香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 告 的 內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 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。 RISECOMM GROUP HOLDINGS LIMITED 瑞斯康集團控股有限公司 （於開曼群島註冊成立之有限公司） （股份代號：1679） 截 至2025年6月30日 止 六 個 月 的 中 期 業 績 公 告 財 務 摘 要 – 1 – • 本 期 間 的 營 業 額 約 為 人 民 幣58.6百 萬 元（2024年 同 期：約 人 民 幣41.4 百 萬 元），上 升 約41.4%。 • 相 比2024年 同 期，自 動 抄 表 及 其 他 業 務 分 部 於 本 期 間 的 營 業 額 上 升 約55.2%至 約 人 民 幣28.4百 萬 元。 • 相 比2024年 同 期，智 慧 製 造 及 工 業 自 動 ...

Company Information [Company Overview](index=1&type=section&id=Company%20Overview) Zhongtian Construction (Hunan) Group Co., Ltd. is an investment holding company incorporated in the Cayman Islands, primarily engaged in construction services in China, listed on the HKEX Main Board since March 30, 2023 - The company was incorporated in the Cayman Islands on **March 27, 2020**, primarily providing construction services in China[9](index=9&type=chunk) - The company's shares have been listed on the Main Board of The Stock Exchange of Hong Kong Limited since **March 30, 2023**[9](index=9&type=chunk) Financial Highlights [2025 H1 Performance Overview](index=1&type=section&id=2025%20H1%20Performance%20Overview) In H1 2025, the Group's revenue slightly decreased by 2.8% to RMB 346.6 million, while gross profit margin improved to 11.3%, and loss attributable to owners narrowed to RMB 18.4 million H1 2025 Key Financial Indicators | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 346.6 | 356.5 | -2.8% | | Gross Profit | 39.1 | 38.7 | +1.0% | | Gross Profit Margin | 11.3% | 10.9% | +0.4 percentage points | | Loss Attributable to Owners of the Company | (18.4) | (21.6) | Loss narrowed by 14.8% | | Basic Loss Per Share (RMB cents) | (3.19) | (4.25)* | Loss narrowed by 25.0% | - The Board decided not to declare an interim dividend for the six months ended June 30, 2025[4](index=4&type=chunk) Condensed Consolidated Financial Statements [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) In H1 2025, the Group reported revenue of RMB 346,554 thousand, gross profit of RMB 39,072 thousand, and a total comprehensive loss of RMB 19,533 thousand, with loss attributable to owners at RMB 18,397 thousand Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 346,554 | 356,507 | | Cost of Sales | (307,482) | (317,772) | | Gross Profit | 39,072 | 38,735 | | Loss Before Income Tax | (21,532) | (26,843) | | Income Tax Credit | 1,999 | 4,130 | | Loss and Total Comprehensive Income for the Period | (19,533) | (22,713) | | Loss for the Period Attributable to Owners of the Company | (18,397) | (21,551) | | Basic Loss Per Share (RMB cents) | (3.19) | (4.25)* | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's net current assets were RMB 441,428 thousand, total assets less current liabilities were RMB 480,665 thousand, and net assets were RMB 479,106 thousand Summary of Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current Assets | 39,237 | 36,240 | | Current Assets | 2,302,921 | 2,203,394 | | Current Liabilities | 1,861,493 | 1,738,050 | | Net Current Assets | 441,428 | 465,344 | | Total Assets Less Current Liabilities | 480,665 | 501,584 | | Non-current Liabilities | 1,559 | 3,921 | | Net Assets | 479,106 | 497,663 | | Total Equity | 479,106 | 497,663 | Notes to the Condensed Consolidated Financial Statements [General Information](index=5&type=section&id=General%20Information) The Company is an investment holding company incorporated in the Cayman Islands, primarily engaged in construction services in China, listed on the HKEX Main Board since March 30, 2023 - The company was incorporated in the Cayman Islands on **March 27, 2020**, primarily providing construction services in China[9](index=9&type=chunk) - The company's shares have been listed on the Main Board of The Stock Exchange of Hong Kong Limited since **March 30, 2023**[9](index=9&type=chunk) [Basis of Preparation](index=5&type=section&id=Basis%20of%20Preparation) The unaudited condensed consolidated interim financial information is prepared in accordance with HKAS 34 and Listing Rules, using consistent accounting policies with the 2024 annual report - The financial information is prepared in accordance with **HKAS 34** and the **Listing Rules**[10](index=10&type=chunk) - Accounting policies consistent with the **2024 annual report** are adopted, except for new or revised HKFRSs[10](index=10&type=chunk) [Adoption of HKFRSs](index=6&type=section&id=Adoption%20of%20HKFRSs) The Group adopted new and revised standards effective January 1, 2025, including amendments to HKAS 21, which had no material impact on reported results or financial position - New and revised standards effective **January 1, 2025**, including amendments to HKAS 21, have been adopted[13](index=13&type=chunk) - These amendments have no material impact on the Group's reported results or financial position for current and prior reporting periods[13](index=13&type=chunk) [Segment Information](index=7&type=section&id=Segment%20Information) The Group primarily provides construction services in China, with management reviewing business operations as a single operating segment, and all revenue and non-current assets located in China - Management reviews business operations as a single operating segment, with the main operating entities located in China[14](index=14&type=chunk) - All revenue and non-current assets for H1 2025 and H1 2024 were generated and located in China[14](index=14&type=chunk)[15](index=15&type=chunk) [Operating Segment Information](index=7&type=section&id=Operating%20Segment%20Information) The chief operating decision maker (Executive Directors) reviews business operations as a single segment to allocate resources and assess performance - The chief operating decision maker reviews business operations as a single operating segment[14](index=14&type=chunk) [Major Customers Information](index=7&type=section&id=Major%20Customers%20Information) In H1 2025, Customer B contributed RMB 71,798 thousand, exceeding 10% of total revenue, compared to Customer A in H1 2024 Major Customer Revenue Contribution (Over 10% of Total Revenue) | Customer | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Customer A | Not applicable | 35,883 | | Customer B | 71,798 | Not applicable | [Revenue](index=8&type=section&id=Revenue) Total revenue for H1 2025 was approximately RMB 346.6 million, a 2.8% decrease year-on-year, primarily from construction contracts, with growth in civil and municipal engineering but significant decline in prefabricated steel structure and other specialized contracting Total Revenue and Year-on-year Change | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Total Revenue | 346,554 | 356,507 | -2.8% | [Revenue Composition](index=8&type=section&id=Revenue%20Composition) Construction contract revenue forms the majority, with civil and municipal engineering growing by 7.2% and 16.8% respectively, while prefabricated steel structure and other specialized contracting revenue declined over 50% Construction Contract Revenue Breakdown | Construction Contract Type | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Civil Engineering | 204,101 | 190,329 | +7.2% | | Municipal Engineering | 103,602 | 88,683 | +16.8% | | Foundation Engineering | 4,199 | 4,289 | -2.1% | | Prefabricated Steel Structure Engineering | 13,808 | 29,433 | -53.1% | | Other Specialized Contracting | 20,017 | 42,138 | -52.5% | | **Total Construction Contract Revenue** | **345,727** | **354,872** | **-2.6%** | | Revenue from Provision of Construction Machinery and Equipment | 827 | 1,635 | -49.4% | [Geographical Information](index=9&type=section&id=Geographical%20Information) Hunan Province remains the primary revenue source but saw a decrease, while Jiangxi Province experienced significant growth, and Hainan Province's revenue declined Geographical Revenue Distribution | Region | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Hunan | 193,324 | 257,348 | | Hainan | 30,721 | 50,168 | | Jiangxi | 71,798 | 15,164 | | Others | 50,711 | 33,827 | | **Total** | **346,554** | **356,507** | [Other Income and Net Other Gains](index=9&type=section&id=Other%20Income%20and%20Net%20Other%20Gains) Other income and net other gains decreased to RMB 0.3 million in H1 2025, mainly due to reduced government grants Other Income and Net Other Gains | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest Income from Bank Deposits | 349 | 85 | | Government Grants | 8 | 507 | | Gain on Disposal of Property, Plant and Equipment | 32 | 1 | | Others | (84) | (2) | | **Total** | **305** | **591** | [Finance Costs](index=10&type=section&id=Finance%20Costs) Finance costs decreased to RMB 2.2 million in H1 2025, primarily due to a reduction in average borrowings and partial repayment of loans Finance Costs Components | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest Expense on Lease Liabilities | 36 | 39 | | Interest Expense on Borrowings | 2,121 | 2,702 | | **Total** | **2,157** | **2,741** | [Loss Before Income Tax](index=10&type=section&id=Loss%20Before%20Income%20Tax) Loss before income tax narrowed to RMB 21.5 million in H1 2025 from RMB 26.8 million in the prior year, driven by changes in inventory costs, depreciation, R&D, and short-term lease expenses Key Components of Loss Before Income Tax | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of Inventories | 93,849 | 145,446 | | Depreciation of Owned Property, Plant and Equipment | 1,144 | 2,325 | | Research and Development Costs | 8,986 | 9,352 | | Short-term Lease Expenses — Machinery and Equipment | 31,303 | 19,120 | [Income Tax Credit](index=11&type=section&id=Income%20Tax%20Credit) Income tax credit decreased to RMB 2.0 million in H1 2025 from RMB 4.1 million in the prior year, with some subsidiaries enjoying preferential tax rates as high-tech or small-profit enterprises Income Tax Credit | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | PRC Enterprise Income Tax (Current Period) | 1,732 | 527 | | Deferred Tax | (3,731) | (4,657) | | **Total** | **(1,999)** | **(4,130)** | - One subsidiary is certified as a high-tech enterprise, enjoying a **15% preferential enterprise income tax rate**[28](index=28&type=chunk)[53](index=53&type=chunk) - Two subsidiaries qualify as small-profit enterprises, entitled to preferential tax rates[28](index=28&type=chunk) [Dividends](index=11&type=section&id=Dividends) No dividends were paid or declared by the Company for H1 2025 or H1 2024 - No dividends were paid or declared by the Company for H1 2025 and H1 2024[29](index=29&type=chunk) [Loss Per Share](index=12&type=section&id=Loss%20Per%20Share) Basic loss per share narrowed to RMB 3.19 cents in H1 2025 from RMB 4.25 cents in H1 2024, with diluted loss per share being the same due to no potential dilutive ordinary shares Loss Per Share Data | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Loss for the Period Attributable to Owners of the Company (RMB thousand) | (18,397) | (21,551) | | Weighted Average Number of Shares in Issue | 576,000,000 | 507,342,000* | | Basic Loss Per Share (RMB cents) | (3.19) | (4.25)* | - Diluted loss per share is the same as basic loss per share for H1 2025 due to no outstanding potential dilutive ordinary shares[31](index=31&type=chunk) [Trade and Bills Receivables and Other Receivables](index=13&type=section&id=Trade%20and%20Bills%20Receivables%20and%20Other%20Receivables) As of June 30, 2025, net trade and bills receivables were RMB 329,573 thousand, a decrease from December 31, 2024, while prepayments significantly increased Summary of Trade and Bills Receivables and Other Receivables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables | 377,050 | 448,472 | | Bills Receivables | 1,061 | 725 | | Impairment Allowance | (48,538) | (35,224) | | **Net Trade and Bills Receivables** | **329,573** | **413,973** | | Prepayments | 206,630 | 26,780 | | **Total** | **624,038** | **528,494** | Trade Receivables Aging Analysis (Net of Impairment Losses) | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 90 days | 40,709 | 144,887 | | 91 to 180 days | 25,322 | 11,999 | | 181 to 365 days | 62,821 | 64,941 | | 1 to 2 years | 94,756 | 107,476 | | 2 to 3 years | 64,442 | 53,407 | | Over 3 years | 40,485 | 30,587 | | **Total** | **328,535** | **413,297** | [Trade Payables](index=14&type=section&id=Trade%20Payables) As of June 30, 2025, total trade payables increased to RMB 1,089,101 thousand, with a significant portion aged over one year Trade Payables Summary | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Payables — Third Parties | 1,055,899 | 945,415 | | Trade Payables — Related Parties | 33,202 | 39,891 | | **Total** | **1,089,101** | **985,306** | Trade Payables Aging Analysis | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 90 days | 86,078 | 226,489 | | 91 to 180 days | 66,952 | 35,362 | | 181 to 365 days | 249,734 | 262,185 | | 1 to 2 years | 534,396 | 353,674 | | Over 2 years | 151,941 | 107,596 | | **Total** | **1,089,101** | **985,306** | [Borrowings](index=15&type=section&id=Borrowings) As of June 30, 2025, total interest-bearing borrowings decreased by 17.5% to approximately RMB 93.3 million, mostly current liabilities, with some financial covenant breaches waived by banks Borrowings Composition | Borrowing Type | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Current Borrowings | 92,727 | 110,261 | | Non-current Borrowings | 622 | 2,800 | | **Total** | **93,349** | **113,061** | - The Group failed to comply with certain financial covenants for bank borrowings totaling **RMB 73.5 million**, but waivers were obtained from the banks after the reporting period[37](index=37&type=chunk) Pledged Assets for Borrowings | Pledged Assets | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Property, Plant and Equipment | 5,019 | 5,022 | | Trade and Bills Receivables | — | 33,750 | | Investment Properties | 8,782 | 6,934 | | Bank Deposits | — | 5,000 | | Intangible Assets | — | 38 | Business Review and Future Outlook [Business Review](index=18&type=section&id=Business%20Review) In H1 2025, the Group operated in a challenging market with a slight revenue decrease, but civil and municipal engineering grew, and gross profit margin improved due to cost control and project selection - Operated in a challenging market environment with a continued downturn in China's real estate sector and a slow economic recovery[38](index=38&type=chunk) - Total revenue slightly decreased by **2.8%** year-on-year to approximately **RMB 346.6 million**, with a narrower decline compared to the previous year[38](index=38&type=chunk) - Revenue from civil engineering and municipal engineering recorded mid-single-digit and double-digit growth, respectively, while prefabricated steel structure engineering and other specialized contracting revenue significantly declined[38](index=38&type=chunk) - Gross profit margin slightly increased to approximately **11.3%** (H1 2024: approximately 10.9%), primarily due to a focus on cost control and stringent project selection[39](index=39&type=chunk) [Future Outlook and Strategies](index=18&type=section&id=Future%20Outlook%20and%20Strategies) The Group anticipates continued pressure in China's construction industry and will maintain a cautious strategy focusing on resilient segments, risk management, cost discipline, liquidity, and exploring new opportunities for long-term growth - China's construction industry is expected to remain under pressure, with intense competition for new projects and liquidity management as a key challenge[40](index=40&type=chunk) - Strategies include prioritizing civil engineering and municipal engineering projects; strengthening project selection criteria, focusing on clients with strong credit profiles; strict control over administrative expenses to enhance operational efficiency; prudent working capital management and accelerating receivables collection; and evaluating potential growth areas such as urban renewal, infrastructure upgrades, and green building initiatives[41](index=41&type=chunk)[42](index=42&type=chunk) Financial Performance Analysis [Revenue Analysis](index=20&type=section&id=Revenue%20Analysis) Total revenue for H1 2025 was approximately RMB 346.6 million, a 2.8% year-on-year decrease, with a narrower decline indicating business stabilization - Revenue for H1 2025 was approximately **RMB 346.6 million**, a decrease of approximately **2.8%** compared to H1 2024[43](index=43&type=chunk) - The decrease was significantly narrower than in H1 2024, indicating a gradual stabilization of business operations[43](index=43&type=chunk) [Construction Contract Revenue](index=20&type=section&id=Construction%20Contract%20Revenue) Construction contract revenue was approximately RMB 345.7 million. Civil and municipal engineering revenue grew by 7.2% and 16.8%, while prefabricated steel structure and other specialized contracting revenue significantly declined by 53.1% and 52.5% Construction Contract Revenue Breakdown and Changes | Construction Contract Type | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Civil Engineering | 204.1 | 190.3 | +7.2% | | Municipal Engineering | 103.6 | 88.7 | +16.8% | | Prefabricated Steel Structure Engineering | 13.8 | 29.4 | -53.1% | | Other Specialized Contracting | 20.0 | 42.1 | -52.5% | [Revenue from Provision of Construction Machinery and Equipment](index=21&type=section&id=Revenue%20from%20Provision%20of%20Construction%20Machinery%20and%20Equipment) Revenue from providing construction machinery and equipment decreased from approximately RMB 1.6 million in H1 2024 to RMB 0.8 million in H1 2025 Revenue from Provision of Construction Machinery and Equipment | Item | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Revenue from Provision of Construction Machinery and Equipment | 0.8 | 1.6 | [Cost of Sales and Gross Profit](index=21&type=section&id=Cost%20of%20Sales%20and%20Gross%20Profit) Cost of sales decreased by 3.2% to RMB 307.5 million, aligning with revenue reduction, while gross profit slightly increased to RMB 39.1 million, and gross profit margin rose to 11.3%, reflecting improved project mix and cost management Cost of Sales and Gross Profit | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Cost of Sales | 307.5 | 317.8 | -3.2% | | Gross Profit | 39.1 | 38.7 | +1.0% | | Gross Profit Margin | 11.3% | 10.9% | +0.4 percentage points | - The decrease in cost of sales was primarily due to reduced material costs and subcontracting expenses resulting from the contraction of prefabricated steel structure and other specialized contracting projects[47](index=47&type=chunk) [Analysis of Other Income and Expenses](index=21&type=section&id=Analysis%20of%20Other%20Income%20and%20Expenses) Other income and net other gains decreased due to reduced government subsidies, administrative and other expenses remained stable, impairment of financial and contract assets remained stable, and finance costs decreased due to lower average borrowings - Other income and net other gains decreased to **RMB 0.3 million**, mainly due to a reduction in government subsidies[49](index=49&type=chunk) - Administrative and other expenses remained relatively stable at **RMB 34.5 million**[50](index=50&type=chunk) - Net impairment of financial and contract assets remained stable at **RMB 24.3 million**[51](index=51&type=chunk) - Finance costs decreased to **RMB 2.2 million**, primarily due to a reduction in average borrowings and partial repayment of certain borrowings[52](index=52&type=chunk) [Net Loss Analysis](index=22&type=section&id=Net%20Loss%20Analysis) Loss attributable to owners narrowed to RMB 18.4 million in H1 2025, an improvement of approximately 14.6%, primarily due to reduced impairment expenses and finance costs Loss Attributable to Owners of the Company | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Loss Attributable to Owners of the Company | (18.4) | (21.6) | Loss narrowed by 14.6% | - The narrowing of the loss was mainly due to reduced impairment expenses and finance costs[54](index=54&type=chunk) Liquidity and Capital Structure [Liquidity and Financial Resources](index=22&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, net current assets were approximately RMB 441.4 million, current ratio slightly decreased to 1.24, and cash and cash equivalents increased by 25.0% to RMB 40.7 million, still reflecting working capital pressure Liquidity Indicators | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Net Current Assets | 441.4 | 465.3 | -5.1% | | Current Ratio | 1.24 | 1.27 | -0.03 | | Cash and Cash Equivalents | 40.7 | 32.5 | +25.0% | - The increase in cash was mainly due to improved operating cash inflow and tighter control over capital expenditure, but the cash balance remains at a relatively modest level, reflecting ongoing working capital pressure[55](index=55&type=chunk) - The Group will continue to strengthen receivables collection and actively manage contract assets to enhance liquidity[55](index=55&type=chunk) [Funding and Treasury Policy](index=23&type=section&id=Funding%20and%20Treasury%20Policy) The Group maintains a prudent funding and treasury policy, keeping surplus funds in licensed banks and closely monitoring liquidity to meet funding needs - The Group maintains a prudent funding and treasury policy, with surplus funds held as cash deposits in licensed banks[57](index=57&type=chunk) - The Board closely monitors the Group's liquidity position to ensure funding needs are met[57](index=57&type=chunk) [Capital Commitments](index=23&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group's capital commitments for property, plant, and equipment acquisition were approximately RMB 14.5 million, consistent with December 31, 2024 Capital Commitments | Item | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Acquisition of Property, Plant and Equipment | 14.5 | 14.5 | [Gearing Ratio](index=25&type=section&id=Gearing%20Ratio) As of June 30, 2025, the gearing ratio (total interest-bearing debt divided by total equity) decreased to approximately 19.5% from 23.0% at December 31, 2024, reflecting debt reduction and a sound capital structure approach Gearing Ratio | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gearing Ratio | 19.5% | 23.0% | [Pledge of Assets](index=25&type=section&id=Pledge%20of%20Assets) Details of assets pledged by the Group to secure borrowings are provided in Note 14 to the condensed consolidated financial statements, primarily including property, plant, and equipment, and investment properties - Details of assets pledged by the Group to secure borrowings are contained in Note 14 to the condensed consolidated financial statements[65](index=65&type=chunk) [Use of Proceeds from Global Offering](index=25&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering) Net proceeds from the global offering were approximately RMB 76.6 million, with RMB 65.1 million utilized by H1 2025 for project pre-expenses, technology center working capital, and general corporate purposes, and the remaining RMB 11.5 million expected for machinery and equipment by December 2025 Use and Application of Proceeds from Global Offering | Purpose | Intended Use (RMB million) | Utilized in H1 2025 (RMB million) | Unutilized as of June 30, 2025 (RMB million) | Estimated Timeline for Unutilized Net Proceeds | | :--- | :--- | :--- | :--- | :--- | | Funding pre-expenses for three ongoing projects | 38.3 | 38.3 | — | Not applicable | | Purchasing and/or replacing construction machinery and equipment | 15.3 | 3.8 | 11.5 | Before December 2025 | | Funding establishment and operation of a technology center | 15.3 | 15.3 | — | Not applicable | | Working capital and general corporate purposes | 7.7 | 7.7 | — | Not applicable | | **Total** | **76.6** | **65.1** | **11.5** | | Employees and Remuneration [Employees and Remuneration Policy](index=23&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group employed 335 staff with total staff costs of approximately RMB 10.9 million, utilizing an appraisal system for salary reviews and bonuses, alongside various benefits and training Employees and Staff Costs | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Number of Employees | 335 | 295 | | Total Staff Costs (RMB million) | 10.9 | 14.8 | - An appraisal system is used for salary reviews and bonus determination, along with various additional benefits and training opportunities[59](index=59&type=chunk) - A share option scheme was adopted on March 10, 2023, but no share options have been granted from the listing date up to June 30, 2025[60](index=60&type=chunk) Investment and Asset Plans [Future Plans for Material Investments and Capital Assets](index=24&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) Except for disclosures in the prospectus and June 7, 2024 announcement, the Group had no other future plans for material investments and capital assets as of June 30, 2025 - Except for information disclosed in the prospectus and the announcement dated June 7, 2024, the Group had no other future plans for material investments and capital assets as of June 30, 2025[61](index=61&type=chunk) [Material Investments, Acquisitions and Disposals](index=26&type=section&id=Material%20Investments%2C%20Acquisitions%20and%20Disposals) In H1 2025, the Group did not hold any material investments or undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures - In H1 2025, the Group did not hold any material investments or undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures[69](index=69&type=chunk) Risk Management [Contingent Liabilities](index=24&type=section&id=Contingent%20Liabilities) Except for certain outstanding litigations and claims arising in the ordinary course of business, the Group had no material contingent liabilities as of June 30, 2025 - Except for certain outstanding litigations and claims arising in the ordinary course of business, the Group had no material contingent liabilities as of June 30, 2025[62](index=62&type=chunk) [Foreign Exchange Risk](index=25&type=section&id=Foreign%20Exchange%20Risk) The Group's assets, liabilities, and transactions are primarily denominated in RMB, with no foreign exchange contracts to hedge fluctuations, and directors consider foreign exchange risk to be minimal - The Group's assets, liabilities, and transactions are primarily denominated in RMB[63](index=63&type=chunk) - No foreign exchange contracts have been entered into to hedge against exchange rate fluctuations, and the Directors consider foreign exchange risk to be minimal[63](index=63&type=chunk) Share Capital and Dividends [Share Transactions](index=25&type=section&id=Share%20Transactions) Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities in H1 2025 - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities in H1 2025[66](index=66&type=chunk) [Interim Dividend](index=26&type=section&id=Interim%20Dividend) The Board does not recommend an interim dividend for H1 2025, consistent with H1 2024 - The Board does not recommend an interim dividend for H1 2025 (H1 2024: nil)[70](index=70&type=chunk) Corporate Governance [Audit Committee](index=26&type=section&id=Audit%20Committee) The Audit Committee, established on March 10, 2023, comprises three independent non-executive directors, advising on auditor appointment, financial statement review, internal control, and risk management, and has reviewed H1 2025 interim financial information - The Audit Committee was established on **March 10, 2023**, and comprises three independent non-executive directors[71](index=71&type=chunk) - Its primary responsibilities include advising on the appointment of external auditors, reviewing financial statements, and overseeing financial reporting procedures, internal control, and risk management systems[71](index=71&type=chunk) - The Audit Committee has reviewed the unaudited condensed consolidated interim financial information for H1 2025[72](index=72&type=chunk) [Corporate Governance Practices](index=27&type=section&id=Corporate%20Governance%20Practices) The Board is committed to high standards of corporate governance and adopted and complied with the Corporate Governance Code in Appendix C1 of the Listing Rules during H1 2025 - The Board is committed to achieving high standards of corporate governance and adopted and complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules during H1 2025[73](index=73&type=chunk) [Model Code for Securities Transactions](index=27&type=section&id=Model%20Code%20for%20Securities%20Transactions) The Company adopted the Model Code for Securities Transactions by Directors of Listed Issuers in Appendix C3 of the Listing Rules, with all directors confirming compliance during H1 2025 - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[74](index=74&type=chunk) - All Directors confirmed their compliance with the required standards of dealing as set out in the Model Code throughout H1 2025[74](index=74&type=chunk) Other Important Information [Significant Events After H1 2025](index=27&type=section&id=Significant%20Events%20After%20H1%202025) The Directors noted no significant events concerning the Group's business or financial performance after June 30, 2025 - The Directors noted no significant events concerning the Group's business or financial performance after June 30, 2025[75](index=75&type=chunk) [Interim Report Publication](index=27&type=section&id=Interim%20Report%20Publication) The H1 2025 interim report will be dispatched to shareholders and published on the HKEX and Company websites in due course - The H1 2025 interim report will be dispatched to shareholders and published on the HKEX website and the Company's website in due course[76](index=76&type=chunk) [Acknowledgements and Board Composition](index=28&type=section&id=Acknowledgements%20and%20Board%20Composition) The Board extends gratitude to management, staff, shareholders, business partners, and professionals for their support, with the Board comprising four executive and three independent non-executive directors as of the announcement date - The Board extends its sincere gratitude to the Group's management and all staff for their efforts and contributions, as well as to shareholders, business partners, and other professionals for their support[77](index=77&type=chunk) - The Board comprises Mr. Yang Zhongjie (Chairman and Executive Director); Mr. Liu Xiaohong, Mr. Chen Weiwu, and Mr. Min Shixiong (Executive Directors); and Dr. Liu Jianlong, Ms. Deng Jianhua, and Mr. Liu Guohui (Independent Non-executive Directors)[80](index=80&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 會 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 之 任 何 損 失 承 擔 任 何 責 任。 ZENSUN ENTERPRISES LIMITED 正商實業有限公司 （於 香 港 註 冊 成 立 之 有 限 公 司） （股 份 代 號：185及 債 務 股 份 代 號：5862） 截 至2025年6月30日止六個月 中期業績公告 本期間財務摘要 正商實業有限公司（「本 公 司」）董 事（「董 事」）會（「董 事 會」）謹此公佈本公司及其 附屬公司（統 稱「本 集 團」）截 至2025年6月30日止六個月（「本 期 間」）之未經審核中 期簡明綜合業績連同本公告所載2024年 同 期 之 比 較 數 字，有 關 業 績 及 比 較 數 字 已由本公司審核委員會（「審 核 委 員 會」）審 閱。 截 至6月30日止六個月 | | | 2025年 2024年 | | | --- | ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對 其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內 容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 WEBX INTERNATIONAL HOLDINGS COMPANY LIMITED （於開曼群島註冊成立之有限公司） 智雲國際控股有限公司 （股份代號: 8521） 2025年中期業績公告 智雲國際控股有限公司（「本公司」，連同其附屬公司統稱「本集團」）董事（「董事」）會（「董 事會」）欣然宣佈本集團截至2025年6月30日止六個月的未經審核業績。本公告載列本公 司2025年中期報告全文，並符合香港聯合交易所有限公司（「聯交所」）GEM證券上市規則 （「GEM上市規則」）中有關中期業績初步公告附載資料的相關規定。 代表董事會 智雲國際控股有限公司 主席兼執行董事 黃繼雄 香港，2025年8月29日 於本公告日期，董事會包括三名執行董事，即黃繼雄先生、李鍵先生及陳國敏先生；一 名非執行董事，即洪育苗先生；及三名獨立非執行董事，即伍永亨先生、陳綺華博士及 劉明芳先生。 本公告乃根據GEM上市規則提供有關 ...

[Company Information](index=3&type=section&id=Company%20Information) This section provides essential details about the company's governance, registration, and contact information [Board of Directors](index=3&type=section&id=Board%20of%20Directors) The company's Board of Directors comprises three executive directors, including the Chairman and CEO, and three independent non-executive directors - Executive Directors include **Mr. Yu Hon Tung** (Chairman and Chief Executive Officer), **Mr. Lo Cheung Moon**, and **Mr. Leung Cheong Yu**[5](index=5&type=chunk) - Independent Non-Executive Directors include **Ms. Lam Shun Ka**, **Mr. Li Xiao Ping**, and **Mr. Tong Chi Kwan**[5](index=5&type=chunk) [Registered Office and Principal Place of Business](index=3&type=section&id=Registered%20Office%20and%20Principal%20Place%20of%20Business) The company's registered office is in the Cayman Islands, with its headquarters and principal place of business located in Kwun Tong, Kowloon, Hong Kong - The registered office is located at Windward 3, Regatta Office Park, Cayman Islands[5](index=5&type=chunk) - The headquarters and principal place of business are located at 6/F, SML Tower, 165 Hoi Bun Road, Kwun Tong, Kowloon, Hong Kong[5](index=5&type=chunk) [Auditor and Share Registrar](index=3&type=section&id=Auditor%20and%20Share%20Registrar) The company's auditor is Goldlink CPA Limited, the Cayman Islands principal share registrar is Ocorian Trust (Cayman) Limited, and the Hong Kong branch share registrar is Tricor Investor Services Limited - The auditor is **Goldlink CPA Limited**[5](index=5&type=chunk) - The Cayman Islands principal share registrar is **Ocorian Trust (Cayman) Limited**[5](index=5&type=chunk) - The Hong Kong branch share registrar is **Tricor Investor Services Limited**[5](index=5&type=chunk) [Stock Code and Website](index=3&type=section&id=Stock%20Code%20and%20Website) The company's stock code is 8606, and its official website is www.kinetix.com.hk - Stock Code: **8606**[6](index=6&type=chunk) - Website: **www.kinetix.com.hk**[6](index=6&type=chunk) [Financial Highlights](index=4&type=section&id=Financial%20Highlights) For the six months ended June 30, 2025, total revenue increased by **19.1% to HK$215.7 million**, gross profit grew by **9.8% to HK$38.3 million**, and the company achieved a net profit of **HK$3.1 million**, reversing a net loss in the prior period 2025 Interim Financial Highlights | Indicator | Six Months Ended June 30, 2025 (HK$'000) | Six Months Ended June 30, 2024 (HK$'000) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 215,700 | 181,159 | +19.1% | | Gross Profit | 38,300 | 34,845 | +9.8% | | Net Profit/(Loss) | 3,100 | (600) | N/A (Turned profitable) | - The Board resolved not to recommend the payment of an interim dividend for the six months ended June 30, 2025[7](index=7&type=chunk) [Condensed Interim Consolidated Financial Statements](index=5&type=section&id=Condensed%20Interim%20Consolidated%20Financial%20Statements) This section presents the company's condensed interim consolidated financial statements, including statements of profit or loss, financial position, changes in equity, and cash flows [Condensed Interim Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=5&type=section&id=Condensed%20Interim%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company reported revenue of **HK$215.7 million**, gross profit of **HK$38.252 million**, profit for the period of **HK$3.085 million**, and basic earnings per share of **0.17 HK cents**, reversing a loss from the prior period Condensed Interim Consolidated Statement of Profit or Loss and Other Comprehensive Income (Summary) | Indicator | Six Months Ended June 30, 2025 (HK$'000) | Six Months Ended June 30, 2024 (HK$'000) | | :--- | :--- | :--- | | Revenue | 215,710 | 181,159 | | Cost of sales | (177,458) | (146,314) | | Gross Profit | 38,252 | 34,845 | | Profit/(Loss) before tax | 3,152 | (634) | | Profit/(Loss) for the period | 3,085 | (620) | | Profit/(Loss) attributable to owners of the Company | 2,508 | (665) | | Basic earnings/(loss) per share | 0.17 HK cents | (0.05) HK cents | - Total comprehensive income for the period was **HK$3,022 thousand**, compared to a total comprehensive loss of **HK$711 thousand** for the corresponding period in 2024[9](index=9&type=chunk) [Condensed Interim Consolidated Statement of Financial Position](index=7&type=section&id=Condensed%20Interim%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets increased to **HK$272.4 million**, up approximately **49.1%** from December 31, 2024, while total liabilities increased to **HK$204.9 million**, and total equity increased to **HK$67.503 million** Condensed Interim Consolidated Statement of Financial Position (Summary) | Indicator | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Total Assets | 272,447 | 182,726 | | Total Equity | 67,503 | 64,481 | | Total Liabilities | 204,944 | 118,245 | | Non-current assets | 22,262 | 11,322 | | Current assets | 250,185 | 171,404 | | Current liabilities | 196,918 | 117,121 | - Trade and other receivables increased from **HK$70.955 million** as of December 31, 2024, to **HK$116.6 million** as of June 30, 2025[10](index=10&type=chunk) - Cash and cash equivalents increased from **HK$31.188 million** as of December 31, 2024, to **HK$56.818 million** as of June 30, 2025[10](index=10&type=chunk) [Condensed Interim Consolidated Statement of Changes in Equity](index=9&type=section&id=Condensed%20Interim%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, equity attributable to owners of the Company increased from **HK$74.978 million** at the beginning of the period to **HK$77.423 million** at the end, primarily due to a profit for the period of **HK$2.508 million** Changes in Equity Attributable to Owners of the Company (Summary) | Indicator | January 1, 2025 (HK$'000) | June 30, 2025 (HK$'000) | | :--- | :--- | :--- | | Equity attributable to owners of the Company | 74,978 | 77,423 | | Profit for the period | - | 2,508 | | Total comprehensive income for the period | - | 2,445 | - Non-controlling interests increased from **HK$(10.497) million** at the beginning of the period to **HK$(9.920) million** at the end[12](index=12&type=chunk) [Condensed Interim Consolidated Statement of Cash Flows](index=10&type=section&id=Condensed%20Interim%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash generated from operating activities significantly increased to **HK$30.11 million**, with a net increase in cash and cash equivalents of **HK$25.701 million**, bringing the period-end cash balance to **HK$56.818 million** Condensed Interim Consolidated Statement of Cash Flows (Summary) | Indicator | Six Months Ended June 30, 2025 (HK$'000) | Six Months Ended June 30, 2024 (HK$'000) | | :--- | :--- | :--- | | Net cash generated from operating activities | 30,110 | 17,112 | | Net cash used in investing activities | (1,234) | (270) | | Net cash used in financing activities | (3,175) | (1,883) | | Net increase in cash and cash equivalents | 25,701 | 14,959 | | Cash and cash equivalents at end of period | 56,818 | 45,218 | [Notes to the Condensed Interim Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Interim%20Consolidated%20Financial%20Statements) This section provides detailed notes explaining the basis of preparation, significant accounting policies, and specific financial statement line items [General Information](index=11&type=section&id=General%20Information) Kinetix Holdings Limited was incorporated in the Cayman Islands in **2016**, primarily engaged in providing IT infrastructure, development solutions, and maintenance and support services - The Company was incorporated in the Cayman Islands on **September 16, 2016**[14](index=14&type=chunk) - Its principal activities include **IT infrastructure solution services**, **IT development solution services**, and **IT maintenance and support services**[14](index=14&type=chunk) [Basis of Preparation and Presentation](index=11&type=section&id=Basis%20of%20Preparation%20and%20Presentation) The condensed interim consolidated financial statements are prepared in accordance with **HKAS 34** and the **GEM Listing Rules**, using the historical cost convention, presented in HK dollars, and reviewed by the Audit Committee - The statements are prepared in accordance with **Hong Kong Accounting Standard 34** and the **GEM Listing Rules**[15](index=15&type=chunk) - They are prepared on a **historical cost basis**, presented in **HK dollars**, and have been reviewed by the Audit Committee but not audited by the auditor[15](index=15&type=chunk) [Adoption of Hong Kong Financial Reporting Standards](index=11&type=section&id=Adoption%20of%20Hong%20Kong%20Financial%20Reporting%20Standards) The adoption of new and revised Hong Kong Financial Reporting Standards and interpretations during the current period has not resulted in **significant changes** to the accounting policies applied in the condensed interim consolidated financial statements - The adoption of new and revised Hong Kong Financial Reporting Standards has not resulted in **significant changes** to accounting policies[16](index=16&type=chunk) [Segment Information](index=12&type=section&id=Segment%20Information) The Group's operating segments primarily include IT infrastructure solutions, IT development solutions, and IT maintenance and support services, with revenue mainly from Hong Kong and significant growth from Singapore - The Group's operating segments include **IT infrastructure solution services**, **IT development solution services**, and **IT maintenance and support services**[17](index=17&type=chunk) [Geographical Information](index=12&type=section&id=Geographical%20Information) The Group's revenue primarily comes from Hong Kong, with **HK$209.5 million** from the Hong Kong market in interim 2025, and Singapore market revenue significantly increased to **HK$4.903 million** Revenue by Geographical Market | Geographical Market | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Hong Kong | 209,526 | 177,935 | | Macau | 1,281 | 2,691 | | Singapore | 4,903 | 453 | | United Kingdom | – | 80 | | **Total** | **215,710** | **181,159** | [Information on Major Customers](index=13&type=section&id=Information%20on%20Major%20Customers) In interim 2025, **Customer A** contributed **HK$26.2 million** in revenue, accounting for **over 10%** of the Group's total revenue Revenue from Major Customers | Customer | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Customer A | 26,200 | * | | Customer B | * | * | * Represents revenue less than 10% of the Group's total revenue for the respective period [Revenue from Contracts with Customers, Other Income and Gains](index=13&type=section&id=Revenue%20from%20Contracts%20with%20Customers,%20Other%20Income%20and%20Gains) The Group's revenue primarily derives from IT infrastructure solution services, which reached **HK$133.9 million** in interim 2025, while other income and gains mainly consist of bank interest income [Revenue from Contracts with Customers](index=13&type=section&id=Revenue%20from%20Contracts%20with%20Customers) In interim 2025, IT infrastructure solution services revenue was **HK$133.9 million**, IT development solution services was **HK$55.785 million**, and IT maintenance and support services was **HK$26.02 million** Revenue by Service Type | Service Type | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | IT infrastructure solution services | 133,905 | 99,076 | | IT development solution services | 55,785 | 59,270 | | IT maintenance and support services | 26,020 | 22,813 | | **Total Revenue** | **215,710** | **181,159** | - In interim 2025, revenue recognized over time was **HK$121.3 million**, and revenue recognized at a point in time was **HK$94.397 million**[26](index=26&type=chunk) [Other Income and Gains](index=14&type=section&id=Other%20Income%20and%20Gains) Other income and gains primarily consist of bank interest income - Other income and gains primarily refer to **bank interest income**[28](index=28&type=chunk)[29](index=29&type=chunk) [Profit/(Loss) Before Tax](index=15&type=section&id=Profit%2F(Loss)%20Before%20Tax) Profit before tax for interim 2025 was **HK$3.152 million**, primarily influenced by software and hardware costs, IT solution services costs, and expected credit loss provisions Major Deductions for Profit/(Loss) Before Tax | Item | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Cost of software and hardware recognized as expense | 118,663 | 80,642 | | Cost of IT solution services | 43,221 | 29,698 | | Cost of IT maintenance and support services | 15,574 | 17,017 | | Provision for expected credit losses | 1,903 | 1,145 | | Directors' fees, salaries, allowances and other benefits in kind (Company Directors) | 2,139 | 1,708 | | Directors' fees, salaries, allowances and other benefits in kind (Other Employees) | 23,149 | 25,294 | - The above costs include subcontracting costs of **HK$36.814 million** for interim 2025 (interim 2024: **HK$39.878 million**)[31](index=31&type=chunk) [Key Management Personnel Compensation and Directors' Emoluments](index=16&type=section&id=Key%20Management%20Personnel%20Compensation%20and%20Directors'%20Emoluments) Total compensation paid to key management personnel for interim 2025 was **HK$2.139 million**, an increase compared to the prior period Key Management Personnel Compensation | Item | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Directors' fees | 66 | 66 | | Short-term employee benefits | 2,049 | 1,615 | | Post-employment benefits | 24 | 27 | | **Total compensation paid to key management personnel** | **2,139** | **1,708** | [Income Tax Expense/(Credit)](index=16&type=section&id=Income%20Tax%20Expense%2F(Credit)) Income tax expense for interim 2025 was **HK$0.067 million**, primarily deferred income tax, with Hong Kong profits tax calculated under a two-tiered tax rate system and no tax payable in the Cayman Islands Income Tax Expense/(Credit) | Item | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Hong Kong Profits Tax - Current year | – | (59) | | Hong Kong Profits Tax - Over-provision in prior years | – | 22 | | Deferred income tax | (67) | 51 | | **Total** | **(67)** | **14** | - Hong Kong profits tax is calculated at **8.25%** on the first **HK$2 million** and **16.5%** on profits exceeding **HK$2 million**[35](index=35&type=chunk) - The Company is not subject to any taxation in the Cayman Islands jurisdiction[35](index=35&type=chunk) [Dividends](index=17&type=section&id=Dividends) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025 (June 30, 2024: **nil HK$**)[36](index=36&type=chunk) [Earnings/(Loss) Per Share](index=17&type=section&id=Earnings%2F(Loss)%20Per%20Share) Basic earnings per share for interim 2025 was **0.17 HK cents**, compared to a loss per share of **0.05 HK cents** in the prior period, with diluted earnings per share being the same due to anti-dilutive effects Earnings/(Loss) Per Share | Indicator | 2025 (HK cents) | 2024 (HK cents) | | :--- | :--- | :--- | | Basic earnings/(loss) per share | 0.17 | (0.05) | | Diluted earnings/(loss) per share | 0.17 | (0.05) | - The weighted average number of ordinary shares in issue was **1,445,850 thousand shares**[37](index=37&type=chunk) - Diluted earnings/(loss) per share is the same as basic earnings/(loss) per share as the exercise of share options had an **anti-dilutive effect** on basic earnings/(loss) per share[38](index=38&type=chunk) [Property, Plant and Equipment](index=18&type=section&id=Property,%20Plant%20and%20Equipment) In interim 2025, the Group acquired approximately **HK$0.733 million** in property, plant and equipment and wrote off approximately **HK$0.004 million** in net book value - The Group acquired items of property, plant and equipment at a cost of approximately **HK$0.733 million** (interim 2024: approximately **HK$0.193 million**)[39](index=39&type=chunk) - Property, plant and equipment with a net book value of approximately **HK$0.004 million** were written off (interim 2024: approximately **HK$0.05 million**)[39](index=39&type=chunk) [Trade and Other Receivables](index=18&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables amounted to **HK$118.7 million**, with trade receivables at **HK$76.613 million**, a significant increase from December 31, 2024 Trade and Other Receivables | Item | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Trade receivables | 76,613 | 40,298 | | Unbilled receivables | 6,672 | 7,014 | | Prepayments | 29,895 | 21,192 | | **Total** | **118,798** | **71,712** | Ageing Analysis of Trade Receivables (Net of Provision) | Ageing | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | 0 to 30 days | 67,880 | 26,084 | | 31 to 90 days | 2,128 | 11,598 | | 91 to 180 days | 204 | 410 | | Over 180 days | 6,401 | 2,206 | | **Total** | **76,613** | **40,298** | - Trade receivables are net of provision for expected credit losses of **HK$17.264 million** (December 31, 2024: **HK$15.459 million**)[41](index=41&type=chunk) [Share Capital](index=20&type=section&id=Share%20Capital) As of June 30, 2025, the company's authorized ordinary share capital was **HK$100 million**, with issued and fully paid ordinary shares amounting to **HK$14.459 million**, at a par value of **HK$0.01 per share** Share Capital Structure | Item | Number of Shares | Share Capital (HK$'000) | | :--- | :--- | :--- | | Authorized ordinary shares (par value HK$0.01 per share) | 10,000,000,000 | 100,000 | | Issued and fully paid ordinary shares (par value HK$0.01 per share) | 1,445,849,998 | 14,459 | [Trade and Other Payables](index=20&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables amounted to **HK$111.3 million**, including trade payables of **HK$37.906 million** and accrued purchases and service costs of **HK$60.886 million** Trade and Other Payables | Item | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Trade payables | 37,906 | 33,407 | | Accrued purchases and service costs | 60,886 | 53,482 | | Amounts due to directors of subsidiaries | 5,168 | 7,156 | | Other payables and accrued expenses | 7,388 | 4,900 | | **Total** | **111,348** | **98,945** | Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | 0 to 30 days | 36,033 | 22,682 | | 31 to 90 days | 1,496 | 9,750 | | Over 90 days | 377 | 975 | | **Total** | **37,906** | **33,407** | [Related Party Transactions](index=21&type=section&id=Related%20Party%20Transactions) For the six months ended June 30, 2025, the Group had **no related party transactions**, and details of key management personnel compensation have been disclosed - For the six months ended June 30, 2025, and June 30, 2024, there were **no related party transactions**[46](index=46&type=chunk) - Details of key management personnel compensation are set out in note **7** to the financial statements[47](index=47&type=chunk) [Bank Borrowings](index=21&type=section&id=Bank%20Borrowings) As of June 30, 2025, the Group had **no bank borrowings**, compared to approximately **HK$0.3 million** in secured bank borrowings as of December 31, 2024, with existing credit facilities secured by assignment of life insurance policies and a corporate guarantee Bank Borrowings | Item | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Secured bank borrowings | – | 262 | - The Group's interest-bearing bank borrowings are secured by an assignment of life insurance policies purchased for the Company's directors and a corporate guarantee of **HK$31 million** provided by the Company[48](index=48&type=chunk) [Management Discussion and Analysis](index=22&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the Group's business performance, financial position, and future outlook, including a detailed review of operational and financial results [Business Review and Outlook](index=22&type=section&id=Business%20Review%20and%20Outlook) The Group achieved a net profit of **HK$3.1 million** in interim 2025, reversing a loss from the prior period, primarily due to increased gross profit and reduced administrative expenses, and will continue to strengthen core competencies and expand IT solutions despite macroeconomic uncertainties - In interim 2025, a profit of approximately **HK$3.1 million** was recorded, compared to a net loss of approximately **HK$0.6 million** in interim 2024, achieving a **turnaround**[50](index=50&type=chunk) - The turnaround was mainly due to an increase in gross profit of approximately **HK$3.4 million** (IT infrastructure solution services and IT maintenance and support services gross profit increase) and a decrease in administrative and general expenses of approximately **HK$1.5 million**[50](index=50&type=chunk) - Looking ahead, the Group will continue to prudently and flexibly manage costs and allocate resources, strengthen its risk management framework, and commit to enhancing core competencies and expanding its portfolio of value-added IT solutions[54](index=54&type=chunk) [Provision of IT Development Solution Services](index=22&type=section&id=Provision%20of%20IT%20Development%20Solution%20Services) Revenue from this segment accounted for approximately **25.9%** of total revenue in interim 2025, decreasing by **5.9%** from **HK$59.3 million** in interim 2024 to **HK$55.8 million** in interim 2025, mainly due to slightly slower project revenue recognition Revenue from IT Development Solution Services | Indicator | Interim 2025 (HK$'000) | Interim 2024 (HK$'000) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 55,800 | 59,300 | -5.9% | | Percentage of total revenue | 25.9% | - | - | - The decrease in revenue was mainly due to slightly **slower progress in project revenue recognition** in interim 2025[51](index=51&type=chunk) [Provision of IT Infrastructure Solution Services](index=22&type=section&id=Provision%20of%20IT%20Infrastructure%20Solution%20Services) Revenue from this segment accounted for approximately **62.1%** of total revenue in interim 2025, increasing by **35.2%** from **HK$99.1 million** in interim 2024 to **HK$133.9 million** in interim 2025, primarily due to an increase in the total number of projects and contract values Revenue from IT Infrastructure Solution Services | Indicator | Interim 2025 (HK$'000) | Interim 2024 (HK$'000) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 133,900 | 99,100 | +35.2% | | Percentage of total revenue | 62.1% | - | - | - The increase was mainly due to an **increase in the total number of projects obtained** and an **increase in the total contract value** of IT infrastructure solution services projects in interim 2025[52](index=52&type=chunk) [Provision of IT Maintenance and Support Services](index=23&type=section&id=Provision%20of%20IT%20Maintenance%20and%20Support%20Services) Revenue from this segment accounted for approximately **12.0%** of total revenue in interim 2025, increasing by **14.1%** from **HK$22.8 million** in interim 2024 to **HK$26.0 million** in interim 2025, mainly due to an increase in average contract value Revenue from IT Maintenance and Support Services | Indicator | Interim 2025 (HK$'000) | Interim 2024 (HK$'000) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 26,000 | 22,800 | +14.1% | | Percentage of total revenue | 12.0% | - | - | - The increase in revenue was mainly due to an **increase in the average contract value** of IT maintenance and support services in interim 2025[53](index=53&type=chunk) [Prospects and Outlook](index=23&type=section&id=Prospects%20and%20Outlook) The Group demonstrated resilience and achieved a turnaround in a complex and volatile global economic environment, though macroeconomic uncertainties persist, with future plans including prudent cost management, strengthened risk management, and seizing opportunities in emerging areas - The macroeconomic environment remains **uncertain**, with persistent inflationary pressures, high interest rates, and geopolitical tensions continuing to affect consumer and business investment confidence[54](index=54&type=chunk) - The Group will continue to prudently and flexibly manage costs and allocate resources, strengthen its risk management framework, and commit to enhancing core competencies and expanding its portfolio of value-added IT solutions[54](index=54&type=chunk) - The aim is to seize opportunities in emerging areas such as **cloud integration**, **AI-driven analytics**, and **enterprise automation** to enhance service quality and diversify revenue streams[54](index=54&type=chunk) [Financial Review](index=23&type=section&id=Financial%20Review) In interim 2025, revenue increased by **19.1%** year-on-year to **HK$215.7 million**, and gross profit grew by **9.8%** to **HK$38.3 million**, though gross margin slightly decreased, with selling and administrative expenses varying, resulting in a profit for the period of **HK$3.1 million** [Revenue](index=23&type=section&id=Revenue) Interim 2025 revenue was approximately **HK$215.7 million**, an increase of **19.1%** compared to interim 2024, primarily driven by increased revenue from IT infrastructure solution services and maintenance and support services Revenue Changes | Indicator | Interim 2025 (HK$'000) | Interim 2024 (HK$'000) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 215,700 | 181,200 | +19.1% | | Increase in IT infrastructure solution services revenue | 34,800 | - | - | | Increase in IT maintenance and support services revenue | 3,200 | - | - | | Decrease in IT development solution services revenue | (3,500) | - | - | [Gross Profit and Gross Margin](index=24&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross profit increased by **9.8%** from **HK$34.8 million** in interim 2024 to **HK$38.3 million** in interim 2025, but gross margin decreased from **19.2%** to **17.7%**, mainly due to lower gross margins from certain IT development solution services Gross Profit and Gross Margin Changes | Indicator | Interim 2025 | Interim 2024 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Gross Profit (HK$'000) | 38,300 | 34,800 | +9.8% | | Gross Margin | 17.7% | 19.2% | -1.5 percentage points | - The decrease in gross margin was mainly due to a decrease in gross margin from certain IT development solution services with relatively **lower gross margins** in interim 2025[56](index=56&type=chunk) [Selling Expenses](index=24&type=section&id=Selling%20Expenses) Interim 2025 selling expenses were approximately **HK$7.5 million**, an increase of **6.4%** compared to the prior period, primarily due to higher salaries for sales personnel and increased sales commissions Selling Expenses Changes | Indicator | Interim 2025 (HK$'000) | Interim 2024 (HK$'000) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Selling expenses | 7,500 | 7,000 | +6.4% | | Increase in sales personnel salaries | 300 | - | - | | Increase in sales commissions | 200 | - | - | [Administrative and General Expenses](index=24&type=section&id=Administrative%20and%20General%20Expenses) Interim 2025 administrative and general expenses were approximately **HK$26.1 million**, a decrease of **5.3%** compared to the prior period, mainly due to reduced staff salaries from a decrease in headcount, partially offset by increased depreciation expenses for right-of-use assets Administrative and General Expenses Changes | Indicator | Interim 2025 (HK$'000) | Interim 2024 (HK$'000) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Administrative and general expenses | 26,100 | 27,600 | -5.3% | | Decrease in staff salaries | (2,200) | - | - | | Increase in depreciation expenses for right-of-use assets | 500 | - | - | [Profit/(Loss) for the Period and Total Comprehensive Income/(Loss)](index=24&type=section&id=Profit%2F(Loss)%20for%20the%20Period%20and%20Total%20Comprehensive%20Income%2F(Loss)) Interim 2025 recorded a profit of **HK$3.1 million**, compared to a loss of **HK$0.6 million** in interim 2024, primarily due to the net effect of increased gross profit and reduced administrative expenses, with total comprehensive income at **HK$3.0 million** Profit/(Loss) for the Period and Total Comprehensive Income/(Loss) | Indicator | Interim 2025 (HK$'000) | Interim 2024 (HK$'000) | | :--- | :--- | :--- | | Profit/(Loss) for the period | 3,100 | (600) | | Total comprehensive income/(loss) | 3,000 | (700) | - Profit for the period was mainly due to the net effect of an increase in gross profit of approximately **HK$3.4 million** and a decrease in administrative and general expenses of approximately **HK$1.5 million**[59](index=59&type=chunk) - Total comprehensive income includes exchange differences arising from the translation of overseas operations and actuarial losses on long service payment obligations[59](index=59&type=chunk) [Liquidity and Financial Resources](index=25&type=section&id=Liquidity%20and%20Financial%20Resources) The Group primarily funds its operations through cash generated from operating activities, with cash and cash equivalents increasing to **HK$56.8 million** as of June 30, 2025, no bank borrowings, and a gearing ratio of **24.2%** Liquidity Position | Indicator | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Cash and cash equivalents | 56,800 | 31,200 | | Bank borrowings | – | 300 | | Gearing ratio | 24.2% | 11.1% | - The Group has a credit facility of **HK$10 million** from The Bank of East Asia, secured by an assignment of life insurance policies and a corporate guarantee of **HK$31 million** provided by the Company[60](index=60&type=chunk) [Capital Structure](index=25&type=section&id=Capital%20Structure) As of June 30, 2025, the company's capital structure comprised issued share capital and reserves - The Company's capital structure comprises issued share capital and reserves, and bank borrowings (although there were **no bank borrowings** at the end of the current period)[62](index=62&type=chunk) [Material Investments](index=25&type=section&id=Material%20Investments) In interim 2025, the Group did not hold any **material equity investments** in other companies - As of interim 2025, the Group did not hold any **material investments** in the equity of any other companies[63](index=63&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=25&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries,%20Associates%20and%20Joint%20Ventures) In interim 2025, the Group did not undertake any **material acquisitions or disposals** of subsidiaries, associates, or joint ventures - As of interim 2025, the Group did not undertake any **material acquisitions or disposals** of subsidiaries, associates, and joint ventures[64](index=64&type=chunk) [Employees and Remuneration Policy](index=25&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had **148 employees**, with total staff costs of approximately **HK$47.7 million**, and its remuneration policy is regularly reviewed by the Remuneration Committee Employees and Remuneration | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total number of employees | 148 | 166 | | Total staff costs (HK$'000) | 47,700 | 46,300 | - The remuneration policy is regularly reviewed with reference to the legal framework, market conditions, and the Group and individual employee performance[65](index=65&type=chunk) - The remuneration policy and terms for executive directors and senior management members are reviewed by the Remuneration Committee[65](index=65&type=chunk) [Share Option Scheme](index=26&type=section&id=Share%20Option%20Scheme) The company's share option scheme was adopted on **June 22, 2018**, with a total of **68,427,536 share options** remaining unexercised as of June 30, 2025, representing approximately **4.73%** of the issued shares Share Option Scheme Details (as of June 30, 2025) | Category of Participant | Grant Date | Exercise Period | Exercise Price (HK$/share) | Number of Unexercised Share Options | | :--- | :--- | :--- | :--- | :--- | | Executive Director Mr. Yu Hon Tung | August 16, 2021 | August 16, 2021 to August 15, 2031 | 0.152 | 987,826 | | Executive Director Mr. Lo Cheung Moon | August 20, 2021 | August 20, 2021 to August 19, 2031 | 0.154 | 735,725 | | Executive Director Mr. Leung Cheong Yu | August 20, 2021 | August 20, 2021 to August 19, 2031 | 0.154 | 735,725 | | Chief Executive Officer Mr. Lam Tai Wai | August 16, 2021 | August 16, 2021 to August 15, 2031 | 0.152 | 9,878,261 | | Other Employees | August 16, 2021 | August 16, 2021 to August 15, 2031 | 0.152 | 24,633,913 | | Other Employees | August 20, 2021 | August 20, 2021 to August 19, 2031 | 0.154 | 31,456,086 | | **Total** | | | | **68,427,536** | - The share option scheme was adopted on **June 22, 2018**[66](index=66&type=chunk) - The maximum number of shares that may be issued upon exercise of all options is **68,427,536 shares**, representing approximately **4.73%** of the Company's issued shares as of June 30, 2025[68](index=68&type=chunk) [Future Plans for Material Investments or Capital Assets](index=27&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) As of June 30, 2025, the Group had **no other material investment or capital asset plans** apart from those disclosed in the rights issue prospectus - As of June 30, 2025, there were **no other material investment or capital asset plans** apart from those disclosed in the rights issue prospectus[69](index=69&type=chunk) [Pledge of Group Assets](index=27&type=section&id=Pledge%20of%20Group%20Assets) As of June 30, 2025, the Group had **no other pledged assets**, except for bank financing secured by an assignment of life insurance policies purchased for the Company's directors and a corporate guarantee of **HK$31 million** provided by the Company - Bank financing is secured by an assignment of life insurance policies purchased for the Company's directors and a corporate guarantee of **HK$31 million** provided by the Company[70](index=70&type=chunk) [Exposure to Fluctuations in Exchange Rates](index=27&type=section&id=Exposure%20to%20Fluctuations%20in%20Exchange%20Rates) The Group primarily operates in Hong Kong, Singapore, and China, with foreign currency risk mainly arising from financial instruments denominated in USD, SGD, and RMB, and management monitors exchange rate risk on a case-by-case basis without hedging strategies - The Group primarily operates in Hong Kong, Singapore, and China, with transactions denominated and settled in **HK dollars**, **Singapore dollars**, and **Renminbi**[71](index=71&type=chunk) - Foreign currency risk primarily arises from trade receivables, cash and cash equivalents, trade payables, and bank borrowings denominated in **USD**, **SGD**, and **RMB**[71](index=71&type=chunk) - The Group has **not adopted any hedging strategies**, but management continues to monitor exchange rate risk on a case-by-case basis[71](index=71&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=27&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) In interim 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - In interim 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[72](index=72&type=chunk) [Contingent Liabilities](index=27&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had **no significant contingent liabilities** and was not aware of any pending or potential material legal proceedings - As of June 30, 2025, the Group had **no significant contingent liabilities** and was not aware of any pending or potential material legal proceedings involving the Group[73](index=73&type=chunk) [Directors' and Chief Executive's Interests](index=28&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests) As of June 30, 2025, directors and the chief executive held interests in the company's shares, with Chairman **Mr. Yu Hon Tung** holding **31.80%** through a controlled corporation and beneficially owning **0.07%** of shares, and other executive directors and the chief executive also holding share option interests Directors' and Chief Executive's Interests in the Company's Shares | Director/Chief Executive | Nature of Interest | Number and Class of Securities | Approximate Percentage | | :--- | :--- | :--- | :--- | | Mr. Yu Hon Tung | Interest in controlled corporation | 459,810,000 ordinary shares (L) | 31.80% | | Mr. Yu Hon Tung | Beneficial owner | 987,826 ordinary shares (L) | 0.07% | | Mr. Lo Cheung Moon | Beneficial owner | 735,725 ordinary shares (L) | 0.05% | | Mr. Leung Cheong Yu | Beneficial owner | 735,725 ordinary shares (L) | 0.05% | | Mr. Lam Tai Wai | Beneficial owner | 9,878,261 ordinary shares (L) | 0.68% | - Vigorous King Limited is **100% owned by Mr. Yu Hon Tung**, who is therefore deemed to be interested in the shares held by Vigorous King Limited[76](index=76&type=chunk) - Beneficially owned shares are derived from **share option interests** granted under the Company's share option scheme[77](index=77&type=chunk) [Substantial Shareholders' Interests](index=30&type=section&id=Substantial%20Shareholders'%20Interests) As of June 30, 2025, **Vigorous King Limited** was the largest shareholder, holding **31.80%** of shares, while **Ms. Tong Po Kei** (spouse of Mr. Yu Hon Tung) was deemed to hold **31.87%** of shares, with other substantial shareholders including **Ms. Yiu Wai Kei**, **Mr. Lam Sze Chun**, and companies controlled by him Substantial Shareholders' Interests in the Company's Shares | Shareholder | Capacity/Nature of Interest | Number and Class of Securities | Approximate Percentage | | :--- | :--- | :--- | :--- | | Vigorous King Limited | Beneficial owner | 459,810,000 ordinary shares (L) | 31.80% | | Ms. Tong Po Kei | Spouse interest | 460,797,826 ordinary shares (L) | 31.87% | | Ms. Yiu Wai Kei | Beneficial owner | 73,400,000 ordinary shares (L) | 5.08% | | Mr. Leung Wan Hung | Spouse interest | 73,400,000 ordinary shares (L) | 5.08% | | Mr. Lam Sze Chun | Beneficial owner | 134,350,000 ordinary shares (L) | 9.29% | | Goldlink Hong Kong Investment Limited | Beneficial owner | 50,000,000 ordinary shares (L) | 3.46% | | Fortune Creation Hong Kong Investment Limited | Beneficial owner | 50,000,000 ordinary shares (L) | 3.46% | - Vigorous King Limited is **100% owned by Mr. Yu Hon Tung**[83](index=83&type=chunk) - **Ms. Tong Po Kei** is the spouse of Mr. Yu Hon Tung, and **Mr. Leung Wan Hung** is the spouse of Ms. Yiu Wai Kei, and are deemed to be interested in the relevant interests under the Securities and Futures Ordinance[83](index=83&type=chunk) - **Goldlink Hong Kong Investment Limited** and **Fortune Creation Hong Kong Investment Limited** are both **100% owned by Mr. Lam Sze Chun**[83](index=83&type=chunk) [Required Standard of Securities Transactions by Directors](index=31&type=section&id=Required%20Standard%20of%20Securities%20Transactions%20by%20Directors) The company has adopted a code of conduct for directors' securities transactions and confirmed **full compliance** with this code during the reporting period - The Company has adopted a code of conduct whose terms are no less exacting than the required standard set out in **Rules 5.48 to 5.67 of the GEM Listing Rules**[82](index=82&type=chunk) - The Directors are satisfied that the standards set out in the code of conduct have been **fully complied with** throughout the accounting period covered by this report[82](index=82&type=chunk) [Corporate Governance Practices](index=32&type=section&id=Corporate%20Governance%20Practices) The company has adopted the Corporate Governance Code but has deviations regarding the combined roles of Chairman and CEO and insurance arrangements for directors' legal actions, which the Board believes are in the company's best interests and risks are manageable - The Company has adopted the Corporate Governance Code as set out in **Appendix C1 to the GEM Listing Rules** and has complied with it throughout interim 2025, save for certain deviations[84](index=84&type=chunk) - The deviation is that the roles of Chairman and Chief Executive Officer are combined and held by **Mr. Yu Hon Tung**, which the Board believes is in the **best interests of the Group**[84](index=84&type=chunk) - The Company currently has **no insurance arrangements** for legal actions against directors, as the Board believes the risks faced by directors are relatively low and manageable due to efficient risk management and internal control systems[85](index=85&type=chunk) [Use of Proceeds](index=33&type=section&id=Use%20of%20Proceeds) The Group through a rights issue raised net proceeds of approximately **HK$29.9 million**, with **HK$18 million** utilized for IT development solution services in China and working capital as of June 30, 2025, and the remaining balance expected to be fully utilized by **December 31, 2025** Use of Proceeds from Rights Issue | Purpose | As stated in Rights Issue Prospectus (HK$ million) | Actual utilization as of June 30, 2025 (HK$ million) | Balance as of June 30, 2025 (HK$ million) | Expected timeline for full utilization of remaining net proceeds | | :--- | :--- | :--- | :--- | :--- | | Development and cultivation of new energy vehicle industry | 11.9 | – | 11.9 | December 31, 2025 | | Expansion of IT development solution services in China | 8.0 | 8.0 | – | Fully utilized | | Working capital and other general corporate purposes | 10.0 | 10.0 | – | Fully utilized | | **Total** | **29.9** | **18.0** | **11.9** | | - Development and cultivation of the new energy vehicle industry's use of proceeds experienced delays, mainly due to **unfavorable external economic conditions in China**, **high inflation and interest rates**, **changes in promotional policies**, and **increased market competition**[89](index=89&type=chunk) - The remaining net proceeds are expected to be **fully utilized by December 31, 2025**[89](index=89&type=chunk) [Audit Committee](index=34&type=section&id=Audit%20Committee) The Group's Audit Committee was established on **June 22, 2018**, with primary responsibilities including recommending external auditors, reviewing financial statements, and overseeing internal control procedures, and has reviewed the current period's financial statements, finding them to comply with applicable standards - The Audit Committee was established on **June 22, 2018**, and adopted terms of reference in compliance with **code provision D.3.3 of the Code**[90](index=90&type=chunk) - Its primary responsibilities include making recommendations on the appointment, reappointment, and removal of external auditors, reviewing the Company's financial statements and making judgments on financial reporting, and overseeing the effectiveness of the Group's internal control procedures[90](index=90&type=chunk) - The Audit Committee has reviewed the Group's unaudited financial statements for the six months ended June 30, 2025, and is of the opinion that they have been prepared in accordance with applicable accounting standards, the GEM Listing Rules, and other applicable legal requirements[90](index=90&type=chunk) [Dividends](index=35&type=section&id=Dividends) The Board of Directors has resolved **not to declare a dividend** for the six months ended June 30, 2025 - The Board of Directors has resolved **not to declare a dividend** for the six months ended June 30, 2025[91](index=91&type=chunk) [Disclosure of Information](index=35&type=section&id=Disclosure%20of%20Information) This report will be published on the HKEX website and the company's website and promptly dispatched to shareholders - This report will be published on the **HKEX website** (http://www.hkexnews.hk) and the **Company's website** (http://www.kinetix.com.hk)[92](index=92&type=chunk) [Material Events After the Reporting Period](index=35&type=section&id=Material%20Events%20After%20the%20Reporting%20Period) No material events occurred after the interim 2025 reporting period, other than those disclosed elsewhere in this report - No material events occurred after the interim 2025 reporting period, other than those disclosed elsewhere in this report[93](index=93&type=chunk)

[Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) [Overview of Statement of Profit or Loss](index=2&type=section&id=Overview%20of%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the company's revenue decreased by 28.0% year-on-year to **RMB 84,598 thousand**, gross profit decreased by 39.9% to **RMB 29,135 thousand**, and loss for the period expanded to **RMB 9,462 thousand**, with basic loss per share attributable to owners of the parent company at **RMB 1.36 cents** Statement of Profit or Loss Summary | Metric | 2025 (Thousand RMB) | 2024 (Thousand RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 84,598 | 117,475 | -28.0 | | Cost of Sales | (55,463) | (69,008) | -19.6 | | Gross Profit | 29,135 | 48,467 | -39.9 | | Other Income and Gains | 1,302 | 9,950 | -86.9 | | Selling and Distribution Expenses | (20,115) | (23,687) | -15.1 | | Administrative Expenses | (15,788) | (20,207) | -21.9 | | Research and Development Expenses | (807) | (446) | 80.9 | | Other Expenses | (550) | (14,717) | -96.3 | | Finance Costs | (1,398) | (1,577) | -11.3 | | Loss Before Tax | (8,284) | (2,257) | 267.0 | | Income Tax Expense | (1,178) | (740) | 59.2 | | Loss for the Period | (9,462) | (2,997) | 215.7 | | Loss Attributable to Owners of the Parent | (7,570) | (1,617) | 368.1 | | Basic and Diluted Loss Per Share (RMB Cents) | (1.36) | (0.32) | 325.0 | [Interim Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) [Overview of Financial Position](index=3&type=section&id=Overview%20of%20Financial%20Position) As of June 30, 2025, the company's total assets were **RMB 240,890 thousand**, a slight decrease from December 31, 2024, with net current liabilities expanding to **RMB 47,136 thousand** and net assets at **RMB 88,317 thousand** Financial Position Summary | Metric | June 30, 2025 (Thousand RMB) | December 31, 2024 (Thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 157,746 | 159,489 | -1.1 | | Total Current Assets | 83,144 | 90,434 | -8.0 | | Total Current Liabilities | 130,280 | 123,588 | 5.4 | | Net Current Liabilities | (47,136) | (33,154) | 42.2 | | Total Assets Less Current Liabilities | 110,610 | 126,335 | -12.4 | | Total Non-current Liabilities | 22,293 | 30,817 | -27.7 | | Net Assets | 88,317 | 95,518 | -7.5 | | Total Equity | 88,317 | 95,518 | -7.5 | [Notes to the Interim Condensed Consolidated Financial Information](index=5&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) [1. Basis of Preparation](index=5&type=section&id=1.%20Basis%20of%20Preparation) This interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 and should be read in conjunction with the 2024 annual consolidated financial statements; despite net current liabilities, the Board considers the going concern basis appropriate - The financial information is prepared in accordance with **International Accounting Standard 34** and is consistent with the annual financial statements[6](index=6&type=chunk) - As of June 30, 2025, net current liabilities amounted to **RMB 47,136 thousand**, but the Board considers the going concern assumption reasonable based on unutilized bank facilities and expected operating cash flows[6](index=6&type=chunk) [2. Changes in Accounting Policies and Disclosures](index=5&type=section&id=2.%20Changes%20in%20Accounting%20Policies%20and%20Disclosures) This period saw the initial adoption of revised International Financial Reporting Standards, including amendments to IAS 21 regarding lack of exchangeability, which had no impact on the interim condensed consolidated financial information as the Group's transaction and functional currencies are all exchangeable - Adoption of amendments to **International Accounting Standard 21** concerning the assessment of currency exchangeability[7](index=7&type=chunk)[8](index=8&type=chunk) - The amendments have **no impact** on the interim financial information as all currencies used by the Group are exchangeable[8](index=8&type=chunk) [3. Operating Segment Information](index=6&type=section&id=3.%20Operating%20Segment%20Information) The Group's operating segments include medical aesthetic services, consulting services, and device products; as of June 30, 2025, external customer revenue for medical aesthetic services and device products both decreased, leading to an overall segment loss Segment Revenue for the Six Months Ended June 30, 2025 (Thousand RMB) | Segment | Sales to External Customers | Inter-segment Sales | Total Segment Revenue | | :--- | :--- | :--- | :--- | | Medical Aesthetic Services | 74,937 | – | 74,937 | | Consulting Services | 302 | 985 | 1,287 | | Device Products | 9,359 | 3,785 | 13,144 | | **Total** | **84,598** | **4,770** | **89,368** | Segment Revenue for the Six Months Ended June 30, 2024 (Thousand RMB) | Segment | Sales to External Customers | Inter-segment Sales | Total Segment Revenue | | :--- | :--- | :--- | :--- | | Medical Aesthetic Services | 83,026 | – | 83,026 | | Consulting Services | 29 | – | 29 | | Device Products | 34,420 | 2,205 | 36,625 | | **Total** | **117,475** | **2,205** | **119,680** | Segment Results (Thousand RMB) | Segment | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Medical Aesthetic Services | (1,787) | (2,983) | | Consulting Services | (1,518) | (364) | | Device Products | 3,821 | 14,439 | | **Total Segment Results** | **516** | **11,092** | | Loss Before Income Tax | (8,284) | (2,257) | Segment Assets (Thousand RMB) | Segment | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Medical Aesthetic Services | 65,214 | 80,270 | | Consulting Services | 6,284 | 8,850 | | Device Products | 72,033 | 76,337 | | **Total Assets** | **240,890** | **249,923** | Segment Liabilities (Thousand RMB) | Segment | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Medical Aesthetic Services | 87,247 | 91,427 | | Consulting Services | 934 | 1,026 | | Device Products | 1,475 | 18,723 | | **Total Liabilities** | **152,573** | **154,405** | [4. Revenue, Other Income and Gains](index=9&type=section&id=4.%20Revenue%2C%20Other%20Income%20and%20Gains) For the six months ended June 30, 2025, total revenue was **RMB 84,598 thousand**, a 28.0% year-on-year decrease, with medical aesthetic services revenue down 9.7%, medical aesthetic device product revenue significantly down 72.8%, and consulting services revenue notably up 941.4%; total other income and gains decreased by 86.9% year-on-year, mainly due to reduced fair value gains on contingent consideration Revenue Analysis (Thousand RMB) | Item | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Medical Aesthetic Services | 74,937 | 83,026 | -9.7 | | Medical Aesthetic Device Products | 9,359 | 34,420 | -72.8 | | Consulting Services | 302 | 29 | 941.4 | | **Total** | **84,598** | **117,475** | **-28.0** | Other Income and Gains Analysis (Thousand RMB) | Item | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total Other Income | 809 | 421 | 92.2 | | Total Gains | 493 | 9,529 | -94.8 | | **Total Other Income and Gains** | **1,302** | **9,950** | **-86.9** | - Total other income and gains significantly decreased, primarily due to higher fair value gains on contingent consideration of **RMB 9,039 thousand** in the prior period of 2024, with no such gains in the current period[15](index=15&type=chunk) [5. Loss Before Tax](index=11&type=section&id=5.%20Loss%20Before%20Tax) The Group's loss before tax expanded to **RMB 8,284 thousand**, primarily due to decreased revenue and changes in certain expense structures; while cost of inventories sold, intangible asset amortization, property, plant and equipment depreciation, right-of-use asset depreciation, employee benefit expenses, promotion and marketing expenses, and professional fees all decreased, R&D expenses increased Key Expense Items (Thousand RMB) | Item | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Cost of Supplies Consumed | 32,622 | 36,639 | -11.0 | | Cost of Inventories Sold | 2,955 | 10,311 | -71.3 | | Amortization of Intangible Assets | 1,709 | 3,036 | -43.8 | | Depreciation of Property, Plant and Equipment | 5,506 | 5,848 | -5.9 | | Depreciation of Right-of-Use Assets | 4,604 | 5,468 | -15.8 | | Employee Benefit Expenses (excluding directors' and chief executive's emoluments) | 30,671 | 33,649 | -8.8 | | Promotion and Marketing Expenses | 5,112 | 6,011 | -15.0 | | Professional Fees | 1,766 | 2,005 | -11.9 | | Impairment of Intangible Assets | – | 13,279 | -100.0 | | Fair Value Change of Contingent Consideration | – | (9,039) | -100.0 | [6. Income Tax](index=11&type=section&id=6.%20Income%20Tax) The Group's income tax expense increased from **RMB 740 thousand** in 2024 to **RMB 1,178 thousand** in 2025; mainland China subsidiaries pay income tax at a statutory rate of 25%, with some small and micro enterprises enjoying a preferential rate of 5% - Mainland China subsidiaries are subject to a statutory income tax rate of **25%**[17](index=17&type=chunk) - Certain small and micro enterprises (e.g., Ruian Ruili, Wuhu Ruili) enjoy a preferential tax rate of **5%**[18](index=18&type=chunk) Income Tax Expense (Thousand RMB) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Current Tax | (91) | 4,135 | | Deferred Tax | 1,269 | (3,395) | | **Total Tax Expense for the Period** | **1,178** | **740** | [7. Dividends](index=12&type=section&id=7.%20Dividends) For the period ended June 30, 2025, the Company neither paid nor declared any dividends - The Company neither paid nor declared dividends during the reporting period[20](index=20&type=chunk) [8. Loss Per Share Attributable to Owners of the Parent](index=12&type=section&id=8.%20Loss%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Parent) For the six months ended June 30, 2025, basic and diluted loss per share attributable to owners of the parent was **RMB 1.36 cents**, a significant increase from **RMB 0.32 cents** in the prior period, mainly due to expanded losses and an increased weighted average number of ordinary shares outstanding Loss Per Share Calculation (Thousand RMB) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Loss Attributable to Owners of the Parent | (7,570) | (1,617) | | Weighted Average Number of Ordinary Shares in Issue | 557,077,333 | 508,330,653 | | **Basic and Diluted Loss Per Share (RMB Cents)** | **(1.36)** | **(0.32)** | - Share options have an anti-dilutive effect on basic loss per share and are therefore disregarded in the calculation of diluted loss per share[22](index=22&type=chunk) [9. Property, Plant and Equipment](index=13&type=section&id=9.%20Property%2C%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the Group acquired assets of **RMB 1,423 thousand** and disposed of assets with a net book value of **RMB 354 thousand**, resulting in a net loss on disposal of **RMB 86 thousand**, with no impairment losses recognized in the period Changes in Property, Plant and Equipment (Thousand RMB) | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Cost of Asset Acquisitions | 1,423 | 5,277 | | Net Book Value of Assets Disposed | 354 | 109 | | Net Loss on Disposal | 86 | 109 | | Impairment Loss | – | – | [10. Right-of-Use Assets](index=13&type=section&id=10.%20Right-of-Use%20Assets) For the six months ended June 30, 2025, the Group acquired right-of-use assets of **RMB 21,536 thousand**, primarily involving the purchase of a property from Suzhou Maidi Jinggang Technology Co., Ltd. and the signing of a lease agreement - Right-of-use assets of **RMB 21,536 thousand** were acquired in the current period, with no such acquisitions in the prior period[24](index=24&type=chunk) - This primarily involved the purchase of a property from Suzhou Maidi for a consideration of **RMB 21,437 thousand**, which was approved by shareholders[24](index=24&type=chunk) - A six-month lease agreement, including a right to acquire, was signed with Suzhou Maidi on June 23, 2025, leading to the recognition of right-of-use assets and lease liabilities[24](index=24&type=chunk) [11. Trade Receivables](index=13&type=section&id=11.%20Trade%20Receivables) As of June 30, 2025, total trade receivables were **RMB 716 thousand**, a decrease from **RMB 1,538 thousand** as of December 31, 2024, with changes in the aging structure Aging Analysis of Trade Receivables (Thousand RMB) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 3 months | 485 | 1,537 | | 7 to 12 months | 231 | 1 | | **Total** | **716** | **1,538** | [12. Prepayments, Other Receivables and Other Assets](index=14&type=section&id=12.%20Prepayments%2C%20Other%20Receivables%20and%20Other%20Assets) As of June 30, 2025, total prepayments, other receivables, and other assets amounted to **RMB 52,154 thousand**, a decrease from **RMB 64,141 thousand** as of December 31, 2024, mainly due to reduced refundable earnest money and other receivables Composition of Prepayments, Other Receivables and Other Assets (Thousand RMB) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Prepayments for Inventories and Supplies | 14,579 | 11,532 | | Deposits | 18,280 | 18,482 | | Refundable Earnest Money | 11,500 | 16,000 | | Prepaid Expenses | 1,085 | 1,369 | | Prepayments for Services | 533 | 446 | | Other Receivables | 6,238 | 16,410 | | Impairment Allowance | (61) | (98) | | **Total** | **52,154** | **64,141** | [13. Trade Payables](index=14&type=section&id=13.%20Trade%20Payables) As of June 30, 2025, total trade payables were **RMB 7,703 thousand**, largely consistent with **RMB 7,779 thousand** as of December 31, 2024, with minor changes in the aging structure Aging Analysis of Trade Payables (Thousand RMB) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 90 days | 6,415 | 7,062 | | 91 to 180 days | 798 | 636 | | 181 to 365 days | 459 | 58 | | Over 365 days | 31 | 23 | | **Total** | **7,703** | **7,779** | [14. Other Payables and Accruals](index=15&type=section&id=14.%20Other%20Payables%20and%20Accruals) As of June 30, 2025, total other payables and accruals amounted to **RMB 29,255 thousand**, a decrease from **RMB 39,472 thousand** as of December 31, 2024, mainly due to reduced other payables and tax liabilities Composition of Other Payables and Accruals (Thousand RMB) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Other Payables | 10,872 | 19,803 | | Accrued Salaries | 9,073 | 9,290 | | Advances Received | 5,197 | 4,357 | | Deferred Revenue | 3,500 | 3,500 | | Tax Liabilities (excluding income tax) | 613 | 2,522 | | **Total** | **29,255** | **39,472** | [15. Events After the Reporting Period](index=15&type=section&id=15.%20Events%20After%20the%20Reporting%20Period) Two significant events occurred after the reporting period: Hainan Beilifeier introduced investors, reducing the Company's equity from 100% to 30%, constituting a deemed disposal; Hangzhou Beilifeier ceased medical aesthetic services and terminated contractual arrangements, shifting its strategic focus to medical aesthetic device product sales - Hainan Beilifeier introduced two investors with a capital injection of **RMB 5,005 thousand** and underwent capital reduction, resulting in the Company's equity in Hainan Beilifeier decreasing from **100% to 30%**[29](index=29&type=chunk) - Hangzhou Beilifeier terminated its medical aesthetic services business, cancelled its medical practice license, and dissolved contractual arrangements with Ruili Beauty Consulting and Mr. Fu Haishu, shifting its strategic focus to medical aesthetic device product sales[30](index=30&type=chunk) [Management Discussion and Analysis](index=16&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=16&type=section&id=Business%20Review) As a leading medical aesthetic service provider in China's Yangtze River Delta, the Group's business spans medical aesthetic services, consulting, and device product sales and R&D; during the reporting period, revenue decreased by **28.0%** year-on-year and losses expanded due to market slowdown and intensified competition, with active customer numbers decreasing by **23.7%** but average spending per medical aesthetic service customer increasing by **18.3%** - The Group's business spans the upstream, midstream, and downstream of the medical aesthetic industry, including aesthetic surgery, minimally invasive aesthetic, dermatological aesthetic services, management consulting, and device product sales and R&D[31](index=31&type=chunk) - During the reporting period, China's medical aesthetic market experienced slower growth, intense competition, and diversified consumer demand, leading to a **28.0%** decrease in Group revenue to **RMB 84.6 million** and an expanded loss of **RMB 9.5 million**[31](index=31&type=chunk) Customer Data Comparison | Metric | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Active Medical Aesthetic Customers | 24,200 persons | 31,700 persons | -23.7 | | New Customers | 8,700 persons | 12,100 persons | -28.1 | | Repeat Customers | 15,500 persons | 19,600 persons | -20.9 | | Average Spending Per Medical Aesthetic Service Customer (RMB) | 3,100 | 2,621 | 18.3 | [Development Plan and Strategic Layout](index=16&type=section&id=Development%20Plan%20and%20Strategic%20Layout) To address market challenges, the Group is advancing multiple strategic initiatives, including increasing non-surgical project capacity, optimizing cost and personnel structure, diversifying sales channels, building an advanced medical aesthetic device R&D and manufacturing platform, and expanding brand influence and corporate scale - Increase service capacity for non-surgical projects, introduce the latest medical aesthetic technologies and equipment, and enhance minimally invasive and dermatological aesthetic service capabilities[33](index=33&type=chunk) - Control costs and optimize personnel structure by regularly reviewing expenses, rationally allocating human resources, and establishing training and performance evaluation systems[35](index=35&type=chunk) - Diversify sales channels by utilizing internet platforms, third-party platforms, partners, and industry associations for precise marketing and resource integration[36](index=36&type=chunk) - Establish an advanced medical aesthetic device product R&D and manufacturing platform, with Suzhou Ruiquan dedicated to developing and producing dermal injectable products, expected to commence production in **2028**, and actively applying for Class III medical device registration licenses[37](index=37&type=chunk) - Expand brand influence and corporate scale by enhancing product and service quality, increasing brand exposure, and considering the acquisition of suitable medical aesthetic institutions or pharmaceutical and device operating companies at reasonable costs[38](index=38&type=chunk) [Financial Review](index=19&type=section&id=Financial%20Review) This section provides a detailed review of financial performance during the reporting period, including changes in revenue, cost of sales, gross profit, other income, and various expenses, concluding with the consolidated loss for the period [Revenue](index=19&type=section&id=Revenue) Total revenue for the reporting period was **RMB 84.6 million**, a 28.0% year-on-year decrease; medical aesthetic services revenue declined by 9.7%, primarily due to a decrease in active customers offsetting an increase in average customer spending; medical aesthetic device product sales revenue significantly dropped by 72.8% due to intensified market competition and sales structure adjustments, while medical aesthetic management consulting services revenue grew substantially Revenue by Service Item (Thousand RMB) | Service Item | 2025 | % of Total Revenue | 2024 | % of Total Revenue | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Medical Aesthetic Services | 74,937 | 88.6 | 83,026 | 70.7 | -9.7 | | Aesthetic Surgery Services | 2,741 | 3.2 | 2,586 | 2.2 | 6.0 | | Minimally Invasive Aesthetic Services | 38,404 | 45.4 | 40,134 | 34.2 | -4.3 | | Dermatological Aesthetic Services | 33,110 | 39.2 | 39,772 | 33.9 | -16.8 | | Others | 682 | 0.8 | 534 | 0.4 | 27.7 | | Medical Aesthetic Device Product Sales | 9,359 | 11.1 | 34,420 | 29.3 | -72.8 | | Medical Aesthetic Management Consulting Services | 302 | 0.3 | 29 | 0.0 | 941.4 | | **Total** | **84,598** | **100.0** | **117,475** | **100.0** | **-28.0** | - Medical aesthetic device product sales revenue significantly decreased by **72.8%**, primarily due to intensified market competition and sales structure adjustments[42](index=42&type=chunk) - Minimally invasive aesthetic services revenue decreased by **4.3%**, dermatological aesthetic services revenue decreased by **16.8%**, while aesthetic surgery services revenue increased by **6.0%**[42](index=42&type=chunk) [Cost of Sales](index=20&type=section&id=Cost%20of%20Sales) Cost of sales for the reporting period was approximately **RMB 55.5 million**, a 19.6% year-on-year decrease, primarily due to reduced performance in medical aesthetic services and medical aesthetic device product sales Composition of Cost of Sales (Thousand RMB) | Item | 2025 | % Share | 2024 | % Share | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Cost of Supplies Consumed | 32,622 | 58.8 | 36,639 | 53.1 | -11.0 | | Cost of Inventories Sold | 2,955 | 5.4 | 10,311 | 14.9 | -71.3 | | Staff Costs | 13,485 | 24.3 | 14,638 | 21.2 | -7.9 | | Others | 6,401 | 11.5 | 7,420 | 10.8 | -13.7 | | **Total** | **55,463** | **100.0** | **69,008** | **100.0** | **-19.6** | [Gross Profit](index=21&type=section&id=Gross%20Profit) Gross profit for the reporting period was approximately **RMB 29.1 million**, a 39.9% year-on-year decrease, with gross profit margin falling from **41.3% to 34.4%**, primarily due to declining medical aesthetic device product sales and intensified market competition Gross Profit and Gross Profit Margin Analysis | Service Item | 2025 Gross Profit (Thousand RMB) | 2025 Gross Profit Margin (%) | 2024 Gross Profit (Thousand RMB) | 2024 Gross Profit Margin (%) | Gross Profit Change (%) | Gross Profit Margin Change (Percentage Points) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Medical Aesthetic Services | 22,573 | 30.1 | 24,329 | 29.3 | -7.2 | 0.8 | | Aesthetic Surgery Services | (1,456) | (53.1) | (1,152) | (44.5) | 26.4 | -8.6 | | Minimally Invasive Aesthetic Services | 14,155 | 36.9 | 13,399 | 33.4 | 5.6 | 3.5 | | Dermatological Aesthetic Services | 11,708 | 35.4 | 14,382 | 36.2 | -18.6 | -0.8 | | Others | (1,834) | (268.9) | (2,300) | (430.7) | -20.3 | 161.8 | | Medical Aesthetic Device Product Sales | 6,404 | 68.4 | 24,109 | 70.0 | -73.4 | -1.6 | | Medical Aesthetic Management Consulting Services | 158 | 52.3 | 29 | 100.0 | 444.8 | -47.7 | | **Total** | **29,135** | **34.4** | **48,467** | **41.3** | **-39.9** | **-6.9** | - Gross profit from medical aesthetic device product sales significantly decreased by **73.4%**, primarily due to the proliferation of injectable product categories and intensified market competition[48](index=48&type=chunk) - The overall gross profit margin for medical aesthetic services increased by **0.8 percentage points to 30.1%**, while the gross profit margin for medical aesthetic device product sales decreased by **1.6 percentage points to 68.4%**, mainly due to product mix adjustments[48](index=48&type=chunk) [Other Income and Gains](index=22&type=section&id=Other%20Income%20and%20Gains) Other income and gains for the reporting period were approximately **RMB 1.3 million**, a significant decrease from **RMB 10.0 million** in the prior period, primarily due to reduced fair value gains on contingent consideration - Total other income and gains decreased by approximately **RMB 8.7 million** year-on-year, primarily due to reduced fair value gains on contingent consideration[49](index=49&type=chunk) [Selling and Distribution Expenses](index=22&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses for the reporting period were approximately **RMB 20.1 million**, a year-on-year decrease of **RMB 3.6 million**, mainly due to reduced promotion expenses from online platform adjustments and lower personnel and rent-related costs from Group personnel integration - Selling and distribution expenses decreased by **15.1%**, primarily due to reduced promotion expenses from online platform adjustments and lower personnel and rent-related costs from Group personnel integration[50](index=50&type=chunk) [Administrative Expenses](index=22&type=section&id=Administrative%20Expenses) Administrative expenses for the reporting period were approximately **RMB 15.8 million**, a year-on-year decrease of **RMB 4.4 million**, mainly due to reduced personnel expenses from Group personnel integration and lower intermediary team service costs - Administrative expenses decreased by **21.9%**, primarily due to reduced personnel expenses from Group personnel integration and lower intermediary team service costs[51](index=51&type=chunk) [Other Expenses](index=23&type=section&id=Other%20Expenses) Other expenses for the reporting period were approximately **RMB 0.6 million**, a significant decrease from **RMB 14.7 million** in the prior period, primarily due to reduced asset impairment losses - Other expenses significantly decreased by **96.3%**, primarily due to reduced asset impairment losses[52](index=52&type=chunk) [Finance Costs](index=23&type=section&id=Finance%20Costs) Finance costs for the reporting period were approximately **RMB 1.4 million**, a slight decrease from **RMB 1.6 million** in the prior period, primarily comprising interest on lease liabilities and bank and other borrowings - Finance costs decreased by **11.3%** year-on-year, primarily comprising interest on lease liabilities and bank and other borrowings[53](index=53&type=chunk) [Income Tax Expense](index=23&type=section&id=Income%20Tax%20Expense) Income tax expense for the reporting period was approximately **RMB 1.2 million**, an increase from **RMB 0.7 million** in the prior period - Income tax expense increased by **59.2%** year-on-year to **RMB 1.2 million**[54](index=54&type=chunk) [Total Comprehensive Loss for the Period and Loss Attributable to Owners of the Parent](index=23&type=section&id=Total%20Comprehensive%20Loss%20for%20the%20Period%20and%20Loss%20Attributable%20to%20Owners%20of%20the%20Parent) The Group recorded a loss of approximately **RMB 9.5 million** for the reporting period, with loss attributable to owners of the parent at approximately **RMB 7.6 million**, both significantly expanded compared to the prior period Total Loss (Thousand RMB) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Group's Loss for the Period | (9,462) | (2,997) | | Loss Attributable to Owners of the Parent | (7,570) | (1,617) | [Liquidity and Financial Resources and Capital Structure](index=23&type=section&id=Liquidity%20and%20Financial%20Resources%20and%20Capital%20Structure) As of June 30, 2025, cash and bank balances were approximately **RMB 35.9 million**, with net current liabilities of approximately **RMB 47.1 million**; despite increased net current liabilities, the Board believes the Group has sufficient working capital Liquidity Position (Thousand RMB) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and Bank Balances and Time Deposits | 35,900 | 28,900 | | Net Current Liabilities | (47,100) | (33,200) | | Unutilized Bank Facilities | 7,000 | 13,000 | - The Board believes the Group currently possesses **sufficient working capital** for its operations, considering cash on hand, cash flows from operating activities, and available financing[56](index=56&type=chunk) [Lease Liabilities](index=23&type=section&id=Lease%20Liabilities) As of June 30, 2025, the Group's lease liabilities were approximately **RMB 47.3 million**, an increase from December 31, 2024 Lease Liabilities (Thousand RMB) | Date | Amount | | :--- | :--- | | June 30, 2025 | 47,300 | | December 31, 2024 | 35,600 | [Capital Commitments](index=23&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group had no contracted but unprovided capital commitments - The Group had **no contracted but unprovided capital commitments** at the end of the reporting period[58](index=58&type=chunk) [Capital Expenditure](index=24&type=section&id=Capital%20Expenditure) During the reporting period, the Group's capital expenditure for acquiring equipment and fitting out leased properties was approximately **RMB 1.4 million**, a decrease from **RMB 4.3 million** in the prior period Capital Expenditure (Thousand RMB) | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Equipment and Leasehold Improvements | 1,400 | 4,300 | [Indebtedness](index=24&type=section&id=Indebtedness) As of June 30, 2025, the Group's outstanding interest-bearing bank borrowings were approximately **RMB 20.0 million**, all at fixed rates and repayable within one year; outstanding mortgage loans were approximately **RMB 5.7 million**, with most repayable within one year Indebtedness Position (Thousand RMB) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Outstanding Interest-Bearing Bank Borrowings | 20,000 | 13,000 | | Outstanding Mortgage Loans | 5,700 | 7,800 | - All bank borrowings are at **fixed interest rates** and are repayable within **1 year**[60](index=60&type=chunk)[61](index=61&type=chunk) - Of the mortgage loans, **RMB 4.5 million** is repayable within one year, and **RMB 1.2 million** is repayable within one to two years[62](index=62&type=chunk) [Treasury Policy](index=24&type=section&id=Treasury%20Policy) The Group adopts a prudent treasury policy, mitigating credit risk through continuous credit assessments and closely monitoring its liquidity position to manage liquidity risk - The Group mitigates credit risk through **continuous credit assessments**[63](index=63&type=chunk) - The Board closely monitors the liquidity position to ensure the liquidity structure of assets, liabilities, and commitments meets funding requirements[63](index=63&type=chunk) [Contingent Liabilities and Guarantees](index=24&type=section&id=Contingent%20Liabilities%20and%20Guarantees) As of June 30, 2025, the Group had no significant contingent liabilities and guarantees - The Group had **no significant contingent liabilities and guarantees** at the end of the reporting period[64](index=64&type=chunk) [Pledged Assets](index=24&type=section&id=Pledged%20Assets) As of June 30, 2025, the Group pledged deposits of **RMB 1.5 million** as collateral for lease arrangements - The Group pledged deposits of **RMB 1.5 million** as collateral for lease arrangements[65](index=65&type=chunk) [Gearing Ratio](index=25&type=section&id=Gearing%20Ratio) As of June 30, 2025, the Group's total debt was approximately **RMB 152.6 million**, with a gearing ratio of approximately **172.8%**, an increase from **161.7%** as of December 31, 2024 Gearing Ratio | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Debt (Million RMB) | 152.6 | 154.4 | | Gearing Ratio (%) | 172.8 | 161.7 | [Interest Rate Risk](index=25&type=section&id=Interest%20Rate%20Risk) As all the Group's borrowings are at fixed interest rates, there is no significant interest rate risk - All the Group's borrowings are at **fixed interest rates**, posing no significant interest rate risk[67](index=67&type=chunk) [Foreign Exchange Fluctuation Risk](index=25&type=section&id=Foreign%20Exchange%20Fluctuation%20Risk) The Group faces foreign exchange fluctuation risk for HKD against RMB, but currently has no foreign currency hedging policy; management will closely monitor and take action when necessary - The Group faces **foreign exchange fluctuation risk** for HKD against RMB[68](index=68&type=chunk) - There is currently **no foreign currency hedging policy**, and management will closely monitor and take action when necessary[68](index=68&type=chunk) [Future Plans for Material Investments or Capital Assets](index=25&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) Other than disclosed matters, the Group had no plans for material investments or acquisitions of capital assets at the end of the reporting period; it may continue to focus on medical aesthetic device product sales and consider related investments in the future - The Group had **no plans for material investments or acquisitions of capital assets** at the end of the reporting period[69](index=69&type=chunk) - In the future, the Group may continue to focus on medical aesthetic device product sales and consider further investments in related businesses[69](index=69&type=chunk) [Employees and Remuneration Policy](index=25&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had **289 employees**, with total staff costs of approximately **RMB 31.7 million**, representing **37.5%** of total revenue; the Company offers competitive remuneration, medical education opportunities, and a professional work environment, along with a performance appraisal system and pension scheme Number of Employees | Function | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Management | 7 | 6 | | Doctors and Medical Staff | 115 | 121 | | Sales, Marketing, Customer Service and Other Business Personnel | 124 | 128 | | Finance and Administrative Personnel | 43 | 35 | | **Total** | **289** | **290** | Staff Costs (Million RMB) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Staff Costs | 30.3 | 31.0 | | Share Option Expenses | 1.4 | 3.7 | | **Total Staff Costs** | **31.7** | **34.7** | | % of Total Revenue for the Reporting Period | 37.5 | 29.6 | - The Company offers **competitive remuneration**, medical education, and a professional environment, attracting and retaining talent through performance appraisals, year-end bonuses, and training[72](index=72&type=chunk) [Use of Proceeds](index=26&type=section&id=Use%20of%20Proceeds) The Group's net proceeds from listing were approximately **HKD 81.7 million**, with **HKD 8.4 million** for organic development remaining unutilized; net proceeds from rights issue were approximately **HKD 19.0 million**, with **HKD 7.6 million** for medical aesthetic device product registration and filing remaining unutilized Use of Net Proceeds from Listing (Million HKD) | Purpose | Planned Use | Actual Use | Unutilized | Expected Time for Full Utilization | | :--- | :--- | :--- | :--- | :--- | | Expand Medical Aesthetic Institution Network | 58.0 | 49.6 | 8.4 | December 31, 2025 | | Acquire New Medical Aesthetic Service Equipment and Consumables | 9.0 | 9.0 | – | – | | Actively Promote Brand | 6.5 | 6.5 | – | – | | General Working Capital | 8.2 | 8.2 | – | – | | **Total** | **81.7** | **73.3** | **8.4** | | Use of Net Proceeds from Rights Issue (Million HKD) | Purpose | Planned Use | Actual Use | Unutilized | Expected Time for Full Utilization | | :--- | :--- | :--- | :--- | :--- | | Purchase Equipment and Raw Materials Required to Start Production Process | 9.5 | 9.5 | – | – | | Register and File Medical Aesthetic Device Products with NMPA | 7.6 | – | 7.6 | March 31, 2026 | | General Working Capital | 1.9 | 1.9 | – | – | | **Total** | **19.0** | **11.4** | **7.6** | | [Outlook](index=28&type=section&id=Outlook) China's medical aesthetic industry is rapidly developing with an expanding market size and stricter government regulation, moving towards standardization, professionalization, personalization, and technological advancement; non-invasive treatments and personalized customization are key highlights, and new material approvals will offer richer choices; despite challenges and intense competition, the overall industry trend remains positive - China's medical aesthetic industry is rapidly developing with an expanding market size and increased government regulation, driving the industry towards standardization, professionalization, personalization, and technological advancement[78](index=78&type=chunk) - **Non-invasive treatments** and **personalized customization** have become two core highlights in the medical aesthetic field[78](index=78&type=chunk) - Advances in frontier technologies like biotechnology and nanotechnology have significantly enhanced the safety and efficacy of medical aesthetic materials, with more new materials expected to be approved for market in the future[78](index=78&type=chunk) - Despite industry challenges and competition, the overall development trend remains positive[78](index=78&type=chunk) [Other Information](index=29&type=section&id=Other%20Information) [Purchase, Sale or Redemption of the Company's Listed Securities](index=29&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - Neither the Company nor its subsidiaries engaged in any purchase, sale, or redemption of listed securities during the reporting period[80](index=80&type=chunk) [Interim Dividend](index=29&type=section&id=Interim%20Dividend) The Board resolved not to declare any interim dividend for the reporting period - The Board resolved **not to declare an interim dividend**[81](index=81&type=chunk) [Directors' Securities Transactions](index=29&type=section&id=Directors'%20Securities%20Transactions) The Company has adopted the Model Code set out in Appendix C3 of the Stock Exchange Listing Rules, and all Directors have confirmed their compliance with the Code during the reporting period - The Company has adopted the **Model Code for Securities Transactions by Directors of Listed Issuers**[82](index=82&type=chunk) - All Directors confirmed compliance with the Model Code during the reporting period[82](index=82&type=chunk) [Corporate Governance Practices](index=29&type=section&id=Corporate%20Governance%20Practices) The Company adheres to sound corporate governance principles and has adopted the Corporate Governance Code provisions set out in Appendix C1 of the Listing Rules, complying with all applicable code provisions during the reporting period - The Company adheres to sound corporate governance principles, emphasizing transparency, accountability, and independence[83](index=83&type=chunk) - The Company has adopted and complied with all applicable provisions of the **Corporate Governance Code** set out in Appendix C1 of the Listing Rules[83](index=83&type=chunk)[84](index=84&type=chunk) [Pre-emptive Rights](index=29&type=section&id=Pre-emptive%20Rights) There are no provisions for pre-emptive rights in the Company's articles of association or Cayman Islands law, which do not require new shares to be offered pro-rata to existing shareholders - There are **no pre-emptive rights provisions** in the Company's articles of association or Cayman Islands law[85](index=85&type=chunk) [Audit Committee](index=29&type=section&id=Audit%20Committee) The Audit Committee comprises three independent non-executive directors, responsible for monitoring financial reporting, the audit process, internal controls, and compliance with laws and regulations; the Committee has reviewed and approved the Group's unaudited condensed consolidated financial information and interim report for the reporting period - The Audit Committee comprises three independent non-executive directors: Mr. Liu Teng (Chairman), Mr. Cao Dequan, and Ms. Yang Xiaofen[86](index=86&type=chunk) - The Audit Committee is primarily responsible for monitoring financial reporting, the audit process, internal controls, and compliance with laws and regulations[87](index=87&type=chunk) - The Audit Committee has reviewed and approved the Group's unaudited condensed consolidated financial information and interim report for the reporting period, with no disagreements on accounting treatments[87](index=87&type=chunk) [Material Events During the Reporting Period](index=30&type=section&id=Material%20Events%20During%20the%20Reporting%20Period) On March 7, 2025, Suzhou Ruiquan (an indirect non-wholly owned subsidiary of the Company) entered into an agreement with Suzhou Maidi to acquire a property with a gross floor area of approximately **4,660.22 square meters** for **RMB 21,437,012**, which was approved by shareholders - Suzhou Ruiquan signed an agreement on March 7, 2025, to acquire a property in Suzhou with a gross floor area of approximately **4,660.22 square meters** for **RMB 21,437,012**[88](index=88&type=chunk) - The property acquisition agreement was approved by the Company's shareholders at the **2025 Annual General Meeting**[88](index=88&type=chunk) [Events After the Reporting Period](index=30&type=section&id=Events%20After%20the%20Reporting%20Period) Two significant events occurred after the reporting period: Hainan Beilifeier introduced investors, reducing the Company's equity from 100% to 30%, constituting a deemed disposal; Hangzhou Beilifeier ceased medical aesthetic services and terminated contractual arrangements, shifting its strategic focus to medical aesthetic device product sales - On July 4, 2025, Hainan Beilifeier introduced investors with a capital injection of **RMB 5,005 thousand** and underwent capital reduction, resulting in the Company's interest in Hainan Beilifeier decreasing from **100.00% to 30.00%**, constituting a deemed disposal[89](index=89&type=chunk) - On August 15, 2025, Hangzhou Beilifeier terminated its medical aesthetic services business, cancelled its medical practice license, and shifted its strategic focus to medical aesthetic device product sales, dissolving contractual arrangements with Ruili Beauty Consulting and Mr. Fu Haishu[90](index=90&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=31&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This announcement has been published on the Company's and Stock Exchange's websites; the interim report, containing all information required by the Listing Rules, will be dispatched to shareholders in due course and will be available on the same websites - The interim results announcement has been published on the Company's website (http://www.raily.com) and the Stock Exchange's website (https://www.hkex.com.hk)[92](index=92&type=chunk) - The interim report, containing all information required by the Listing Rules, will be dispatched to shareholders in due course and made available on the same websites[92](index=92&type=chunk) [Board of Directors](index=31&type=section&id=Board%20of%20Directors) As of the date of this announcement, the Board of Directors includes Executive Directors Mr. Fu Haishu, Mr. Song Jianliang, and Mr. Wang Ying, as well as Independent Non-executive Directors Mr. Cao Dequan, Ms. Yang Xiaofen, and Mr. Liu Teng - The Board of Directors comprises three Executive Directors (Mr. Fu Haishu, Mr. Song Jianliang, Mr. Wang Ying) and three Independent Non-executive Directors (Mr. Cao Dequan, Ms. Yang Xiaofen, Mr. Liu Teng)[94](index=94&type=chunk)

截至2025年6月30日止六個月之中期業績公佈 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佈的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈全部或任何 部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 KPM HOLDING LIMITED 吉輝控股有限公 司* （於開曼群島註冊成立的有限公司） （股份代號：8027） 吉輝控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本公司及其 附屬公司截至2025年6月30日止六個月的未經審核業績。本公佈載有本公司2025年 中期報告全文，乃符合香港聯合交易所有限公司GEM證券上市規則有關中期業績 初步公佈附載資料的相關規定。 承董事會命 吉輝控股有限公司 主席 陳添吉 香港，2025年8月29日 於本公佈日期，執行董事為陳添吉先生及林欣慧女士，而獨立非執行董事為劉木 根先生、肖來文先生及陸翹彥先生。 本公佈的資料乃遵照《香港聯合交易所有限公司GEM 證券上市規則》而刊載，旨 在提供有關本公司的資料；各董事願就本公佈的資料共同及個別地承擔全部責任。 各董事在作出一切合理查詢後，確認就其所知及所信，本 ...

[Company Overview](index=4&type=section&id=Company%20Overview) Provides an overview of Kinetix Holdings Limited, including company details, board members, and a summary of its financial performance for the six months ended June 30, 2025 [Company Information](index=4&type=section&id=Company%20Information) This section provides basic registration information, board members, company secretary, registered and principal place of business, auditor, share registrar, stock code, and website for Kinetix Holdings Limited - The company's board members include executive directors Yu Hon Tung (Chairman and CEO), Lo Cheung Moon, Leung Cheong Yu, and independent non-executive directors Lam Shun Ka, Li Xiao Ping, and Tong Chi Kwan[8](index=8&type=chunk) - The company's stock code is **8606**, and its website is www.kinetix.com.hk[9](index=9&type=chunk) [Financial Highlights](index=5&type=section&id=Financial%20Highlights) For the six months ended June 30, 2025, the company achieved growth in total revenue, gross profit, and net profit, with no interim dividend proposed 2025 Interim Financial Highlights (Compared to 2024 Corresponding Period) | Indicator | June 30, 2025 (HK$ thousand) | Corresponding Period 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 215,700 | 181,159 | +19.1% | | Gross Profit | 38,300 | 34,845 | +9.8% | | Net Profit/(Loss) | 3,100 | (600) | Turnaround to profit | | Interim Dividend | Not recommended | Zero | - | [Financial Results](index=6&type=section&id=Financial%20Results) Details the group's financial performance for the six months ended June 30, 2025, including statements of profit or loss, financial position, changes in equity, and cash flows [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=6&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group achieved a net profit of HK$3,085 thousand, reversing a net loss of HK$620 thousand in the prior year, with revenue growing by 19.1% and gross profit by 9.8% Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 215,710 | 181,159 | | Cost of sales | (177,458) | (146,314) | | Gross Profit | 38,252 | 34,845 | | Other income and gains | 474 | 337 | | Selling expenses | (7,457) | (7,007) | | Administrative and general expenses | (26,073) | (27,546) | | Provision for expected credit losses | (1,903) | (1,145) | | Finance costs | (141) | (118) | | Profit/(Loss) before tax | 3,152 | (634) | | Income tax expense/(credit) | (67) | 14 | | Profit/(Loss) for the period | 3,085 | (620) | | Profit/(Loss) attributable to owners of the company | 2,508 | (665) | | Profit/(Loss) attributable to non-controlling interests | 577 | 45 | | Basic and diluted earnings/(loss) per share (HK cents) | 0.17 | (0.05) | - Total comprehensive income for the period was **HK$3,022 thousand**, compared to a total comprehensive loss of HK$711 thousand for the corresponding period in 2024[12](index=12&type=chunk) [Interim Condensed Consolidated Statement of Financial Position](index=8&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets increased to HK$272,447 thousand, a 49.1% growth from December 31, 2024, driven by significant increases in trade and other receivables and cash and cash equivalents Condensed Consolidated Statement of Financial Position (As at June 30, 2025) | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | **Assets** | | | | Non-current assets | 22,262 | 11,322 | | Current assets | 250,185 | 171,404 | | **Total Assets** | **272,447** | **182,726** | | **Equity** | | | | Equity attributable to owners of the company | 77,423 | 74,978 | | Non-controlling interests | (9,920) | (10,497) | | **Total Equity** | **67,503** | **64,481** | | **Liabilities** | | | | Non-current liabilities | 8,026 | 1,124 | | Current liabilities | 196,918 | 117,121 | | **Total Liabilities** | **204,944** | **118,245** | | **Total Equity and Liabilities** | **272,447** | **182,726** | - Current liabilities significantly increased from **HK$117,121 thousand** as of December 31, 2024, to **HK$196,918 thousand** as of June 30, 2025, primarily due to a substantial increase in contract liabilities[14](index=14&type=chunk) [Interim Condensed Consolidated Statement of Changes in Equity](index=10&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, equity attributable to owners of the company increased from HK$74,978 thousand to HK$77,423 thousand, primarily due to profit for the period Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30) | Indicator | January 1, 2025 (HK$ thousand) | Profit for the period (HK$ thousand) | Actuarial loss (HK$ thousand) | Exchange differences (HK$ thousand) | June 30, 2025 (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | | Equity attributable to owners of the company | 74,978 | 2,508 | (34) | (29) | 77,423 | | Non-controlling interests | (10,497) | 577 | – | – | (9,920) | | **Total Equity** | **64,481** | **3,085** | **(34)** | **(29)** | **67,503** | - Total comprehensive income for the interim period of 2025 was **HK$3,022 thousand**, compared to a total comprehensive loss of HK$711 thousand for the corresponding period in 2024[15](index=15&type=chunk) [Interim Condensed Consolidated Statement of Cash Flows](index=11&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operating activities significantly increased, leading to a net increase in cash and cash equivalents of HK$25,701 thousand, with an ending cash balance of HK$56,818 thousand Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Net cash from operating activities | 30,110 | 17,112 | | Net cash used in investing activities | (1,234) | (270) | | Net cash used in financing activities | (3,175) | (1,883) | | Net increase in cash and cash equivalents | 25,701 | 14,959 | | Cash and cash equivalents at beginning of period | 31,188 | 30,323 | | Effect of exchange rate changes | (71) | (64) | | Cash and cash equivalents at end of period | 56,818 | 45,218 | - Net cash from operating activities increased from **HK$17,112 thousand** in the corresponding period of 2024 to **HK$30,110 thousand** in 2025, indicating improved operating efficiency[16](index=16&type=chunk) [Notes to the Interim Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanatory notes to the interim condensed consolidated financial statements, covering general information, accounting policies, segment information, and other financial disclosures [1. General Information](index=12&type=section&id=1.%20General%20Information) The company was incorporated in the Cayman Islands and primarily provides IT infrastructure, development, and maintenance support services - The company was incorporated in the Cayman Islands as an exempted company on **September 16, 2016**[17](index=17&type=chunk) - The Group's principal activities are the provision of information technology ("IT") infrastructure solution services, IT development solution services, and IT maintenance and support services[17](index=17&type=chunk) [2. Basis of Preparation and Presentation](index=12&type=section&id=2.%20Basis%20of%20Preparation%20and%20Presentation) The unaudited interim condensed consolidated financial statements are prepared in accordance with HKAS 34 and GEM Listing Rules, presented in HKD on a historical cost basis, and reviewed by the audit committee - The financial statements are prepared in accordance with **Hong Kong Accounting Standard 34 "Interim Financial Reporting"** issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of the GEM Listing Rules[18](index=18&type=chunk) - The financial statements are presented in **Hong Kong Dollars** and have not been audited by the auditor but have been reviewed by the company's Audit Committee[18](index=18&type=chunk) [3. Adoption of Hong Kong Financial Reporting Standards ("HKFRSs")](index=12&type=section&id=3.%20Adoption%20of%20Hong%20Kong%20Financial%20Reporting%20Standards%20(%22HKFRSs%22)) The adoption of new and revised HKFRSs in the current period did not result in significant changes to accounting policies - The adoption of new and revised HKFRSs did not result in significant changes to the accounting policies applied in the interim condensed consolidated financial statements[19](index=19&type=chunk) [4. Segment Information](index=13&type=section&id=4.%20Segment%20Information) The Group's operating segments include IT infrastructure solutions, IT development solutions, and IT maintenance and support services - The Group's operating segments are solely the provision of **IT infrastructure solution services**, **IT development solution services**, and **IT maintenance and support services**[20](index=20&type=chunk) [Geographical Information](index=13&type=section&id=Geographical%20Information) Provides revenue analysis by customer geographical location, highlighting significant growth in the Singapore market Revenue Analysis by Customer Geographical Location (For the six months ended June 30) | Geographical Market | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Hong Kong | 209,526 | 177,935 | +17.7% | | Macau | 1,281 | 2,691 | -52.4% | | Singapore | 4,903 | 453 | +982.3% | | United Kingdom | – | 80 | -100% | | **Total** | **215,710** | **181,159** | **+19.1%** | - Revenue from the **Singapore market** significantly increased from **HK$453 thousand** in 2024 to **HK$4,903 thousand** in 2025[22](index=22&type=chunk) [Information on Major Customers](index=14&type=section&id=Information%20on%20Major%20Customers) Details revenue contributions from major customers accounting for 10% or more of the Group's total revenue Revenue from Major Customers Accounting for 10% or More of the Group's Revenue (For the six months ended June 30) | Customer | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Customer A | 26,200 | * | | Customer B | * | * | - In the corresponding period of 2024, no single customer accounted for more than **10% of revenue**[25](index=25&type=chunk) [5. Revenue from Contracts with Customers, Other Income and Gains](index=14&type=section&id=5.%20Revenue%20from%20Contracts%20with%20Customers%2C%20Other%20Income%20and%20Gains) The Group's revenue primarily derives from IT solution services, with IT infrastructure solutions contributing the largest and most significant growth [(a) Revenue from Contracts with Customers](index=14&type=section&id=(a)%20Revenue%20from%20Contracts%20with%20Customers) Presents a detailed breakdown of revenue by service category, showing growth in IT infrastructure and maintenance services Revenue Analysis (For the six months ended June 30) | Revenue Category | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | IT infrastructure solution services | 133,905 | 99,076 | +35.2% | | IT development solution services | 55,785 | 59,270 | -5.9% | | IT maintenance and support services | 26,020 | 22,813 | +14.1% | | **Total Revenue** | **215,710** | **181,159** | **+19.1%** | - Revenue recognized over time (**HK$121,313 thousand**) was higher than revenue recognized at a point in time (**HK$94,397 thousand**)[29](index=29&type=chunk)[30](index=30&type=chunk) [(b) Other Income and Gains](index=15&type=section&id=(b)%20Other%20Income%20and%20Gains) Primarily consists of bank interest income for the six months ended June 30, 2025 - Other income and gains primarily refer to **bank interest income** for the six months ended June 30, 2025[31](index=31&type=chunk) [6. Profit/(Loss) Before Tax](index=16&type=section&id=6.%20Profit%2F(Loss)%20Before%20Tax) The Group's profit before tax turned from a loss of HK$634 thousand in 2024 to a profit of HK$3,152 thousand in 2025, influenced by software/hardware costs, IT solution service costs, and expected credit loss provisions Profit/(Loss) Before Tax Components (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Software and hardware costs recognized as expenses | 118,663 | 80,642 | | IT solution service costs | 43,221 | 29,698 | | IT maintenance and support service costs | 15,574 | 17,017 | | Provision for expected credit losses | 1,903 | 1,145 | | Directors' fees, salaries, allowances and other benefits in kind - Directors of the company | 2,139 | 1,708 | | Directors' fees, salaries, allowances and other benefits in kind - Other staff | 23,149 | 25,294 | - Software and hardware costs significantly increased from **HK$80,642 thousand** in 2024 to **HK$118,663 thousand** in 2025[34](index=34&type=chunk) - Provision for expected credit losses increased by approximately **HK$0.8 million**, from HK$1,145 thousand in 2024 to HK$1,903 thousand in 2025[34](index=34&type=chunk) [7. Key Management Personnel Compensation and Directors' Emoluments](index=17&type=section&id=7.%20Key%20Management%20Personnel%20Compensation%20and%20Directors'%20Emoluments) Total compensation paid to key management personnel for the six months ended June 30, 2025, was HK$2,139 thousand, an increase from the prior year Total Compensation Paid to Key Management Personnel (For the six months ended June 30) | Compensation Category | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Directors' fees | 66 | 66 | | Short-term employee benefits | 2,049 | 1,615 | | Post-employment benefits | 24 | 27 | | **Total** | **2,139** | **1,708** | [8. Income Tax Expense/(Credit)](index=17&type=section&id=8.%20Income%20Tax%20Expense%2F(Credit)) Income tax expense for the period was HK$67 thousand, compared to a credit of HK$14 thousand in the prior year, mainly due to increased deferred income tax expense Income Tax Expense/(Credit) (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Hong Kong Profits Tax - Current year | – | (59) | | Hong Kong Profits Tax - Over-provision in prior years | – | 22 | | Deferred income tax | (67) | 51 | | **Total** | **(67)** | **14** | - Hong Kong Profits Tax is calculated at a rate of **8.25%** on the first HK$2 million and **16.5%** on profits exceeding HK$2 million[38](index=38&type=chunk) [9. Dividends](index=18&type=section&id=9.%20Dividends) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025 (June 30, 2024: nil HK$)[39](index=39&type=chunk) [10. Earnings/(Loss) Per Share](index=18&type=section&id=10.%20Earnings%2F(Loss)%20Per%20Share) For the six months ended June 30, 2025, basic earnings per share were HK0.17 cents, compared to a loss per share of HK0.05 cents in the prior year, indicating a return to profitability Basic Earnings/(Loss) Per Share (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit/(Loss) for the period attributable to owners of the company (HK$ thousand) | 2,508 | (665) | | Weighted average number of ordinary shares in issue (thousand shares) | 1,445,850 | 1,445,850 | | **Basic Earnings/(Loss) Per Share (HK cents)** | **0.17** | **(0.05)** | - Diluted earnings/(loss) per share is the same as basic earnings/(loss) per share due to the anti-dilutive effect of potential ordinary shares[41](index=41&type=chunk) [11. Property, Plant and Equipment](index=19&type=section&id=11.%20Property%2C%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the Group acquired approximately HK$733 thousand in property, plant, and equipment and wrote off approximately HK$4 thousand in net book value - The Group acquired items of property, plant and equipment at a cost of approximately **HK$733 thousand**, an increase from HK$193 thousand in the corresponding period of 2024[42](index=42&type=chunk) - Net book value of approximately **HK$4 thousand** was written off, compared to approximately HK$50 thousand in the corresponding period of 2024[42](index=42&type=chunk) [12. Trade and Other Receivables](index=19&type=section&id=12.%20Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables increased to HK$118,798 thousand, primarily driven by a significant increase in trade receivables Trade and Other Receivables (As at June 30, 2025) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade receivables | 76,613 | 40,298 | | Unbilled receivables | 6,672 | 7,014 | | Deposits | 2,638 | 872 | | Prepayments | 29,895 | 21,192 | | Prepayments for life insurance policies | 160 | 160 | | Other receivables | 2,820 | 2,176 | | **Total** | **118,798** | **71,712** | - Total trade receivables (before provision) increased from **HK$55,757 thousand** as of December 31, 2024, to **HK$93,877 thousand** as of June 30, 2025[44](index=44&type=chunk) - Trade receivables aged **0 to 30 days** increased from HK$26,084 thousand as of December 31, 2024, to **HK$67,880 thousand** as of June 30, 2025[45](index=45&type=chunk) [13. Share Capital](index=21&type=section&id=13.%20Share%20Capital) As of June 30, 2025, the company's issued and fully paid share capital was HK$14,459 thousand, comprising 1,445,849,998 shares, consistent with the end of 2024 - The company's authorized ordinary share capital is **10,000,000,000 shares** of HK$0.01 each, totaling HK$100,000 thousand[46](index=46&type=chunk) - The number of issued and fully paid ordinary shares is **1,445,849,998**, with a share capital of HK$14,459 thousand[46](index=46&type=chunk) [14. Trade and Other Payables](index=21&type=section&id=14.%20Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables increased to HK$111,348 thousand, primarily driven by an increase in accrued purchases and service costs Trade and Other Payables (As at June 30, 2025) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade payables | 37,906 | 33,407 | | Accrued purchases and service costs | 60,886 | 53,482 | | Amounts due to directors of subsidiaries | 5,168 | 7,156 | | Other payables and accrued charges | 7,388 | 4,900 | | **Total** | **111,348** | **98,945** | - Trade payables aged **0 to 30 days** increased from HK$22,682 thousand as of December 31, 2024, to **HK$36,033 thousand** as of June 30, 2025[48](index=48&type=chunk) [15. Related Party Transactions](index=22&type=section&id=15.%20Related%20Party%20Transactions) For the six months ended June 30, 2025, the Group did not engage in any related party transactions - For the six months ended June 30, 2025, and June 30, 2024, there were **no transactions with related parties**[49](index=49&type=chunk) [16. Bank Borrowings](index=22&type=section&id=16.%20Bank%20Borrowings) As of June 30, 2025, the Group had no bank borrowings, compared to HK$262 thousand in secured bank borrowings as of December 31, 2024 Bank Borrowings (As at June 30, 2025) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Secured bank borrowings | – | 262 | - Bank borrowings were secured by assignment deeds of life insurance policies purchased for the company's directors and a corporate guarantee of **HK$31,000,000** provided by the company[51](index=51&type=chunk) [Management Discussion and Analysis](index=23&type=section&id=Management%20Discussion%20and%20Analysis) Provides an in-depth review of the Group's business and financial performance, liquidity, capital structure, and future outlook for the period [Business Review and Outlook](index=23&type=section&id=Business%20Review%20and%20Outlook) The Group achieved a turnaround to profit in the first half of 2025, driven by increased gross profit and reduced administrative expenses, partially offset by higher expected credit loss provisions and selling expenses - The Group recorded a profit of approximately **HK$3.1 million** in the first half of 2025, compared to a net loss of approximately HK$0.6 million in the first half of 2024, successfully turning losses into profits[53](index=53&type=chunk) - The turnaround was primarily due to an increase in gross profit of approximately **HK$3.4 million** (from IT infrastructure solution services and IT maintenance and support services) and a decrease in administrative and general expenses of approximately **HK$1.5 million**[53](index=53&type=chunk) - This growth was partially offset by an increase in provision for expected credit losses of approximately **HK$0.8 million** and an increase in selling expenses of approximately **HK$0.5 million**[53](index=53&type=chunk) [Provision of IT Development Solution Services](index=23&type=section&id=Provision%20of%20IT%20Development%20Solution%20Services) Reviews the revenue performance of IT development solution services, noting a slight decrease due to project revenue recognition pace IT Development Solution Services Revenue (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 55,800 | 59,300 | -5.9% | | Percentage of total revenue | 25.9% | - | - | - The decrease in revenue was mainly due to a slightly slower pace of project revenue recognition in the first half of 2025[54](index=54&type=chunk) [Provision of IT Infrastructure Solution Services](index=23&type=section&id=Provision%20of%20IT%20Infrastructure%20Solution%20Services) Examines the revenue growth in IT infrastructure solution services, attributed to an increase in projects and contract values IT Infrastructure Solution Services Revenue (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 133,900 | 99,100 | +35.2% | | Percentage of total revenue | 62.1% | - | - | - The increase in revenue was mainly due to an increase in the total number of projects obtained and an increase in the total contract value of IT infrastructure solution service projects in the first half of 2025[55](index=55&type=chunk) [Provision of IT Maintenance and Support Services](index=24&type=section&id=Provision%20of%20IT%20Maintenance%20and%20Support%20Services) Discusses the revenue increase in IT maintenance and support services, primarily due to higher average contract values IT Maintenance and Support Services Revenue (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 26,000 | 22,800 | +14.1% | | Percentage of total revenue | 12.0% | - | - | - The increase in revenue was mainly due to an increase in the average contract value of IT maintenance and support services in the first half of 2025[56](index=56&type=chunk) [Prospects and Outlook](index=24&type=section&id=Prospects%20and%20Outlook) Addresses the uncertain macroeconomic environment and outlines the Group's strategies for cost management, risk mitigation, and expansion into emerging IT areas - The macroeconomic environment remains uncertain, with persistent inflation, high interest rates, and geopolitical tensions continuing to affect consumer and business confidence[57](index=57&type=chunk) - The Group will continue to manage costs and allocate resources prudently and flexibly, strengthen its risk management framework, and enhance its core competitiveness and expand its value-added IT solution product portfolio[57](index=57&type=chunk) - The aim is to seize opportunities in emerging areas such as cloud integration, AI-driven analytics, and enterprise automation to improve service quality and diversify revenue streams[57](index=57&type=chunk) [Financial Review](index=24&type=section&id=Financial%20Review) Reviews the Group's financial performance for the first half of 2025, including revenue, gross profit, operating expenses, and the shift from loss to profit [Revenue](index=24&type=section&id=Revenue) Provides a detailed breakdown of the Group's revenue performance by service segment for the period Revenue Review (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 215,700 | 181,200 | +19.1% | | Increase in IT infrastructure solution services revenue | 34,800 | - | - | | Increase in IT maintenance and support services revenue | 3,200 | - | - | | Decrease in IT development solution services revenue | (3,500) | - | - | [Gross Profit and Gross Margin](index=25&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Analyzes the Group's gross profit and gross margin, noting a slight decrease in margin due to lower-margin IT development solution services Gross Profit and Gross Margin Review (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 38,300 | 34,800 | +9.8% | | Gross Margin | 17.7% | 19.2% | -1.5% | - The decrease in gross margin was mainly due to a reduction in the gross margin of certain IT development solution services with relatively lower gross margins in the first half of 2025[59](index=59&type=chunk) [Selling Expenses](index=25&type=section&id=Selling%20Expenses) Reviews the changes in selling expenses, primarily driven by increases in sales personnel salaries and commissions Selling Expenses Review (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Selling expenses | 7,500 | 7,000 | +6.4% | | Increase in sales staff salary expenses | 300 | - | - | | Increase in sales commissions | 200 | - | - | [Administrative and General Expenses](index=25&type=section&id=Administrative%20and%20General%20Expenses) Examines the changes in administrative and general expenses, influenced by reduced salary expenses and increased depreciation of right-of-use assets Administrative and General Expenses Review (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Administrative and general expenses | 26,100 | 27,600 | -5.3% | | Decrease in salary expenses | 2,200 | - | - | | Increase in depreciation expense of right-of-use assets | 500 | - | - | [Loss and Total Comprehensive Loss for the Period](index=25&type=section&id=Loss%20and%20Total%20Comprehensive%20Loss%20for%20the%20Period) Highlights the Group's turnaround from a net loss to a net profit and total comprehensive income for the period - The Group recorded a profit of approximately **HK$3.1 million** in the first half of 2025, compared to a loss of approximately HK$0.6 million in the first half of 2024[62](index=62&type=chunk) - Total comprehensive income for the first half of 2025 was approximately **HK$3.0 million**, compared to a total comprehensive loss of approximately HK$0.7 million in the first half of 2024[62](index=62&type=chunk) [Liquidity and Financial Resources](index=26&type=section&id=Liquidity%20and%20Financial%20Resources) The Group's liquidity position is good, with a significant increase in cash and cash equivalents and no bank borrowings, though the gearing ratio has risen Liquidity Position (As at June 30, 2025) | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Cash and cash equivalents | 56,800 | 31,200 | | Bank borrowings | – | 300 | | Gearing ratio | 24.2% | 11.1% | - The Group has a credit facility of **HK$10 million** from The Bank of East Asia, secured by assignment deeds of directors' life insurance policies and a corporate guarantee of HK$31 million[63](index=63&type=chunk) [Capital Structure](index=26&type=section&id=Capital%20Structure) Describes the company's capital structure, comprising issued share capital, reserves, and bank borrowings (currently zero) - The company's capital structure comprises **issued share capital and reserves** as well as bank borrowings[65](index=65&type=chunk) [Material Investments](index=26&type=section&id=Material%20Investments) Confirms that the Group held no material equity investments in other companies during the first half of 2025 - In the first half of 2025, the Group did not hold any **material investments** in the equity of any other companies[66](index=66&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=26&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) States that the Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures during the first half of 2025 - In the first half of 2025, the Group did not undertake any **material acquisitions and disposals** of subsidiaries, associates, and joint ventures[67](index=67&type=chunk) [Employees and Remuneration Policy](index=26&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 148 employees with total staff costs of approximately HK$47.7 million, and its remuneration policy is regularly reviewed by the Remuneration Committee Employees and Remuneration (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Total number of employees | 148 | 166 | | Total staff costs (HK$ thousand) | 47,700 | 46,300 | - The remuneration policy is regularly reviewed with reference to the legal framework, market conditions, and the performance of the Group and individual employees, with executive directors' and senior management's remuneration reviewed by the Remuneration Committee[68](index=68&type=chunk) [Share Option Scheme](index=27&type=section&id=Share%20Option%20Scheme) The company's share option scheme was adopted on June 22, 2018, with 68,427,536 unexercised share options representing approximately 4.73% of issued shares as of June 30, 2025 - The share option scheme was adopted on **June 22, 2018**[69](index=69&type=chunk) Details of Unexercised Share Options (As at June 30, 2025) | Category of Participant | Number of Share Options | Exercise Price (HK$) | | :--- | :--- | :--- | | Executive Directors (Yu Hon Tung, Lo Cheung Moon, Leung Cheong Yu) | 2,459,276 | 0.152 - 0.154 | | Chief Executive (Lam Tai Wai) | 9,878,261 | 0.152 | | Other Employees | 56,089,999 | 0.152 - 0.154 | | **Total** | **68,427,536** | - | - The number of unexercised share options represents approximately **4.73%** of the company's issued shares as of June 30, 2025[71](index=71&type=chunk) [Future Plans for Material Investments or Capital Assets](index=28&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) Except as disclosed in the rights issue prospectus, the Group had no other material investment or capital asset plans as of June 30, 2025 - Except as disclosed in the rights issue prospectus, there were **no other material investments or capital asset plans** as of June 30, 2025[72](index=72&type=chunk) [Pledge of Group Assets](index=28&type=section&id=Pledge%20of%20Group%20Assets) As of June 30, 2025, the Group's bank facilities were secured by assignment deeds of life insurance policies for directors and a corporate guarantee of HK$31 million - Bank facilities were secured by assignment deeds of life insurance policies purchased for the company's directors and a corporate guarantee of **HK$31 million** (plus interest and other charges) provided by the company[73](index=73&type=chunk) [Exposure to Exchange Rate Fluctuations](index=28&type=section&id=Exposure%20to%20Exchange%20Rate%20Fluctuations) The Group operates primarily in Hong Kong, Singapore, and China, facing foreign currency risks from HKD, SGD, and RMB denominated financial instruments, but management has not adopted hedging strategies - The Group primarily operates in **Hong Kong, Singapore, and China**, with most transactions denominated and settled in HKD, SGD, and RMB[74](index=74&type=chunk) - The Group's foreign currency risk primarily arises from **trade receivables, cash and cash equivalents, trade payables, and bank borrowings**[74](index=74&type=chunk) - In the first half of 2025 and 2024, the Group did not adopt any hedging strategies, but management continues to monitor exchange rate risks on a case-by-case basis[74](index=74&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=28&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the first half of 2025 - In the first half of 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[75](index=75&type=chunk) [Contingent Liabilities](index=28&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no material contingent liabilities and was not aware of any pending or potential material legal proceedings - As of June 30, 2025, the Group had **no material contingent liabilities** and was not aware of any pending or potential material legal proceedings involving the Group[76](index=76&type=chunk) [Use of Proceeds](index=34&type=section&id=Use%20of%20Proceeds) Of the HK$29.9 million net proceeds from the rights issue, HK$18 million has been utilized for China technology development solution services and working capital, with delays in the new energy vehicle industry development plan, and the remaining funds are expected to be fully utilized by December 31, 2025 Use of Proceeds from Rights Issue (As at June 30, 2025) | Purpose | Expected Use per Rights Issue Prospectus (HK$ million) | Actual Use as at June 30, 2025 (HK$ million) | Balance (HK$ million) | Expected Timeline for Remaining Net Proceeds | | :--- | :--- | :--- | :--- | :--- | | Development and cultivation of new energy vehicle industry | 11.9 | – | 11.9 | December 31, 2025 | | Expansion of technology development solution services in China | 8.0 | 8.0 | – | Fully utilized | | Working capital and other general corporate purposes | 10.0 | 10.0 | – | Fully utilized | | **Total** | **29.9** | **18.0** | **11.9** | - | - The use of proceeds for the development and cultivation of the new energy vehicle industry has been delayed, primarily due to unfavorable external economic conditions in China, insufficient demand for new energy vehicles, high inflation and interest rate environment, changes in promotional policies, and intensified market competition[91](index=91&type=chunk)[92](index=92&type=chunk) - The remaining net proceeds are expected to be **fully utilized by December 31, 2025**[92](index=92&type=chunk) [Other Information](index=29&type=section&id=Other%20Information) Provides additional disclosures including directors' and major shareholders' interests, corporate governance practices, audit committee review, and post-reporting period events [Directors' and Chief Executive's Interests](index=29&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests) As of June 30, 2025, directors and the chief executive held interests in the company's shares, with Chairman Mr. Yu Hon Tung holding 31.80% through a controlled corporation Directors' and Chief Executive's Interests in the Company's Shares (As at June 30, 2025) | Director/Chief Executive | Nature of Interest | Number and Class of Securities | Approximate Percentage | | :--- | :--- | :--- | :--- | | Mr. Yu Hon Tung | Interest in controlled corporation | 459,810,000 ordinary shares (L) | 31.80% | | Mr. Yu Hon Tung | Beneficial owner (share options) | 987,826 ordinary shares (L) | 0.07% | | Mr. Lo Cheung Moon | Beneficial owner (share options) | 735,725 ordinary shares (L) | 0.05% | | Mr. Leung Cheong Yu | Beneficial owner (share options) | 735,725 ordinary shares (L) | 0.05% | | Mr. Lam Tai Wai | Beneficial owner (share options) | 9,878,261 ordinary shares (L) | 0.68% | - Mr. Yu Hon Tung holds approximately **31.80%** of the company's shares through Vigorous King Limited, which he wholly owns[79](index=79&type=chunk) [Substantial Shareholders' Interests](index=31&type=section&id=Substantial%20Shareholders'%20Interests) As of June 30, 2025, Vigorous King Limited was the largest shareholder with 31.80% of the company's shares, alongside other major shareholders including Ms. Tong Po Kei, Ms. Yiu Wai Kei, Mr. Leung Wan Hung, and Mr. Lam Sze Chun Substantial Shareholders' Interests in the Company's Shares (As at June 30, 2025) | Shareholder | Capacity/Nature of Interest | Number and Class of Securities | Approximate Percentage | | :--- | :--- | :--- | :--- | | Vigorous King Limited | Beneficial owner | 459,810,000 ordinary shares (L) | 31.80% | | Ms. Tong Po Kei | Spouse's interest | 460,797,826 ordinary shares (L) | 31.87% | | Ms. Yiu Wai Kei | Beneficial owner | 73,400,000 ordinary shares (L) | 5.08% | | Mr. Leung Wan Hung | Spouse's interest | 73,400,000 ordinary shares (L) | 5.08% | | Mr. Lam Sze Chun | Beneficial owner | 134,350,000 ordinary shares (L) | 9.29% | | Golden Prosperity Hong Kong Investment Limited | Beneficial owner | 50,000,000 ordinary shares (L) | 3.46% | | Rich Creation Hong Kong Investment Limited | Beneficial owner | 50,000,000 ordinary shares (L) | 3.46% | - Ms. Tong Po Kei is deemed to hold Mr. Yu Hon Tung's interests due to her spousal relationship, totaling **31.87%**[86](index=86&type=chunk) - Mr. Lam Sze Chun indirectly holds shares through Golden Prosperity Hong Kong Investment Limited and Rich Creation Hong Kong Investment Limited[86](index=86&type=chunk) [Required Standard of Securities Transactions by Directors](index=32&type=section&id=Required%20Standard%20of%20Securities%20Transactions%20by%20Directors) The company has adopted a code of conduct for directors' securities transactions and confirmed full compliance during the reporting period - The company has adopted a **code of conduct for directors' securities transactions** with terms no less stringent than Rules 5.48 to 5.67 of the GEM Listing Rules[85](index=85&type=chunk) - The directors confirm full compliance with the standards set out in the code of conduct throughout the entire accounting period covered by the report[85](index=85&type=chunk) [Corporate Governance Practices](index=33&type=section&id=Corporate%20Governance%20Practices) The company has adopted the Corporate Governance Code but has deviations regarding the combined roles of Chairman and CEO and director legal action insurance, which the Board deems to be in the company's best interests and with manageable risks - The company has adopted the **Corporate Governance Code** as set out in Appendix C1 to the GEM Listing Rules and believes it has complied throughout the first half of 2025, with some deviations[87](index=87&type=chunk) - A deviation exists where the roles of Chairman and Chief Executive are combined and held by Mr. Yu Hon Tung, which the Board believes is in the best interests of the Group to ensure efficient management and business development[87](index=87&type=chunk) - Another deviation is the current lack of insurance arrangements for legal actions against directors, which the Board believes carries a low and manageable risk of directors being sued[88](index=88&type=chunk) [Interests in Competing Business](index=33&type=section&id=Interests%20in%20Competing%20Business) During the first half of 2025, directors were unaware of any business or interest that competes or may compete with the Group's business held by directors, controlling shareholders, or their close associates - In the first half of 2025, the directors were unaware of any business or interest that competes or may compete with the Group's business held by directors, the company's controlling shareholders, and their respective close associates[89](index=89&type=chunk) [Audit Committee](index=35&type=section&id=Audit%20Committee) The Audit Committee has reviewed the Group's accounting principles, internal controls, and financial statements, concluding that the statements are prepared in accordance with applicable standards and provide adequate disclosures - The Audit Committee was established on **June 22, 2018**, with primary responsibilities including making recommendations on the appointment of external auditors, reviewing financial statements, and overseeing internal control procedures[93](index=93&type=chunk) - The Audit Committee has reviewed the accounting principles and practices adopted by the Group with management and has reviewed the unaudited financial statements for the six months ended June 30, 2025[93](index=93&type=chunk) [Dividends](index=36&type=section&id=Dividends) The Board of Directors has resolved not to declare a dividend for the six months ended June 30, 2025 - The Board of Directors has resolved **not to declare a dividend** for the six months ended June 30, 2025[94](index=94&type=chunk) [Disclosure of Information](index=36&type=section&id=Disclosure%20of%20Information) This report will be published on the HKEXnews website and the company's website and promptly dispatched to shareholders - This report will be published on the **HKEXnews website** (http://www.hkexnews.hk) and the **company's website** (http://www.kinetix.com.hk) and promptly dispatched to shareholders[95](index=95&type=chunk) [Events After the Reporting Period](index=36&type=section&id=Events%20After%20the%20Reporting%20Period) Except as otherwise disclosed in this report, there were no significant events after the reporting period for the first half of 2025 - Except as otherwise disclosed in other parts of this report, there were **no significant events** after the reporting period for the first half of 2025[96](index=96&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之任何損失承擔任何責任。 APEX ACE HOLDING LIMITED 光 麗 科 技 控 股 有 限 公 司* * 僅供識別 1 • 二零二五年上半年的收益約為2,197.9百萬港元，較二零二四年上半年增加 37.9%。 • 二零二五年上半年的毛利約為111.5百萬港元，較二零二四年上半年增加 18.1%。 • 二零二五年上半年的本公司擁有人應佔純利約為10.7百萬港元，較二零二四 年上半年增加287.2%。 • 二零二五年上半年的每股基本盈利為1.01港仙（二零二四年上半年：每股基本 盈利：0.26港仙）。 簡明綜合損益及其他全面收益表 截至二零二五年六月三十日止六個月 （股份代號：6036） （於開曼群島註冊成立之有限公司） 截至二零二五年六月三十日止六個月之 未經審核中期業績公告 業績摘要 中期業績 光麗科技控股有限公司董事會（分別稱為「本公司」、「董事」及「董事會」）謹此宣佈本 公司及其附屬公司（統稱「本集團」）截 ...

[Company Information and Declarations](index=1&type=section&id=I.%20Company%20Information%20and%20Declarations) [Company Overview and Board Statement](index=1&type=section&id=1.1%20Company%20Overview%20and%20Board%20Statement) First Credit Finance Group Limited announced its unaudited interim results for the six months ended June 30, 2025, with the Board assuming full responsibility for the accuracy and completeness of the announcement - The company announced its unaudited results for the six months ended June 30, 2025[3](index=3&type=chunk) - Board members include Executive Directors Ms. Lai Sze Yu and Mr. Tang Sik Chung, and Independent Non-executive Directors Mr. Wong Kin Ning and Mr. Wong Shui Yeung[4](index=4&type=chunk) - The Board collectively and individually assumes full responsibility for the information in this announcement, confirming its accuracy, completeness, and absence of misleading or fraudulent content[4](index=4&type=chunk) [GEM Listing Characteristics and Risk Warnings](index=2&type=section&id=1.2%20GEM%20Listing%20Characteristics%20and%20Risk%20Warnings) The GEM market, designed for SMEs, carries higher investment risks, with securities potentially experiencing significant market volatility and no guarantee of high liquidity - The GEM market is positioned for small and medium-sized companies, entailing **higher investment risks**[5](index=5&type=chunk)[9](index=9&type=chunk) - GEM securities may be subject to **significant market volatility** and do not guarantee high liquidity[6](index=6&type=chunk)[9](index=9&type=chunk) - Hong Kong Exchanges and Clearing Limited and the Stock Exchange take no responsibility for the contents of this report, make no representation as to its accuracy or completeness, and expressly disclaim any liability whatsoever[7](index=7&type=chunk)[9](index=9&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=3&type=section&id=II.%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=2.1%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's revenue slightly increased, but a significant reduction in administrative expenses and impairment losses on loans receivable led to a substantial narrowing of the loss for the period Summary of Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | June 30, 2025 (HKD) | June 30, 2024 (HKD) | | :--- | :--- | :--- | | Revenue | 974,512 | 912,469 | | Other income | 67 | 3,518 | | Other losses | (226) | (166,813) | | Administrative expenses | (1,827,187) | (2,619,878) | | Net impairment losses on loans receivable | (1,617,850) | (37,512,734) | | Operating loss | (2,470,684) | (41,751,941) | | Loss before tax | (2,496,685) | (41,804,195) | | Loss for the period attributable to owners of the Company | (2,496,685) | (41,804,195) | | Basic loss per share (HK cents) | (0.07) | (1.15) | - Loss for the period significantly decreased from **HKD 41,804,195** in 2024 to **HKD 2,496,685** in 2025, primarily due to a substantial reduction in impairment losses on loans receivable[10](index=10&type=chunk) - Basic loss per share decreased from **1.15 HK cents** in 2024 to **0.07 HK cents** in 2025[10](index=10&type=chunk) [Consolidated Statement of Financial Position](index=4&type=section&id=2.2%20Consolidated%20Statement%20of%20Financial%20Position) As at June 30, 2025, the company's total assets and net assets both decreased, with net current assets and the current ratio also declining, mainly due to a reduction in loans receivable Summary of Consolidated Statement of Financial Position | Metric | June 30, 2025 (HKD) | December 31, 2024 (HKD) | | :--- | :--- | :--- | | Total non-current assets | 23,527,606 | 23,649,373 | | Total current assets | 14,390,354 | 16,707,585 | | Total current liabilities | 1,415,591 | 1,257,904 | | Net current assets | 12,974,763 | 15,449,681 | | Net assets | 36,502,369 | 39,099,054 | | Total equity | 36,502,369 | 39,099,054 | - Net current assets decreased from **HKD 15,449,681** as at December 31, 2024, to **HKD 12,974,763** as at June 30, 2025[13](index=13&type=chunk) - Loans receivable decreased from **HKD 12,293,518** as at December 31, 2024, to **HKD 11,620,910** as at June 30, 2025[13](index=13&type=chunk) [Consolidated Statement of Changes in Equity](index=5&type=section&id=2.3%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, the company's total equity decreased due to the comprehensive loss for the period, while share capital remained unchanged Summary of Consolidated Statement of Changes in Equity | Metric | June 30, 2025 (HKD) | January 1, 2024 (HKD) | | :--- | :--- | :--- | | Share capital | 72,576,000 | 72,576,000 | | Share premium | 356,661,862 | 356,661,862 | | Capital reserve | 141,829,615 | 141,829,615 | | Contributed surplus | 213,460,470 | 213,460,470 | | Reserve for financial assets at fair value through other comprehensive income | 18,000 | (530,000) | | Accumulated losses | (748,043,578) | (659,556,370) | | Total equity | 36,502,369 | 124,441,577 | - As at June 30, 2025, total equity was **HKD 36,502,369**, a decrease from **HKD 39,099,054** as at January 1, 2025, primarily due to a comprehensive loss of **HKD 2,596,685** for the period[15](index=15&type=chunk) - Share capital remained unchanged at **HKD 72,576,000** during the reporting period[15](index=15&type=chunk) [Consolidated Statement of Cash Flows](index=6&type=section&id=2.4%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash used in operating activities decreased, with zero cash flow from investing and financing activities, leading to a narrower net decrease in cash and cash equivalents Summary of Consolidated Statement of Cash Flows | Metric | June 30, 2025 (HKD) | June 30, 2024 (HKD) | | :--- | :--- | :--- | | Net cash used in operating activities | (1,442,900) | (3,495,247) | | Net cash from investing activities | – | 1,368,601 | | Net cash used in financing activities | – | (122,402) | | Net decrease in cash and cash equivalents | (1,442,900) | (2,249,048) | | Cash and cash equivalents at end of period | 988,395 | 1,491,092 | - Net cash used in operating activities decreased from **HKD 3,495,247** in the same period of 2024 to **HKD 1,442,900** in the same period of 2025[18](index=18&type=chunk) - Net cash from investing and financing activities was **zero** in the first half of 2025, compared to net cash inflow from investing activities and net cash outflow from financing activities in the same period of 2024[18](index=18&type=chunk) - Cash and cash equivalents at the end of the period amounted to **HKD 988,395**, a decrease from **HKD 2,431,295** at the beginning of the period[18](index=18&type=chunk) [Notes to the Financial Statements](index=7&type=section&id=III.%20Notes%20to%20the%20Financial%20Statements) [Basis of Preparation and Adoption of Accounting Standards](index=7&type=section&id=3.1%20Basis%20of%20Preparation%20and%20Adoption%20of%20Accounting%20Standards) These interim financial statements are prepared in accordance with HKAS 34 and GEM Listing Rules, with consistent accounting policies, and the first-time application of HKAS 21 amendments had no significant impact - The financial statements are prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' and the GEM Listing Rules[20](index=20&type=chunk)[24](index=24&type=chunk) - Accounting policies are consistent with those used in the annual financial statements for the year ended December 31, 2024[21](index=21&type=chunk)[24](index=24&type=chunk) - The amendments to HKAS 21 'Lack of Exchangeability' were first applied, but had **no significant impact** on the Group's financial performance[23](index=23&type=chunk)[25](index=25&type=chunk) - As at the date of approval of the financial statements, the company's shares remain suspended from trading[22](index=22&type=chunk)[24](index=24&type=chunk) [Fair Value Measurement](index=8&type=section&id=3.2%20Fair%20Value%20Measurement) The carrying amounts of the Group's financial assets and liabilities approximate their fair values, with fair value measurements using a three-level hierarchy and transfers recognized on the date of event or circumstance changes - The carrying amounts of the Group's financial assets and financial liabilities approximate their respective fair values[28](index=28&type=chunk)[34](index=34&type=chunk) - Fair value measurements adopt a **three-level hierarchy**: Level 1 (quoted prices in active markets), Level 2 (observable inputs), and Level 3 (unobservable inputs)[29](index=29&type=chunk)[32](index=32&type=chunk) - The Group's policy is to recognize any transfers between the three levels on the date of the event or change in circumstances that caused the transfer[29](index=29&type=chunk)[32](index=32&type=chunk) [Segment Information](index=8&type=section&id=3.3%20Segment%20Information) All of the Group's revenue is derived from credit financing business in Hong Kong, primarily interest income from loans to customers, with no segment analysis presented due to integrated resources and no dispersed financial data - All of the Group's revenue is derived from credit financing business provided and arranged in Hong Kong[30](index=30&type=chunk)[33](index=33&type=chunk) - Revenue refers to interest income from loans provided by the Group to customers[30](index=30&type=chunk)[33](index=33&type=chunk) - No segment analysis or product and service information is presented due to the Group's integrated resources and lack of dispersed financial data[30](index=30&type=chunk)[33](index=33&type=chunk) [Revenue](index=9&type=section&id=3.4%20Revenue) For the six months ended June 30, 2025, the Group's revenue primarily consisted of interest income from loan financing, showing an increase compared to the same period last year Sources of Revenue | Source of Revenue | June 30, 2025 (HKD) | June 30, 2024 (HKD) | | :--- | :--- | :--- | | Interest income from loan financing | 974,512 | 912,469 | - Interest income from impaired loans receivable was **nil** in both reporting periods[37](index=37&type=chunk) [Other Income and Losses](index=9&type=section&id=3.5%20Other%20Income%20and%20Losses) For the six months ended June 30, 2025, the Group's other income significantly decreased, while other losses also narrowed substantially, mainly due to reduced fair value losses on financial assets at fair value through profit or loss Other Income | Item | June 30, 2025 (HKD) | June 30, 2024 (HKD) | | :--- | :--- | :--- | | Bank interest income | 67 | 3,518 | Other Losses | Item | June 30, 2025 (HKD) | June 30, 2024 (HKD) | | :--- | :--- | :--- | | Realized gains on financial assets at fair value through profit or loss | – | 44,174 | | Fair value losses on financial assets at fair value through profit or loss | (226) | (210,987) | | **Total** | **(226)** | **(166,813)** | - Other losses significantly decreased from **HKD 166,813** in the same period of 2024 to **HKD 226** in the same period of 2025, primarily due to reduced fair value losses on financial assets at fair value through profit or loss[40](index=40&type=chunk) [Finance Costs](index=10&type=section&id=3.6%20Finance%20Costs) For the six months ended June 30, 2025, the Group's finance costs, primarily interest on bonds payable and lease liabilities, decreased compared to the same period last year Composition of Finance Costs | Item | June 30, 2025 (HKD) | June 30, 2024 (HKD) | | :--- | :--- | :--- | | Interest on bonds payable | 21,790 | 42,384 | | Interest on lease liabilities | 4,211 | 9,870 | | **Total** | **26,001** | **52,254** | - Total finance costs decreased from **HKD 52,254** in the same period of 2024 to **HKD 26,001** in the same period of 2025[43](index=43&type=chunk) [Composition of Loss Before Tax](index=10&type=section&id=3.7%20Composition%20of%20Loss%20Before%20Tax) For the six months ended June 30, 2025, the Group's loss before tax was primarily influenced by impairment losses on loans receivable, employee benefit expenses, and directors' emoluments, with a significant reduction in impairment losses on loans receivable Key Deductions for Loss Before Tax | Item | June 30, 2025 (HKD) | June 30, 2024 (HKD) | | :--- | :--- | :--- | | Depreciation of right-of-use assets | 21,767 | – | | Legal and professional fees | 11,304 | 991,660 | | Directors' emoluments | 1,120,177 | 1,206,720 | | Employee benefit expenses (excluding directors' emoluments) | 653,462 | 1,040,939 | | Net impairment losses on loans receivable | 1,617,850 | 37,512,734 | - Net impairment losses on loans receivable significantly decreased from **HKD 37,512,734** in the same period of 2024 to **HKD 1,617,850** in the same period of 2025[45](index=45&type=chunk) - Legal and professional fees significantly decreased from **HKD 991,660** in the same period of 2024 to **HKD 11,304** in the same period of 2025[45](index=45&type=chunk) [Income Tax Expense and Dividends](index=11&type=section&id=3.8%20Income%20Tax%20Expense%20and%20Dividends) For the six months ended June 30, 2025, the Group incurred no Hong Kong profits tax due to tax losses, and the directors did not recommend any interim dividend - The Group recorded tax losses in both reporting periods, resulting in **no provision for Hong Kong profits tax**[46](index=46&type=chunk)[51](index=51&type=chunk) - The directors did not recommend the payment of any interim dividend to shareholders for the six months ended June 30, 2025, and 2024[47](index=47&type=chunk)[52](index=52&type=chunk) [Loss Per Share](index=11&type=section&id=3.9%20Loss%20Per%20Share) For the six months ended June 30, 2025, basic loss per share was 0.07 HK cents, a significant narrowing from 1.15 HK cents in the prior year, with diluted loss per share being the same due to no potential dilutive ordinary shares Loss Per Share | Metric | June 30, 2025 (HK cents) | June 30, 2024 (HK cents) | | :--- | :--- | :--- | | Basic loss per share | (0.07) | (1.15) | | Diluted loss per share | (0.07) | (1.15) | - Basic loss per share is calculated based on the loss attributable to owners of the Company of **HKD 2,496,685** (2024: **HKD 41,804,195**) and the weighted average number of ordinary shares in issue of **3,628,800,000** shares[48](index=48&type=chunk)[53](index=53&type=chunk) - Diluted loss per share is the same as basic loss per share as there were **no potential dilutive ordinary shares** in issue for the Company in both reporting periods[49](index=49&type=chunk)[54](index=54&type=chunk) [Property, Plant and Equipment](index=11&type=section&id=3.10%20Property,%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the Group did not acquire any property, plant, and equipment - For the six months ended June 30, 2025, the Group did not acquire any property, plant, and equipment (2024: **nil**)[50](index=50&type=chunk)[55](index=55&type=chunk) [Loans Receivable](index=12&type=section&id=3.11%20Loans%20Receivable) As at June 30, 2025, the Group's total loans receivable slightly increased, but the impairment loss provision remained stable, with strict credit risk control and regular review of overdue balances, and impaired loans constituting the majority of the total Composition of Loans Receivable | Item | June 30, 2025 (HKD) | December 31, 2024 (HKD) | | :--- | :--- | :--- | | Fixed-rate loans receivable | 559,770,855 | 559,787,199 | | Accrued interest receivable | 98,176,353 | 97,214,767 | | **Total** | **657,947,208** | **657,001,966** | | Less: Individually assessed expected credit losses | (436,547,200) | (436,547,200) | | Collectively assessed expected credit losses | (115,053,741) | (115,053,741) | | Expected credit losses on accrued interest receivable | (94,725,357) | (93,107,507) | | **Classified as current** | **11,620,910** | **12,293,518** | - The effective interest rate for fixed-rate loans receivable ranges from **8.5% to 46%**[57](index=57&type=chunk)[58](index=58&type=chunk) - The Group strictly controls unrecovered loans receivable to minimize credit risk, with management regularly reviewing overdue balances[59](index=59&type=chunk)[61](index=61&type=chunk) Credit Quality Analysis of Loans Receivable | Item | June 30, 2025 (HKD) | December 31, 2024 (HKD) | | :--- | :--- | :--- | | Neither past due nor impaired | – | 105,830 | | Past due less than three months | – | 2,007,890 | | Past due over three months | 2,000,000 | – | | Impaired | 637,947,208 | 654,888,246 | | **Total** | **657,947,208** | **657,001,966** | - As at June 30, 2025, total impaired loans receivable amounted to **HKD 637,947,208**, representing the vast majority of total loans receivable[65](index=65&type=chunk) - The Group holds **no collateral** for loans receivable that are past due but not impaired[68](index=68&type=chunk)[70](index=70&type=chunk) [Financial Assets at Fair Value Through Profit or Loss](index=14&type=section&id=3.12%20Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As at June 30, 2025, the Group held no financial assets at fair value through profit or loss, compared to a small amount of equity securities listed in Hong Kong as at December 31, 2024 Financial Assets at Fair Value Through Profit or Loss | Item | June 30, 2025 (HKD) | December 31, 2024 (HKD) | | :--- | :--- | :--- | | Equity securities listed in Hong Kong | – | 226 | - As at December 31, 2024, the fair value measurement of these listed securities was recurring and determined using **Level 1 inputs**[73](index=73&type=chunk)[74](index=74&type=chunk) [Share Capital](index=14&type=section&id=3.13%20Share%20Capital) As at June 30, 2025, the company's authorized and issued and fully paid share capital both remained unchanged Share Capital Structure | Item | June 30, 2025 (HKD) | December 31, 2024 (HKD) | | :--- | :--- | :--- | | Authorized share capital (250,000,000,000 ordinary shares of HKD 0.02 each) | 5,000,000,000 | 5,000,000,000 | | Issued and fully paid share capital (3,628,800,000 ordinary shares of HKD 0.02 each) | 72,576,000 | 72,576,000 | - Issued and fully paid share capital comprises **3,628,800,000** ordinary shares of **HKD 0.02** each, totaling **HKD 72,576,000**, which is the same as at December 31, 2024[76](index=76&type=chunk) [Related Party Transactions](index=15&type=section&id=3.14%20Related%20Party%20Transactions) For the six months ended June 30, 2025, the Group's total remuneration paid to key management personnel was HKD 1,120,177, a decrease from the same period last year Remuneration Paid to Key Management Personnel | Item | June 30, 2025 (HKD) | June 30, 2024 (HKD) | | :--- | :--- | :--- | | Short-term employee benefits (including salaries, paid annual leave, and sick leave) | 1,105,177 | 1,191,720 | | Pension scheme contributions | 15,000 | 15,000 | | **Total** | **1,120,177** | **1,206,720** | - Total remuneration paid to key management personnel decreased from **HKD 1,206,720** in the same period of 2024 to **HKD 1,120,177** in the same period of 2025[81](index=81&type=chunk) [Contingent Liabilities](index=15&type=section&id=3.15%20Contingent%20Liabilities) As at June 30, 2025, the Group recorded no significant contingent liabilities - As at June 30, 2025, the Group recorded **no significant contingent liabilities** (December 31, 2024: nil)[83](index=83&type=chunk) [Management Discussion and Analysis](index=16&type=section&id=IV.%20Management%20Discussion%20and%20Analysis) [Business Review and Outlook](index=16&type=section&id=4.1%20Business%20Review%20and%20Outlook) The Group continued to focus on Hong Kong's money lending business, maintaining a cautious lending strategy amid a slower-than-expected economic recovery and global geopolitical factors, with a focus on quality personal loan clients and debt collection for 2025 - The Group continues to focus on its money lending business in Hong Kong, providing both secured and unsecured loans to customers[85](index=85&type=chunk)[90](index=90&type=chunk) - Hong Kong's post-pandemic recovery has been slower than expected, with a deteriorating economic environment adversely affected by external factors such as US-China trade tensions, the Russia-Ukraine conflict, and US tariff policies[86](index=86&type=chunk)[90](index=90&type=chunk) - The Group adopted a conservative lending strategy, leading to a **decrease in interest income** in fiscal years 2023 and 2024[86](index=86&type=chunk)[90](index=90&type=chunk) - In 2025, the Group will focus resources on identifying **high-quality personal loan customers** and implementing stricter default risk control standards[88](index=88&type=chunk)[91](index=91&type=chunk) - The first half of the year will primarily focus on collecting outstanding loans in Hong Kong and China, with business expected to **rebound in the second half of 2025**[88](index=88&type=chunk)[91](index=91&type=chunk) - The Group will continue to strive to maintain revenue and credit quality, and closely monitor its capital base to ensure sufficient funding[94](index=94&type=chunk)[100](index=100&type=chunk) [Financial Review](index=17&type=section&id=4.2%20Financial%20Review) This section details the Group's financial performance during the review period, including revenue growth, improved net interest margin, significant reductions in other losses and various expenses, ultimately leading to a substantial narrowing of the loss for the period [Revenue](index=17&type=section&id=4.2.1%20Revenue) During the review period, the Group's revenue, primarily from interest income on loans in its money lending business, increased to approximately HKD 0.97 million, up from the same period last year - Revenue for the review period increased to approximately **HKD 0.97 million** (2024: approximately **HKD 0.91 million**), primarily from interest income on loans in the money lending business[95](index=95&type=chunk)[101](index=101&type=chunk) - The increase in revenue was mainly due to higher interest income from loan financing[96](index=96&type=chunk)[101](index=101&type=chunk) [Net Interest Margin](index=17&type=section&id=4.2.2%20Net%20Interest%20Margin) During the review period, the Group's net interest margin for its money lending business was approximately 11.1%, an improvement from 8.19% in the same period last year - The Group recorded a net interest margin of approximately **11.1%** in its money lending business during the review period[97](index=97&type=chunk)[102](index=102&type=chunk) - The net interest margin for the same period last year was approximately **8.19%**, indicating an improvement in net interest margin[98](index=98&type=chunk)[102](index=102&type=chunk) [Other Losses](index=17&type=section&id=4.2.3%20Other%20Losses) During the review period, the Group recorded approximately nil other losses, a significant reduction from approximately HKD 0.17 million in the same period of 2024, mainly due to decreased fair value losses on listed securities investments - Other losses recorded during the review period were approximately **HKD nil**, compared to approximately **HKD 0.17 million** in the same period of 2024[99](index=99&type=chunk)[103](index=103&type=chunk) - The decrease in other losses was primarily due to reduced fair value losses on investments in listed securities (i.e., financial assets at fair value through profit or loss)[99](index=99&type=chunk)[103](index=103&type=chunk) [Administrative Expenses](index=18&type=section&id=4.2.4%20Administrative%20Expenses) During the review period, the Group's administrative expenses decreased to approximately HKD 1.83 million, down from approximately HKD 2.62 million in the same period of 2024, mainly due to reduced employee expenses and depreciation - Administrative expenses primarily include employee expenses, office rental costs, and depreciation expenses[105](index=105&type=chunk)[110](index=110&type=chunk) - Administrative expenses decreased to approximately **HKD 1.83 million** during the review period, down from approximately **HKD 2.62 million** in the same period of 2024[106](index=106&type=chunk)[110](index=110&type=chunk) - The reduction in administrative expenses was mainly due to decreased employee expenses and depreciation expenses[106](index=106&type=chunk)[110](index=110&type=chunk) [Impairment Losses on Loans Receivable](index=18&type=section&id=4.2.5%20Impairment%20Losses%20on%20Loans%20Receivable) During the review period, the Group's impairment losses on loans receivable significantly decreased to approximately HKD 1.62 million, compared to approximately HKD 37.51 million in the same period of 2024, with impairment assessments based on historical experience, economic conditions, and forward-looking information using individual and collective approaches - Impairment losses on loans receivable during the review period were approximately **HKD 1.62 million**, a significant reduction from approximately **HKD 37.51 million** in the same period of 2024[108](index=108&type=chunk)[111](index=111&type=chunk) - Expected Credit Loss (ECL) assessment is based on historical credit loss experience, adjusted for debtor-specific factors, general economic conditions, and forward-looking information[107](index=107&type=chunk)[111](index=111&type=chunk) - The Group conducts collective assessments at least quarterly and individual assessments monthly, considering probability of default and loss given default[109](index=109&type=chunk)[112](index=112&type=chunk)[113](index=113&type=chunk)[119](index=119&type=chunk) [Other Operating Expenses](index=19&type=section&id=4.2.6%20Other%20Operating%20Expenses) During the review period, the Group's other operating expenses decreased to approximately nil, a significant reduction from approximately HKD 2.37 million in the same period of 2024, mainly due to decreased promotion and professional fees - Other operating expenses primarily include legal and professional fees, audit fees, and other general expenses[114](index=114&type=chunk)[120](index=120&type=chunk) - Other operating expenses decreased to approximately **HKD nil** during the review period, a significant reduction from approximately **HKD 2.37 million** in the same period of 2024[114](index=114&type=chunk)[120](index=120&type=chunk) - This was mainly due to reduced promotion and professional fees[114](index=114&type=chunk)[120](index=120&type=chunk) [Finance Costs](index=19&type=section&id=4.2.7%20Finance%20Costs) During the review period, the Group's finance costs decreased to approximately HKD 0.03 million, down from approximately HKD 0.05 million in the same period of 2024, primarily including interest on lease liabilities and bonds payable - Finance costs primarily include interest on lease liabilities and interest on bonds payable[115](index=115&type=chunk)[121](index=121&type=chunk) - Finance costs decreased to approximately **HKD 0.03 million** during the review period, down from approximately **HKD 0.05 million** in the same period of 2024[115](index=115&type=chunk)[121](index=121&type=chunk) [Loss for the Period](index=19&type=section&id=4.2.8%20Loss%20for%20the%20Period) During the review period, the unaudited consolidated loss attributable to owners of the Company significantly narrowed to approximately HKD 2.50 million, a substantial improvement from approximately HKD 41.80 million in the same period of 2024, mainly due to reduced impairment losses on loans receivable and increased revenue - The unaudited consolidated loss attributable to owners of the Company was approximately **HKD 2.50 million**, a significant reduction from approximately **HKD 41.80 million** in the same period of 2024[116](index=116&type=chunk)[122](index=122&type=chunk) - The reduction in loss was primarily due to decreased impairment losses on loans receivable and increased revenue[116](index=116&type=chunk)[122](index=122&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=19&type=section&id=4.3%20Liquidity,%20Financial%20Resources%20and%20Capital%20Structure) As at June 30, 2025, the Group had bank and cash balances of approximately HKD 1 million and no bank borrowings, with net current assets of approximately HKD 12.97 million and a current ratio of approximately 10.17 times, both lower than year-end 2024 due to reduced loans receivable - As at June 30, 2025, the Group's bank and cash balances were approximately **HKD 1 million** (December 31, 2024: approximately **HKD 2.43 million**)[117](index=117&type=chunk)[123](index=123&type=chunk) - There were **no bank borrowings** as at June 30, 2025, and December 31, 2024[118](index=118&type=chunk)[123](index=123&type=chunk) - Net current assets were approximately **HKD 12.97 million** (December 31, 2024: approximately **HKD 15.45 million**), with a current ratio of approximately **10.17 times** (December 31, 2024: approximately **13.28 times**)[125](index=125&type=chunk)[131](index=131&type=chunk) - The decrease in the current ratio was primarily due to a reduction in loans receivable for the six months ended June 30, 2025[125](index=125&type=chunk)[131](index=131&type=chunk) - The Group may undertake fundraising activities through applying for loans, credit facilities, or issuing equity shares/loan notes[126](index=126&type=chunk)[131](index=131&type=chunk) [Significant Investments and Asset Changes](index=20&type=section&id=4.4%20Significant%20Investments%20and%20Asset%20Changes) As at June 30, 2025, the Group held no significant investments exceeding 5% of total assets, with no major acquisitions or disposals of subsidiaries, associates, and joint ventures during the review period, and no specific future plans for significant investments or capital assets [Significant Investments Held](index=20&type=section&id=4.4.1%20Significant%20Investments%20Held) As at June 30, 2025, the Group held no significant investments exceeding 5% of its total assets - As at June 30, 2025, the Group held **no significant investments** exceeding **5%** of its total assets[127](index=127&type=chunk)[132](index=132&type=chunk) [Major Acquisitions and Disposals and Future Plans](index=20&type=section&id=4.4.2%20Major%20Acquisitions%20and%20Disposals%20and%20Future%20Plans) During the review period, the Group had no major acquisitions or disposals of subsidiaries, associates, and joint ventures, and no specific future plans for significant investments or capital assets - During the review period, the Group had **no major acquisitions or disposals** of subsidiaries, associates, and joint ventures[128](index=128&type=chunk)[133](index=133&type=chunk) - As at June 30, 2025, the Group had **no specific future plans** regarding significant investments or capital assets[128](index=128&type=chunk)[133](index=133&type=chunk) [Employee Information](index=20&type=section&id=4.5%20Employee%20Information) As at June 30, 2025, the Group had 6 employees, a decrease from year-end 2024, with total employee remuneration of approximately HKD 1.77 million, and ongoing training to enhance competitiveness - As at June 30, 2025, the Group had **6 employees** (December 31, 2024: **8 employees**)[129](index=129&type=chunk)[134](index=134&type=chunk) - Total employee remuneration (including directors' emoluments) for the six months ended June 30, 2025, was approximately **HKD 1.77 million** (2024: approximately **HKD 2.25 million**)[129](index=129&type=chunk)[134](index=134&type=chunk) - Remuneration policy is determined based on individual employee performance, qualifications, and experience, with reference to current market conditions, including fixed monthly salaries and discretionary year-end bonuses[129](index=129&type=chunk)[134](index=134&type=chunk) - The Group adopts an employee training and development policy, regularly providing training on the money lending industry, anti-money laundering, and anti-corruption[130](index=130&type=chunk)[134](index=134&type=chunk) [Pledge of Assets and Gearing Ratio](index=21&type=section&id=4.6%20Pledge%20of%20Assets%20and%20Gearing%20Ratio) As at June 30, 2025, the Group pledged approximately HKD 8 million in loans receivable as collateral for bonds, with a gearing ratio of 6.59, down from 8.62% at year-end 2024, reflecting a decrease in net debt [Pledge of the Group's Assets](index=21&type=section&id=4.6.1%20Pledge%20of%20the%20Group's%20Assets) As at June 30, 2025, the Group pledged approximately HKD 8 million in loans receivable as collateral for bonds issued during the period - As at June 30, 2025, the Group pledged a total of approximately **HKD 8 million** in loans receivable as collateral for bonds issued during the period (June 30, 2024: **HKD 8 million**)[135](index=135&type=chunk)[141](index=141&type=chunk) [Gearing Ratio](index=21&type=section&id=4.6.2%20Gearing%20Ratio) As at June 30, 2025, the Group recorded net debt of approximately HKD 2.4 million, with a gearing ratio of 6.59, down from 8.62% at year-end 2024 - The gearing ratio is calculated as net debt (total liabilities less bank and cash balances) divided by the sum of adjusted capital and net debt[136](index=136&type=chunk)[142](index=142&type=chunk) - The Group recorded net debt of approximately **HKD 2.4 million** as at June 30, 2025 (December 31, 2024: approximately **HKD 3.69 million**)[136](index=136&type=chunk)[142](index=142&type=chunk) - Consequently, as at June 30, 2025, the gearing ratio was **6.59** (December 31, 2024: **8.62%**), indicating a decrease in the ratio[136](index=136&type=chunk)[142](index=142&type=chunk) [Exchange Rate Risk](index=21&type=section&id=4.7%20Exchange%20Rate%20Risk) During the review period, the Group's primary money lending business in Hong Kong, with revenues and costs denominated in HKD, resulted in negligible exchange rate fluctuation risk, thus no financial instruments were used for hedging - The Group primarily engages in money lending business in Hong Kong, with revenues and costs mainly denominated in **HKD**[137](index=137&type=chunk)[143](index=143&type=chunk) - The Group faces **negligible exchange rate fluctuation risk**, and therefore no financial instruments were used for hedging during the review period[137](index=137&type=chunk)[143](index=143&type=chunk) [Share Option Scheme](index=21&type=section&id=4.8%20Share%20Option%20Scheme) As at June 30, 2025, the company had no share option scheme - As at June 30, 2025, the company had **no share option scheme**[138](index=138&type=chunk)[144](index=144&type=chunk) [Contingent Liabilities](index=21&type=section&id=4.9%20Contingent%20Liabilities) As at June 30, 2025, the Group had no significant contingent liabilities - As at June 30, 2025, the Group had **no significant contingent liabilities** (December 31, 2024: nil)[139](index=139&type=chunk)[145](index=145&type=chunk) [Directors' and Major Shareholders' Interests](index=21&type=section&id=4.10%20Directors'%20and%20Major%20Shareholders'%20Interests) As at June 30, 2025, no directors or chief executives held interests or short positions in the company's shares, related shares, or debentures, while major shareholder Xiao Guoliang held a 29.50% long position in the company's issued share capital [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures](index=21&type=section&id=4.10.1%20Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures) As at June 30, 2025, to the best of the directors' knowledge, no directors or chief executives held any interests or short positions in the company's shares, related shares, or debentures of the company or its associated corporations - As at June 30, 2025, no directors or chief executives held any interests or short positions in the shares, underlying shares, or debentures of the company or its associated corporations[140](index=140&type=chunk)[146](index=146&type=chunk) [Major Shareholders' and Other Persons' Interests and Short Positions in Shares and Underlying Shares](index=22&type=section&id=4.10.2%20Major%20Shareholders'%20and%20Other%20Persons'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares) As at June 30, 2025, major shareholder Xiao Guoliang held a 29.50% long position in the company's issued share capital Major Shareholder's Long Position in the Company's Shares | Name | Nature of Interest | Number of Ordinary Shares Held | Approximate Percentage of the Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Xiao Guoliang | Beneficial owner | 1,070,400,000 | 29.50% | - Other than Xiao Guoliang, the directors are not aware of any other persons holding any interests or short positions in the company's shares or underlying shares[149](index=149&type=chunk)[153](index=153&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=22&type=section&id=4.11%20Purchase,%20Sale%20or%20Redemption%20of%20Listed%20Securities) During the review period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the review period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[150](index=150&type=chunk)[154](index=154&type=chunk) [Corporate Governance Practices](index=22&type=section&id=4.12%20Corporate%20Governance%20Practices) The company is committed to high corporate governance standards, applying the GEM Listing Rules' Corporate Governance Code, and despite the vacant Chairman position, the Board operates effectively - The company has applied the Corporate Governance Code in Appendix C1 of the GEM Listing Rules to maintain an effective Board, robust internal controls, and transparency and accountability[151](index=151&type=chunk)[155](index=155&type=chunk) - The position of Chairman of the Board has been vacant since March 9, 2020, leading to non-compliance with Corporate Governance Code provisions C.2.1 to C.2.9 and F.1.3[156](index=156&type=chunk)[160](index=160&type=chunk)[161](index=161&type=chunk) - Despite the vacant Chairman position, the Board continues to operate effectively and efficiently, with major decisions made by the full Board and daily operations overseen by the Chief Executive Officer[157](index=157&type=chunk)[160](index=160&type=chunk) [Non-Compliance with Listing Rules](index=23&type=section&id=4.13%20Non-Compliance%20with%20Listing%20Rules) Due to the retirement of an independent non-executive director, the company failed to meet GEM Listing Rules requirements regarding the number of independent non-executive directors, audit committee members, and remuneration committee chairman qualifications, and will seek suitable candidates promptly - Following the retirement of Dr. Fung Kam Man as an independent non-executive director, the company failed to comply with GEM Listing Rules 5.05(1) (at least three independent non-executive directors), 5.28 (at least three members on the audit committee), and 5.34 (remuneration committee chaired by an independent non-executive director)[159](index=159&type=chunk)[162](index=162&type=chunk) - The company will use its best endeavors to identify suitable candidates for independent non-executive directors as soon as practicable and within three months[164](index=164&type=chunk)[169](index=169&type=chunk) [Directors' Securities Transactions](index=24&type=section&id=4.14%20Directors'%20Securities%20Transactions) The company adopted a code of conduct for directors' securities transactions no less exacting than GEM Listing Rules, and all directors confirmed compliance with no breaches found during the review period - The company has adopted a code of conduct for directors' securities transactions with terms no less exacting than the required standard of dealings set out in Rules 5.48 to 5.67 of the GEM Listing Rules[165](index=165&type=chunk)[170](index=170&type=chunk) - Following specific enquiries with all directors, each director confirmed compliance with the required standard of dealings and the code of conduct during the review period[165](index=165&type=chunk)[170](index=170&type=chunk) - No instances of non-compliance were noted by the company during the review period[165](index=165&type=chunk)[170](index=170&type=chunk) [Competing Interests](index=24&type=section&id=4.15%20Competing%20Interests) During the review period, no directors or their close associates held any business or business interests directly or indirectly competing with the Group's business, nor any other conflicts of interest - During the review period, no directors or their respective close associates held any business or business interests that compete or may compete directly or indirectly with the Group's business, or any other conflicts of interest with the Group[166](index=166&type=chunk)[171](index=171&type=chunk) [Suspension of Trading](index=24&type=section&id=4.16%20Suspension%20of%20Trading) The company's shares have been suspended from trading since November 24, 2017, as per SFC instructions, and will remain suspended indefinitely, with the resumption application still pending approval and no specific timeline available - The company's shares have been suspended from trading since November 24, 2017, as per the SFC's instructions, and will remain suspended until further notice[167](index=167&type=chunk)[172](index=172&type=chunk) - The Stock Exchange reserves its right to delist the company[174](index=174&type=chunk)[177](index=177&type=chunk) - The company's application for resumption of trading is currently pending approval, and the company is unable to provide any specific timeline for resumption at this stage[175](index=175&type=chunk)[177](index=177&type=chunk) [Audit Committee](index=25&type=section&id=4.17%20Audit%20Committee) As of this report date, the Audit Committee, comprising two independent non-executive directors, reviewed this report and the Group's unaudited condensed consolidated results, deeming the financial information prepared in compliance with applicable accounting standards and listing rules - The Audit Committee comprises two independent non-executive directors: Mr. Wong Shui Yeung (Chairman) and Mr. Wong Kin Ning[176](index=176&type=chunk)[178](index=178&type=chunk) - The Audit Committee has reviewed this report and the Group's unaudited condensed consolidated results for the review period[176](index=176&type=chunk)[178](index=178&type=chunk) - The Board believes that the financial information has been prepared in compliance with applicable accounting standards, the GEM Listing Rules, and other relevant legal requirements, with adequate disclosures made[176](index=176&type=chunk)[178](index=178&type=chunk)