the annual report, covering share option schemes and board member information [Share Option Scheme Supplementary Disclosure](index=1&type=section&id=Share%20Option%20Scheme%20Supplementary%20Disclosure) Supplementary disclosure details the 2019 share option scheme, clarifying total shares available and their proportion of issued shares Shares Available Under Share Option Scheme | Metric | Number of Shares (shares) | | :--- | :--- | | Total shares available for issuance under the Share Option Scheme as of January 1, 2024 | 120,000,000 | | Total shares available for issuance under the Share Option Scheme as of December 31, 2024 | 120,000,000 | | Total shares available for issuance under the Share Option Scheme as of the date of the Annual Report | 120,000,000 | - As of the annual report date, the total number of shares available for issuance under the share option scheme is **120,000,000 shares**, representing approximately **8.16%** of the company's issued shares (calculated based on 1,471,123,710 issued shares)[2](index=2&type=chunk) - This supplementary information does not affect other information contained in the annual report, and all other details remain unchanged[3](index=3&type=chunk) [Board of Directors Information](index=2&type=section&id=Board%20of%20Directors%20Information) The announcement discloses the updated composition of Boni International Holdings Limited's Board of Directors as of September 1, 2025 - As of September 1, 2025, the Board of Directors comprises the following members[4](index=4&type=chunk) * **Executive Directors**: Mr. Jin Guojun (Chairman), Mr. Zhao Hui * **Non-Executive Directors**: Ms. Gong Lijin, Ms. Huang Jingyi * **Independent Non-Executive Directors**: Mr. Chan Yin Chung, Mr. Chow Chi Hang, Dr. Wei Zhongzhe

[Corporate Information](index=3&type=section&id=Corporate%20Information) [Board of Directors](index=3&type=section&id=BOARD%20OF%20DIRECTORS) The Board of Directors of Sinomax Group Limited comprises executive, non-executive, and independent non-executive directors, with Lam Chi Fan as Chairman and Cheung Tung as President, while Lam Kam Cheung also serves as CFO and Company Secretary - The Board members include Executive Directors Cheung Tung (President), Chan Fung, Lam Kam Cheung (CFO and Company Secretary), Lam Fei Man; Non-executive Director Lam Chi Fan (Chairman of the Board); and Independent Non-executive Directors Wong Chi Keung, Cheung Kit, Cheung Wah Keung[5](index=5&type=chunk)[6](index=6&type=chunk) [Committees](index=3&type=section&id=AUDIT%20COMMITTEE) The company has established an Audit Committee, Nomination Committee, Remuneration Committee, and Corporate Governance Committee to ensure effective corporate governance - The Audit Committee Chairman is Wong Chi Keung, Nomination Committee Chairman is Lam Chi Fan, Remuneration Committee Chairman is Cheung Kit, and Corporate Governance Committee Chairman is Wong Chi Keung[5](index=5&type=chunk)[6](index=6&type=chunk)[8](index=8&type=chunk) [Company Secretary and Authorised Representatives](index=4&type=section&id=COMPANY%20SECRETARY) Lam Kam Cheung serves as the Company Secretary, with Cheung Tung and Lam Kam Cheung as the authorised representatives - The Company Secretary is Lam Kam Cheung, and the authorised representatives are Cheung Tung and Lam Kam Cheung[9](index=9&type=chunk) [Auditor and Legal Advisor](index=4&type=section&id=AUDITOR) PricewaterhouseCoopers serves as the company's auditor, and Maples and Calder (Hong Kong) LLP is the legal advisor - The auditor is PricewaterhouseCoopers, and the legal advisor is Maples and Calder (Hong Kong) LLP[9](index=9&type=chunk) [Trading Bankers](index=5&type=section&id=TRADING%20BANKERS) The company maintains banking relationships with several prominent banks, including China Construction Bank (Asia), Citibank Hong Kong Branch, and Hang Seng Bank - Trading bankers include China Construction Bank (Asia) Corporation Limited, Citibank Hong Kong Branch, Hang Seng Bank Limited, OCBC Wing Hang Bank Limited, The Hongkong and Shanghai Banking Corporation Limited, and United Overseas Bank Limited[10](index=10&type=chunk)[11](index=11&type=chunk) [Share Registrars](index=5&type=section&id=SHARE%20REGISTRARS) Tricor Investor Services Limited is the Hong Kong share registrar, and Maples Fund Services (Cayman) Limited is the principal share registrar in the Cayman Islands - The Hong Kong share registrar is Tricor Investor Services Limited, and the principal share registrar in the Cayman Islands is Maples Fund Services (Cayman) Limited[10](index=10&type=chunk)[11](index=11&type=chunk) [Registered Office and Headquarters](index=6&type=section&id=REGISTERED%20OFFICE) The company's registered office is in the Cayman Islands, with its headquarters and principal place of business in Hong Kong's Kowloon Bay - The registered office is located at P.O. Box 309, Ugland House, Grand Cayman KY1-1104, Cayman Islands[13](index=13&type=chunk) - The headquarters and principal place of business in Hong Kong are located at Units 2005-2007, 20th Floor, Tower 1, MegaBox, Enterprise Square Five, 38 Wang Chiu Road, Kowloon Bay, Hong Kong[14](index=14&type=chunk) [Listing Information and Investor Relations](index=6&type=section&id=LISTING%20INFORMATION) The company is listed on The Stock Exchange of Hong Kong Limited with stock code 1418 and provides investor relations contact details - The company is listed on The Stock Exchange of Hong Kong Limited with stock code **1418**[14](index=14&type=chunk) - The investor relations contact email is ir@sinomax.com[14](index=14&type=chunk) [Management Discussion and Analysis](index=7&type=section&id=MANAGEMENT%20DISCUSSION%20AND%20ANALYSIS) [Business Review](index=7&type=section&id=BUSINESS%20REVIEW) During the reporting period, the Group's total revenue decreased by **5.5%** to **HK$1,892.1 million** year-on-year, primarily due to sales declines in China and North America, offset by strong performance in Europe and other overseas markets; gross profit and profit for the period both significantly decreased due to increased indirect costs from new factory leases and reduced marketing expenses - During the reporting period (six months ended June 30, 2025), the Group's revenue decreased by approximately **HK$110.7 million** or **5.5%** year-on-year to approximately **HK$1,892.1 million**[16](index=16&type=chunk)[18](index=18&type=chunk) - Gross profit decreased by approximately **HK$64.9 million** or **12.8%** year-on-year to approximately **HK$442.4 million**, primarily due to increased indirect costs from new factory leases in Vietnam and the US in 2024[24](index=24&type=chunk)[29](index=29&type=chunk) - Profit for the period decreased by approximately **HK$43.8 million** or **59.0%** year-on-year to approximately **HK$30.4 million**[27](index=27&type=chunk)[31](index=31&type=chunk) [Revenue by Operating Segments](index=7&type=section&id=Revenue%20by%20operating%20segments) Sales in the China and North American markets decreased by **8.2%** and **14.9%** respectively, influenced by economic weakness, low consumer sentiment, intense price competition, and US tariff policies, while Europe and other overseas markets saw a **25.2%** increase due to higher sales to European customers Revenue by Operating Segments (For the six months ended June 30) | Market | 2025 (HK$’000) | 2024 (HK$’000) | Change (%) | | :--- | :--- | :--- | :--- | | China Market | 792,541 | 863,566 | -8.2% | | North American Market | 692,022 | 813,581 | -14.9% | | Europe and Other Overseas Markets | 407,564 | 325,628 | 25.2% | | **Total** | **1,892,127** | **2,002,775** | **-5.5%** | - The decline in China market sales was primarily due to a weak economy, low consumer sentiment, and intense price competition[19](index=19&type=chunk)[21](index=21&type=chunk) - The decrease in North American market sales was mainly affected by global trade fluctuations under US tariff policies, leading to increased supply chain uncertainty and operational disruptions[20](index=20&type=chunk)[21](index=21&type=chunk) - The growth in sales in Europe and other overseas markets was primarily due to increased sales to European customers[23](index=23&type=chunk)[28](index=28&type=chunk) [Costs and Expenses](index=8&type=section&id=Costs%20and%20expenses) Selling and distribution costs decreased by **7.1%** to **HK$235.1 million**, mainly due to reduced marketing and advertising expenses, while administrative expenses decreased by **4.0%** to **HK$119.2 million**, primarily due to lower staff costs - Selling and distribution costs decreased by approximately **HK$17.9 million** or **7.1%** to approximately **HK$235.1 million**, primarily due to a reduction in marketing and advertising expenses of approximately **HK$20.2 million**[25](index=25&type=chunk)[30](index=30&type=chunk) - Administrative expenses decreased by approximately **HK$5.0 million** or **4.0%** to approximately **HK$119.2 million**, mainly due to a reduction in staff costs of approximately **HK$2.8 million**[26](index=26&type=chunk)[30](index=30&type=chunk) [Liquidity, Finance and Capital Resources](index=9&type=section&id=LIQUIDITY%2C%20FINANCE%20AND%20CAPITAL%20RESOURCES) As of June 30, 2025, the Group's net current assets slightly decreased, but bank balances and cash significantly increased; net cash from operating activities substantially declined, while bank financing utilization rose, with capital expenditures primarily for plant and machinery acquisition; current and quick ratios decreased, while capital gearing and debt-to-equity ratios increased - As of June 30, 2025, the Group's net current assets were approximately **HK$353.1 million**, a decrease from **HK$370.2 million** as of December 31, 2024[32](index=32&type=chunk)[36](index=36&type=chunk) - Bank balances and cash increased by approximately **HK$85.9 million** or **32.7%** to approximately **HK$348.3 million**[32](index=32&type=chunk)[36](index=36&type=chunk) - Net cash generated from operating activities during the reporting period was approximately **HK$33.8 million**, a significant decrease from **HK$136.9 million** in the same period last year[33](index=33&type=chunk)[36](index=36&type=chunk) - Utilized bank borrowings increased from **HK$430.8 million** as of December 31, 2024, to **HK$621.2 million** as of June 30, 2025[34](index=34&type=chunk)[37](index=37&type=chunk) - Capital expenditure was approximately **HK$46.2 million**, primarily for the purchase of plant and machinery[35](index=35&type=chunk)[38](index=38&type=chunk) [Financial Ratios](index=10&type=section&id=Financial%20ratios) As of June 30, 2025, both current and quick ratios decreased, while capital gearing and debt-to-equity ratios significantly increased, reflecting a slight tightening of liquidity and higher leverage Financial Ratios | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current Ratio | 123.6% | 128.6% | | Quick Ratio | 89.6% | 91.8% | | Capital Gearing Ratio | 57.9% | 40.1% | | Debt to Equity Ratio | 23.2% | 13.9% | [Foreign Currency Exposure](index=10&type=section&id=FOREIGN%20CURRENCY%20EXPOSURE) The Group primarily faces foreign exchange risks from RMB and VND, but fluctuations of HKD against these currencies are not expected to materially impact operating results, thus no hedging instruments are used - The Group primarily operates in Hong Kong, China, the United States, and Vietnam, facing foreign exchange risks from Renminbi and Vietnamese Dong[42](index=42&type=chunk)[43](index=43&type=chunk) - Appreciation or depreciation of the Hong Kong Dollar against the Renminbi and Vietnamese Dong is not expected to have a material impact on the Group's operating results, thus no hedging instruments are used[42](index=42&type=chunk)[43](index=43&type=chunk) [Treasury Policy and Market Risks](index=11&type=section&id=TREASURY%20POLICY%20AND%20MARKET%20RISKS) The Group has a treasury policy to control treasury operations, reduce borrowing costs, and ensure sufficient cash and bank facilities for daily operations and short-term funding needs - The Group's treasury policy aims to control treasury operations and reduce borrowing costs[44](index=44&type=chunk)[47](index=47&type=chunk) - The policy requires maintaining sufficient cash and cash equivalents and bank facilities to meet daily operations and short-term funding needs[44](index=44&type=chunk)[47](index=47&type=chunk) [Prospects](index=11&type=section&id=PROSPECTS) Facing an unstable global economic environment in H1 2025, the Group anticipates continued challenges but will invest in high-growth potential businesses, consolidate strategic cooperation by increasing its stake in a European target company to **55%** to expand its customer base, and plans to deepen market expansion in Europe and the US, particularly for Mattress-in-a-box products - The global economic environment is expected to remain volatile and challenging in the coming year[45](index=45&type=chunk)[48](index=48&type=chunk) - The Group increased its equity interest in European entity M DK Holdings ApS to **55%**, making it a subsidiary, and its financial results will be consolidated into the Group's accounts in 2025[46](index=46&type=chunk)[48](index=48&type=chunk) - This strategic investment aims to strengthen business relationships, leverage operational synergies, consolidate long-term strategic cooperation, and expand the customer base[50](index=50&type=chunk)[55](index=55&type=chunk) - Looking ahead, the Group will deepen its expansion in European and US markets, with Mattress-in-a-box sales expected to continue growing[51](index=51&type=chunk)[55](index=55&type=chunk) [Future Plans for Material Investments or Capital Assets](index=12&type=section&id=FUTURE%20PLANS%20FOR%20MATERIAL%20INVESTMENTS%20OR%20CAPITAL%20ASSETS) Apart from the investment in the European target company disclosed in the "Prospects" section, the Group currently has no other plans for material investments or capital assets - Other than the investment disclosed in the 'Prospects' section, the Group has no other plans for material investments or capital assets[52](index=52&type=chunk)[56](index=56&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=12&type=section&id=PURCHASE%2C%20SALE%20OR%20REDEMPTION%20OF%20THE%20COMPANY%27S%20LISTED%20SECU RITIES) 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 reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[53](index=53&type=chunk)[57](index=57&type=chunk) [Interim Dividend](index=12&type=section&id=INTERIM%20DIVIDEND) The Board has resolved to declare an interim dividend of **HK$0.5 cents** per share, totaling approximately **HK$8.75 million**, a decrease from **HK$1.0 cents** per share in the prior year - The Board has resolved to declare an interim dividend of **HK$0.5 cents** per share for the reporting period (2024: **HK$1.0 cents** per share)[54](index=54&type=chunk)[58](index=58&type=chunk) - The total interim dividend of approximately **HK$8.75 million** will be paid in cash on October 8, 2025[54](index=54&type=chunk)[58](index=58&type=chunk) [Closure of Register of Members](index=13&type=section&id=CLOSURE%20OF%20REGISTER%20OF%20MEMBERS) The company will suspend its share transfer registration from September 16 to September 19, 2025, to determine eligibility for the interim dividend - The register of members will be closed from Tuesday, September 16, 2025, to Friday, September 19, 2025[59](index=59&type=chunk)[62](index=62&type=chunk) - The record date is September 19, 2025, and all share transfer documents must be submitted by 4:30 p.m. on September 15, 2025[59](index=59&type=chunk)[62](index=62&type=chunk) [Employee and Remuneration Policy](index=13&type=section&id=EMPLOYEE%20AND%20REMUNERATION%20POLICY) As of June 30, 2025, the Group's total workforce increased to **3,742** employees, with a corresponding rise in total staff costs; the Group offers competitive remuneration, benefits, and continuous training - As of June 30, 2025, the Group's total number of employees was **3,742** (June 30, 2024: **3,208**), indicating an increase in headcount[60](index=60&type=chunk)[63](index=63&type=chunk) - Total staff costs for the reporting period were approximately **HK$312.2 million** (2024: **HK$303.0 million**), primarily due to the increase in employee numbers[60](index=60&type=chunk)[63](index=63&type=chunk) - The Group provides competitive remuneration packages, housing and travel allowances, medical insurance, and offers induction and continuous training for new employees[61](index=61&type=chunk)[63](index=63&type=chunk) [Other Information](index=14&type=section&id=Other%20Information) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures](index=14&type=section&id=DIRECTORS%27%20AND%20CHIEF%20EXECUTIVE%27S%20INTERESTS%20AND%20SHORT%20POSITIONS%20IN%20SHARES%2C%20UNDERLYING%20SHARES%20AND%20DEBENTURES) As of June 30, 2025, the company's directors and chief executive held interests in the associated corporation Sinomax Enterprise Limited, primarily as beneficiaries of trusts - Directors Lam Chi Fan, Cheung Tung, Chan Fung, and Lam Fei Man hold shares in Sinomax Enterprise Limited as beneficiaries of trusts[67](index=67&type=chunk) Directors' Interests in Associated Corporation Sinomax Enterprise Limited | Director's Name | Nature of Interest | Number of Shares (L) | Approximate Percentage of Equity | | :--- | :--- | :--- | :--- | | Lam Chi Fan | Beneficiary of Frankie Trust | 15 | 30% | | Cheung Tung | Beneficiary of Cheung Family Trust | 5 | 10% | | Chan Fung | Beneficiary of Chan Fung Family Trust | 5 | 10% | | Lam Fei Man | Beneficiary of Lam Trust | 10 | 20% | [Interests and Short Positions of Substantial Shareholders](index=16&type=section&id=INTERESTS%20AND%20SHORT%20POSITIONS%20OF%20SUBSTANTIAL%20SHAREHOLDERS) As of June 30, 2025, Sinomax Enterprise and Vistra Trust (BVI) Limited were the company's substantial shareholders, each holding **72.91%** of the shares, primarily through trust structures Interests and Short Positions of Substantial Shareholders (As of June 30, 2025) | Name of Substantial Shareholder | Nature of Interest | Number of Shares (L) | Approximate Percentage of Equity | | :--- | :--- | :--- | :--- | | Sinomax Enterprise | Beneficial owner | 1,275,906,000 | 72.91% | | Vistra Trust (BVI) Limited | Trustee of various trusts | 1,275,906,000 | 72.91% | - Sinomax Enterprise is beneficially owned by various trusts, including Frankie Trust, Cheung Family Trust, James Family Trust, Chan Fung Family Trust, and Lam Trust[73](index=73&type=chunk) - Vistra Trust (BVI) Limited acts as trustee for Frankie Trust, James Family Trust, Cheung Family Trust, and Chan Fung Family Trust[73](index=73&type=chunk) [Share Option Scheme](index=17&type=section&id=SHARE%20OPTION%20SCHEME) The post-IPO share option scheme expired on July 9, 2024, with no outstanding share options as of June 30, 2025, and no share-based payment expenses recognized during the reporting period - The post-IPO share option scheme expired on July 9, 2024, and no further share options have been granted since then[75](index=75&type=chunk)[79](index=79&type=chunk) - As of January 1, 2025, and June 30, 2025, there were no outstanding share options under the scheme[75](index=75&type=chunk)[79](index=79&type=chunk) - No share-based payment expenses were recognized by the Group during the reporting period[228](index=228&type=chunk) [Disclosure of Information on Directors](index=17&type=section&id=DISCLOSURE%20OF%20INFORMATION%20ON%20DIRECTORS) There have been no changes in directors' biographical details requiring disclosure under the Listing Rules since the publication date of the 2024 annual report - There have been no changes in directors' biographical details requiring disclosure under Rule 13.51B(1) of the Listing Rules since the publication date of the annual report for the year ended December 31, 2024[76](index=76&type=chunk)[80](index=80&type=chunk) [Corporate Governance Practices](index=17&type=section&id=CORPORATE%20GOVERNANCE%20PRACTICES) The company is committed to maintaining high standards of corporate governance, has adopted the Corporate Governance Code in Appendix C1 Part 2 of the Listing Rules, and complied with all code provisions during the reporting period - The company has adopted the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules as its own corporate governance code[77](index=77&type=chunk)[81](index=81&type=chunk) - During the reporting period, the company complied with all code provisions contained in the Corporate Governance Code[77](index=77&type=chunk)[81](index=81&type=chunk) [Model Code for Securities Transactions](index=18&type=section&id=MODEL%20CODE%20FOR%20SECU RITIES%20TRANSACTIONS) The company has adopted a code of conduct for directors' securities transactions that is no less exacting than the Model Code, and all directors confirmed compliance with the relevant standards during the reporting period - The company has adopted a code of conduct for directors' securities transactions that is no less exacting than the standards set out in the Model Code[82](index=82&type=chunk)[85](index=85&type=chunk) - All directors confirmed their compliance with the standards for securities transactions by directors as set out in the Model Code during the reporting period[82](index=82&type=chunk)[85](index=85&type=chunk) [Review of Interim Results](index=18&type=section&id=REVIEW%20OF%20INTERIM%20RESULTS) The Board's Audit Committee, in conjunction with management, reviewed and recommended the adoption of the Group's unaudited condensed consolidated interim financial information, which PricewaterhouseCoopers has reviewed in accordance with Hong Kong Standard on Review Engagements - The Board's Audit Committee, in conjunction with management, reviewed the accounting principles and policies adopted by the Group and recommended the Board to adopt the unaudited condensed consolidated financial information[83](index=83&type=chunk)[86](index=86&type=chunk) - PricewaterhouseCoopers has reviewed the Group's unaudited condensed consolidated interim financial information for the reporting period in accordance with Hong Kong Standard on Review Engagements 2410[84](index=84&type=chunk)[86](index=86&type=chunk) [Report on Review of Interim Financial Information](index=18&type=section&id=REPORT%20ON%20REVIEW%20OF%20INTERIM%20FINANCIAL%20INFORMATION) [Introduction](index=18&type=section&id=INTRODUCTION) PricewaterhouseCoopers was engaged to review Sinomax Group Limited's condensed consolidated interim financial information for the six months ended June 30, 2025, prepared in accordance with Hong Kong Accounting Standard 34 - The auditor has reviewed Sinomax Group Limited's unaudited condensed consolidated interim financial information for the six months ended June 30, 2025[88](index=88&type=chunk)[89](index=89&type=chunk) - The financial information is prepared in compliance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 issued by the Hong Kong Institute of Certified Public Accountants[88](index=88&type=chunk)[89](index=89&type=chunk) [Scope of Review](index=20&type=section&id=SCOPE%20OF%20REVIEW) The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410, which is less extensive than an audit, thus no audit opinion is expressed, and conclusions are based solely on the review - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410, primarily involving inquiries of persons responsible for financial and accounting matters and applying analytical and other review procedures[91](index=91&type=chunk)[93](index=93&type=chunk) - The scope of a review is substantially less than an audit, and accordingly, no audit opinion is expressed[91](index=91&type=chunk)[93](index=93&type=chunk) [Conclusion](index=20&type=section&id=CONCLUSION) Based on the review, the auditor found no matters suggesting that the Group's interim financial information was not prepared in all material respects in accordance with Hong Kong Accounting Standard 34 - The auditor has not become aware of any matter that makes them believe that the Group's interim financial information is not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting'[92](index=92&type=chunk)[94](index=94&type=chunk) [Condensed Consolidated Financial Statements](index=21&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss](index=21&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20PROFIT%20OR%20LOSS) For the six months ended June 30, 2025, Group revenue decreased by **5.5%** to **HK$1,892.1 million**, gross profit decreased by **12.8%** to **HK$442.4 million**, profit for the period significantly declined by **59.0%** to **HK$30.4 million**, and basic earnings per share were **HK$1.54 cents** Key Data from Condensed Consolidated Statement of Profit or Loss (For the six months ended June 30) | Indicator | 2025 (HK$’000) | 2024 (HK$’000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,892,127 | 2,002,775 | -5.5% | | Cost of sales | (1,449,684) | (1,495,485) | -3.1% | | Gross profit | 442,443 | 507,290 | -12.8% | | Selling and distribution expenses | (235,071) | (252,982) | -7.1% | | Administrative expenses | (119,227) | (124,161) | -4.0% | | Operating profit | 53,287 | 115,842 | -54.0% | | Profit before income tax | 35,829 | 92,746 | -61.4% | | Profit for the period | 30,415 | 74,205 | -59.0% | | Profit for the period attributable to owners of the Company | 26,911 | 62,096 | -56.7% | | Basic earnings per share (cents) | 1.54 | 3.55 | -56.6% | [Condensed Consolidated Statement of Comprehensive Income](index=22&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20COMPREHENSIVE%20INCOME) For the six months ended June 30, 2025, the Group's total comprehensive income for the period was **HK$44.7 million**, a decrease from **HK$54.2 million** in the prior year, primarily impacted by exchange differences Key Data from Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (HK$’000) | 2024 (HK$’000) | | :--- | :--- | :--- | | Profit for the period | 30,415 | 74,205 | | Exchange differences on translation of overseas operations | 14,289 | (19,976) | | **Total comprehensive income for the period** | **44,704** | **54,229** | | Total comprehensive income for the period attributable to owners of the Company | 22,569 | 43,269 | | Total comprehensive income for the period attributable to non-controlling interests | 22,135 | 10,960 | - Exchange differences on translation of overseas operations turned from a loss of **HK$19.976 million** in the same period of 2024 to a gain of **HK$14.289 million** in the same period of 2025[98](index=98&type=chunk) [Condensed Consolidated Statement of Financial Position](index=23&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20FINANCIAL%20POSITION) As of June 30, 2025, the Group's total assets increased to **HK$2,727.5 million**, and total liabilities rose to **HK$1,723.0 million**; current assets saw increases in inventories, trade and other receivables, and cash and cash equivalents, while non-current lease liabilities decreased, and current unsecured bank borrowings and trade and other payables significantly increased Key Data from Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | June 30, 2025 (HK$’000) | December 31, 2024 (HK$’000) | Change (%) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Non-current assets | 880,717 | 891,892 | -1.3% | | Current assets | 1,846,790 | 1,665,094 | 10.9% | | **Total assets** | **2,727,507** | **2,556,986** | **6.7%** | | **Equity** | | | | | Equity attributable to owners of the Company | 973,524 | 973,705 | 0.0% | | Non-controlling interests | 30,959 | 26,051 | 18.8% | | **Total equity** | **1,004,483** | **999,756** | **0.5%** | | **Liabilities** | | | | | Non-current liabilities | 229,331 | 262,334 | -12.6% | | Current liabilities | 1,493,693 | 1,294,896 | 15.4% | | **Total liabilities** | **1,723,024** | **1,557,230** | **10.6%** | | **Total equity and liabilities** | **2,727,507** | **2,556,986** | **6.7%** | - Cash and cash equivalents within current assets increased from **HK$262.4 million** to **HK$348.3 million**[100](index=100&type=chunk) - Unsecured bank borrowings within current liabilities increased from **HK$401.1 million** to **HK$581.1 million**[102](index=102&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=25&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CHANGES%20IN%20EQUITY) For the six months ended June 30, 2025, equity attributable to owners of the company slightly decreased, non-controlling interests increased, and total comprehensive income for the period was **HK$44.7 million** Key Data from Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30) | Indicator | June 30, 2025 (HK$’000) | January 1, 2025 (HK$’000) | | :--- | :--- | :--- | | Subtotal of equity attributable to owners of the Company | 973,524 | 973,705 | | Non-controlling interests | 30,959 | 26,051 | | **Total equity** | **1,004,483** | **999,756** | | Profit for the period (attributable to owners of the Company) | 26,911 | - | | Exchange differences on translation of overseas operations (attributable to owners of the Company) | (4,342) | - | | **Total comprehensive income for the period (attributable to owners of the Company)** | **22,569** | - | - Statutory reserves increased from **HK$100.476 million** as of January 1, 2025, to **HK$105.321 million** as of June 30, 2025[103](index=103&type=chunk) - Dividends declared amounted to **HK$22.75 million**[103](index=103&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=26&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CASH%20FLOWS) For the six months ended June 30, 2025, net cash inflow from operating activities significantly decreased to **HK$33.8 million**; net cash outflow from investing activities was **HK$39.4 million**, while net cash inflow from financing activities was **HK$91.9 million**, resulting in a net increase in cash and cash equivalents of **HK$86.3 million** Key Data from Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Indicator | 2025 (HK$’000) | 2024 (HK$’000) | | :--- | :--- | :--- | | Net cash inflow from operating activities | 33,791 | 136,875 | | Net cash (outflow)/inflow from investing activities | (39,442) | 13,672 | | Net cash inflow/(outflow) from financing activities | 91,902 | (103,052) | | **Net increase in cash and cash equivalents** | **86,251** | **47,495** | | Cash and cash equivalents at end of period | 348,320 | 357,604 | - Net cash generated from operating activities significantly decreased by **75.3%** year-on-year[106](index=106&type=chunk) - Cash flow from financing activities shifted from an outflow last year to an inflow this year, primarily due to increased proceeds from unsecured bank borrowings[106](index=106&type=chunk) [Notes to the Condensed Consolidated Interim Financial Information](index=27&type=section&id=NOTES%20TO%20THE%20CONDENSED%20CONSOLIDATED%20INTERIM%20FINANCIAL%20INFORMATION) [1 Basis of Preparation](index=27&type=section&id=1%20BASIS%20OF%20PREPARATION) The condensed consolidated interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2024 - The financial information is prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the Hong Kong Institute of Certified Public Accountants[107](index=107&type=chunk)[111](index=111&type=chunk) - This report should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2024[107](index=107&type=chunk)[111](index=111&type=chunk) [2 Accounting Policies](index=27&type=section&id=2%20ACCOUNTING%20POLICIES) The Group's accounting policies are consistent with the previous financial year, with initial application of HKFRS amendments not expected to have a material impact; new standards and amendments not yet adopted are disclosed, with HKFRS 18 anticipated to broadly affect presentation and disclosures - The accounting policies adopted are consistent with those applied in the previous financial year and the corresponding interim reporting period, except for the initial application of amendments to Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants[108](index=108&type=chunk)[112](index=112&type=chunk) - The adopted amendments (such as HKAS 21 and HKFRS 1 amendments) had no material impact on prior period amounts and are not expected to have a material impact on current or future periods[110](index=110&type=chunk)[113](index=113&type=chunk) - HKFRS 18, effective January 1, 2027, is expected to have a pervasive impact on the presentation and disclosures in the financial statements, particularly the statement of profit or loss and management-defined performance measures[118](index=118&type=chunk)[122](index=122&type=chunk) [3 Estimation and Judgement](index=30&type=section&id=3%20ESTIMATION%20AND%20JUDGEMENT) The preparation of interim financial information involves management judgments, estimates, and assumptions, consistent with the significant judgments and sources of estimation uncertainty applied in the consolidated financial statements for the year ended December 31, 2024 - The preparation of the condensed consolidated interim financial information requires management to make judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income, and expenses[125](index=125&type=chunk)[130](index=130&type=chunk) - The key sources of estimation and judgment are consistent with those applied in the consolidated financial statements for the year ended December 31, 2024[126](index=126&type=chunk)[130](index=130&type=chunk) [4 Financial Risk Management and Financial Instruments](index=30&type=section&id=4%20FINANCIAL%20RISK%20MANAGEMENT%20AND%20FINANCIAL%20INSTRUMENT) The Group faces market risks (including foreign exchange, interest rate, and price risks), credit risk, and liquidity risk; risk management policies have not materially changed since year-end, nor have contractual undiscounted cash outflows of financial liabilities; trade receivables at FVTOCI use discounted cash flow valuation, with sensitivity analysis disclosed - The Group is exposed to market risks (including foreign exchange risk, cash flow and fair value interest rate risk, and price risk), credit risk, and liquidity risk[127](index=127&type=chunk)[131](index=131&type=chunk) - Risk management policies have not changed materially since year-end, and there have been no material changes in the contractual undiscounted cash outflows of financial liabilities[129](index=129&type=chunk)[131](index=131&type=chunk)[132](index=132&type=chunk)[134](index=134&type=chunk) - Trade receivables at fair value through other comprehensive income (FVTOCI) are valued using discounted cash flow techniques, with their fair value hierarchy classified as Level 3[138](index=138&type=chunk)[139](index=139&type=chunk) - An increase in risk-adjusted discount rates or an extension of the estimated settlement period would result in a decrease in fair value[138](index=138&type=chunk) [5 Revenue and Segment Information](index=34&type=section&id=5%20REVENUE%20AND%20SEGMENT%20INFORMATION) The Group primarily sells health and home products (e.g., pillows, mattresses) and polyurethane foam, directly through retail networks and the internet, and to wholesalers, retailers, and furniture manufacturers; revenue is segmented by China, North America, Europe, and other overseas markets - The Group primarily sells health and home products (such as memory foam pillows, mattresses, and mattress toppers) and polyurethane foam[143](index=143&type=chunk)[145](index=145&type=chunk) - Sales channels include self-operated standalone retail stores, consignment counters in department stores, and internet sales[143](index=143&type=chunk)[145](index=145&type=chunk) Revenue from Contracts with Customers by Category (For the six months ended June 30) | Product Category | 2025 (HK$’000) | 2024 (HK$’000) | | :--- | :--- | :--- | | Sales of health and home products | 1,324,940 | 1,341,486 | | Sales of polyurethane foam | 567,187 | 661,289 | | **Total** | **1,892,127** | **2,002,775** | Revenue by Geographical Market (For the six months ended June 30) | Geographical Market | 2025 (HK$’000) | 2024 (HK$’000) | | :--- | :--- | :--- | | China Market | 792,541 | 863,566 | | North American Market | 692,022 | 813,581 | | Europe and Other Overseas Markets | 407,564 | 325,628 | | **Total** | **1,892,127** | **2,002,775** | [6 Other Income](index=36&type=section&id=6%20OTHER%20INCOME) For the six months ended June 30, 2025, the Group's other income was **HK$16.8 million**, a decrease from **HK$32.2 million** in the prior year, primarily due to a reduction in other income items Other Income (For the six months ended June 30) | Item | 2025 (HK$’000) | 2024 (HK$’000) | | :--- | :--- | :--- | | Interest income | 2,240 | 3,388 | | Government grants | 690 | 911 | | Rental income | 5,257 | 5,635 | | Others | 8,655 | 22,305 | | **Total** | **16,842** | **32,239** | - Total other income decreased by **47.8%** year-on-year[149](index=149&type=chunk) [7 Other (Losses)/Gains, Net](index=36&type=section&id=7%20OTHER%20(LOSSES)%2FGAINS%2C%20NET) For the six months ended June 30, 2025, the Group recorded a net other loss of **HK$10.5 million**, compared to a net gain of **HK$3.2 million** in the prior year, primarily due to net exchange losses Other (Losses)/Gains, Net (For the six months ended June 30) | Item | 2025 (HK$’000) | 2024 (HK$’000) | | :--- | :--- | :--- | | Gain/(loss) on disposal of property, plant and equipment | 289 | (202) | | Net exchange (losses)/gains | (10,823) | 3,401 | | **Total** | **(10,534)** | **3,199** | - Net exchange differences shifted from a gain of **HK$3.401 million** in the same period of 2024 to a loss of **HK$10.823 million** in the same period of 2025[151](index=151&type=chunk) [8 Finance Costs](index=37&type=section&id=8%20FINANCE%20COSTS) For the six months ended June 30, 2025, the Group's finance costs increased to **HK$24.7 million**, primarily due to higher interest on bank borrowings and lease liabilities Finance Costs (For the six months ended June 30) | Item | 2025 (HK$’000) | 2024 (HK$’000) | | :--- | :--- | :--- | | Interest on bank borrowings | 13,759 | 12,585 | | Interest on lease liabilities | 9,513 | 7,720 | | Interest and fees on factoring of trade receivables | 1,477 | 2,791 | | **Total** | **24,749** | **23,096** | - Total finance costs increased by **7.1%** year-on-year[153](index=153&type=chunk) [9 Income Tax Expense](index=37&type=section&id=9%20INCOME%20TAX%20EXPENSE) For the six months ended June 30, 2025, the Group's income tax expense significantly decreased to **HK$5.4 million**, with the effective tax rate falling to **15%**, mainly due to underperformance of certain Chinese subsidiaries Income Tax Expense (For the six months ended June 30) | Item | 2025 (HK$’000) | 2024 (HK$’000) | | :--- | :--- | :--- | | Hong Kong profits tax | 3,339 | 1,529 | | PRC enterprise income tax | 5,812 | 12,942 | | PRC withholding tax | 1,077 | 1,203 | | Overseas income tax | 222 | 4,148 | | Deferred tax | (5,036) | (1,281) | | **Total** | **5,414** | **18,541** | - The estimated average annual tax rate decreased from **20%** in the same period of 2024 to **15%** in the same period of 2025[155](index=155&type=chunk)[156](index=156&type=chunk) - The lower effective tax rate was primarily due to the underperformance of certain subsidiaries in China subject to higher statutory tax rates[155](index=155&type=chunk)[156](index=156&type=chunk) [10 Profit for the Period](index=38&type=section&id=10%20PROFIT%20FOR%20THE%20PERIOD) For the six months ended June 30, 2025, profit for the period was **HK$30.4 million**, influenced by factors such as inventory costs, staff costs, depreciation and amortization, and marketing expenses Key Factors Affecting Profit for the Period (For the six months ended June 30) | Item | 2025 (HK$’000) | 2024 (HK$’000) | | :--- | :--- | :--- | | Cost of inventories recognized | 1,104,100 | 1,161,730 | | Total staff costs | 312,243 | 302,983 | | Depreciation of property, plant and equipment | 43,138 | 35,751 | | Depreciation of right-of-use assets | 45,571 | 39,261 | | Marketing expenses | 62,210 | 82,443 | - Total staff costs increased, primarily due to an increase in employee numbers[159](index=159&type=chunk) - Marketing expenses significantly decreased[159](index=159&type=chunk) [11 Earnings Per Share](index=39&type=section&id=11%20EARNINGS%20PER%20SHARE) For the six months ended June 30, 2025, both basic and diluted earnings per share were **HK$1.54 cents**, a significant decrease from **HK$3.55 cents** in the prior year, with no significant dilutive effect due to option exercise prices being higher than the average share price Earnings Per Share Data (For the six months ended June 30) | Indicator | 2025 (HK$’000/Number of shares) | 2024 (HK$’000/Number of shares) | | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company | 26,911 | 62,096 | | Weighted average number of ordinary shares for basic earnings per share | 1,750,002,000 | 1,750,002,000 | | **Basic earnings per share (cents)** | **1.54** | **3.55** | | **Diluted earnings per share (cents)** | **1.54** | **3.55** | - Diluted earnings per share for the six months ended June 30, 2025, and 2024 were equal to basic earnings per share, as the outstanding share options had no dilutive effect because the exercise price of each option was higher than the average share price during the period[162](index=162&type=chunk) [12 Dividend](index=40&type=section&id=12%20DIVIDEND) The Board has decided to declare an interim dividend of **HK$0.5 cents** per share for the six months ended June 30, 2025, totaling approximately **HK$8.75 million**, to be paid on October 8, 2025 - The Board has decided to declare an interim dividend of **HK$0.5 cents** per share (2024: **HK$1.0 cents** per share)[164](index=164&type=chunk)[165](index=165&type=chunk) - The total dividend of approximately **HK$8.75 million** will be paid in cash on October 8, 2025[164](index=164&type=chunk)[165](index=165&type=chunk) [13 Property, Plant and Equipment, Right-of-Use Assets, Investment Properties, Goodwill and Intangible Assets](index=40&type=section&id=13%20PROPERTY%2C%20PLANT%20AND%20EQUIPMENT%2C%20RIGHT-OF-USE%20ASSETS%2C%20INVESTMENT%20PROPERTIES%2C%20GOODWILL%20AND%20INTANGIBLE%20ASSETS) As of June 30, 2025, the carrying amounts of the Group's property, plant and equipment, right-of-use assets, investment properties, goodwill, and intangible assets all changed; management assessed impairment for cash-generating units in the US and China, recognizing no impairment, but sensitivity analysis indicates that a slight decrease in growth rate could lead to impairment Changes in Carrying Amounts of Assets (As of June 30) | Asset Category | June 30, 2025 (HK$’000) | January 1, 2025 (HK$’000) | | :--- | :--- | :--- | | Property, plant and equipment | 426,826 | 415,760 | | Right-of-use assets | 264,720 | 299,327 | | Investment properties | 23,669 | 28,026 | | Goodwill | 5,318 | 5,170 | | Intangible assets | 6,732 | 7,621 | - During the reporting period, additions to property, plant and equipment amounted to **HK$46.236 million**, and additions to right-of-use assets amounted to **HK$10.462 million**[167](index=167&type=chunk) - Management performed impairment assessments for property, plant and equipment and right-of-use assets of cash-generating units in the US and China, with no impairment recognized[171](index=171&type=chunk)[173](index=173&type=chunk)[176](index=176&type=chunk)[178](index=178&type=chunk) - If the average growth rate of the US cash-generating unit decreases by **1%**, an impairment of **HK$18.29 million** would be recognized[175](index=175&type=chunk)[178](index=178&type=chunk) - If the average growth rate of the Dormeo cash-generating unit decreases by **1%**, an impairment of **HK$4.665 million** would be recognized[183](index=183&type=chunk)[185](index=185&type=chunk) [14 Interest in an Associate](index=45&type=section&id=14%20INTEREST%20IN%20AN%20ASSOCIATE) As of June 30, 2025, the Group's interest in associate M DK Holdings ApS was **HK$70.016 million**, an increase from the beginning of the year, primarily due to its share of the associate's profit and exchange differences Changes in Interest in an Associate (For the six months ended June 30) | Item | 2025 (HK$’000) | 2024 (HK$’000) | | :--- | :--- | :--- | | At January 1 | 54,654 | – | | Share of profit of an associate | 7,291 | – | | Exchange differences | 8,071 | – | | **At June 30** | **70,016** | **–** | - The Group holds a **45%** ownership interest in M DK Holdings ApS, a Danish associate, accounted for using the equity method[189](index=189&type=chunk) [15 Inventories](index=46&type=section&id=15%20INVENTORIES) As of June 30, 2025, the Group's total inventories amounted to **HK$509.082 million**, an increase from December 31, 2024, driven by increases in raw materials and work-in-progress; inventory impairment provision was approximately **HK$78.142 million** Composition of Inventories (As of June 30) | Item | June 30, 2025 (HK$’000) | December 31, 2024 (HK$’000) | | :--- | :--- | :--- | | Raw materials | 206,469 | 199,443 | | Work-in-progress | 76,306 | 43,242 | | Finished goods | 226,307 | 233,863 | | **Total** | **509,082** | **476,548** | - Cost of inventories recognized was **HK$1,104.1 million**[191](index=191&type=chunk)[193](index=193&type=chunk) - Inventory impairment provision was approximately **HK$78.142 million**[192](index=192&type=chunk)[193](index=193&type=chunk) [16 Trade Receivables, Deposits, Prepayments and Other Receivables](index=47&type=section&id=16%20TRADE%20RECEIVABLES%2C%20DEPOSITS%2C%20PREPAYMENTS%20AND%20OTHER%20RECEIVABLES) As of June 30, 2025, net trade receivables increased to **HK$697.3 million**, and total trade and other receivables rose to **HK$857.4 million**; credit terms typically range from 7 to 120 days Composition of Trade and Other Receivables (As of June 30) | Item | June 30, 2025 (HK$’000) | December 31, 2024 (HK$’000) | | :--- | :--- | :--- | | Trade receivables, net | 697,318 | 626,007 | | Deposits, prepayments and other receivables | 160,055 | 181,088 | | **Total trade and other receivables** | **857,373** | **807,095** | - Credit terms for trade receivables typically range from **7 to 120 days**[198](index=198&type=chunk)[200](index=200&type=chunk) Ageing Analysis of Trade Receivables (As of June 30) | Ageing | June 30, 2025 (HK$’000) | December 31, 2024 (HK$’000) | | :--- | :--- | :--- | | Within 30 days | 327,188 | 299,538 | | 31 to 60 days | 202,000 | 182,853 | | 61 to 90 days | 94,610 | 96,867 | | 91 to 180 days | 67,949 | 32,678 | | 181 to 365 days | 532 | 14,071 | | Over 365 days | 5,039 | – | | **Total** | **697,318** | **626,007** | [17 Bill Receivables](index=49&type=section&id=17%20BILL%20RECEIVABLES) As of June 30, 2025, total bill receivables amounted to **HK$112.559 million**, with most endorsed to settle trade payables, and all bills maturing within one year Ageing Analysis of Bill Receivables (As of June 30) | Ageing | June 30, 2025 (HK$’000) | December 31, 2024 (HK$’000) | | :--- | :--- | :--- | | Within 30 days | 27,643 | 23,374 | | 31 to 60 days | 18,369 | 18,956 | | 61 to 90 days | 16,188 | 23,810 | | 91 to 180 days | 50,267 | 43,704 | | 181 to 365 days | 92 | 2,521 | | **Total** | **112,559** | **112,365** | - Approximately **HK$92.16 million** of bill receivables were endorsed to settle trade payables[203](index=203&type=chunk)[204](index=204&type=chunk) - All bill receivables have maturity periods of less than one year[203](index=203&type=chunk)[204](index=204&type=chunk) [18 Trade Receivables at Fair Value Through Other Comprehensive Income ("FVTOCI")](index=50&type=section&id=18%20TRADE%20RECEIVABLES%20AT%20FAIR%20VALUE%20THROUGH%20OTHER%20COMPREHENSIVE%20INCOME%20(%22FVTOCI%22)) The Group sells certain trade receivables (whose cash flows are solely principal and interest payments) to financial institutions via non-recourse factoring arrangements, classifying them as FVTOCI financial assets; as of June 30, 2025, the effective interest rate for FVTOCI trade receivables ranged from **5.45%** to **6.95%** - The Group sells certain trade receivables through non-recourse factoring arrangements to financial institutions, classifying them as FVTOCI financial assets[206](index=206&type=chunk)[208](index=208&type=chunk) - As of June 30, 2025, the effective interest rate for FVTOCI trade receivables ranged from **5.45% to 6.95%** per annum[207](index=207&type=chunk)[208](index=208&type=chunk) - Fair value changes were not material and were not recognized as FVTOCI reserves in equity[207](index=207&type=chunk)[208](index=208&type=chunk) [19 Trade and Other Payables](index=51&type=section&id=19%20TRADE%20AND%20OTHER%20PAYABLES) As of June 30, 2025, total trade payables were **HK$470.4 million**, and total trade and other payables were **HK$762.2 million**; credit terms range from 30 to 60 days Composition of Trade and Other Payables (As of June 30) | Item | June 30, 2025 (HK$’000) | December 31, 2024 (HK$’000) | | :--- | :--- | :--- | | Trade payables | 470,404 | 487,035 | | Accrued operating expenses | 130,633 | 90,303 | | Accrued salaries | 65,002 | 89,572 | | Other taxes payable | 19,487 | 27,700 | | Accrued right-of-use fees | 35,639 | 33,226 | | Refundable deposits received | 8,717 | 9,794 | | Dividends payable | 26,733 | – | | Deferred government grants | 701 | 869 | | Other payables and accrued expenses | 4,880 | 5,361 | | **Total trade and other payables** | **762,196** | **743,860** | - Credit terms for trade payables range from **30 to 60 days**[213](index=213&type=chunk)[214](index=214&type=chunk) Ageing Analysis of Trade Payables (As of June 30) | Ageing | June 30, 2025 (HK$’000) | December 31, 2024 (HK$’000) | | :--- | :--- | :--- | | Within 30 days | 275,696 | 302,254 | | 31 to 60 days | 113,793 | 96,598 | | 61 to 90 days | 28,139 | 38,806 | | 91 to 180 days | 45,627 | 39,894 | | Over 180 days | 7,149 | 9,483 | | **Total** | **470,404** | **487,035** | [20 Bill Payables](index=53&type=section&id=20%20BILL%20PAYABLES) As of June 30, 2025, total bill payables amounted to **HK$40.083 million**, guaranteed by the company and certain of its subsidiaries Ageing Analysis of Bill Payables (As of June 30) | Ageing | June 30, 2025 (HK$’000) | December 31, 2024 (HK$’000) | | :--- | :--- | :--- | | Within 30 days | 13,161 | 3,305 | | 31 to 60

[Company Information and Regulatory Statements](index=1&type=section&id=Company%20Information%20and%20Regulatory%20Statements) This section provides an overview of the company's listing details and the regulatory disclaimers associated with its GEM market presence [Company Overview](index=1&type=section&id=Company%20Overview) This report is the 2025 interim report for China Everbright Greentech Group Limited (Stock Code: 8128), incorporated in the Cayman Islands and listed on the GEM of the Hong Kong Stock Exchange - Company name: China Everbright Greentech Group Limited, Stock Code: **8128**[2](index=2&type=chunk) - The company is incorporated in the Cayman Islands and listed on the **GEM of the Hong Kong Stock Exchange**[1](index=1&type=chunk)[2](index=2&type=chunk) [GEM Listing Characteristics and Disclaimer](index=2&type=section&id=GEM%20Listing%20Characteristics%20and%20Disclaimer) The GEM market provides a listing platform for small and medium-sized companies with higher investment risks and no guaranteed liquidity; HKEX disclaims responsibility for this report, with directors jointly ensuring its accuracy and completeness - The GEM market provides a listing platform for small and medium-sized companies, entailing **higher investment risks** and market volatility with **no guaranteed liquidity**[3](index=3&type=chunk) - Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take **no responsibility for the contents** of this report, with the company's directors jointly assuming responsibility for its accuracy, completeness, and non-misleading nature[3](index=3&type=chunk) [Financial Highlights and Review](index=3&type=section&id=Financial%20Highlights%20and%20Review) This section summarizes the Group's key financial performance and position for the interim period, highlighting revenue, profit, and balance sheet changes [Financial Highlights](index=3&type=section&id=Financial%20Highlights) For the six months ended June 30, 2025, the company reported revenue of approximately **32.47 million HKD**, a net profit after tax of approximately **3.66 million HKD**, and no dividends declared 2025 Interim Financial Highlights | Metric | Six Months Ended June 30, 2025 (thousand HKD) | | :--- | :--- | | Revenue | 32,469 | | Net Profit After Tax | 3,662 | | Dividends Declared | None | [Financial Review](index=3&type=section&id=Financial%20Review) The Group's revenue slightly increased by **3.17%** to **32.47 million HKD**, with profit significantly rising to **3.66 million HKD**, driven by improved gross margin, increased other income, and higher share of profits from associates/joint ventures; sales and distribution expenses decreased, while administrative expenses rose due to increased legal fees Revenue and Profit Overview (thousand HKD) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | 32,469 | 31,472 | | Profit for the Period | 3,662 | 159 | | Profit Attributable to Owners of the Parent | 3,948 | 176 | - Revenue slightly increased by **3.17%** year-on-year, with principal business income of approximately **32.47 million HKD**[10](index=10&type=chunk) - Profit for the period significantly increased to **3.66 million HKD**, primarily due to higher gross margin, increased other income (including **6.51 million HKD** in government grants), and a greater share of profits from associates and joint ventures[10](index=10&type=chunk)[11](index=11&type=chunk) - Sales and distribution expenses decreased year-on-year, while administrative expenses increased by **7.46%** due to higher legal service fees[10](index=10&type=chunk) [Financial Position](index=5&type=section&id=Financial%20Position) As of June 30, 2025, the Group's contract value on hand increased to **80 million HKD**, net current liabilities improved, and the gearing ratio decreased to **46%**, with no significant asset pledges, M&A, or material contingent liabilities during the period - Contract value on hand increased to approximately **80 million HKD**, a significant increase from **50 million HKD** in the prior year[13](index=13&type=chunk) - Net current liabilities improved to approximately **5.91 million HKD** (December 31, 2024: **10.17 million HKD**)[14](index=14&type=chunk) - Gearing ratio decreased to **46%** (December 31, 2024: **49%**), indicating reduced financial leverage[14](index=14&type=chunk) - There were no significant asset pledges, material acquisitions or disposals, or material contingent liabilities during the period[15](index=15&type=chunk)[16](index=16&type=chunk)[18](index=18&type=chunk) [Business Review and Outlook](index=6&type=section&id=Business%20Review%20and%20Outlook) This section reviews the Group's operational performance, outlines strategic directions, and discusses the employee situation and policy support [Operating Performance Review](index=6&type=section&id=Operating%20Performance%20Review) During the review period, the Group's operating revenue slightly increased, and gross margin improved, primarily due to cost control and design optimization - The Group's operating revenue slightly increased, and gross margin improved, primarily attributable to **cost control and design optimization**[20](index=20&type=chunk) [Strategy and Development Direction](index=6&type=section&id=Strategy%20and%20Development%20Direction) The Group actively promotes an exclusive agency system for integrated geothermal heat pump projects, focusing on market expansion, strengthening project management and independent accounting, and enhancing cash flow management and financial risk prevention, supported by national policies for renewable energy substitution - Implementing an exclusive agency system for new green industrial projects integrating geothermal heat pumps for efficient and clean heating, with **market expansion as the primary focus**[20](index=20&type=chunk) - Focusing on core business, prioritizing cooperation with **well-funded and reputable projects**, accelerating the conversion of ongoing projects' output value, and strengthening the **independent project accounting system**[22](index=22&type=chunk) - Strengthening cash flow management, preventing financial risks, improving the cash flow management system, revitalizing cash flow, and enhancing financial control[22](index=22&type=chunk) - The National Development and Reform Commission and five other departments issued the 'Guiding Opinions on Vigorously Implementing Renewable Energy Substitution Actions,' providing **favorable policy support** for the Group's promotion of shallow geothermal energy[22](index=22&type=chunk) [Staff Information](index=6&type=section&id=Staff%20Information) As of June 30, 2025, the Group employed approximately **181 staff members**, with remuneration determined by performance, experience, position, and responsibilities Number of Employees | Date | Number of Employees | | :--- | :--- | | 2025年6月30日 | 181 | | 2024年12月31日 | 193 | - Staff remuneration is determined by their **performance, experience, position, and responsibilities**[19](index=19&type=chunk) [Condensed Consolidated Financial Statements](index=8&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the Group's interim financial statements, including profit or loss, comprehensive income, financial position, equity changes, and cash flows [Condensed Consolidated Statement of Profit or Loss](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the Group reported revenue of **32.47 million HKD**, gross profit of **9.21 million HKD**, profit for the period of **3.66 million HKD**, and basic earnings per share attributable to owners of the parent of **0.09 HK cents** Key Data from Condensed Consolidated Statement of Profit or Loss (thousand HKD) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | 32,469 | 31,472 | | Cost of Sales | (23,261) | (22,773) | | Gross Profit | 9,208 | 8,699 | | Other Income and Gains | 11,143 | 4,730 | | Selling and Distribution Expenses | (4,579) | (5,048) | | Administrative Expenses | (17,446) | (16,235) | | Finance Costs | (1,531) | (1,817) | | Profit for the Period | 3,662 | 159 | | Profit Attributable to Owners of the Parent | 3,948 | 176 | | Basic Earnings Per Share (HK cents) | 0.09 | 0.003 | [Condensed Consolidated Statement of Comprehensive Income](index=10&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, total comprehensive income for the period was **7.54 million HKD**, primarily influenced by exchange differences and the share of other comprehensive income from associates Key Data from Condensed Consolidated Statement of Comprehensive Income (thousand HKD) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Profit for the Period | 3,662 | 159 | | Exchange Differences Arising from Translation of Foreign Operations | 993 | (1,451) | | Share of Other Comprehensive Income (Loss) of Associates | 3,110 | (157) | | Total Comprehensive Income (Loss) for the Period | 7,543 | (1,787) | | Attributable to Owners of the Parent | 7,559 | (1,706) | [Condensed Consolidated Statement of Financial Position](index=11&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets were **834.24 million HKD**, total liabilities were **541.42 million HKD**, and net assets increased to **292.82 million HKD**, with an improvement in net current liabilities Key Data from Condensed Consolidated Statement of Financial Position (thousand HKD) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Non-current Assets | 393,950 | 398,982 | | Total Current Assets | 440,285 | 457,820 | | Total Current Liabilities | 446,199 | 467,988 | | Net Current (Liabilities) | (5,914) | (10,168) | | Net Assets | 292,816 | 284,100 | | Total Equity | 292,816 | 284,100 | [Condensed Consolidated Statement of Changes in Equity](index=13&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, equity attributable to owners of the parent increased to **274.77 million HKD**, and total equity rose to **292.82 million HKD**, primarily influenced by profit for the period and other comprehensive income Key Data from Condensed Consolidated Statement of Changes in Equity (thousand HKD) | Metric | June 30, 2025 (Unaudited) | January 1, 2024 (Audited) | | :--- | :--- | :--- | | Total Attributable to Owners of the Parent | 274,775 | 249,924 | | Non-controlling Interests | 18,042 | 28,666 | | Total Equity | 292,816 | 278,590 | | Profit for the Period | 3,662 | 159 | | Total Comprehensive Income for the Period | 8,717 | (2,105) | [Condensed Consolidated Statement of Cash Flows](index=14&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash outflow from operating activities was **9.19 million HKD**, net cash inflow from investing activities was **2.21 million HKD**, and net cash inflow from financing activities was **1.18 million HKD**, resulting in a net decrease of **5.80 million HKD** in cash and cash equivalents Key Data from Condensed Consolidated Statement of Cash Flows (thousand HKD) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net Cash From (Used In) Operating Activities | (9,190) | (14,331) | | Net Cash From Investing Activities | 2,212 | 937 | | Net Cash From (Used In) Financing Activities | 1,175 | – | | Net Increase (Decrease) in Cash and Cash Equivalents | (5,803) | (13,394) | | Cash and Cash Equivalents at End of Period | 46,353 | 53,110 | [Notes to the Financial Statements](index=15&type=section&id=Notes%20to%20the%20Financial%20Statements) This section provides detailed notes on the Group's accounting policies, segment information, revenue breakdown, finance costs, tax, dividends, and financial instruments [Company Information and Accounting Policies](index=15&type=section&id=Company%20Information%20and%20Accounting%20Policies) The company's principal businesses include shallow geothermal energy systems, air/shallow geothermal heat pump sales, property investment, and securities trading; interim financial statements are prepared in accordance with GEM Listing Rules and HKAS 34, with consistent accounting policies and no material impact from new accounting standards adoption - The Group's principal businesses include providing, installing, and maintaining **shallow geothermal energy utilization systems**; selling **air/shallow geothermal heat pump products**; property investment for potential rental income; and securities trading and other investments[33](index=33&type=chunk) - The condensed consolidated interim financial statements are prepared in accordance with Chapter 18 of the **GEM Listing Rules** and **HKAS 34**, with accounting policies consistent with the annual financial statements for the year ended December 31, 2024[32](index=32&type=chunk)[34](index=34&type=chunk) [Operating Segment Information](index=16&type=section&id=Operating%20Segment%20Information) The Group's operations are divided into four segments: shallow geothermal energy, air/shallow geothermal heat pumps, property investment and development, and securities investment and trading; the shallow geothermal energy segment contributes the majority of revenue and results, while property investment and development revenue significantly increased - The Group's operating segments include **shallow geothermal energy**, **air/shallow geothermal heat pumps**, **property investment and development**, and **securities investment and trading**[37](index=37&type=chunk) Segment Revenue (thousand HKD) | Segment | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Shallow Geothermal Energy | 29,586 | 30,617 | | Air/Shallow Geothermal Heat Pumps | 101 | 635 | | Property Investment and Development | 2,782 | 220 | | Securities Investment and Trading | – | – | | Total Sales to External Customers | 32,469 | 31,472 | Segment Results (thousand HKD) | Segment | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Shallow Geothermal Energy | 10,059 | 9,185 | | Air/Shallow Geothermal Heat Pumps | 18 | 635 | | Property Investment and Development | 1,254 | 220 | | Securities Investment and Trading | – | – | | Total Segment Results | 11,331 | 9,500 | [Revenue, Other Income and Gains](index=19&type=section&id=Revenue%2C%20Other%20Income%20and%20Gains) The Group's total revenue was **32.47 million HKD**, comprising **29.69 million HKD** from contracts with customers and **2.78 million HKD** from rental income; other income significantly increased to **11.14 million HKD**, primarily due to **6.52 million HKD** in government grants Revenue Analysis (thousand HKD) | Revenue Source | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenue from Contracts with Customers | 29,687 | 31,252 | | Rental Income | 2,782 | 220 | | Total Revenue | 32,469 | 31,472 | Other Income (thousand HKD) | Other Income Source | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Interest Income | 1,570 | 1,749 | | Dividend Income | 2,283 | 1,221 | | Subsidy Income | 6,519 | – | | Others | 771 | 1,695 | | Total | 11,143 | 4,730 | - Revenue from contracts with customers primarily derived from **construction services (shallow geothermal energy)** and **industrial product sales (air/shallow geothermal heat pumps)** in Mainland China[45](index=45&type=chunk)[46](index=46&type=chunk) [Finance Costs](index=24&type=section&id=Finance%20Costs) For the six months ended June 30, 2025, finance costs were **1.41 million HKD**, primarily consisting of interest on lease liabilities, with bank loan interest reduced to zero Finance Costs Analysis (thousand HKD) | Source of Finance Costs | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Interest on Bank and Other Borrowings | – | 392 | | Interest on Lease Liabilities | 1,408 | 1,425 | | Total | 1,408 | 1,817 | [Profit (Loss) Before Tax](index=24&type=section&id=Profit%20%28Loss%29%20Before%20Tax) For the six months ended June 30, 2025, profit before tax was **3.84 million HKD**, after deducting costs of inventories sold, costs of services provided, depreciation, and staff welfare expenses Deductions for Profit (Loss) Before Tax (thousand HKD) | Deduction Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Cost of Inventories Sold | 9,991 | 9,782 | | Cost of Services Provided | 13,270 | 12,981 | | Depreciation | 1,839 | 2,270 | | Staff Welfare Expenses | 8,087 | 12,400 | [Income Tax Expense](index=25&type=section&id=Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense was **0.17 million HKD**, primarily current tax in Mainland China; some Chinese subsidiaries, as high-tech enterprises, enjoy a **15% preferential tax rate** Income Tax Expense (thousand HKD) | Tax Type | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Current - Mainland China | 173 | 53 | | Over-provision in Prior Years | – | (3,015) | | Deferred | – | – | | Total Tax Charged for the Period | 173 | (2,962) | - Certain PRC subsidiaries, as high-tech enterprises, enjoy a **preferential income tax rate of 15%**[55](index=55&type=chunk) [Dividends](index=25&type=section&id=Dividends) For the six months ended June 30, 2025, the company neither paid, declared, nor proposed any interim dividends - No interim dividends were paid, declared, or proposed for the six months ended June 30, 2025[57](index=57&type=chunk) [Earnings (Loss) Per Share Attributable to Ordinary Equity Holders of the Parent](index=26&type=section&id=Earnings%20%28Loss%29%20Per%20Share%20Attributable%20to%20Ordinary%20Equity%20Holders%20of%20the%20Parent) For the six months ended June 30, 2025, basic earnings per share attributable to ordinary equity holders of the parent was **0.09 HK cents**, a significant increase from the prior year Earnings (Loss) Per Share Analysis | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Profit (Loss) Attributable to Ordinary Equity Holders of the Parent (thousand HKD) | 3,948 | 176 | | Weighted Average Number of Ordinary Shares in Issue (thousand shares) | 4,513,234 | 4,526,925 | | Basic Earnings Per Share (HK cents) | 0.09 | 0.003 | [Property, Plant and Equipment](index=26&type=section&id=Property%2C%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the Group did not make any significant acquisitions of property, plant, and equipment - The Group did not make any **significant acquisitions of property, plant, and equipment** for the six months ended June 30, 2025[60](index=60&type=chunk) [Trade Receivables](index=27&type=section&id=Trade%20Receivables) As of June 30, 2025, net trade receivables were **3.17 million HKD**, with a typical credit period of three months; the Group maintains strict control over outstanding receivables and has no significant concentration of credit risk Ageing Analysis of Trade Receivables (thousand HKD) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 90 days | 2,433 | 3,997 | | 91 to 180 days | 89 | 116 | | 181 to 365 days | 297 | 282 | | Over 365 days | 355 | 416 | | Total | 3,174 | 4,811 | - The Group primarily enters into transactions with customers on credit terms, with a typical credit period of **three months**, and maintains a credit control department to mitigate credit risk[62](index=62&type=chunk) [Trade Payables and Bills Payable](index=28&type=section&id=Trade%20Payables%20and%20Bills%20Payable) As of June 30, 2025, total trade payables and bills payable were **119.60 million HKD**, a decrease from the end of 2024, and are typically settled within six months Ageing Analysis of Trade Payables and Bills Payable (thousand HKD) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 90 days | 15,271 | 22,968 | | 91 to 180 days | 13,587 | 13,867 | | 181 to 365 days | 11,884 | 17,048 | | Over 365 days | 78,854 | 85,486 | | Total | 119,596 | 139,369 | - Trade payables and bills payable are **interest-free** and generally settled within **six months**[64](index=64&type=chunk) [Share Capital](index=28&type=section&id=Share%20Capital) As of June 30, 2025, the company's issued and fully paid ordinary share capital was **353.04 million HKD**, with **4,523,909 thousand shares** outstanding Share Capital Information | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Issued and Fully Paid Ordinary Shares (thousand shares) | 4,523,909 | 4,505,573 | | Share Capital (thousand HKD) | 353,043 | 353,043 | [Capital Commitments](index=28&type=section&id=Capital%20Commitments) The Group had no material capital commitments at the end of the reporting period - The Group had **no material capital commitments** at the end of the reporting period[66](index=66&type=chunk) [Related Party Transactions](index=29&type=section&id=Related%20Party%20Transactions) The Group had receivables/payables with related parties and engaged in transactions such as key management personnel remuneration and rental expenses from associates Related Party Transactions (thousand HKD) | Transaction Type | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Remuneration for Key Management Personnel of the Group | 3,956 | 3,820 | | Rental Expenses from Associates | 330 | 330 | - Amounts due from/to related companies and associates are included in the condensed consolidated statement of financial position[68](index=68&type=chunk) [Fair Value of Financial Instruments](index=30&type=section&id=Fair%20Value%20of%20Financial%20Instruments) The Group's financial instruments, including trade receivables, equity investments designated at fair value through other comprehensive income, and financial assets at fair value through profit or loss, have carrying amounts that approximate their fair values Carrying Amount and Fair Value of Financial Assets (thousand HKD) | Financial Assets | June 30, 2025 (Carrying Amount) | December 31, 2024 (Carrying Amount) | June 30, 2025 (Fair Value) | December 31, 2024 (Fair Value) | | :--- | :--- | :--- | :--- | :--- | | Trade Receivables, Non-current Portion | 46,921 | 55,332 | 46,921 | 55,332 | | Equity Investments Designated at Fair Value Through Other Comprehensive Income | 55,500 | 54,661 | 55,500 | 54,661 | | Financial Assets at Fair Value Through Profit or Loss | 4,461 | 4,895 | 4,461 | 4,895 | | Total | 106,882 | 114,888 | 106,882 | 114,888 | - The carrying amounts of the Group's financial instruments are **reasonably close to their fair values**[69](index=69&type=chunk) [Share Capital and Corporate Governance](index=31&type=section&id=Share%20Capital%20and%20Corporate%20Governance) This section details directors' and substantial shareholders' interests, share schemes, corporate governance practices, and recent changes in company structure and auditor [Directors' and Chief Executive's Interests](index=31&type=section&id=Directors%27%20and%20Chief%20Executive%27s%20Interests) As of June 30, 2025, several directors and the chief executive held company shares, with Mr. Xu Shengheng and his spouse collectively holding **15.99%** of voting shares, and Mr. Zhang Yiying and his controlled corporations holding **5.65%**; no directors held short positions in the company's or associated corporations' debt securities or equity derivatives during the period Shareholdings of Directors and Chief Executive | Name | Capacity of Holding Shares | Number of Shares | % of Issued Voting Shares | | :--- | :--- | :--- | :--- | | Mr. Xu Shengheng | Beneficial Owner and Spouse's Interest | 723,153,400 | 15.99% | | Ms. Liu Ening | Beneficial Owner | 253,000,000 | 5.59% | | Mr. Zhang Yiying | Beneficial Owner and Interest of Controlled Corporation | 255,504,000 | 5.65% | | Mr. Wu Qiang | Beneficial Owner | 5,000,000 | 0.11% | | Mr. Guan Chenghua | Beneficial Owner | 5,000,000 | 0.11% | | Mr. Yang Mingzhong | Beneficial Owner | 1,760,000 | 0.04% | - As of June 30, 2025, none of the other directors of the company held any equity interests in the company or any of its associated corporations[72](index=72&type=chunk) - As of June 30, 2025, none of the directors and chief executive held any **short positions** in the shares, debentures, or equity derivatives of the company or its associated corporations[73](index=73&type=chunk) [Substantial Shareholders' and Other Persons' Interests](index=33&type=section&id=Substantial%20Shareholders%27%20and%20Other%20Persons%27%20Interests) As of June 30, 2025, China Energy Conservation and Environmental Protection (Hong Kong) Investment Co., Ltd. and its parent, China Energy Conservation and Environmental Protection Group Co., Ltd., were the largest shareholders, holding **26.30%** of voting shares; Ms. Lu Haiwen, Mr. Wang Zhiyu, and Ms. Wang Xinmeng also held significant shares through spouse interests Shareholdings of Substantial Shareholders and Other Persons | Name | Capacity of Holding Shares | Number of Shares | % of Issued Voting Shares | | :--- | :--- | :--- | :--- | | China Energy Conservation and Environmental Protection (Hong Kong) Investment Co., Ltd. | Beneficial Owner | 1,190,000,000 | 26.30% | | China Energy Conservation and Environmental Protection Group Co., Ltd. | Interest of Controlled Corporation | 1,190,000,000 | 26.30% | | Ms. Lu Haiwen | Beneficial Owner and Spouse's Interest | 723,153,400 | 15.99% | | Mr. Wang Zhiyu | Spouse's Interest | 253,000,000 | 5.59% | | Ms. Wang Xinmeng | Spouse's Interest | 255,504,000 | 5.65% | | Universal Zone Limited | Beneficial Owner | 250,000,000 | 5.53% | - As of June 30, 2025, the company was not aware of any substantial shareholders or other persons holding any **long or short positions** in shares and underlying shares through equity derivatives[77](index=77&type=chunk)[78](index=78&type=chunk) [Share Schemes](index=35&type=section&id=Share%20Schemes) The company adopted an **option scheme** and a **share award scheme** on September 6, 2024, both valid for ten years; as of June 30, 2025, no options or awarded shares were granted, exercised, cancelled, or lapsed under these schemes - The **2024 Share Option Scheme** and the **2024 Share Award Scheme** were adopted on September 6, 2024, and are valid for **ten years**[80](index=80&type=chunk) - For the six months ended June 30, 2025, no share options or awarded shares were granted, exercised, cancelled, or lapsed under the aforementioned schemes[80](index=80&type=chunk)[81](index=81&type=chunk) - As of June 30, 2025, the number of shares available for grant under the schemes was **452,692,516 shares**[81](index=81&type=chunk) [Competition and Conflicts of Interest](index=36&type=section&id=Competition%20and%20Conflicts%20of%20Interest) None of the company's directors, substantial shareholders, or their respective associates are engaged in businesses that compete or may compete with the Group's business, nor do they have any other conflicts of interest - None of the company's directors, substantial shareholders, or their respective associates are engaged in businesses that **compete or may compete** with the Group's business, nor do they have any other **conflicts of interest** with the Group[83](index=83&type=chunk) [Audit Committee](index=36&type=section&id=Audit%20Committee) The Audit Committee, composed of three independent non-executive directors, is responsible for reviewing and overseeing the Group's financial reporting, risk management, and internal control systems, and has reviewed these interim results - The Audit Committee is comprised of **three independent non-executive directors**, with primary responsibilities including reviewing and overseeing the Group's **financial reporting process, risk management, and internal control systems**[84](index=84&type=chunk) - The Audit Committee has reviewed the Group's **unaudited interim results** for the six months ended June 30, 2025[84](index=84&type=chunk) [Directors' Securities Transactions](index=37&type=section&id=Directors%27%20Securities%20Transactions) The company has not adopted a code for directors' securities transactions, but inquiries revealed no non-compliance with GEM Listing Rules trading standards by directors during the review period - The company has not adopted a code for directors' securities transactions, but no instances of non-compliance with the **trading standards** set out in Rules 5.48 to 5.67 of the **GEM Listing Rules** by directors were found during the review period[85](index=85&type=chunk) [Corporate Governance Code](index=37&type=section&id=Corporate%20Governance%20Code) During the review period, the company complied with all code provisions of the Corporate Governance Code in Appendix C1 of the GEM Listing Rules, except for one non-executive director who was absent from the annual general meeting due to other commitments - The company complied with all code provisions of the **Corporate Governance Code** in Appendix C1 of the **GEM Listing Rules**, except that non-executive director Mr. Liao Yuan was absent from the annual general meeting due to other commitments[86](index=86&type=chunk) [Update on Directors' Information](index=37&type=section&id=Update%20on%20Directors%27%20Information) Mr. Wu Qiang resigned as an independent non-executive director and from related committee positions on March 28, 2025, and Mr. Guo Guanglei was appointed as an independent non-executive director and chairman of related committees on the same day - Mr. Wu Qiang resigned as an **independent non-executive director**, member of the Audit Committee, Remuneration Committee, and Nomination Committee, and chairman of the Group Development Strategy Committee on **March 28, 2025**[87](index=87&type=chunk) - Mr. Guo Guanglei was appointed as an **independent non-executive director**, member of the Audit Committee, Remuneration Committee, and Nomination Committee, and chairman of the Group Development Strategy Committee on **March 28, 2025**[88](index=88&type=chunk) [Repurchase, Redemption or Sale of the Company's Listed Securities](index=38&type=section&id=Repurchase%2C%20Redemption%20or%20Sale%20of%20the%20Company%27s%20Listed%20Securities) The company obtained shareholder authorization for share repurchases, buying back **4,080,000 shares** for a total consideration of **170,864 HKD** during the review period; additionally, **22,416,000 treasury shares** were sold via off-market transactions, with proceeds used for general working capital - The company obtained **2024 and 2025 repurchase mandates**, allowing for the repurchase of up to **10%** of the total issued shares (excluding treasury shares)[89](index=89&type=chunk) Details of Share Repurchases | Repurchase Period | Number of Shares Repurchased | Total Consideration Paid (HKD) | | :--- | :--- | :--- | | January 2025 (2024 Mandate) | 1,064,000 | 47,704 | | May 2025 (2025 Mandate) | 1,744,000 | 73,352 | | June 2025 (2025 Mandate) | 1,272,000 | 49,808 | | Total (As of June 30, 2025) | 4,080,000 | 170,864 | - On April 17, 2025, the company sold **22,416,000 treasury shares** to an independent third party at **0.06 HKD per share**, representing a premium of approximately **53.85%** over the closing price on that day, with proceeds used for general working capital[93](index=93&type=chunk) [Amendments to and Adoption of New Memorandum and Articles of Association](index=41&type=section&id=Amendments%20to%20and%20Adoption%20of%20New%20Memorandum%20and%20Articles%20of%20Association) At the Annual General Meeting on May 22, 2025, the company passed a special resolution to approve and adopt new Memorandum and Articles of Association, primarily empowering the company to hold and deal with treasury shares and making administrative amendments - At the Annual General Meeting on **May 22, 2025**, the company passed a special resolution to approve and adopt new Memorandum and Articles of Association[96](index=96&type=chunk) - The new articles primarily empower the company to **hold and deal with treasury shares** and include administrative amendments to enhance clarity and consistency of provisions[96](index=96&type=chunk) [Change of Auditor's Registered Name](index=41&type=section&id=Change%20of%20Auditor%27s%20Registered%20Name) Effective June 30, 2025, the company's auditor's registered name changed from 'CL Partners CPA Limited' to 'Rongcheng (Hong Kong) CPA Limited' - Effective **June 30, 2025**, the company's auditor's English registered name changed from 'CL Partners CPA Limited' to '**Rongcheng (Hong Kong) CPA Limited**', and its Chinese name changed from '先机会计师行有限公司' to '容诚（香港）会计师事务所有限公司'[97](index=97&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告 全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 LEGEND STRATEGY INTERNATIONAL HOLDINGS GROUP COMPANY LIMITED 朸濬國際集團控股有限公司 （於開曼群島註冊成立之有限公司） （股份代號：1355） 截至二零二五年六月三十日止六個月期間 之中期業績公告 朸濬國際集團控股有限公司（「本公司」）及其附屬公司（統稱「本集團」）董事 （「董事」）會（「董事會」）欣然宣佈本集團截至二零二五年六月三十日止六個 月期間之未經審核簡明綜合財務業績（「中期業績」）。本公告載列本公司截至 二零二五年六月三十日止六個月期間之中期報告（「中期報告」）全文，有關 內容乃根據香港聯合交易所有限公司（「聯交所」）證券上市規則之相關規定 而編製。中期業績已經董事會審核委員會審閱。本公告將刊登於本公司網站 (www.legend-strategy.com)及聯交所網站(www.hkexnews.hk)。中期報告的印刷 版本將適時寄 ...

[Financial Summary](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) The Group reported a 14.8% revenue increase to RMB 1.883 billion for the six months ended June 30, 2025, alongside a 0.3% rise in loss attributable to owners and a 17.8% reduction in selling and administrative expenses | Metric | Six Months Ended June 30, 2025 (RMB) | Year-on-Year Change | | :--- | :--- | :--- | | Revenue | RMB 1.883 billion | Increased by 14.8% | | Loss Attributable to Owners of the Company | RMB 3.171 billion | Loss increased by 0.3% | | Selling and Distribution Expenses and Administrative Expenses | RMB 322 million | Decreased by 17.8% | | Land Reserve Gross Floor Area (End of Period) | 7,263,455 sq.m. | - | | Interim Dividend | Not Recommended for Distribution | - | [Condensed Consolidated Financial Statements](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, total revenue increased by 14.8% to RMB 1.883 billion, but gross profit decreased by 9.1%, with loss for the period expanding to RMB 3.343 billion and loss attributable to owners of the company at RMB 3.171 billion, resulting in basic and diluted loss per share of RMB 54.93 cents | Metric | 2025 (RMB '000) | 2024 (RMB '000) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Total Revenue | 1,883,432 | 1,641,280 | Increased by 14.8% | | Cost of Sales and Services | (1,554,381) | (1,279,197) | Increased by 21.5% | | Gross Profit | 329,051 | 362,083 | Decreased by 9.1% | | Other Income and Losses | 190,002 | (344,185) | Turned from Loss to Profit | | Write-down of Properties Held for Sale | (643,431) | (499,873) | Increased by 28.7% | | Selling and Distribution Expenses | (28,353) | (44,062) | Decreased by 35.7% | | Administrative Expenses | (293,753) | (347,727) | Decreased by 15.5% | | Finance Costs | (2,217,949) | (1,975,237) | Increased by 12.3% | | Loss Before Tax | (3,249,430) | (3,052,380) | Increased by 6.5% | | Loss for the Period | (3,342,578) | (3,151,929) | Increased by 6.1% | | Loss for the Period Attributable to Owners of the Company | (3,171,041) | (3,161,480) | Increased by 0.3% | | Basic and Diluted Loss Per Share (RMB cents) | (54.93) | (54.77) | Increased by 0.3% | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the Group's total assets slightly decreased, while net current liabilities and net liabilities significantly increased, indicating escalating liquidity pressure, with properties held for sale remaining the largest asset but bank balances and cash notably reduced | Metric | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 71,932,729 | 73,205,941 | Decreased by 1.7% | | Non-current Assets | 14,599,681 | 15,167,246 | Decreased by 3.7% | | Current Assets | 57,333,048 | 58,038,695 | Decreased by 1.2% | | Properties Held for Sale | 38,781,654 | 37,854,149 | Increased by 2.4% | | Bank Balances and Cash | 820,314 | 1,156,153 | Decreased by 29.1% | | Current Liabilities | 76,858,501 | 74,152,556 | Increased by 3.6% | | Net Current Liabilities | (19,525,453) | (16,113,861) | Deficit increased by 21.2% | | Net Liabilities | (14,332,187) | (11,033,107) | Deficit increased by 29.9% | | Deficit Attributable to Owners of the Company | (16,920,084) | (13,749,253) | Deficit increased by 23.1% | [Notes to the Condensed Consolidated Financial Statements](index=6&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) [Basis of Preparation](index=6&type=section&id=1.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the HKICPA and applicable Listing Rules disclosure requirements - Financial statements are prepared in accordance with HKAS 34 and Listing Rules disclosure requirements[9](index=9&type=chunk) [Going Concern Basis](index=6&type=section&id=2.%20%E6%8C%81%E7%BA%8C%E7%B6%93%E7%87%9F%E5%9F%BA%E6%BA%96) The Group faces significant going concern uncertainties, including a net loss of RMB 3.343 billion for the period, net current liabilities of RMB 19.525 billion, net liabilities of RMB 14.332 billion, and approximately RMB 43.995 billion in defaulted interest-bearing borrowings, with management having formulated various mitigation measures, but their successful implementation remains highly uncertain - The Group faces significant going concern uncertainties, primarily due to substantial net losses, high net current liabilities and net liabilities, and approximately **RMB 43.995 billion** in defaulted interest-bearing borrowings[10](index=10&type=chunk)[36](index=36&type=chunk) - Management has formulated several mitigation measures, including appointing financial advisors for offshore debt restructuring, negotiating extensions with lenders, seeking new financing or accelerating asset disposals, expediting property pre-sales and sales, selling project equity, and controlling administrative costs and capital expenditures[10](index=10&type=chunk)[12](index=12&type=chunk) - Despite mitigation measures, uncertainties in the volatile Mainland China property market and creditor support raise significant doubts about the Group's ability to continue as a going concern[11](index=11&type=chunk)[37](index=37&type=chunk) [Accounting Policies](index=8&type=section&id=3.%20%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The condensed consolidated financial statements are primarily prepared on a historical cost basis, except for investment properties and certain financial instruments measured at fair value, with the first-time application of HKFRS amendments in the current period having no significant impact on financial position or performance - Financial statements are primarily prepared on a historical cost basis, with investment properties and some financial instruments measured at fair value[13](index=13&type=chunk) - Application of HKFRS amendments (e.g., HKAS 21 amendment) in the current period had no significant impact on financial position or performance[14](index=14&type=chunk) [Revenue from Contracts with Customers](index=9&type=section&id=4.%20%E5%AE%A2%E6%88%B6%E5%90%88%E7%B4%84%E6%94%B6%E5%85%A5) For the six months ended June 30, 2025, total revenue from contracts with customers was RMB 1.773 billion, primarily from property operating services (RMB 1.385 billion) and property development (RMB 380 million), with property development revenue significantly increasing by 128.5% year-on-year and property operating services also showing a slight increase | Type of Goods and Services | 2025 (RMB '000) | 2024 (RMB '000) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Sale of Completed Properties (Property Development) | 379,710 | 166,188 | Increased by 128.5% | | Provision of Property Management Services | 1,339,579 | 1,287,440 | Increased by 4.0% | | Provision of Value-added Services | 43,460 | 40,933 | Increased by 6.2% | | Provision of Engineering Services | 1,947 | 3,713 | Decreased by 47.5% | | Provision of Hotel Accommodation Services | 8,039 | 25,605 | Decreased by 68.6% | | Property Project Management and Other Related Services | 244 | 2,678 | Decreased by 90.9% | | **Total Revenue from Contracts with Customers** | **1,772,979** | **1,526,557** | **Increased by 16.1%** | - In terms of revenue recognition timing, revenue recognized over time accounted for the largest proportion, totaling **RMB 1.39 billion** in 2025, primarily from property operating services and hotel operations[15](index=15&type=chunk)[16](index=16&type=chunk) [Segment Information](index=11&type=section&id=5.%20%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) For the six months ended June 30, 2025, the Group's total revenue was RMB 1.886 billion, with property operating services being the largest contributor, while the property development segment's loss expanded to RMB 882 million, and property operating services remained profitable, with total Group assets at RMB 71.933 billion, property development assets accounting for the highest proportion Segment Revenue and Results | Segment | 2025 Revenue (RMB '000) | 2024 Revenue (RMB '000) | 2025 Results (RMB '000) | 2024 Results (RMB '000) | | :--- | :--- | :--- | :--- | :--- | | Property Development | 379,710 | 166,188 | (881,505) | (808,078) | | Property Investment | 110,453 | 114,723 | (96,560) | (30,909) | | Services (Property Operating Services) | 1,387,084 | 1,333,711 | 127,146 | 142,076 | | Hotel Operations | 8,039 | 25,605 | (6,526) | (80,653) | | Others | 244 | 2,678 | 10 | (4,089) | | **Total** | **1,885,530** | **1,642,905** | **(857,435)** | **(781,653)** | Segment Assets | Segment Assets | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Property Development | 47,458,827 | 47,863,818 | | Property Investment | 6,349,078 | 6,475,598 | | Property Operating Services | 4,633,502 | 4,514,380 | | Hotel Operations | 19,297 | 28,098 | | Others | 73,535 | 66,806 | | **Total Segment Assets** | **58,534,239** | **58,948,700** | | Total Unallocated Assets | 13,398,490 | 14,257,241 | | **Total Group Assets** | **71,932,729** | **73,205,941** | [Income Tax](index=13&type=section&id=6.%20%E6%89%80%E5%BE%97%E7%A8%85) For the six months ended June 30, 2025, the Group's income tax expense was approximately RMB 93 million, a slight decrease from RMB 100 million in the prior period, primarily comprising PRC current tax and deferred tax | Tax Type | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | PRC Current Tax | 50,538 | 109,295 | | Deferred Tax | 42,610 | (9,746) | | **Total Income Tax** | **93,148** | **99,549** | [Loss for the Period](index=14&type=section&id=7.%20%E6%9C%9F%E5%85%A7%E虧%E6%90%8D) Loss for the period was primarily impacted by write-down of properties held for sale (RMB 643 million) and increased finance costs, partially offset by net exchange gains (RMB 185 million) and gain on debt restructuring (RMB 8 million) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Government grants and partial exemption from PRC value-added tax | (2,707) | (4,122) | | Interest income | (8,394) | (4,672) | | Net exchange (gain)/loss | (185,127) | 247,893 | | Net (profit)/loss on disposal of associates and joint ventures | (486) | 34,987 | | Write-down of properties held for sale | 643,431 | 499,873 | | Gain on debt restructuring | (8,186) | – | [Dividends](index=14&type=section&id=8.%20%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, consistent with the prior period - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[26](index=26&type=chunk) [Loss Per Share](index=15&type=section&id=9.%20%E6%AF%8F%E8%82%A1%E虧%E6%90%8D) For the six months ended June 30, 2025, basic and diluted loss per share was RMB 54.93 cents, slightly higher than RMB 54.77 cents in the prior period, primarily due to an increase in loss attributable to owners of the company | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Loss for the purpose of calculating basic and diluted loss per share (Loss for the period attributable to owners of the Company) | (3,171,041) | (3,161,480) | | Weighted average number of ordinary shares (thousands) | 5,772,598 | 5,772,598 | | **Loss per share - basic and diluted (RMB cents)** | **(54.93)** | **(54.77)** | - The exercise of share options was not assumed in calculating diluted loss per share as it would result in a decrease in loss per share[27](index=27&type=chunk) [Trade and Other Receivables](index=16&type=section&id=10.%20%E6%87%89%E6%94%B6%E8%B3%AC%E6%AC%BE%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade and other receivables amounted to RMB 10.441 billion, a decrease from RMB 11.542 billion at the end of 2024, with trade receivables (net of impairment loss provision) at RMB 1.832 billion and an increase in trade receivables over 1 year old Trade and Other Receivables Summary | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade receivables - from contracts with customers | 1,751,141 | 1,701,752 | | Other receivables | 2,200,858 | 2,570,373 | | Consideration receivable for disposal of equity interests in subsidiaries and an associate | 2,091,752 | 2,661,583 | | **Amounts shown under current assets** | **10,440,717** | **11,541,593** | Ageing of Trade Receivables | Ageing of Trade Receivables | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | 0 to 30 days | 251,592 | 1,208,272 | | 31 to 90 days | 224,271 | 136,741 | | 91 to 180 days | 227,992 | 127,630 | | 181 to 365 days | 889,972 | 112,064 | | Over 1 year | 238,145 | 186,572 | | **Total** | **1,831,972** | **1,771,279** | [Trade and Other Payables](index=17&type=section&id=11.%20%E6%87%89%E4%BB%98%E8%B3%AC%E6%AC%BE%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade and other payables amounted to RMB 9.525 billion, an increase from RMB 9.113 billion at the end of 2024, with trade payables at RMB 3.225 billion and a significant increase in trade payables over 1 year old Trade and Other Payables Summary | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade payables | 3,224,654 | 3,284,905 | | Other payables and accrued expenses | 4,982,294 | 4,477,578 | | **Total** | **9,524,761** | **9,113,265** | Ageing of Trade Payables | Ageing of Trade Payables | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 1 year | 483,698 | 3,089,459 | | Over 1 year | 2,740,956 | 195,446 | | **Total** | **3,224,654** | **3,284,905** | - Trade payables primarily comprise unpaid amounts for construction material purchases and subcontracting fees, with an average credit period ranging from two months to one year[34](index=34&type=chunk) [Excerpt from Independent Review Report](index=19&type=section&id=%E7%8D%A8%E7%AB%8B%E5%AF%A9%E9%96%B1%E5%A0%B1%E5%91%8A%E6%91%98%E9%8C%84) [Basis for Disclaimer of Conclusion](index=19&type=section&id=%E4%B8%8D%E7%99%BC%E8%A1%A8%E7%B5%90%E8%AB%96%E7%9A%84%E5%9F%BA%E7%A4%8E) The reviewer was unable to express a conclusion due to multiple material uncertainties regarding the Group's ability to continue as a going concern, including substantial net losses, high net current liabilities and net liabilities, and approximately RMB 43.995 billion in defaulted interest-bearing borrowings, with the validity of the going concern assumption dependent on the successful implementation of debt restructuring, accelerated sales, asset disposals, and cost control measures, which remain uncertain - The reviewer was unable to express a conclusion due to material uncertainties regarding the Group's ability to continue as a going concern[36](index=36&type=chunk)[38](index=38&type=chunk) - Key uncertainties include a net loss of **RMB 3.343 billion** for the period, net current liabilities of **RMB 19.525 billion**, net liabilities of **RMB 14.332 billion**, and approximately **RMB 43.995 billion** in defaulted interest-bearing borrowings[36](index=36&type=chunk) - The validity of the going concern assumption depends on the successful implementation of measures such as offshore debt restructuring, accelerated property sales, successful disposal of project equity, and effective cost control, but these measures are subject to multiple uncertainties[37](index=37&type=chunk) [Disclaimer of Conclusion](index=19&type=section&id=%E4%B8%8D%E7%99%BC%E8%A1%A8%E7%B5%90%E8%AB%96) Based on multiple uncertainties related to going concern and their potential cumulative impact, the reviewer disclaims a conclusion on the interim financial information - The reviewer disclaims a conclusion on the interim financial information due to multiple going concern uncertainties and their cumulative impact[38](index=38&type=chunk) [Management Discussion and Analysis](index=20&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 Review](index=20&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group actively addressed liquidity challenges in the first half of 2025, focusing on "ensuring delivery and stable operations," achieving progress in delivery, sales, and funding, with property development contracted sales of RMB 459 million primarily from residential products in key metropolitan areas, while community services enhanced efficiency and customer satisfaction through smart community initiatives and online platforms [Property Development](index=20&type=section&id=%E6%88%BF%E5%9C%B0%E7%94%A2%E9%96%8B%E7%99%BC) In the first half of 2025, the Group's property development achieved contracted sales of RMB 459 million and a contracted sales area of 66,920 square meters, primarily residential products, with sales concentrated in 8 cities including Beijing, Shenzhen, and Chengdu, and the Bohai Rim and Chengdu-Chongqing metropolitan areas being the largest contributors, while one project phase was completed, 13 projects were under construction, 14 projects were awaiting construction, and total land reserves were approximately 7.26 million square meters - From January to June 2025, the Group achieved contracted sales of approximately **RMB 459 million** and a contracted sales area of **66,920 square meters**, primarily from residential products (**99.91%**)[39](index=39&type=chunk)[41](index=41&type=chunk) Contracted Sales by Region | Region | Contracted Sales Amount (RMB million) | Proportion | Contracted Sales Area (sq.m.) | Proportion | | :--- | :--- | :--- | :--- | :--- | | Guangdong-Hong Kong-Macao Greater Bay Area | 126 | 27.45% | 5,747 | 8.59% | | Chengdu-Chongqing Metropolitan Area | 131 | 28.54% | 40,992 | 61.25% | | Central China Metropolitan Area | 25 | 5.45% | 3,669 | 5.48% | | Yangtze River Delta Metropolitan Area | 15 | 3.27% | 4,087 | 6.11% | | Bohai Rim Metropolitan Area | 162 | 35.29% | 12,425 | 18.57% | | **Total** | **459** | **100%** | **66,920** | **100%** | - During the period, **1 project phase was completed** with a total GFA of approximately **15,943 sq.m.**; **13 projects were under construction** with a total GFA of **1,341,547 sq.m.**; and **14 projects were awaiting construction** with a total GFA of **5,921,908 sq.m.**[49](index=49&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk) - As of June 30, 2025, the Group's total land reserve GFA was approximately **7,263,455 sq.m.**, primarily located in North China, Southwest China, and South China[52](index=52&type=chunk)[53](index=53&type=chunk) [Community Services](index=24&type=section&id=%E7%A4%BE%E5%8D%80%E6%9C%8D%E5%8B%99) Color Life Services Group, a leading property management and community services operator, focuses on basic property services, actively promotes smart community development by introducing AI large models and intelligent robots to enhance service efficiency, and strengthens community cohesion and expands consumption scenarios through community activities and the "Cai Zhi Yun" online platform - Color Life Services Group focuses on property management services, leveraging internet technology to build online and offline service platforms, providing basic "four-guarantee" services[54](index=54&type=chunk) - The Group is actively advancing smart community development, upgrading its "Property Digital Management Platform" with AI large models, and introducing intelligent robots and AI customer service managers to enhance service quality and efficiency[55](index=55&type=chunk) - Through community activities and the "Cai Zhi Yun" online platform, the Group strengthens owner-property relationships, enriches community life, and promotes community cultural brand building and consumption scenario expansion[56](index=56&type=chunk)[57](index=57&type=chunk) [Financial Review](index=26&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) For the six months ended June 30, 2025, the Group's total revenue increased by 14.8% to RMB 1.883 billion, primarily driven by a 128.5% surge in property development revenue, while gross profit declined by 9.1% and gross profit margin fell to 17.5%, with other income turning from loss to gain, selling and administrative expenses significantly decreasing due to cost control, but finance costs rising by 12.3% [Revenue](index=26&type=section&id=%E6%94%B6%E5%85%A5) The Group's total revenue increased by 14.8% year-on-year to RMB 1.883 billion, primarily driven by a 128.5% surge in property development revenue, while property operating services revenue also saw a modest increase, but property investment and hotel operations revenue declined | Revenue Source | 2025 (RMB 100 million) | 2024 (RMB 100 million) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Total Revenue | 18.83 | 16.41 | Increased by 14.8% | | Property Development | 3.80 | 1.66 | Increased by 128.5% | | Property Investment | 1.10 | 1.15 | Decreased by 3.7% | | Property Operating Services | 13.85 | 13.32 | Increased by 4.0% | | Hotel Operations | 0.08 | 0.26 | Decreased by 68.6% | - The increase in property development revenue was primarily attributable to the rise in property area delivered during the year[59](index=59&type=chunk) - The decrease in hotel operations revenue was mainly due to the disposal and reclassification of several hotel assets into investment properties in the second half of 2024[64](index=64&type=chunk) [Gross Profit and Gross Profit Margin](index=28&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) The Group's gross profit decreased by 9.1% year-on-year to RMB 329 million, with the gross profit margin falling from 22.1% to 17.5%, primarily due to a further decline in gross profit from property development | Metric | 2025 (RMB 100 million) | 2024 (RMB 100 million) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Gross Profit | 3.29 | 3.62 | Decreased by 9.1% | | Gross Profit Margin | 17.5% | 22.1% | Decreased by 4.6 percentage points | - The decline in gross profit margin was primarily due to a further decrease in gross profit from the property development segment[65](index=65&type=chunk) [Other Income, Gains and Losses](index=28&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E3%80%81%E6%94%B6%E7%9B%8A%E5%8F%8A%E虧%E6%90%8D) The Group recorded other net gains of approximately RMB 201 million for the period, a significant improvement from a net loss of RMB 329 million in the prior period, primarily attributable to net exchange gains/losses from USD-denominated senior notes | Metric | 2025 (RMB 100 million) | 2024 (RMB 100 million) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Other net gains/(losses) | 2.01 (Gain) | (3.29) (Loss) | Turned from Loss to Gain | | Primary Reason | Net exchange gains/losses | Net exchange gains/losses | - | [Selling and Distribution Expenses](index=28&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E5%88%86%E9%8A%B7%E8%B2%BB%E7%94%A8) Selling and distribution expenses decreased by 35.7% year-on-year to RMB 28 million, primarily due to reduced advertising and promotion expenses for property sales | Metric | 2025 (RMB 100 million) | 2024 (RMB 100 million) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 0.28 | 0.44 | Decreased by 35.7% | | Primary Reason | Reduced advertising and promotion expenses | - | - | [Administrative Expenses](index=28&type=section&id=%E8%A1%8C%E6%94%BF%E8%B2%BB%E7%94%A8) Administrative expenses decreased by 15.5% year-on-year to RMB 294 million, primarily due to the Group's cost control policies and reduced staff costs | Metric | 2025 (RMB 100 million) | 2024 (RMB 100 million) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Administrative Expenses | 2.94 | 3.48 | Decreased by 15.5% | | Primary Reason | Cost control policies and reduced staff costs | - | - | [Finance Costs](index=29&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) Finance costs increased by 12.3% year-on-year to RMB 2.218 billion, primarily due to a decrease in capitalized interest | Metric | 2025 (RMB 100 million) | 2024 (RMB 100 million) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Finance Costs | 22.18 | 19.75 | Increased by 12.3% | | Primary Reason | Decrease in capitalized interest | - | - | [Income Tax Expense](index=29&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense was approximately RMB 93 million, remaining largely stable compared to RMB 100 million in the prior period | Metric | 2025 (RMB 100 million) | 2024 (RMB 100 million) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Income Tax Expense | 0.93 | 1.00 | Remained stable | [Liquidity, Financial Resources and Capital Structure](index=29&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E3%80%81%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90%E5%8F%8A%E8%B3%87%E6%9C%AC%E7%B5%90%E6%A7%8B) As of June 30, 2025, the Group's total bank balances and cash decreased by 27.6% to RMB 1.249 billion, with borrowings, senior notes, and bonds remaining high, most of which are due within one year, and the Group's assets are primarily pledged for borrowings, facing approximately RMB 5.925 billion in contingent liabilities [Cash Position](index=29&type=section&id=%E7%8F%BE%E9%87%91%E7%8B%80%E6%B3%81) As of June 30, 2025, the Group's total bank balances and cash were approximately RMB 1.249 billion, a 27.6% decrease from the end of 2024, with some cash being restricted bank deposits primarily for property development use | Metric | June 30, 2025 (RMB 100 million) | December 31, 2024 (RMB 100 million) | Change | | :--- | :--- | :--- | :--- | | Total bank balances and cash | 12.49 | 17.24 | Decreased by 27.6% | | Restricted bank deposits | 4.28 | 5.68 | Decreased by 24.7% | | Bank balances and cash | 8.20 | 11.56 | Decreased by 29.1% | [Borrowings and Pledges of the Group's Assets](index=29&type=section&id=%E5%80%9F%E6%AC%BE%E5%8F%8A%E6%9C%AC%E9%9B%86%E5%9C%98%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group's total borrowings were approximately RMB 18.025 billion, senior notes and bonds approximately RMB 48.649 billion, and asset-backed securities issued approximately RMB 298 million, with most borrowings and senior notes due within one year, and the vast majority of borrowings secured by land use rights, properties, and bank deposits, while senior notes are guaranteed by pledges of shares in subsidiaries Borrowings and Senior Notes | Type of Liability | June 30, 2025 (RMB 100 million) | December 31, 2024 (RMB 100 million) | | :--- | :--- | :--- | | Total borrowings | 180.25 | 179.48 | | Borrowings due within one year | 164.30 | 160.41 | | Borrowings due after one year | 15.95 | 19.07 | | Total senior notes and bonds | 486.49 | 470.43 | | Senior notes and bonds due within one year | 410.60 | 391.20 | | Senior notes and bonds due after one year | 75.89 | 79.23 | | Asset-backed securities issued | 2.98 | 2.89 | - The vast majority of borrowings are secured by land use rights, properties, and bank deposits, while senior notes are jointly and severally guaranteed by pledges of shares in certain subsidiaries[73](index=73&type=chunk) [Exchange Rate Risk](index=30&type=section&id=%E5%8C%AF%E5%85%8C%E9%A2%A8%E9%9A%AA) The Group primarily operates in China and does not face other significant direct exchange rate fluctuation risks, except for bank balances, borrowings, and lease liabilities denominated in foreign currencies - The Group primarily operates in China, with exchange rate risk mainly arising from foreign currency-denominated bank balances, borrowings, and lease liabilities[74](index=74&type=chunk) [Commitments](index=30&type=section&id=%E6%89%BF%E8%AB%BE) As of June 30, 2025, the Group had commitments to pay approximately RMB 673 million for construction and property development, a decrease from 2024 | Type of Commitment | June 30, 2025 (RMB 100 million) | 2024 (RMB 100 million) | | :--- | :--- | :--- | | Commitments for construction and property development | 6.73 | 8.80 | [Contingent Liabilities](index=30&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group provided guarantees of approximately RMB 2.575 billion for property buyers' mortgage loans and approximately RMB 5.925 billion for bank borrowings of joint ventures and associates, with directors believing the likelihood of buyer default is remote and the fair value of guarantee contracts is not material | Type of Contingent Liability | June 30, 2025 (RMB 100 million) | 2024 (RMB 100 million) | | :--- | :--- | :--- | | Guarantees for property buyers' mortgage loans | 25.75 | 59.72 | | Guarantees for bank borrowings of joint ventures and associates | 59.25 | - | - Directors believe the likelihood of buyer default is remote, and the fair value of guarantee contracts is not material[76](index=76&type=chunk) [Employees and Remuneration Policy](index=31&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group had approximately 17,632 employees, a decrease from the end of 2024, with remuneration determined based on employee performance, skills, qualifications, and market practice, and mandatory provident fund and state-managed retirement benefit schemes provided | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of Employees | 17,632 | 18,596 | - Remuneration policy is determined based on employee performance, skills, qualifications, and experience, in line with market practice, and includes mandatory provident fund and state-managed retirement benefit schemes[77](index=77&type=chunk) [Dividends](index=31&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[78](index=78&type=chunk) [Purchase, Sale or Redemption of the Company's Securities](index=31&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E9%8A%B7%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%AD%89%E5%88%B8) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and there were no treasury shares - During the period, neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities[79](index=79&type=chunk) - As of June 30, 2025, the Company held no treasury shares[79](index=79&type=chunk) [Latest Progress on Debt Restructuring](index=31&type=section&id=%E5%82%B5%E5%8B%99%E9%87%8D%E7%B5%84%E4%B9%8B%E6%9C%80%E6%96%B0%E9%80%B2%E5%B1%95) The Group is actively advancing its offshore debt restructuring plan, having entered into a restructuring support agreement with an ad hoc group of creditors holding over 34.9% of the existing notes' principal, while onshore, the principal and interest payment arrangements for five public bonds have been adjusted to December 31, 2025 - The Company has entered into an offshore debt restructuring support agreement with an ad hoc group of creditors holding over **34.9%** of the existing notes' principal[80](index=80&type=chunk)[81](index=81&type=chunk) - For onshore public bonds, the principal and interest payment arrangements for **five bonds** have been adjusted to **December 31, 2025**[82](index=82&type=chunk) [Material Investments](index=32&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) As of June 30, 2025, the Company had no material investments - As of June 30, 2025, the Company had no material investments[83](index=83&type=chunk) [Material Acquisitions and Disposals](index=32&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) During the period, the Company did not participate in Color Life's rights issue, resulting in its equity interest in Color Life being diluted from approximately 52.44% to approximately 41.95%, with Color Life remaining a subsidiary whose financial performance continues to be consolidated into the Company's statements, and no other material acquisitions or disposals occurred - The Company did not participate in Color Life's rights issue, resulting in its equity interest in Color Life being diluted from approximately **52.44%** to approximately **41.95%**[84](index=84&type=chunk) - Color Life remains a subsidiary of the Company, and its financial performance continues to be consolidated into the Company's financial statements[84](index=84&type=chunk) - Other than the dilution of Color Life's equity interest, there were no other material acquisitions or disposals of subsidiaries, associates, and joint ventures during the period[85](index=85&type=chunk) [Material Events After the Reporting Period](index=33&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E9%96%93%E5%BE%8C%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A0%85) No material events affecting the Group have occurred since the end of the reporting period - No material events affecting the Group have occurred since the end of the period[86](index=86&type=chunk) [Going Concern and Mitigation Measures](index=33&type=section&id=%E6%8C%81%E7%BA%8C%E7%B6%93%E7%87%9F%E5%8F%8A%E7%B7%A9%E5%92%8C%E6%8E%AA%E6%96%BD) The Board confirms it has appropriately considered matters raising significant doubt about going concern and actively proposed measures to improve liquidity and financial position, with the Board, management, and audit committee agreeing to prepare financial statements on a going concern basis, but auditors remain uncertain about management's ability to successfully implement the plans - The Board confirms it has considered going concern issues and proposed measures to improve liquidity and financial position[87](index=87&type=chunk)[88](index=88&type=chunk) - The Board, management, and audit committee agree to prepare financial statements on a going concern basis, assuming successful implementation of mitigation measures[89](index=89&type=chunk) - The auditors have expressed uncertainty regarding management's ability to achieve its plans and measures, and have not expressed an opinion on the financial statements[88](index=88&type=chunk)[89](index=89&type=chunk) [Corporate Governance](index=35&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) [Corporate Governance Code](index=35&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The Company is committed to maintaining high corporate governance standards, complying with the Corporate Governance Code in Appendix C1 of the Listing Rules during the period, but with deviations, including failure to arrange liability insurance for directors and senior management, and non-compliance with board composition requirements due to an independent non-executive director's resignation, which was rectified by appointing a new independent non-executive director on July 11, 2025 - The Company is committed to maintaining high corporate governance standards, complying with the Corporate Governance Code during the period, but with deviations[90](index=90&type=chunk) - Due to the ongoing downturn in the real estate market, the Company was unable to arrange appropriate liability insurance for its directors and senior management[90](index=90&type=chunk) - Due to the resignation of an independent non-executive director, the Company temporarily failed to comply with relevant Listing Rules requirements for board composition, audit committee, and nomination committee, but regained compliance after appointing a new independent non-executive director on **July 11, 2025**[91](index=91&type=chunk) [Standard Securities Dealing Code for Directors](index=36&type=section&id=%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 Securities Dealing Code set out in Appendix C3 of the Listing Rules, and all directors have confirmed compliance throughout the period - The Company has adopted the Standard Securities Dealing Code in Appendix C3 of the Listing Rules, and all directors confirmed compliance during the period[92](index=92&type=chunk) [Other Information](index=36&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) [Review of Interim Results](index=36&type=section&id=%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E7%9A%84%E5%AF%A9%E9%96%B1) The Company's unaudited interim results for the period have been reviewed by the audit committee and external auditors - The unaudited interim results for the period have been reviewed by the audit committee and external auditors[93](index=93&type=chunk) [Publication of Interim Results Announcement](index=36&type=section&id=%E5%88%8A%E8%BC%89%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A) This announcement has been published on the HKEX website and the Company's website - This announcement has been published on the HKEX website (www.hkexnews.hk) and the Company's website (www.cnfantasia.com)[94](index=94&type=chunk) [By Order of the Board](index=36&type=section&id=%E6%89%BF%E8%91%A3%E4%BA%8B%E6%9C%83%E5%91%BD) This announcement is issued by Ms. Zeng Jianli, Chairman of the Board, and lists the composition of the Board of Directors as of the announcement date - This announcement is issued by Ms. Zeng Jianli, Chairman of the Board[95](index=95&type=chunk) - As of the announcement date, the Board members include Executive Directors Ms. Zeng Jianli, Mr. Timothy David Gildner, Mr. Lin Zhifeng; Non-executive Directors Ms. Zeng Baobao, Mr. Su Boyu; and Independent Non-executive Directors Mr. Leung Yiu Cho, Mr. Kwok Siu Muk, Mr. Ma Youheng[96](index=96&type=chunk)

[Announcement Information](index=1&type=section&id=Announcement%20Information) This section covers the interim results announcement for Hygieia Group Limited for the six months ended June 30, 2025, reviewed by the Audit Committee and approved by the Board [Announcement Statement](index=1&type=section&id=Announcement%20Statement) This announcement presents Hygieia Group Limited's interim results for the six months ended June 30, 2025, reviewed by the Audit Committee and approved by the Board - The Board of Directors of Hygieia Group Limited (the "Company" and its subsidiaries, collectively the "Group") is pleased to announce the interim results and unaudited condensed consolidated financial information for the six months ended June 30, 2025[3](index=3&type=chunk) - These results have been reviewed by the Audit Committee and approved by the Board of Directors on August 28, 2025[3](index=3&type=chunk) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) The Group achieved significant growth in revenue and profit after tax in the first half of 2025, with doubled earnings per share, but no interim dividend was declared 2025 H1 Financial Highlights (S$ Thousand) | Indicator | Six Months Ended June 30, 2025 (S$ Thousand) | Six Months Ended June 30, 2024 (S$ Thousand) | Change (S$ Thousand) | Growth Rate (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 39,400 | 37,000 | 2,400 | 6.4% | | Profit after tax | 2,100 | 1,200 | 1,000 | 83.3% | | Basic and diluted earnings per share (S$ Cents) | 0.104 | 0.055 | 0.049 | 89.1% | - The Board did not declare an interim dividend for the six months ended June 30, 2025[4](index=4&type=chunk) [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) This section presents the Group's consolidated financial statements, including the statement of profit or loss, financial position, changes in equity, and cash flows [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's revenue grew by 6.4% to S$39,351 thousand, and profit for the period significantly increased by 84.3% to S$2,120 thousand, driven by gross profit growth and lower finance costs Consolidated Statement of Profit or Loss and Other Comprehensive Income (Summary) (S$ Thousand) | Indicator | 2025 (S$ Thousand) | 2024 (S$ Thousand) | Change (S$ Thousand) | Growth Rate (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 39,351 | 36,982 | 2,369 | 6.4% | | Cost of sales | (31,905) | (30,908) | (997) | 3.2% | | Gross profit | 7,446 | 6,074 | 1,372 | 22.6% | | Operating profit | 2,744 | 1,554 | 1,190 | 76.6% | | Profit for the period | 2,120 | 1,150 | 970 | 84.3% | | Profit for the period attributable to owners of the Company | 2,082 | 1,092 | 990 | 90.7% | | Basic and diluted earnings per share (S$ Cents) | 0.104 | 0.055 | 0.049 | 89.1% | [Consolidated Statement of Financial Position](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets were S$37,743 thousand, a decrease from the end of 2024 primarily due to reduced current assets, with total equity at S$26,054 thousand and total liabilities at S$11,688 thousand Consolidated Statement of Financial Position (Summary) (S$ Thousand) | Indicator | June 30, 2025 (S$ Thousand) | December 31, 2024 (S$ Thousand) | Change (S$ Thousand) | Change Rate (%) | | :--- | :--- | :--- | :--- | :--- | | **Assets** | | | | | | Non-current assets | 3,832 | 4,018 | (186) | (4.6%) | | Current assets | 33,911 | 36,977 | (3,066) | (8.3%) | | Total assets | 37,743 | 40,995 | (3,252) | (7.9%) | | **Equity** | | | | | | Equity attributable to owners of the Company | 25,900 | 27,817 | (1,917) | (6.9%) | | Non-controlling interests | 154 | 116 | 38 | 32.8% | | Total equity | 26,054 | 27,933 | (1,879) | (6.7%) | | **Liabilities** | | | | | | Non-current liabilities | 360 | 755 | (395) | (52.3%) | | Current liabilities | 11,328 | 12,307 | (979) | (8.0%) | | Total liabilities | 11,688 | 13,062 | (1,374) | (10.5%) | [Consolidated Statement of Changes in Equity](index=6&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) As of June 30, 2025, equity attributable to owners of the Company was S$25,900 thousand, a decrease from the beginning of the year primarily due to S$4,000 thousand in dividends paid Consolidated Statement of Changes in Equity (Summary) (S$ Thousand) | Indicator | June 30, 2025 (S$ Thousand) | January 1, 2024 (S$ Thousand) | | :--- | :--- | :--- | | Balance at beginning of period (attributable to owners of the Company) | 27,817 | 30,049 | | Profit for the period (attributable to owners of the Company) | 2,082 | 1,092 | | Other comprehensive income for the period (attributable to owners of the Company) | 1 | (1) | | Dividends paid | (4,000) | (3,000) | | Balance at end of period (attributable to owners of the Company) | 25,900 | 28,140 | [Consolidated Statement of Cash Flows](index=7&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operating activities turned positive to S$3,015 thousand, net cash from investing activities increased, but net cash used in financing activities significantly increased to S$6,017 thousand, resulting in a net decrease in cash and cash equivalents Consolidated Statement of Cash Flows (Summary) (S$ Thousand) | Indicator | 2025 (S$ Thousand) | 2024 (S$ Thousand) | Change (S$ Thousand) | | :--- | :--- | :--- | :--- | | Net cash from operating activities | 3,015 | (2,501) | 5,516 | | Net cash from investing activities | 2,927 | 2,707 | 220 | | Net cash used in financing activities | (6,017) | (4,561) | (1,456) | | Net decrease in cash and cash equivalents | (75) | (4,355) | 4,280 | | Cash and cash equivalents at end of period | 10,313 | 7,861 | 2,452 | [Notes to the Condensed Consolidated Financial Information](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Information) This section provides detailed notes to the condensed consolidated financial information, covering general information, accounting policies, revenue, expenses, and other financial details [General Information and Basis of Preparation](index=8&type=section&id=General%20Information%20and%20Basis%20of%20Preparation) This section outlines Hygieia Group Limited's registration, primary business (cleaning services), listing status, and the preparation basis for interim financial information, which follows IAS 34 - The Company was incorporated on February 28, 2019, in the Cayman Islands, with TEK Assets Management Limited as its parent company and Mr. Toh Wing Kwai as the ultimate controlling party[12](index=12&type=chunk) - The Group is principally engaged in providing cleaning services, with its main place of business in Singapore[12](index=12&type=chunk) - The Company is an investment holding company, and its subsidiaries are primarily engaged in providing cleaning services[12](index=12&type=chunk) - The Company's shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on July 3, 2020[13](index=13&type=chunk) - The unaudited condensed interim financial information has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting"[14](index=14&type=chunk) [General Information](index=8&type=section&id=General%20Information) Hygieia Group Limited is registered in the Cayman Islands, primarily provides cleaning services in Singapore through its subsidiaries, and was listed on the Main Board of the Hong Kong Stock Exchange in 2020 - The Company is an investment holding company, and its subsidiaries are primarily engaged in providing cleaning services[12](index=12&type=chunk) - The Company's shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on July 3, 2020[13](index=13&type=chunk) [Basis of Preparation](index=8&type=section&id=Basis%20of%20Preparation) This interim financial information is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and should be read in conjunction with the annual results announcement - The unaudited condensed interim financial information has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting"[14](index=14&type=chunk) [Adoption of New and Revised International Financial Reporting Standards](index=8&type=section&id=Adoption%20of%20New%20and%20Revised%20International%20Financial%20Reporting%20Standards) The Group first adopted IAS 21 (Amendment) "Lack of Exchangeability," but its application had no significant impact on the financial position or performance for the current period - The Group first adopted IAS 21 (Amendment) "Lack of Exchangeability," which is mandatorily effective for annual periods beginning on or after January 1, 2025[15](index=15&type=chunk) - The application of this amendment had no significant impact on the Group's financial position and performance and/or the disclosures contained in the unaudited condensed financial information for the current period[15](index=15&type=chunk) [Revenue and Segment Information](index=9&type=section&id=Revenue%20and%20Segment%20Information) The Group considers its business as a single operating segment, with primary income from cleaning services, where Singapore contributes most of the revenue, and Thailand's revenue also shows significant growth - The Group's business is considered a single operating segment that qualifies as a reportable segment[16](index=16&type=chunk) - For the six months ended June 30, 2025, revenue from providing cleaning services was **S$39,319 thousand**, accounting for the vast majority of total revenue[17](index=17&type=chunk) [Disaggregation of Revenue from Contracts with Customers](index=9&type=section&id=(a)%20Disaggregation%20of%20Revenue%20from%20Contracts%20with%20Customers) The Group's revenue primarily comes from cleaning services, with contributions of S$33,546 thousand from Singapore and S$5,805 thousand from Thailand, and no single customer contributing over 10% of revenue Revenue by Service Type and Geographical Location (S$ Thousand) | Revenue Source | 2025 (S$ Thousand) | 2024 (S$ Thousand) | | :--- | :--- | :--- | | Provision of cleaning services | 39,319 | 36,940 | | Sale of goods | 32 | 42 | | **Total Revenue** | **39,351** | **36,982** | | **By Geographical Location** | | | | Singapore | 33,546 | 32,036 | | Thailand | 5,805 | 4,946 | - For the six months ended June 30, 2025, and June 30, 2024, no single customer accounted for more than 10% of the Group's revenue[17](index=17&type=chunk) [Non-current Assets by Geographical Area](index=10&type=section&id=(b)%20Non-current%20Assets%20by%20Geographical%20Area) The Group's non-current assets are primarily concentrated in Singapore, with Thailand's non-current assets representing a smaller but growing proportion Non-current Assets by Geographical Area (S$ Thousand) | Region | June 30, 2025 (S$ Thousand) | December 31, 2024 (S$ Thousand) | | :--- | :--- | :--- | | Singapore | 3,667 | 3,870 | | Thailand | 165 | 148 | | **Total** | **3,832** | **4,018** | [Other Income](index=10&type=section&id=Other%20Income) Other income remained stable for the period, primarily derived from interest income Other Income Details (S$ Thousand) | Income Source | 2025 (S$ Thousand) | 2024 (S$ Thousand) | | :--- | :--- | :--- | | Interest income | 99 | 90 | | Others | 3 | 5 | | **Total** | **102** | **95** | [Other Gains/(Losses) – Net](index=10&type=section&id=Other%20Gains%2F(Losses)%20%E2%80%93%20Net) Net other gains turned positive this period, mainly due to gains from the disposal of property, plant, and equipment, which offset some foreign exchange losses Other Gains/(Losses) – Net Details (S$ Thousand) | Item | 2025 (S$ Thousand) | 2024 (S$ Thousand) | | :--- | :--- | :--- | | Foreign exchange losses | (9) | (12) | | Gain on disposal of property, plant and equipment | 36 | 6 | | **Total** | **27** | **(6)** | [Employee Benefit Expenses](index=11&type=section&id=Employee%20Benefit%20Expenses) For the six months ended June 30, 2025, employee benefit expenses increased to S$28,212 thousand, with government grants offsetting S$1,625 thousand in wages and salaries Employee Benefit Expenses Details (S$ Thousand) | Item | 2025 (S$ Thousand) | 2024 (S$ Thousand) | | :--- | :--- | :--- | | Salaries and other allowances | 26,208 | 23,269 | | Contributions to defined contribution plans | 1,811 | 1,664 | | Other employee benefits | 193 | 108 | | **Total** | **28,212** | **25,041** | - For the six months ended June 30, 2025, government grants of **S$1,625 thousand** (June 30, 2024: S$778 thousand) were offset against wages and salaries[21](index=21&type=chunk) - All government grants were used to offset employee benefit expenses included in "Cost of sales"[22](index=22&type=chunk) [Finance Costs](index=11&type=section&id=Finance%20Costs) Finance costs significantly decreased this period, primarily due to reduced interest on loans and hire purchase arrangements Finance Costs Details (S$ Thousand) | Item | 2025 (S$ Thousand) | 2024 (S$ Thousand) | | :--- | :--- | :--- | | Interest on loans | 18 | 38 | | Interest on lease liabilities | 35 | 45 | | Interest on hire purchase arrangements | 10 | 14 | | **Total** | **63** | **97** | [Income Tax Expense](index=12&type=section&id=Income%20Tax%20Expense) Income tax expense increased to S$561 thousand, mainly due to an overall increase in taxable income of the Company's subsidiaries, with corporate income tax rates of 17% in Singapore and 20% in Thailand Income Tax Expense Details (S$ Thousand) | Item | 2025 (S$ Thousand) | 2024 (S$ Thousand) | | :--- | :--- | :--- | | Singapore corporate income tax | 516 | 307 | | Thailand corporate income tax | 45 | – | | **Total** | **561** | **307** | - Singapore corporate income tax is calculated at **17%** of estimated taxable profits, and Thailand income tax is calculated at **20%** of estimated taxable profits[24](index=24&type=chunk) [Earnings per Share](index=12&type=section&id=Earnings%20per%20Share) For the six months ended June 30, 2025, basic and diluted earnings per share were **S$0.104 cents**, a significant increase from the prior period, with basic and diluted earnings being the same Earnings per Share Calculation | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company (S$ Thousand) | 2,082 | 1,092 | | Weighted average number of ordinary shares in issue (Thousand shares) | 2,000,000 | 2,000,000 | | Basic and diluted earnings per share (S$ Cents) | 0.104 | 0.055 | - As there were no potential ordinary shares in issue for both periods, the diluted earnings per share for both periods were the same as the basic earnings per share[25](index=25&type=chunk) [Dividends](index=13&type=section&id=Dividends) A final dividend of S$4,000 thousand for 2024 was recognized and paid this period, but the Board did not declare an interim dividend Dividends Recognized (S$ Thousand) | Dividend Type | 2025 (S$ Thousand) | 2024 (S$ Thousand) | | :--- | :--- | :--- | | 2023 Final – S$0.0015 per ordinary share | – | 3,000 | | 2024 Final – S$0.002 per ordinary share | 4,000 | – | | **Total** | **4,000** | **3,000** | - The Board did not declare an interim dividend for the six months ended June 30, 2025[26](index=26&type=chunk) [Trade and Other Receivables, Deposits and Prepayments](index=13&type=section&id=Trade%20and%20Other%20Receivables,%20Deposits%20and%20Prepayments) As of June 30, 2025, total trade and other receivables, deposits, and prepayments amounted to S$19,199 thousand, largely consistent with the end of 2024, with trade receivables showing an increase Total Trade and Other Receivables, Deposits and Prepayments (S$ Thousand) | Item | June 30, 2025 (S$ Thousand) | December 31, 2024 (S$ Thousand) | | :--- | :--- | :--- | | Trade receivables (net of allowance) | 14,160 | 13,358 | | Unbilled revenue (net of allowance) | 2,996 | 3,767 | | Deposits | 417 | 610 | | Prepayments | 540 | 400 | | Other receivables | 1,086 | 1,018 | | **Total** | **19,199** | **19,153** | [Trade Receivables](index=14&type=section&id=(a)%20Trade%20Receivables) As of June 30, 2025, trade receivables (net of allowance) were S$14,160 thousand, with credit terms typically 0 to 90 days, and a significant increase in receivables aged 0 to 30 days Trade Receivables Ageing Analysis (S$ Thousand) | Ageing | June 30, 2025 (S$ Thousand) | December 31, 2024 (S$ Thousand) | | :--- | :--- | :--- | | 0 to 30 days | 10,118 | 6,169 | | 31 to 60 days | 1,315 | 3,952 | | 61 to 90 days | 1,923 | 1,608 | | 91 to 120 days | 669 | 727 | | Over 120 days | 135 | 902 | | **Total** | **14,160** | **13,358** | - The Group generally grants credit terms of **0 to 90 days** to its customers[28](index=28&type=chunk) - Expected credit loss provisions of **S$548 thousand** and **S$21 thousand** were recognized for trade receivables and unbilled revenue, respectively[28](index=28&type=chunk) [Deposits and Other Receivables](index=14&type=section&id=(b)%20Deposits%20and%20Other%20Receivables) Other deposits primarily include rental deposits for worker dormitories and equipment, utility fees, and tender fees - Other deposits mainly refer to rental deposits for worker dormitories and equipment, utility fees, and tender fees[29](index=29&type=chunk) [Prepayments](index=14&type=section&id=(c)%20Prepayments) Prepayments are mainly for the procurement of operational supplies and premiums for cleaning contracts - Prepayments mainly refer to upfront payments for the procurement of operational supplies and other consumables, as well as premiums paid for cleaning contracts[30](index=30&type=chunk) [Trade and Other Payables](index=15&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables amounted to S$8,080 thousand, a decrease from the end of 2024, primarily due to reduced trade payables and accrued employee benefit expenses Trade and Other Payables Details (S$ Thousand) | Item | June 30, 2025 (S$ Thousand) | December 31, 2024 (S$ Thousand) | | :--- | :--- | :--- | | Trade payables | 1,247 | 1,770 | | Other payables | 1,871 | 1,625 | | Accrued expenses | 211 | 286 | | Accrued employee benefit expenses | 4,751 | 4,905 | | **Total** | **8,080** | **8,586** | Trade Payables Ageing Analysis (S$ Thousand) | Ageing | June 30, 2025 (S$ Thousand) | December 31, 2024 (S$ Thousand) | | :--- | :--- | :--- | | 0 to 30 days | 789 | 936 | | 31 to 60 days | 234 | 562 | | 61 to 90 days | 145 | 117 | | Over 90 days | 79 | 155 | | **Total** | **1,247** | **1,770** | [Management Discussion and Analysis](index=16&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a comprehensive review of the Group's business operations, financial performance, liquidity, capital resources, and future outlook for the reporting period [Business Review](index=16&type=section&id=Business%20Review) The Group is a cleaning service provider in the environmental services industry in Singapore and Thailand with over 30 years of experience, actively deploying digital solutions to enhance efficiency. Revenue grew by 6.4% this period, driven by new projects in Singapore and business growth in Thailand. The Group will continue to invest in technology and staff training to strengthen its market position - The Group is a well-known general cleaning service provider headquartered in Singapore, operating in Singapore and Thailand, with over **30 years of industry experience**[32](index=32&type=chunk) - The Group deploys digital solutions to improve work efficiency and facilitate better decision-making, adapting to the shift from headcount-based to outcome-based cleaning contracts[33](index=33&type=chunk) - For the six months ended June 30, 2025, the Group's revenue increased by **6.4%** compared to the same period in 2024, primarily due to newly secured large projects in Singapore and organic growth in the Group's environmental services business in Thailand[33](index=33&type=chunk) - The Group will continue to pursue becoming an integrated service provider in the environmental services industry and is committed to enhancing productivity through investments in technology and employee training[34](index=34&type=chunk) [Financial Review](index=17&type=section&id=Financial%20Review) The Group's financial performance was strong this period, with revenue growth of 6.4%, gross profit margin increasing to 18.9%, and profit for the period significantly rising by 84.3%, driven by new projects in Singapore, Thailand business growth, increased government grants, and lower finance costs - The Group's total revenue was approximately **S$39.4 million**, an increase of approximately **6.4%** compared to the same period in 2024[35](index=35&type=chunk) - The gross profit margin increased from **16.4% to 18.9%**, primarily due to reduced labor-related expenses and increased government employment subsidies received from the Singapore government[37](index=37&type=chunk) - The Group's net profit for the six months ended June 30, 2025, was approximately **S$2.1 million**, compared to S$1.2 million for the six months ended June 30, 2024[43](index=43&type=chunk) [Revenue](index=17&type=section&id=Revenue) For the six months ended June 30, 2025, total revenue was approximately S$39.4 million, a 6.4% year-on-year increase, driven by new large projects in Singapore and organic growth in Thailand's environmental services business Revenue Comparison (S$ Million) | Indicator | Six Months Ended June 30, 2025 (S$ Million) | Six Months Ended June 30, 2024 (S$ Million) | Growth Rate (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 39.4 | 37.0 | 6.4% | - Revenue growth was primarily due to newly secured large projects in Singapore and organic growth in the Group's environmental services business in Thailand[35](index=35&type=chunk) [Cost of Sales](index=17&type=section&id=Cost%20of%20Sales) Cost of sales increased to S$31.9 million, a 3.2% year-on-year increase, with specific reasons detailed in the gross profit and gross profit margin section Cost of Sales Comparison (S$ Million) | Indicator | Six Months Ended June 30, 2025 (S$ Million) | Six Months Ended June 30, 2024 (S$ Million) | Growth Rate (%) | | :--- | :--- | :--- | :--- | | Cost of sales | 31.9 | 30.9 | 3.2% | [Gross Profit and Gross Profit Margin](index=18&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) Gross profit increased to S$7.4 million, and the gross profit margin improved to 18.9%, mainly due to reduced labor-related expenses and increased government employment subsidies Gross Profit and Gross Profit Margin Comparison (S$ Million) | Indicator | Six Months Ended June 30, 2025 (S$ Million) | Six Months Ended June 30, 2024 (S$ Million) | | :--- | :--- | :--- | | Gross profit | 7.4 | 6.1 | | Gross profit margin | 18.9% | 16.4% | - The improvement in gross profit margin was primarily due to reduced labor-related expenses and increased government-provided employment subsidies received from the Singapore government[37](index=37&type=chunk) - The Group recognized government grants totaling approximately **S$1.6 million** (June 30, 2024: S$0.8 million)[37](index=37&type=chunk) [Administrative Expenses](index=18&type=section&id=Administrative%20Expenses) Administrative expenses increased to S$4.8 million, mainly due to higher employee benefit expenses and professional fees Administrative Expenses Comparison (S$ Million) | Indicator | Six Months Ended June 30, 2025 (S$ Million) | Six Months Ended June 30, 2024 (S$ Million) | | :--- | :--- | :--- | | Administrative expenses | 4.8 | 4.6 | - The increase in administrative expenses was primarily due to higher employee benefit expenses and professional fees[38](index=38&type=chunk) [Finance Costs](index=18&type=section&id=Finance%20Costs) Finance costs decreased to S$63 thousand, mainly due to reduced interest expenses from the Group's borrowings Finance Costs Comparison (S$ Thousand) | Indicator | Six Months Ended June 30, 2025 (S$ Thousand) | Six Months Ended June 30, 2024 (S$ Thousand) | | :--- | :--- | :--- | | Finance costs | 63 | 97 | - The decrease in finance costs was primarily due to reduced interest expenses arising from the Group's borrowings[39](index=39&type=chunk) [Other Gains](index=18&type=section&id=Other%20Gains) Net other gains were S$27 thousand, primarily from the disposal of property, plant, and equipment, partially offset by foreign exchange losses Other Gains Comparison (S$ Thousand) | Indicator | Six Months Ended June 30, 2025 (S$ Thousand) | Six Months Ended June 30, 2024 (S$ Thousand) | | :--- | :--- | :--- | | Other gains/(losses) – net | 27 | (6) | - Other gains primarily represent gains on disposal of property, plant and equipment, partially offset by net foreign exchange losses[40](index=40&type=chunk) [Other Income](index=18&type=section&id=Other%20Income) Other income remained stable at S$102 thousand, mainly from interest income on fixed bank deposits Other Income Comparison (S$ Thousand) | Indicator | Six Months Ended June 30, 2025 (S$ Thousand) | Six Months Ended June 30, 2024 (S$ Thousand) | | :--- | :--- | :--- | | Other income | 102 | 95 | - Other income primarily represents interest income generated from the Group's fixed bank deposits[41](index=41&type=chunk) [Income Tax Expense](index=19&type=section&id=Income%20Tax%20Expense) Income tax expense increased to S$561 thousand, with an effective tax rate of 20.9%, mainly due to an overall increase in taxable income of the subsidiaries Income Tax Expense Comparison (S$ Thousand) | Indicator | Six Months Ended June 30, 2025 (S$ Thousand) | Six Months Ended June 30, 2024 (S$ Thousand) | | :--- | :--- | :--- | | Income tax expense | 561 | 307 | | Effective tax rate | 20.9% | 21.1% | - The increase in tax expense was primarily due to an overall increase in the taxable income of the Company's subsidiaries[42](index=42&type=chunk) [Profit for the Period](index=19&type=section&id=Profit%20for%20the%20Period) Net profit for the period was approximately S$2.1 million, a significant increase from S$1.2 million in the prior period, reflecting the combined impact of the aforementioned financial factors Profit for the Period Comparison (S$ Million) | Indicator | Six Months Ended June 30, 2025 (S$ Million) | Six Months Ended June 30, 2024 (S$ Million) | | :--- | :--- | :--- | | Net profit | 2.1 | 1.2 | [Liquidity and Capital Resources](index=19&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the Group's current ratio was 3.0, indicating a net cash position, strong short-term solvency, and ample liquidity Liquidity Position (S$ Million) | Indicator | June 30, 2025 (S$ Million) | December 31, 2024 (S$ Million) | | :--- | :--- | :--- | | Current assets | 33.9 | 37.0 | | Current liabilities | 11.3 | 12.3 | | Current ratio | 3.0 | 3.0 | - The Group was in a **net cash position** as of June 30, 2025, and the net debt to capital ratio was not applicable[44](index=44&type=chunk) [Capital Expenditure](index=19&type=section&id=Capital%20Expenditure) For the six months ended June 30, 2025, the Group incurred no other significant capital expenditure apart from the disclosed matters - No other significant capital expenditure was incurred for the six months ended June 30, 2025[45](index=45&type=chunk) [Contingent Liabilities](index=20&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[46](index=46&type=chunk) [Pledge of Assets](index=20&type=section&id=Pledge%20of%20Assets) The Group's bank financing is secured by trade receivables, a debenture creating fixed and floating charges over all assets, and corporate guarantees - The Group's bank financing is secured by trade receivables financing, a debenture creating fixed and floating charges over all assets, and corporate guarantees provided by the Company and its subsidiaries[47](index=47&type=chunk) [Future Plans for Material Investments and Capital Assets](index=20&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) Except as disclosed in this announcement, the Group had no future plans for material investments and capital assets as of June 30, 2025 - Except as disclosed in this announcement, the Group had no plans for material investments and capital assets as of June 30, 2025[48](index=48&type=chunk) [Material Investments, Acquisitions and Disposals](index=20&type=section&id=Material%20Investments,%20Acquisitions%20and%20Disposals) For the six months ended June 30, 2025, the Company held no other material investments, material acquisitions, or disposals of subsidiaries, associates, and joint ventures - For the six months ended June 30, 2025, the Company held no other material investments, material acquisitions, or disposals of subsidiaries, associates, and joint ventures[49](index=49&type=chunk) [Foreign Exchange Risk Management](index=20&type=section&id=Foreign%20Exchange%20Risk%20Management) The Group's functional currency is the Singapore Dollar, with most revenue and expenses denominated in SGD; currently, there is no foreign exchange hedging policy, but management continuously monitors foreign exchange risk - The Group's functional currency is the Singapore Dollar, and most of its revenue and expenses are denominated in Singapore Dollars[50](index=50&type=chunk) - The Group currently has no foreign exchange hedging policy, and management continuously monitors the Group's foreign exchange risk[50](index=50&type=chunk) [Events After Reporting Period](index=20&type=section&id=Events%20After%20Reporting%20Period) As of the date of this announcement, the Directors have not noted any significant events concerning the Group's business or financial performance after June 30, 2025 - As of the date of this announcement, the Directors have not noted any significant events concerning the Group's business or financial performance after June 30, 2025[51](index=51&type=chunk) [Use of Proceeds from Listing](index=21&type=section&id=Use%20of%20Proceeds%20from%20Listing) The Company's net proceeds from listing were approximately S$11.8 million, most of which have been utilized as planned for cash flow mismatches, equipment procurement, and staff hiring, with some funds remaining unutilized Use of Proceeds from Listing and Utilization (S$ Thousand) | Purpose | Revised Allocation (S$ Thousand) | % of Total Net Proceeds | Utilized as of June 30, 2025 (S$ Thousand) | Unutilized as of June 30, 2025 (S$ Thousand) | Estimated Completion of Utilization | | :--- | :--- | :--- | :--- | :--- | :--- | | Acquisition of landscaping company | 1,774 | 15.0% | – | 1,774 | December 31, 2025 | | Procurement of waste management equipment | 605 | 5.1% | 605 | – | Not applicable | | Hiring of waste management personnel | 627 | 5.3% | 515 | 112 | December 31, 2025 | | Cash flow mismatch | 6,170 | 52.2% | 6,170 | – | Not applicable | | Hiring of sales and marketing personnel | 166 | 1.4% | 166 | – | Not applicable | | Hiring of safety personnel | 296 | 2.5% | 161 | 135 | December 31, 2025 | | Procurement of software and systems | 284 | 2.4% | 169 | 115 | December 31, 2025 | | Leasing of automated machinery and equipment | 721 | 6.1% | 721 | – | Not applicable | | General working capital | 1,182 | 10.0% | 1,182 | – | Not applicable | | **Total** | **11,825** | **100%** | **9,689** | **2,136** | | [Employee Remuneration and Relations](index=22&type=section&id=Employee%20Remuneration%20and%20Relations) As of June 30, 2025, the Group had approximately 3,047 employees, with remuneration based on skills, responsibilities, and performance, implementing a progressive wage model and mandatory provident fund scheme, maintaining good employee relations with no significant labor disputes during the reporting period - As of June 30, 2025, the Group had approximately **3,047 employees** (December 31, 2024: 2,609 employees)[53](index=53&type=chunk) - Remuneration is determined based on job skills, scope of work, responsibilities, and performance, with a progressive wage model and mandatory provident fund scheme implemented[53](index=53&type=chunk) - The Group believes it maintains good working relationships with its employees, and no significant labor disputes occurred during the reporting period[53](index=53&type=chunk) [Corporate Governance and Other Information](index=22&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section details the Company's adherence to corporate governance codes, securities trading standards, audit committee functions, and other compliance-related disclosures [Corporate Governance Code](index=22&type=section&id=Corporate%20Governance%20Code) The Company has adopted the Corporate Governance Code and believes it has complied with relevant code provisions during the reporting period, committed to maintaining high standards of corporate governance - The Company has adopted the Corporate Governance Code as its own code of corporate governance practices[54](index=54&type=chunk) - The Directors believe that the Company has complied with the relevant code provisions set out in the Corporate Governance Code during the reporting period[54](index=54&type=chunk) [Standard Code for Securities Transactions by Directors of Listed Issuers](index=23&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors%20of%20Listed%20Issuers) The Company has adopted the Standard Code, and all Directors confirm compliance with its required standards for directors' securities transactions during the reporting period - The Company has adopted the Standard Code as its code of conduct regarding securities transactions by Directors[55](index=55&type=chunk) - All Directors confirm that they have complied with the required standards set out in the Standard Code regarding Directors' securities transactions for the six months ended June 30, 2025[55](index=55&type=chunk) [Audit Committee](index=23&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, has reviewed the unaudited interim results for the period and confirmed compliance with applicable accounting principles and adequate disclosure - The Audit Committee comprises three members: Mr. Ong Kok Wah, Mr. Lau Chun Wing, and Mr. Leung Chi Hang, all of whom are independent non-executive directors[56](index=56&type=chunk) - The Audit Committee has reviewed the Company's unaudited interim results for the six months ended June 30, 2025, and confirmed compliance with applicable accounting principles, standards, and requirements, and that adequate disclosures have been made[56](index=56&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=23&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%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 reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[57](index=57&type=chunk) [Public Float](index=23&type=section&id=Public%20Float) As of the date of this announcement, the Company has maintained the required public float in accordance with the Listing Rules - As of the date of this announcement, the Company has maintained the required public float in accordance with the Listing Rules[58](index=58&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=24&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This interim results announcement has been published on the HKEX website and the Company's website, and the interim report will be dispatched to shareholders and posted on the aforementioned websites in due course - This interim results announcement has been published on the HKEX website and the Company's website[59](index=59&type=chunk) - The interim report for the six months ended June 30, 2025, will be dispatched to shareholders and posted on the aforementioned websites in due course[59](index=59&type=chunk) [Definitions](index=24&type=section&id=Definitions) This section provides definitions for key terms and abbreviations used throughout the report to ensure clarity and consistent understanding [Definitions](index=24&type=section&id=Definitions) This section provides definitions for key terms and abbreviations used throughout the report, covering company entities, financial standards, business activities, geographical locations, and regulatory bodies - This section provides definitions for key terms and abbreviations used in the report, such as "Audit Committee," "Board," "Corporate Governance Code," "Cleaning Score," "Company," "Directors," "Glory Dragon," "FM02," "Group," "HK$," "Hong Kong," "ISO 9001:2015," "L6," "Listing," "Listing Rules," "Standard Code," "National Environment Agency," "Prospectus," "Reporting Period," "Share Offer," "Shareholders," "Shares," "Singapore," "Singapore Government," "Stock Exchange," "Subsidiary," "S$," "Thailand," and "%"[60](index=60&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk) [Board Information](index=26&type=section&id=Board%20Information) This section lists the executive and independent non-executive directors of Hygieia Group Limited's Board of Directors [Board Information](index=26&type=section&id=Board%20Information) This section lists the executive directors and independent non-executive directors of Hygieia Group Limited's Board of Directors - As of the date of this announcement, the executive directors are Mr. Toh Wing Kwai, Mr. Peh Poon Chew, and Ms. Toh Lay Choo[62](index=62&type=chunk) - The independent non-executive directors are Mr. Lau Chun Wing, Mr. Leung Chi Hang, and Mr. Ong Kok Wah[62](index=62&type=chunk)

（於中華人民共和國註冊成立的股份有限公司） 股份代號: 2120 2025 中期報告 2025 中期報告 目錄 | 公司資料 | 2 | | --- | --- | | 財務摘要 | 4 | | 管理層討論與分析 | 5 | | 企業管治及其他資料 | 33 | | 合併資產負債表 | 44 | | 母公司資產負債表 | 49 | | 合併利潤表 | 53 | | 母公司利潤表 | 56 | | 合併現金流量表 | 58 | | 母公司現金流量表 | 61 | | 合併股東權益變動表 | 63 | | 母公司股東權益變動表 | 65 | | 財務報表附註 | 67 | | 釋義 | 164 | 頁次 3 溫州康寧醫院股份有限公司 2025 中期報告 公司資料 董事會 執行董事 管偉立先生 （董事長） 王蓮月女士 王 健先生 非執行董事 秦 浩先生 李昌浩先生 獨立非執行董事 鐘文堂女士 金 玲女士 陳世強先生 審核委員會 鐘文堂女士 （主席） 李昌浩先生 金 玲女士 提名委員會 陳世強先生 （主席） 管偉立先生 金 玲女士 薪酬委員會 金 玲女士 （主席） 鐘文堂女士 陳世強先生 戰略與風險管理委員會 管偉立 ...

Company Overview Swire Properties is a leading integrated property developer, owner, and operator in Hong Kong and Mainland China, specializing in commercial real estate, property trading, and hotel management, and has achieved its 2030 sustainability vision six years early - The company is a leading integrated property developer, owner, and operator in Hong Kong and Mainland China, primarily focused on commercial property projects, with businesses including property investment, property trading, and hotel investment and management[4](index=4&type=chunk) - The company has operations in high-end and premium residential markets in Hong Kong, Mainland China, Indonesia, Vietnam, and Thailand, with a planned project in Miami, USA; Swire Hotels has confirmed expansion plans into Japan[4](index=4&type=chunk) - The company achieved its 2030 vision of being a global leader in sustainable development six years ahead of schedule and is now focusing on setting 2050 targets[11](index=11&type=chunk)[23](index=23&type=chunk)[35](index=35&type=chunk) - Sustainable development highlights for the first half of 2025 include: being ranked in the top 1% of S&P Global Corporate Sustainability Assessment scores in The S&P Global Sustainability Yearbook, becoming the first Asia Pacific real estate developer to receive a "Medium Green" rating from S&P Global Ratings' Climate Transition Assessment, over 150 tenants participating in the "Environmental Performance Charter", over 130 F&B tenants receiving "Green Kitchen" certification, and launching the "Green Retail Partnership"[11](index=11&type=chunk) Financial Highlights In the first half of 2025, the company's underlying profit increased by 15% year-on-year to HK$4.42 billion, driven by asset disposals, while recurring underlying profit decreased by 4%; revenue grew by 20%, and cash from operations significantly increased by 65%, maintaining a robust financial position with a net debt-to-capital ratio of 15.7%, and an interim dividend increase of 3% was announced Key Financial Results for 1H 2025 (HK$ million) | Indicator | 1H 2025 | 1H 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | 8,723 | 7,279 | +20% | | Profit attributable to shareholders (Underlying) | 4,420 | 3,857 | +15% | | Profit attributable to shareholders (Recurring Underlying) | 3,420 | 3,570 | -4% | | Profit attributable to shareholders (Reported) | (1,202) | 1,796 | N/A | | Cash from operations | 6,103 | 3,701 | +65% | | Net cash inflow before financing | 6,683 | 1,284 | +420% | | Earnings per share (Underlying) | HK$0.76 | HK$0.66 | +15% | | Earnings per share (Recurring Underlying) | HK$0.59 | HK$0.61 | -3% | | Earnings per share (Reported) | (HK$0.21) | HK$0.31 | N/A | | First interim dividend | HK$0.35 | HK$0.34 | +3% | Financial Position as at June 30, 2025 (HK$ million) | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total equity | 272,547 | 278,427 | -2% | | Net debt | 42,853 | 43,746 | -2% | | Net debt-to-capital ratio | 15.7% | 15.7% | Zero percentage points | | Equity per share attributable to shareholders | HK$47.01 | HK$47.35 | -1% | Underlying Profit by Segment for 1H 2025 (HK$ million) | Segment | 1H 2025 | 1H 2024 | | :--- | :--- | :--- | | Property Investment | 3,747 | 3,693 | | Property Trading | (282) | (61) | | Hotels | (45) | (62) | | Recurring Underlying Profit | 3,420 | 3,570 | | Disposal of assets | 1,000 | 287 | | **Underlying Profit** | **4,420** | **3,857** | Chairman's Statement Despite global economic uncertainties, Swire Properties delivered strong performance in the first half of 2025, leveraging its premium property portfolio and community-building strategy, continuing to advance its HK$100 billion investment plan, strengthening financial resilience through capital recycling, achieving progressive dividend growth, and confidently pursuing long-term prospects in core markets after achieving its sustainability vision early - Underlying profit for the first half of 2025 increased by **15%** to **HK$4.42 billion**, primarily driven by profit from the disposal of Brickell City Centre retail mall and adjacent land in Miami[18](index=18&type=chunk) - Recurring underlying profit attributable to shareholders decreased by **4%**, mainly reflecting lower Hong Kong office rental income and increased sales and marketing expenses for residential trading projects[18](index=18&type=chunk) - The first interim dividend for 2025 was declared at **HK$0.35 per share**, a **3% increase** from 2024, with a target of mid-single-digit annual dividend growth and distributing approximately half of underlying profit as ordinary dividends[20](index=20&type=chunk) - The company repurchased **44,736,600 shares** totaling **HK$707 million** at an average price of **HK$15.8 per share**[20](index=20&type=chunk) - The HK$100 billion investment plan is progressing well, with **67%** of funds committed, focusing on three core markets: Hong Kong, Mainland China, and Southeast Asia[17](index=17&type=chunk) - The company achieved its 2030 sustainability vision six years ahead of schedule and is now focused on setting 2050 targets, committed to creating the world's most sustainable communities[23](index=23&type=chunk) Chief Executive's Report Despite a challenging operating environment, Swire Properties maintained robust performance and growth momentum in the first half of 2025 through a focus on quality, innovation, and strategic execution, continuing to advance its HK$100 billion investment plan in core markets across Hong Kong, Mainland China, and Southeast Asia, while making progress in asset recycling, sustainability, and digital transformation - Recurring underlying pre-tax profit from investment properties decreased in the first half of 2025, mainly due to lower Hong Kong office rental income[28](index=28&type=chunk) - The Hong Kong office market remains challenging, but the company's portfolio remains resilient with stable occupancy rates, and Two Taikoo Place and Six Pacific Place are progressing well with leasing[28](index=28&type=chunk) - Retail sales in Mainland China stabilized, with overall footfall increasing, reflecting the attractiveness of the company's malls, and competitive advantages were enhanced through tenant mix optimization and experiential activities[28](index=28&type=chunk)[29](index=29&type=chunk) - The disposal of interests in Brickell City Centre retail mall, car parks, and adjacent vacant land in Miami was completed, with proceeds to be reinvested into the HK$100 billion investment plan[30](index=30&type=chunk) - The company is committed to accelerating digital transformation, initiating multiple generative AI projects to enhance operational flexibility and customer experience[36](index=36&type=chunk) - Hotel business performance was mixed, with slower recovery in Hong Kong hotels, varied results for Mainland China hotels, and continued strong performance from EAST Miami in the US[29](index=29&type=chunk) Business Review This section details the company's business performance in the first half of 2025, including a financial overview, progress of the HK$100 billion investment plan, major asset transactions, and specific conditions and market outlook for investment properties, property trading, and hotel businesses in Hong Kong, Mainland China, and the United States, demonstrating the company's resilience and growth potential through strategic investments and asset management amidst macroeconomic challenges 2025 First Half Total Revenue (HK$ million) | Revenue Source | 1H 2025 | 1H 2024 | | :--- | :--- | :--- | | Gross rental income | 6,576 | 6,727 | | Property trading | 1,706 | 88 | | Hotels | 441 | 464 | | **Total Revenue** | **8,723** | **7,279** | 2025 First Half Operating Profit/(Loss) (HK$ million) | Indicator | 1H 2025 | 1H 2024 | | :--- | :--- | :--- | | Property investment (from operations) | 3,918 | 4,389 | | Fair value loss on investment properties | (3,900) | (842) | | Property trading | 511 | (54) | | Hotels | (53) | (57) | | **Total Operating Profit** | **355** | **3,217** | - Reported loss attributable to shareholders was **HK$1.202 billion**, primarily due to a fair value loss on investment properties of **HK$4.68 billion** (mainly from the Hong Kong office portfolio)[44](index=44&type=chunk) - The HK$100 billion investment plan has committed approximately **HK$67 billion** in total (HK$11 billion in Hong Kong, HK$46 billion in Mainland China, and HK$10 billion in residential property trading projects)[48](index=48&type=chunk) - In April 2025, the Group acquired a **12.07% interest** in Brickell City Centre retail mall in Miami for **US$73.5 million**, increasing its total interest to **75%**[49](index=49&type=chunk) - In June 2025, the Group completed the disposal of its **75% interest** in Brickell City Centre retail mall, along with car parks and certain common facilities, to Simon Property Group for a total consideration of up to **US$548.7 million**[50](index=50&type=chunk) [Investment Properties — Hong Kong](index=23&type=section&id=投資物業%20—%20香港) The Hong Kong investment property portfolio faced challenges in the first half of 2025, with declining office rental

[Financial Summary](index=2&type=section&id=Financial%20Summary) The group's financial performance for the period shows a slight increase in profit attributable to shareholders and earnings per share | Metric | 2025 (HKD million) | 2024 (HKD million) | Change (%) | | :--- | :--- | :--- | :--- | | Profit attributable to shareholders | 3,042 | 3,006 | +1.2% | | Earnings per share | 1.43 | 1.41 | +1.4% | | Interim dividend per share | 0.78 | 0.78 | 0% | [Company Information](index=4&type=section&id=Company%20Information) The company's governance structure includes a board of directors, various committees, and key financial partners - The Board of Directors comprises executive, non-executive, and independent non-executive directors, with Andrew Yuen as Chairman and Tso-chung Choi as CEO[6](index=6&type=chunk) - The company has Audit, Remuneration, Nomination, and Sustainability Committees to ensure effective corporate governance[6](index=6&type=chunk) - Key banking partners include Bank of China (Hong Kong), Hang Seng Bank, HSBC, and MUFG Bank, with KPMG as the auditor[6](index=6&type=chunk) [Key Dates and Share Information](index=5&type=section&id=Key%20Dates%20and%20Share%20Information) This section outlines important financial dates and key details regarding the company's shares and market capitalization Key Dates | Key Date | Details | | :--- | :--- | | Announcement of Interim Results | August 13, 2025 | | Ex-dividend Date | September 10, 2025 | | Interim Dividend Record Date | September 11, 2025 | | Payment of Interim Dividend | September 23, 2025 (HKD 0.78 per share) | | Financial Year | December 31, 2025 | Share Information | Share Information | Details | | :--- | :--- | | Trading Lot (per board lot) | 500 shares | | Market Capitalization as at June 30, 2025 | HKD 107.514 billion | | Ordinary Share to American Depositary Receipt Ratio | 1:1 | | Stock Code on The Stock Exchange of Hong Kong Limited | 6 | | Bloomberg Ticker | 6 HK | | Refinitiv Ticker | 0006.HK | | American Depositary Receipt Number | HGKGY | | CUSIP Reference Number | 739197200 | [Chairman's Report](index=6&type=section&id=Chairman's%20Report) The Chairman's report provides an overview of the group's interim performance, financial strength, and strategic outlook [Interim Results](index=6&type=section&id=Interim%20Results) The group's 2025 first-half financial performance was stable, with profit attributable to shareholders increasing by 1% to HKD 3.042 billion, demonstrating resilience amidst global market volatility | Metric | 2025 (HKD million) | 2024 (HKD million) | Year-on-year Growth (%) | | :--- | :--- | :--- | :--- | | Profit attributable to shareholders | 3,042 | 3,006 | +1% | - The Group's quality energy business portfolio operates under regulatory frameworks or long-term off-take agreements, consistently delivering stable returns[9](index=9&type=chunk) [Interim Dividend](index=6&type=section&id=Interim%20Dividend) The Board declared an interim dividend of HKD 0.78 per share, consistent with the prior year, to be paid on September 23, 2025 | Metric | 2025 (HKD) | 2024 (HKD) | | :--- | :--- | :--- | | Interim dividend per share | 0.78 | 0.78 | - The dividend will be paid on September 23, 2025, to shareholders registered on September 11, 2025[10](index=10&type=chunk) [Strong Financial Foundation](index=6&type=section&id=Strong%20Financial%20Foundation) The group maintains a strong financial position with an "A/Stable" credit rating from S&P and a net debt to total capital net ratio of 2% (46% on a look-through basis), providing a solid base for future growth - The Group holds an "A/Stable" credit rating from S&P[11](index=11&type=chunk) Net Debt to Total Capital Net Ratio | Metric | Value | | :--- | :--- | | Net debt to total capital net ratio | 2% | | Look-through net debt to total capital net ratio (attributable to international investment portfolio) | 46% | [International Energy Portfolio](index=6&type=section&id=International%20Energy%20Portfolio) The group's international energy portfolio shows varied performance, with significant growth in the UK, a decline in Australia due to exchange rates and contract expirations, reduced contributions from Canada, and ongoing restoration and development in other regions [UK Operations](index=6&type=section&id=UK%20Operations) UK operations showed significant profit contribution growth, driven by strong performance from UK Power Networks and active participation in environmental initiatives by gas networks | Metric | 2025 (HKD million) | 2024 (HKD million) | Year-on-year Growth (%) | | :--- | :--- | :--- | :--- | | Profit Contribution | 1,724 | 1,550 | +11% | - UK Power Networks (UKPN) performed excellently, with no lost-time injuries in the first half and a customer satisfaction rate of **94.7%**[12](index=12&type=chunk)[13](index=13&type=chunk) - Northern Gas Networks (NGN) and Wales & West Utilities (WWU) actively participate in environmental projects, contributing to the UK's net-zero carbon emissions target[13](index=13&type=chunk) - UK Renewables Energy supplied **111 million kWh** of clean energy during the period and actively explores renewable energy opportunities[14](index=14&type=chunk) [Australia Operations](index=7&type=section&id=Australia%20Operations) Australian operations experienced a profit decline primarily due to a weaker Australian dollar, expiring contracts, and lower market electricity prices | Metric | 2025 (HKD million) | 2024 (HKD million) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Profit Contribution | 652 | 681 | -4.3% | - The decline in performance was mainly due to the depreciation of the Australian dollar, expiration of some Energy Developments Pty Ltd (EDL) contracts, and lower market electricity prices[15](index=15&type=chunk) - Victoria Power Networks and United Energy have submitted regulatory proposals, planning to invest billions of Australian dollars to support energy transition and enhance energy resilience[16](index=16&type=chunk) - Dampier Bunbury Pipeline achieved record gas throughput and **100%** reliability[17](index=17&type=chunk) [Canada Operations](index=8&type=section&id=Canada%20Operations) Canadian operations saw stable cash flow from Husky Midstream, but Canadian Power's profit contribution decreased due to reduced generation and lower electricity prices in Alberta - Husky Midstream recorded stable cash flow and returns during the period[18](index=18&type=chunk) - Canadian Power's profit contribution decreased, mainly due to reduced power generation and lower electricity prices from gas-fired units in Alberta[18](index=18&type=chunk) [Other Operations](index=8&type=section&id=Other%20Operations) Other operations include energy development projects in mainland China, restoration efforts in the Netherlands, and stable utility operations in New Zealand and Thailand - Zhuhai Jinwan Power Plant in mainland China is developing combined heat and power and energy-saving projects, while Dali and Laoting Wind Farms continue to reduce carbon emissions[19](index=19&type=chunk) - Restoration of the AVR Rozenburg incineration plant in the Netherlands is in its final stages, with power generation equipment expected to commence commercial operation in the first quarter of **2026**[20](index=20&type=chunk) - Wellington Electricity in New Zealand maintained stable operations, and Ratchaburi Power Company in Thailand received guaranteed returns[20](index=20&type=chunk) [Investment in HK Electric Investments](index=9&type=section&id=Investment%20in%20HK%20Electric%20Investments) HK Electric Investments provided stable returns, with profit contribution increasing by 5.7% year-on-year, despite a slight decrease in electricity sales due to mild weather, and new gas and emergency fuel units are progressing well | Metric | 2025 (HKD million) | 2024 (HKD million) | Year-on-year Growth (%) | | :--- | :--- | :--- | :--- | | Profit Contribution | 334 | 316 | +5.7% | - HK Electric's electricity sales decreased by **3.2%** compared to the same period in 2024, mainly due to milder weather during the period[21](index=21&type=chunk) - Piling and site preparation for the new gas-fired combined cycle generating unit L13 have commenced as scheduled, with commercial operation expected in **2029**[21](index=21&type=chunk) - Construction and assembly of three new open-cycle fuel oil generating units are progressing steadily, with phased operation expected in **2027** and **2028**[21](index=21&type=chunk) [Sustainability Highlights](index=9&type=section&id=Sustainability%20Highlights) The group's international portfolio prioritizes green energy, renewable transition, and climate change adaptation, actively promoting advanced grid protection technologies and signing agreements for biomethane integration - Multiple businesses have completed climate scenario analyses, identifying climate-related risks and opportunities to align with sustainable growth business strategies[22](index=22&type=chunk) - Distribution businesses actively promote the use of advanced technologies to protect power grids from climate change impacts[23](index=23&type=chunk) - AGN has signed an agreement to connect the first biomethane project's gas to the South Australian gas distribution network[24](index=24&type=chunk) [Post-Review Period Events](index=10&type=section&id=Post-Review%20Period%20Events) In July 2025, Eversholt UK Rails Group Limited, jointly owned by Power Assets and other CK Group companies, reached an agreement to sell its UK Rails business - Eversholt UK Rails Group Limited, jointly owned by Power Assets, CK Infrastructure, CK Asset, and CK Hutchison Holdings, has reached an agreement to sell its UK Rails business[25](index=25&type=chunk) [Outlook](index=10&type=section&id=Outlook) Leveraging its strong financial position and international portfolio, the group will continue to seek suitable investment opportunities globally, focusing on well-regulated, mature energy markets and strengthening strategic partnerships for predictable returns - The Group will continue to seek suitable investment opportunities globally that drive growth[26](index=26&type=chunk) - Focus will be on expanding quality businesses in well-regulated, mature energy markets to achieve predictable and attractive returns[26](index=26&type=chunk) - The successful strategic partnerships with CK Infrastructure and CK Asset will continue to be strengthened[26](index=26&type=chunk) [Financial Review](index=11&type=section&id=Financial%20Review) This section provides a detailed review of the group's capital expenditure, liquidity, financial resources, treasury policy, and debt structure [Capital Expenditure, Liquidity and Financial Resources](index=11&type=section&id=Capital%20Expenditure%2C%20Liquidity%20and%20Financial%20Resources) The group's capital expenditures are primarily funded by operating cash flow and investment income; as of June 30, 2025, total unsecured bank loans increased, while bank deposits and cash decreased, and committed but unutilized credit facilities significantly reduced | Metric | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | Change (%) | | :--- | :--- | :--- | :--- | | Total unsecured bank loans | 3,768 | 2,505 | +50.4% | | Bank deposits and cash | 1,561 | 2,733 | -42.9% | | Committed but unutilized bank credit facilities | 150 | 1,000 | -85% | [Treasury Policy, Financing Activities and Debt Structure](index=11&type=section&id=Treasury%20Policy%2C%20Financing%20Activities%20and%20Debt%20Structure) The group manages financial risks according to its treasury policy, maintaining an "A/Stable" credit rating, and as of June 30, 2025, transitioned from a net cash position to a net debt of HKD 2.207 billion, with a net debt to total capital net ratio of 2% (46% on a look-through basis), slightly higher than the 44% at the end of 2024 - The Group's treasury policy aims to manage currency, interest rate, and counterparty risks, ensuring ample financial resources and maintaining a prudent capital structure[29](index=29&type=chunk) - S&P reaffirmed the company's long-term issuer credit rating of "A" with a "stable" outlook on February 19, 2025[29](index=29&type=chunk) Net Debt and Capital Ratios | Metric | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | Change | | :--- | :--- | :--- | :--- | | Net debt level | 2,207 (net debt) | 228 (net cash) | From net cash to net debt | | Net debt to total capital net ratio | 2% | N/A | Increased | | Look-through net debt to total capital net ratio | 46% | 44% | Slightly increased | - The Group's external loan structure is **65%** Australian dollar, **35%** Hong Kong dollar; **100%** bank loans; **100%** repayable within 1 year; and **100%** floating interest rates[31](index=31&type=chunk) [Financial Derivatives](index=12&type=section&id=Financial%20Derivatives) The group actively manages currency and interest rate risks using financial derivatives for hedging, not speculation, with foreign exchange risk primarily managed through local currency loans or forward foreign exchange contracts, and the notional amount of outstanding derivative contracts decreased - Financial derivatives are primarily used to manage interest rate and foreign exchange risks, not for speculative purposes[32](index=32&type=chunk) - To mitigate currency risk for investments outside Hong Kong, the Group uses local currency-denominated loans or enters into forward foreign exchange contracts or cross-currency swap contracts[33](index=33&type=chunk) Notional Amount of Outstanding Financial Derivative Contracts | Metric | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | Change (%) | | :--- | :--- | :--- | :--- | | Notional amount of outstanding financial derivative contracts | 29,784 | 32,377 | -8% | [Contingent Liabilities](index=12&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the group had no guarantees or indemnity undertakings - As of June 30, 2025, the Group had no guarantees or indemnity undertakings[35](index=35&type=chunk) [Employees](index=12&type=section&id=Employees) The group employs a performance-based remuneration policy and has no share option scheme; total staff costs for the six months ended June 30, 2025, were HKD 14 million, with the number of employees increasing to 16 Total Staff Remuneration Expenses | Metric | 2025 (HKD million) | 2024 (HKD million) | | :--- | :--- | :--- | | Total staff remuneration expenses | 14 | 14 | Number of Employees | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of employees | 16 | 14 | - The Group has no share option scheme[35](index=35&type=chunk) [Unaudited Consolidated Income Statement](index=13&type=section&id=Unaudited%20Consolidated%20Income%20Statement) The unaudited consolidated income statement shows a slight increase in profit attributable to shareholders despite a decrease in revenue, driven by improved results from joint ventures and associates | Metric | 2025 (HKD million) | 2024 (HKD million) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 352 | 454 | -22.5% | | Other net income | 143 | 122 | +17.2% | | Other operating costs | (151) | (87) | +73.6% | | Finance costs | (112) | (80) | +40% | | Share of results of joint ventures | 2,136 | 2,014 | +6.1% | | Share of results of associates | 781 | 711 | +9.8% | | Profit before tax | 3,149 | 3,134 | +0.5% | | Income tax | (107) | (128) | -16.4% | | Profit for the period attributable to shareholders of the Company | 3,042 | 3,006 | +1.2% | | Earnings per share (basic and diluted) | 1.43 | 1.41 | +1.4% | [Unaudited Consolidated Statement of Comprehensive Income](index=14&type=section&id=Unaudited%20Consolidated%20Statement%20of%20Comprehensive%20Income) The unaudited consolidated statement of comprehensive income shows a significant increase in total comprehensive income attributable to shareholders, primarily due to positive exchange differences from overseas operations | Metric | 2025 (HKD million) | 2024 (HKD million) | | :--- | :--- | :--- | | Profit for the period attributable to shareholders of the Company | 3,042 | 3,006 | | **Other comprehensive income for the period** | | | | Items that will not be reclassified subsequently to profit or loss | | | | Share of other comprehensive income of joint ventures and associates | 107 | (861) | | Related tax | (29) | 214 | | Subtotal | 78 | (647) | | Items that may be reclassified subsequently to profit or loss | | | | Exchange differences on translation of operations outside Hong Kong | 4,979 | (926) | | Net investment hedge | (1,550) | 443 | | Cost of hedging | (15) | 8 | | Cash flow hedges: net change in hedging reserve | (6) | (13) | | Share of other comprehensive income of joint ventures and associates | (462) | 384 | | Related tax | 123 | (96) | | Subtotal | 3,069 | (200) | | **Total comprehensive income for the period attributable to shareholders of the Company** | **6,189** | **2,159** | - In the first half of 2025, total comprehensive income attributable to shareholders of the Company significantly increased to **HKD 6.189 billion**, primarily benefiting from the positive reversal of exchange differences on operations outside Hong Kong[38](index=38&type=chunk) [Unaudited Consolidated Statement of Financial Position](index=15&type=section&id=Unaudited%20Consolidated%20Statement%20of%20Financial%20Position) The unaudited consolidated statement of financial position shows a slight decrease in total assets less current liabilities, with a significant increase in net current liabilities due to the reclassification of bank loans | Metric | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | Change (%) | | :--- | :--- | :--- | :--- | | **Non-current assets** | | | | | Interests in joint ventures | 66,260 | 60,963 | +8.7% | | Interests in associates | 26,625 | 26,450 | +0.7% | | Financial derivatives | 850 | 2,050 | -58.5% | | **Current assets** | | | | | Bank balances and cash | 1,561 | 2,733 | -42.9% | | **Current liabilities** | | | | | Current portion of bank loans and other interest-bearing borrowings | (3,768) | – | N/A | | Other payables | (3,623) | (3,970) | -8.7% | | **Net current liabilities** | (5,245) | (589) | +790.5% | | **Total assets less current liabilities** | 89,615 | 90,000 | -0.4% | | **Non-current liabilities** | | | | | Bank loans and other interest-bearing borrowings | – | (2,505) | -100% | | Financial derivatives | (286) | (31) | +822.6% | | **Net assets** | **88,917** | **87,076** | **+2.1%** | | **Total equity attributable to shareholders of the Company** | **88,917** | **87,076** | **+2.1%** | - Net current liabilities significantly increased, primarily due to the reclassification of bank loans and other interest-bearing borrowings from non-current to current portions[39](index=39&type=chunk) [Unaudited Consolidated Statement of Changes in Equity](index=16&type=section&id=Unaudited%20Consolidated%20Statement%20of%20Changes%20in%20Equity) The unaudited consolidated statement of changes in equity shows an increase in total equity attributable to shareholders, driven by profit for the period and other comprehensive income | Item | June 30, 2025 (HKD million) | June 30, 2024 (HKD million) | | :--- | :--- | :--- | | Balance at January 1 | 87,076 | 88,752 | | Profit for the period | 3,042 | 3,006 | | Other comprehensive income | 3,147 | (847) | | Total comprehensive income | 6,189 | 2,159 | | Final dividend approved and paid for previous year | (4,348) | (4,348) | | Interim dividend | – | – | | Balance at June 30 | 88,917 | 86,563 | - As of June 30, 2025, total equity attributable to shareholders of the Company increased to **HKD 88.917 billion**, primarily due to significant growth in profit for the period and other comprehensive income[40](index=40&type=chunk) [Unaudited Consolidated Cash Flow Statement](index=17&type=section&id=Unaudited%20Consolidated%20Cash%20Flow%20Statement) The unaudited consolidated cash flow statement indicates a net decrease in cash and cash equivalents, resulting from reduced cash flows from operating and investing activities, despite a decrease in cash used in financing activities | Item | 2025 (HKD million) | 2024 (HKD million) | Change (%) | | :--- | :--- | :--- | :--- | | Net cash from operating activities | 115 | 179 | -35.8% | | Net cash from investing activities | 1,935 | 3,316 | -41.7% | | Net cash used in financing activities | (3,217) | (4,504) | -28.6% | | Net decrease in cash and cash equivalents | (1,167) | (1,009) | +15.7% | | Cash and cash equivalents at January 1 | 2,733 | 2,456 | +11.3% | | Cash and cash equivalents at June 30 | 1,559 | 1,447 | +7.7% | - Net cash from operating and investing activities both decreased, while net cash used in financing activities decreased, leading to an increased net decrease in cash and cash equivalents[41](index=41&type=chunk) [Notes to the Unaudited Interim Financial Statements](index=18&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Financial%20Statements) This section provides detailed notes explaining the basis of preparation, accounting policies, and specific financial items within the unaudited interim financial statements [1. Review of Unaudited Interim Financial Statements](index=18&type=section&id=1.%20Review%20of%20Unaudited%20Interim%20Financial%20Statements) The unaudited consolidated interim financial statements have been reviewed by the Audit Committee - These interim financial statements have been reviewed by the Audit Committee[42](index=42&type=chunk) [2. Basis of Preparation](index=18&type=section&id=2.%20Basis%20of%20Preparation) These interim financial statements are prepared in accordance with HKAS 34 and the Listing Rules, consistent with the accounting policies used in the 2024 annual financial statements, except for necessary changes - These interim financial statements are prepared in accordance with HKAS 34 and the applicable disclosure requirements of the Listing Rules[43](index=43&type=chunk) - The accounting policies adopted are consistent with those used in the 2024 annual financial statements, except for changes in accounting policies that are required to be reflected in the 2025 annual financial statements[43](index=43&type=chunk) - The company's auditor issued an unqualified audit report on the 2024 annual financial statements[45](index=45&type=chunk) [3. Changes in Accounting Policies](index=19&type=section&id=3.%20Changes%20in%20Accounting%20Policies) Several HKFRS amendments issued by the HKICPA became effective in this accounting period but had no significant impact on the group's results or financial position for the current or prior periods - Several amendments to Hong Kong Financial Reporting Standards (HKFRS) issued by the HKICPA became effective for the first time in the current accounting period[46](index=46&type=chunk) - These changes did not have a significant impact on the Group's results or financial position for the current or prior periods[46](index=46&type=chunk) [4. Segment Information](index=20&type=section&id=4.%20Segment%20Information) The group's segment revenue primarily comes from the UK and Australia, with total revenue decreasing in the first half of 2025 compared to 2024, showing significant profit growth in the UK but a decline in Australia Segment Revenue and Profit | Segment | 2025 Revenue (HKD million) | 2024 Revenue (HKD million) | 2025 Profit (HKD million) | 2024 Profit (HKD million) | | :--- | :--- | :--- | :--- | :--- | | Investment in HK Electric Investments | – | – | 334 | 316 | | UK | 171 | 205 | 1,724 | 1,550 | | Australia | 143 | 208 | 652 | 681 | | Others | 38 | 41 | 445 | 503 | | **Total** | **352** | **454** | **3,042** | **3,006** | - The UK segment's profit contribution increased by **11.2%** year-on-year, while the Australian segment's profit contribution decreased by **4.3%** year-on-year[47](index=47&type=chunk) [5. Revenue](index=21&type=section&id=5.%20Revenue) The group's revenue mainly consists of interest income from loans to joint ventures and associates, totaling HKD 352 million for the six months ended June 30, 2025, with a share of joint venture revenue at HKD 10.215 billion Revenue Breakdown | Item | 2025 (HKD million) | 2024 (HKD million) | | :--- | :--- | :--- | | Interest income | 352 | 454 | | Share of revenue of joint ventures | 10,215 | 9,258 | - The Group's revenue includes interest income from loans to joint ventures and associates[48](index=48&type=chunk) [6. Profit Before Tax](index=21&type=section&id=6.%20Profit%20Before%20Tax) For the six months ended June 30, 2025, the group's profit before tax was HKD 3.149 billion, a slight increase from the prior year, with stable finance costs and depreciation but a decrease in interest income Profit Before Tax Components | Item | 2025 (HKD million) | 2024 (HKD million) | | :--- | :--- | :--- | | Profit before tax | 3,149 | 3,134 | | Finance costs – interest on loans and other finance costs | 112 | 80 | | Depreciation | 2 | 2 | | Interest income from financial assets measured at amortised cost | (76) | (104) | [7. Income Tax](index=21&type=section&id=7.%20Income%20Tax) For the six months ended June 30, 2025, the group's total income tax was HKD 107 million, a decrease from the prior year, mainly due to reduced deferred tax Income Tax Breakdown | Item | 2025 (HKD million) | 2024 (HKD million) | | :--- | :--- | :--- | | Current tax | 99 | 91 | | Deferred tax | 8 | 37 | | **Total income tax** | **107** | **128** | - Tax provision is calculated based on estimated taxable profit at applicable tax rates after deducting available tax losses[51](index=51&type=chunk) [8. Earnings Per Share](index=22&type=section&id=8.%20Earnings%20Per%20Share) For the six months ended June 30, 2025, basic and diluted earnings per share were HKD 1.43, a slight increase from HKD 1.41 in the prior year, with the number of ordinary shares outstanding remaining unchanged Earnings Per Share Details | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Earnings per share | 1.43 | 1.41 | | Number of ordinary shares outstanding | 2,131,105,154 shares | 2,131,105,154 shares | - There were no potentially dilutive ordinary shares for the six months ended June 30, 2025, and 2024[53](index=53&type=chunk) [9. Property, Plant and Equipment and Leasehold Land](index=22&type=section&id=9.%20Property%2C%20Plant%20and%20Equipment%20and%20Leasehold%20Land) As of June 30, 2025, the net book value of the group's property, plant and equipment, and leasehold land was HKD 18 million, a slight decrease from January 1, 2025, primarily due to depreciation and amortization Property, Plant and Equipment and Leasehold Land Net Book Value | Item | June 30, 2025 (HKD million) | January 1, 2025 (HKD million) | | :--- | :--- | :--- | | Net book value | 18 | 19 | | Additions | 1 | N/A | | Depreciation and amortisation | (2) | N/A | [10. Interests in Joint Ventures](index=23&type=section&id=10.%20Interests%20in%20Joint%20Ventures) As of June 30, 2025, the group's total interests in joint ventures increased to HKD 66.260 billion, mainly due to the growth in net assets of unlisted joint ventures Interests in Joint Ventures | Item | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | | :--- | :--- | :--- | | Share of net assets of unlisted joint ventures | 57,945 | 53,247 | | Loans to unlisted joint ventures | 7,944 | 7,435 | | Amounts due from unlisted joint ventures | 371 | 281 | | **Total** | **66,260** | **60,963** | - The total assets of unlisted joint ventures amounted to **HKD 157.959 billion**[55](index=55&type=chunk) [11. Interests in Associates](index=23&type=section&id=11.%20Interests%20in%20Associates) As of June 30, 2025, the group's total interests in associates slightly increased to HKD 26.625 billion, primarily due to an increase in the net assets of unlisted associates Interests in Associates | Item | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | | :--- | :--- | :--- | | Share of net assets of listed associates | 16,417 | 16,676 | | Share of net assets of unlisted associates | 9,362 | 8,807 | | Loans to unlisted associates | 835 | 956 | | Amounts due from associates | 11 | 11 | | **Total** | **26,625** | **26,450** | [12. Other Receivables](index=23&type=section&id=12.%20Other%20Receivables) As of June 30, 2025, the group's total other receivables decreased to HKD 672 million, mainly due to a reduction in financial derivative receivables Other Receivables | Item | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | | :--- | :--- | :--- | | Accrued interest and other receivables | 98 | 30 | | Financial derivatives | 571 | 722 | | Deposits and prepayments | 3 | 3 | | **Total** | **672** | **755** | - Receivables are on credit terms, with payments generally due within one month of invoice date[55](index=55&type=chunk) [13. Bank Balances and Cash and Other Cash Flow Information](index=24&type=section&id=13.%20Bank%20Balances%20and%20Cash%20and%20Other%20Cash%20Flow%20Information) As of June 30, 2025, the group's total bank balances and cash significantly decreased to HKD 1.561 billion, with reduced cash used in operations and increased total funds from operations Bank Balances and Cash | Item | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | | :--- | :--- | :--- | | Deposits with banks and other financial institutions repayable on demand or within three months from date of deposit | 1,241 | 2,712 | | Bank balances and cash | 318 | 21 | | **Cash and cash equivalents in the consolidated cash flow statement** | **1,559** | **2,733** | | Deposits with banks and other financial institutions repayable after three months from date of deposit | 2 | – | | **Bank balances and cash in the consolidated statement of financial position** | **1,561** | **2,733** | Cash Flow Information | Item | 2025 (HKD million) | 2024 (HKD million) | | :--- | :--- | :--- | | Cash used in operations | (21) | (69) | | Net cash from operating activities | 115 | 179 | | Total funds from operations | 2,478 | 2,284 | [14. Other Payables](index=25&type=section&id=14.%20Other%20Payables) As of June 30, 2025, the group's total other payables decreased to HKD 3.623 billion, with all amounts expected to be settled within one year Other Payables | Item | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | | :--- | :--- | :--- | | Payables measured at amortised cost | 3,556 | 3,967 | | Lease liabilities | 3 | 3 | | Financial derivatives | 64 | – | | **Total** | **3,623** | **3,970** | - All other payables are expected to be settled within one year[59](index=59&type=chunk) [15. Bank Loans and Other Interest-Bearing Borrowings](index=25&type=section&id=15.%20Bank%20Loans%20and%20Other%20Interest-Bearing%20Borrowings) As of June 30, 2025, the group's total bank loans and other interest-bearing borrowings amounted to HKD 3.768 billion, all reclassified as current, compared to being entirely non-current on December 31, 2024 Bank Loans and Other Interest-Bearing Borrowings | Item | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | | :--- | :--- | :--- | | Bank loans and other interest-bearing borrowings | 3,768 | 2,505 | | Current portion | (3,768) | – | | Non-current portion | – | 2,505 | - All bank loans and other interest-bearing borrowings were reclassified as current liabilities as of June 30, 2025[60](index=60&type=chunk) [16. Financial Derivatives](index=26&type=section&id=16.%20Financial%20Derivatives) As of June 30, 2025, the group's financial derivative assets for hedging totaled HKD 1.421 billion, and liabilities totaled HKD 350 million, primarily comprising cross-currency swap contracts and forward foreign exchange contracts Financial Derivatives Assets and Liabilities | Item | June 30, 2025 Assets (HKD million) | June 30, 2025 Liabilities (HKD million) | December 31, 2024 Assets (HKD million) | December 31, 2024 Liabilities (HKD million) | | :--- | :--- | :--- | :--- | :--- | | Interest rate swap contracts | – | – | 5 | – | | Cross-currency swap contracts | 735 | – | 1,148 | – | | Forward foreign exchange contracts | 686 | (350) | 1,619 | (31) | | **Total** | **1,421** | **(350)** | **2,772** | **(31)** | - The current portion of financial derivative assets was **HKD 571 million**, and liabilities were **HKD 64 million**; the non-current portion of assets was **HKD 850 million**, and liabilities were **HKD 286 million**[61](index=61&type=chunk) [17. Share Capital](index=26&type=section&id=17.%20Share%20Capital) As of June 30, 2025, the group's issued and fully paid share capital was HKD 6.610 billion, consisting of 2,131,105,154 voting ordinary shares, with no changes during the period Issued and Fully Paid Share Capital | Item | June 30, 2025 (Number of shares) | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | | :--- | :--- | :--- | :--- | | Issued and fully paid share capital: voting ordinary shares | 2,131,105,154 | 6,610 | 6,610 | - There were no changes in the company's share capital during the period[62](index=62&type=chunk) [18. Fair Value Measurement](index=27&type=section&id=18.%20Fair%20Value%20Measurement) The group's fair value measurements are categorized into Level 2 (forward foreign exchange contracts, interest rate swap contracts, and cross-currency swap contracts) and Level 3 (unlisted equity securities and other investments), with changes in cost of capital and growth rates impacting profit and retained earnings for unlisted equity securities Fair Value Measurement of Financial Instruments | Item | June 30, 2025 Level 2 (HKD million) | June 30, 2025 Level 3 (HKD million) | June 30, 2025 Total (HKD million) | | :--- | :--- | :--- | :--- | | **Financial assets** | | | | | Other non-current financial assets | – | 1,100 | 1,100 | | Financial derivatives: cross-currency swap contracts | 735 | – | 735 | | Financial derivatives: forward foreign exchange contracts | 686 | – | 686 | | **Total assets** | **1,421** | **1,100** | **2,521** | | **Financial liabilities** | | | | | Financial derivatives: forward foreign exchange contracts | (350) | – | (350) | - The fair value of unlisted equity securities is determined using the dividend discount model, with key unobservable inputs including a cost of capital of **13.65%** and a growth rate of **2.5%**[65](index=65&type=chunk) - A **0.5%** increase/decrease in the cost of capital would result in a decrease/increase of approximately **HKD 13 million** / approximately **HKD 14 million** in the Group's profit and retained earnings for the period[65](index=65&type=chunk) - The carrying amounts of financial assets and liabilities not measured at fair value (such as amounts due from joint ventures and associates, other receivables, other payables, and external borrowings) do not differ significantly from their fair values[66](index=66&type=chunk) [19. Interim Dividend](index=28&type=section&id=19.%20Interim%20Dividend) The Board declared an interim dividend of HKD 0.78 per ordinary share, totaling HKD 1.662 billion, consistent with the prior year Interim Dividend Declaration | Item | 2025 (HKD million) | 2024 (HKD million) | | :--- | :--- | :--- | | Interim dividend of HKD 0.78 per ordinary share | 1,662 | 1,662 | [20. Capital Commitments](index=29&type=section&id=20.%20Capital%20Commitments) As of June 30, 2025, the group had zero contracted capital expenditure for property, plant and equipment, and HKD 1 million in authorized but not contracted capital expenditure Capital Commitments | Item | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | | :--- | :--- | :--- | | Contracted: capital expenditure for property, plant and equipment | – | 1 | | Authorised but not contracted: capital expenditure for property, plant and equipment | 1 | 1 | [21. Significant Related Party Transactions](index=29&type=section&id=21.%20Significant%20Related%20Party%20Transactions) The group has significant related party transactions with joint ventures and associates, primarily involving interest income from loans and service fees, totaling HKD 303 million from joint ventures and HKD 49 million from associates in interest income, plus HKD 25 million in service fees for the six months ended June 30, 2025 Related Party Transactions | Item | 2025 (HKD million) | 2024 (HKD million) | | :--- | :--- | :--- | | Interest income from loans to joint ventures | 303 | 384 | | Interest income from loans to associates | 49 | 70 | | Service fees for support services provided by associates | 25 | 22 | - Total outstanding loans to joint ventures are detailed in Note 10, and total outstanding loans to associates are detailed in Note 11[70](index=70&type=chunk)[71](index=71&type=chunk) [Corporate Governance](index=30&type=section&id=Corporate%20Governance) This section details the company's commitment to high corporate governance standards, including board structure, committee functions, risk management, and shareholder communication [Corporate Governance Practices](index=30&type=section&id=Corporate%20Governance%20Practices) The company is committed to maintaining high corporate governance standards, complying with the Corporate Governance Code in Appendix C1 of the Listing Rules, and has established policies for inside information and securities dealing to ensure openness, integrity, and accountability - The company complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules for the six months ended June 30, 2025[72](index=72&type=chunk) - The Audit Committee reviewed procedures for handling potential misconduct reports related to financial reporting, internal controls, or other matters[72](index=72&type=chunk) - The company has established policies on inside information and securities dealing for all Group employees to comply with[72](index=72&type=chunk) [Board of Directors](index=30&type=section&id=Board%20of%20Directors) The Board of Directors, comprising 12 members including 4 executive, 3 non-executive, and 5 independent non-executive directors, is responsible for the group's overall management and operations, with separate roles for Chairman and CEO to ensure effective functioning and accountability - The Board of Directors comprises **12** directors, including **4** executive, **3** non-executive, and **5** independent non-executive directors, meeting the Listing Rules' requirement for independent non-executive directors[73](index=73&type=chunk) - The Chairman leads and oversees the effective functioning of the Board, while the Chief Executive Officer manages the Group's business and overall operations[74](index=74&type=chunk) - The Company Secretary supports the Board, ensuring good information flow, compliance with policies and procedures, and adherence to relevant laws and regulations by the Group[75](index=75&type=chunk) [Directors' Securities Transactions](index=31&type=section&id=Directors'%20Securities%20Transactions) The Board adopted the Model Code in Appendix C3 of the Listing Rules for directors' securities transactions, and all directors confirmed compliance during the review period - The Board adopted the Model Code set out in Appendix C3 of the Listing Rules as the standard for directors' securities transactions[76](index=76&type=chunk) - All directors, following specific enquiry, confirmed compliance with the Model Code for the six months ended June 30, 2025[76](index=76&type=chunk) [Changes in Directors' Information](index=32&type=section&id=Changes%20in%20Directors'%20Information) Since the publication of the 2024 Annual Report, Mr. Yip Yuk-kwong has retired as a member of the Science and Technology Council of the Macao SAR, with no other disclosable changes in directors' information - Mr. Yip Yuk-kwong retired as a member of the Science and Technology Council of the Macao SAR[77](index=77&type=chunk) [Audit Committee](index=32&type=section&id=Audit%20Committee) The Audit Committee, composed of three independent non-executive directors with Mr. Yip Yuk-kwong as Chairman, oversees financial reporting, external auditor relations, corporate governance, and risk management, having reviewed the interim financial statements and revised its terms of reference in May 2025 - The Audit Committee comprises **3** independent non-executive directors, with Mr. Yip Yuk-kwong as Chairman[78](index=78&type=chunk) - Its primary responsibilities include reviewing and overseeing the Group's financial reporting, reviewing financial information, considering external auditor matters, reviewing corporate governance functions, and risk management and internal controls[78](index=78&type=chunk) - The Audit Committee reviewed the Group's unaudited consolidated financial statements for the six months ended June 30, 2025[79](index=79&type=chunk) - The Audit Committee's terms of reference were amended on May 21, 2025, to comply with the revisions and new requirements of the Corporate Governance Code effective July 1, 2025[80](index=80&type=chunk) [Nomination Committee](index=33&type=section&id=Nomination%20Committee) The Nomination Committee, consisting of four members, mostly independent non-executive directors with Mr. Yip Yuk-kwong as Chairman, reviews board structure, assists in director selection and nomination, assesses independent non-executive directors' independence, and advises on appointments and succession planning, with its terms of reference revised on May 21, 2025 - The Nomination Committee comprises **4** members, mostly independent non-executive directors, with Mr. Yip Yuk-kwong as Chairman[81](index=81&type=chunk) - Its primary responsibilities include reviewing the Board's structure, size, and composition, assisting in the selection and nomination of directors, assessing the independence of independent non-executive directors, and making recommendations on director appointments, re-appointments, and succession planning[82](index=82&type=chunk) - The Nomination Committee's terms of reference were amended on May 21, 2025, to comply with the revisions and new requirements of the Corporate Governance Code effective July 1, 2025[82](index=82&type=chunk) [Remuneration Committee](index=33&type=section&id=Remuneration%20Committee) The Remuneration Committee, composed of three members, mostly independent non-executive directors with Ms. Ko Po-wah as Chairman, reports directly to the Board and is responsible for reviewing and determining the remuneration policies and packages for directors and management - The Remuneration Committee comprises **3** members, mostly independent non-executive directors, with Ms. Ko Po-wah as Chairman[83](index=83&type=chunk) - Its primary responsibilities include reviewing and considering the remuneration policies for the company's directors and management team, and determining their individual remuneration packages[84](index=84&type=chunk) [Sustainability Committee](index=34&type=section&id=Sustainability%20Committee) The Sustainability Committee, composed of three members with Mr. Tso-chung Choi as Chairman, oversees the development and implementation of the group's sustainability initiatives, reviews related policies and practices, and assesses sustainability and risk matters - The Sustainability Committee comprises **3** members, with Mr. Tso-chung Choi as Chairman[85](index=85&type=chunk) - Its primary responsibilities include overseeing the management of the development and implementation of the Group's sustainability initiatives and advising the Board, reviewing related policies and practices, and assessing matters related to the Group's sustainability and risks[85](index=85&type=chunk) [Risk Management and Internal Control](index=34&type=section&id=Risk%20Management%20and%20Internal%20Control) The Board is responsible for assessing and determining risk appetite and monitoring risk management and internal control systems, with the Audit Committee assisting in reviewing system effectiveness and internal audit providing independent assurance, concluding the systems were effective and adequate for the six months ended June 30, 2025 - The Board is solely responsible for assessing and determining the nature and extent of risks it is willing to undertake to achieve strategic corporate objectives, and for monitoring risk management and internal control systems[86](index=86&type=chunk) - The Group shares internal audit functions with its associate, HK Electric Investments Limited, with internal audit using a risk assessment approach to formulate its annual audit plan[87](index=87&type=chunk) - The Board, through the Audit Committee, reviewed the effectiveness of the Group's risk management and internal control systems for the six months ended June 30, 2025, and considered them effective and adequate[87](index=87&type=chunk) [Communication with Shareholders](index=35&type=section&id=Communication%20with%20Shareholders) The company has a shareholder communication policy to facilitate effective engagement with shareholders and investors through various channels, including general meetings, financial reports, press releases, and investor conferences, with information and communication preferences accessible via the company website or share registrar - The company has established a shareholder communication policy to create multiple channels for effective communication with shareholders and investors[88](index=88&type=chunk) - Communication channels include annual general meetings, financial results, annual and interim reports, sustainability reports, press releases, and meetings with investors and analysts[88](index=88&type=chunk) - Shareholders can obtain information or change the language version of printed company communications via the company website or share registrar[89](index=89&type=chunk) [Directors' Interests and Short Positions in Shares, Underlying Shares and Debentures](index=36&type=section&id=Directors'%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures) As of June 30, 2025, certain directors held long positions in the company's shares and HK Electric Investments share stapled units, with Mr. Leung Kwong-shing holding 0.01% of the company's shares and Mr. Li Tzar-kuoi, Victor holding 0.08% of HK Electric Investments share stapled units through controlled corporations and as a trust beneficiary Directors' Long Positions in Company Shares | Name of Director | Capacity | Nature of Interest | Number of Shares Held | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | :--- | | Leung Kwong-shing | Beneficial Owner | Personal Interest | 180,000 | 0.01% | | Tso-chung Choi | Beneficial Owner | Personal Interest | 24,022 | ≃0% | | Cheng Cho-ying | Beneficial Owner | Personal Interest | 17,000 | ≃0% | Directors' Long Positions in HK Electric Investments Share Stapled Units | Name of Director | Capacity | Nature of Interest | Number of Share Stapled Units Held | Approximate Percentage of Issued Share Stapled Units | | :--- | :--- | :--- | :--- | :--- | | Li Tzar-kuoi, Victor | Interest in Controlled Corporation | Corporate Interest | 5,170,000 | 0.08% | | Li Tzar-kuoi, Victor | Beneficiary of a Trust | Other Interest | 2,700,000 | 0.08% | | Tso-chung Choi | Beneficial Owner | Personal Interest | 880 | ≃0% | - Mr. Li Tzar-kuoi, Victor is deemed to be interested in the share stapled units of HK Electric Investments due to his interests in the Li Ka Shing Foundation and related trusts[92](index=92&type=chunk)[93](index=93&type=chunk) [Shareholders' Interests and Short Positions](index=38&type=section&id=Shareholders'%20Interests%20and%20Short%20Positions) As of June 30, 2025, major shareholders held long positions in the company's shares, with CK Hutchison Holdings Limited and its associated companies deemed to hold approximately 36.01% of the company's shares through a multi-layered shareholding structure Major Shareholders' Long Positions in Company Shares | Name | Capacity | Number of Shares Held | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Venniton Development Inc. | Beneficial Owner | 153,797,511 | 7.22% | | Interman Development Inc. | Beneficial Owner | 186,736,842 | 8.76% | | Univest Equity S.A. | Beneficial Owner | 279,011,102 | 13.09% | | Monitor Equities S.A. | Beneficial Owner and Interest in Controlled Corporation | 287,211,674 | 13.48% | | Hyford Limited | Interest in Controlled Corporation | 767,499,612 | 36.01% | | CK Infrastructure Holdings Limited | Interest in Controlled Corporation | 767,499,612 | 36.01% | | Hutchison Infrastructure Holdings Limited | Interest in Controlled Corporation | 767,499,612 | 36.01% | | CK Hutchison Global Investments Limited | Interest in Controlled Corporation | 767,499,612 | 36.01% | | CK Hutchison Holdings Limited | Interest in Controlled Corporation | 767,499,612 | 36.01% | - CK Hutchison Holdings Limited is deemed to be interested in approximately **36.01%** of the company's shares through its subsidiaries and shareholding in CK Infrastructure Holdings Limited[97](index=97&type=chunk) [Other Information](index=40&type=section&id=Other%20Information) This section covers the interim dividend declaration, share repurchase activities, and disclosures required by Listing Rule 13.22 [Interim Dividend](index=40&type=section&id=Interim%20Dividend) The Board declared an interim dividend of HKD 0.78 per share for 2025, payable on September 23, 2025, to shareholders registered on September 11, 2025 - The interim dividend for 2025 is **HKD 0.78** per share[98](index=98&type=chunk) - The dividend will be paid on September 23, 2025, to shareholders registered in the company's register of members on September 11, 2025[98](index=98&type=chunk) [Purchase, Sale or Redemption of the Company's Shares](index=40&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Shares) For the six months ended June 30, 2025, neither the company nor its subsidiaries repurchased, sold, or redeemed any listed securities, and no treasury shares were held - For the six months ended June 30, 2025, neither the company nor its subsidiaries repurchased, sold, or redeemed any listed securities[99](index=99&type=chunk) - As of June 30, 2025, neither the company nor its subsidiaries held any treasury shares[99](index=99&type=chunk) [Information Required to be Disclosed Pursuant to Rule 13.22 of the Listing Rules](index=40&type=section&id=Information%20Required%20to%20be%20Disclosed%20Pursuant%20to%20Rule%2013.22%20of%20the%20Listing%20Rules) Pursuant to Listing Rule 13.22, the group's aggregate attributable interests in certain affiliated companies totaled HKD 57.263 billion, with these affiliated companies having a net asset value of HKD 146.544 billion Consolidated Statement of Financial Position of these Affiliated Companies (as at June 30, 2025) | Item | HKD million | | :--- | :--- | | Non-current assets | 346,648 | | Current assets | 104,791 | | Current liabilities | (46,560) | | Non-current liabilities | (258,335) | | Net asset value | 146,544 | | Share capital | 24,831 | | Reserves | 121,713 | | Capital and reserves | 146,544 | - As of June 30, 2025, the Group's aggregate attributable interests in these affiliated companies totaled **HKD 57.263 billion**[100](index=100&type=chunk)

[Financial Summary](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) [Overview of Financial Performance](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E8%A1%A8%E7%8F%BE%E6%A6%82%E8%A6%BD) The group's H1 2025 unaudited consolidated revenue decreased by 8.2% to **RMB 750.1 million**, with profit and attributable profit significantly down, but an interim dividend of **5.00 HK cents** per share was declared Key Financial Indicators for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Consolidated Revenue | 750.1 | 817.0 | -8.2% | | Profit for the Period | 9.2 | 15.9 | -42.0% | | Profit Attributable to Owners of the Company | 11.8 | 21.6 | -45.2% | | EBITDA | 79.2 | 97.4 | -18.7% | | Interim Dividend (HK cents per share) | 5.00 | N/A | N/A | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) [Key Data from Statement of Profit or Loss](index=2&type=section&id=%E6%90%8D%E7%9B%8A%E8%A1%A8%E4%B8%BB%E8%A6%81%E6%95%B8%E6%93%9A) For H1 2025, the group's revenue was **RMB 750,100 thousand**, gross profit **RMB 205,642 thousand**, profit for the period **RMB 9,218 thousand**, and profit attributable to owners **RMB 11,816 thousand**, with basic EPS at **RMB 2.85 cents** Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 750,100 | 817,001 | | Cost of Sales | (544,458) | (602,188) | | Gross Profit | 205,642 | 214,813 | | Other Income | 24,808 | 26,526 | | Selling and Distribution Expenses | (111,065) | (99,234) | | Administrative Expenses | (53,276) | (53,980) | | Profit Before Tax | 16,666 | 26,140 | | Income Tax Expense | (7,448) | (10,260) | | Profit for the Period | 9,218 | 15,880 | | Profit Attributable to Owners of the Company | 11,816 | 21,564 | | Basic Earnings Per Share (RMB cents) | 2.85 | 5.20 | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) [Assets, Liabilities, and Equity Position](index=3&type=section&id=%E8%B3%87%E7%94%A2%E3%80%81%E8%B2%A0%E5%82%B5%E5%8F%8A%E6%AC%8A%E7%9B%8A%E7%8B%80%E6%B3%81) As of June 30, 2025, total assets were **RMB 2,136,651 thousand**, non-current assets **RMB 1,365,813 thousand**, net current liabilities **RMB (121,156) thousand**, and total equity **RMB 983,369 thousand** Condensed Consolidated Statement of Financial Position (As at June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current Assets | 1,365,813 | 1,389,956 | | Current Assets | 770,838 | 878,048 | | Current Liabilities | (891,994) | (1,053,557) | | Net Current Liabilities | (121,156) | (175,509) | | Non-current Liabilities | (261,288) | (200,525) | | Net Assets | 983,369 | 1,013,922 | | Equity Attributable to Owners of the Company | 957,132 | 983,617 | | Total Equity | 983,369 | 1,013,922 | [Notes to the Condensed Consolidated Financial Statements](index=5&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) [1. Basis of Preparation](index=5&type=section&id=1.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) Condensed consolidated financial statements are prepared under IAS 34; despite current liabilities exceeding current assets by **RMB 121,156,000**, the Board expects sufficient resources for continued operation - As of June 30, 2025, the group's current liabilities exceeded current assets by approximately **RMB 121,156,000**[9](index=9&type=chunk) - The Board expects the group to have sufficient resources for continued operation, primarily relying on: - Available unutilized bank facilities of approximately **RMB 98,000,000** - Sufficient cash inflows from operating activities - Expected refinancing of short-term revolving bank borrowings of **RMB 392,536,000** upon maturity[9](index=9&type=chunk)[10](index=10&type=chunk) [2. Accounting Policies](index=6&type=section&id=2.%20%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) Condensed consolidated financial statements are prepared on a historical cost basis, applying IFRS (Revised) with no material impact on current or prior period financial position or performance - The application of International Financial Reporting Standards (Revised), including IAS 21 (Revised), had no material impact on the group's financial position, performance, or disclosures for the current and prior periods[12](index=12&type=chunk) [3. Revenue from Contracts with Customers](index=6&type=section&id=3.%20%E5%AE%A2%E6%88%B6%E5%90%88%E7%B4%84%E6%94%B6%E7%9B%8A) Group revenue primarily from food sales (recognized at a point in time) and hotel services (recognized over time), with revenue analysis forming part of management's segment information Revenue Recognition Timing (For the six months ended June 30) | Revenue Recognition Timing | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | At a point in time | 739,924 | 807,942 | | Over time | 10,176 | 9,059 | | Total | 750,100 | 817,001 | [4. Operating Segments](index=7&type=section&id=4.%20%E7%B6%93%E7%87%9F%E5%88%86%E9%83%A8) The group's main operating segments are biscuit, pasta, and flour products; segment performance is assessed by gross profit, with biscuit and flour revenue decreasing while pasta revenue grew - Key operating decision-makers review operating results and financial information by product or service category, assessing segment performance based on segment profit or loss (i.e., gross profit of each operating segment)[15](index=15&type=chunk) [Segment Revenue and Results](index=8&type=section&id=%E5%88%86%E9%83%A8%E6%94%B6%E7%9B%8A%E5%8F%8A%E6%A5%AD%E7%B8%BE) In H1 2025, external sales were **RMB 553,052 thousand** for biscuit products, **RMB 86,985 thousand** for pasta, and **RMB 77,629 thousand** for flour products, with corresponding segment results of **RMB 174,619 thousand**, **RMB 18,783 thousand**, and **RMB 11,946 thousand** Segment Revenue and Results (For the six months ended June 30) | Segment | 2025 Revenue (RMB thousand) | 2025 Results (RMB thousand) | 2024 Revenue (RMB thousand) | 2024 Results (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Biscuit Products | 553,052 | 174,619 | 621,581 | 188,872 | | Pasta Products | 86,985 | 18,783 | 68,089 | 14,858 | | Flour Products | 77,629 | 11,946 | 92,178 | 8,079 | | Others | 32,434 | 294 | 35,153 | 3,004 | | Total | 750,100 | 205,642 | 817,001 | 214,813 | [Revenue by Product Category](index=10&type=section&id=%E6%8C%89%E7%94%A2%E5%93%81%E5%8A%83%E5%88%86%E7%9A%84%E6%94%B6%E7%9B%8A) In H1 2025, sweet single biscuit revenue was **RMB 211,557 thousand**, sandwich biscuits **RMB 197,895 thousand**; pasta revenue grew to **RMB 86,985 thousand**, while flour revenue decreased to **RMB 77,629 thousand** Revenue by Product Category (For the six months ended June 30) | Product Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Sweet Single Biscuits | 211,557 | 245,758 | | Salty Single Biscuits | 15,260 | 22,702 | | Sandwich Biscuits | 197,895 | 191,769 | | Wafer Biscuits | 54,863 | 69,501 | | Coarse Grain Biscuits | 16,037 | 26,219 | | Other Biscuits | 57,440 | 65,632 | | Total Biscuits | 553,052 | 621,581 | | Pasta | 86,985 | 68,089 | | Flour | 77,629 | 92,178 | | Other Products | 22,258 | 26,094 | | Hotel Services | 10,176 | 9,059 | | Total | 750,100 | 817,001 | [5. Other Income](index=11&type=section&id=5.%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) H1 2025 other income was approximately **RMB 24,808 thousand**, a 6.5% year-on-year decrease, mainly due to reduced interest income from loans receivable and government grants Other Income Details (For the six months ended June 30) | Income Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Government Grants | 4,411 | 6,528 | | Bank Deposit Interest Income | 870 | 1,621 | | Interest Income from Loans Receivable | 3,930 | 4,890 | | Sales of Scraps and Packaging Materials | 11,040 | 10,581 | | Rental Income | 3,280 | 2,294 | | Other Non-operating Income | 1,160 | 176 | | Total | 24,808 | 26,526 | [6. Other Expenses](index=11&type=section&id=6.%20%E5%85%B6%E4%BB%96%E9%96%8B%E6%94%AF) H1 2025 other expenses totaled approximately **RMB 39,134 thousand**, largely flat year-on-year, with R&D expenses at **RMB 23,860 thousand** Other Expenses Details (For the six months ended June 30) | Expense Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Research and Development Expenses | 23,860 | 25,939 | | Donation Expenses | 4,460 | 4,578 | | Cost of Scraps and Packaging Materials Sold | 8,118 | 5,953 | | Building Lease Expenses | 1,497 | 1,472 | | Other Non-operating Expenses | 1,199 | 1,165 | | Total | 39,134 | 39,107 | [7. Other Gains and Losses](index=12&type=section&id=7.%20%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E5%8F%8A%E虧%E6%90%8D) H1 2025 net other gains and losses were **RMB 699 thousand**, primarily comprising fair value gains on financial assets at fair value through profit or loss of **RMB 1,326 thousand** and loss on disposal of property, plant and equipment of **RMB 624 thousand** Other Gains and Losses (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Exchange Loss | (16) | (3) | | Loss on Disposal of Property, Plant and Equipment | (624) | (1,542) | | Fair Value Gain on Financial Assets at Fair Value Through Profit or Loss | 1,326 | 3,843 | | Total | 699 | 2,285 | [8. Income Tax Expense](index=12&type=section&id=8.%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) H1 2025 income tax expense decreased to **RMB 7,448 thousand** from **RMB 10,260 thousand** in the prior period, mainly composed of current and deferred tax Income Tax Expense (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | PRC Enterprise Income Tax — Current Tax | 10,604 | 14,159 | | Deferred Tax | (3,156) | (3,899) | | Total | 7,448 | 10,260 | [9. Profit for the Period](index=13&type=section&id=9.%20%E6%9C%9F%E5%85%A7%E6%BA%A2%E5%88%A9) Profit for the period was achieved after deducting various expenses, including total employee benefit expenses of **RMB 123,180 thousand** and total depreciation and amortisation of **RMB 51,179 thousand** Profit for the Period Deductions (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Directors' and Chief Executive's Emoluments | 2,062 | 2,706 | | Other Employee Benefit Expenses | 121,118 | 129,806 | | Total Employee Benefit Expenses | 123,180 | 132,512 | | Depreciation of Property, Plant and Equipment | 38,182 | 39,550 | | Depreciation of Right-of-Use Assets | 5,729 | 5,888 | | Depreciation of Investment Properties | 529 | 955 | | Amortisation of Intangible Assets | 6,739 | 6,584 | | Total Depreciation and Amortisation | 51,179 | 52,977 | | Cost of Inventories Recognized as an Expense | 539,208 | 596,785 | [10. Reclassification of Discontinued Operations Held for Sale](index=13&type=section&id=10.%20%E6%8C%81%E4%BD%9C%E5%87%BA%E5%94%AE%E7%9A%84%E5%B7%B2%E7%B5%82%E6%AD%A2%E7%B6%93%E7%87%9F%E6%A5%AD%E5%8B%99%E4%B9%8B%E9%87%8D%E5%88%97) The soy milk business was reclassified from discontinued operations held for sale to continuing operations as the sale transaction is not expected to complete within 12 months due to a third-party payment default - The soy milk business (Guangdong Quancheng Great Health Beverage Co., Ltd.) was reclassified from discontinued operations held for sale to continuing operations due to the sale transaction not being completed within 12 months[30](index=30&type=chunk)[31](index=31&type=chunk) [11. Assets and Liabilities Held for Sale](index=14&type=section&id=11.%20%E6%8C%81%E4%BD%9C%E5%87%BA%E5%94%AE%E7%9A%84%E8%B3%87%E7%94%A2%E5%8F%8A%E8%B2%A0%E5%82%B5) The group classified equity interest in Jiangsu Casualife Food Co., Ltd. and a land parcel in Huaibei, Anhui, as assets and liabilities held for sale, with no impairment loss recognized as net proceeds are expected to exceed net book value - The group agreed to dispose of 100% equity interest in Jiangsu Casualife Food Co., Ltd. for a total cash consideration of **RMB 48,300,000**[32](index=32&type=chunk) - The group decided to transfer a land parcel located in Huaibei City, Anhui Province, China[32](index=32&type=chunk) Assets and Liabilities Classified as Held for Sale (As at June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Assets Classified as Held for Sale | 25,803 | 21,750 | | Total Liabilities Associated with Assets Classified as Held for Sale | (14,931) | (463) | [12. Dividends](index=15&type=section&id=12.%20%E8%82%A1%E6%81%AF) The Board resolved to declare an interim dividend of **5 HK cents** per ordinary share for the six months ended June 30, 2025, with no interim dividend declared in the prior period - The Board has resolved to declare an interim dividend of **5.00 HK cents** per ordinary share for the reporting period (H1 2024: Nil)[34](index=34&type=chunk) [13. Earnings Per Share](index=15&type=section&id=13.%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) Basic earnings per share attributable to owners is calculated based on profit for the period and weighted average ordinary shares, with no diluted EPS presented due to the absence of potential ordinary shares Basic Earnings Per Share Calculation (For the six months ended June 30) | Item | 2025 (RMB thousand/thousand shares) | 2024 (RMB thousand/thousand shares) | | :--- | :--- | :--- | | Profit Attributable to Owners of the Company for Basic EPS Calculation | 11,816 | 21,564 | | Weighted Average Number of Ordinary Shares for Basic EPS Calculation | 415,000 | 415,000 | | Basic Earnings Per Share (RMB cents) | 2.85 | 5.20 | [14. Property, Plant and Equipment, Right-of-Use Assets, Investment Properties and Intangible Assets](index=15&type=section&id=14.%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%E3%80%81%E4%BD%BF%E7%94%A8%E6%AC%8A%E8%B3%87%E7%94%A2%E3%80%81%E6%8A%95%E8%B3%87%E7%89%A9%E6%A5%AD%E5%8F%8A%E7%84%A1%E5%BD%A2%E8%B3%87%E7%94%A2) In H1 2025, the group added **RMB 22,089 thousand** in property, plant and equipment to enhance operations and recorded a gain of **RMB 624 thousand** from disposals, with no additions to investment properties, right-of-use assets, or intangible assets - In H1 2025, the group added property, plant and equipment of approximately **RMB 22,089 thousand**, a decrease from **RMB 45,090 thousand** in the prior period[37](index=37&type=chunk) - Disposal of certain plant and equipment generated a gain of **RMB 624 thousand** (H1 2024: loss of RMB 1,542 thousand)[39](index=39&type=chunk) - No additions to investment properties, right-of-use assets, or intangible assets were made during the period[39](index=39&type=chunk) [15. Financial Assets at Fair Value Through Profit or Loss](index=16&type=section&id=15.%20%E9%80%8F%E9%81%8E%E6%90%8D%E7%9B%8A%E6%8C%89%E5%85%AC%E5%B9%B3%E5%80%BC%E5%88%97%E8%B3%B9%E7%9A%84%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2) As of June 30, 2025, total financial assets at fair value through profit or loss amounted to **RMB 156,132 thousand**, primarily comprising unlisted equity investments and unlisted equity investment funds in PRC Financial Assets at Fair Value Through Profit or Loss (As at June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Unlisted Equity Investments in PRC | 27,024 | 26,000 | | Unlisted Equity Investment Funds in PRC | 129,108 | 128,806 | | Total | 156,132 | 154,806 | [16. Trade and Bills Receivables and Other Receivables and Deposits](index=17&type=section&id=16.%20%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E3%80%81%E6%87%89%E6%94%B6%E7%A5%A8%E6%93%9A%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E4%BB%A5%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%8C%89%E9%87%91) As of June 30, 2025, total trade and bills receivables and other receivables were approximately **RMB 193,452 thousand**, a 13.7% increase from December 31, 2024, with net trade and bills receivables at **RMB 30,970 thousand** Trade and Bills Receivables, Other Receivables and Deposits (As at June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Gross Trade and Bills Receivables, Net of ECL Provision | 30,970 | 45,641 | | Prepayments for Purchase of Raw Materials | 60,712 | 17,643 | | Other Recoverable Taxes | 36,526 | 35,368 | | Other Receivables, Net of Provision | 47,286 | 32,120 | | Other Prepayments | 13,745 | 30,687 | | Total (under Current Assets) | 193,452 | 170,168 | [Trade and Bills Receivables](index=17&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%87%89%E6%94%B6%E7%A5%A8%E6%93%9A) As of June 30, 2025, net trade and bills receivables (after ECL provision) totaled **RMB 30,970 thousand**, with **RMB 23,509 thousand** due within two months Aging Analysis of Trade and Bills Receivables (As at June 30) | Aging | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 2 months | 23,509 | 29,020 | | Over 2 months but within 3 months | 2,077 | 9,754 | | Over 3 months but within 6 months | 4,078 | 5,374 | | Over 6 months but within 1 year | 1,277 | 1,276 | | Over 1 year | 29 | 217 | | Total | 30,970 | 45,641 | [17. Impairment Assessment of Financial Assets under Expected Credit Loss Model](index=18&type=section&id=17.%20%E6%A0%B9%E6%93%9A%E9%A0%90%E6%9C%9F%E4%BF%A1%E8%B2%B8%E虧%E6%90%8D%E6%A8%A1%E5%BC%8F%E5%B0%B1%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2%E9%80%B2%E8%A1%8C%E4%B9%8B%E6%B8%9B%E5%80%BC%E8%A9%95%E4%BC%B0) In H1 2025, the group recognized a net impairment loss reversal of **RMB (854) thousand** under the ECL model, mainly due to a **RMB 4,000 thousand** impairment loss reversal for other receivables Impairment Loss (Reversal) Details (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Loans to Non-controlling Shareholders of Subsidiaries | — | 1,579 | | Loans to an Associate | 98 | — | | Loans Receivable | 325 | 1,268 | | Amounts Due from Non-controlling Shareholders of Subsidiaries | 280 | 113 | | Trade Receivables | 2,443 | 3,785 | | Other Receivables | (4,000) | (394) | | Total | (854) | 6,351 | [18. Trade and Bills Payables and Other Payables](index=19&type=section&id=18.%20%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85%E3%80%81%E6%87%89%E4%BB%98%E7%A5%A8%E6%93%9A%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade and bills payables and other payables were **RMB 199,617 thousand**, a significant decrease from **RMB 343,839 thousand** as of December 31, 2024 Trade and Bills Payables, Other Payables (As at June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade and Bills Payables | 75,845 | 191,020 | | Accrued Expenses | 41,976 | 49,497 | | Payables for Transportation Costs | 14,726 | 19,427 | | Accrued Wages and Welfare | 27,554 | 39,354 | | Other Taxes Payable | 7,326 | 12,834 | | Other Payables | 32,190 | 31,707 | | Total | 199,617 | 343,839 | [Trade and Bills Payables](index=19&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%87%89%E4%BB%98%E7%A5%A8%E6%93%9A) As of June 30, 2025, total trade and bills payables were **RMB 75,845 thousand**, with **RMB 72,745 thousand** due within three months Aging Analysis of Trade and Bills Payables (As at June 30) | Aging | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 months | 72,745 | 182,381 | | Over 3 months but within 6 months | 1,757 | 6,697 | | Over 6 months but within 1 year | 284 | 468 | | Over 1 year | 1,059 | 1,474 | | Total | 75,845 | 191,020 | [19. Bank Borrowings](index=19&type=section&id=19.%20%E9%8A%80%E8%A1%8C%E5%80%9F%E6%AC%BE) In H1 2025, the group obtained **RMB 503,020 thousand** in new bank borrowings and repaid **RMB 390,889 thousand**, with total bank borrowings at **RMB 797,200 thousand** as of June 30, 2025, bearing interest at fixed or floating rates - In H1 2025, the group obtained new bank borrowings of **RMB 503,020 thousand** and repaid bank borrowings of **RMB 390,889 thousand**[48](index=48&type=chunk) - As of June 30, 2025, bank borrowings bore interest at fixed annual rates ranging from **1.50% to 3.25%** or floating annual rates ranging from **2.37% to 4.20%**[48](index=48&type=chunk) [Company Performance Review for H1 2025](index=20&type=section&id=%E4%BA%8C%E9%9B%B6%E4%BA%8C%E4%BA%94%E5%B9%B4%E4%B8%8A%E5%8D%8A%E5%B9%B4%E5%85%AC%E5%8F%B8%E6%A5%AD%E7%B8%BE%E5%9B%9E%E9%A1%A7) [Industry Overview](index=20&type=section&id=%E8%A1%8C%E6%A5%AD%E6%A6%82%E8%A6%BD) In H1 2025, China's biscuit and snack industry showed resilient growth amid intense competition, evolving channels, and strong consumer demand for healthy, high-value products, with bulk snack stores and short-video e-commerce reshaping the market - The Mainland China biscuit and snack industry showed resilient growth in H1 2025, but faced intense competition and rapidly evolving channels[49](index=49&type=chunk) - Consumer demand shifted towards health-conscious, high-value-for-money products, seeking functional benefits and clean labels[49](index=49&type=chunk) - Channel transformation and fragmentation, with Douyin solidifying its position as a leading online snack sales channel and bulk snack stores emerging[49](index=49&type=chunk) [Business Review](index=20&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) Casualife Group, with over 69 years of history, reported H1 2025 revenue of **RMB 750.1 million** (down 8.2%), gross profit of **RMB 205.6 million** (down 4.3%), and profit attributable to owners of **RMB 11.8 million** (down 45.2%) - The Casualife biscuit brand, with over 69 years of history, sells products across 31 provinces and 310 prefecture-level cities, and exports to other countries[50](index=50&type=chunk) - The group's product range includes biscuits (sweet and salty single, sandwich, wafer, etc.), pasta (spaghetti, macaroni), flour (wheat flour), and other products (crackers, cookies, candies, bread, mooncakes, etc.)[51](index=51&type=chunk) Core Financial Performance for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 750.1 | 817.0 | -8.2% | | Gross Profit | 205.6 | 214.8 | -4.3% | | Gross Margin | 27.4% | 26.3% | +1.1 percentage points | | Profit Attributable to Owners of the Company | 11.8 | 21.6 | -45.2% | [Our Business Model](index=21&type=section&id=%E6%88%91%E5%80%91%E7%9A%84%E6%A5%AD%E5%8B%99%E6%A8%A1%E5%BC%8F) The group prioritizes innovation through brand, product, and marketing strategies, accelerating R&D, product upgrades, and digital marketing, while strengthening channel advantages and optimizing team structure across various retail formats - The group highly values innovation, striving to strengthen core competitiveness through brand, product, and marketing innovation[53](index=53&type=chunk) - Accelerated new product R&D, product upgrades, and digital marketing, increased online investment, leveraged celebrity endorsements to expand traffic, and optimized product portfolios and conversion rates through big data analytics[53](index=53&type=chunk) - Continuously strengthened channel advantages by optimizing team structure, reorganizing distributors, and refining incentive policies, actively expanding traditional, modern, and new retail channels[53](index=53&type=chunk) [Revenue Changes](index=22&type=section&id=%E6%94%B6%E7%9B%8A%E8%AE%8A%E5%8B%95) H1 2025 group revenue decreased by 8.2% to **RMB 750.1 million**, with biscuit segment revenue down 11.0% due to macroeconomic pressures and competition, while pasta revenue grew 27.8% and flour revenue decreased 15.8% Revenue Changes by Product Category (For the six months ended June 30) | Product Category | 2025 (RMB million) | 2024 (RMB million) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Sweet Single Biscuits | 211.6 | 245.8 | –13.9% | | Salty Single Biscuits | 15.3 | 22.7 | –32.6% | | Sandwich Biscuits | 197.9 | 191.8 | 3.2% | | Wafer Biscuits | 54.9 | 69.5 | –21.0% | | Coarse Grain Biscuits | 16.0 | 26.2 | –38.9% | | Other Biscuits | 57.4 | 65.6 | –12.5% | | Total Biscuits | 553.1 | 621.6 | –11.0% | | Pasta | 87.0 | 68.1 | 27.8% | | Flour | 77.6 | 92.2 | –15.8% | | Others | 22.3 | 26.1 | –14.6% | | Total (excluding hotel business) | 740.0 | 808.0 | –8.4% | - The overall decline in the biscuit segment resulted from a combination of macroeconomic pressures, changing consumer behavior, intense industry competition, persistent inflation, and the growing popularity of alternative snacks[55](index=55&type=chunk) [Gross Profit and Gross Margin](index=23&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) H1 2025 overall gross profit decreased to **RMB 205.6 million**, but gross margin slightly increased by **1.1 percentage points** to **27.4%**, primarily due to lower raw material costs for sugar and flour - The group's overall gross profit decreased by 4.3% from approximately **RMB 214.8 million** to approximately **RMB 205.6 million**[56](index=56&type=chunk) - The group's gross margin slightly increased by **1.1 percentage points** to **27.4%**, primarily due to lower input costs for certain raw materials, especially sugar and flour[56](index=56&type=chunk) - The biscuit segment's gross margin increased by **1.2 percentage points** to **31.6%**, while the pasta business segment's gross margin slightly decreased by **0.2 percentage points** to **21.6%**[56](index=56&type=chunk) [Other Income](index=23&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) H1 2025 other income was approximately **RMB 24.8 million**, a 6.5% year-on-year decrease, mainly due to reduced interest income from loans receivable and government grants - Other income was approximately **RMB 24.8 million**, a 6.5% decrease year-on-year, mainly due to reduced interest received from loans receivable and lower government grants[57](index=57&type=chunk) [Selling and Distribution Expenses](index=23&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E5%88%86%E9%8A%B7%E9%96%8B%E6%94%AF) H1 2025 selling and distribution expenses increased by 11.9% to approximately **RMB 111.1 million** - Selling and distribution expenses were approximately **RMB 111.1 million**, an 11.9% increase year-on-year[58](index=58&type=chunk) [Administrative Expenses](index=23&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) H1 2025 administrative expenses slightly decreased by 1.3% to approximately **RMB 53.3 million** - Administrative expenses were approximately **RMB 53.3 million**, a slight decrease of 1.3% year-on-year[59](index=59&type=chunk) [Inventories](index=23&type=section&id=%E5%AD%98%E8%B2%A8) As of June 30, 2025, inventory balance decreased by approximately **RMB 38.8 million** to **RMB 181.7 million** due to early preparation for Chinese New Year sales, with inventory turnover days increasing by **8 days** to **67 days** - Inventory balance decreased by approximately **RMB 38.8 million** to approximately **RMB 181.7 million**, attributed to early product preparation for Chinese New Year sales[60](index=60&type=chunk) - Inventory turnover days for the reporting period were **67 days**, an increase of **8 days** compared to December 31, 2024[60](index=60&type=chunk) [Trade and Bills Receivables and Other Receivables](index=24&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E3%80%81%E6%87%89%E6%94%B6%E7%A5%A8%E6%93%9A%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, trade and bills receivables and other receivables increased by 13.7% to approximately **RMB 193.5 million**, with turnover days remaining at **44 days** - Trade and bills receivables and other receivables were approximately **RMB 193.5 million**, a 13.7% increase from December 31, 2024[61](index=61&type=chunk) - Trade and bills receivables and other receivables turnover days for the reporting period remained at **44 days**, consistent with December 31, 2024[61](index=61&type=chunk) [Financial and Liquidity Position](index=24&type=section&id=%E8%B2%A1%E5%8B%99%E5%8F%8A%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E7%8B%80%E6%B3%81) As of June 30, 2025, bank balances and cash were **RMB 279.4 million**, total bank borrowings **RMB 797.2 million** (up 16.4%), with both total and net debt-to-equity ratios rising, while net current liabilities improved and current ratio was **0.86** - Bank balances and cash were approximately **RMB 279.4 million**, a decrease from **RMB 379.1 million** as of December 31, 2024[62](index=62&type=chunk) - Total bank borrowings were approximately **RMB 797.2 million**, a 16.4% increase from December 31, 2024[62](index=62&type=chunk) Debt-to-Equity Ratios (As at June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Total Debt-to-Equity Ratio | 81.1% | 67.6% | | Net Debt-to-Equity Ratio | 52.7% | 30.2% | - Net current liabilities improved to approximately **RMB 121.2 million**, from **RMB 175.5 million** as of December 31, 2024[63](index=63&type=chunk) - The current ratio was **0.86**, an improvement from **0.83** as of December 31, 2024[63](index=63&type=chunk) [Outlook](index=25&type=section&id=%E5%B1%95%E6%9C%9B) The group will focus on product upgrades, expanding retail chain coverage, standardizing shelf presence, and launching small-pack products to drive channel expansion, while streamlining operations and enhancing brand quality, cautiously optimistic for satisfactory H2 results - The group will focus on streamlining operations and enhancing brand awareness, while maintaining and improving product quality[65](index=65&type=chunk) - Leveraging operational efficiencies and cost-saving measures to ensure better performance[65](index=65&type=chunk) - Cautiously optimistic that business operations in the second half of the year will achieve satisfactory results[65](index=65&type=chunk) [Other Information](index=25&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) [Human Resources and Employee Remuneration](index=25&type=section&id=%E4%BA%BA%E5%8A%9B%E8%B3%87%E6%BA%90%E5%8F%8A%E5%83%B1%E5%93%A1%E8%96%AA%E9%85%AC) As of June 30, 2025, the group had **2,220 full-time employees**, a decrease from the prior year, with total employee benefit expenses of approximately **RMB 123.2 million** determined by position, performance, experience, and market trends - As of June 30, 2025, the group had **2,220 full-time employees** (June 30, 2024: 2,582 employees), a decrease in headcount[66](index=66&type=chunk) - Total employee benefit expenses for the six months ended June 30, 2025, were approximately **RMB 123.2 million** (H1 2024: approximately RMB 132.5 million)[66](index=66&type=chunk) [Corporate Governance Practices](index=25&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A6%8F) The Board is committed to high corporate governance standards, adopting the Listing Rules' Corporate Governance Code; despite the Chairman and CEO roles being combined, the Board believes this ensures policy continuity and operational stability, balanced by independent non-executive directors - The Company has adopted the principles and applicable code provisions of the Corporate Governance Code set out in Appendix 14 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[67](index=67&type=chunk) - The roles of Chairman and Chief Executive Officer are performed by **Mr. Huang Xianming**, deviating from Code Provision C.2.1[68](index=68&type=chunk) - The Board believes this deviation is beneficial for maintaining policy continuity and operational stability, with four independent non-executive directors providing independent advice and checks and balances[68](index=68&type=chunk) [Directors' Compliance with the Model Code for Securities Transactions](index=26&type=section&id=%E8%91%A3%E4%BA%8B%E9%81%B5%E5%AE%88%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The Company adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all directors confirmed compliance throughout the reporting period - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix 10 to the Listing Rules[69](index=69&type=chunk) - All directors confirmed compliance with the standards of dealing as set out in the Model Code throughout the reporting period[69](index=69&type=chunk) [Audit Committee](index=26&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, comprising three independent non-executive directors, reviewed accounting principles, internal controls, and financial reporting, discussing interim results with no disagreements on accounting treatments - The Audit Committee comprises three independent non-executive directors, responsible for reviewing accounting principles, internal controls, and financial reporting matters[70](index=70&type=chunk) - The Audit Committee has reviewed and discussed the group's interim results for the six months ended June 30, 2025, with no disagreements on the accounting treatments adopted by the Company[70](index=70&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=26&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) During H1 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During H1 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[71](index=71&type=chunk) [Interim Dividend](index=26&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board resolved to declare an interim dividend of **5.00 HK cents** per ordinary share for the reporting period, payable to shareholders on record as of September 16, 2025 - The Board has resolved to declare an interim dividend of **5.00 HK cents** per ordinary share for the reporting period (H1 2024: Nil)[72](index=72&type=chunk) [Closure of Register of Members](index=27&type=section&id=%E6%9A%AB%E5%81%9C%E8%BE%A6%E7%90%86%E8%82%A1%E4%BB%BD%E9%81%8E%E6%88%B6%E7%99%BB%E8%A8%98) To determine eligibility for the 2025 interim dividend, the Company's share register will be closed from **September 15 to September 16, 2025**, with the record date on **September 16, 2025**, and dividend payment expected on **September 26, 2025** - To determine the entitlement to the 2025 interim dividend, the Company's register of members will be closed from **September 15, 2025, to September 16, 2025**[73](index=73&type=chunk) - The record date for determining entitlement to the 2025 interim dividend is **September 16, 2025**[73](index=73&type=chunk) - The payment date for the 2025 interim dividend is expected to be **September 26, 2025**[73](index=73&type=chunk) [Publication of Interim Results](index=27&type=section&id=%E5%88%8A%E7%99%BC%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE) This interim results announcement has been published on the websites of The Stock Exchange of Hong Kong Limited and the Company - This interim results announcement has been published on the website of The Stock Exchange of Hong Kong Limited (www.hkex.com.hk) and the Company's website (http://www.gdjsl.com)[74](index=74&type=chunk)