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份內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 ZTE CORPORATION 中興通訊股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：00763） 二零二五年半年度業績公告 本公司及董事會全體成員保證信息披露的內容真實、準確和完整，沒有虛假記載、 誤導性陳述或重大遺漏。 中興通訊股份有限公司（「本公司」）董事會（「董事會」）謹此宣佈本公司及 其附屬公司（本集團）截至二零二五年六月三十日止六個月之未經審計業績。本 公告列載本公司二零二五年半年度報告全文，並符合香港聯合交易所有限公司 （「香港聯交所」）證券上市規則中有關半年度業績初步公告附載資料之要求。 本業績公告的中英文版本可在本公司網站(www.zte.com.cn)和香港聯交所網站 (www.hkexnews.hk)查閱。本公司將於適當時候向 H 股股東寄發二零二五年半年 度報告，並在本公司及香港聯交所網站刊載。 承 董事 會命 方榕 董事長 深圳，中國 二零二五年八月二十 ...

[Operating Results](index=2&type=section&id=經營業績) [Consolidated Balance Sheet](index=2&type=section&id=合併資產負債表) As of June 30, 2025, the Group's total consolidated assets were **RMB 57.73 billion**, a **3.44% decrease** from year-end 2024, with total liabilities at **RMB 13.97 billion** and total shareholders' equity at **RMB 43.76 billion**, decreasing by **14.72%** and increasing by **0.82%** respectively Consolidated Balance Sheet Key Data (As of June 30, 2025) | Indicator | June 30, 2025 (RMB) | December 31, 2024 (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 57,731,364,852.63 | 59,786,931,555.09 | -3.44 | | Total Liabilities | 13,972,838,848.43 | 16,383,834,665.08 | -14.72 | | Total Shareholders' Equity | 43,758,526,004.20 | 43,403,096,890.01 | 0.82 | [Consolidated Income Statement](index=6&type=section&id=合併利潤表) In H1 2025, the Group achieved operating revenue of **RMB 5.69 billion**, a **5.93% year-on-year increase**, with net profit reaching **RMB 1.08 billion**, up **99.42%**, and net profit attributable to parent company shareholders at **RMB 956 million**, up **110.8%**, resulting in basic earnings per share of **RMB 0.04**, a **100% increase** Consolidated Income Statement Key Data (For the six months ended June 30, 2025) | Indicator | H1 2025 (RMB) | H1 2024 (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 5,692,674,662.40 | 5,373,882,294.43 | 5.93 | | Operating Costs | 3,898,924,882.48 | 4,136,210,127.54 | -5.74 | | Net Profit | 1,081,371,691.61 | 542,214,946.26 | 99.42 | | Net Profit Attributable to Parent Company Shareholders | 955,747,258.23 | 453,443,345.42 | 110.80 | | Basic Earnings Per Share (RMB) | 0.04 | 0.02 | 100.00 | [Notes to Financial Statements](index=8&type=section&id=財務報表附註) [General Information](index=8&type=section&id=一.%20基本情況) This section outlines Liaoning Port Co., Ltd.'s establishment, history, changes in equity structure (including the change of ultimate controlling party to China Merchants Group), major asset restructuring (absorption merger of Yingkou Port Group), and share repurchase status, with the company's main business covering port loading, unloading, transportation, warehousing, and logistics services - The company's ultimate controlling party has changed to **China Merchants Group Co., Ltd**[12](index=12&type=chunk)[17](index=17&type=chunk) - The company completed a share-swap absorption merger of Yingkou Port Group Co., Ltd. in 2021, increasing its total share capital to **23,987,065,816 shares**[13](index=13&type=chunk) - As of June 30, 2025, the company had cumulatively repurchased **415,298,603 shares**, of which **81,591,147 shares** were cancelled in 2024[15](index=15&type=chunk) - The Group primarily operates international and domestic cargo handling, transportation, transshipment, warehousing, and other port and logistics services[16](index=16&type=chunk) [Basis of Financial Statement Preparation](index=10&type=section&id=二.%20財務報表的編製基礎) The Group's financial statements are prepared in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance of China and relevant regulations, presented on a going concern basis - Financial statements are prepared in accordance with Chinese Accounting Standards for Business Enterprises and presented on a going concern basis[18](index=18&type=chunk)[19](index=19&type=chunk) [Taxation](index=11&type=section&id=三.%20稅項) This section details the Group's main tax categories and rates, including VAT, urban maintenance and construction tax, education surcharges, property tax, and corporate income tax, also disclosing various tax incentives enjoyed by the Group and its subsidiaries, such as land use tax exemptions for port land, high-tech enterprise income tax benefits, small and micro-profit enterprise income tax benefits, and R&D expense super deduction Major Tax Categories and Rates | Tax Category | Tax Rate | | :--- | :--- | | Value-Added Tax (Port operations, goods sales, transportation, interest, construction, real estate leasing) | 6%, 13%, 9%, 6%, 9%, 5% | | Urban Maintenance and Construction Tax | 7% (Turnover Tax) | | Education Surcharge | 5% (Turnover Tax) | | Property Tax (Original Value) | 1.2% (70% of original property value) | | Property Tax (Rent) | 12% (Rental Income) | | Corporate Income Tax | 25% (Some subsidiaries enjoy preferential rates of 15% or 20%) | - The Group's dock land and reclaimed land are exempt from land use tax, and land for bulk commodity warehousing facilities enjoys a **50% reduction** in urban land use tax[23](index=23&type=chunk)[24](index=24&type=chunk) - Some subsidiaries, having obtained high-tech enterprise certificates, are subject to a **15% corporate income tax rate**[25](index=25&type=chunk) - Some small and micro-profit enterprise subsidiaries are eligible for a preferential policy to calculate taxable income at **25%** and pay corporate income tax at a **20% rate**[26](index=26&type=chunk) - Dalian Container Terminal Co., Ltd. applies tax incentives for R&D expenses, allowing for **100% super deduction or 200% amortization**[27](index=27&type=chunk) [Notes to Major Items in Consolidated Financial Statements](index=14&type=section&id=四.%20合併財務報表主要項目註釋) This section provides detailed notes on major asset, liability, and profit/loss items in the consolidated financial statements, including their composition, aging analysis, changes, and related accounting treatments and risk assessments [Notes Receivable](index=14&type=section&id=1.%20應收票據) The Group's notes receivable primarily consist of bank acceptance bills, totaling **RMB 82.38 million** as of June 30, 2025, a **9.91% decrease** from year-end 2024, with the Group assessing bank acceptance bills as having low credit risk, thus no credit loss provisions were made, and no notes are pledged Notes Receivable (RMB) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Bank Acceptance Bills | 82,376,253.20 | 91,552,251.26 | | Total | 82,376,253.20 | 91,552,251.26 | - The Group has no pledged notes receivable and has not made any credit loss provisions[29](index=29&type=chunk)[30](index=30&type=chunk) [Accounts Receivable](index=15&type=section&id=2.%20應收賬款) As of June 30, 2025, total accounts receivable amounted to **RMB 2.44 billion**, a **18.78% decrease** from year-end 2024, with a significant increase in accounts receivable aged within one year, and a **RMB 84.45 million reduction** in bad debt provisions for accounts receivable this period Accounts Receivable and Bad Debt Provisions (RMB) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Accounts Receivable | 2,441,659,448.96 | 3,006,265,639.15 | | Accounts Receivable Bad Debt Provisions | 165,720,929.93 | 250,175,936.26 | | Bad Debt Provisions Accrued This Period | -84,455,006.33 | -380,064,168.69 | - As of June 30, 2025, accounts receivable aged within one year significantly increased to **50.66%**[32](index=32&type=chunk) [Receivables Financing](index=17&type=section&id=3.%20應收款項融資) The Group's receivables financing primarily consists of bank acceptance bills measured at fair value, totaling **RMB 206 million** as of June 30, 2025, a **29.33% decrease** from year-end 2024, with **RMB 36.09 million** in bank acceptance bills endorsed or discounted but not derecognized this period Receivables Financing (RMB) | Type | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Bank Acceptance Bills Measured at Fair Value | 205,630,157.60 | 290,981,075.87 | | Bank Acceptance Bills Endorsed or Discounted but Not Derecognized | 36,092,635.48 | 106,303,296.04 | - As of June 30, 2025, the Group had no pledged receivables financing[34](index=34&type=chunk) [Other Receivables](index=17&type=section&id=4.%20其他應收款) As of June 30, 2025, total other receivables amounted to **RMB 603 million**, a **38.07% increase** from year-end 2024, primarily comprising dividends receivable and other receivable items, which grew by **20.85%** and **43.09%** respectively Total Other Receivables (RMB) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Dividends Receivable | 116,376,869.06 | 96,297,124.26 | | Other Receivable Items | 486,991,591.20 | 340,717,344.32 | | Total | 603,368,460.26 | 437,014,468.58 | [Interest Receivable](index=18&type=section&id=應收利息) As of June 30, 2025, the Group had no significant overdue interest and no bad debt provisions were made for interest receivable this period - As of June 30, 2025, the Group had no significant overdue interest[36](index=36&type=chunk) - No bad debt provisions were made for interest receivable from January to June 2025[37](index=37&type=chunk) [Dividends Receivable](index=18&type=section&id=應收股利) As of June 30, 2025, the book value of dividends receivable was **RMB 116 million**, primarily from Dalian Port Yidu Cold Chain Co., Ltd. and Dalian PetroChina International Storage & Transportation Co., Ltd., with a **RMB 64,200 reduction** in credit loss provisions for dividends receivable this period Major Dividends Receivable (RMB) | Investee | June 30, 2025 | | :--- | :--- | | Dalian Port Yidu Cold Chain Co., Ltd. | 71,917,796.35 | | Dalian PetroChina International Storage & Transportation Co., Ltd. | 26,483,802.40 | | Dalian Jilong Logistics Co., Ltd. | 22,507,539.23 | | Total Book Value of Dividends Receivable | 116,376,869.06 | - Significant dividends receivable aged over one year are primarily due to deferred payments, with total credit loss provisions amounting to **RMB 26.95 million**[39](index=39&type=chunk) [Other Receivables (Items)](index=20&type=section&id=其他應收款項) As of June 30, 2025, total other receivable items amounted to **RMB 487 million**, primarily comprising government subsidies receivable and settlement funds to be transferred, with **RMB 5.26 million** in bad debt provisions made this period Analysis of Other Receivables by Nature (RMB) | Nature of Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Government Subsidies Receivable | 347,383,939.47 | 307,413,298.21 | | Settlement Funds to be Transferred | 41,489,317.66 | 1,592,090.17 | | Total Other Receivable Items | 486,991,591.20 | 340,717,344.32 | - Bad debt provisions of **RMB 5.26 million** were made from January to June 2025[41](index=41&type=chunk) [Inventories](index=22&type=section&id=5.%20存貨) As of June 30, 2025, the book value of inventories was **RMB 128 million**, a slight increase from year-end 2024, primarily composed of raw materials, finished goods, and revolving materials, with a **RMB 1.44 million reduction** in inventory impairment provisions this period Book Value of Inventories (RMB) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Raw Materials | 83,593,451.73 | 83,640,693.64 | | Finished Goods | 12,097,016.42 | 10,071,281.92 | | Revolving Materials | 20,743,591.41 | 20,367,206.30 | | Contract Fulfillment Costs | 11,109,080.50 | 11,199,758.08 | | Total Inventories | 127,543,140.06 | 125,278,939.94 | - Inventory impairment provisions decreased by **RMB 1.44 million** this period, mainly due to reversals or write-offs of raw material impairment provisions[43](index=43&type=chunk) - Contract fulfillment costs amortized this period amounted to **RMB 37.60 million**[43](index=43&type=chunk) [Investments in Other Equity Instruments](index=23&type=section&id=6.%20其他權益工具投資) As of June 30, 2025, the book value of investments in other equity instruments was **RMB 195 million**, a **10.53% decrease** from year-end 2024, primarily invested in Jinzhou New Era Container Terminal Co., Ltd. and others, with dividend income of **RMB 13.50 million** this period Investments in Other Equity Instruments (RMB) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Jinzhou New Era Container Terminal Co., Ltd. | 136,658,436.19 | 156,890,738.14 | | Qinhuangdao Port Xingangwan Container Terminal Co., Ltd. | 33,861,382.15 | 37,122,267.41 | | Total Investments in Other Equity Instruments | 194,597,395.96 | 217,510,342.27 | | Dividend Income (Current Period) | 13,501,819.38 | 9,286,637.67 | - These investments are designated as non-trading equity instruments and are not expected to be sold in the foreseeable future[44](index=44&type=chunk) [Accounts Payable](index=23&type=section&id=7.%20應付賬款) As of June 30, 2025, total accounts payable amounted to **RMB 293 million**, a **26.13% decrease** from year-end 2024, primarily comprising vessel charter fees, ocean freight, and auxiliary material purchases, with **87.92%** of accounts payable aged within one year Analysis of Accounts Payable by Nature (RMB) | Nature | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Vessel Charter Fees and Ocean Freight | 125,195,183.97 | 145,451,732.60 | | Auxiliary Material Purchases | 158,821,791.75 | 236,527,220.81 | | Total Accounts Payable | 292,788,569.74 | 396,352,402.61 | - As of June 30, 2025, the Group had no significant accounts payable aged over one year[46](index=46&type=chunk) [Contract Liabilities](index=24&type=section&id=8.%20合同負債) As of June 30, 2025, total contract liabilities amounted to **RMB 262 million**, an **8.01% decrease** from year-end 2024, primarily consisting of port miscellaneous fees and freight, with **RMB 232 million** of revenue recognized from the opening balance of contract liabilities this period Contract Liabilities (RMB) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Port Miscellaneous Fees | 233,777,453.07 | 257,767,870.44 | | Freight | 1,780,732.55 | 2,229,517.80 | | Total Contract Liabilities | 262,194,400.58 | 285,023,142.74 | - Revenue recognized this period from the opening balance of contract liabilities amounted to **RMB 232 million**[47](index=47&type=chunk) - The decrease in contract liabilities at period-end was primarily due to a reduction in advance receipts from the grain terminal and related logistics business segments[48](index=48&type=chunk) [Other Payables](index=25&type=section&id=9.%20其他應付款) As of June 30, 2025, total other payables amounted to **RMB 1.54 billion**, a **26.78% increase** from year-end 2024, primarily including interest payable, dividends payable, and other payable items, with dividends payable significantly increasing by **211.69%** Other Payables (RMB) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Interest Payable | 275,191,356.55 | 270,456,396.55 | | Dividends Payable | 583,760,774.15 | 187,293,731.99 | | Other Payable Items | 682,307,054.22 | 757,944,537.88 | | Total | 1,541,259,184.92 | 1,215,694,666.42 | - As of June 30, 2025, significant other payables aged over one year totaled **RMB 165 million**, primarily due to unfulfilled payment conditions[51](index=51&type=chunk)[52](index=52&type=chunk) [Operating Revenue and Operating Costs](index=27&type=section&id=10.%20營業收入和營業成本) In H1 2025, the Group's operating revenue was **RMB 5.69 billion** and operating costs were **RMB 3.90 billion**, with main business revenue increasing by **7.62%** year-on-year and other business revenue decreasing by **31.48%**, making port operations the primary source of revenue Operating Revenue and Operating Costs (For the six months ended June 30, 2025, RMB) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Operating Revenue | 5,692,674,662.40 | 5,373,882,294.43 | | Main Business Revenue | 5,533,429,725.85 | 5,141,776,803.89 | | Other Business Revenue | 159,244,936.55 | 232,105,490.54 | | Operating Costs | 3,898,924,882.48 | 4,136,210,127.54 | | Main Business Costs | 3,694,636,823.95 | 3,855,722,086.36 | | Other Business Costs | 204,288,058.53 | 280,488,041.18 | - Port operations are the Group's primary revenue source, with **RMB 4.37 billion** in revenue recognized in H1 2025[54](index=54&type=chunk) [Administrative Expenses](index=30&type=section&id=11.%20管理費用) In H1 2025, administrative expenses were **RMB 329 million**, a **7.7% year-on-year decrease**, primarily due to reductions in staff remuneration and labor costs Administrative Expenses (For the six months ended June 30, 2025, RMB) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Staff Remuneration | 238,034,049.48 | 273,894,482.70 | | Labor Costs | 9,041,697.04 | 11,017,694.02 | | Total Administrative Expenses | 328,761,969.65 | 356,164,073.44 | - Administrative expenses decreased by **7.7%** year-on-year, primarily due to reduced labor and service costs[56](index=56&type=chunk)[82](index=82&type=chunk) [Finance Costs](index=31&type=section&id=12.%20財務費用) In H1 2025, finance costs were **RMB 209 million**, a **13.7% year-on-year increase**, primarily due to the combined effect of increased interest expenses from consolidated entities and repayment of some interest-bearing debt to the parent company Finance Costs (For the six months ended June 30, 2025, RMB) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Interest Expense | 236,729,910.64 | 222,131,998.56 | | Less: Interest Income | 28,592,728.68 | 37,221,396.23 | | Total Finance Costs | 208,859,900.27 | 183,669,463.70 | - Finance costs increased by **13.7%** year-on-year, primarily influenced by increased interest expenses from consolidated entities and the repayment of some interest-bearing debt to the parent company[57](index=57&type=chunk)[82](index=82&type=chunk) [Credit Impairment Losses](index=31&type=section&id=13.%20信用減值損失) In H1 2025, credit impairment losses were **RMB 79.26 million**, a **489.0% year-on-year decrease**, primarily due to factors such as reduced accounts receivable Credit Impairment Losses (For the six months ended June 30, 2025, RMB) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Accounts Receivable Impairment Losses | 84,455,006.33 | -30,707,560.98 | | Other Receivables Impairment Losses | -5,191,563.24 | 44,165,431.75 | | Total | 79,263,443.09 | 13,457,870.77 | - Credit impairment losses decreased by **489.0%** year-on-year, primarily due to lower accounts receivable[82](index=82&type=chunk) [Other Income](index=32&type=section&id=14.%20其他收益) In H1 2025, other income was **RMB 69.58 million**, a **39.3% year-on-year decrease**, primarily due to reduced subsidy income from China-Europe transit trains Other Income (For the six months ended June 30, 2025, RMB) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Government Subsidies Related to Daily Activities | 68,850,189.58 | 111,850,751.12 | | Handling Fee Rebates for Withholding Individual Income Tax | 732,554.34 | 1,031,949.87 | | Total | 69,582,743.92 | 114,586,039.94 | - Other income decreased by **39.3%** year-on-year, primarily due to reduced subsidy income from China-Europe transit trains[82](index=82&type=chunk) [Investment Income](index=33&type=section&id=15.%20投資收益) In H1 2025, investment income was **RMB 106 million**, a substantial **2,107.2% year-on-year increase**, primarily due to the combined effect of profit growth from joint ventures and associates operating passenger ro-ro business and a significant profit decline from those operating bulk and general cargo business in the prior year Investment Income (For the six months ended June 30, 2025, RMB) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Investment Income from Long-Term Equity Investments Accounted for Using Equity Method | 92,263,809.83 | -15,753,917.08 | | Dividend Income from Other Equity Instruments Still Held | 13,501,819.38 | 9,286,637.67 | | Total | 105,939,046.91 | -5,278,069.66 | - Investment income increased by **2,107.2%** year-on-year, primarily influenced by profit growth from joint ventures and associates in passenger ro-ro business and profit decline from those in bulk and general cargo business[83](index=83&type=chunk) [Income Tax Expense](index=33&type=section&id=16.%20所得稅費用) In H1 2025, income tax expense was **RMB 363 million**, a **71.9% year-on-year increase**, primarily due to an increase in taxable income resulting from changes in operating profit Income Tax Expense (For the six months ended June 30, 2025, RMB) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Current Income Tax Expense | 363,775,513.89 | 229,163,204.60 | | Deferred Income Tax Expense | -647,410.65 | -17,877,613.52 | | Total | 363,128,103.24 | 211,285,591.08 | - Income tax expense increased by **71.9%** year-on-year, primarily due to changes in operating profit leading to increased taxable income[83](index=83&type=chunk) [Earnings Per Share](index=34&type=section&id=17.%20每股收益) In H1 2025, the Group's basic earnings per share increased to **RMB 0.04** from **RMB 0.02** in the prior year, with no dilutive potential ordinary shares outstanding this period Earnings Per Share (For the six months ended June 30, 2025, RMB) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Profit Attributable to Parent Company Ordinary Shareholders | 955,747,258.23 | 453,443,345.42 | | Weighted Average Number of Ordinary Shares Outstanding | 23,877,588,055.67 | 23,987,065,816.00 | | Basic Earnings Per Share | 0.04 | 0.02 | - The company has no dilutive potential ordinary shares outstanding[63](index=63&type=chunk) [Segment Information](index=35&type=section&id=18.%20分部信息) The Group is divided into seven reporting segments based on products and services: oil/liquid chemicals, containers, bulk and general cargo, grain, passenger ro-ro, port value-added and support, and automobile terminal businesses, with management allocating resources and assessing performance based on the operating results of each business unit - The Group has seven reporting segments: **oil/liquid chemicals, containers, bulk and general cargo, grain, passenger ro-ro, port value-added and support, and automobile terminal businesses**[64](index=64&type=chunk)[66](index=66&type=chunk) - Segment performance is assessed based on adjusted total profit, and segment assets and liabilities do not include headquarters' assets and liabilities[64](index=64&type=chunk) [Events After the Balance Sheet Date](index=40&type=section&id=19.%20資產負債表日後事項) As of the report date, the company's second phase share repurchase plan, approved in September 2024, is ongoing, with a cumulative repurchase of **333.71 million A-shares** - As of June 30, 2025, the company had cumulatively repurchased **333.71 million A-shares**, and the share repurchase is ongoing[74](index=74&type=chunk) [Management Discussion and Analysis](index=41&type=section&id=管理層討論與分析) [Overview](index=41&type=section&id=概%20述) In H1 2025, the global economy faced multiple challenges, while the domestic economy continued its recovery, with national port cargo throughput increasing by **4.0%** year-on-year; the Group's main businesses, including oil/liquid chemicals, containers, automobiles, bulk and general cargo, grain, passenger ro-ro, and port value-added and support services, each faced distinct macroeconomic and industry influences - In H1 2025, the global macroeconomic environment faced multiple challenges including geopolitical conflicts and trade protectionism, while the domestic economy continued to recover but still encountered difficulties[75](index=75&type=chunk) - In H1 2025, national ports completed a cargo throughput of **8.90 billion tons**, a **4.0% year-on-year increase**[75](index=75&type=chunk) - The oil products segment faced intense market competition due to tax policy adjustments and the completion of domestic refined oil pipelines; the container segment's business development faced challenges from the Red Sea situation and geopolitical influences[76](index=76&type=chunk) - The automobile segment benefited from increased national and new energy vehicle sales, but the bulk and general cargo segment experienced declining demand due to reduced steel mill operating rates[77](index=77&type=chunk) [Overall Performance Review](index=42&type=section&id=整體業績回顧) In H1 2025, the Group's net profit attributable to parent company shareholders increased by **110.8%** year-on-year, with basic earnings per share up **111.7%**, driven by increased revenue from oil storage, grain, and container businesses, enhanced cost control, reversal of credit impairment losses, and higher investment income, including some one-off profit factors Key Financial Indicators Change in H1 2025 (Year-on-Year) | Indicator | Change (%) | | :--- | :--- | | Net Profit Attributable to Parent Company Shareholders | 110.8 | | Basic Earnings Per Share | 111.7 | | Operating Revenue | 5.9 | | Operating Costs | -5.7 | | Gross Profit | 44.9 | | Gross Profit Margin | Increased by 8.5 percentage points | | Administrative Expenses | -7.7 | | Research and Development Expenses | -49.3 | | Finance Costs | 13.7 | | Credit Impairment Losses | -489.0 | | Other Income | -39.3 | | Investment Income | 2,107.2 | | Income Tax Expense | 71.9 | - Significant net profit growth is primarily attributed to increased revenue from **oil storage, grain, and container businesses**, enhanced cost control, reversal of credit impairment losses, and higher investment income from joint ventures and associates[79](index=79&type=chunk) - Operating revenue increased by **5.9%**, mainly driven by increased revenue from **oil storage, grain, and container businesses** and an expanded consolidation scope, though the decline in high-margin bulk and general cargo volume and reduced China-Europe freight train business constrained the growth rate[80](index=80&type=chunk) - Gross profit margin increased by **8.5 percentage points to 31.5%**, primarily benefiting from revenue growth in **oil storage, grain, and container businesses**[81](index=81&type=chunk) [Assets and Liabilities](index=44&type=section&id=資產負債情況) As of June 30, 2025, the Group's total assets were **RMB 57.73 billion** and net assets were **RMB 43.76 billion**, with net assets per share at **RMB 1.68**, a slight increase from year-end 2024, and the asset-liability ratio at **24.2%**, a **3.2 percentage point decrease** from year-end 2024, primarily due to repayment of interest-bearing debt Key Balance Sheet Data (As of June 30, 2025) | Indicator | Amount (RMB) | Change from Year-End 2024 | | :--- | :--- | :--- | | Total Assets | 57,731,364,852.63 | Decreased by 3.44% | | Net Assets | 43,758,526,004.20 | Increased by 0.82% | | Net Assets Per Share | 1.68 | Slightly increased (vs 1.66) | | Total Liabilities | 13,972,838,848.43 | Decreased by 14.72% | | Asset-Liability Ratio | 24.2% | Decreased by 3.2 percentage points (vs 27.4%) | - The decrease in the asset-liability ratio is primarily attributed to the repayment of interest-bearing debt[85](index=85&type=chunk) [Financial Resources and Liquidity](index=45&type=section&id=財務資源及流動性) As of June 30, 2025, the Group's cash and cash equivalents balance was **RMB 5.22 billion**, with net cash inflow from operating activities of **RMB 2.84 billion**, net cash outflow from investing activities of **RMB 66 million**, and net cash outflow from financing activities of **RMB 2.80 billion**; the Group maintains a sound financial position with a net debt-to-equity ratio of **12.2%**, unused bank credit lines totaling **RMB 20.89 billion**, and an **AAA credit rating** Cash Flow and Debt Situation (As of June 30, 2025) | Indicator | Amount (RMB) | Change from Year-End 2024 | | :--- | :--- | :--- | | Cash and Cash Equivalents Balance | 5,223,372,080.46 | Decreased by 25.19 million | | Net Cash Inflow from Operating Activities | 2,841,071,834.72 | - | | Net Cash Outflow from Investing Activities | 66,495,121.56 | - | | Net Cash Outflow from Financing Activities | 2,800,433,712.16 | - | | Total Outstanding Borrowings | 5,773,079,813.06 | - | | Net Debt-to-Equity Ratio | 12.2% | Decreased by 5.7 percentage points (vs 17.9%) | - The Group has **RMB 20.89 billion** in unused bank credit lines and an **AAA credit rating**, indicating strong qualifications for capital market financing[88](index=88&type=chunk) - The Group closely monitors interest rate and exchange rate risks, having not entered into any foreign exchange hedging contracts as of June 30, 2025[88](index=88&type=chunk) [Capital Expenditures](index=46&type=section&id=資本性開支) In H1 2025, the Group's capital investment completion amounted to **RMB 76.37 million**, primarily funded by accumulated operating capital and external financing Capital Expenditures (As of June 30, 2025) | Item | Amount (RMB) | | :--- | :--- | | Capital Investment Completion | 76,366,736.75 | - Capital expenditure funding primarily originates from accumulated operating capital and other external financing sources[89](index=89&type=chunk) [Contingent Matters](index=46&type=section&id=或有事項) The Group's subsidiary, Dalian Container Terminal Logistics Co., Ltd., is involved in multiple pending lawsuits and arbitrations with total claims amounting to **RMB 1.06 billion**; some cases have initial judgments involving compensation for cargo losses and interest, while others are under retrial or enforcement, and the Group has accrued **RMB 148 million** in provisions for these cases, emphasizing that the parent company and other subsidiaries do not bear guarantee or joint liability - The subsidiary Terminal Logistics Company is involved in multiple pending lawsuits, with total claims amounting to **RMB 1.06 billion**[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk) - Some cases have ruled that Terminal Logistics Company must pay compensation, for example, the Qingdao Kaitou Company case ordered compensation for cargo losses of **RMB 319 million** plus interest[96](index=96&type=chunk) - As of June 30, 2025, the Group had accrued total provisions of **RMB 148 million** for these litigation cases[103](index=103&type=chunk) - The company and its other subsidiaries do not bear guarantee or joint liability for any related responsibilities of Terminal Logistics Company[103](index=103&type=chunk) [Analysis of Business Segment Performance](index=51&type=section&id=各項業務的表現分析) This section provides a detailed analysis of the Group's major business segments' operating performance in H1 2025, including year-on-year changes in throughput, operating revenue, gross profit, and gross profit margin, and explains the key drivers for growth or decline in each business [Oil Products Segment](index=51&type=section&id=油品部分) In H1 2025, oil and chemical product throughput increased by **6.9%** year-on-year to **30.84 million tons**, with crude oil throughput up **14.2%**; operating revenue surged by **112.5%** to **RMB 1.10 billion**, gross profit grew by **3,134.9%**, and gross profit margin increased by **49.0 percentage points to 52.5%**, primarily driven by increased crude oil storage revenue Oil Products Segment Throughput and Performance (H1 2025) | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Oil and Chemical Product Throughput (million tons) | 30.84 | 28.85 | 6.9 | | Crude Oil Throughput (million tons) | 21.67 | 18.97 | 14.2 | | Operating Revenue (RMB) | 1,100,769,232.96 | 517,936,021.32 | 112.5 | | Gross Profit (RMB) | 578,248,993.00 | 17,875,240.83 | 3,134.9 | | Gross Profit Margin | 52.5% | 3.5% | Increased by 49.0 percentage points | - Crude oil throughput growth primarily benefited from the development of trade oil, futures oil storage, transshipment businesses, and the transshipment and direct unloading of imported crude oil for portside refineries[105](index=105&type=chunk) - Refined oil throughput decreased by **4.4%**, affected by the commissioning of the Fujin-Zhengzhou pipeline and adjustments to national refined oil export tax rebate policies[105](index=105&type=chunk) [Container Segment](index=53&type=section&id=集裝箱部分) In H1 2025, container throughput increased by **4.0%** year-on-year to **5.48 million TEU**; operating revenue decreased by **8.7%** to **RMB 1.78 billion**, mainly due to reduced China-Europe freight train and sea-rail intermodal volumes; gross profit increased by **14.5%** to **RMB 602 million**, and gross profit margin rose by **6.8 percentage points to 33.9%**, primarily benefiting from increased foreign trade container volume and rates Container Segment Throughput and Performance (H1 2025) | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Container Throughput (million TEU) | 5.48 | 5.27 | 4.0 | | Operating Revenue (RMB) | 1,774,570,081.89 | 1,944,243,926.16 | -8.7 | | Gross Profit (RMB) | 602,242,205.81 | 525,944,457.65 | 14.5 | | Gross Profit Margin | 33.9% | 27.1% | Increased by 6.8 percentage points | - Throughput growth was primarily achieved by strengthening route market development, expanding direct shipping route capacity at ports, and developing incremental business[109](index=109&type=chunk) - Operating revenue decreased mainly due to reduced volumes from China-Europe freight trains, sea-rail intermodal transport, and lower transportation income[110](index=110&type=chunk) [Automobile Segment](index=54&type=section&id=汽車部分) In H1 2025, the automobile segment's complete vehicle handling volume decreased by **0.9%** year-on-year to **347,000 vehicles**, with foreign trade volume down **11.4%**; operating revenue increased by **9.8%** to **RMB 30.66 million**, gross profit grew by **52.1%**, and gross profit margin rose by **8.0 percentage points to 29.0%**, primarily driven by increased Haiga Automobile business volume Automobile Segment Throughput and Performance (H1 2025) | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Complete Vehicle Handling Volume (million vehicles) | 0.35 | 0.35 | -0.9 | | Foreign Trade Automobiles (million vehicles) | 0.03 | 0.04 | -11.4 | | Operating Revenue (RMB) | 30,658,482.53 | 27,916,045.31 | 9.8 | | Gross Profit (RMB) | 8,901,574.91 | 5,852,089.56 | 52.1 | | Gross Profit Margin | 29.0% | 21.0% | Increased by 8.0 percentage points | - The decrease in complete vehicle handling volume was primarily due to changes in import tax policies by importing countries, leading to a decline in foreign trade commercial vehicle throughput[112](index=112&type=chunk) - Operating revenue and gross profit growth were mainly driven by increased business volume from Haiga Automobile[113](index=113&type=chunk) [Bulk and General Cargo Segment](index=55&type=section&id=散雜貨部分) In H1 2025, bulk and general cargo throughput decreased by **1.9%** year-on-year to **72.78 million tons**, with steel and ore throughput down **6.1%** and **7.5%** respectively; operating revenue decreased by **3.4%** to **RMB 1.72 billion**, gross profit fell by **20.3%** to **RMB 370 million**, and gross profit margin declined by **4.6 percentage points to 21.5%**, primarily due to the combined impact of reduced high-rate ore and steel volumes and increased depreciation Bulk and General Cargo Segment Throughput and Performance (H1 2025) | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Bulk and General Cargo Throughput (million tons) | 72.78 | 74.19 | -1.9 | | Steel Throughput (million tons) | 10.49 | 11.17 | -6.1 | | Ore Throughput (million tons) | 25.10 | 27.13 | -7.5 | | Operating Revenue (RMB) | 1,718,809,609.60 | 1,779,239,482.92 | -3.4 | | Gross Profit (RMB) | 369,814,025.96 | 464,140,994.08 | -20.3 | | Gross Profit Margin | 21.5% | 26.1% | Decreased by 4.6 percentage points | - Steel throughput decreased due to weak market supply and demand and slow release of end-use steel demand; ore throughput decreased due to reduced demand for imported ore and steel mills adjusting their blending ratios[115](index=115&type=chunk) - The decline in gross profit and gross profit margin was primarily due to the combined effect of reduced high-rate ore and steel volumes and increased depreciation[117](index=117&type=chunk) [Grain Segment](index=56&type=section&id=散糧部分) In H1 2025, grain terminal throughput increased by **17.4%** year-on-year to **9.31 million tons**, with corn throughput surging by **73.4%**; operating revenue grew by **17.3%** to **RMB 418 million**, gross profit increased by **62.0%**, and gross profit margin rose by **7.7 percentage points to 28.1%**, primarily influenced by increased corn throughput Grain Segment Throughput and Performance (H1 2025) | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Grain Throughput (million tons) | 9.31 | 7.93 | 17.4 | | Corn Throughput (million tons) | 6.98 | 4.03 | 73.4 | | Soybean Throughput (million tons) | 1.56 | 1.97 | -21.1 | | Operating Revenue (RMB) | 417,850,244.99 | 356,336,204.77 | 17.3 | | Gross Profit (RMB) | 117,552,942.61 | 72,541,721.71 | 62.0 | | Gross Profit Margin | 28.1% | 20.4% | Increased by 7.7 percentage points | - Corn throughput growth primarily benefited from tighter imported grain supply and the turnaround in hog farming profitability driving increased domestic corn demand[119](index=119&type=chunk) - Soybean throughput decreased due to delayed Brazilian soybean harvest leading to supply tightness, and US tariffs impacting American soybean imports[119](index=119&type=chunk) [Passenger Ro-Ro Segment](index=58&type=section&id=客運滾裝部分) In H1 2025, passenger ro-ro terminal passenger throughput increased by **9.1%** year-on-year to **1.38 million passengers**, but ro-ro throughput decreased by **5.7%** to **379,000 vehicles**; operating revenue declined by **9.6%** to **RMB 87.46 million**, gross profit fell by **34.3%**, and gross profit margin decreased by **5.5 percentage points to 14.5%**, primarily due to reduced ro-ro capacity Passenger Ro-Ro Segment Throughput and Performance (H1 2025) | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Passenger Throughput (million passengers) | 1.38 | 1.27 | 9.1 | | Ro-Ro Throughput (million vehicles) | 0.38 | 0.40 | -5.7 | | Operating Revenue (RMB) | 87,461,769.49 | 96,744,497.69 | -9.6 | | Gross Profit (RMB) | 12,706,707.54 | 19,331,980.07 | -34.3 | | Gross Profit Margin | 14.5% | 20.0% | Decreased by 5.5 percentage points | - The decline in ro-ro throughput, operating revenue, and gross profit was primarily influenced by factors such as passenger ro-ro vessel dry-dock maintenance and partial capacity transfers, leading to fewer outbound voyages[122](index=122&type=chunk)[123](index=123&type=chunk)[124](index=124&type=chunk) [Value-Added Services Segment](index=59&type=section&id=增值服務部分) In H1 2025, the value-added services segment's operating revenue decreased by **11.7%** year-on-year to **RMB 480 million**, and gross profit fell by **5.6%** to **RMB 170 million**; gross profit margin increased by **2.3 percentage points to 35.5%**, primarily because the revenue decline was less than the cost decline Value-Added Services Segment Performance (H1 2025) | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 480,485,858.20 | 543,902,955.20 | -11.7 | | Gross Profit (RMB) | 170,474,369.47 | 180,500,658.84 | -5.6 | | Gross Profit Margin | 35.5% | 33.2% | Increased by 2.3 percentage points | - Operating revenue decreased mainly due to lower income from tugboats, railways, and other services[125](index=125&type=chunk) - The increase in gross profit margin was primarily because the decrease in revenue was less than the decrease in costs[126](index=126&type=chunk) [Outlook for H2 2025](index=60&type=section&id=對2025年下半年的展望) Looking ahead to H2 2025, the domestic economy is expected to continue its positive trend, with stable growth in export trade, though rising costs for raw materials, freight, and labor will increase production costs for foreign trade enterprises; the Group will formulate specific market development measures for each business segment, including solidifying oil product transshipment, advancing container hub port construction, strengthening automobile foreign trade routes, expanding domestic corn and policy grain sources, developing cargo ro-ro business, and optimizing steel, coal, and iron ore business models - In H2 2025, the domestic economy is expected to continue its positive trend, with stable growth in export trade, but rising costs will increase production expenses for foreign trade enterprises[127](index=127&type=chunk) - The oil products segment will solidify key client transshipment business, actively develop the Bohai Rim transshipment market, and strengthen cooperation with traders[128](index=128&type=chunk) - The container segment will anchor its development strategy on 'routes + transshipment + logistics,' accelerate hub port construction, and deepen its Bohai Rim strategy[129](index=129&type=chunk) - The grain segment will vigorously expand domestic corn and policy grain sources, optimize the grain shipping system, and facilitate the north-to-south grain transportation logistics channel[131](index=131&type=chunk) - The bulk and general cargo segment will enrich its steel domestic and foreign trade route network, utilize the combined port model to address unloading capacity shortcomings, and proactively plan for 'strategic reserves' and the 'Simandou iron ore' project[133](index=133&type=chunk) [Other Information](index=62&type=section&id=其他信息) [Supplementary Information to 2024 Annual Report](index=62&type=section&id=有關2024年年報補充信息) The company confirms that, apart from related party transactions disclosed in the 2024 Annual Report's Directors' Report, other related party transactions do not constitute discloseable, circular, shareholder approval, and/or reporting-required connected transactions or continuing connected transactions under the Listing Rules, and all Listing Rules requirements have been complied with - The company has complied with the requirements of Chapter 14A of the Listing Rules regarding its disclosed transactions[134](index=134&type=chunk) [Interim Dividend](index=62&type=section&id=中期股息) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for H1 2025[135](index=135&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=62&type=section&id=購買、出售或贖回本公司的上市證券) From January 1 to June 30, 2025, the company repurchased **96,357,247 A-shares** on the Shanghai Stock Exchange for a total purchase price of **RMB 144.70 million**, with prices ranging from **RMB 1.45 to RMB 1.59 per share**, and these repurchased shares have not yet been cancelled A-Share Repurchase Status in H1 2025 | Indicator | Data | | :--- | :--- | | Number of A-Shares Repurchased | 96,357,247 shares | | Highest Price Per Share (RMB) | 1.59 | | Lowest Price Per Share (RMB) | 1.45 | | Total Purchase Price (RMB) | 144,695,372.94 | - As of the announcement date, all **96,357,247 A-shares** repurchased under the second phase share repurchase plan have not yet been cancelled[136](index=136&type=chunk) - Except for the aforementioned disclosures, neither the company nor any of its subsidiaries engaged in other purchases or sales of listed securities in H1 2025[137](index=137&type=chunk) [Compliance with Corporate Governance Code](index=63&type=section&id=遵守企業管治常規守則) For the six months ended June 30, 2025, the company has complied with all code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules - The company has complied with all code provisions of the Corporate Governance Code[138](index=138&type=chunk) [Standard Securities Dealing Code for Directors](index=63&type=section&id=董事進行證券交易的標準守則) The company has adopted a code of conduct substantially similar to the Standard Securities Dealing Code for Directors of Listed Issuers, and all directors and supervisors have complied with this code during the reporting period - All directors and supervisors have complied with the standards set out in the Standard Code and related codes of conduct during the reporting period[139](index=139&type=chunk) [Audit Committee](index=63&type=section&id=審計委員會) The company's Audit Committee comprises Ms. Cheng Chaoying (Chairperson), an independent non-executive director, Mr. Wang Zhu, a non-executive director, and Mr. Chen Weixi, an independent non-executive director, and has reviewed the unaudited interim results for the six months ended June 30, 2025 - The Audit Committee has reviewed the unaudited interim results for the six months ended June 30, 2025[140](index=140&type=chunk) [Other Significant Changes](index=64&type=section&id=其他重大變動) As of June 30, 2025, no other significant changes requiring disclosure under paragraph 46 of Appendix D2 to the Listing Rules have occurred, other than those disclosed in this announcement - As of June 30, 2025, no other significant changes requiring disclosure under the Listing Rules have occurred[141](index=141&type=chunk) [Board of Directors](index=64&type=section&id=董事會成員) The company's Board of Directors includes executive directors Li Guofeng and Wei Minghui, non-executive directors Wang Zhu, Huang Zhenzhou, and Yang Bing, and independent non-executive directors Liu Chunyan, Cheng Chaoying, and Chen Weixi - The Board of Directors includes executive directors, non-executive directors, and independent non-executive directors[142](index=142&type=chunk)

[Company Information](index=4&type=section&id=Company%20Information) Weiye Holdings Limited's board comprises an executive director and three independent non-executive directors, supported by key committees for governance [Board of Directors and Committee Composition](index=4&type=section&id=Board%20of%20Directors%20and%20Committee%20Composition) The board includes an executive director and three independent non-executive directors, with dedicated audit, nomination, and remuneration committees - Executive Director is **Mr. Chen Zhiyong**[5](index=5&type=chunk) - Independent Non-Executive Directors include **Mr. Liu Ning**, **Mr. Dong Xincheng**, and **Ms. Chen Shimin**[5](index=5&type=chunk) - Ms. Chen Shimin chairs the Audit Committee, Mr. Dong Xincheng chairs the Nomination Committee, and Mr. Liu Ning chairs the Remuneration Committee[5](index=5&type=chunk) [Company Contact and Service Institutions](index=4&type=section&id=Company%20Contact%20and%20Service%20Institutions) The company's headquarters are in Zhengzhou, with a Hong Kong office, Singapore registered office, and BDO as auditor - Company headquarters and principal place of business are in Zhengdong New District, Zhengzhou, Henan, China[5](index=5&type=chunk) - Auditor is **BDO Limited, Hong Kong**[5](index=5&type=chunk) - Hong Kong Share Registrar is **Tricor Investor Services Limited**[5](index=5&type=chunk) [Financial Summary](index=5&type=section&id=Financial%20Summary) For H1 2025, revenue from continuing operations decreased significantly, but the loss attributable to owners narrowed substantially [Unaudited Consolidated Results for the Six Months Ended June 30, 2025](index=5&type=section&id=Unaudited%20Consolidated%20Results%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025) H1 2025 saw a 64.3% revenue drop and 82.2% gross profit decline, yet loss attributable to owners narrowed by 69.0% Financial Summary for the Six Months Ended June 30 (Unaudited) | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 11,418 | 31,985 | -64.3% | | Gross Profit | 2,013 | 11,272 | -82.2% | | Loss attributable to owners of the company | (22,240) | (71,710) | -69.0% | | Loss per share (RMB cents) | (11.34) | (35.57) | -68.1% | - The company's ordinary shares have been listed and traded on the Main Board of The Stock Exchange of Hong Kong Limited since April 6, 2016[6](index=6&type=chunk) [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) H1 2025 financial performance shows reduced property development revenue but improved cost control and narrowed net loss [Financial Review](index=6&type=section&id=Financial%20Review) Property development revenue and gross profit declined, but cost controls reduced expenses, and net finance costs decreased Revenue and Gross Profit from Continuing Operations (Six Months Ended June 30) | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Property development sales | 11,418 | 31,985 | -64.3% | | Property development gross profit | 2,013 | 11,272 | -82.2% | | Property development gross profit margin | 18% | 35% | -17 percentage points | - The decrease in property development gross profit margin was mainly due to **50% of total revenue** from commercial unit sales (contributing **34% gross profit margin**), offset by residential unit sales with lower gross profit margins[11](index=11&type=chunk) - Sales and distribution expenses decreased by approximately **56%** and administrative expenses by approximately **54%** compared to the same period in 2024, primarily due to reduced promotional activities and cost control measures[12](index=12&type=chunk)[13](index=13&type=chunk) Net Finance Costs (Six Months Ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Interest expense | (9,627) | (17,860) | -46.1% | | Interest income | 127 | 407 | -68.8% | | Net finance costs | (9,500) | (17,453) | -45.6% | - Tax expense was approximately **RMB 41 thousand** (2024 tax credit: RMB 21,383 thousand), mainly due to deferred tax expense resulting from reduced profit[16](index=16&type=chunk) - Investment in joint ventures decreased by **RMB 110,000,000**, primarily due to the court-ordered transfer of a **51% equity interest** in Hanfang Pharmaceutical[17](index=17&type=chunk) - Trade and other receivables increased by approximately **RMB 89,800,000**, mainly due to the court-ordered confirmation of receivables from Feng Chaoling of approximately **RMB 105,600,000**[17](index=17&type=chunk) - Net current assets as of June 30, 2025, were approximately **RMB 1,120,400,000**, an increase of **RMB 90,800,000** from December 31, 2024[18](index=18&type=chunk) [Outlook](index=9&type=section&id=Outlook) China's economy and real estate market are expected to stabilize, prompting the Group to accelerate property destocking and asset revitalization - China's macro economy is expected to maintain stable growth, and the real estate market and investment sentiment will gradually stabilize and recover, benefiting from policy tailwinds such as relaxed home purchase and loan restrictions[19](index=19&type=chunk) - The Group will actively accelerate the destocking of completed properties while exploring the feasibility of asset revitalization, including but not limited to changing property use and selling all properties[19](index=19&type=chunk) [Disclosure of Interests](index=10&type=section&id=Disclosure%20of%20Interests) This section details the shareholdings and interests of the company's directors, chief executive, and substantial shareholders [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares, and Debentures of the Company and its Associated Corporations](index=10&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%2C%20and%20Debentures%20of%20the%20Company%20and%20its%20Associated%20Corporations) Executive Director Mr. Chen Zhiyong holds a 20.52% beneficial interest, being the only director with a disclosable significant interest Directors' and Chief Executive's Interests | Director's Name | Capacity/Nature of Interest | Number of Securities | Approximate Percentage of Interest | | :--- | :--- | :--- | :--- | | Mr. Chen Zhiyong | Beneficial interest | 40,240,256 (L) | 20.52% | - Save for Mr. Chen Zhiyong, no other directors or chief executives had any disclosable interests or short positions in the shares, underlying shares, or debentures of the Company or its associated corporations[20](index=20&type=chunk) [Interests and Short Positions of Substantial Shareholders and Other Persons in Shares and Underlying Shares](index=11&type=section&id=Interests%20and%20Short%20Positions%20of%20Substantial%20Shareholders%20and%20Other%20Persons%20in%20Shares%20and%20Underlying%20Shares) Substantial shareholder Mr. Zhang Wei holds a combined 54.46% interest, directly and indirectly through Meiyi Holdings Limited Substantial Shareholders' Interests | Name of Substantial Shareholder | Capacity/Nature of Interest | Number and Class of Securities | Approximate Percentage of Interest | | :--- | :--- | :--- | :--- | | Mr. Zhang Wei | Beneficial interest | 91,029,648 (L) | 46.41% | | | Controlled corporation interest (Note) | 15,792,290 (L) | 8.05% | | Meiyi Holdings Limited | Beneficial interest | 15,792,290 (L) | 8.05% | - Mr. Zhang Wei is deemed to be interested in the **15,792,290 shares** held by Meiyi Holdings Limited[21](index=21&type=chunk) [Corporate Governance and Other Information](index=12&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section covers the Group's employee policies, investment holdings, capital structure, and compliance with governance codes [Employees and Remuneration Policy](index=12&type=section&id=Employees%20and%20Remuneration%20Policy) The Group's employee count significantly decreased to 33, with total employee benefit expenses reduced by 72% - As of June 30, 2025, the Group had **33 employees**, a significant decrease from 243 in 2024[23](index=23&type=chunk) Total Employee Benefit Expenses (Six Months Ended June 30) | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Total employee benefit expenses | 4,200 | 15,100 | [Material Investments Held](index=12&type=section&id=Material%20Investments%20Held) The Group held no material equity investments in other companies during the period, apart from subsidiaries and joint ventures - For the six months ended June 30, 2025, the Group did not hold any material investments in the equity of any other company[24](index=24&type=chunk) [Material Acquisitions and Disposals](index=12&type=section&id=Material%20Acquisitions%20and%20Disposals) The Group had no material acquisitions or disposals of subsidiaries during the period, beyond those disclosed - For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries[25](index=25&type=chunk) [Net Gearing Ratio](index=12&type=section&id=Net%20Gearing%20Ratio) The Group's net gearing ratio slightly increased to 76% as of June 30, 2025, from 73% at the end of 2024 Net Gearing Ratio | Date | Net Gearing Ratio | | :--- | :--- | | June 30, 2025 | 76% | | December 31, 2024 | 73% | [Foreign Exchange Risk](index=12&type=section&id=Foreign%20Exchange%20Risk) The Group's primary operations in RMB and SGD lead to a non-significant foreign exchange risk, with no hedging instruments used - The Group's property development business primarily operates in **RMB** and **SGD**, with most monetary assets and liabilities denominated in RMB and SGD[27](index=27&type=chunk) - The Directors believe the Group's foreign exchange risk is not significant, and no financial instruments are used for hedging[27](index=27&type=chunk) [Contingent Liabilities](index=12&type=section&id=Contingent%20Liabilities) Details of the Group's contingent liabilities are provided in Note 18 of the condensed consolidated financial statements - Details of the Group's contingent liabilities are set out in Note 18 to the condensed consolidated financial statements for the six months ended June 30, 2025[28](index=28&type=chunk) [Share Capital](index=13&type=section&id=Share%20Capital) The Company's issued share capital remained unchanged for the six months ended June 30, 2025, as detailed in Note 13 - For the six months ended June 30, 2025, there was no change in the Company's issued share capital[29](index=29&type=chunk) - Details of share capital are set out in Note 13 to the condensed consolidated financial statements[29](index=29&type=chunk) [Compliance with Corporate Governance Code](index=13&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Company consistently complied with all applicable provisions of the Corporate Governance Code throughout the reporting period - The Company has complied with all applicable code provisions of the Corporate Governance Code throughout the six months ended June 30, 2025[30](index=30&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=13&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) The Company did not engage in any purchase, redemption, or sale of its listed securities during the reporting period - For the six months ended June 30, 2025, the Company did not purchase, redeem, or sell any of its listed securities[31](index=31&type=chunk) [Interim Dividend](index=13&type=section&id=Interim%20Dividend) The Board does not recommend declaring any interim dividend for the six months ended June 30, 2025 - The Board does not recommend the declaration of an interim dividend for the six months ended June 30, 2025[32](index=32&type=chunk) [Share Option Scheme](index=13&type=section&id=Share%20Option%20Scheme) As of June 30, 2025, the Company did not have any share option scheme in place - As of June 30, 2025, there was no share option scheme[33](index=33&type=chunk) [Events After Reporting Period](index=13&type=section&id=Events%20After%20Reporting%20Period) No significant events occurred after the reporting period and up to the date of this report - No significant events occurred after the six months ended June 30, 2025, and up to the date of this report[34](index=34&type=chunk) [Competition and Conflicts of Interest](index=13&type=section&id=Competition%20and%20Conflicts%20of%20Interest) No directors, controlling shareholders, or their associates had competing businesses or conflicts of interest with the Group - For the six months ended June 30, 2025, no director, controlling shareholder, or their respective associates engaged in any business competing or likely to compete with the Group's business or had any other conflicts of interest with the Group[35](index=35&type=chunk) [Audit Committee](index=14&type=section&id=Audit%20Committee) The Audit Committee, composed of three independent non-executive directors, has reviewed the Group's H1 2025 consolidated results - The Audit Committee comprises three independent non-executive directors: Ms. Chen Shimin (Chairperson), Mr. Dong Xincheng, and Mr. Liu Ning[36](index=36&type=chunk) - The Audit Committee has reviewed the Group's consolidated results for the six months ended June 30, 2025[36](index=36&type=chunk) [Changes in Directors' Information](index=14&type=section&id=Changes%20in%20Directors'%20Information) No changes in directors' information requiring disclosure occurred since the 2024 annual report - No changes in directors' information requiring disclosure under Rule 13.51B(1) of the Listing Rules have occurred since the publication of the Company's annual report for the year ended December 31, 2024, and up to the date of this report[37](index=37&type=chunk) [Standard Code for Securities Transactions by Directors](index=14&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) All directors confirmed compliance with the Model Code for securities transactions during the reporting period - The Company has adopted the Model Code set out in Appendix C3 of the Listing Rules as its own code of conduct regarding directors' securities transactions[38](index=38&type=chunk) - All Directors confirmed that they have complied with all relevant provisions of the Model Code throughout the six months ended June 30, 2025[38](index=38&type=chunk) [Audit or Review of Financial Results](index=14&type=section&id=Audit%20or%20Review%20of%20Financial%20Results) The Group's H1 2025 consolidated results have not been audited or reviewed by the Company's auditor - The Company's auditor has not audited or reviewed the Group's consolidated results for the six months ended June 30, 2025[39](index=39&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=15&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) H1 2025 saw a significant revenue decline and reduced gross profit, but the period's loss narrowed to RMB 22,997 thousand [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income for the Six Months Ended June 30, 2025](index=15&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025) Revenue from continuing operations decreased, leading to a substantial gross profit reduction, but the period's loss narrowed to RMB 22,997 thousand Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Six Months Ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 11,418 | 31,985 | | Gross Profit | 2,013 | 11,272 | | Operating results | (13,456) | (65,673) | | Net finance costs | (9,500) | (17,453) | | Loss before tax | (22,956) | (83,126) | | Tax expense | (41) | 21,383 | | Loss for the period from continuing operations | (22,997) | (61,743) | | Profit/(Loss) for the period from discontinued operations | – | (2,115) | | **Loss for the period** | (22,997) | (63,858) | | Loss attributable to owners of the company | (22,240) | (71,710) | | Total comprehensive loss for the period | (23,770) | (63,493) | | Basic loss per share (RMB cents) | (11.34) | (36.56) | [Condensed Consolidated Statement of Financial Position](index=17&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, non-current assets decreased due to joint venture transfer, while current assets and net current assets increased [Condensed Consolidated Statement of Financial Position as of June 30, 2025](index=17&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position%20as%20of%20June%2030%2C%202025) Non-current assets decreased due to joint venture transfer, while current assets and net current assets increased, with total equity slightly reduced Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | **Total non-current assets** | 588,144 | 702,725 | | Property, plant and equipment | 9,994 | 11,236 | | Investment properties | 463,000 | 466,000 | | Joint ventures | – | 110,000 | | **Total current assets** | 3,074,023 | 2,995,424 | | Properties under development and prepaid costs | 1,845,474 | 1,833,008 | | Trade and other receivables | 936,813 | 847,062 | | Cash and cash equivalents | 7,617 | 31,220 | | **Total current liabilities** | 1,953,639 | 1,965,865 | | Loans and borrowings (current) | 858,883 | 853,996 | | Trade and other payables | 761,051 | 789,059 | | **Net current assets** | 1,120,384 | 1,029,559 | | **Net assets** | 1,296,248 | 1,320,018 | | **Total equity** | 1,296,248 | 1,320,018 | [Condensed Consolidated Statement of Cash Flows](index=19&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) H1 2025 saw improved net cash used in operating activities, but overall cash and cash equivalents decreased to RMB 2,654 thousand [Condensed Consolidated Statement of Cash Flows for the Six Months Ended June 30, 2025](index=19&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025) Net cash used in operating activities improved significantly, but overall cash and cash equivalents decreased to RMB 2,654 thousand Condensed Consolidated Statement of Cash Flows (Six Months Ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Net cash used in operating activities | (18,508) | (195,005) | | Net cash from investing activities | 418 | 7,102 | | Net cash from financing activities | 13,861 | 164,378 | | Net decrease in cash and cash equivalents | (4,229) | (23,525) | | Cash and cash equivalents at beginning of financial period | 7,656 | 41,423 | | Effect of exchange rate changes on cash held | (773) | 185 | | **Cash and cash equivalents at end of financial period** | 2,654 | 18,083 | [Condensed Consolidated Statement of Changes in Equity](index=21&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) Equity attributable to owners decreased to RMB 964,540 thousand due to period loss and exchange differences [Condensed Consolidated Statement of Changes in Equity for the Six Months Ended June 30, 2025](index=21&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025) Equity attributable to owners decreased to RMB 964,540 thousand due to the period's loss and other comprehensive loss from exchange differences Condensed Consolidated Statement of Changes in Equity (As of June 30, 2025) | Item | 2025 (RMB '000) | 2025 (RMB '000) | | :--- | :--- | :--- | | | June 30 | January 1 | | Share capital | 359,700 | 359,700 | | Merger reserve | (59,669) | (59,669) | | Capital reserve | (550) | (550) | | Other reserves | (4,391) | (4,391) | | Exchange fluctuation reserve | (21,333) | (20,560) | | Statutory reserve | 135,915 | 135,915 | | Retained earnings | 554,868 | 577,108 | | **Total equity attributable to owners of the company** | 964,540 | 987,553 | | Non-controlling interests | 331,708 | 332,465 | | **Total equity** | 1,296,248 | 1,320,018 | - Total comprehensive loss for the period was **RMB (23,770) thousand**, of which **RMB (23,013) thousand** was attributable to owners of the company[47](index=47&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=23&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures for the Group's financial statements [1. General Information](index=23&type=section&id=1.%20General%20Information) Weiye Holdings Limited, incorporated in Singapore and listed in Hong Kong, primarily engages in property development in China - Weiye Holdings Limited was incorporated in the Republic of Singapore and listed on the Main Board of The Stock Exchange of Hong Kong Limited on April 6, 2016[48](index=48&type=chunk) - The Group's principal business is property development in the People's Republic of China[49](index=49&type=chunk) [2. Basis of Preparation and Principal Accounting Policies](index=23&type=section&id=2.%20Basis%20of%20Preparation%20and%20Principal%20Accounting%20Policies) This interim report adheres to HKEX Listing Rules and IAS 34, using accounting policies consistent with the 2024 annual financial statements - This interim financial report is prepared in accordance with the applicable disclosure provisions of Appendix 16 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[50](index=50&type=chunk) - The report was approved for issue on August 28, 2023, and prepared using the same accounting policies adopted in the 2024 annual financial statements[50](index=50&type=chunk) [3. Changes in Accounting Policies](index=24&type=section&id=3.%20Changes%20in%20Accounting%20Policies) The Group adopted amendments to IAS 21 and IFRS 1 effective January 1, 2025, with no significant financial impact expected - The new standards and amendments first adopted by the Group in 2025 are amendments to **IAS 21** and **IFRS 1 "Lack of Exchangeability"**[51](index=51&type=chunk)[52](index=52&type=chunk) - The application of the amended IFRSs is not expected to have a significant impact on the Group's financial position and performance and/or disclosures in these condensed consolidated financial statements for the current and prior periods[52](index=52&type=chunk) [4. Segment Information](index=24&type=section&id=4.%20Segment%20Information) The Group operates in property development and a discontinued equipment manufacturing segment, with revenue solely from property development in H1 2025 - The Group's principal operating segment is **property development**, including commercial and residential property development, resettlement housing construction, and investment property leasing[54](index=54&type=chunk) - The equipment manufacturing segment ceased operations for the year ended December 31, 2024, and was reclassified as a discontinued operation for the periods ended June 30, 2025, and 2024[56](index=56&type=chunk) Segment Revenue and Results Reconciliation (Six Months Ended June 30) | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | **Revenue from external customers** | | | | Property development | 11,418 | 31,985 | | Equipment manufacturing | – | 26,731 | | **Total revenue** | 11,418 | 58,716 | | **Segment results** | | | | Property development | (13,456) | (65,673) | | Equipment manufacturing | – | (1,406) | | **Total segment results** | (13,456) | (67,079) | Geographical Segment Revenue (Six Months Ended June 30) | Region | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | China (Property development) | 11,418 | 31,985 | | China (Equipment manufacturing) | – | 1,942 | | Singapore (Equipment manufacturing) | – | 24,660 | | Other countries (Equipment manufacturing) | – | 129 | | **Total revenue** | 11,418 | 58,716 | [5. Other Income](index=28&type=section&id=5.%20Other%20Income) Total other income decreased to RMB 3,202 thousand, primarily due to a reduced gain on disposal of a joint venture Other Income (Six Months Ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Rental income | 3,074 | 4,600 | | Gain on disposal of property, plant and equipment | 1 | – | | Gain on disposal of a joint venture | – | 916 | | Government grants | 9 | 3 | | Others | 118 | 212 | | **Total** | 3,202 | 5,731 | [6. Net Finance Costs](index=28&type=section&id=6.%20Net%20Finance%20Costs) Net finance costs significantly decreased to RMB 9,500 thousand, driven by lower interest expenses Net Finance Costs (Six Months Ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Interest expense | (9,627) | (17,860) | | Interest income | 127 | 407 | | **Net finance costs** | (9,500) | (17,453) | [7. Taxation](index=29&type=section&id=7.%20Taxation) Tax expense was RMB 41 thousand, a shift from a tax credit, influenced by deferred tax and prior year's land appreciation tax Tax Expense (Six Months Ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Current tax expense | – | (1,558) | | Deferred tax expense | (41) | (121) | | Land appreciation tax expense | – | 23,062 | | **Total** | (41) | 21,383 | - The corporate income tax rate in China has been unified at **25%**, and a **10% withholding tax** is levied on dividends declared to foreign-invested holding companies[69](index=69&type=chunk) - Land appreciation tax is levied at progressive rates ranging from **30% to 60%** on the appreciation of land value, with the actual liability subject to determination by tax authorities[69](index=69&type=chunk)[70](index=70&type=chunk) [8. Loss Before Tax](index=31&type=section&id=8.%20Loss%20Before%20Tax) The Group's loss before tax was primarily influenced by depreciation of property, plant and equipment and amortization of intangible assets Deductions from Loss Before Tax (Six Months Ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 747 | 2,853 | | Amortisation of intangible assets | 20 | 20 | | Write-off of property, plant and equipment | – | 89 | [9. Property, Plant and Equipment](index=31&type=section&id=9.%20Property%2C%20Plant%20and%20Equipment) Expenditure on property, plant and equipment acquisitions was zero for H1 2025, a significant reduction from the prior period Acquisition Expenditure for Property, Plant and Equipment | Period | Acquisition Expenditure (RMB '000) | | :--- | :--- | | Six months ended June 30, 2025 | 0 | | Six months ended June 30, 2024 | 300 | [10. Trade and Other Receivables](index=31&type=section&id=10.%20Trade%20and%20Other%20Receivables) Trade receivables totaled RMB 7,971 thousand, with a significant portion overdue by more than 365 days - Trade receivables are non-interest bearing and generally settled within a period of **30 to 180 days**[73](index=73&type=chunk) Ageing Analysis of Trade Receivables | Ageing | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | | June 30 | December 31 | | 0 to 30 days | – | – | | 31 to 90 days | 295 | – | | 91 to 180 days | – | – | | 181 to 365 days | – | 2,730 | | Over 365 days | 7,676 | 4,946 | | **Total** | 7,971 | 7,676 | [11. Trade and Other Payables](index=32&type=section&id=11.%20Trade%20and%20Other%20Payables) Trade payables, mainly construction costs, totaled RMB 262,922 thousand, with most due within 30 days - Trade payables primarily comprise construction costs payable to third parties[75](index=75&type=chunk) Ageing Summary of Trade Payables | Ageing | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | | June 30 | December 31 | | 0 to 30 days | 247,200 | 263,385 | | 31 to 60 days | – | – | | 61 to 90 days | 796 | – | | Over 90 days | 14,926 | 15,373 | | **Total** | 262,922 | 278,758 | [12. Loans and Borrowings](index=33&type=section&id=12.%20Loans%20and%20Borrowings) Total loans and borrowings were RMB 993,481 thousand, largely secured and due within one year or on demand Total Loans and Borrowings | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | | June 30 | December 31 | | Secured | 903,881 | 903,994 | | Unsecured | 89,600 | 84,600 | | **Total** | 993,481 | 988,594 | - Loans and borrowings are secured by legal mortgages over assets of subsidiaries, property development units, and investment properties; legal mortgages over property, plant and equipment; corporate guarantees from Group companies; and guarantees from third parties[78](index=78&type=chunk) [13. Share Capital](index=34&type=section&id=13.%20Share%20Capital) The Company's issued and fully paid share capital remained unchanged at RMB 359,700 thousand, with 196,133 thousand shares Issued Share Capital | Item | Share Capital (RMB '000) | Number of Shares ('000) | | :--- | :--- | :--- | | As at January 1, 2025 and June 30, 2025 | 359,700 | 196,133 | - Holders of the Company's ordinary shares are entitled to receive declared dividends, and each ordinary share carries one unrestricted voting right[79](index=79&type=chunk) [14. Dividends](index=34&type=section&id=14.%20Dividends) The Board did not declare or propose any interim dividend for the six months ended June 30, 2025 - The Board did not declare or propose any interim dividend for the six months ended June 30, 2025[81](index=81&type=chunk) [15. Loss Per Share](index=35&type=section&id=15.%20Loss%20Per%20Share) Basic and diluted loss per share significantly narrowed to RMB 11.34 cents due to reduced loss from continuing operations Loss Per Share (From Continuing and Discontinued Operations) | Indicator | 2025 (RMB cents) | 2024 (RMB cents) | | :--- | :--- | :--- | | Basic loss per share | (11.34) | (36.56) | | Diluted loss per share | (11.34) | (36.56) | Loss Per Share (From Continuing Operations) | Indicator | 2025 (RMB cents) | 2024 (RMB cents) | | :--- | :--- | :--- | | Basic loss per share | (11.34) | (35.57) | | Diluted loss per share | (11.34) | (35.57) | - As there were no potential dilutive ordinary shares as of June 30, 2025, and June 30, 2024, the calculation of diluted loss per ordinary share is the same as that for basic loss per ordinary share[86](index=86&type=chunk) [16. Net Asset Value](index=37&type=section&id=16.%20Net%20Asset%20Value) Net asset value attributable to owners was RMB 964,540 thousand, with RMB 4.92 per ordinary share Net Asset Value Per Ordinary Share | Date | Net Asset Value Attributable to Owners of the Company (RMB '000) | Number of Ordinary Shares ('000) | Net Asset Value Per Ordinary Share (RMB) | | :--- | :--- | :--- | :--- | | 2025 (June 30) | 964,540 | 196,133 | 4.92 | | 2024 (December 31) | 987,553 | 196,133 | 5.04 | [17. Capital Commitments](index=37&type=section&id=17.%20Capital%20Commitments) Authorized and contracted capital commitments for development expenditure slightly decreased to RMB 106,291 thousand Capital Commitments | Date | Authorized and Contracted Development Expenditure (RMB '000) | | :--- | :--- | | June 30, 2025 | 106,291 | | December 31, 2024 | 107,188 | [18. Contingent Liabilities](index=38&type=section&id=18.%20Contingent%20Liabilities) Contingent liabilities primarily consist of RMB 107,543 thousand in guarantees for property purchasers, released upon receipt of ownership certificates Contingent Liabilities | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | | June 30 | December 31 | | Guarantees provided to financial institutions on behalf of purchasers of property units | 107,543 | 107,543 | - The Group provides loan guarantees for property purchasers and is required to maintain a certain amount of cash in designated bank accounts as collateral[89](index=89&type=chunk) - The guarantees are released when the banks receive the property ownership certificates from the customers[89](index=89&type=chunk) [19. Net Gearing Ratio](index=39&type=section&id=19.%20Net%20Gearing%20Ratio) The net gearing ratio increased to 76% due to higher net debt and slightly reduced total equity Net Gearing Ratio | Date | Net Debt (RMB '000) | Total Equity (RMB '000) | Gearing Ratio | | :--- | :--- | :--- | :--- | | June 30, 2025 | 985,864 | 1,296,248 | 76% | | December 31, 2024 | 957,374 | 1,320,018 | 73% | [20. Share Options](index=39&type=section&id=20.%20Share%20Options) As of June 30, 2025, the Company did not have any share option scheme - As of June 30, 2025, the Company did not have any share option scheme[91](index=91&type=chunk) [21. Contract Balances](index=39&type=section&id=21.%20Contract%20Balances) Contract balances include trade receivables, contract costs, contract assets, and contract liabilities, reflecting revenue recognition and prepayments Contract Balances | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | | June 30 | December 31 | | Trade receivables | 2,995 | 2,700 | | Contract costs | 268 | 268 | | Contract assets | 214,246 | 214,246 | | Contract liabilities | (97,597) | (86,598) | - Contract assets relate to the Group's right to consideration for work completed but not yet invoiced at the reporting date[94](index=94&type=chunk) - Contract liabilities primarily relate to customer prepayments for property sales and equipment sales before revenue recognition criteria are met[94](index=94&type=chunk) - The Group capitalizes success-based sales commissions as contract costs[95](index=95&type=chunk) [22. Significant Related Party Transactions](index=40&type=section&id=22.%20Significant%20Related%20Party%20Transactions) Key management personnel remuneration increased slightly to RMB 1,659 thousand, including directors' fees and salaries Key Management Personnel Remuneration (Six Months Ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Directors' fees | 330 | 330 | | Salaries | 1,222 | 1,142 | | China statutory welfare fund | 64 | 64 | | Central Provident Fund and defined contributions | 43 | 44 | | **Total** | 1,659 | 1,580 | [23. Disposal of Joint Ventures](index=42&type=section&id=23.%20Disposal%20of%20Joint%20Ventures) The Group transferred its 51% equity in Hanfang Pharmaceutical under court order and recognized a significant receivable - In February 2025, the Group transferred its **51% equity interest** in Hanfang Pharmaceutical to Feng Chaoling under a court order, ceasing to hold any equity interest in Hanfang Pharmaceutical[100](index=100&type=chunk) - The Group prevailed in the lawsuit and recognized receivables from Feng Chaoling of approximately **RMB 105,600,000**, and has successfully obtained a court order to freeze Feng Chaoling's assets[17](index=17&type=chunk)[100](index=100&type=chunk) - On January 31, 2024, the Group disposed of its entire interest in Hubei Nonggu Zhonglenglian Investment Co., Ltd., generating a gain of approximately **RMB 916.7 thousand**[101](index=101&type=chunk) [Other Information](index=44&type=section&id=Other%20Information) This section covers the publication of the interim report and an acknowledgement from the Executive Chairman [Publication of Interim Report](index=44&type=section&id=Publication%20of%20Interim%20Report) The results announcement is available online, and the interim report will be dispatched to shareholders and published on websites - This results announcement has been published on the HKEXnews website (www.hkexnews.hk) and the Company's website (www.weiyeholdings.com)[103](index=103&type=chunk) - The Company's interim report for the six months ended June 30, 2025, will be dispatched to shareholders and published on the HKEXnews and Company websites in due course[103](index=103&type=chunk) [Acknowledgement](index=44&type=section&id=Acknowledgement) Executive Chairman Chen Zhiyong extends gratitude to the Group's management, employees, shareholders, and partners for their support - Executive Chairman Chen Zhiyong expresses sincere gratitude to the Group's management and employees for their dedication and diligent efforts, and to shareholders, suppliers, customers, and banks for their continuous support[104](index=104&type=chunk)[105](index=105&type=chunk)

香港交易及結算所有限公司與香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 就 因 本 公 告 全部或任何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責 任。 CHTC FONG'S INTERNATIONAL COMPANY LIMITED 中國恒天立信國際有限公司 （於百慕達註冊成立之有限公司） （股份代號：641） 截至二零二五年六月三十日止六個月之 中期業績公告 中 國 恒 天 立 信 國 際 有 限 公 司（「本公司」）董 事 會（「董事會」）欣 然 公 佈 本 公 司 及 其 附 屬 公 司（統 稱「本集團」）截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月 之 未 經 審 核 綜 合 中 期 業 績 連 同 比 較 數 字 如 下： 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 | 截至六月三十日止六個月 | 二零二五年 | 二零二四年 | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- ...

[Financial Summary](index=1&type=section&id=%E4%B8%80%E3%80%81%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) [Summary of Condensed Consolidated Statement of Profit or Loss](index=1&type=section&id=1.%20%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%94%B6%E7%9B%8A%E8%A1%A8%E6%91%98%E8%A6%81) For H1 2025, revenue grew 2.7% YoY to HKD 2.02 billion, while profit for the period declined 14.1% to HKD 1.15 billion due to increased tax expenses Summary of Condensed Consolidated Statement of Profit or Loss (For the six months ended June 30) | Metric | H1 2025 (HKD in thousands) | H1 2024 (HKD in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 2,017,965 | 1,965,771 | 2.7% | | Total Expenses | (833,297) | (1,095,844) | (24.0%) | | Operating Profit | 1,167,050 | 1,105,081 | 5.6% | | Profit for the Period | 1,151,157 | 1,339,860 | (14.1%) | | Basic Earnings Per Share | 0.179 | 0.216 | (17.1%) | | Diluted Earnings Per Share | 0.178 | 0.216 | (17.6%) | [Summary of Condensed Consolidated Statement of Financial Position](index=2&type=section&id=2.%20%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8%E6%91%98%E8%A6%81) As of June 30, 2025, the company's balance sheet strengthened with total assets at HKD 42.2 billion and an improved debt-to-asset ratio Summary of Condensed Consolidated Statement of Financial Position (As of) | Metric | June 30, 2025 (HKD in thousands) | December 31, 2024 (HKD in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 42,200,612 | 43,920,995 | (3.9%) | | Total Liabilities | 27,496,286 | 29,622,959 | (7.2%) | | Total Equity | 14,704,326 | 14,298,036 | 2.8% | [Selected Financial Ratios](index=2&type=section&id=3.%20%E7%AF%A9%E9%81%B8%E8%B2%A1%E5%8B%99%E6%AF%94%E7%8E%87) Profitability metrics such as ROA and net profit margin improved, while liquidity indicators showed a healthier balance sheet and lower leverage Selected Financial Ratios | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Return on Average Assets (ROA) | 5.4% | 4.8% | +0.6% | | Return on Average Equity (ROE) | 15.4% | 15.7% | -0.3% | | Average Cost of Interest-bearing Debt | 3.1% | 3.5% | -0.4% | | Net Profit Margin | 57.0% | 53.4% | +3.6% | | Debt-to-Asset Ratio | 65.2% | 67.5% | -2.3% | | Gearing Ratio | 1.7 times | 1.9 times | -0.2 times | - **S&P Global Ratings and Fitch Ratings** were both downgraded from A to A-, while Dagong Global Credit Rating maintained its **AAA rating**[5](index=5&type=chunk) [Management Discussion and Analysis](index=4&type=section&id=%E4%BA%8C%E3%80%81%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) [Industry Environment](index=4&type=section&id=1.%20%E8%A1%8C%E6%A5%AD%E7%92%B0%E5%A2%83) The international shipping market experienced an upward trend in H1 2025, though uncertainty looms for H2 amid expanding fleet capacity - In H1 2025, the international shipping market showed an upward trend, with the **Clarkson Sea Index rising 17.7%** from 21,621 USD/day in January to 25,453 USD/day in June[7](index=7&type=chunk) - The oil tanker market saw a slow rise, with the average **Baltic Dirty Tanker Index (BDTI) for H1 decreasing by 21.3%** year-over-year[7](index=7&type=chunk) - The bulk carrier market saw the average **Baltic Dry Index (BDI) for H1 at 1,290 points**, a year-over-year decrease of 29.7%[9](index=9&type=chunk) - LNG carrier freight rates were exceptionally weak, with the average spot freight for a 145,000 cubic meter LNG carrier **declining by 86.2%** year-over-year in H1[11](index=11&type=chunk) - Looking ahead to H2, global seaborne trade volume and turnover are projected to grow by **0.1% and 0.3%** respectively, while fleet capacity is expected to **increase by 4.3%**[14](index=14&type=chunk) - The International Maritime Organization (IMO) has introduced the first mandatory "dual-track" emission reduction agreement to achieve **net-zero emissions by 2050**[16](index=16&type=chunk) - The Maritime Autonomous Surface Ships (MASS) Code will enter a voluntary implementation phase in 2025 and is scheduled to become **mandatory in 2028**[17](index=17&type=chunk) [Review of Operations for the First Half of the Year](index=10&type=section&id=2.%20%E4%B8%8A%E5%8D%8A%E5%B9%B4%E5%B7%A5%E4%BD%9C%E7%B8%BD%E7%B5%90) The company adhered to its counter-cyclical strategy, achieving revenue growth but saw a profit decline due to new tax rules under OECD Pillar Two - The company adhered to its cross-cycle strategy of "investing counter-cyclically and operating pro-cyclically" to enhance the operational efficiency of its shipping business[18](index=18&type=chunk) - The decline in net profit was primarily due to the retrospective application of the OECD Pillar Two model rules, resulting in a **tax expense of HKD 137.7 million**[18](index=18&type=chunk) Key Financial Performance for H1 2025 | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Operating Revenue | HKD 2.018 billion | HKD 1.966 billion | +2.7% | | Net Profit | HKD 1.151 billion | HKD 1.340 billion | -14.1% | | Annualized ROE | 15.4% | 15.7% | -0.3% | | Annualized ROA | 5.4% | 4.8% | +0.6% | [Maintaining Overall Fleet Size Stability and Enhancing Operational Attributes and High Value-Added Features](index=10&type=section&id=2.1%20%E4%BF%9D%E6%8C%81%E8%88%B9%E9%9A%8A%E8%A6%8F%E6%A8%A1%E7%B8%BD%E9%AB%94%E7%A9%A9%E5%AE%9A%EF%BC%8C%E8%88%B9%E9%9A%8A%E7%B6%93%E7%87%9F%E5%B1%AC%E6%80%A7%E5%8F%8A%E9%AB%98%E9%99%84%E5%8A%A0%E5%80%BC%E7%89%B9%E5%BE%B5%E9%80%B2%E4%B8%80%E6%AD%A5%E5%A2%9E%E5%BC%B7) - In H1, new shipbuilding orders for **6 vessels** were signed with a contract value of **USD 308 million**, with 100% being mid-to-high-end models[19](index=19&type=chunk) - As of June 30, 2025, the fleet size was **143 vessels** (121 in operation, 22 under construction), with an average age of approximately **4.13 years** for operating vessels[20](index=20&type=chunk) - The average remaining lease term for charters of one year or more was **7.64 years**, indicating a shift towards a higher-value, younger fleet structure[20](index=20&type=chunk) [Further Strengthening Capital Management to Maintain Favorable Funding Costs and Balance Sheet Structure](index=11&type=section&id=2.2%20%E9%80%B2%E4%B8%80%E6%AD%A5%E5%BC%B7%E5%8C%96%E8%B3%87%E9%87%91%E7%AE%A1%E7%90%86%EF%BC%8C%E4%BF%9D%E6%8C%81%E8%89%AF%E5%A5%BD%E7%9A%84%E8%B3%87%E9%87%91%E6%88%90%E6%9C%AC%E5%92%8C%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E7%B5%90%E6%A7%8B) - As of the end of June 2025, the company's comprehensive financing cost was controlled at **3.1%**, a reduction of 40 basis points from the beginning of the year[21](index=21&type=chunk) - As of June 30, 2025, the **debt-to-asset ratio was 65.2%**, a decrease of 2.3% from the end of last year[21](index=21&type=chunk) - The scale of interest-bearing borrowings was approximately **HKD 25.55 billion**, a decrease of 7.4% from the end of 2024[21](index=21&type=chunk) - Actively promoted the **RMB 10 billion credit framework agreement** with CSSC Finance Company Limited[22](index=22&type=chunk) [Driving Quality and Efficiency Improvements Through Lean Management](index=12&type=section&id=2.3%20%E4%BB%A5%E7%B2%BE%E7%9B%8A%E7%AE%A1%E7%90%86%E7%82%BA%E5%B0%8E%E5%90%91%EF%BC%8C%E6%89%8E%E5%AF%A6%E6%8E%A8%E5%8B%95%E4%BC%81%E6%A5%AD%E6%8F%90%E8%B3%AA%E5%A2%9E%E6%95%88) - Further improved the comprehensive risk management system by re-evaluating, refining, and expanding the three categories of risks[23](index=23&type=chunk) - Successfully selected for the **S&P Global Sustainability Yearbook (China Edition) 2025** and listed on the **Fortune China ESG Influence List** for the third consecutive year[23](index=23&type=chunk) [Outlook for the Second Half of the Year](index=13&type=section&id=3.%20%E4%B8%8B%E5%8D%8A%E5%B9%B4%E5%B7%A5%E4%BD%9C%E5%B1%95%E6%9C%9B) The company will focus on expanding its ship leasing business, managing asset risks, and controlling financing costs through new funding initiatives - The focus for H2 will be on expanding the ship leasing business, securing new ship orders, and enlarging the high-quality vessel asset portfolio[24](index=24&type=chunk) - Strengthen vessel asset monitoring, strictly control incremental risks, and proactively develop risk response plans[24](index=24&type=chunk) - Complete the establishment of a **USD 3 billion Medium Term Note program** and implement the **RMB 10 billion credit agreement** with CSSC Finance[24](index=24&type=chunk) - Continue to implement cross-currency financing and reduce comprehensive financing costs through measures like replacing high-interest loans and optimizing cash management[24](index=24&type=chunk) [Seizing Opportunities to Continue Expanding the Ship Leasing Business](index=13&type=section&id=3.1%20%E5%AF%A9%E6%99%82%E5%BA%A6%E5%8B%A2%EF%BC%8C%E7%B9%BC%E7%BA%8C%E6%8B%93%E5%B1%95%E8%88%B9%E8%88%B6%E7%A7%9F%E8%B3%83%E6%A5%AD%E5%8B%99%E3%80%82) - Continue to strive for new ship orders to expand the company's high-quality vessel asset portfolio, in line with market trends and company strategy[24](index=24&type=chunk) [Strengthening Asset Risk Disposal Efforts](index=13&type=section&id=3.2%20%E6%8A%93%E5%AF%A6%E8%B3%87%E7%94%A2%E9%A2%A8%E9%9A%AA%E8%99%95%E7%BD%AE%E5%B7%A5%E4%BD%9C%E3%80%82) - Prioritize risk control, enhance vessel asset monitoring, manage incremental risks, and prepare response plans for policy-related risks[24](index=24&type=chunk) [Enhancing Control Over Comprehensive Financing Costs](index=13&type=section&id=3.3%20%E5%8A%A0%E5%BC%B7%E7%B6%9C%E5%90%88%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC%E6%8E%A7%E5%88%B6%E3%80%82) - Complete the establishment of a **USD 3 billion Medium Term Note program** and implement the **RMB 10 billion credit agreement** with CSSC Finance to secure project funding[24](index=24&type=chunk) - Continue to implement cross-currency financing and reduce comprehensive financing costs through various measures like replacing high-interest loans and optimizing cash management[24](index=24&type=chunk) [Financial Review](index=14&type=section&id=4.%20%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) This section details the H1 2025 financial performance, explaining the decline in profit for the period while highlighting the stability of core business operations - The **14.1% year-over-year decline in profit** for H1 2025 to HKD 1.15 billion was due to a combination of increased tax costs, non-recurring items, and lower results from joint ventures[38](index=38&type=chunk)[39](index=39&type=chunk) - **Operating profit excluding non-recurring items remained stable**, at HKD 1.01 billion in 2025 compared to HKD 1.00 billion in 2024[38](index=38&type=chunk) [Analysis of the Condensed Consolidated Statement of Profit or Loss](index=14&type=section&id=4.1%20%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%94%B6%E7%9B%8A%E8%A1%A8%E7%9A%84%E5%88%86%E6%9E%90) - Total revenue increased by **2.7% year-over-year to HKD 2.02 billion**, primarily driven by higher income from operating lease services[25](index=25&type=chunk) - Total expenses decreased by **24.0% year-over-year to HKD 833 million**, mainly due to a 19.3% reduction in finance costs and bank charges[31](index=31&type=chunk) [Revenue](index=14&type=section&id=4.1.1%20%E6%94%B6%E7%9B%8A) Revenue Breakdown (For the six months ended June 30) | Revenue Source | H1 2025 (HKD in thousands) | H1 2024 (HKD in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Shipping Integrated Services | 1,231,338 | 1,069,465 | 15.1% | | - Operating Lease Services | 1,208,824 | 1,047,123 | 15.4% | | - Ship Broking Services | 22,514 | 22,342 | 0.8% | | Financial Services | 786,627 | 896,306 | (12.2%) | | - Finance Lease Services | 549,995 | 619,906 | (11.3%) | | - Loan and Borrowing Services | 236,632 | 276,400 | (14.4%) | | Total | 2,017,965 | 1,965,771 | 2.7% | - **Operating lease service revenue grew by 15.4%**, mainly due to income generated from three new container ships added in H2 2024[27](index=27&type=chunk) - **Financial services revenue decreased by 12.2%**, primarily because finance lease and loan projects concluded in H2 2024 and H1 2025[28](index=28&type=chunk) [Other Income and Other Net (Losses)/Gains](index=15&type=section&id=4.1.2%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E5%85%B6%E4%BB%96%EF%BC%88%E8%99%A7%E6%90%8D%EF%BC%89%E2%95%B1%E6%94%B6%E7%9B%8A%E6%B7%A8%E9%A1%8D) - In H1 2025, other net losses amounted to **HKD 17.6 million**, mainly due to net foreign exchange losses[29](index=29&type=chunk) - In the same period of 2024, other net income was **HKD 235.2 million**, primarily from a HKD 150.7 million fee for early termination of a finance lease project and a HKD 56.4 million gain on the sale of vessels[29](index=29&type=chunk) [Expenses](index=16&type=section&id=4.1.3%20%E9%96%8B%E6%94%AF) Expense Breakdown (For the six months ended June 30) | Expense Item | H1 2025 (HKD in thousands) | H1 2024 (HKD in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs and Bank Charges | 416,021 | 515,642 | (19.3%) | | Depreciation | 297,993 | 280,936 | 6.1% | | Vessel Operating Costs | 188,209 | 136,582 | 37.8% | | Employee Benefit Expenses | 28,669 | 31,022 | (7.6%) | | Other Operating Expenses | 34,728 | 25,998 | 33.6% | | Impairment (Reversal)/Provision for Loans and Lease Receivables, net | (132,323) | 105,664 | (225.2%) | | Total | 833,297 | 1,095,844 | (24.0%) | - **Finance costs and bank charges decreased by 19.3%** year-over-year, with the average cost of interest-bearing debt dropping from 3.5% to 3.1%, reflecting an efficient financing strategy[32](index=32&type=chunk) - **Vessel operating costs increased by 37.8%**, mainly due to higher vessel repair and maintenance costs[34](index=34&type=chunk) - A **net impairment reversal of HKD 132.3 million** for loans and lease receivables was recorded, mainly from the reversal of provisions recognized in previous years upon project completion or early termination[36](index=36&type=chunk) [Share of Results of Joint Ventures](index=19&type=section&id=4.1.4%20%E6%87%89%E4%BD%94%E5%90%88%E7%87%9F%E5%85%AC%E5%8F%B8%E6%A5%AD%E7%B8%BE) - The share of results of joint ventures **decreased by 50.2%**, from HKD 264 million to HKD 131 million[36](index=36&type=chunk) - The decrease was mainly due to the sale of two chemical MR tankers in H2 2024 and lower daily charter rates for product oil and chemical tankers[36](index=36&type=chunk) [Income Tax Expense](index=19&type=section&id=4.1.5%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) - Income tax expense **increased from HKD 20.2 million to HKD 137.7 million**[36](index=36&type=chunk) - The increase was primarily due to the retrospective application of the OECD Pillar Two model rules (GloBE rules) from January 1, 2025, which led to higher Hong Kong profits tax[37](index=37&type=chunk) [Analysis of the Condensed Consolidated Statement of Financial Position](index=21&type=section&id=4.2%20%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8%E7%9A%84%E5%88%86%E6%9E%90) - **Total assets decreased by 3.9% to HKD 42.20 billion**, mainly due to a reduction in loans and lease receivables[40](index=40&type=chunk) - **Total liabilities decreased by 7.2% to HKD 27.50 billion**, primarily due to the repayment of a matured USD bond[40](index=40&type=chunk) - **Total equity increased by 2.8% to HKD 14.70 billion**, and the debt-to-asset ratio improved by 2.3 percentage points to 65.2%[40](index=40&type=chunk) [Loans and Lease Receivables](index=22&type=section&id=4.2.1%20%E6%87%89%E6%94%B6%E8%B2%B8%E6%AC%BE%E5%8F%8A%E7%A7%9F%E8%B3%83%E6%AC%BE) Loans and Lease Receivables (As of) | Receivable Item | June 30, 2025 (HKD in thousands) | December 31, 2024 (HKD in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Lease Receivables | 14,002,469 | 14,331,654 | (2.3%) | | Loan Borrowings | 5,982,268 | 6,118,321 | (2.2%) | | Loans to Joint Ventures | 216,631 | 264,858 | (18.2%) | | Total | 20,201,368 | 20,714,833 | (2.5%) | - **Lease receivables decreased by 2.3%**, mainly because some finance lease projects were completed according to their lease terms during the period[45](index=45&type=chunk) [Property, Plant and Equipment](index=23&type=section&id=4.2.2%20%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) - **Property, plant and equipment decreased by 1.8%**, mainly due to the sale of two bulk carriers in H2 2024 and depreciation of leased vessels[46](index=46&type=chunk) [Financial Assets at Fair Value](index=24&type=section&id=4.2.3%20%E6%8C%89%E5%85%AC%E5%85%81%E5%80%BC%E8%A8%88%E9%87%8F%E7%9A%84%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2) - The total value of financial assets at fair value was **HKD 2.16 billion**, with the company continuing to diversify risks by investing in a portfolio of listed bonds and wealth management products[47](index=47&type=chunk) [Liabilities](index=24&type=section&id=4.2.4%20%E8%B2%A0%E5%82%B5) Total Liabilities (As of) | Liability Item | June 30, 2025 (HKD in thousands) | December 31, 2024 (HKD in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Borrowings - Bank Loans | 13,889,083 | 12,829,276 | 8.3% | | Borrowings - Bonds | 10,369,790 | 13,432,257 | (22.8%) | | Borrowings - Others | 1,289,195 | 1,325,622 | (2.7%) | | Other Liabilities | 1,948,218 | 2,035,804 | (4.3%) | | Total | 27,496,286 | 29,622,959 | (7.2%) | - **Bank borrowings increased by 8.3%**, mainly by using new low-cost bank loans to repay matured USD guaranteed bonds[50](index=50&type=chunk) [Borrowings - Bonds](index=25&type=section&id=4.2.5%20%E5%80%9F%E6%AC%BE%EF%BC%8D%E5%82%B5%E5%88%B8) - The company holds two USD guaranteed bonds of **USD 400 million and USD 500 million**, maturing in 2030 and 2026, respectively[51](index=51&type=chunk) - The full issuance of the **RMB 3 billion "Panda Bond"** framework in the domestic inter-bank market has been completed to support domestic equipment upgrades and green ship development[51](index=51&type=chunk) [Asset Quality](index=26&type=section&id=5.%20%E8%B3%87%E7%94%A2%E8%B3%AA%E9%87%8F) The company did not write off any loans and lease receivables during H1 2025, indicating stable asset quality - For the six months ended June 30, 2025, the Group did not write off any loans and lease receivables[52](index=52&type=chunk) [Liquidity and Working Capital](index=26&type=section&id=6.%20%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E7%87%9F%E9%81%8B%E8%B3%87%E9%87%91) The company maintains robust liquidity through operating cash flow, bank loans, and bond issuance, ensuring sufficient resources for operations and debt servicing - The company ensures sufficient funding for debt repayment and business development through a reasonable level of liquid assets and adequate funding sources[53](index=53&type=chunk) - Maintained a **AAA rating from Dagong Global Credit Rating**, and international ratings of **A- from S&P and A- from Fitch**[55](index=55&type=chunk) - Net cash generated from operating activities was **HKD 1.32 billion**, mainly from receipts from concluded finance lease projects and operating profit[57](index=57&type=chunk) - Net cash generated from investing activities was **HKD 287 million**, primarily from dividends received from joint ventures[57](index=57&type=chunk) - Net cash used in financing activities was **HKD 2.35 billion**, mainly for the repayment of matured bonds[57](index=57&type=chunk) Summary of Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Cash Flow Item | H1 2025 (HKD in thousands) | H1 2024 (HKD in thousands) | | :--- | :--- | :--- | | Net cash generated from operating activities | 1,320,276 | 4,273,137 | | Net cash generated from/(used in) investing activities | 286,880 | (997,327) | | Net cash used in financing activities | (2,345,639) | (2,812,250) | | Net (decrease)/increase in cash and cash equivalents | (738,483) | 463,560 | | Cash and cash equivalents at end of period | 1,052,669 | 1,401,173 | [Capital Management](index=28&type=section&id=7.%20%E8%B3%87%E9%87%91%E7%AE%A1%E7%90%86) The company effectively managed financing costs through a cross-currency strategy and expanded its funding channels while hedging interest and currency risks - The **comprehensive financing cost decreased from 3.5%** at the end of 2024 to **3.1%** in H1 2025[59](index=59&type=chunk) - Signed a financial services framework agreement with CSSC Finance to obtain a **RMB 10 billion loan facility**, valid until December 31, 2027[60](index=60&type=chunk) - As of June 30, 2025, unused bank loan facilities amounted to approximately **HKD 19.66 billion** (about USD 2.53 billion), ensuring sufficient credit availability[61](index=61&type=chunk) [Bank Loans and Capital Structure](index=28&type=section&id=7.1%20%E9%8A%80%E8%A1%8C%E8%B2%B8%E6%AC%BE%E5%92%8C%E8%B3%87%E6%9C%AC%E7%B5%90%E6%A7%8B%E6%83%85%E6%B3%81) - Opportunistically used low-interest RMB and HKD borrowings to replace some high-interest USD borrowings, effectively controlling the rapid growth of financing costs[58](index=58&type=chunk)[59](index=59&type=chunk) - As of June 30, 2025, the **gearing ratio was 1.7 times**, maintaining a healthy balance sheet[61](index=61&type=chunk) [Interest Rate Risk](index=30&type=section&id=7.2%20%E5%88%A9%E7%8E%87%E9%A2%A8%E9%9A%AA) - Used financial instruments such as interest rate swaps to hedge interest rate risk exposure, with a notional principal of approximately **HKD 3.34 billion** as of June 30, 2025[62](index=62&type=chunk) - The locked-in average long-term fixed USD interest rate was approximately **1.58%**, effectively mitigating the negative impact of high USD interest rates[62](index=62&type=chunk) - Continuously improved the matching of interest rate structures between assets and liabilities by issuing fixed-rate bonds, securing fixed-rate loans, and using interest rate swaps[64](index=64&type=chunk) [Foreign Exchange Risk](index=31&type=section&id=7.3%20%E5%8C%AF%E7%8E%87%E9%A2%A8%E9%9A%AA) - Vessels under finance and operating leases are purchased in USD, with corresponding receivables and fixed assets also denominated in USD, mitigating significant currency risk exposure[65](index=65&type=chunk) - For existing RMB exchange rate exposure, the company effectively hedged risks by using foreign exchange swaps, cross-currency swaps, and replacing RMB financing with HKD financing[65](index=65&type=chunk) [Risk Management](index=32&type=section&id=8.%20%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86) The company employs a comprehensive risk management system with a prudent risk appetite, focusing on mature business models and high-quality clients - Established a comprehensive risk management system with a prudent risk appetite, favoring industries with mature business models, scale effects, and excellent asset quality[66](index=66&type=chunk) - In client selection, the company prefers large enterprises, industry leaders, or high-quality listed companies[66](index=66&type=chunk) - Continuously improved the risk management system, processes, tools, internal controls, and compliance to enhance the company's risk management capabilities[69](index=69&type=chunk) [Human Resources](index=33&type=section&id=9.%20%E4%BA%BA%E5%8A%9B%E8%B3%87%E6%BA%90) As of June 30, 2025, the company had 79 employees, with a highly educated workforce and a total compensation of HKD 28.7 million for H1 - As of June 30, 2025, the Group had a total of **79 employees**, a decrease from 84 on December 31, 2024[35](index=35&type=chunk)[70](index=70&type=chunk) - Approximately **94.9% of employees hold a bachelor's degree or higher**, indicating a high-quality talent pool[70](index=70&type=chunk) - For the six months ended June 30, 2025, total employee compensation was approximately **HKD 28.7 million**[70](index=70&type=chunk) [Pledge of Assets](index=33&type=section&id=10.%20%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) A significant portion of the company's assets, including receivables and equipment, are pledged as collateral for bank loans - As of June 30, 2025, approximately **HKD 9.28 billion** of loans and lease receivables, **HKD 242 million** of floating charge deposits, and **HKD 2.82 billion** of property, plant and equipment were pledged to banks to secure bank loans[71](index=71&type=chunk) [Financial Statements and Significant Notes](index=34&type=section&id=%E4%B8%89%E3%80%81%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E5%8F%8A%E9%87%8D%E5%A4%A7%E9%99%84%E8%A8%BB) [Condensed Consolidated Statement of Profit or Loss](index=34&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%94%B6%E7%9B%8A%E8%A1%A8) This section presents the unaudited condensed consolidated statement of profit or loss for the six months ended June 30, 2025 Condensed Consolidated Statement of Profit or Loss (For the six months ended June 30) | Metric | H1 2025 (HKD in thousands) | H1 2024 (HKD in thousands) | | :--- | :--- | :--- | | Revenue | 2,017,965 | 1,965,771 | | Other income and other net (losses)/gains | (17,618) | 235,154 | | Total expenses | (833,297) | (1,095,844) | | Operating profit | 1,167,050 | 1,105,081 | | Share of results of joint ventures | 131,328 | 263,789 | | Profit before income tax | 1,288,887 | 1,360,021 | | Income tax expense | (137,730) | (20,161) | | Profit for the period | 1,151,157 | 1,339,860 | | Profit attributable to equity holders of the Company | 1,105,585 | 1,327,318 | | Non-controlling interests | 45,572 | 12,542 | | Basic earnings per share (HKD) | 0.179 | 0.216 | | Diluted earnings per share (HKD) | 0.178 | 0.216 | [Condensed Consolidated Statement of Comprehensive Income](index=35&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E5%85%A5%E8%A1%A8) This section presents the unaudited condensed consolidated statement of comprehensive income for the six months ended June 30, 2025 Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Metric | H1 2025 (HKD in thousands) | H1 2024 (HKD in thousands) | | :--- | :--- | :--- | | Profit for the period | 1,151,157 | 1,339,860 | | Total other comprehensive (expense)/income for the period | (97,737) | 28,212 | | Total comprehensive income for the period | 1,053,420 | 1,368,072 | | Total comprehensive income for the period attributable to equity holders of the Company | 1,007,830 | 1,355,421 | | Non-controlling interests | 45,590 | 12,651 | [Condensed Consolidated Statement of Financial Position](index=36&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) This section provides the unaudited condensed consolidated statement of financial position as of June 30, 2025, reflecting the company's financial health Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Metric | June 30, 2025 (HKD in thousands) | December 31, 2024 (HKD in thousands) | | :--- | :--- | :--- | | Total Assets | 42,200,612 | 43,920,995 | | Property, plant and equipment | 16,099,700 | 16,394,376 | | Loans and lease receivables | 20,201,368 | 20,714,833 | | Cash and cash equivalents | 1,052,669 | 1,773,896 | | Total Liabilities | 27,496,286 | 29,622,959 | | Borrowings | 25,548,068 | 27,587,155 | | Total Equity | 14,704,326 | 14,298,036 | | Share capital | 6,713,880 | 6,695,690 | [Notes to the Interim Financial Information](index=38&type=section&id=%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) This section provides detailed notes explaining the basis of preparation, accounting policies, segment information, and other key financial statement components - The interim financial information is prepared in accordance with **HKAS 34 "Interim Financial Reporting"** and the disclosure requirements of the Hong Kong Stock Exchange Listing Rules[76](index=76&type=chunk) - The adoption of the amended HKAS 21 "Lack of Exchangeability," effective January 1, 2025, had **no material impact** on the interim financial information[79](index=79&type=chunk)[80](index=80&type=chunk) [Basis of Preparation](index=38&type=section&id=1.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) - The interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the HKICPA and the disclosure requirements of the Hong Kong Stock Exchange Listing Rules[76](index=76&type=chunk) - The interim financial information is unaudited but has been reviewed by Grant Thornton Hong Kong Limited in accordance with HKSRE 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity"[76](index=76&type=chunk) [Adoption of Amended Hong Kong Financial Reporting Standards](index=39&type=section&id=2.%20%E6%8E%A1%E7%B4%8D%E7%B6%93%E4%BF%AE%E8%A8%82%E9%A6%99%E6%B8%AF%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%BA%96%E5%89%87) - Adopted the amended Hong Kong Accounting Standard 21 "Lack of Exchangeability," effective from January 1, 2025[79](index=79&type=chunk) - The adoption of these amendments had no material impact on the Group's interim financial information[80](index=80&type=chunk) [Segment Information and Revenue](index=39&type=section&id=3.%20%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99%E5%8F%8A%E6%94%B6%E7%9B%8A) - The main operating segments are Shipping Integrated Services (operating lease, ship broking) and Financial Services (finance lease, loan and borrowing)[81](index=81&type=chunk)[82](index=82&type=chunk)[83](index=83&type=chunk) Segment Revenue (For the six months ended June 30) | Segment | H1 2025 (HKD in thousands) | H1 2024 (HKD in thousands) | | :--- | :--- | :--- | | Shipping Integrated Services | 1,231,338 | 1,069,465 | | Financial Services | 786,627 | 896,306 | | Total | 2,017,965 | 1,965,771 | [Finance Costs and Bank Charges](index=41&type=section&id=4.%20%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC%E5%8F%8A%E9%8A%80%E8%A1%8C%E8%B2%BB%E7%94%A8) Finance Costs and Bank Charges (For the six months ended June 30) | Item | H1 2025 (HKD in thousands) | H1 2024 (HKD in thousands) | | :--- | :--- | :--- | | Interest and fees on bonds | 145,577 | 167,770 | | Interest and fees on bank borrowings | 220,066 | 345,114 | | Interest and fees on other borrowings | 39,593 | 17,833 | | Interest on lease liabilities | 9,686 | 519 | | Bank charges | 1,099 | 1,224 | | Total | 416,021 | 515,642 | [Operating Profit](index=41&type=section&id=5.%20%E7%B6%93%E7%87%9F%E6%BA%A2%E5%88%A9) Items Included in Operating Profit (For the six months ended June 30) | Item | H1 2025 (HKD in thousands) | H1 2024 (HKD in thousands) | | :--- | :--- | :--- | | Interest income from financial assets at FVTOCI | 31,880 | 9,491 | | Net gain on disposal of property, plant and equipment | – | 56,405 | | Net unrealised gain on fair value changes of financial assets at FVTPL | 16,226 | 14,189 | | Net gain on derecognition of finance lease receivables | 21,560 | 150,719 | [Income Tax Expense](index=42&type=section&id=6.%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) - Income tax expense increased to **HKD 137.7 million**, mainly due to the retrospective application of the OECD Pillar Two model rules from January 1, 2025[90](index=90&type=chunk)[91](index=91&type=chunk) Income Tax Expense Breakdown (For the six months ended June 30) | Tax Item | H1 2025 (HKD in thousands) | H1 2024 (HKD in thousands) | | :--- | :--- | :--- | | Current tax - Hong Kong Profits Tax | 125,444 | 5,238 | | Current tax - Overseas tax | 10,849 | 15,147 | | Under/(over) provision in prior years | 2,013 | (918) | | Deferred tax | (576) | 694 | | Income tax expense | 137,730 | 20,161 | [Earnings Per Share](index=44&type=section&id=7.%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) Earnings Per Share Calculation (For the six months ended June 30) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit attributable to equity holders of the Company (HKD in thousands) | 1,105,585 | 1,327,318 | | Weighted average number of ordinary shares (in thousands) | 6,191,104 | 6,142,907 | | Basic earnings per share (HKD) | 0.179 | 0.216 | | Diluted earnings per share (HKD) | 0.178 | 0.216 | [Dividends](index=45&type=section&id=8.%20%E8%82%A1%E6%81%AF) - The Board has declared an interim dividend of **HKD 0.05 per share** (2024: HKD 0.03 per share)[95](index=95&type=chunk) [Loans and Lease Receivables](index=45&type=section&id=9.%20%E6%87%89%E6%94%B6%E8%B2%B8%E6%AC%BE%E5%8F%8A%E7%A7%9F%E8%B3%83%E6%AC%BE) - Loan borrowings are secured, bear interest at annual rates ranging from **5.8% to 8.3%**, and are repayable between 2025 and 2033[101](index=101&type=chunk) - Finance lease receivables are secured and bear interest at annual rates ranging from **5.0% to 10.3%**[103](index=103&type=chunk) - Loans to joint ventures are unsecured, bear interest at an annual rate of **8.4%**, and are repayable on demand[104](index=104&type=chunk) Net Loans and Lease Receivables (As of) | Receivable Item | June 30, 2025 (HKD in thousands) | December 31, 2024 (HKD in thousands) | | :--- | :--- | :--- | | Loan borrowings | 5,982,268 | 6,118,321 | | Lease receivables | 14,002,469 | 14,331,654 | | Loans to joint ventures | 216,631 | 264,858 | | Total | 20,201,368 | 20,714,833 | [Share Capital](index=48&type=section&id=10.%20%E8%82%A1%E6%9C%AC) - The number of issued ordinary shares increased by **11,475,995** due to the exercise of share options, with a total consideration of approximately HKD 14.70 million credited to share capital[105](index=105&type=chunk) Share Capital Movement (As of) | Item | Number of shares (in thousands) | Share Capital (HKD in thousands) | | :--- | :--- | :--- | | As at December 31, 2024 | 6,186,890 | 6,695,690 | | Shares issued under share option scheme | 11,476 | 18,190 | | As at June 30, 2025 | 6,198,366 | 6,713,880 | [Other Information](index=49&type=section&id=%E5%9B%9B%E3%80%81%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) [Corporate Governance Practices](index=49&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A6%8F) The company is committed to high standards of corporate governance and complies with the Corporate Governance Code - The company has adopted the Corporate Governance Code as set out in Appendix C1 of the Listing Rules of The Stock Exchange of Hong Kong Limited and has complied with all applicable code provisions[106](index=106&type=chunk) - The roles of Chairman and Chief Executive Officer are both held by Mr. Li Hongtao, which the Board believes facilitates the execution of business strategies and enhances operational efficiency[107](index=107&type=chunk) [Interim Dividend](index=50&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board declared an interim dividend of HKD 0.05 per share for H1 2025, an increase from the prior year - The Board declared an interim dividend of **HKD 0.05 per share** for the six months ended June 30, 2025 (2024: HKD 0.03 per share)[108](index=108&type=chunk) - The interim dividend will be paid on or before November 14, 2025, and shareholders may elect to receive it in RMB[108](index=108&type=chunk) [Model Code for Securities Transactions by Directors](index=50&type=section&id=%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The company has adopted the Model Code for securities transactions by directors and all directors have confirmed compliance - 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, and all directors have confirmed compliance[110](index=110&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=50&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B9%8B%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) Neither the company nor its subsidiaries engaged in any purchase, sale, or redemption of the company's listed securities during the period - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[111](index=111&type=chunk) - As of June 30, 2025, the company did not hold any treasury shares[111](index=111&type=chunk) [Review of Interim Results](index=50&type=section&id=%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%9B%9E%E9%A1%A7) The Audit Committee has reviewed the unaudited condensed consolidated interim results for the six months ended June 30, 2025 - The Audit Committee has reviewed the unaudited condensed consolidated interim results for the six months ended June 30, 2025, with the company's senior management and external auditors[113](index=113&type=chunk) [Events After the Reporting Period](index=51&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) Subsequent to the reporting period, the company entered into shipbuilding agreements with a fellow subsidiary for approximately HKD 1.15 billion - After the reporting period, the Group entered into shipbuilding agreements with a fellow subsidiary for a total consideration of approximately **HKD 1.15 billion** (RMB 1.056 billion)[114](index=114&type=chunk) [Publication of Interim Report](index=51&type=section&id=%E5%88%8A%E7%99%BC%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) The interim report for the six months ended June 30, 2025, will be dispatched to shareholders and published on relevant websites in due course - The interim report for the six months ended June 30, 2025, will be sent to shareholders and published on the company's website and the Hong Kong Stock Exchange's website in due course[116](index=116&type=chunk)

[Company Information and Announcement Summary](index=1&type=section&id=Company%20Information%20and%20Announcement%20Summary) This section provides an overview of the company's basic information and the disclaimer for the interim results announcement [Announcement Statement](index=1&type=section&id=Announcement%20Statement) The Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited disclaim responsibility for this announcement's content, accuracy, completeness, and any resulting losses - Hong Kong Exchanges and the Stock Exchange are not responsible for the content, accuracy, or completeness of this announcement, and assume no liability for any losses[1](index=1&type=chunk) [Company Basic Information](index=1&type=section&id=Company%20Basic%20Information) MIG International Holdings Limited (Stock Code: 1247) announces its unaudited condensed consolidated interim results for the six months ended June 30, 2025, with comparative figures for 2024 - MIG International Holdings Limited (Stock Code: 1247) announces its unaudited condensed consolidated interim results for the six months ended June 30, 2025[2](index=2&type=chunk) - The Group's results are presented with comparative figures for the corresponding period in 2024[2](index=2&type=chunk) [Financial Statements](index=2&type=section&id=Financial%20Statements) This section presents the condensed consolidated interim financial statements, including the statement of profit or loss and financial position [Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's revenue significantly increased by **179.0%** to RMB289,908 thousands, but gross profit decreased by **13.1%** to RMB10,780 thousands, leading to an expanded loss for the period of RMB4,522 thousands Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income (Key Metrics) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 289,908 | 103,903 | +179.0% | | Cost of sales | (279,128) | (91,492) | +205.1% | | Gross profit | 10,780 | 12,411 | -13.1% | | Operating loss | (4,134) | (780) | +430.0% | | Loss before tax | (4,407) | (1,054) | +318.1% | | Loss for the period attributable to owners of the Company | (4,522) | (1,054) | +329.0% | | Basic and diluted loss per share (RMB cents) | (2.37) | (0.64) | +270.3% | - Exchange differences on translation of financial statements of overseas subsidiaries, a component of other comprehensive income, narrowed slightly to **negative RMB1,722 thousands** from negative RMB1,758 thousands in the prior year[4](index=4&type=chunk) [Condensed Consolidated Interim Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets and net assets increased, with a significant rise in cash and cash equivalents and a notable decrease in trade receivables, improving net current assets and total equity Condensed Consolidated Interim Statement of Financial Position (Key Metrics) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 45,339 | 46,810 | -3.1% | | Current assets | 205,226 | 159,248 | +29.0% | | Inventories | 16,097 | 17,491 | -7.9% | | Trade receivables | 51,787 | 88,515 | -41.5% | | Cash and cash equivalents | 121,731 | 39,655 | +207.0% | | Current liabilities | 79,376 | 72,191 | +10.0% | | Trade and other payables | 79,273 | 55,089 | +43.9% | | Bank loans | – | 17,000 | -100.0% | | Net current assets | 125,850 | 87,057 | +44.6% | | Net assets | 169,853 | 132,476 | +28.2% | | Total equity | 169,853 | 132,476 | +28.2% | - The Group's bank loans have been fully repaid, indicating an optimized debt structure[5](index=5&type=chunk) [Notes to the Financial Statements](index=4&type=section&id=Notes%20to%20the%20Financial%20Statements) This section provides detailed notes to the condensed consolidated interim financial statements, covering general information, basis of preparation, accounting policies, and segment information [General Information](index=4&type=section&id=General%20Information) The Company, incorporated in the Cayman Islands, primarily engages in the design, manufacturing, and wholesale of children's wear, and has expanded into supply chain management, including bulk commodity trading in Mainland China - The Company is incorporated in the Cayman Islands, with its principal place of business in Hong Kong[6](index=6&type=chunk) - The Group primarily engages in the design, manufacturing, and wholesale of children's wear and other apparel-related products, and has commenced supply chain management business, including bulk commodity trading products in Mainland China[6](index=6&type=chunk) - The Company's direct and ultimate controlling parties are Huazhi Holdings Investment Limited and Mr. Ding Peiji, respectively[6](index=6&type=chunk) [Basis of Preparation of Condensed Consolidated Financial Statements](index=4&type=section&id=Basis%20of%20Preparation%20of%20Condensed%20Consolidated%20Financial%20Statements) The condensed consolidated interim financial statements are prepared in accordance with the HKEX Listing Rules and IAS 34, reviewed by the Audit Committee, but not audited by an independent auditor - The condensed consolidated interim financial statements are prepared in accordance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and International Accounting Standard 34 "Interim Financial Reporting"[9](index=9&type=chunk) - The statements have been reviewed by the Company's Audit Committee but have not been audited by an independent auditor[10](index=10&type=chunk) - Financial information is presented in RMB and includes comparative data for the financial year ended December 31, 2024[7](index=7&type=chunk)[10](index=10&type=chunk) [Review and Changes in Accounting Policies](index=5&type=section&id=Review%20and%20Changes%20in%20Accounting%20Policies) The interim results have been reviewed by the Audit Committee but not audited by an independent auditor, and the adoption of IFRS amendments had no material impact on financial position or performance - The condensed consolidated interim results have been reviewed by the Company's Audit Committee but have not been audited by an independent auditor[10](index=10&type=chunk) - The Group has initially applied the amendments to International Financial Reporting Standards issued by the IASB, which are mandatorily effective for annual periods beginning on or after January 1, 2025[12](index=12&type=chunk) - The application of the amendments to IFRS had no material impact on the Group's financial position and performance for the current and prior periods[12](index=12&type=chunk) [Revenue and Segment Information](index=5&type=section&id=Revenue%20and%20Segment%20Information) The Group reports two operating segments: wholesale business (children's wear and apparel-related products) and supply chain management (bulk commodity trading products), with the latter contributing the majority of revenue in H1 2025, driving overall revenue growth despite a decline in wholesale business revenue - The Group has two reportable segments: wholesale business (children's wear and other apparel-related products) and supply chain management business (bulk commodity trading products)[14](index=14&type=chunk) Segment Revenue and Results (Six Months Ended June 30) | Segment | 2025 Revenue (RMB thousands) | 2024 Revenue (RMB thousands) | 2025 Results (RMB thousands) | 2024 Results (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Wholesale business | 50,824 | 103,903 | (4,538) | (1,313) | | Supply chain management business | 239,084 | – | 1,668 | – | | **Total** | **289,908** | **103,903** | **(2,870)** | **(1,313)** | - The supply chain management business contributed **RMB239,084 thousands** in revenue in H1 2025, with no comparable business in H1 2024[16](index=16&type=chunk) [Overview of Operating Segments](index=5&type=section&id=Overview%20of%20Operating%20Segments) The Group's business is divided into two reportable segments, wholesale business (children's wear and apparel-related products) and supply chain management business (bulk commodity trading products), based on strategic decisions and resource allocation - The Group determines its operating segments based on reports used for making strategic decisions[13](index=13&type=chunk) - Operating segments include wholesale business (design, manufacturing, and sale of children's wear and other apparel-related products) and supply chain management business (bulk commodity trading products)[14](index=14&type=chunk) [Segment Revenue and Results](index=6&type=section&id=Segment%20Revenue%20and%20Results) In H1 2025, the supply chain management business generated RMB239,084 thousands in revenue and RMB1,668 thousands in results, while the wholesale business saw declining revenue and an expanded loss of RMB4,538 thousands Segment Revenue and Results (Six Months Ended June 30) | Segment | 2025 Revenue (RMB thousands) | 2024 Revenue (RMB thousands) | 2025 Results (RMB thousands) | 2024 Results (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Wholesale business | 50,824 | 103,903 | (4,538) | (1,313) | | Supply chain management business | 239,084 | – | 1,668 | – | | **Total** | **289,908** | **103,903** | **(2,870)** | **(1,313)** | - All segment revenue is generated from external customers and recognized at a point in time[16](index=16&type=chunk) - Segment results represent the loss recorded by each segment, excluding unallocated other income, central administrative costs, and finance costs[17](index=17&type=chunk) [Segment Assets and Liabilities](index=7&type=section&id=Segment%20Assets%20and%20Liabilities) As of June 30, 2025, the Group's total assets increased to RMB250,565 thousands, driven by significant growth in supply chain management assets, while wholesale business assets slightly decreased Segment Assets and Liabilities (As of June 30) | Indicator | Wholesale business (June 30, 2025) | Wholesale business (Dec 31, 2024) | Supply chain management business (June 30, 2025) | Supply chain management business (Dec 31, 2024) | Total Assets (June 30, 2025) | Total Assets (Dec 31, 2024) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Segment assets (RMB thousands) | 133,119 | 150,260 | 64,382 | 51,589 | 197,501 | 201,849 | | Segment liabilities (RMB thousands) | 15,410 | 29,879 | 5,848 | 118 | 21,258 | 29,997 | - Unallocated assets significantly increased from **RMB4,209 thousands** as of December 31, 2024, to **RMB53,064 thousands** as of June 30, 2025[18](index=18&type=chunk) - Total assets increased from **RMB206,058 thousands** as of December 31, 2024, to **RMB250,565 thousands** as of June 30, 2025[18](index=18&type=chunk) [Other Segment Information](index=7&type=section&id=Other%20Segment%20Information) Capital expenditure and depreciation for the wholesale business both significantly decreased, while depreciation and amortization for the supply chain management business began to emerge Other Segment Information (Six Months Ended June 30) | Indicator | Wholesale business (2025) | Wholesale business (2024) | Supply chain management business (2025) | Supply chain management business (2024) | Total (2025) | Total (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Capital expenditure* (RMB thousands) | 2 | 2,246 | – | – | 2 | 2,246 | | Depreciation of property, plant and equipment (RMB thousands) | 1,378 | 2,678 | 40 | – | 1,418 | 2,678 | | Amortisation of right-of-use assets (RMB thousands) | 50 | 44 | – | – | 50 | 44 | | Net reversal of expected credit loss provision for trade and other receivables (RMB thousands) | (70) | (67) | (18) | – | (88) | (67) | - Capital expenditure for the wholesale business significantly decreased from **RMB2,246 thousands** in 2024 to **RMB2 thousands** in 2025[19](index=19&type=chunk) - The supply chain management business recorded **RMB40 thousands** in depreciation of property, plant and equipment for the first time in 2025[19](index=19&type=chunk) [Geographical Information](index=7&type=section&id=Geographical%20Information) All of the Group's revenue from external customers and the majority of its non-current assets are concentrated in Mainland China - All of the Group's revenue from external customers and the majority of its non-current assets are based in Mainland China[20](index=20&type=chunk) [Major Customer Information](index=8&type=section&id=Major%20Customer%20Information) In H1 2025, customers D, E, and F from the supply chain management business became major customers, while customers A, B, and C from the wholesale business in H1 2024 are no longer major customers Revenue from Single Customers Contributing Over 10% of Group Revenue (RMB thousands) | Customer | Business Type | 2025 | 2024 | | :--- | :--- | :--- | :--- | | Customer A | Wholesale business | Not applicable* | 12,719 | | Customer B | Wholesale business | Not applicable* | 11,980 | | Customer C | Wholesale business | Not applicable* | 25,246 | | Customer D | Supply chain management business | 58,972 | Not applicable* | | Customer E | Supply chain management business | 19,661 | Not applicable* | | Customer F | Supply chain management business | 31,160 | Not applicable* | - In H1 2025, customers D, E, and F from the supply chain management business became the Group's major customers[21](index=21&type=chunk) - In H1 2024, customers A, B, and C from the wholesale business were major customers, but are no longer applicable in H1 2025[21](index=21&type=chunk)[22](index=22&type=chunk) [Disaggregation of Revenue from Contracts with Customers and Timing of Recognition](index=8&type=section&id=Disaggregation%20of%20Revenue%20from%20Contracts%20with%20Customers%20and%20Timing%20of%20Recognition) In H1 2025, revenue from sales of bulk trading commodities was RMB239,084 thousands, while revenue from sales of children's wear and other apparel-related products was RMB50,824 thousands, with all revenue recognized at a point in time Disaggregation of Revenue from Contracts with Customers (Six Months Ended June 30) | Product Type | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Sales of children's wear and other apparel-related products | 50,824 | 103,903 | | Sales of bulk trading commodities | 239,084 | – | | **Total** | **289,908** | **103,903** | - All revenue is recognized at a point in time[23](index=23&type=chunk) - The Group does not disclose information about remaining performance obligations for customer contracts, as the original expected duration of all revenue contracts is one year or less[23](index=23&type=chunk) [Other Income](index=9&type=section&id=Other%20Income) Other income for H1 2025 was RMB786 thousands, a significant decrease from RMB1,896 thousands in H1 2024, primarily due to reduced interest and other income Other Income (Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest income | 156 | 486 | | Rental income | 580 | 580 | | Others | 50 | 830 | | **Total** | **786** | **1,896** | - Interest income decreased from **RMB486 thousands** in 2024 to **RMB156 thousands** in 2025[24](index=24&type=chunk) - Other income decreased from **RMB830 thousands** in 2024 to **RMB50 thousands** in 2025[24](index=24&type=chunk) [Loss Before Tax](index=9&type=section&id=Loss%20Before%20Tax) Loss before tax expanded to RMB4,407 thousands in H1 2025, mainly due to a significant increase in cost of sales and a decrease in gross profit, despite reductions in staff costs and depreciation Loss Before Tax Components (Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Finance costs | 273 | 274 | | Staff costs | 11,662 | 11,627 | | Depreciation of property, plant and equipment | 1,418 | 2,678 | | Amortisation of right-of-use assets | 50 | 44 | | Cost of inventories sold | 279,128 | 91,492 | - Cost of inventories sold significantly increased from **RMB91,492 thousands** in 2024 to **RMB279,128 thousands** in 2025[25](index=25&type=chunk) - Depreciation of property, plant and equipment decreased from **RMB2,678 thousands** in 2024 to **RMB1,418 thousands** in 2025[25](index=25&type=chunk) [Finance Costs](index=9&type=section&id=Finance%20Costs) Finance costs for H1 2025 remained largely stable at RMB273 thousands compared to H1 2024, primarily consisting of bank loan interest Finance Costs (Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest on bank loans | 264 | 274 | | Interest on lease liabilities | 9 | – | | **Total** | **273** | **274** | [Staff Costs](index=9&type=section&id=Staff%20Costs) Total staff costs for H1 2025 remained largely stable at RMB11,662 thousands compared to H1 2024, with an increase in contributions to defined contribution retirement plans Staff Costs (Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Contributions to defined contribution retirement plans | 1,885 | 1,489 | | Salaries, wages and other benefits | 9,777 | 10,138 | | **Total** | **11,662** | **11,627** | [Other Items](index=9&type=section&id=Other%20Items) Other major expenses include a significant increase in cost of inventories sold, alongside reduced depreciation and design and development expenses Other Items (Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 1,418 | 2,678 | | Amortisation of right-of-use assets | 50 | 44 | | Net reversal of expected credit loss provision for trade receivables | (88) | (67) | | Design and development expenses | 393 | 528 | | Cost of inventories sold | 279,128 | 91,492 | - Cost of inventories sold includes amounts related to staff costs, which were **RMB5,937 thousands** in 2025 and **RMB6,786 thousands** in 2024[25](index=25&type=chunk) [Taxation](index=10&type=section&id=Taxation) In H1 2025, a China corporate income tax expense of RMB115 thousands was recorded, compared to no income tax expense in H1 2024, primarily due to the 25% income tax rate applicable to Mainland China subsidiaries Taxation (Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current tax – China corporate income tax | 115 | – | | Deferred tax – origination of temporary differences | – | – | | **Total** | **115** | **–** | - The Group is not subject to income tax in the Cayman Islands or the British Virgin Islands[29](index=29&type=chunk) - The applicable income tax rate for all of the Group's subsidiaries in Mainland China is **25%**[29](index=29&type=chunk) [Loss Per Share](index=10&type=section&id=Loss%20Per%20Share) Basic and diluted loss per share for H1 2025 significantly expanded to RMB2.37 cents, compared to RMB0.64 cents in H1 2024, primarily due to increased loss for the period and a higher weighted average number of ordinary shares Loss Per Share (Six Months Ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss for the period attributable to owners of the Company (RMB thousands) | 4,522 | 1,054 | | Weighted average number of ordinary shares (thousands) | 190,460 | 163,441 | | Basic and diluted loss per share (RMB cents) | (2.37) | (0.64) | - The Company's share options for the six months ended June 30, 2024 and 2025, had an anti-dilutive effect, thus diluted loss per share is the same as basic loss per share[28](index=28&type=chunk) [Basic Loss Per Share](index=10&type=section&id=Basic%20Loss%20Per%20Share) Basic loss per share is RMB2.37 cents, calculated based on a loss for the period attributable to owners of the Company of RMB4,522 thousands and a weighted average of 190,460 thousands ordinary shares - Basic loss per share is **RMB2.37 cents**, based on a loss for the period attributable to owners of the Company of approximately **RMB4,522,000**[27](index=27&type=chunk) - The weighted average number of ordinary shares is approximately **190,460,000** shares[27](index=27&type=chunk) [Diluted Loss Per Share](index=10&type=section&id=Diluted%20Loss%20Per%20Share) Diluted loss per share is the same as basic loss per share for the period, as share options had an anti-dilutive effect - The Company's share options for the six months ended June 30, 2024 and 2025, had an anti-dilutive effect[28](index=28&type=chunk) - Therefore, diluted loss per share is the same as basic loss per share[28](index=28&type=chunk) [Tax Rate Information](index=10&type=section&id=Tax%20Rate%20Information) The Group is not subject to income tax in the Cayman Islands and British Virgin Islands, no Hong Kong profits tax provision is made, and Mainland China subsidiaries are subject to a 25% corporate income tax rate - The Group is not subject to any income tax in the Cayman Islands or the British Virgin Islands[29](index=29&type=chunk) - No provision for Hong Kong profits tax has been made as the Group did not earn any assessable profits subject to Hong Kong profits tax for the six months ended June 30, 2024 and 2025[29](index=29&type=chunk) - The applicable income tax rate for all of the Group's subsidiaries in Mainland China is **25%**[29](index=29&type=chunk) [Trade Receivables](index=11&type=section&id=Trade%20Receivables) As of June 30, 2025, total trade receivables decreased to RMB51,787 thousands, a **41.5%** reduction from December 31, 2024, primarily due to significant collection of amounts within 90 days Ageing Analysis of Trade Receivables (RMB thousands) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 90 days | 34,318 | 53,428 | | 90–120 days | 7,069 | 6,830 | | 120 days to 180 days | 3,887 | 19,748 | | 180 days to 1 year | 6,513 | 8,509 | | **Total** | **51,787** | **88,515** | - Total trade receivables decreased from **RMB88,515 thousands** as of December 31, 2024, to **RMB51,787 thousands** as of June 30, 2025[30](index=30&type=chunk) - Trade receivables aged within 90 days significantly decreased, indicating improved collection efficiency[30](index=30&type=chunk) [Trade and Other Payables](index=11&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, trade payables within 3 months increased to RMB6,361 thousands, and amounts due to directors within other payables slightly increased Ageing Analysis of Trade Payables (RMB thousands) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 3 months | 6,361 | 2,694 | - Other payables include an amount due to directors of approximately **RMB48,948 thousands** as of June 30, 2025, which is unsecured, interest-free, and repayable on demand[31](index=31&type=chunk) [Capital, Reserves and Dividends](index=12&type=section&id=Capital,%20Reserves%20and%20Dividends) The Group's share capital increased due to share placing and exercise of share options, share premium is distributable to shareholders, but no dividends were paid for the period - The Company's share capital increased due to share placing and the exercise of share options under the share option scheme[33](index=33&type=chunk) - Funds in the share premium account are distributable to shareholders, subject to the Company being able to pay its debts as they fall due immediately following the date of the proposed distribution[34](index=34&type=chunk) - No dividends were paid or proposed for the six months ended June 30, 2025 and 2024[34](index=34&type=chunk) [Share Capital](index=12&type=section&id=Share%20Capital) As of June 30, 2025, issued and fully paid share capital increased to 219,846 thousands shares, primarily due to the placing of 31,632 thousands shares and the exercise of share options Authorised and Issued Share Capital (As of June 30/December 31) | Item | 2025 Number of Shares | 2025 RMB thousands | 2024 Number of Shares | 2024 RMB thousands | | :--- | :--- | :--- | :--- | :--- | | Authorised share capital (HKD0.1 par value per share) | 1,000,000,000 | 79,380 | 1,000,000,000 | 79,380 | | Issued and fully paid share capital (as at January 1) | 186,514,000 | 15,654 | 158,176,000 | 13,026 | | Shares issued under share option scheme | 1,700,000 | 157 | – | – | | Shares issued due to placing | 31,632,000 | 2,902 | 28,338,000 | 2,628 | | Issued and fully paid share capital (as at June 30/December 31) | 219,846,000 | 18,713 | 186,514,000 | 15,654 | - On June 13, 2025, the Company placed **31,632,000 shares** at a placing price of **HKD1.35** per share, raising net proceeds of approximately **RMB38,490 thousands**, intended for developing the supply chain management business[33](index=33&type=chunk) [Share Premium](index=12&type=section&id=Share%20Premium) Under the Companies Law of the Cayman Islands, funds in the Company's share premium account are distributable to shareholders, provided the Company can repay its debts as they fall due - Under the Companies Law of the Cayman Islands, funds in the Company's share premium account are distributable to shareholders[34](index=34&type=chunk) - The distribution is subject to the Company being able to pay its debts as they fall due in the ordinary course of business[34](index=34&type=chunk) [Dividend Policy](index=12&type=section&id=Dividend%20Policy) The Company neither paid nor proposed any dividends for the six months ended June 30, 2025 and 2024 - No dividends were paid or proposed for the six months ended June 30, 2025 and 2024[34](index=34&type=chunk) - No dividends are proposed to be paid since the end of the reporting period[34](index=34&type=chunk) [Management Discussion and Analysis](index=13&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a comprehensive review of the Group's business performance, financial results, working capital, liquidity, capital structure, and risk management for the period [Business Review and Outlook](index=13&type=section&id=Business%20Review%20and%20Outlook) In H1 2025, the Group's revenue surged by **179.0%** to RMB289.9 millions, but net loss widened to RMB4.5 millions, primarily due to economic challenges in Mainland China and the new supply chain management business; the Group remains optimistic about expanding its supply chain management business H1 2025 Performance Overview | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 289.9 | 103.9 | +179.0% | | Net loss | (4.5) | (1.1) | +309.1% | - The Mainland China economy faces challenges, with changes in consumer spending patterns, decreased confidence, and reduced income leading to weak demand in the wholesale and retail markets[35](index=35&type=chunk) - The Group has commenced a new supply chain management business in Mainland China, covering bulk commodity trading products[35](index=35&type=chunk) - The Group is optimistic about the prospects of the apparel wholesale business and supply chain management business in Mainland China for 2025, expecting the supply chain management business to expand into import and export of bulk commodity trading products[37](index=37&type=chunk) [Financial Review](index=14&type=section&id=Financial%20Review) In H1 2025, the Group's revenue significantly increased by **179.0%** to RMB289.9 millions, driven by the supply chain management business; however, cost of sales grew even faster, leading to a decline in gross profit and gross margin, and an expanded loss for the period - The Group's revenue increased by approximately **179.0%**, from approximately **RMB103.9 millions** in H1 2024 to approximately **RMB289.9 millions** in H1 2025[38](index=38&type=chunk) - The supply chain management business contributed approximately **RMB239.1 millions** in revenue, accounting for **82.5%** of total revenue[38](index=38&type=chunk) - Gross profit decreased from approximately **RMB12.4 millions** in H1 2024 to approximately **RMB10.8 millions** in H1 2025, with gross margin declining by **8.2 percentage points** to **3.7%**[40](index=40&type=chunk) - Loss after tax for the period was approximately **RMB4.5 millions**, compared to a loss of approximately **RMB1.1 millions** in H1 2024[47](index=47&type=chunk) [Revenue](index=14&type=section&id=Revenue) Revenue for H1 2025 significantly increased by **179.0%**, primarily driven by the newly launched bulk commodity trading supply chain management business, which contributed **82.5%** of total revenue - The Group's revenue increased by approximately **RMB179.0%**, from approximately **RMB103.9 millions** in H1 2024 to approximately **RMB289.9 millions** in H1 2025[38](index=38&type=chunk) - The supply chain management business for bulk commodity trading products contributed approximately **RMB239.1 millions** in revenue, accounting for **82.5%** of the Group's revenue[38](index=38&type=chunk) - Revenue from the wholesale business of children's wear and other apparel-related products decreased to approximately **RMB50.8 millions**, accounting for **17.5%** of total revenue[38](index=38&type=chunk) [Cost of Sales](index=14&type=section&id=Cost%20of%20Sales) Cost of sales significantly increased by **205.0%** to RMB279.1 millions, largely consistent with changes in product and sales mix and the emergence of the supply chain management business - Cost of sales increased by approximately **RMB187.6 millions** or approximately **205.0%**, from approximately **RMB91.5 millions** in H1 2024 to approximately **RMB279.1 millions** in H1 2025[39](index=39&type=chunk) - This increase is largely consistent with changes in product and sales mix and the emergence of the supply chain management business for bulk commodity trading products[39](index=39&type=chunk) [Gross Profit and Gross Margin](index=15&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross profit decreased by **13.1%** to RMB10.8 millions, and gross margin fell by **8.2 percentage points** to **3.7%**, reflecting reduced profitability due to market conditions and changes in product mix - Gross profit decreased from approximately **RMB12.4 millions** in H1 2024 to approximately **RMB10.8 millions** in H1 2025[40](index=40&type=chunk) - Gross margin for H1 2025 was approximately **3.7%**, a decrease of approximately **8.2 percentage points** from **11.9%** in H1 2024[40](index=40&type=chunk) [Other Income](index=15&type=section&id=Other%20Income) Other income decreased from RMB1.9 millions in H1 2024 to RMB0.8 millions in H1 2025, primarily due to reduced interest income and other income - The Group's other income for H1 2025 was approximately **RMB0.8 millions**, compared to **RMB1.9 millions** in H1 2024[41](index=41&type=chunk) - This primarily includes interest income and rental income[41](index=41&type=chunk) [Net Reversal of Expected Credit Loss Provision for Trade and Other Receivables](index=15&type=section&id=Net%20Reversal%20of%20Expected%20Credit%20Loss%20Provision%20for%20Trade%20and%20Other%20Receivables) The net reversal of expected credit loss provision for trade and other receivables was RMB0.1 millions for the period, consistent with the prior year, reflecting management's prudent assessment of creditworthiness, collection history, and market conditions - A net reversal of expected credit loss provision for trade and other receivables of approximately **RMB0.1 millions** was made[42](index=42&type=chunk) - Management's decision was based on current creditworthiness, past collection records, ageing status, and current market conditions[42](index=42&type=chunk) [Selling and Distribution Expenses](index=15&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses decreased by **5.9%** to RMB8.1 millions, mainly due to reduced advertising and marketing-related expenses in the current business environment - Selling and distribution expenses were approximately **RMB8.1 millions**, a decrease of approximately **RMB0.5 millions** (or approximately **5.9%**) from approximately **RMB8.6 millions** in H1 2024[43](index=43&type=chunk) - The decrease was primarily due to lower advertising and marketing-related expenses in H1 2025 given the current business environment[43](index=43&type=chunk) - As a percentage of revenue, selling and distribution expenses decreased from **8.2%** in H1 2024 to **2.8%** in H1 2025[43](index=43&type=chunk) [Administrative and Other Operating Expenses](index=15&type=section&id=Administrative%20and%20Other%20Operating%20Expenses) Administrative and other operating expenses increased by **17.3%** to RMB7.7 millions, but as a percentage of revenue, they decreased from **6.3%** to **2.7%** - Administrative and other operating expenses were approximately **RMB7.7 millions**, an increase of approximately **RMB1.1 millions** (or approximately **17.3%**) from approximately **RMB6.6 millions** in H1 2024[44](index=44&type=chunk) - As a percentage of revenue, they decreased from **6.3%** in H1 2024 to **2.7%** in H1 2025[44](index=44&type=chunk) - These primarily include design and development expenses, salaries and benefits for administrative staff, professional fees, and taxes and levies[44](index=44&type=chunk) [Finance Costs](index=16&type=section&id=Finance%20Costs) Finance costs remained at a similar level of approximately RMB0.3 millions in H1 2025 - Finance costs remained at a similar level of approximately **RMB0.3 millions** in H1 2025 and H1 2024[45](index=45&type=chunk) - Finance costs primarily include interest on bank loans[45](index=45&type=chunk) [Taxation](index=16&type=section&id=Taxation) An income tax expense of RMB0.1 millions was recorded in H1 2025, compared to none in H1 2024, mainly because Mainland China subsidiaries are subject to a **25%** corporate income tax rate - An income tax expense of **RMB0.1 millions** was recorded in H1 2025 (H1 2024: nil)[46](index=46&type=chunk) - Currently, the Group's principal subsidiaries in Mainland China are subject to a corporate income tax rate of **25%**[46](index=46&type=chunk) [Loss for the Period After Tax](index=16&type=section&id=Loss%20for%20the%20Period%20After%20Tax) Loss for the period after tax expanded to approximately RMB4.5 millions, a significant increase from RMB1.1 millions in H1 2024 - Loss after tax for the period was approximately **RMB4.5 millions**, compared to a loss of approximately **RMB1.1 millions** in H1 2024[47](index=47&type=chunk) [Working Capital Management](index=16&type=section&id=Working%20Capital%20Management) As of June 30, 2025, the Group's net current assets increased to RMB125.9 millions, and the current ratio improved to **2.6 times**, with significant reductions in trade receivables, inventory, and trade payables turnover days Working Capital Turnover Days (Days) | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Trade receivables | 65 | 219 | | Inventories | 20 | 64 | | Trade payables | 8 | 26 | - As of June 30, 2025, the Group recorded net current assets of approximately **RMB125.9 millions** and a current ratio of **2.6 times**[48](index=48&type=chunk) - Trade receivables turnover days significantly shortened from **219 days** to **65 days**, inventory turnover days from **64 days** to **20 days**, and trade payables turnover days from **26 days** to **8 days**[49](index=49&type=chunk) [Liquidity and Capital Resources](index=17&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the Group's cash and cash equivalents significantly increased to RMB121.7 millions, with no bank borrowings; net cash from operating activities decreased, but net cash from financing activities substantially increased due to share placing and exercise of share options - As of June 30, 2025, the Group's total cash and cash equivalents were approximately **RMB121.7 millions**, a significant increase from **RMB39.7 millions** as of December 31, 2024[50](index=50&type=chunk) - As of June 30, 2025, the Group had no bank borrowings, compared to approximately **RMB17.0 millions** as of December 31, 2024[50](index=50&type=chunk) - Net cash generated from operating activities decreased by approximately **RMB19.2 millions**, from a net inflow of **RMB67.8 millions** in H1 2024 to a net inflow of **RMB48.6 millions** in H1 2025[50](index=50&type=chunk) - Net cash generated from financing activities was approximately **RMB31.6 millions**, primarily from proceeds from share placing and exercise of share options[50](index=50&type=chunk) [Capital Structure and Fundraising Activities](index=18&type=section&id=Capital%20Structure%20and%20Fundraising%20Activities) In H1 2025, the Company raised approximately HKD41.9 millions net proceeds through the placing of 31,632,000 shares, intended for developing its supply chain management business, platform construction, market promotion, and general working capital, which remained unutilized as of the reporting period end - On May 26, 2025, the Company entered into a placing agreement with the placing agent to place up to **31,635,200 placing shares** at **HKD1.35** per share[52](index=52&type=chunk) - The placing of **31,632,000 shares** was completed on June 13, 2025, raising net proceeds of approximately **HKD41.9 millions**[53](index=53&type=chunk) - As of June 30, 2025, the Company had not utilized any of the net proceeds[53](index=53&type=chunk) [Placing of Shares Under General Mandate](index=18&type=section&id=Placing%20of%20Shares%20Under%20General%20Mandate) The Company entered into a placing agreement with a placing agent to place up to 31,635,200 shares at HKD1.35 per share to no fewer than six placees, under a general mandate - The Company entered into a placing agreement with the placing agent to place up to **31,635,200 placing shares** at a placing price of **HKD1.35** per placing share to no fewer than six placees on a best effort basis[52](index=52&type=chunk) - The placing shares were allotted and issued under a general mandate[52](index=52&type=chunk) [Use of Proceeds from Share Placing](index=18&type=section&id=Use%20of%20Proceeds%20from%20Share%20Placing) The net proceeds of approximately HKD41.9 millions from the placing are intended for establishing a cross-border B2B platform, channel expansion, staff recruitment, and general working capital, with no funds utilized as of the reporting period end Planned and Actual Use of Net Proceeds from Share Placing (HKD millions) | Use | Planned Amount | Percentage of Total Net Proceeds | Actual Use as of June 30, 2025 | | :--- | :--- | :--- | :--- | | Establishment of a multi-language cross-border B2B platform and smart customs declaration system | 7.0 | 16.7% | – | | Channel expansion and market promotion | 10.0 | 23.9% | – | | Expansion of the Group's workforce to broaden business scope | 6.0 | 14.3% | – | | General working capital | 18.9 | 45.1% | – | | **Total** | **41.9** | **100.0%** | **–** | - As of June 30, 2025, the Company had not utilized any of the net proceeds[53](index=53&type=chunk) [Financial Risk Management](index=19&type=section&id=Financial%20Risk%20Management) The Group manages financial risks through treasury policies, maintaining sufficient cash and bank financing, and considers currency and exchange rate risks to be minimal as its primary business is conducted in RMB - The Group has treasury policies aimed at more effectively controlling treasury operations and reducing borrowing costs, requiring the maintenance of adequate levels of cash and cash equivalents and sufficient available bank financing[55](index=55&type=chunk) - The Group's business is primarily conducted in RMB, and most monetary assets and liabilities are denominated in RMB, so management believes the currency risk exposure is not significant[55](index=55&type=chunk) - The Directors believe the Group does not face significant exchange rate risk[55](index=55&type=chunk) [Capital Commitments and Contingent Liabilities](index=19&type=section&id=Capital%20Commitments%20and%20Contingent%20Liabilities) As of June 30, 2025, the Group had no significant capital commitments or contingent liabilities - As of June 30, 2025, the Group had no significant capital commitments or contingent liabilities[56](index=56&type=chunk) [Pledge of Assets](index=19&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, no property and prepaid lease payments were pledged by the Group, compared to approximately RMB9.7 millions of assets pledged as of December 31, 2024 - As of June 30, 2025, no property and prepaid lease payments were pledged for certain bank loans[57](index=57&type=chunk) - As of December 31, 2024, certain property and prepaid lease payments with a net book value of approximately **RMB9.7 millions** were pledged[57](index=57&type=chunk) [Major Investments and Material Acquisitions and Disposals of Subsidiaries](index=19&type=section&id=Major%20Investments%20and%20Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries) For the six months ended June 30, 2025, the Group made no other major investments, material acquisitions, or disposals - For the six months ended June 30, 2025, the Group made no other major investments, material acquisitions, or disposals[58](index=58&type=chunk) [Investments and Hedges Held in Foreign Currencies](index=19&type=section&id=Investments%20and%20Hedges%20Held%20in%20Foreign%20Currencies) For the six months ended June 30, 2025, the Group held no investments denominated in foreign currencies, and its working capital or liquidity was not materially affected by exchange rate fluctuations - For the six months ended June 30, 2025, the Group held no investments denominated in foreign currencies[59](index=59&type=chunk) - The Group's working capital or liquidity did not face any significant difficulties or material impact due to exchange rate fluctuations[59](index=59&type=chunk) [Other Information](index=20&type=section&id=Other%20Information) This section covers additional information including employee and remuneration policies, securities transactions by directors, corporate governance, audit committee review, dividends, public float, results publication, and board composition [Employees and Remuneration Policy](index=20&type=section&id=Employees%20and%20Remuneration%20Policy) The Group's remuneration policy aims to attract and motivate talent, with compensation based on job nature, position, and market levels; as of June 30, 2025, it employed approximately 310 full-time employees, with total staff costs of approximately RMB11.7 millions - The Group's remuneration policy aims to attract, retain, and motivate talented individuals, with performance-based compensation reflecting market levels[60](index=60&type=chunk) - As of June 30, 2025, the Group employed approximately **310 full-time employees**[60](index=60&type=chunk) - Total staff costs for H1 2025 were approximately **RMB11.7 millions** (H1 2024: approximately **RMB11.6 millions**)[60](index=60&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=20&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[61](index=61&type=chunk) [Corporate Governance Code](index=20&type=section&id=Corporate%20Governance%20Code) The Company is committed to maintaining high standards of corporate governance and has adopted the HKEX Corporate Governance Code, with two deviations: the Chairman and CEO roles are combined, and management does not provide monthly updates to the Board - The Company has adopted the code provisions of the Corporate Governance Code set out in Appendix 14 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[62](index=62&type=chunk) - A deviation from code provision A.2.1 exists, where the roles of Chairman and Chief Executive Officer are combined and held by Mr. Ding Peiji, which the Company believes ensures consistent leadership direction[62](index=62&type=chunk) - A deviation from code provision C.1.2 exists, where management does not provide monthly updates to the Board, but provides them when appropriate[63](index=63&type=chunk) [Standard Code for Securities Transactions by Directors](index=21&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted the Standard Code as set out in Appendix 10 of the Listing Rules, and all Directors have confirmed full compliance for H1 2025 - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers set out in Appendix 10 to the Listing Rules[64](index=64&type=chunk) - Following specific enquiries to all Directors, all Directors have confirmed their full compliance with the required standards of dealing as set out in the Standard Code for H1 2025[64](index=64&type=chunk) [Audit Committee and Review of Unaudited Interim Results](index=21&type=section&id=Audit%20Committee%20and%20Review%20of%20Unaudited%20Interim%20Results) The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025, and found them to be in compliance with applicable accounting standards and Listing Rules - The Company has established an Audit Committee in compliance with Rule 3.21 of the Listing Rules, responsible for reviewing and overseeing the Group's financial reporting process, internal controls, and risk management[65](index=65&type=chunk) - The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025, and is of the opinion that these statements comply with applicable accounting standards and the Listing Rules, and are adequately disclosed[65](index=65&type=chunk) [Interim Dividend](index=21&type=section&id=Interim%20Dividend) The Board of Directors resolved not to declare any interim dividend for H1 2025 - The Board of Directors resolved not to declare any interim dividend for H1 2025 (H1 2024: nil)[66](index=66&type=chunk) [Sufficiency of Public Float](index=21&type=section&id=Sufficiency%20of%20Public%20Float) The Directors confirm that the Company has maintained a sufficient public float of over **25%** of its issued share capital as required by the Listing Rules up to the date of this announcement - The Directors confirm that the Company has maintained a sufficient public float of over **25%** of its issued share capital as required by the Listing Rules up to the date of this announcement[67](index=67&type=chunk) [Publication of Results](index=21&type=section&id=Publication%20of%20Results) This unaudited interim results announcement has been published on the Company's and HKEX websites, and the interim report will be dispatched to shareholders and published by September 30, 2025 - This unaudited interim results announcement has been published on the Company's website www.redkids.com and the HKEX website www.hkexnews.hk[68](index=68&type=chunk) - The Company's H1 2025 interim report will be dispatched to the Company's shareholders and published on the Company's website and the HKEX website on or before September 30, 2025[68](index=68&type=chunk) [Acknowledgements](index=22&type=section&id=Acknowledgements) The Board of Directors extends its gratitude to the management team, employees, shareholders, and business partners for their support - The Board of Directors extends its sincere gratitude to the management team and employees for their contributions and dedication[69](index=69&type=chunk) - Appreciation is also extended to shareholders and business partners for their strong support of the Group[69](index=69&type=chunk) [Board Information](index=22&type=section&id=Board%20Information) As of the date of this announcement, the Board of Directors comprises four executive directors (Mr. Ding Peiji, Mr. Ding Peiyuan, Ms. Liu Min, Mr. Yu Jianjun) and three independent non-executive directors (Mr. Wu Chengjian, Mr. Chen Jun, Mr. Guo Zheng) - As of the date of this announcement, the executive directors are Mr. Ding Peiji, Mr. Ding Peiyuan, Ms. Liu Min, and Mr. Yu Jianjun[70](index=70&type=chunk) - The independent non-executive directors are Mr. Wu Chengjian, Mr. Chen Jun, and Mr. Guo Zheng[70](index=70&type=chunk) - Mr. Ding Peiji serves as the Chairman of the Board[70](index=70&type=chunk)

[Announcement Cover and Financial Highlights](index=1&type=section&id=%E5%85%AC%E5%91%8A%E5%B0%81%E9%9D%A2%E5%8F%8A%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) The company's revenue and gross profit increased, gross profit margin improved, and loss for the period significantly narrowed in the first half of 2025 Financial Highlights for the First Half of 2025 | Metric | 1H 2025 (HKD thousand) | 1H 2024 (HKD thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 263,907 | 251,982 | Increased by approx. 4.7% | | Gross Profit | 69,115 | 64,546 | Increased by approx. 7.1% | | Gross Profit Margin | 26.2% | 25.6% | Increased by approx. 0.6 percentage points | | Loss for the Period | (28,552) | (32,854) | Decreased by approx. 13.1% | | Basic Loss Per Share | (1.36) HK cents | (1.32) HK cents | Increased by approx. 3.0% | [Condensed Consolidated Financial Statements](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the condensed consolidated financial statements, including the statement of profit or loss and other comprehensive income, and the statement of financial position [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the company saw increased revenue, improved gross profit and margin, and a significantly narrowed loss, primarily due to increased fair value gains on financial assets at fair value through other comprehensive income Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | 1H 2025 (HKD thousand) | 1H 2024 (HKD thousand) | | :--- | :--- | :--- | | Revenue | 263,907 | 251,982 | | Cost of Sales | (194,792) | (187,436) | | Gross Profit | 69,115 | 64,546 | | Other Income and Gains | 3,657 | 5,425 | | Selling and Distribution Expenses | (18,410) | (21,659) | | Administrative Expenses | (77,726) | (61,579) | | Other Expenses | (3,272) | (17,642) | | Finance Costs | (301) | (359) | | Share of Profit of Associates | 324 | – | | Loss Before Tax | (26,613) | (31,268) | | Income Tax Expense | (1,939) | (1,586) | | Loss for the Period | (28,552) | (32,854) | | Loss for the Period Attributable to Equity Holders of the Company | (29,932) | (29,512) | | Fair Value Change on Financial Assets at Fair Value Through Other Comprehensive Income | 25,706 | 10,818 | | Basic Loss Per Share (HK cents) | (1.36) | (1.32) | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the Group's total assets significantly increased, driven by substantial rises in net assets of segregated funds and cash held for clients within current assets, while current liabilities also surged due to increased net liabilities of segregated funds and trade payables, leading to a higher gearing ratio Key Data from Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | | :--- | :--- | :--- | | **Assets** | | | | Non-current Assets | 372,186 | 339,313 | | Current Assets | 2,148,372 | 745,712 | | Of which: Net Assets of Segregated Funds | 1,271,638 | – | | Of which: Cash Held for Clients | 467,218 | 223,522 | | **Liabilities** | | | | Current Liabilities | 1,824,577 | 385,009 | | Of which: Net Liabilities of Segregated Funds | 1,271,638 | – | | Of which: Trade Payables | 506,572 | 335,483 | | Non-current Liabilities | 1,875 | 3,064 | | **Equity** | | | | Total Equity | 694,106 | 696,952 | | **Other** | | | | Net Current Assets | 323,795 | 360,703 | | Total Assets Less Current Liabilities | 695,981 | 700,016 | [Notes to the Condensed Consolidated Interim Financial Statements](index=6&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section provides detailed notes to the condensed consolidated interim financial statements, covering company information, accounting policies, and segment performance [1. Company Information](index=6&type=section&id=1.%20%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) Future Development Holdings Limited is an investment holding company incorporated in the Cayman Islands and listed on the Main Board of the HKEX, with subsidiaries primarily engaged in catering services, financial business, property holding, and investment holding - The company is an investment holding company incorporated in the Cayman Islands, with shares listed on the Main Board of the HKEX[10](index=10&type=chunk) - Principal businesses include catering services, financial business, property holding, and investment holding[10](index=10&type=chunk) [2. Basis of Preparation and Accounting Policies](index=6&type=section&id=2.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96%E5%8F%8A%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The condensed consolidated interim financial statements are prepared in accordance with IAS 34 and the HKEX Listing Rules, adopting IFRS amendments issued by the IASB, with no material impact on reported amounts - The financial statements are prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and Appendix 16 of the HKEX Listing Rules[11](index=11&type=chunk) - Amendments to International Financial Reporting Standards issued by the IASB have been adopted, with no material impact on reported amounts and disclosures[12](index=12&type=chunk)[13](index=13&type=chunk) [3. Operating Segment Information](index=7&type=section&id=3.%20%E7%B6%93%E7%87%9F%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group's operating segments include catering, financial business, and property holding, with management allocating resources and assessing performance based on segment results. The financial business segment reported an expanded loss in 1H 2025, while catering maintained profit growth - The Group's operating segments include catering, financial business, and property holding[14](index=14&type=chunk)[15](index=15&type=chunk) Operating Segment Revenue and Profit/(Loss) (HKD thousand) | Segment | 1H 2025 Revenue | 1H 2024 Revenue | 1H 2025 Profit/(Loss) | 1H 2024 Profit/(Loss) | | :--- | :--- | :--- | :--- | :--- | | Catering | 213,811 | 203,800 | 5,364 | 4,019 | | Financial Business | 49,452 | 47,598 | (24,101) | (10,463) | | Property Holding | 644 | 584 | (2,637) | (17,852) | | **Total** | **263,907** | **251,982** | **(21,374)** | **(24,296)** | Operating Segment Assets and Liabilities (HKD thousand) | Segment | June 30, 2025 Assets | December 31, 2024 Assets | June 30, 2025 Liabilities | December 31, 2024 Liabilities | | :--- | :--- | :--- | :--- | :--- | | Catering | 135,124 | 128,123 | 20,315 | 17,723 | | Financial Business | 2,272,185 | 837,132 | 1,804,650 | 366,076 | | Property Holding | 40,149 | 42,757 | 322 | 297 | | **Total Assets/Liabilities** | **2,520,558** | **1,085,025** | **1,826,452** | **388,073** | [4. Revenue](index=10&type=section&id=4.%20%E6%94%B6%E7%9B%8A) For the six months ended June 30, 2025, the Group's total revenue grew by 4.7% year-on-year, driven by increased catering revenue, credit card processing fees, and the introduction of insurance and wealth management services, despite a decline in professional services income Revenue by Major Product and Service Categories (HKD thousand) | Revenue Source | 1H 2025 | 1H 2024 | | :--- | :--- | :--- | | Revenue from catering services | 213,811 | 203,800 | | Revenue from provision of professional services | 29,638 | 36,555 | | Revenue from provision of services for trading of securities, futures contracts and other related products | 3,604 | 4,089 | | Revenue from asset management and advisory services on securities | 5,556 | 3,657 | | Credit card processing fees | 6,929 | 3,267 | | Revenue from insurance and wealth management services | 3,558 | – | | Total revenue from contracts with customers | 263,096 | 251,368 | | Interest income from money lending business | 167 | – | | Margin interest income from securities brokerage business | – | 30 | | Rental income from investment properties | 644 | 584 | | Revenue from other sources | 811 | 614 | | **Total Revenue** | **263,907** | **251,982** | Disaggregation of Revenue from Contracts with Customers (HKD thousand) | Timing of Revenue Recognition | 1H 2025 | 1H 2024 | | :--- | :--- | :--- | | At a point in time | 234,120 | 220,780 | | Over time | 28,976 | 30,588 | | **Total** | **263,096** | **251,368** | [5. Other Income and Gains](index=11&type=section&id=5.%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) For the six months ended June 30, 2025, other income and gains decreased by 32.6% year-on-year, primarily due to lower interest income from bank deposits and unrecognised net exchange gains Details of Other Income and Gains (HKD thousand) | Item | 1H 2025 | 1H 2024 | | :--- | :--- | :--- | | Interest income from bank deposits | 3,064 | 3,463 | | Net exchange gains | – | 481 | | Reversal of impairment loss on loans and interest receivables | 500 | 657 | | Reversal of impairment loss on trade receivables | – | 199 | | Miscellaneous income | 93 | 625 | | **Total Other Income and Gains** | **3,657** | **5,425** | [6. Other Expenses](index=12&type=section&id=6.%20%E5%85%B6%E4%BB%96%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, other expenses significantly decreased by 81.5% year-on-year, mainly due to reduced fair value losses on investment properties and the elimination of impairment losses on properties under development Details of Other Expenses (HKD thousand) | Item | 1H 2025 | 1H 2024 | | :--- | :--- | :--- | | Impairment loss on trade receivables | 836 | – | | Impairment loss on margin loans receivables | 36 | 242 | | Fair value loss on investment properties | 2,400 | 8,400 | | Impairment loss on properties under development | – | 9,000 | | **Total Other Expenses** | **3,272** | **17,642** | [7. Finance Costs](index=12&type=section&id=7.%20%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) For the six months ended June 30, 2025, finance costs slightly decreased year-on-year, primarily comprising finance costs on lease liabilities Details of Finance Costs (HKD thousand) | Item | 1H 2025 | 1H 2024 | | :--- | :--- | :--- | | Interest on bank borrowings | – | 2 | | Finance costs on lease liabilities | 301 | 357 | | **Total Finance Costs** | **301** | **359** | [8. Loss Before Tax](index=13&type=section&id=8.%20%E9%99%A4%E7%A8%85%E5%89%8D%E虧%E6%90%8D) For the six months ended June 30, 2025, the components of loss before tax showed a significant increase in employee benefit expenses, while depreciation charges decreased Components of Loss Before Tax (HKD thousand) | Item | 1H 2025 | 1H 2024 | | :--- | :--- | :--- | | Cost of inventories sold | 188,615 | 179,254 | | Depreciation of property, plant and equipment | 438 | 849 | | Depreciation of right-of-use assets | 2,880 | 4,169 | | Warehousing service expenses | 8,974 | 9,880 | | Employee benefit expenses (including directors' emoluments) | 51,031 | 36,855 | | Auditor's remuneration | 442 | 318 | | Net foreign exchange loss/(gain) | 1,889 | (481) | [9. Income Tax Expense](index=14&type=section&id=9.%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, income tax expense increased year-on-year, with Hong Kong profits tax continuing to apply a two-tiered tax rate system Details of Income Tax Expense (HKD thousand) | Item | 1H 2025 | 1H 2024 | | :--- | :--- | :--- | | Current tax expense | 1,741 | 1,363 | | Deferred tax expense | 198 | 223 | | **Total Income Tax Expense** | **1,939** | **1,586** | - Hong Kong profits tax adopts a two-tiered system, with the first HKD 2 million of assessable profits taxed at **8.25%** and the remainder at **16.5%**[26](index=26&type=chunk) [10. Dividends](index=14&type=section&id=10.%20%E8%82%A1%E6%81%AF) The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025[27](index=27&type=chunk) [11. Loss Per Share](index=15&type=section&id=11.%20%E6%AF%8F%E8%82%A1%E虧%E6%90%8D) For the six months ended June 30, 2025, basic loss per share was 1.36 HK cents, a slight increase from the prior year, with basic and diluted loss per share being identical due to the anti-dilutive effect of share options Loss Per Share Calculation Data | Metric | 1H 2025 | 1H 2024 | | :--- | :--- | :--- | | Loss for the Period Attributable to Equity Holders of the Company (HKD thousand) | (29,932) | (29,512) | | Weighted Average Number of Ordinary Shares (thousand shares) | 2,203,361 | 2,241,283 | | **Basic Loss Per Share (HK cents)** | **(1.36)** | **(1.32)** | - Basic loss per share is the same as diluted loss per share because the granted share options are anti-dilutive[31](index=31&type=chunk) [12. Property, Plant and Equipment and Investment Properties](index=16&type=section&id=12.%20%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99%E4%BB%A5%E5%8F%8A%E6%8A%95%E8%B3%87%E7%89%A9%E6%A5%AD) The Group's property, plant and equipment acquisition costs significantly decreased this period compared to the prior year, and investment properties were valued by independent valuers using the investment method, resulting in a fair value decrease of HKD 2.4 million - Acquisition costs for property, plant and equipment were approximately **HKD 15,000** this period, a significant decrease from approximately **HKD 110,000** in the prior year[32](index=32&type=chunk) - Investment properties were valued by external valuers using the investment method, resulting in a fair value decrease of **HKD 2.4 million** (1H 2024: decrease of HKD 8.4 million)[32](index=32&type=chunk) [13. Goodwill](index=16&type=section&id=13.%20%E5%95%86%E8%AD%BD) As of June 30, 2025, the carrying amount of goodwill increased to HKD 43.715 million due to the acquisition of a subsidiary Movement in Goodwill (HKD thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cost at beginning/end of period | 48,313 | 48,313 | | Impact of acquisition of a subsidiary | 2,934 | – | | Cost at end of period/year | 51,247 | 48,313 | | Accumulated impairment losses | 7,532 | 7,532 | | **Carrying Amount at end of period/year** | **43,715** | **40,781** | [14. Financial Assets at Fair Value Through Other Comprehensive Income](index=17&type=section&id=14.%20%E6%8C%89%E5%85%AC%E5%B9%B3%E5%80%BC%E9%80%8F%E9%81%8E%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E5%88%97%E8%B3%A0%E4%B9%8B%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2) As of June 30, 2025, total financial assets at fair value through other comprehensive income increased to HKD 209.2 million, primarily driven by unlisted investment funds Financial Assets at Fair Value Through Other Comprehensive Income (HKD thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Equity securities listed in Hong Kong | 20,795 | 15,180 | | Unlisted investment funds | 188,405 | 168,314 | | **Total** | **209,200** | **183,494** | [15. Loans and Interest Receivables](index=17&type=section&id=15.%20%E6%87%89%E6%94%B6%E8%B2%B8%E6%AC%BE%E5%8F%8A%E5%88%A9%E6%81%AF) As of June 30, 2025, total loans and interest receivables amounted to HKD 3.916 million, including new loans and impairment loss reversals, with a non-current portion appearing for the first time Details and Movement of Loans and Interest Receivables (HKD thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total loans and interest receivables | 6,620 | 3,204 | | Less: Impairment losses recognised | (2,704) | (3,204) | | **Carrying Amount** | **3,916** | **–** | | Of which: Non-current assets | 3,508 | – | | Of which: Current assets | 408 | – | | **Movement during the period** | | | | Beginning of period/year | – | – | | New loans granted | 3,749 | – | | Interest income on loans | 167 | – | | Repayment of loans and interest by borrowers | (500) | (757) | | Reversal of recognised impairment losses | 500 | 757 | | **End of period/year** | **3,916** | **–** | [16. Trade Receivables](index=18&type=section&id=16.%20%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade receivables were HKD 60.99 million, a decrease from end-2024, mainly due to reduced receivables from securities and futures trading services, while other business trade receivables generally have 30-180 day credit terms Details of Trade Receivables (HKD thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade receivables from securities and futures trading services | 1,161 | 6,976 | | Trade receivables from other businesses | 62,178 | 64,458 | | Less: Provision for trade receivables from other businesses | (2,349) | (1,513) | | **Total** | **60,990** | **69,957** | - Trade receivables from other businesses generally have credit terms of **30 to 180 days**, with no significant concentration of credit risk[37](index=37&type=chunk) Ageing Analysis of Trade Receivables from Other Businesses (HKD thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 30 days | 36,227 | 45,686 | | 31 to 60 days | 19,974 | 13,500 | | 61 to 90 days | 1,039 | 2,505 | | 91 to 180 days | 1,388 | 502 | | 181 to 365 days | 74 | 178 | | Over 365 days | 1,127 | 574 | [17. Prepayments, Deposits and Other Receivables](index=20&type=section&id=17.%20%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85%E3%80%81%E6%8C%89%E9%87%91%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, total prepayments, deposits, and other receivables increased to HKD 88.599 million, with a significant portion being non-current assets Details of Prepayments, Deposits and Other Receivables (HKD thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Prepayments | 21,053 | 17,616 | | Deposits and other receivables | 67,546 | 65,336 | | **Total** | **88,599** | **82,952** | | Of which: Non-current assets | 59,788 | 57,675 | | Of which: Current assets | 28,811 | 25,277 | [18. Trade Payables](index=21&type=section&id=18.%20%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade payables significantly increased to HKD 506.572 million, primarily due to increased payables from securities and futures trading services and custody services Details of Trade Payables (HKD thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables from securities and futures trading services | 420,623 | 282,416 | | Trade payables from provision of custody services | 82,438 | 49,884 | | Trade payables from other businesses | 3,511 | 3,183 | | **Total** | **506,572** | **335,483** | - Trade payables are interest-free and generally settled within **30 to 180 days**[42](index=42&type=chunk) Ageing Analysis of Trade Payables from Other Businesses (HKD thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 30 days | 849 | 1,200 | | 31 to 90 days | – | 948 | | 91 to 180 days | 517 | 87 | | Over 180 days | 2,145 | 948 | | **Total** | **3,511** | **3,183** | [19. Other Payables and Accruals](index=22&type=section&id=19.%20%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%87%89%E8%A8%88%E8%B2%BB%E7%94%A8) As of June 30, 2025, total other payables and accruals were HKD 35.156 million, a slight decrease from end-2024, with contract liabilities showing an increase Details of Other Payables and Accruals (HKD thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Other payables | 9,128 | 11,797 | | Accrued expenses | 4,138 | 7,363 | | Contract liabilities | 18,820 | 16,766 | | Other taxes payable | 5 | 4 | | Amounts due to related parties | 3,065 | 2,708 | | **Total** | **35,156** | **38,638** | [Management Discussion and Analysis](index=23&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) This section provides management's discussion and analysis of the Group's business and financial performance, including segment reviews, financial highlights, capital structure, risk management, and future outlook [Business Review](index=23&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group's business review indicates catering services achieved revenue and profit growth despite adverse economic conditions, financial business saw slight revenue growth but expanded segment loss, and property holding revenue remained stable with a significantly narrowed segment loss [Provision of Catering Services](index=23&type=section&id=%E6%8F%90%E4%BE%9B%E9%A4%90%E9%A3%B2%E6%9C%8D%E5%8B%99) The catering services segment achieved revenue and profit growth, benefiting from increased sales and reduced logistics costs - Catering services business revenue was approximately **HKD 213.8 million**, an increase of approximately **4.9%** year-on-year[45](index=45&type=chunk) - Segment profit was approximately **HKD 5.4 million**, primarily due to increased revenue and reduced warehousing and logistics costs[45](index=45&type=chunk) [Provision of Financial Business](index=23&type=section&id=%E6%8F%90%E4%BE%9B%E9%87%91%E8%9E%8D%E6%A5%AD%E5%8B%99) The financial business segment experienced revenue growth but a significant increase in segment loss, driven by expanded operations and higher costs - Total financial business revenue was approximately **HKD 49.5 million**, an increase of approximately **3.9%** year-on-year[46](index=46&type=chunk) - Segment loss was approximately **HKD 24.1 million**, a significant increase from approximately **HKD 10.5 million** in the prior year[46](index=46&type=chunk) - The securities investment portfolio was approximately **HKD 209.2 million**, mainly comprising unlisted investment funds, with fair value change gains of **HKD 20.091 million** recorded during the period[48](index=48&type=chunk) - Turnover from securities brokerage, margin financing, asset management, and professional services businesses decreased, primarily due to weak demand for fund management and establishment services[50](index=50&type=chunk) - Turnover from money lending and credit card businesses was approximately **HKD 7.1 million**, mainly due to increased credit card processing fees, but recorded a loss of approximately **HKD 30.3 million**, primarily due to increased staff costs[53](index=53&type=chunk) - Successfully launched insurance and wealth management businesses, recording turnover of approximately **HKD 3.6 million**, but incurred a loss of approximately **HKD 0.8 million** due to staff costs[54](index=54&type=chunk)[55](index=55&type=chunk) - As of June 30, 2025, the total investment value of net assets of segregated funds was **HKD 1,271.6 million**[55](index=55&type=chunk) [Property Holding](index=27&type=section&id=%E7%89%A9%E6%A5%AD%E6%8C%81%E6%9C%89) The property holding segment maintained stable revenue, with a substantial reduction in segment loss due to decreased fair value losses on investment properties - Property holding business revenue was approximately **HKD 0.6 million**, consistent with the prior year[57](index=57&type=chunk) - Segment loss was approximately **HKD 2.6 million**, a significant reduction from approximately **HKD 17.9 million** in the prior year[58](index=58&type=chunk) - Fair value loss on investment properties was approximately **HKD 2.4 million**, a decrease from HKD 8.4 million in the prior year; no impairment loss on properties under development was recorded during the period[59](index=59&type=chunk) [Financial Review](index=28&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group's revenue grew by 4.7% during the reporting period, with improved gross profit and margin, but administrative expenses significantly increased. Other expenses substantially decreased due to reduced fair value losses on investment properties, and while liquidity remained robust, the gearing ratio rose sharply due to financial business expansion [Revenue](index=28&type=section&id=%E6%94%B6%E7%9B%8A) Total revenue for the period increased by 4.7% year-on-year, driven by growth in catering and new financial services - Total revenue was approximately **HKD 263.9 million**, an increase of approximately **4.7%** year-on-year[60](index=60&type=chunk) [Gross Profit and Gross Profit Margin](index=28&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) Gross profit increased by 7.1% and gross profit margin improved by 0.6 percentage points, primarily due to higher financial business margins - Gross profit was approximately **HKD 69.1 million**, an increase of approximately **7.1%** year-on-year[61](index=61&type=chunk) - Gross profit margin was approximately **26.2%**, an increase of approximately **0.6 percentage points** year-on-year, primarily due to an increase in financial business gross profit margin[61](index=61&type=chunk) Gross Profit by Business (HKD thousand) | Business | 1H 2025 Gross Profit | 1H 2024 Gross Profit | | :--- | :--- | :--- | | Catering Services | 25.2 | 24.5 | | Financial Business | 43.3 | 39.4 | | Property Holding | 0.6 | 0.6 | [Other Income and Gains](index=29&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) Other income and gains decreased by 32.6%, mainly due to lower bank interest income and unrecognised foreign exchange gains - Other income and gains were approximately **HKD 3.7 million**, a decrease of **32.6%** year-on-year[63](index=63&type=chunk) - The decrease was primarily due to lower interest income from bank deposits and unrecognised net foreign exchange gains[63](index=63&type=chunk) [Selling and Distribution Expenses](index=29&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E5%88%86%E9%8A%B7%E8%B2%BB%E7%94%A8) Selling and distribution expenses decreased by 15.0%, primarily due to reduced advertising costs in financial professional services - Selling and distribution expenses were approximately **HKD 18.4 million**, a decrease of approximately **15.0%** year-on-year[64](index=64&type=chunk) - The decrease was primarily due to reduced advertising expenses incurred by the financial professional services business[64](index=64&type=chunk) [Administrative Expenses](index=29&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) Administrative expenses increased by 26.2%, mainly attributable to higher staff costs and professional fees - Administrative expenses were approximately **HKD 77.7 million**, an increase of approximately **26.2%** year-on-year[65](index=65&type=chunk) - The increase was primarily due to higher staff costs and professional fees[65](index=65&type=chunk) [Other Expenses](index=30&type=section&id=%E5%85%B6%E4%BB%96%E9%96%8B%E6%94%AF) Other expenses significantly decreased by 81.5%, primarily due to reduced investment property fair value losses and no impairment on properties under development - Other expenses were approximately **HKD 3.3 million**, a decrease of **81.5%** year-on-year[66](index=66&type=chunk) - The decrease was primarily due to no impairment loss on properties under development and reduced fair value loss on investment properties during the period[66](index=66&type=chunk) [Finance Costs](index=30&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) Finance costs slightly decreased year-on-year, predominantly consisting of finance costs on lease liabilities - Finance costs were approximately **HKD 0.3 million**, a slight decrease from approximately **HKD 0.4 million** in the prior year[67](index=67&type=chunk) [Disposal of a Subsidiary](index=30&type=section&id=%E5%87%BA%E5%94%AE%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8) The company disposed of a subsidiary in November 2024, resulting in a net gain of approximately HKD 1.9 million - On November 20, 2024, the company disposed of its entire interest in Apex Magic International Limited for **HKD 27 million**, recognising a net gain of approximately **HKD 1.9 million**[68](index=68&type=chunk) [Material Investments Held, Material Acquisitions or Disposals of Subsidiaries and Affiliated Companies, and Plans for Material Investments or Capital Assets](index=31&type=section&id=%E6%8C%81%E6%9C%89%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E3%80%81%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E6%88%96%E5%87%BA%E5%94%AE%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E5%8F%8A%E8%81%AF%E5%B1%AC%E5%85%AC%E5%8F%B8%EF%BC%8C%E4%BB%A5%E5%8F%8A%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E6%88%96%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E7%9A%84%E8%A8%88%E5%8A%83) The Group had no material acquisitions, disposals of subsidiaries, or plans for significant investments or capital assets during the reporting period, other than disclosed items - Other than disclosed matters, the Group had no material acquisitions, disposals of subsidiaries and affiliated companies, or future plans for material investments or capital assets during the reporting period[69](index=69&type=chunk) [Net Loss and Net Loss Margin](index=31&type=section&id=%E6%B7%A8%E虧%E6%90%8D%E5%8F%8A%E6%B7%A8%E虧%E6%90%8D%E7%8E%87) Loss attributable to equity holders slightly increased, while the net loss margin showed a marginal improvement - Loss attributable to equity holders of the company was approximately **HKD 29.9 million**, a slight increase from approximately **HKD 29.5 million** in the prior year[70](index=70&type=chunk) - Net loss margin was approximately **11.3%**, a slight improvement from **11.7%** in the prior year[70](index=70&type=chunk) [Capital Expenditure](index=31&type=section&id=%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF) Capital expenditure significantly decreased, primarily allocated to office renovation and equipment acquisition - Capital expenditure was approximately **HKD 15,000**, mainly for office renovation and acquisition of office equipment, a significant decrease from approximately **HKD 0.1 million** in the prior year[71](index=71&type=chunk) [Financial Resources and Liquidity](index=31&type=section&id=%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90%E5%8F%8A%E6%B5%81%E5%8B%95%E6%80%A7) The Group maintained robust liquidity with a current ratio of 1.2, despite a decrease in cash and bank balances - Cash and bank balances were approximately **HKD 267.3 million** (December 31, 2024: HKD 389.4 million)[72](index=72&type=chunk) - The current ratio was **1.2** (December 31, 2024: 1.9), indicating robust liquidity[72](index=72&type=chunk) - Cash is primarily used for financial business operations, catering business development, and exploring potential acquisition and investment opportunities[72](index=72&type=chunk) [Fund Raising Activities of the Group](index=32&type=section&id=%E6%9C%AC%E9%9B%86%E5%9C%98%E4%B9%8B%E9%9B%86%E8%B3%87%E6%B4%BB%E5%8B%95) No equity securities were issued for cash during the reporting period - No equity securities were issued for cash during the reporting period[73](index=73&type=chunk) [Loans and Interest Receivables](index=32&type=section&id=%E6%87%89%E6%94%B6%E8%B2%B8%E6%AC%BE%E5%8F%8A%E5%88%A9%E6%81%AF) Loans and interest receivables amounted to HKD 3.9 million, including new loans and impairment loss reversals, with an average annual interest rate of 8.9 percent - Loans and interest receivables were approximately **HKD 3.9 million** (December 31, 2024: nil)[74](index=74&type=chunk) - Loans of approximately **HKD 3.7 million** were provided during the period, with an average annual interest rate of approximately **8.9 percent p.a.**[74](index=74&type=chunk) - Reversal of impairment loss on loans and interest receivables of approximately **HKD 0.5 million** was recognised[74](index=74&type=chunk) [Trade Receivables](index=32&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) Trade receivables decreased to HKD 61.0 million, mainly due to a reduction in receivables from securities and futures trading services - Trade receivables were approximately **HKD 61.0 million** (December 31, 2024: HKD 70.0 million)[76](index=76&type=chunk) - This includes approximately **HKD 1.2 million** from securities and futures trading services and approximately **HKD 59.8 million** from other businesses[76](index=76&type=chunk) [Trade Payables](index=33&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) Trade payables significantly increased to HKD 506.6 million, driven by higher payables from securities and futures trading and custody services - Trade payables were approximately **HKD 506.6 million** (December 31, 2024: HKD 335.5 million)[77](index=77&type=chunk) - This primarily includes approximately **HKD 420.6 million** from securities and futures trading services and approximately **HKD 82.4 million** from custody services[77](index=77&type=chunk) [Inventories](index=33&type=section&id=%E5%AD%98%E8%B2%A8) Inventories increased by approximately 38.5% compared to the end of 2024 - Inventories were approximately **HKD 52.0 million**, an increase of approximately **38.5%** compared to December 31, 2024[78](index=78&type=chunk) [Gearing Ratio](index=33&type=section&id=%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) The gearing ratio significantly increased to 72.5% from 35.8% at the end of 2024 - The gearing ratio (total liabilities/total assets) was approximately **72.5%** (December 31, 2024: 35.8%)[79](index=79&type=chunk) [Pledge of Assets](index=33&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) The Group did not pledge any assets for borrowings during the reporting period - The Group did not pledge any assets for borrowings[80](index=80&type=chunk) [Capital Structure](index=34&type=section&id=%E8%B3%87%E6%9C%AC%E6%9E%B6%E6%A7%8B) The Group's capital management objective is to ensure going concern, maintain a healthy capital ratio, and optimize capital structure through an appropriate mix of equity and debt to reduce funding costs - Capital management objectives are to ensure going concern, maintain a healthy capital ratio, and ensure an efficient capital structure through a combination of equity and debt[81](index=81&type=chunk) [Foreign Exchange Risk](index=34&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) The Group's operations are primarily denominated in HKD and USD, and due to the HKD-USD peg, foreign currency risk is considered minimal, with the Group closely monitoring exchange rate movements - Business operations are primarily denominated in HKD and USD, with foreign currency risk considered minimal due to the HKD-USD peg[82](index=82&type=chunk) - The Group has not entered into any agreements or purchased instruments to hedge foreign exchange risk but closely monitors exchange rate movements[82](index=82&type=chunk)[83](index=83&type=chunk) [Contingent Liabilities](index=34&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, and December 31, 2024, the Group had no significant contingent liabilities - The Group had no significant contingent liabilities at the end of the reporting period or at the end of 2024[84](index=84&type=chunk) [Future Outlook](index=35&type=section&id=%E6%9C%AA%E4%BE%86%E5%B1%95%E6%9C%9B) The Group will continue to create value through a diversified business portfolio, anticipating a challenging Hong Kong business environment and structural transformation in the catering industry. The Group remains confident in Hong Kong's financial hub status, plans to expand its financial services portfolio, and will maintain a cautious approach to securities investments - Global economic uncertainty and escalating geopolitical tensions are expected to keep Hong Kong's business environment challenging[85](index=85&type=chunk) - The catering services industry faces structural transformation, and the Group will focus on consolidating its market position and building diversified supplier relationships[85](index=85&type=chunk) - The Group is confident in Hong Kong's strategic position as a global hub for offshore RMB business and a regional green technology and financial center, planning to expand its financial services portfolio across Hong Kong and Asia[86](index=86&type=chunk) - Given the highly volatile investment environment, the Group will continue to adopt a cautious approach to investing in securities and other financial products[87](index=87&type=chunk) [Employees and Remuneration](index=36&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC) As of June 30, 2025, the Group's employee count increased to 168. Remuneration policy is based on individual performance, professional qualifications, industry experience, and market trends, with MPF and share option schemes to incentivise staff - As of June 30, 2025, the Group employed **168 employees** (December 31, 2024: 164 employees)[88](index=88&type=chunk) - Remuneration is determined based on individual performance, professional qualifications, industry experience, and market trends, with year-end bonuses provided[88](index=88&type=chunk) - A Mandatory Provident Fund Scheme and a share option scheme are in place to incentivise employees[88](index=88&type=chunk)[89](index=89&type=chunk) [Dividends](index=37&type=section&id=%E8%82%A1%E6%81%AF) The Board resolved not to declare any interim dividend for the six months ended June 30, 2025 - The Board resolved not to declare any interim dividend for the six months ended June 30, 2025[90](index=90&type=chunk) [Purchase, Redemption or Sale of the Company's Listed Securities](index=37&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E8%B4%96%E5%9B%9E%E6%88%96%E5%87%BA%E5%94%AE%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) During the reporting period, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities - During the reporting period, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities[91](index=91&type=chunk) [Audit Committee](index=37&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Company's Audit Committee has reviewed the unaudited condensed consolidated results for the six months ended June 30, 2025, and discussed accounting principles and financial reporting matters - The Audit Committee has reviewed the Company's unaudited condensed consolidated results for the six months ended June 30, 2025[92](index=92&type=chunk) [Corporate Governance](index=38&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The Company generally complied with the Corporate Governance Code during the reporting period, with deviations including the Chairman's absence from the AGM and the Chairman and CEO roles not being separated; the Board will nominate a suitable Chairman as soon as practicable - The Company complied with the Corporate Governance Code in Appendix C1 of the Listing Rules during the reporting period, except for Code Provisions F.2.2 and C.2.1[93](index=93&type=chunk) - Deviations include the Chairman of the Board not attending the Annual General Meeting, and the roles of Chairman and Chief Executive Officer not being separated[93](index=93&type=chunk)[94](index=94&type=chunk) - The Board will nominate a suitable candidate to serve as Chairman of the Board as soon as practicable[94](index=94&type=chunk) - All Directors confirmed compliance with the Model Code for Securities Transactions by Directors throughout the reporting period[95](index=95&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors](index=38&type=section&id=%E9%81%B5%E5%AE%88%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%88%99) All Directors confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers throughout the reporting period - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all Directors confirmed compliance throughout the reporting period[95](index=95&type=chunk) [Events After the Reporting Period](index=39&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E4%BB%B6) As of the announcement date, no significant events after June 30, 2025, have materially impacted the Group's operations and financial performance - As of the announcement date, no significant events after the reporting period have materially impacted the Group's operations and financial performance[96](index=96&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=39&type=section&id=%E5%88%8A%E7%99%BB%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A%E5%8F%8A%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) This interim results announcement has been published on the Company's and HKEX websites, and the interim report will be dispatched to shareholders and available on the websites in due course - The interim results announcement has been published on the Company's website (www.pfh.hk) and the HKEX website (www.hkexnews.hk)[97](index=97&type=chunk) - The interim report will be dispatched to shareholders and made available on the aforementioned websites in due course[97](index=97&type=chunk)

[Company Information and Interim Dividend](index=1&type=section&id=公司信息与中期股息) This section covers the interim results announcement, interim dividend declaration, and suspension of share transfer registration [Interim Results Announcement](index=1&type=section&id=1.1%20中期业绩公告) Lifung (Group) Limited announced its unaudited condensed consolidated interim results for the six months ended June 30, 2025, prepared under HKAS 34 and reviewed by the Audit Committee - This announcement presents Lifung (Group) Limited's unaudited condensed consolidated interim results for the six months ended June 30, 2025[2](index=2&type=chunk) [Interim Dividend](index=1&type=section&id=1.2%20中期股息) The Board resolved to declare an interim dividend of HKD 3 cents per share, consistent with the prior year, payable on or around October 2, 2025, after the record date of September 17, 2025 Interim Dividend Declaration | Indicator | H1 2025 | | :--- | :--- | | Dividend per share | 3 HK cents | | Record Date | September 17, 2025 | | Payment Date | On or around October 2, 2025 | - The interim dividend for the first half of 2025 is **HKD 3 cents per share**, consistent with 2024[3](index=3&type=chunk) [Suspension of Share Transfer Registration](index=4&type=section&id=1.3%20暂停办理股份过户登记手续) To ensure shareholders' eligibility for the interim dividend, the company will suspend share transfer registration from September 16 to September 17, 2025, requiring transfer documents by 4:30 PM on September 15 - Share transfer registration will be suspended from **September 16 to September 17, 2025**, to determine eligibility for the interim dividend[14](index=14&type=chunk) [Financial Performance Highlights](index=2&type=section&id=财务业绩亮点) This section details the company's revenue, gross profit, other income, operating expenses, finance costs, associate losses, tax expenses, and profit attributable to owners [Revenue and Gross Profit](index=2&type=section&id=2.1%20收入与毛利) In H1 2025, group revenue decreased by 7.2% to HKD 236,882,000, but gross profit increased by 8.9% to HKD 73,263,000, with gross margin significantly improving to 30.9% due to a new commission-based revenue model Revenue and Gross Profit Overview | Indicator | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 236,882 | 255,249 | -7.2% | | Gross Profit | 73,263 | 67,246 | +8.9% | | Gross Margin | 30.9% | 26.3% | +4.6pp | - The decline in revenue but increase in gross margin is primarily due to some new businesses transitioning to a **commission-based revenue model**, where only net income is recognized as revenue[5](index=5&type=chunk) [Other Income and Gains, Net](index=2&type=section&id=2.2%20其他收入及收益净额) Total other income and gains, net, for H1 2025 was a loss of HKD 6,000, a significant decrease from H1 2024's gain of HKD 8,948,000, mainly due to fair value losses on financial assets at FVTPL, despite increased rental and supplier incentive income Other Income and Gains, Net | Indicator | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | | :--- | :--- | | Total other income and gains, net | (6) | 8,948 | | Fair value changes of financial assets | (2,815) (loss) | 6,507 (gain) | | Rental income | 1,975 | 1,809 | | Supplier incentive income | 689 | 486 | [Operating Expenses](index=3&type=section&id=2.3%20经营开支) In H1 2025, selling and distribution expenses increased by 30.4% due to higher supply chain costs, while administrative expenses decreased by 18.7% due to recognized exchange gains Changes in Operating Expenses | Indicator | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Selling and distribution expenses | 12,232 | 9,383 | +30.4% | | Administrative expenses | 40,291 | 49,570 | -18.7% | - Selling and distribution expenses increased primarily due to **higher supply chain costs**[8](index=8&type=chunk) - Administrative expenses decreased mainly due to the **recognition of exchange gains in 2025**[8](index=8&type=chunk) [Net Finance Costs](index=3&type=section&id=2.4%20融資成本淨額) Net finance costs for H1 2025 significantly decreased by 50.8% to HKD 2,356,000, attributed to lower-cost loan financing and reduced HIBOR, while the net debt-to-equity ratio rose from 21.7% (end 2024) to 25.7% (end June 2025) Net Finance Costs and Net Debt-to-Equity Ratio | Indicator | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Net finance costs | 2,356 | 4,790 | -50.8% | | Finance income | 668 | 808 | -17.3% | | Finance costs | 3,024 | 5,598 | -46.0% | | Net debt-to-equity ratio (period-end) | 25.7% | 21.7% (Dec 2024) | +4.0pp | - The reduction in finance costs is primarily due to **lower-cost loan financing** and a **lower Hong Kong Interbank Offered Rate (HIBOR)**[9](index=9&type=chunk) [Share of Loss of Associates after Tax](index=3&type=section&id=2.5%20分佔聯營公司除稅後虧損) Share of loss of associates after tax for H1 2025 was HKD 5,254,000, a slight narrowing from HKD 5,511,000 in the prior year, but OPS-Ingersoll Funkenerosion GmbH and Prima Power Sheet Metal Equipment (Suzhou) Co., Ltd. continued to record losses Share of Loss of Associates after Tax | Indicator | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | | :--- | :--- | :--- | | Share of loss of associates after tax | 5,254 | 5,511 | - Both **OPS-Ingersoll Funkenerosion GmbH** and **Prima Power Sheet Metal Equipment (Suzhou) Co., Ltd.** recorded losses[10](index=10&type=chunk) [Income Tax Expense](index=4&type=section&id=2.6%20所得稅開支) Income tax expense for H1 2025 was HKD 3,113,000, compared to HKD 401,000 in the prior year, mainly due to the need to make provision for Hong Kong profits tax this period, unlike previous periods where available tax losses offset taxable profits Income Tax Expense | Indicator | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | | :--- | :--- | :--- | | Income tax expense | 3,113 | 401 | - In H1 2025, a provision for **Hong Kong profits tax** was required, whereas in prior periods, no provision was needed due to available tax losses offsetting taxable profits[11](index=11&type=chunk) [Profit Attributable to Owners of the Company and Earnings Per Share](index=4&type=section&id=2.7%20本公司擁有人應佔溢利及每股盈利) Profit attributable to owners of the company for H1 2025 increased by 18.9% year-on-year to HKD 10,023,000, with basic earnings per share rising by 19.1% to HKD 4.36 cents, and operating profit from trading business also growing by 8.4% Profit Attributable to Owners of the Company and Earnings Per Share | Indicator | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Profit attributable to owners of the company | 10,023 | 8,430 | +18.9% | | Operating profit from trading business | 20,745 | 19,130 | +8.4% | | Basic earnings per share | 4.36 HK cents | 3.66 HK cents | +19.1% | [Condensed Consolidated Financial Statements](index=5&type=section&id=简明综合财务报表) This section presents the condensed consolidated statement of profit or loss and other comprehensive income, and the condensed consolidated statement of financial position [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=5&type=section&id=3.1%20简明综合损益及其他全面收益表) For the six months ended June 30, 2025, the company recorded a profit for the period of HKD 10,022,000, an increase from the prior year. Other comprehensive income shifted from a loss to a gain, primarily due to exchange differences on translation of foreign operations, significantly boosting total comprehensive income for the period Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 236,882 | 255,249 | | Gross Profit | 73,263 | 67,246 | | Operating Profit | 20,745 | 19,130 | | Profit before tax | 13,135 | 8,829 | | Profit for the period | 10,022 | 8,428 | | Exchange differences on translation of foreign operations | 4,273 | (5,192) | | Total comprehensive income for the period | 14,540 | 3,872 | [Condensed Consolidated Statement of Financial Position](index=7&type=section&id=3.2%20简明综合财务状况表) As of June 30, 2025, total non-current assets decreased, mainly due to a significant reduction in financial assets at fair value through profit or loss. Total current assets significantly increased, driven by new current financial assets at FVTPL, and growth in trade receivables and inventories. Total current liabilities also rose, leading to increases in both net current assets and total equity Summary of Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Total non-current assets | 330,170 | 400,969 | | Total current assets | 456,988 | 336,349 | | Total current liabilities | 304,289 | 263,452 | | Net current assets | 152,699 | 72,897 | | Total equity | 452,686 | 445,048 | - The decrease in total non-current assets is primarily due to **financial assets at fair value through profit or loss** decreasing from HKD 76,718 thousand to HKD 6,903 thousand[17](index=17&type=chunk) - The increase in total current assets is mainly due to **new current financial assets at fair value through profit or loss of HKD 67,000 thousand**, as well as growth in trade receivables and inventories[17](index=17&type=chunk) [Notes to the Condensed Consolidated Financial Information](index=9&type=section&id=简明综合财务资料附注) This section provides detailed notes on the basis of preparation, accounting policy changes, operating segment information, revenue breakdown, profit before tax details, income tax expense, dividends, earnings per share, trade and other receivables, trade and other payables, and borrowings [Basis of Preparation and Changes in Accounting Policies](index=9&type=section&id=4.1%20编制基準及会计政策变动) The interim condensed consolidated financial information is prepared in accordance with HKAS 34 and the Listing Rules, using consistent accounting policies as the annual consolidated financial statements for the year ended December 31, 2024, except for the first-time adoption of amended HKAS 21 "Lack of Exchangeability," which had no impact on the Group - The financial information is prepared in accordance with **Hong Kong Accounting Standard 34** and the **Listing Rules**[19](index=19&type=chunk) - The first-time adoption of amended **Hong Kong Accounting Standard 21 "Lack of Exchangeability"** had no impact on the Group's interim condensed consolidated financial information[20](index=20&type=chunk)[21](index=21&type=chunk) [Operating Segment Information](index=10&type=section&id=4.2%20经营分类资料) Management assesses business performance by geographical region (Mainland China, Hong Kong, and other countries), primarily engaging in the trading of metal processing machinery, measuring instruments, cutting tools, and electronic equipment. In H1 2025, Mainland China contributed the vast majority of external customer sales and segment results - Operating segments are geographically divided into **Mainland China, Hong Kong, and other countries**, primarily engaged in the trading of metal processing machinery, measuring instruments, cutting tools, and electronic equipment[22](index=22&type=chunk) H1 2025 Operating Segment Data by Region | Indicator | Mainland China (HKD thousands) | Hong Kong (HKD thousands) | Other Countries (HKD thousands) | Total (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | | Sales to external customers | 227,584 | 1,661 | 7,637 | 236,882 | | Segment results | 19,278 | 843 | 624 | 20,745 | | Segment assets | 463,855 | 268,208 | 55,095 | 787,158 | | Capital expenditure | 54 | – | – | 54 | [Disaggregation of Revenue](index=13&type=section&id=4.3%20收入分拆) Revenue primarily derives from sales of goods, commission income, and service income. In H1 2025, commission income significantly grew by 107.6% to HKD 59,527,000, becoming a new revenue model, while sales of goods revenue decreased. Approximately 25% of revenue came from a single major customer Disaggregation of Revenue | Type of Goods or Services | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Sales of goods | 167,976 | 215,160 | -21.9% | | Commission income | 59,527 | 28,677 | +107.6% | | Service income | 9,379 | 11,412 | -17.8% | | Total | 236,882 | 255,249 | -7.2% | - **Commission income significantly increased**, representing a new revenue model since H2 2023, involving technical support and agency services for business partners[30](index=30&type=chunk) - Approximately **25% of revenue (HKD 59,551 thousand)** was derived from a single major customer[30](index=30&type=chunk) [Details of Profit Before Tax](index=14&type=section&id=4.4%20除税前溢利详情) Profit before tax is influenced by various factors, including cost of inventories sold, depreciation, employee benefit expenses, net exchange gains, short-term leases, provision for obsolete inventories, and professional service fees. Notably, H1 2025 recorded a net exchange gain of HKD 4,495,000, compared to a loss in the prior year Items Deducted From/(Credited To) Profit Before Tax | Item | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | | :--- | :--- | :--- | | Cost of inventories sold | 160,315 | 185,299 | | Depreciation of plant and equipment | 1,072 | 1,070 | | Depreciation of right-of-use assets | 2,272 | 2,760 | | Employee benefit expenses | 29,731 | 28,689 | | Exchange (gains)/losses, net | (4,495) (gain) | 5,829 (loss) | | Provision for obsolete inventories | 2,152 | 944 | [Details of Income Tax Expense](index=14&type=section&id=4.5%20所得税开支详情) Total income tax expense for H1 2025 was HKD 3,113,000, entirely from Hong Kong profits tax, whereas the prior year's expense mainly originated from Mainland China and other countries. Hong Kong profits tax is provided at a rate of 16.5%, differing from past periods where tax losses offset taxable profits Composition of Income Tax Expense | Category | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | | :--- | :--- | :--- | | Hong Kong profits tax | 3,113 | – | | Mainland China and other countries | – | 401 | | Total tax expense for the period | 3,113 | 401 | - **Hong Kong profits tax is provided at a rate of 16.5%**, differing from prior periods where available tax losses offset taxable profits, requiring no provision[32](index=32&type=chunk) [Dividends](index=15&type=section&id=4.6%20股息) As of June 30, 2025, a final dividend of HKD 6,902,000 for 2024 was payable. The Board declared an interim dividend of HKD 3 cents per share for the six months ended June 30, 2025, which was declared after the reporting period and thus not recognized as a liability in the condensed consolidated statement of financial position Dividend Information | Dividend Type | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Final dividend payable | 6,902 (for 2024) | 8,053 (for 2023) | | Interim dividend (per share) | 3 HK cents (H1 2025) | 3 HK cents (H1 2024) | - The **interim dividend for H1 2025 was declared after the reporting period** and therefore not recognized as a liability in the statement of financial position[34](index=34&type=chunk) [Earnings Per Share Attributable to Owners of the Company](index=15&type=section&id=4.7%20本公司股东应佔每股盈利) Basic earnings per share for H1 2025 was HKD 4.36 cents, calculated based on profit attributable to owners of HKD 10,023,000 and 230,076,000 ordinary shares in issue. The company had no dilutive share options Basic Earnings Per Share Calculation | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit attributable to owners of the company (HKD thousands) | 10,023 | 8,430 | | Weighted average number of ordinary shares in issue (thousand shares) | 230,076 | 230,076 | | Basic earnings per share (HK cents) | 4.36 | 3.66 | - The company had **no outstanding or unexercised share options** during the reporting period, thus no dilutive effect[36](index=36&type=chunk) [Trade and Other Receivables](index=17&type=section&id=4.8%20应收账款及应收票据) As of June 30, 2025, total trade and other receivables were HKD 242,139,000, an increase from December 31, 2024. The aging analysis shows a significant increase in receivables aged 7 to 12 months, while those aged 4 to 6 months substantially decreased. The company typically grants customers a 30-day credit period Aging Analysis of Trade and Other Receivables (by invoice date) | Aging | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Within 3 months | 144,707 | 145,397 | | 4 to 6 months | 3,189 | 31,902 | | 7 to 12 months | 83,430 | 1,795 | | Over 12 months | 13,232 | 29,638 | | Total (net of impairment) | 242,139 | 206,372 | - The company generally grants customers a **30-day credit period**, with longer terms potentially extended to customers with good repayment records and long-term business relationships[37](index=37&type=chunk) [Trade and Other Payables](index=18&type=section&id=4.9%20应付账款及应付票据) As of June 30, 2025, total trade and other payables were HKD 58,341,000, a decrease from December 31, 2024. The aging analysis indicates that payables within 3 months constitute the largest portion but have decreased Aging Analysis of Trade and Other Payables (by invoice date) | Aging | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Within 3 months | 48,144 | 65,652 | | 4 to 6 months | 2,489 | 6,113 | | 7 to 12 months | 5,524 | 1,237 | | Over 12 months | 2,184 | 3,676 | | Total | 58,341 | 76,678 | [Borrowings](index=18&type=section&id=4.10%20借贷) As of June 30, 2025, total short-term borrowings were HKD 141,938,000, an increase from December 31, 2024, primarily to meet trade working capital needs. Bank borrowings are secured by certain land and buildings, investment properties, and financial assets at fair value through profit or loss Composition of Borrowings | Borrowing Type | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Trust receipt loans | 83,575 | 75,963 | | Bank term loans due within one year | 58,363 | 52,108 | | Total borrowings | 141,938 | 128,071 | - The increase in borrowings aims to **meet trade working capital requirements**[46](index=46&type=chunk) - Bank borrowings are secured by certain **land and buildings, investment properties, and a financial asset at fair value through profit or loss** of the Group[39](index=39&type=chunk) [Management Discussion and Analysis](index=21&type=section&id=管理层讨论与分析) This section provides a business review, discusses liquidity and financial resources, and outlines future plans and prospects [Business Review](index=21&type=section&id=5.1%20业务回顾) In H1 2025, China's economy remained resilient despite challenges, with GDP and exports growing, and domestic consumption playing a key role. The Group's trading business performed well, particularly the machine tools division, benefiting from strong demand from new energy vehicle and mobile phone manufacturers, leading to a 130.4% increase in total order intake. However, investment business was affected by a weak European economy and associate losses - China's economy remained resilient in H1 2025, with **GDP growing by 5.5%**, **exports by 7.2%**, and **domestic consumption contributing 68.8%** of GDP growth[42](index=42&type=chunk) H1 2025 Total Order Intake | Indicator | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Total order intake | 1,106,143 | 480,038 | +130.4% | [Trading Business](index=21&type=section&id=5.1.1%20贸易业务) China's manufacturing investment grew, with rapid increases in "new three" products like NEVs, lithium batteries, and photovoltaic products. The Group's machine tools division performed well, driven by strong demand from NEV and mobile phone manufacturers. Cutting tools sales declined, but the electronic equipment division performed well, with service income becoming a key profit driver - China's manufacturing investment grew by **7.5%**, with high-tech industries growing by **9.5%**[43](index=43&type=chunk) China's "New Three" and Auto Production/Sales Growth | Product | Production Growth | | :--- | :--- | | Electric vehicles | +30.0% | | Lithium batteries | +53.3% | | Photovoltaic products | +17.8% | | China auto sales | +11.4% (15,653,000 units) | | New energy vehicle sales | +40.3% (6,937,000 units) | - The machine tools division performed well, supported by strong demand from **new energy vehicle and mobile phone manufacturers**, with service income becoming a **key profit driver**[43](index=43&type=chunk) [Investment Business](index=22&type=section&id=5.1.2%20投资业务) The weak European economy, especially in Germany, negatively impacted associate OPS Ingersoll Funkenerosion GmbH. Prima Power Sheet Metal Equipment (Suzhou) Co., Ltd. also faced intense competition in China. Both associates continued to record losses - The weak European economy, particularly in **Germany**, negatively impacted associate **OPS Ingersoll Funkenerosion GmbH**[44](index=44&type=chunk) - **Prima Power Sheet Metal Equipment (Suzhou) Co., Ltd.** faced intense competition from local manufacturers in China[44](index=44&type=chunk) - Both associates, **OPS Ingersoll Funkenerosion GmbH** and **Prima Power Sheet Metal Equipment (Suzhou) Co., Ltd.**, continued to record losses[44](index=44&type=chunk) [Liquidity and Financial Resources](index=22&type=section&id=5.2%20流动资金及财务资源) As of June 30, 2025, cash and cash equivalents slightly decreased, while inventories and trade receivables increased, leading to longer inventory and trade receivables turnover days. Short-term borrowings rose to meet working capital needs, and the net debt-to-equity ratio increased to 25.7%. The Group has ample bank financing facilities, secured by assets Key Liquidity and Financial Resources Indicators | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | 25,487 | 26,048 | | Inventories | 77,901 | 69,993 | | Trade and other receivables | 242,139 | 206,372 | | Trade and other payables | 58,341 | 76,678 | | Short-term borrowings | 141,938 | 128,071 | Turnover Days and Net Debt-to-Equity Ratio | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Inventory turnover days | 87 days | 61 days | | Trade receivables turnover days | 188 days | 125 days | | Net debt-to-equity ratio | 25.7% | 21.7% | - The Group has total bank facilities of approximately **HKD 226,755 thousand**, of which approximately **HKD 155,453 thousand was utilized**, secured by assets with a total carrying amount of approximately **HKD 92,453 thousand**[47](index=47&type=chunk)[51](index=51&type=chunk) [Future Plans and Prospects](index=23&type=section&id=5.3%20未来计划及前景) For the second half, the Chinese government will continue to support domestic consumption and high-tech industries. The Group will maintain key customer relationships, expand product offerings in NEV and smartphone manufacturing, and invest in a new CRM system. A joint venture with a European metal sheet processing equipment manufacturer will expand into China and Southeast Asia. Despite potential short-term impacts from long delivery times for imported machinery, the Group expects 2025 financial performance to surpass 2024 - The Chinese government will continue to support **domestic consumption (new energy vehicles, smart home appliances)** and **high-tech industries (smartphones, computers, printed circuit boards)**[48](index=48&type=chunk) - The Group will continue to **maintain key customer relationships**, **expand product ranges** in new energy vehicle and smartphone manufacturing, and **invest in a new customer relationship management system**[48](index=48&type=chunk)[49](index=49&type=chunk) - A **joint venture has been formed with a European metal sheet processing equipment manufacturer**, with business scope covering China and Southeast Asian markets[49](index=49&type=chunk) - While a large number of machine tool orders in H2 2025 may not be delivered by year-end, the Group believes its **2025 financial performance should be better than 2024**[49](index=49&type=chunk) [Other Information](index=24&type=section&id=其他信息) This section covers employee details, asset pledges, capital expenditure, contingent liabilities, exchange rate fluctuations, and share transactions [Employees](index=24&type=section&id=6.1%20雇员) As of June 30, 2025, the Group employed 225 staff, primarily in Mainland China and Hong Kong. The company offers competitive remuneration packages and benefits, including medical plans, education allowances, and discretionary performance bonuses Employee Count and Distribution | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total employees | 225 | 233 | | Hong Kong employees | 37 | N/A | | Mainland China employees | 176 | N/A | | Employees in other Asian offices | 12 | N/A | - The Group provides employees with a **competitive remuneration package** and benefits such as medical plans, education allowances, and discretionary performance bonuses[50](index=50&type=chunk) [Details of Pledged Assets](index=24&type=section&id=6.2%20资产抵押详情) As of June 30, 2025, certain land and buildings, investment properties, and a financial asset at fair value through profit or loss, with a total carrying amount of approximately HKD 92,453,000, were pledged by way of fixed charges to secure bank facilities Total Carrying Amount of Pledged Assets | Date | Total Carrying Amount of Pledged Assets (HKD thousands) | | :--- | :--- | | June 30, 2025 | 92,453 | | December 31, 2024 | 97,273 | - Pledged assets include **land and buildings in Hong Kong and Mainland China, investment properties, and a financial asset at fair value through profit or loss**, used to secure bank facilities[51](index=51&type=chunk) [Capital Expenditure and Contingent Liabilities](index=25&type=section&id=6.3%20资本开支及或然负债) Total capital expenditure for H1 2025 was HKD 54,000, mainly for plant and equipment. As of June 30, 2025, the Group had no capital commitments but had contingent liabilities totaling HKD 4,208,000 for customer guarantees Capital Expenditure and Contingent Liabilities | Indicator | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | | :--- | :--- | :--- | | Total capital expenditure | 54 | 111 | | Contingent liabilities (customer guarantees) | 4,208 | 3,811 (Dec 31, 2024) | - As of June 30, 2025, the Group had **no capital commitments**[52](index=52&type=chunk) [Exchange Rate Fluctuations and Related Hedging Risks](index=25&type=section&id=6.4%20汇率波动及相关对冲风险) The Group's revenue and purchases are largely denominated in foreign currencies, exposing it to exchange rate risk. The company mitigates this by using foreign currency income to settle payments to overseas suppliers and may enter into foreign currency forward contracts. As of June 30, 2025, the Group had no outstanding foreign currency forward contracts - The Group's majority of **revenue and purchases are denominated in foreign currencies**, exposing it to exchange rate risk[53](index=53&type=chunk) - The Group mitigates exchange rate risk by **utilizing foreign currency income to settle payments to overseas suppliers** and may enter into foreign currency forward contracts[53](index=53&type=chunk) - As of June 30, 2025, the Group had **no outstanding foreign currency forward contracts** for settlement[53](index=53&type=chunk) [Purchase, Sale or Redemption of Shares](index=25&type=section&id=6.5%20购买、出售或赎回股份) During the reporting period, neither the company nor any of its subsidiaries redeemed, purchased, or sold any of the company's shares, and as of June 30, 2025, the company held no treasury shares - During the reporting period, neither the company nor any of its subsidiaries **redeemed, purchased, or sold any of the company's shares**[55](index=55&type=chunk) - As of June 30, 2025, the company had **no treasury shares**[55](index=55&type=chunk) [Corporate Governance](index=26&type=section&id=企业管治) This section details the company's adherence to the Corporate Governance Code, Standard Code for Securities Transactions, and the Audit Committee's review [Corporate Governance Code](index=26&type=section&id=7.1%20企业管治守则) For the six months ended June 30, 2025, the company complied with the code provisions in Part 2 of Appendix C1 of the Listing Rules, though the Chairman and Group Chief Executive are the same person, which the Board believes ensures a balance of power and accountability, and will be continuously reviewed - The company has complied with the **code provisions in Part 2 of Appendix C1 of the Listing Rules** on Corporate Governance Code[56](index=56&type=chunk) - The **Chairman and Group Chief Executive are the same person**, but the Board believes the current operations ensure a balance of power and accountability, and will be continuously reviewed[56](index=56&type=chunk) [Standard Code for Securities Transactions](index=26&type=section&id=7.2%20证券交易之标准守则) The company has adopted the Standard Code for Securities Transactions by Directors as set out in Appendix C3 of the Listing Rules and confirms that all directors complied with it during the reporting period - The company has adopted the **Standard Code for Securities Transactions by Directors** as set out in Appendix C3 of the Listing Rules[57](index=57&type=chunk) - All directors confirmed compliance with the **Standard Code** during the reporting period[57](index=57&type=chunk) [Audit Committee](index=26&type=section&id=7.3%20审核委员会) The Audit Committee has reviewed the Group's accounting principles and practices with management, and discussed internal controls and financial reporting matters, including the unaudited condensed consolidated interim financial information for the six months ended June 30, 2025 - The Audit Committee has reviewed the Group's **accounting principles, internal controls, and financial reporting matters**[58](index=58&type=chunk) - The Audit Committee has reviewed the **unaudited condensed consolidated interim financial information** for the six months ended June 30, 2025[58](index=58&type=chunk) [Report Conclusion](index=27&type=section&id=报告结束) This section covers the interim report publication and the Board Chairman's signature [Interim Report Publication](index=27&type=section&id=8.1%20中期报告发布) The company's interim report for the six months ended June 30, 2025, will be published on the Stock Exchange and the company's website by the end of September 2025 and sent to shareholders upon request - The interim report will be published on the **Stock Exchange and the company's website by the end of September 2025**[59](index=59&type=chunk) [Board Chairman's Signature](index=27&type=section&id=8.2%20董事会主席签署) This interim results announcement was signed by Mr. Li Xiu Liang, Chairman of the Board, on behalf of the Board on August 28, 2025 - This announcement was signed by **Mr. Li Xiu Liang, Chairman of the Board**, on August 28, 2025[60](index=60&type=chunk)[61](index=61&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份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。 Shin Hwa World Limited 神話世界有限公司 （於開曼群島註冊成立及於百慕達存續之有限公司） （股份代號：00582） 截至二零二五年六月三十日止六個月 中期業績公告 神話世界有限公司（「本公司」）之董事（「董事」）會（「董事會」）謹此提呈本公司及其附 屬公司（統稱「本集團」）截至二零二五年六月三十日止六個月（「本期間」）之未經審核 中期業績，連同二零二四年同期之比較數字。本公司之審核委員會（「審核委員會」） 已與本公司管理層審閱及討論本集團本期間之未經審核中期財務資料。 – 1 – 簡明綜合損益表 截至二零二五年六月三十日止六個月 | | | 截至六月三十日止六個月 | | | --- | --- | --- | --- | | | | 二零二五年 | 二零二四年 | | | 附註 | 千港元 | 千港元 | | | | （未經審核） | （未經審核） | | 收益 | 4 | 410 ...

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份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。 瑞港建設控股有限公司 PROSPER CONSTRUCTION HOLDINGS LIMITED （於開曼群島註冊成立的有限公司） （股份代號：6816） 截至2025年6月30日止六個月之 中期業績公告 瑞港建設控股有限公司（「本公司」）董事（「董事」）會（「董事會」）呈列本公司及其 附屬公司（統稱「本集團」）截至2025年6月30日止六個月（「本期間」）的未經審核綜 合業績，連同2024年同期（「去年同期」）的比較數字。 中期簡明綜合全面收益表 截至2025年6月30日止六個月 | | | 未經審核 | | | --- | --- | --- | --- | | | | 截至6月30日止六個月 | | | | | 2025年 | 2024年 | | | 附註 | 千港元 | 千港元 | | 收益 | 5 | 894,705 | 508,954 | | 銷售成本 | | 841,319 | (473,5 ...