[Report Overview](index=1&type=section&id=Report%20Overview) [Company Information](index=1&type=section&id=Company%20Information) This report presents the unaudited interim results announcement of Truly International Holdings Limited (Stock Code: 00732) for the six months ended June 30, 2025 - Company Name: **Truly International Holdings Limited** (TRULY INTERNATIONAL HOLDINGS LIMITED)[2](index=2&type=chunk) - Stock Code: **00732**[2](index=2&type=chunk) - Report Type: **2025 Interim Results Announcement**[2](index=2&type=chunk) [Financial Summary](index=1&type=section&id=Financial%20Summary) For the six months ended June 30, 2025, the company's revenue decreased by 5.7% to HK$8.098 billion, gross profit decreased by 8.7% to HK$637 million, and profit attributable to owners of the company decreased by 19.2% to HK$140.7 million; basic earnings per share were 4.49 HK cents, and interim dividend remained 5 HK cents Financial Summary for the Six Months Ended June 30, 2025 | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 8,098,185 | 8,585,292 | -5.7% | | Gross Profit | 637,047 | 697,377 | -8.7% | | Profit for the Period Attributable to Owners of the Company | 140,686 | 174,151 | -19.2% | | EBITDA | 920,193 | 987,395 | -6.8% | | Basic Earnings Per Share (HK Cents) | 4.49 | 5.51 | -18.5% | | Interim Dividend Per Share (HK Cents) | 5 | 5 | 0% | [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's revenue was HK$8.098 billion, cost of sales was HK$7.461 billion, and gross profit was HK$637 million; profit for the period was HK$117.5 million, with HK$140.7 million attributable to owners of the company; exchange differences led to a shift from a loss in total comprehensive income in 2024 to a gain in 2025 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the Six Months Ended June 30) | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Revenue | 8,098,185 | 8,585,292 | | Cost of Sales | (7,461,138) | (7,887,915) | | Gross Profit | 637,047 | 697,377 | | Other Income | 59,526 | 80,632 | | Other Gains and Losses | (33,211) | (17,299) | | Administrative Expenses | (212,340) | (242,374) | | Distribution and Selling Expenses | (127,901) | (154,224) | | Finance Costs | (157,953) | (193,061) | | Profit Before Tax | 158,642 | 154,679 | | Income Tax Expense | (41,113) | (26,797) | | Profit for the Period | 117,529 | 127,882 | | Exchange Differences Arising from Translation of Overseas Operations | 314,800 | (277,532) | | Total Comprehensive Income for the Period | 432,329 | (149,650) | Profit and Total Comprehensive Income Attributable (For the Six Months Ended June 30) | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Profit for the Period Attributable to Owners of the Company | 140,686 | 174,151 | | Profit for the Period Attributable to Non-controlling Interests | (23,157) | (46,269) | | Total Comprehensive Income Attributable to Owners of the Company | 453,109 | (99,471) | | Total Comprehensive Income Attributable to Non-controlling Interests | (20,780) | (50,179) | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets less current liabilities were HK$10.122 billion, and total equity was HK$9.549 billion; non-current assets primarily comprised property, plant and equipment, while inventories and trade receivables were significant components of current assets; net current liabilities were HK$5.679 billion, a slight increase from the end of 2024 Condensed Consolidated Statement of Financial Position (As of June 30) | Metric | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 11,913,241 | 11,842,258 | | Right-of-use Assets | 599,781 | 570,210 | | Goodwill | 499,403 | 499,403 | | Interests in an Associate | 2,692,473 | 2,619,779 | | **Current Assets** | | | | Inventories | 2,775,040 | 2,667,757 | | Trade and Other Receivables | 3,364,238 | 3,721,412 | | Trade and Bills Receivables at Fair Value Through Other Comprehensive Income | 1,535,504 | 1,185,198 | | Cash and Cash Equivalents | 1,232,402 | 1,035,140 | | **Current Liabilities** | | | | Trade and Other Payables | 7,733,873 | 7,643,378 | | Bank and Other Borrowings | 6,497,604 | 6,275,862 | | **Non-current Liabilities** | | | | Bank and Other Borrowings | 372,798 | 380,191 | | **Total Equity** | 9,548,923 | 9,352,556 | - Net current liabilities: **HK$5.679 billion** as of June 30, 2025, compared to **HK$5.667 billion** as of December 31, 2024, representing a slight increase[6](index=6&type=chunk) - Total assets less current liabilities: **HK$10.122 billion** as of June 30, 2025, compared to **HK$9.937 billion** as of December 31, 2024[6](index=6&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [1. Basis of Preparation](index=6&type=section&id=1.%20Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the HKICPA and the disclosure requirements of Appendix 16 to the HKEX Listing Rules - Prepared in accordance with **Hong Kong Accounting Standard 34 "Interim Financial Reporting"** and **Appendix 16 of the Listing Rules**[8](index=8&type=chunk) [2. Principal Accounting Policies](index=6&type=section&id=2.%20Principal%20Accounting%20Policies) The condensed consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value; accounting policies adopted are consistent with the 2024 annual financial statements, except for the initial application of HKFRS amendments, which are not expected to have a significant impact - Preparation basis: **historical cost**, with certain financial instruments measured at fair value[9](index=9&type=chunk) - Accounting policies are consistent with the **2024 annual financial statements**, except for the initial application of HKFRS amendments[9](index=9&type=chunk) - New accounting standard amendments: Initial application of **HKAS 21 (Amendment) "Lack of Exchangeability"**, with no significant impact expected on the financial statements[10](index=10&type=chunk) [3. Segment Information](index=7&type=section&id=3.%20Segment%20Information) The Group is divided into two operating segments: Liquid Crystal Display Products and Consumer Electronic Products; for the six months ended June 30, 2025, external revenue for LCD products was HK$5.755 billion, and for consumer electronic products was HK$2.343 billion; segment results were HK$442 million for LCD products and a loss of HK$104 million for consumer electronic products - Operating segments: **Liquid Crystal Display Products** (manufacturing and distribution of LCD and touch panel products) and **Consumer Electronic Products** (manufacturing and distribution of micro camera modules, fingerprint identification modules, personal healthcare products, and electronic devices)[11](index=11&type=chunk) Segment Revenue and Results (For the Six Months Ended June 30, 2025) | Segment | External Revenue (HK$ Thousand) | Segment Results (HK$ Thousand) | | :--- | :--- | :--- | | Liquid Crystal Display Products | 5,755,338 | 442,215 | | Consumer Electronic Products | 2,342,847 | (104,012) | | Total | 8,098,185 | 338,203 | Segment Revenue and Results (For the Six Months Ended June 30, 2024) | Segment | External Revenue (HK$ Thousand) | Segment Results (HK$ Thousand) | | :--- | :--- | :--- | | Liquid Crystal Display Products | 5,998,619 | 451,131 | | Consumer Electronic Products | 2,586,673 | (57,351) | | Total | 8,585,292 | 393,780 | [4. Finance Costs](index=8&type=section&id=4.%20Finance%20Costs) For the six months ended June 30, 2025, interest on bank and other borrowings was HK$158 million, a decrease from HK$193 million in the same period of 2024 Finance Costs (For the Six Months Ended June 30) | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Interest on bank and other borrowings repayable wholly within five years | 157,953 | 193,061 | [5. Income Tax Expense](index=8&type=section&id=5.%20Income%20Tax%20Expense) Hong Kong Profits Tax is calculated at 16.5%, while PRC subsidiaries are taxed at 15% under high-tech enterprise or western region preferential policies, and other PRC subsidiaries at 25%; a 5% to 10% PRC withholding tax is levied on profits distributed from PRC subsidiaries to Hong Kong holding companies - Hong Kong Profits Tax rate: **16.5%**[15](index=15&type=chunk) - PRC Enterprise Income Tax rate: **15%** for high-tech enterprises or those under western region preferential policies, and **25%** for others[16](index=16&type=chunk) - PRC Withholding Tax: **5% to 10%** on profits distributed from PRC subsidiaries to Hong Kong holding companies[16](index=16&type=chunk) [6. Profit for the Period](index=9&type=section&id=6.%20Profit%20for%20the%20Period) Profit for the period is achieved after deducting expenses such as auditors' remuneration, cost of inventories, depreciation and amortization, loss on disposal of property, plant and equipment, operating lease rentals, and staff costs Profit for the Period Deductions (For the Six Months Ended June 30) | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Auditors' Remuneration | 2,400 | 2,400 | | Cost of Inventories Recognized as an Expense | 6,181,421 | 6,573,149 | | Depreciation and Amortization of Property, Plant and Equipment | 588,062 | 630,687 | | Depreciation and Amortization of Right-of-use Assets | 15,536 | 8,968 | | Loss on Disposal of Property, Plant and Equipment | 27,626 | 43,493 | | Rental for Operating Leases | 5,061 | 2,515 | | Staff Costs | 844,694 | 840,771 | | Other Taxes | 24,087 | 41,929 | [7. Earnings Per Share](index=9&type=section&id=7.%20Earnings%20Per%20Share) For the six months ended June 30, 2025, basic earnings per share decreased to 4.49 HK cents from 5.51 HK cents in the same period of 2024; diluted earnings per share are not presented due to the absence of significant potential ordinary shares Earnings Per Share Calculation Data (For the Six Months Ended June 30) | Item | 2025 (HK$ Thousand/Thousand Shares) | 2024 (HK$ Thousand/Thousand Shares) | | :--- | :--- | :--- | | Profit for the Purpose of Calculating Basic and Diluted Earnings Per Share | 140,686 | 174,151 | | Weighted Average Number of Ordinary Shares for the Purpose of Calculating Basic and Diluted Earnings Per Share | 3,131,259 | 3,161,105 | - Basic earnings per share: **4.49 HK cents** in 2025, compared to **5.51 HK cents** in 2024[5](index=5&type=chunk) - Diluted earnings per share are not presented due to the absence of significant potential ordinary shares[19](index=19&type=chunk) [8. Dividends](index=10&type=section&id=8.%20Dividends) The company paid a 2024 final dividend of 5 HK cents per share, totaling HK$157 million; the Board recommends declaring a 2025 interim dividend of 5 HK cents per share, totaling HK$153 million, consistent with the prior year Dividends Paid and Proposed (For the Six Months Ended June 30) | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Dividends Paid: 2024 Final Dividend (5 HK cents per share) | 157,189 | 158,055 | | Proposed Dividends: 2025 Interim Dividend (5 HK cents per share) | 153,248 | 158,055 | [9. Trade and Other Receivables](index=10&type=section&id=9.%20Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade receivables were HK$3.198 billion, net of credit loss provision at HK$3.172 billion, a decrease from the end of 2024; other receivables, deposits, and prepayments amounted to HK$212 million; the ageing analysis of trade receivables shows the largest portion is within 60 days Trade and Other Receivables (As of June 30) | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Trade Receivables | 3,198,136 | 3,396,196 | | Less: Provision for Credit Losses | (25,720) | (25,648) | | **Net Trade Receivables** | **3,172,416** | **3,370,548** | | Other Receivables, Deposits and Prepayments | 212,039 | 370,405 | | **Total Trade and Other Receivables** | **3,384,455** | **3,740,953** | Ageing Analysis of Trade Receivables (As of June 30) | Ageing | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Within 60 days | 2,157,640 | 2,387,530 | | 61 to 90 days | 600,004 | 547,918 | | Over 90 days | 414,772 | 435,100 | | **Total** | **3,172,416** | **3,370,548** | - Provision for credit losses: Opening balance of **HK$25,648 thousand**, impairment loss recognized of **HK$575 thousand**, recoverable amount reversed of **HK$503 thousand**, closing balance of **HK$25,720 thousand**[22](index=22&type=chunk) [10. Trade Receivables at Fair Value Through Other Comprehensive Income](index=11&type=section&id=10.%20Trade%20Receivables%20at%20Fair%20Value%20Through%20Other%20Comprehensive%20Income) As of June 30, 2025, total trade and bills receivables at fair value through other comprehensive income amounted to HK$1.536 billion, an increase from HK$1.185 billion at the end of 2024, primarily driven by an increase in bills receivables Trade and Bills Receivables at Fair Value Through Other Comprehensive Income (As of June 30) | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Trade Receivables | 136,765 | 199,349 | | Bills Receivables | 1,398,739 | 985,849 | | **Total** | **1,535,504** | **1,185,198** | Ageing Analysis of Trade and Bills Receivables at Fair Value Through Other Comprehensive Income (As of June 30) | Ageing | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Within 60 days | 1,062,501 | 824,007 | | 61 to 90 days | 186,602 | 113,675 | | Over 90 days | 286,401 | 247,516 | | **Total** | **1,535,504** | **1,185,198** | [11. Trade and Other Payables](index=12&type=section&id=11.%20Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and bills payables amounted to HK$6.670 billion, an increase from HK$6.368 billion at the end of 2024, with the largest portion being trade payables within 60 days Ageing Analysis of Trade and Other Payables (As of June 30) | Ageing | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Within 60 days | 3,921,841 | 3,548,105 | | 61 to 90 days | 997,879 | 764,518 | | Over 90 days | 1,750,607 | 2,055,112 | | **Total** | **6,670,327** | **6,367,735** | [Management Discussion and Analysis](index=13&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=13&type=section&id=Business%20Review) The company is a leading smartphone component manufacturer and automated display supplier in China, specializing in LCD and consumer electronic products; in H1 2025, revenue decreased by 5.7% due to global economic challenges and intense smartphone market competition, with smartphone-related business down 12.1% and non-smartphone business slightly down 0.4%; gross profit margin declined by 0.2% to 7.9% - Company positioning: One of China's largest **smartphone component manufacturers** and a top global **automated display supplier**[25](index=25&type=chunk) - Core businesses: (i) **Liquid Crystal Display Products** (including touch panel products) and (ii) **Consumer Electronic Products** (including micro camera modules, fingerprint identification modules, personal healthcare products, and electronic devices)[25](index=25&type=chunk) - Revenue decline: Revenue for the period was **HK$8.10 billion**, a year-on-year decrease of **5.7%**[26](index=26&type=chunk) - Smartphone-related product business: Decreased by **12.1%** year-on-year[26](index=26&type=chunk) - Non-smartphone related product business (automotive, industrial, medical, and IoT): Decreased slightly by **0.4%** year-on-year[26](index=26&type=chunk) - Gross profit margin: Decreased by **0.2%** to **7.9%**, primarily due to intense competition in the smartphone market[26](index=26&type=chunk) [Financial Review](index=13&type=section&id=Financial%20Review) This section reviews the company's financial performance; revenue declined due to reduced smartphone-related sales in China, and gross profit margin fell due to market competition; other income decreased due to lower government grants, while net other losses increased due to exchange losses; administrative and distribution expenses decreased due to lower Chinese taxes, salaries, freight, and after-sales service fees; profit attributable to owners of the company declined primarily due to reduced revenue and gross profit [Revenue](index=13&type=section&id=Revenue) Revenue for the period was approximately HK$8.098 billion, a year-on-year decrease of 5.7% or approximately HK$487 million, primarily due to reduced smartphone-related sales in China - Revenue: Approximately **HK$8.098 billion**, a year-on-year decrease of **5.7%** or approximately **HK$487 million**[27](index=27&type=chunk) - Primary reason for revenue decrease: Reduced **smartphone-related sales in China**[27](index=27&type=chunk) [Gross Profit and Gross Profit Margin](index=13&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) Gross profit for the period was approximately HK$637 million, with a gross profit margin of approximately 7.9%, representing year-on-year decreases of 8.7% and 0.2% respectively; the decline in gross profit margin was primarily due to intense competition in the smartphone market - Gross profit: Approximately **HK$637 million**, a year-on-year decrease of **8.7%**[28](index=28&type=chunk) - Gross profit margin: Approximately **7.9%**, a year-on-year decrease of **0.2%**[28](index=28&type=chunk) - Primary reason for gross profit margin decline: Intense **competition in the smartphone market**[28](index=28&type=chunk) [Other Income](index=14&type=section&id=Other%20Income) Other income for the period was approximately HK$59.5 million, a year-on-year decrease of 26.2% or approximately HK$21.1 million, primarily due to reduced government grants (HK$25.0 million in 2025 vs HK$41.3 million in 2024) - Other income: Approximately **HK$59.5 million**, a year-on-year decrease of **26.2%** or approximately **HK$21.1 million**[29](index=29&type=chunk) - Primary reason for other income decrease: Reduced **government grants** (HK$25.0 million in 2025 vs **HK$41.3 million** in 2024)[29](index=29&type=chunk) [Other Gains and Losses](index=14&type=section&id=Other%20Gains%20and%20Losses) Net other losses for the period were approximately HK$33.2 million, an increase from HK$17.3 million in the same period of 2024, primarily due to a net exchange loss of approximately HK$5.3 million (compared to a net exchange gain of HK$15.5 million in 2024) - Other gains and losses: Net loss of **HK$33.2 million** for the period (2024: net loss of **HK$17.3 million**)[30](index=30&type=chunk) - Primary reason for increased loss: Net exchange loss of approximately **HK$5.3 million** (2024: net exchange gain of approximately **HK$15.5 million**)[30](index=30&type=chunk) [Administrative Expenses](index=14&type=section&id=Administrative%20Expenses) Administrative expenses for the period were approximately HK$212.3 million, a year-on-year decrease of 12.4% or approximately HK$30.0 million, primarily due to reduced other PRC taxes, salaries, and allowances - Administrative expenses: Approximately **HK$212.3 million**, a year-on-year decrease of **12.4%** or approximately **HK$30.0 million**[31](index=31&type=chunk) - Primary reason for administrative expense decrease: Reduced **other PRC taxes** and **salaries and allowances**[31](index=31&type=chunk) [Distribution and Selling Expenses](index=14&type=section&id=Distribution%20and%20Selling%20Expenses) Distribution and selling expenses for the period were approximately HK$127.9 million, a year-on-year decrease of 17.1% or approximately HK$26.3 million, primarily due to reduced freight charges and after-sales service fees - Distribution and selling expenses: Approximately **HK$127.9 million**, a year-on-year decrease of **17.1%** or approximately **HK$26.3 million**[32](index=32&type=chunk) - Primary reason for distribution and selling expense decrease: Reduced **freight charges** and **after-sales service fees**[32](index=32&type=chunk) [Profit for the Period Attributable to Owners of the Company](index=14&type=section&id=Profit%20for%20the%20Period%20Attributable%20to%20Owners%20of%20the%20Company) Profit for the period attributable to owners of the company was approximately HK$140.7 million, a year-on-year decrease of 19.2%, primarily due to reductions in revenue of approximately HK$487 million and gross profit of approximately HK$60 million - Profit for the period attributable to owners of the company: Approximately **HK$140.7 million**, a year-on-year decrease of **19.2%**[33](index=33&type=chunk) - Primary reason for profit decrease: Revenue decreased by approximately **HK$487 million** and gross profit decreased by approximately **HK$60 million**[33](index=33&type=chunk) [Prospects](index=15&type=section&id=Prospects) Looking ahead to H2 2025, global economic conditions and geopolitical uncertainties will impact consumer electronics demand; management remains cautiously optimistic about smartphone and non-smartphone related businesses, focusing on market technology, supply chain changes, R&D upgrades, production process optimization, and close client communication to deliver high-quality products and solutions for steady business expansion - Outlook: Global economic environment and geopolitical uncertainties will impact **consumer electronics industry demand**[34](index=34&type=chunk) - Business outlook: Smartphone and non-smartphone related product businesses are expected to remain stable, with management holding a **cautiously optimistic** view[34](index=34&type=chunk) - Strategic focus: Continuous attention to market technology demands and supply chain changes in display and non-display businesses; R&D technology and production process upgrades; close communication with customers to provide high-quality products and solutions for steady business expansion[34](index=34&type=chunk) [Material Investments, Acquisitions, Assets and Liabilities](index=15&type=section&id=Material%20Investments%2C%20Acquisitions%2C%20Assets%20and%20Liabilities) In May 2024, the company acquired an additional 12.55% equity interest in Truly Renshou from another shareholder for a cash consideration of RMB1.097 billion, increasing its effective interest in Truly Renshou from 17.14% to 29.69%; Truly Renshou remains an associate accounted for using the equity method - Investment in associate: Truly (Renshou) High-End Display Technology Co., Ltd. ("Truly Renshou") commenced mass production in **2021**[35](index=35&type=chunk) - Equity acquisition: In May 2024, the company acquired an additional **12.55%** equity interest in Truly Renshou for a cash consideration of **RMB1.097 billion**[36](index=36&type=chunk) - Change in shareholding: The company's effective interest in Truly Renshou increased from **17.14%** to **29.69%**[36](index=36&type=chunk) - Accounting treatment: Truly Renshou remains an associate, consolidated into the financial statements using the **equity method**[35](index=35&type=chunk)[36](index=36&type=chunk) [Liquidity and Financial Resources](index=16&type=section&id=Liquidity%20and%20Financial%20Resources) During the period, Group assets increased by HK$443 million and liabilities increased by HK$246 million; as of June 30, 2025, net borrowings were approximately HK$5.218 billion, a 1.0% increase from the end of 2024; net current liabilities were approximately HK$5.679 billion, with a current ratio maintained at 0.62 times; the gearing ratio decreased from 56% at the end of 2024 to 55%; the company has ample bank facilities, with working capital primarily from internal cash flow and bank facilities - Asset and liability changes: Assets increased by approximately **HK$443 million** and liabilities increased by approximately **HK$246 million** during the period[37](index=37&type=chunk) - Net borrowings: Approximately **HK$5.218 billion** as of June 30, 2025, an increase of **1.0%** or **HK$54 million** from the end of 2024[37](index=37&type=chunk) - Net current liabilities: Approximately **HK$5.679 billion** as of June 30, 2025, a slight increase from the end of 2024[38](index=38&type=chunk) - Current ratio: Maintained at **0.62 times**, consistent with the end of 2024[38](index=38&type=chunk) - Gearing ratio: Approximately **55%**, a decrease from **56%** at the end of 2024[39](index=39&type=chunk) - Cash and bank balances: Approximately **HK$1.716 billion** as of June 30, 2025, with ample bank facilities[39](index=39&type=chunk) [Pledge of Assets](index=16&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group had no pledge of assets - No pledge of assets: As of June 30, 2025, the Group had **no pledge of assets**[40](index=40&type=chunk) [General](index=16&type=section&id=General) The Group's current order book remains robust; as of the period end, the Group employed approximately 14,400 workers and employees in its PRC factories and about 40 staff in its Hong Kong office, with total staff costs of approximately HK$845 million - Order book status: **Robust**[41](index=41&type=chunk) - Number of employees: Approximately **14,400** in PRC factories and about **40** in the Hong Kong office[41](index=41&type=chunk) - Total staff costs: Approximately **HK$845 million** for the period[41](index=41&type=chunk) [Capital Commitments](index=16&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group had contracted but unprovided capital expenditure commitments for the acquisition of property, plant and equipment of approximately HK$164 million - Capital expenditure commitments: Contracted but unprovided capital expenditure for the acquisition of property, plant and equipment of approximately **HK$164 million**[42](index=42&type=chunk) [Other Information](index=17&type=section&id=Other%20Information) [Contingent Liabilities](index=17&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the company had no significant contingent liabilities - No significant contingent liabilities: As of June 30, 2025, the company had **no significant contingent liabilities**[43](index=43&type=chunk) [Exchange Rate Fluctuation Risk](index=17&type=section&id=Exchange%20Rate%20Fluctuation%20Risk) The company stated that it would consider hedging if there were exchange rate fluctuation risks - Exchange rate risk management: Hedging will be considered if there are **exchange rate fluctuation risks**[44](index=44&type=chunk) [Interim Dividend](index=17&type=section&id=Interim%20Dividend) The Board resolved to declare a 2025 interim dividend of 5 HK cents per ordinary share, consistent with 2024; the dividend will be paid on December 1, 2025, to shareholders on record as of November 3, 2025 - Interim dividend: **5 HK cents** per ordinary share (same as 2024)[45](index=45&type=chunk) - Payment date: Expected to be **December 1, 2025**[45](index=45&type=chunk) - Record date: **November 3, 2025**[45](index=45&type=chunk) [Closure of Register of Members](index=17&type=section&id=Closure%20of%20Register%20of%20Members) To determine eligibility for the interim dividend, the company will suspend registration of share transfers on November 3, 2025; all share transfer documents must be lodged with the Hong Kong share registrar by 4:30 p.m. on October 31, 2025, for registration - Suspension of registration date: **November 3, 2025**[46](index=46&type=chunk) - Deadline for transfer documents: **4:30 p.m. on October 31, 2025**[46](index=46&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=17&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) For the six months ended June 30, 2025, the company repurchased a total of 75,312,000 ordinary shares on the Stock Exchange for approximately HK$80 million, representing about 2.44% of the issued share capital; 44,718,000 shares were cancelled during the period, and the remaining 30,594,000 shares were cancelled after the reporting period; no other listed securities were purchased, redeemed, or sold by the company or its subsidiaries - Share repurchases: **75,312,000 ordinary shares** repurchased for a total consideration of approximately **HK$80 million**[47](index=47&type=chunk) - Percentage of issued share capital: Approximately **2.44%**[47](index=47&type=chunk) - Share cancellations: **44,718,000 shares** cancelled during the period, with the remaining **30,594,000 shares** cancelled after the reporting period[47](index=47&type=chunk) [Model Code](index=18&type=section&id=Model%20Code) To the best of the directors' knowledge, the directors have complied with the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules during the review period - Directors' compliance with Model Code: To the best of the directors' knowledge, compliance with **Appendix C3 of the Listing Rules** has been maintained[48](index=48&type=chunk) [Audit Committee](index=18&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, is responsible for reviewing and overseeing the Group's financial reporting and internal controls; the committee has reviewed the unaudited interim condensed consolidated financial statements for the period and confirmed their compliance with applicable accounting standards - Composition: Comprises **three independent non-executive directors** (Mr. Chung Kam Kwong, Mr. Cheung Wai Yin, and Mr. Heung Kai Sing)[49](index=49&type=chunk) - Responsibilities: Review and oversee the Group's **financial reporting matters** and **internal controls**[49](index=49&type=chunk) - Review outcome: Financial statements for the period have been reviewed and are deemed to be prepared in accordance with **applicable accounting standards**[49](index=49&type=chunk) [Corporate Governance](index=18&type=section&id=Corporate%20Governance) For the six months ended June 30, 2025, the company complied with the Corporate Governance Code in Appendix C1 of the Listing Rules, with two significant deviations: the roles of Chairman and Chief Executive Officer are combined, and the Chairman did not attend the AGM; the Board believes the combined role enhances efficiency, and regular Board meetings balance power - Compliance: Complied with the **Corporate Governance Code in Appendix C1 of the Listing Rules**, except for two significant deviations[50](index=50&type=chunk) - Deviation 1: The roles of **Chairman and Chief Executive Officer are combined** by Mr. Lin Wei Hua; the Board believes this structure achieves higher efficiency and effectiveness[50](index=50&type=chunk) - Deviation 2: The Chairman did not attend the **Annual General Meeting on May 12, 2025**, as he remained at the Shanwei factory[51](index=51&type=chunk) [Events After the Reporting Period](index=19&type=section&id=Events%20After%20the%20Reporting%20Period) Except as disclosed in this announcement, no other significant events affecting the Group have occurred after June 30, 2025, and up to the date of this announcement - No other significant events: Except as disclosed, no other significant events occurred after the reporting period[52](index=52&type=chunk) [Publication of Interim Results and Interim Report](index=19&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report) This interim results announcement has been published on the 'HKEXnews' website and the company's website; the 2025 interim report containing all information will be published in due course - Announcement publication platforms: **"HKEXnews" website** (www.hkexnews.hk) and the **company's website** (www.truly.com.hk)[53](index=53&type=chunk) - Interim report: The **2025 interim report** will be published in due course[53](index=53&type=chunk) [Board of Directors Information](index=19&type=section&id=Board%20of%20Directors%20Information) As of the announcement date, the Board of Directors comprises Executive Directors Mr. Lin Wei Hua (Chairman), Mr. Wong Pong Chun, Mr. Cheung Wing Cheung; Non-executive Directors Mr. Song Bei Bei, Ms. Lin Bao Zhen; and Independent Non-executive Directors Mr. Chung Kam Kwong, Mr. Heung Kai Sing, Mr. Cheung Wai Yin - Board members: Include **Executive Directors**, **Non-executive Directors**, and **Independent Non-executive Directors**[55](index=55&type=chunk) - Chairman: **Mr. Lin Wei Hua**[54](index=54&type=chunk)[55](index=55&type=chunk)

VODATEL NETWORKS HOLDINGS LIMITED 愛達利網絡控股有限公司 （在百慕大註冊成立的有限公司） 股份代號：八○三三 中期報告 二○二五 GEM的特色 GEM的 定 位，乃 為 中 小 型 公 司 提 供 一 個 上 市 的 市 場，此 等 公 司 相 比 起 其 他 在 主 板 上 市 的 公 司 帶 有 較 高 投 資 風 險。有 意 投 資 的 人 士 應 了 解 投 資 於 該 等 公 司 的 潛 在 風 險，並 應 經 過 審 慎 周 詳 的 考 慮 後 方 作 出 投 資 決 定。 由 於GEM上 市 公 司 普 遍 為 中 小 型 公 司，在GEM買賣的證券 可 能 會 較 於 主 板 買 賣 之 證 券 承 受 較 大 的 市 場 波 動 風 險，同 時 無法保證在GEM買 賣 的 證 券 會 有 高 流 通 量 的 市 場。 交 易 及 結 算 所 及 聯 交 所 對 本 文 件 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 文件全部或任何部分內容而產生或因倚賴該等內容而引致 ...

[Company Information and Financial Summary](index=1&type=section&id=I.%20Company%20Information%20and%20Financial%20Summary) [Company Overview](index=1&type=section&id=1.1%20Company%20Overview) Tianchang Group Holdings Limited announced its unaudited interim results for the six months ended June 30, 2025 - Company Name: Tianchang Group Holdings Limited (Stock Code: 2182)[2](index=2&type=chunk) - Reporting Period: Six months ended June 30, 2025[2](index=2&type=chunk) [Condensed Consolidated Statement of Profit or Loss](index=1&type=section&id=1.2%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the company's revenue increased, but loss for the period widened due to higher tax expenses Condensed Consolidated Statement of Profit or Loss (For the six months ended June 30) | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 254,213 | 227,680 | 26,533 | 11.65% | | Cost of sales | (206,053) | (186,998) | (19,055) | 10.20% | | Gross profit | 48,160 | 40,682 | 7,478 | 18.38% | | Other income | 2,731 | 4,159 | (1,428) | (34.34%) | | Other net gains | 946 | 69 | 877 | 1271.01% | | Reversal of impairment loss on trade receivables (impairment loss) | (3,421) | 151 | (3,572) | -2365.56% | | Selling and distribution costs | (3,106) | (2,416) | (690) | 28.56% | | Administrative and other operating expenses | (53,542) | (51,753) | (1,789) | 3.46% | | Finance costs | (762) | (1,467) | 705 | (48.06%) | | Loss before tax | (8,994) | (10,575) | 1,581 | (14.95%) | | Income tax (expense) credit | (2,593) | 2,631 | (5,224) | -198.56% | | Loss for the period attributable to owners of the Company | (11,587) | (7,944) | (3,643) | 45.86% | | Basic loss per share (HK cents) | (1.87) | (1.28) | (0.59) | 46.09% | | Diluted loss per share (HK cents) | (1.87) | (1.28) | (0.59) | 46.09% | [Condensed Consolidated Statement of Comprehensive Income](index=2&type=section&id=1.3%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's total comprehensive loss for the period significantly narrowed as exchange differences turned from negative to positive Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | Loss for the period | (11,587) | (7,944) | (3,643) | | Exchange differences arising on translation of foreign operations | 8,323 | (3,979) | 12,302 | | Total comprehensive loss for the period attributable to owners of the Company | (3,264) | (11,923) | 8,659 | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=1.4%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets and total liabilities both decreased, net assets slightly reduced, and net current assets improved Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Metric | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Non-current assets** | | | | | | Property, plant and equipment | 545,495 | 561,735 | (16,240) | (2.89%) | | Financial assets at fair value through profit or loss | 26,330 | 25,981 | 349 | 1.34% | | Deferred tax assets | 2,695 | 2,707 | (12) | (0.44%) | | **Current assets** | | | | | | Inventories | 68,065 | 71,421 | (3,356) | (4.70%) | | Trade and other receivables | 121,196 | 132,435 | (11,239) | (8.49%) | | Cash and cash equivalents | 118,446 | 129,454 | (11,008) | (8.50%) | | **Current liabilities** | | | | | | Trade and other payables | 92,856 | 118,571 | (25,715) | (21.69%) | | Interest-bearing borrowings | 20,714 | 31,221 | (10,507) | (33.66%) | | Net current assets | 188,647 | 177,158 | 11,489 | 6.48% | | **Non-current liabilities** | | | | | | Amounts payable for construction in progress | 2,336 | 2,248 | 88 | 3.91% | | Deferred income | 6,335 | 6,966 | (631) | (9.06%) | | Deferred tax liabilities | 8,181 | 7,829 | 352 | 4.50% | | **Net assets** | 741,679 | 744,943 | (3,264) | (0.44%) | | **Total equity** | 741,679 | 744,943 | (3,264) | (0.44%) | [Notes to the Financial Statements](index=4&type=section&id=II.%20Notes%20to%20the%20Financial%20Statements) [General Information and Basis of Presentation](index=4&type=section&id=2.1%20General%20Information%20and%20Basis%20of%20Presentation) The company is incorporated in the Cayman Islands, primarily engaged in manufacturing and selling e-cigarette products and medical consumables, and providing integrated injection molding solutions in Hong Kong and China. The interim financial statements are prepared in accordance with HKAS 34, with accounting policies consistent with 2024, and no new/revised HKFRSs have been adopted - Company's place of incorporation: Cayman Islands, with shares listed on the Main Board of the Hong Kong Stock Exchange[7](index=7&type=chunk) - Principal activities: Investment holding, with subsidiaries primarily engaged in manufacturing and selling e-cigarette products and medical consumables, and providing integrated injection molding solutions in Hong Kong and China[7](index=7&type=chunk) - Basis of preparation of financial statements: Prepared in accordance with HKAS 34 and the Listing Rules of the Stock Exchange, with accounting policies consistent with 2024, and no new/revised HKFRSs adopted[7](index=7&type=chunk)[8](index=8&type=chunk)[9](index=9&type=chunk) [Segment Information](index=5&type=section&id=2.2%20Segment%20Information) The Group allocates resources and assesses performance based on three business segments: e-cigarette products, integrated injection molding solutions, and medical consumables - Reportable segments: E-cigarette products, integrated injection molding solutions, medical consumables[10](index=10&type=chunk)[11](index=11&type=chunk) - Definition of segment revenue: Revenue derived from manufacturing and selling e-cigarette products, molds and plastic products, and medical consumables[10](index=10&type=chunk) - Definition of segment results: Gross profit of each segment less selling and distribution costs, reversal of impairment loss on trade receivables (impairment loss), write-off of property, plant and equipment, and loss on disposal of property, plant and equipment[10](index=10&type=chunk) [Segment Revenue and Results](index=5&type=section&id=2.2.1%20Segment%20Revenue%20and%20Results) Segment Revenue and Results (For the six months ended June 30) | Segment | 2025 Revenue (thousand HKD) | 2024 Revenue (thousand HKD) | Revenue Change (%) | 2025 Gross Profit (thousand HKD) | 2024 Gross Profit (thousand HKD) | Gross Profit Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | E-cigarette products | 22,389 | 47,142 | (52.51%) | 2,556 | 5,737 | (55.45%) | | Integrated injection molding solutions | 230,711 | 179,307 | 28.67% | 46,132 | 34,880 | 32.25% | | Medical consumables | 1,113 | 1,231 | (9.59%) | (528) | 65 | -912.31% | | **Total** | **254,213** | **227,680** | **11.65%** | **48,160** | **40,682** | **18.38%** | Segment Assets and Liabilities (As of June 30, 2025) | Segment | June 30, 2025 Assets (thousand HKD) | December 31, 2024 Assets (thousand HKD) | Asset Change (%) | June 30, 2025 Liabilities (thousand HKD) | December 31, 2024 Liabilities (thousand HKD) | Liability Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | E-cigarette products | 20,607 | 29,822 | (30.90%) | 5,372 | 8,898 | (39.63%) | | Integrated injection molding solutions | 353,777 | 371,927 | (4.90%) | 64,160 | 76,972 | (16.64%) | | Medical consumables | 3,697 | 6,047 | (38.86%) | – | – | – | | Unallocated | 504,735 | 516,517 | (2.28%) | 71,605 | 93,500 | (23.41%) | | **Total** | **882,816** | **924,313** | **(4.49%)** | **141,137** | **179,370** | **(21.32%)** | [Geographical Information](index=7&type=section&id=2.2.2%20Geographical%20Information) Geographical Location of Specified Non-current Assets (As of June 30, 2025) | Region | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Hong Kong | 2,817 | 4,149 | (1,332) | (32.11%) | | China | 542,678 | 557,586 | (14,908) | (2.67%) | | **Total** | **545,495** | **561,735** | **(16,240)** | **(2.89%)** | Revenue from External Customers (For the six months ended June 30) | Region | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | United States of America | 43,801 | 44,111 | (310) | (0.70%) | | China | 132,823 | 131,227 | 1,596 | 1.22% | | United Kingdom | 11,967 | 9,330 | 2,637 | 28.26% | | Hong Kong | 7,809 | 312 | 7,497 | 2402.88% | | Netherlands | 15,856 | 33,542 | (17,686) | (52.73%) | | India | 36,697 | 7,507 | 29,190 | 388.84% | | Brazil | 968 | – | 968 | N/A | | Malaysia | 3,348 | – | 3,348 | N/A | | Others | 944 | 1,651 | (707) | (42.82%) | | **Total** | **254,213** | **227,680** | **26,533** | **11.65%** | [Major Customer Information](index=8&type=section&id=2.2.3%20Major%20Customer%20Information) Revenue from Major Customers for the six months ended June 30, 2025 | Customer | Revenue (thousand HKD) | Percentage of Total Revenue | Principal Segment | | :--- | :--- | :--- | :--- | | Customer B and its affiliates | 51,999 | 20.45% | Integrated injection molding solutions | | Customer C and its affiliates | 43,023 | 16.92% | Integrated injection molding solutions | | **Total** | **95,022** | **37.38%** | | Revenue from Major Customers for the six months ended June 30, 2024 | Customer | Revenue (thousand HKD) | Percentage of Total Revenue | Principal Segment | | :--- | :--- | :--- | :--- | | Customer A and its affiliates | 45,405 | 19.94% | E-cigarette products | | Customer B and its affiliates | 57,421 | 25.22% | Integrated injection molding solutions | | **Total** | **102,826** | **45.16%** | | [Revenue Composition](index=9&type=section&id=2.3%20Revenue%20Composition) For the six months ended June 30, 2025, revenue from sales of molds and plastic products significantly increased, becoming the primary revenue source, while revenue from e-cigarette product sales substantially decreased Revenue Composition (For the six months ended June 30) | Revenue Source | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Sales of e-cigarette products | 22,389 | 47,142 | (24,753) | (52.51%) | | Sales of molds and plastic products | 230,711 | 179,307 | 51,404 | 28.67% | | Sales of medical consumables | 1,113 | 1,231 | (118) | (9.59%) | | **Total** | **254,213** | **227,680** | **26,533** | **11.65%** | [Other Income](index=9&type=section&id=2.4%20Other%20Income) For the six months ended June 30, 2025, total other income decreased, primarily due to a reduction in miscellaneous income Other Income (For the six months ended June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Bank interest income | 1,039 | 1,352 | (313) | (23.15%) | | Government grants | 891 | 737 | 154 | 20.89% | | Miscellaneous income | 784 | 1,748 | (964) | (55.15%) | | **Total** | **2,731** | **4,159** | **(1,428)** | **(34.34%)** | [Other Net Gains](index=9&type=section&id=2.5%20Other%20Net%20Gains) For the six months ended June 30, 2025, other net gains significantly increased, primarily benefiting from the positive turn in exchange gains Other Net Gains (For the six months ended June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | Net exchange gains (losses) | 732 | (348) | 1,080 | | Fair value changes of financial assets at fair value through profit or loss | 215 | 508 | (293) | | Write-off of property, plant and equipment | (1) | (16) | 15 | | **Total** | **946** | **69** | **877** | [Components of Loss Before Tax](index=10&type=section&id=2.6%20Components%20of%20Loss%20Before%20Tax) For the six months ended June 30, 2025, finance costs significantly decreased, while staff costs, cost of inventories, depreciation, and research and development expenses all increased Components of Loss Before Tax (For the six months ended June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Finance costs | 762 | 1,467 | (705) | (48.06%) | | Total staff costs | 69,778 | 65,751 | 4,027 | 6.12% | | Cost of inventories | 206,053 | 186,998 | 19,055 | 10.20% | | Depreciation | 24,881 | 25,193 | (312) | (1.24%) | | Write-down of inventories | 2,269 | 546 | 1,723 | 315.57% | | Research and development expenses | 7,411 | 9,462 | (2,051) | (21.68%) | [Taxation](index=10&type=section&id=2.7%20Taxation) For the six months ended June 30, 2025, the company shifted from an income tax credit in the prior period to an income tax expense, primarily due to under-provision for PRC corporate income tax in prior years and changes in deferred tax Income Tax Expense/Credit (For the six months ended June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | Current tax | 2,494 | (1,869) | 4,363 | | Deferred tax | 99 | (762) | 861 | | **Total income tax expense (credit)** | **2,593** | **(2,631)** | **5,224** | - Huizhou Tianchang Industrial Co., Ltd., as a "High and New Technology Enterprise", enjoys a preferential tax rate of **15%**[23](index=23&type=chunk) [Dividends](index=11&type=section&id=2.8%20Dividends) The Board resolved not to declare an interim dividend for the six months ended June 30, 2025, consistent with the prior period - No interim dividend was declared for the six months ended June 30, 2025[24](index=24&type=chunk) [Loss Per Share](index=11&type=section&id=2.9%20Loss%20Per%20Share) For the six months ended June 30, 2025, both basic and diluted loss per share were **1.87 HK cents**, widening from the prior period Loss Per Share (For the six months ended June 30) | Metric | 2025 (HK cents) | 2024 (HK cents) | Change (HK cents) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Basic loss per share | (1.87) | (1.28) | (0.59) | 46.09% | | Diluted loss per share | (1.87) | (1.28) | (0.59) | 46.09% | - Diluted loss per share is consistent with basic loss per share due to the anti-dilutive effect of potential ordinary shares[25](index=25&type=chunk) [Financial Assets at Fair Value Through Profit or Loss](index=12&type=section&id=2.10%20Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of June 30, 2025, financial assets at fair value through profit or loss (primarily key management insurance contracts) slightly increased, with a portion pledged as collateral for loans Financial Assets at Fair Value Through Profit or Loss (As of June 30, 2025) | Item | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Unlisted investments - key management insurance contracts | 26,330 | 25,981 | 349 | 1.34% | - Approximately **HKD 4,098,000** of key management insurance contracts were pledged as collateral for unused loan facilities (December 31, 2024: HKD 13,937,000)[27](index=27&type=chunk) [Trade and Other Receivables](index=12&type=section&id=2.11%20Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables decreased, but impairment provisions significantly increased, and the aging profile of trade receivables deteriorated Trade and Other Receivables (As of June 30, 2025) | Item | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Trade receivables (net of impairment provision) | 113,991 | 126,432 | (12,441) | (9.84%) | | Impairment provision | (10,293) | (6,790) | (3,503) | 51.60% | | Other receivables | 7,205 | 6,003 | 1,202 | 20.02% | | **Total** | **121,196** | **132,435** | **(11,239)** | **(8.49%)** | - Trade receivables have a credit period of up to **90 days**[29](index=29&type=chunk) Aging Analysis of Trade Receivables (As of June 30, 2025) | Aging | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Within 30 days | 65,719 | 84,288 | (18,569) | (22.03%) | | 31 to 60 days | 26,241 | 28,977 | (2,736) | (9.44%) | | 61 to 90 days | 16,400 | 11,370 | 5,030 | 44.24% | | Over 90 days | 5,631 | 1,797 | 3,834 | 213.36% | [Trade and Other Payables](index=13&type=section&id=2.12%20Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables significantly decreased, primarily due to reductions in trade payables and salaries and bonuses payable Trade and Other Payables (As of June 30, 2025) | Item | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Trade payables | 61,908 | 73,066 | (11,158) | (15.27%) | | Contract liabilities | 7,624 | 12,804 | (5,180) | (40.46%) | | Salaries and bonuses payable | 8,321 | 16,238 | (7,917) | (48.76%) | | Accruals and other payables | 15,003 | 16,463 | (1,460) | (8.87%) | | **Total** | **92,856** | **118,571** | **(25,715)** | **(21.69%)** | - Trade payables have a credit period of no more than **90 days**[31](index=31&type=chunk) [Amounts Payable for Construction in Progress](index=14&type=section&id=2.13%20Amounts%20Payable%20for%20Construction%20in%20Progress) Amounts payable for construction in progress refer to amounts owed to contractors for the construction of manufacturing plants in China, which are unsecured, interest-free, and repayable within one to five years - Amounts payable for construction in progress are unsecured, interest-free, with a repayment period of **one to five years**[32](index=32&type=chunk) - The carrying amount is determined by discounting at an effective annual interest rate of **4.75%**[32](index=32&type=chunk) [Interest-Bearing Borrowings](index=14&type=section&id=2.14%20Interest-Bearing%20Borrowings) As of June 30, 2025, total interest-bearing borrowings decreased, the weighted average effective annual interest rate slightly increased, and they are secured by various assets Interest-Bearing Borrowings (As of June 30, 2025) | Item | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Interest-bearing borrowings | 20,714 | 31,221 | (10,507) | (33.66%) | | Weighted average effective annual interest rate | 4.27% | 3.76% | 0.51% | 13.56% | - Borrowings are secured by buildings, equipment, right-of-use assets for prepaid land lease payments, key management insurance contracts, and corporate guarantees[34](index=34&type=chunk) [Business and Financial Review](index=15&type=section&id=III.%20Business%20and%20Financial%20Review) [Business Review](index=15&type=section&id=3.1%20Business%20Review) The Group operates through three segments: integrated injection molding solutions, e-cigarette products, and medical consumables, distributing products to domestic and international markets. Despite a challenging business environment, total sales grew moderately, but loss for the period widened due to increased tax expenses. The company continues to invest in R&D to strengthen its technological leadership - Operating segments: Integrated injection molding solutions, e-cigarette products, medical consumables[35](index=35&type=chunk) - Market distribution: Domestic and overseas markets (Europe, Asia, United States)[35](index=35&type=chunk) - Business environment challenges: Global economic uncertainty, inflationary pressures, cautious consumer spending, and impact of US tariffs[35](index=35&type=chunk) - Strategic focus: Investing in R&D, establishing a Shenzhen R&D center to enhance new product development for integrated injection molding solutions and core e-cigarette technologies[35](index=35&type=chunk) [Integrated Injection Molding Solutions](index=15&type=section&id=3.1.1%20Integrated%20Injection%20Molding%20Solutions) - Services: Injection mold design and manufacturing, injection molded component design and manufacturing[37](index=37&type=chunk) - Technical capability: Mold manufacturing achieves the highest precision level MT1 (GB/T14486-2008) under national guidelines[37](index=37&type=chunk)[38](index=38&type=chunk) - Product applications: Office furniture, office electronics, home appliances, communication products, automobiles, and solar systems[38](index=38&type=chunk) [E-cigarette Product Manufacturing](index=16&type=section&id=3.1.2%20E-cigarette%20Product%20Manufacturing) - Business model: OEM manufacturing of e-cigarette products[39](index=39&type=chunk) - Product types: Disposable e-cigarettes, refillable e-cigarettes, battery rods, atomizers, vaporizers, and heated tobacco devices[39](index=39&type=chunk) - Qualifications: Obtained a Tobacco Monopoly Production Enterprise License issued by the State Tobacco Monopoly Administration of the People's Republic of China[39](index=39&type=chunk) - R&D focus: Shenzhen R&D center focuses on enhancing atomization technology, innovative heating wire design, and other key technological breakthroughs[39](index=39&type=chunk) [Medical Consumables Manufacturing](index=16&type=section&id=3.1.3%20Medical%20Consumables%20Manufacturing) - Product scope: Disposable masks, medical device products[40](index=40&type=chunk) - Quality certifications: Complies with "YY/T 0033-2000 Sterile Medical Device Production Management Specification" and EN ISO13485:2016 Medical Devices Quality Management System Standard[40](index=40&type=chunk) - Product standards: Medical masks meet US ASTM F2100 Level 3 and European EN14683 Type IIR standards[41](index=41&type=chunk) - Advanced protective masks: KN95 passed China GB2626-2019 standard and NIOSH N95 pre-certification test; FFP2 passed EN 149:2001+A1:2009 standard and obtained CE mark[41](index=41&type=chunk) - FDA approval: N95 and FFP2 medical particulate filtering foldable masks obtained US FDA 510(k) premarket notification clearance in August 2022[41](index=41&type=chunk) [Financial Review](index=17&type=section&id=3.2%20Financial%20Review) For the six months ended June 30, 2025, the Group's total revenue grew moderately, and gross profit margin improved, but loss for the period widened due to increased selling and distribution costs, administrative expenses, and a shift from income tax credit to expense - Total revenue increased by **11.6%** to **HKD 254.2 million**[42](index=42&type=chunk) - Gross profit margin improved to **19.0%** (2024: 17.9%)[43](index=43&type=chunk) - Loss for the period widened by **46.8%** to **HKD 11.6 million**[50](index=50&type=chunk) [Revenue Analysis](index=17&type=section&id=3.2.1%20Revenue%20Analysis) - Integrated injection molding solutions revenue: **HKD 230.7 million**, a year-on-year increase of **28.7%**, primarily driven by increased customer order volume[42](index=42&type=chunk) - E-cigarette product revenue: **HKD 22.4 million**, a year-on-year decrease of **52.5%**, affected by global economic uncertainty and cautious consumer spending[42](index=42&type=chunk) - Medical consumables revenue: **HKD 1.1 million**, a year-on-year decrease of **8.3%**[42](index=42&type=chunk) [Gross Profit Analysis](index=17&type=section&id=3.2.2%20Gross%20Profit%20Analysis) - Total gross profit: **HKD 48.2 million**, with a gross profit margin of **19.0%**[43](index=43&type=chunk) - Integrated injection molding solutions gross profit margin: **20.0%** (2024: 19.5%), an increase primarily due to a shift in product mix towards higher-margin products[43](index=43&type=chunk) - E-cigarette product gross profit margin: **11.6%** (2024: 12.1%), a decrease due to higher fixed overhead costs resulting from lower sales volume[43](index=43&type=chunk) - Medical consumables recorded a gross loss of **HKD 0.5 million**, with a gross loss margin of **45.5%**, due to provisions made for slow-moving inventories[44](index=44&type=chunk) [Other Income Analysis](index=18&type=section&id=3.2.3%20Other%20Income%20Analysis) - Other income: **HKD 2.7 million**, a year-on-year decrease of **35.7%**, primarily due to reduced miscellaneous income[45](index=45&type=chunk) [Selling and Distribution Costs](index=18&type=section&id=3.2.4%20Selling%20and%20Distribution%20Costs) - Selling and distribution costs: **HKD 3.1 million**, a year-on-year increase of **29.2%**, primarily due to increased sales volume to customers requiring delivery services[46](index=46&type=chunk) [Administrative and Other Operating Expenses](index=18&type=section&id=3.2.5%20Administrative%20and%20Other%20Operating%20Expenses) - Administrative and other operating expenses: **HKD 53.5 million**, a year-on-year increase of **3.3%**, primarily due to increased marketing expenses[47](index=47&type=chunk) [Finance Costs](index=18&type=section&id=3.2.6%20Finance%20Costs) - Finance costs: **HKD 0.8 million**, a year-on-year decrease of **46.7%**, primarily due to repayment of secured bank borrowings during the period[48](index=48&type=chunk) [Income Tax Expense/Credit](index=18&type=section&id=3.2.7%20Income%20Tax%20Expense%20Credit) - Income tax expense: **HKD 2.6 million** (2024: HKD 2.6 million credit), a year-on-year increase of **200.0%**, primarily due to an over-provision for tax in the prior period[49](index=49&type=chunk) [Loss Attributable to Owners of the Company](index=18&type=section&id=3.2.8%20Loss%20Attributable%20to%20Owners%20of%20the%20Company) - Loss attributable to owners of the Company: **HKD 11.6 million**, a year-on-year increase of **46.8%**, primarily due to the combined impact of the aforementioned financial factors[50](index=50&type=chunk) [Future Outlook and Corporate Governance](index=18&type=section&id=IV.%20Future%20Outlook%20and%20Corporate%20Governance) [Future Plans and Prospects](index=18&type=section&id=4.1%20Future%20Plans%20and%20Prospects) Facing global economic recession risks, the Group will continue to expand its customer base, target high-quality e-cigarette and injection molded product markets, strengthen core technologies through its R&D center, gradually expand its product portfolio, and enhance cost-effectiveness to navigate uncertainties - Market strategy: Targeting high-quality e-cigarette and injection molded product markets, expanding the customer base[51](index=51&type=chunk) - R&D investment: Utilizing the R&D center to strengthen core technologies and competitive advantages, supporting product portfolio expansion[51](index=51&type=chunk) - Operational optimization: Continuously improving cost-effectiveness[51](index=51&type=chunk) [Liquidity and Financial Resources](index=19&type=section&id=4.2%20Liquidity%20and%20Financial%20Resources) The Group primarily relies on internal cash flow and bank financing to fund its operations. As of June 30, 2025, cash and cash equivalents decreased, interest-bearing borrowings declined, and the gearing ratio improved - Funding sources: Internal cash flow and bank financing[52](index=52&type=chunk) Liquidity and Financial Resources (As of June 30, 2025) | Item | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Cash and cash equivalents | 118,446 | 129,454 | (11,008) | (8.50%) | | Interest-bearing borrowings | 20,714 | 31,221 | (10,507) | (33.66%) | | Weighted average effective annual interest rate | 4.27% | 3.76% | 0.51% | 13.56% | | Gearing ratio | 4.1% | 5.6% | (1.5%) | (26.79%) | [Foreign Exchange Risk](index=19&type=section&id=4.3%20Foreign%20Exchange%20Risk) The Group's monetary assets and liabilities are primarily denominated in HKD, USD, and RMB, managed by regularly reviewing net foreign exchange exposure and entering into foreign currency forward contracts when necessary, with no outstanding foreign currency forward contracts as of June 30, 2025 - Principal denominated currencies: HKD, USD, RMB[53](index=53&type=chunk) - Risk management: Regularly reviewing net foreign exchange exposure and entering into foreign currency forward contracts when necessary[53](index=53&type=chunk) - As of June 30, 2025, there were no outstanding foreign currency forward contracts[53](index=53&type=chunk) [Significant Acquisitions and Disposals](index=19&type=section&id=4.4%20Significant%20Acquisitions%20and%20Disposals) For the six months ended June 30, 2025, the Group had no significant acquisitions or disposals of subsidiaries and associates - No significant acquisitions or disposals during the reporting period[54](index=54&type=chunk) [Contingent Liabilities](index=19&type=section&id=4.5%20Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - No significant contingent liabilities at the end of the reporting period[55](index=55&type=chunk) [Pledge of Group Assets](index=19&type=section&id=4.6%20Pledge%20of%20Group%20Assets) As of June 30, 2025, certain buildings, right-of-use assets for prepaid land lease payments, and key management insurance contracts were pledged as security for bank financing - Pledged assets: Buildings, right-of-use assets for prepaid land lease payments (approximately **HKD 168.4 million**), and key management insurance contracts (approximately **HKD 4.1 million**)[56](index=56&type=chunk) - Purpose: As security for bank financing[56](index=56&type=chunk) [Events After the Reporting Period](index=19&type=section&id=4.7%20Events%20After%20the%20Reporting%20Period) No significant events occurred after June 30, 2025, that could materially affect the Group's assets and liabilities or future operations - No significant events occurred after the reporting period[57](index=57&type=chunk) [Employees and Remuneration Policy](index=20&type=section&id=4.8%20Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had **806 employees**, with a remuneration policy based on employee performance, qualifications, and operating results, and regular reviews of directors' and senior management's remuneration - Number of employees: **806**[58](index=58&type=chunk) - Remuneration policy: Based on employee performance, qualifications, and operating results, including basic salary, performance bonuses, and share options[58](index=58&type=chunk) - Remuneration for directors and senior management: Regularly reviewed, referencing market levels of comparable companies, responsibilities, and Group performance[58](index=58&type=chunk) [Share Option Scheme](index=20&type=section&id=4.9%20Share%20Option%20Scheme) The company adopted a share option scheme in 2019 to reward selected participants who contribute to the Group, with **32,020,000 share options** outstanding as of June 30, 2025 - Scheme purpose: To reward selected participants who contribute to the Group[59](index=59&type=chunk) - Eligible participants: Employees, executive directors, non-executive directors, shareholders, advisors, and consultants[59](index=59&type=chunk) Share Options Granted for the six months ended June 30, 2025 | Grantee Category | Grant Date | Exercise Price (HKD) | Share Options Outstanding as of June 30, 2025 | | :--- | :--- | :--- | :--- | | Directors, chief executives, and substantial shareholders | 2020年5月13日 | 0.355 | 14,020,000 | | Employees | 2020年5月13日 | 0.355 | 16,000,000 | | Service providers | 2020年5月13日 | 0.355 | 2,000,000 | | **Total** | | | **32,020,000** | [Significant Investments Held and Future Plans](index=21&type=section&id=4.10%20Significant%20Investments%20Held%20and%20Future%20Plans) For the six months ended June 30, 2025, the Group held no significant investments in equity of other companies and had no plans for significant investments or additions to capital assets - No significant investments during the reporting period[60](index=60&type=chunk) - No plans for significant investments or additions to capital assets[61](index=61&type=chunk) [Purchase, Redemption or Sale of the Company's Listed Securities](index=21&type=section&id=4.11%20Purchase,%20Redemption%20or%20Sale%20of%20the%20Company's%20Listed%20Securities) For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, redeemed, or sold any of its listed securities - No purchase, redemption, or sale of listed securities during the reporting period[62](index=62&type=chunk) [Corporate Governance Measures](index=21&type=section&id=4.12%20Corporate%20Governance%20Measures) The company is committed to high standards of corporate governance and has adopted the Corporate Governance Code in Appendix C1 of the Listing Rules. Although the Chairman and Chief Executive Officer roles are held by the same person, the Board believes this arrangement is in the best interests of the company and shareholders, maintaining a balance of power - Adopted the Corporate Governance Code set out in Appendix C1 of the Listing Rules[63](index=63&type=chunk) - The roles of Chairman and Chief Executive Officer are held by Mr. Chan Chan Lam, and the Board believes this arrangement is in the overall best interests of the company and shareholders, with power balanced through collective Board decisions[63](index=63&type=chunk) - Except for the above disclosure, the company has complied with the Corporate Governance Code during the reporting period[63](index=63&type=chunk) [Audit Committee](index=21&type=section&id=4.13%20Audit%20Committee) The Audit Committee, established in 2018 with three members and Mr. Ng Chi Wai as Chairman, is responsible for reviewing financial reporting, internal controls, overseeing external auditors, and providing recommendations. The Committee has reviewed the current period's financial statements - Date of establishment: **February 8, 2018**[64](index=64&type=chunk) - Members: **Three**, with Mr. Ng Chi Wai as Chairman[64](index=64&type=chunk) - Principal duties: Reviewing and monitoring financial reporting procedures and internal control systems, nominating and overseeing external auditors, and providing advice and recommendations to the Board[64](index=64&type=chunk) - Reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025[64](index=64&type=chunk) [Standard Code for Securities Transactions by Directors](index=22&type=section&id=4.14%20Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The company has adopted the Standard Code in Appendix C3 of the Listing Rules as the code of conduct for directors and senior management dealing in company securities. All directors confirmed compliance, and the company is unaware of any breaches by senior management - Adopted the Standard Code set out in Appendix C3 of the Listing Rules[65](index=65&type=chunk) - All directors confirmed compliance with the Standard Code[65](index=65&type=chunk) - The company is unaware of any breaches of the Standard Code by senior management[65](index=65&type=chunk) [Interim Dividend](index=22&type=section&id=4.15%20Interim%20Dividend) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025, consistent with the prior period - No interim dividend is recommended for the six months ended June 30, 2025[66](index=66&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=22&type=section&id=4.16%20Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) The Group's interim results announcement for the six months ended June 30, 2025, has been published on the Stock Exchange's website and the company's website, and the interim report will be dispatched to shareholders and published on the website in due course - Interim results announcement has been published on the Stock Exchange's website and the company's website[67](index=67&type=chunk) - Interim report will be dispatched to shareholders and published on the website in due course[67](index=67&type=chunk)

[Report Cover and Overview](index=1&type=section&id=Report%20Cover%20and%20Overview) This section provides an overview of the company, its global infrastructure business, and a summary of its half-year financial performance [Report Cover](index=1&type=section&id=Report%20Cover) The report cover displays the company name, stock codes, and highlights its global infrastructure business - Company Name: **CK Infrastructure Holdings Limited** 长江基建集团有限公司[2](index=2&type=chunk) - Stock Codes: **HKEX: 1038 / LSE: CKI**[2](index=2&type=chunk) - Report Type: **Interim Report 2025**[2](index=2&type=chunk) [Company Overview and Half-Year Performance at a Glance](index=2&type=section&id=Company%20Overview%20and%20Half-Year%20Performance%20at%20a%20Glance) CK Infrastructure is a leading global infrastructure group with diversified businesses across energy, transportation, and water, operating in multiple countries. In H1 2025, the company achieved a profit attributable to shareholders of HKD 4.348 billion - CK Infrastructure is one of the largest global infrastructure groups, with diversified businesses including energy, transportation, water treatment, and waste management[3](index=3&type=chunk)[6](index=6&type=chunk) - Investments and operations span Hong Kong, Mainland China, the UK, Continental Europe, Australia, New Zealand, Canada, and the US[3](index=3&type=chunk)[7](index=7&type=chunk) 2025 Half-Year Performance Overview | Indicator | Amount (HKD) | | :--- | :--- | | Profit attributable to shareholders | 4,348 million | | Earnings per share | 1.73 | | Interim dividend per share | 0.73 | [Table of Contents](index=3&type=section&id=Table%20of%20Contents) This section lists the structured table of contents for the interim report, covering the Chairman's Statement, Financial Review, Directors' Biographical Details, Consolidated Financial Statements, Notes to Financial Statements, Directors' and Major Shareholders' Interests, Corporate Governance, Other Information, and Risk Factors - The report's table of contents includes the Chairman's Statement, Financial Review, Directors' Biographical Details, Consolidated Statement of Profit or Loss, Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Consolidated Statement of Changes in Equity, Condensed Consolidated Statement of Cash Flows, Notes to the Condensed Consolidated Interim Financial Statements, Statement of Directors' Responsibilities, Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures, Shareholders' Interests and Short Positions, Corporate Governance, Other Information, and Risk Factors[9](index=9&type=chunk) [Company Information and Important Dates](index=4&type=section&id=Company%20Information%20and%20Important%20Dates) This section provides essential company information, including board members, committee compositions, company secretary, principal bankers, brokers, auditors, legal advisors, registered office, principal place of business, share registrar, stock codes, and key dates such as the interim dividend payment date - Board members include Chairman **Victor T K Li**, Group Managing Director **Kam Hing Lam**, Deputy Chairman **H Y Yeh**, and **Canning Fok**, with Audit, Remuneration, Nomination, and Sustainability Committees established[10](index=10&type=chunk) - The company's registered office is in Bermuda, with its principal place of business in Cheung Kong Center, Hong Kong[12](index=12&type=chunk) - Stock codes are **HKEX: 1038** and **LSE: CKI**[12](index=12&type=chunk) 2025 Important Dates | Event | Date | | :--- | :--- | | Announcement of Interim Results | August 13, 2025 | | Interim Dividend Record Date | September 11, 2025 | | Interim Dividend Payment | September 24, 2025 | [Chairman's Statement](index=6&type=section&id=Chairman's%20Statement) This statement provides an overview of the Group's performance, strategic direction, and outlook amidst global economic and geopolitical uncertainties [Overall Performance and Dividends](index=6&type=section&id=Overall%20Performance%20and%20Dividends) Despite geopolitical and economic uncertainties, CK Infrastructure demonstrated stable performance in H1 2025, with profit attributable to shareholders increasing by 1% year-on-year, and an interim dividend per share declared at HKD 0.73, up 1.4% - In H1 2025, the Group delivered **stable performance** despite market uncertainties from volatile political situations, complex interest rate outlooks, trade barriers, and inflationary pressures[14](index=14&type=chunk) 2025 Half-Year Financial Performance and Dividends | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Profit attributable to shareholders | HKD 4.348 billion | HKD 4.311 billion | Increased by 1% | | Interim dividend per share | HKD 0.73 | HKD 0.72 | Increased by 1.4% | [Business Review](index=6&type=section&id=Business%20Review) This section reviews CK Infrastructure's performance across various regions and business segments, including Power Assets, the UK, Australia, Continental Europe, Canada, New Zealand, and Hong Kong and Mainland China infrastructure businesses, noting strong UK performance and declines in Australia and Canada due to exchange rates and contract expirations - **UK infrastructure business** profit contribution significantly **increased by 19%** (17% in local currency), driven by higher contributions from Northumbrian Water, three gas distribution networks, and UK Power Networks[17](index=17&type=chunk) - **Australian infrastructure business** profit contribution **decreased by 8%** (5% in local currency), primarily due to a weaker exchange rate, expiration of several profitable Energy Developments contracts, and low market electricity prices[21](index=21&type=chunk) - **Canadian business** profit contribution **decreased by 9%** (5% in local currency), mainly due to lower power generation and electricity prices from Canadian Power in Alberta[25](index=25&type=chunk) [Power Assets Holdings Limited](index=6&type=section&id=Power%20Assets%20Holdings%20Limited) Power Assets contributed HKD 1.095 billion in profit to the Group, an increase of 1% year-on-year, with its international businesses and Hongkong Electric maintaining stable operations Power Assets Profit Contribution | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Profit Contribution | HKD 1.095 billion | HKD 1.082 billion | Increased by 1% | - Its international businesses and Hongkong Electric maintained **stable operational performance**[16](index=16&type=chunk) [UK Infrastructure Business](index=7&type=section&id=UK%20Infrastructure%20Business) UK business profit contribution significantly increased by 19%, driven by enhanced contributions from Northumbrian Water, three gas distribution networks, and UK Power Networks, with UKPN and Northumbrian Water receiving industry accolades and strong operational performance UK Infrastructure Business Profit Contribution | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Profit Contribution | HKD 2.223 billion | HKD 1.865 billion | Increased by 19% (17% in local currency) | - **UK Power Networks (UKPN)** recorded **ideal earnings growth**, with strong performance in both regulated and non-regulated businesses, and received awards such as "Data Centre Energy Solution of the Year"[17](index=17&type=chunk) - **Northumbrian Water (NWG)** profit contribution increased, primarily benefiting from higher returns due to the rising capital value from inflation, with plans to invest approximately **GBP 6 billion** over the next five years[19](index=19&type=chunk) - Three gas distribution networks (NGN, WWU, Phoenix Energy) showed **strong operational performance**, and NGN and WWU received draft proposals for increased allowed returns in the new regulatory period[18](index=18&type=chunk) [Australia Infrastructure Business](index=8&type=section&id=Australia%20Infrastructure%20Business) Australian infrastructure business profit contribution decreased by 8%, mainly due to a weaker exchange rate, the expiration of several profitable Energy Developments contracts, and low market electricity prices, while SA Power Networks commenced a new regulatory period with increased allowed returns and asset base Australia Infrastructure Business Profit Contribution | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Profit Contribution | HKD 793 million | HKD 864 million | Decreased by 8% (5% in local currency) | - **Energy Developments (EDL)** performance was affected by several profitable contracts expiring and weak market electricity prices[23](index=23&type=chunk) - **SA Power Networks (SAPN)** commenced a new regulatory period on July 1, 2025, with **increased allowed returns and asset base**[21](index=21&type=chunk) - Victoria Power Networks (VPN)'s non-regulated business, Beon, completed its solar farm project[22](index=22&type=chunk) [Continental Europe Infrastructure Business](index=9&type=section&id=Continental%20Europe%20Infrastructure%20Business) Continental Europe business profit contribution increased by 3%, with ista recording strong performance and acquiring a meter installation company, and Dutch Enviro Energy's waste-to-energy facility reconstruction progressing well Continental Europe Infrastructure Business Profit Contribution | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Profit Contribution | HKD 432 million | HKD 419 million | Increased by 3% (broadly similar in local currency) | - **ista** recorded **strong performance** and acquired a meter installation company to enhance installation capabilities and EV charging services[24](index=24&type=chunk) - Dutch Enviro Energy's waste-to-energy facility's first phase of reconstruction is complete, with all seven incineration units back in operation[24](index=24&type=chunk) [Canada Infrastructure Business](index=9&type=section&id=Canada%20Infrastructure%20Business) Canadian business profit contribution decreased by 9%, primarily due to lower power generation and electricity prices from Canadian Power in Alberta, while Reliance Home Comfort achieved ideal growth and completed two US home services acquisitions Canada Infrastructure Business Profit Contribution | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Profit Contribution | HKD 275 million | HKD 301 million | Decreased by 9% (5% in local currency) | - **Canadian Power's** facilities in Alberta were negatively impacted by **decreased power generation and electricity prices**[25](index=25&type=chunk) - **Reliance Home Comfort** achieved **ideal growth** and completed two acquisitions in the US home services industry, executing its US business expansion strategy[25](index=25&type=chunk) [New Zealand Infrastructure Business](index=10&type=section&id=New%20Zealand%20Infrastructure%20Business) New Zealand business profit contribution remained similar to the prior period, with Enviro NZ showing strong performance and securing multiple contracts, and Wellington Electricity approved for increased allowed returns and significant capital investment New Zealand Infrastructure Business Profit Contribution | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Profit Contribution | HKD 80 million | HKD 80 million | Similar (4% growth in local currency) | - **Enviro NZ** recorded **strong performance**, successfully securing multiple contracts, including a ten-year waste collection service contract renewal with Taupo District Council[26](index=26&type=chunk) - **Wellington Electricity** commenced a new regulatory period on April 1, 2025, with **approved increased allowed returns and significant capital investment**[26](index=26&type=chunk) [Hong Kong and Mainland China Business](index=10&type=section&id=Hong%20Kong%20and%20Mainland%20China%20Business) Hong Kong and Mainland China business portfolio profit contribution slightly increased by 2%, with Mainland China transportation projects performing steadily and infrastructure materials manufacturing business remaining similar to the prior period Hong Kong and Mainland China Business Profit Contribution | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Profit Contribution | HKD 98 million | HKD 96 million | Slightly increased by 2% | - Mainland China's transportation projects performed **steadily**, while the infrastructure materials manufacturing business remained **similar to the prior period**[27](index=27&type=chunk) [Financial Strength and Sustainability](index=10&type=section&id=Financial%20Strength%20and%20Sustainability) CK Infrastructure maintains a robust financial foundation with HKD 4.7 billion in cash and a stable net debt-to-total capital ratio of 10.6%, while continuously expanding sustainability projects in its UK and Australian distribution networks - The Group's financial foundation remains **strong**, holding **HKD 4.7 billion in cash** as of June 30, 2025[28](index=28&type=chunk) Gearing Ratio as of June 30, 2025 | Indicator | Ratio | | :--- | :--- | | Net debt to total capital ratio | 10.6% | | Net debt to total capital ratio (on a look-through basis including infrastructure investment portfolio) | 48.7% | - The Group continues to be assigned an **"A/Stable" credit rating** by Standard & Poor's[29](index=29&type=chunk) - The Group's distribution networks in the UK and Australia continue to expand **sustainability projects**, including smart grid solutions, EV charging infrastructure, and integrated renewable energy systems[31](index=31&type=chunk) - Canadian Power's Okanagan wind power project, UK Renewables Energy's wind farms, UK Power Networks Services, and the Australian non-regulated business's solar portfolio, as well as Hongkong Electric's gas-fired generating units, are also progressing well[31](index=31&type=chunk) [Outlook](index=11&type=section&id=Outlook) Facing global geopolitical tensions and economic uncertainties, CK Infrastructure demonstrates resilience with strong recurring income and predictable cash flows, continuing to seek growth and expansion opportunities through internal growth and acquisitions while balancing prudence and growth - Global geopolitical tensions and economic uncertainties persist, but **growth and expansion opportunities remain** available[33](index=33&type=chunk)[34](index=34&type=chunk) - CK Infrastructure has once again demonstrated **resilience** with its strong recurring income sources and predictable cash flows[33](index=33&type=chunk) - The Group will leverage its **strong financial position** and extensive track record of success to capitalize on competitive advantages and acquisition opportunities arising from infrastructure modernization needs[34](index=34&type=chunk) - While actively expanding, the Group consistently strives for a **balance between prudence and growth**, avoiding a "must-win" mentality in acquisition processes[34](index=34&type=chunk) [Financial Review](index=13&type=section&id=Financial%20Review) This section details the Group's financial resources, treasury arrangements, gearing ratio, asset pledges, contingent liabilities, and employee information [Financial Resources, Treasury Arrangements and Gearing Ratio](index=13&type=section&id=Financial%20Resources,%20Treasury%20Arrangements%20and%20Gearing%20Ratio) The Group's capital commitments and investment projects are funded by cash on hand, internal cash generation, and various loans. As of June 30, 2025, total cash and deposits were HKD 4.721 billion, and total loans were HKD 20.706 billion, resulting in a net debt-to-total capital ratio of 10.6%, or 48.7% on a look-through basis - The Group's capital commitments and investment projects are funded by its **cash on hand, internal cash generation, loans, notes, bonds, share placements, and other project loans**[36](index=36&type=chunk) Financial Resources as of June 30, 2025 | Indicator | Amount (HKD) | | :--- | :--- | | Total cash and deposits | 4.721 billion | | Total loans | 20.706 billion | | Net debt to total capital ratio | 10.6% | | Net debt to total capital ratio (on a look-through basis) | 48.7% | - The Group adopts a **prudent treasury policy** for cash and financial management, utilizing currency and interest rate swap contracts to manage exchange rate and interest rate risks[36](index=36&type=chunk)[38](index=38&type=chunk) [Details of Group's Assets Pledged](index=14&type=section&id=Details%20of%20Group's%20Assets%20Pledged) As of June 30, 2025, certain Group assets were pledged to secure bank loans totaling HKD 1.492 billion Assets Pledged as of June 30, 2025 | Purpose of Pledge | Amount (HKD) | | :--- | :--- | | Bank loans | 1.492 billion | [Contingent Liabilities](index=14&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group's total contingent liabilities amounted to HKD 169 million, primarily comprising performance guarantees and subcontractor guarantees Contingent Liabilities as of June 30, 2025 | Item | Amount (HKD) | | :--- | :--- | | Performance guarantees | 145 million | | Subcontractor guarantees | 24 million | | **Total** | **169 million** | [Employees](index=14&type=section&id=Employees) Excluding associated companies, the Group employed 2,277 staff, with employee expenses (excluding directors' emoluments) totaling HKD 510 million. The Group ensures competitive remuneration based on performance and qualifications - The Group (excluding associated companies) employed a total of **2,277 staff**[41](index=41&type=chunk) 2025 Half-Year Employee Expenses | Item | Amount (HKD) | | :--- | :--- | | Employee expenses (excluding directors' emoluments) | 510 million | - The Group ensures **competitive employee remuneration** and has no employee share option scheme[41](index=41&type=chunk) [Biographical Details of Directors](index=15&type=section&id=Biographical%20Details%20of%20Directors) This section provides detailed biographical information for CK Infrastructure's board members, including their age, positions, tenure, roles in other listed companies, educational backgrounds, and relationships with major shareholders - **Mr. Victor T K Li** serves as Chairman and is also Chairman or Executive Director of CK Hutchison, CK Asset, and other companies, holding Bachelor's and Master's degrees in Civil Engineering and an honorary Doctor of Laws degree[42](index=42&type=chunk) - **Mr. Kam Hing Lam** serves as Group Managing Director and is also Deputy Managing Director or President of CK Hutchison, CK Asset, and other companies, holding a Bachelor's degree in Engineering and an MBA[43](index=43&type=chunk) - The Board comprises **15 directors**, including 8 Executive Directors, 2 Non-executive Directors, and 5 Independent Non-executive Directors, with 2 alternate directors[105](index=105&type=chunk) - Several directors possess extensive experience in accounting, financial management, and law, holding significant positions in multiple listed companies[45](index=45&type=chunk)[46](index=46&type=chunk)[48](index=48&type=chunk) [Financial Statements](index=26&type=section&id=Financial%20Statements) This section presents the Group's consolidated financial statements, including the statement of profit or loss, comprehensive income, financial position, changes in equity, and cash flows for the period [Consolidated Statement of Profit or Loss](index=26&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the Group's turnover was HKD 20.359 billion, a 6.6% increase year-on-year. Profit for the period was HKD 4.565 billion, up 0.9%, with profit attributable to shareholders at HKD 4.348 billion and earnings per share of HKD 1.73 Key Data from Consolidated Statement of Profit or Loss (For the six months ended June 30) | Indicator | 2025 (HKD million) | 2024 (HKD million) | YoY Change | | :--- | :--- | :--- | :--- | | Turnover | 20,359 | 19,090 | +6.6% | | Sales and interest income from infrastructure investments | 2,209 | 2,478 | -10.8% | | Other income | 182 | 347 | -47.5% | | Operating costs | (1,827) | (1,918) | -4.7% | | Finance costs | (432) | (415) | +4.1% | | Exchange gain | 71 | 108 | -34.3% | | Share of results of associates | 1,382 | 1,351 | +2.3% | | Share of results of joint ventures | 3,034 | 2,626 | +15.5% | | Profit before tax | 4,619 | 4,577 | +0.9% | | Taxation | (54) | (53) | +1.9% | | Profit for the period | 4,565 | 4,524 | +0.9% | | Attributable to shareholders of the Company | 4,348 | 4,311 | +0.9% | | Earnings per share | HKD 1.73 | HKD 1.71 | +1.2% | [Consolidated Statement of Comprehensive Income](index=27&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's total comprehensive income for the period significantly increased to HKD 8.898 billion from HKD 2.966 billion in the prior period, primarily due to a favorable shift from exchange loss to gain on translation of financial statements of overseas operations Key Data from Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (HKD million) | 2024 (HKD million) | | :--- | :--- | :--- | | Profit for the period | 4,565 | 4,524 | | Loss from fair value changes of derivative financial instruments designated as effective cash flow hedges | (48) | (15) | | (Loss) / gain from fair value changes of derivative financial instruments designated as effective net investment hedges | (3,702) | 617 | | Exchange differences on translation of financial statements of overseas operations | 7,041 | (1,339) | | Share of other comprehensive income of associates | 850 | 16 | | Share of other comprehensive (expense) / income of joint ventures | (229) | 425 | | Related income tax on components of other comprehensive income | 199 | (158) | | Other comprehensive income / (expense) for the period | 4,333 | (1,558) | | **Total comprehensive income for the period** | **8,898** | **2,966** | | Attributable to shareholders of the Company | 8,678 | 2,755 | - **Exchange differences on translation of financial statements of overseas operations** shifted from a loss of HKD 1.339 billion in 2024 to a gain of **HKD 7.041 billion** in 2025, which is the primary reason for the significant increase in total comprehensive income[59](index=59&type=chunk) [Consolidated Statement of Financial Position](index=28&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets less current liabilities increased to HKD 156.676 billion from HKD 146.639 billion at the end of 2024. Net assets increased to HKD 135.235 billion from HKD 131.243 billion at the end of 2024 Key Data from Consolidated Statement of Financial Position (As of June 30) | Indicator | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | | :--- | :--- | :--- | | Total non-current assets | 159,050 | 148,365 | | Total current assets | 5,572 | 9,472 | | Total current liabilities | 7,946 | 11,198 | | Net current liabilities | (2,374) | (1,726) | | Total assets less current liabilities | 156,676 | 146,639 | | Total non-current liabilities | 21,441 | 15,396 | | **Net assets** | **135,235** | **131,243** | | Equity attributable to shareholders of the Company | 125,271 | 121,280 | | Total equity | 135,235 | 131,243 | - Interests in associates and interests in joint ventures are the **primary components of the Group's non-current assets**, reaching **HKD 39 billion** and **HKD 112.04 billion**, respectively[60](index=60&type=chunk) - Non-current liabilities for bank and other loans increased from HKD 14.639 billion at the end of 2024 to **HKD 20.195 billion** as of June 30, 2025[60](index=60&type=chunk) [Consolidated Statement of Changes in Equity](index=29&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, equity attributable to shareholders of the Company increased from HKD 121.28 billion at the beginning of the year to HKD 125.271 billion. Total comprehensive income for the period was HKD 8.898 billion, but equity was reduced by dividends paid and distributions to perpetual capital securities Key Data from Consolidated Statement of Changes in Equity (For the six months ended June 30) | Indicator | 2025 (HKD million) | 2024 (HKD million) | | :--- | :--- | :--- | | Equity attributable to shareholders of the Company at January 1 | 121,280 | 123,293 | | Profit for the period | 4,348 | 4,311 | | Total comprehensive income for the period (attributable to shareholders of the Company) | 8,678 | 2,755 | | Dividends paid | (4,687) | (4,661) | | Distributions to perpetual capital securities | (219) | (219) | | Equity attributable to shareholders of the Company at June 30 | 125,271 | 121,387 | - The **exchange reserve** improved significantly from a negative HKD 9.789 billion to a negative **HKD 5.223 billion** in H1 2025, reflecting a substantial improvement in exchange differences arising from the translation of financial statements of overseas operations[61](index=61&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=31&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, the Group's cash and cash equivalents decreased by HKD 3.384 billion. Net cash from operating activities was HKD 586 million, net cash from investing activities was HKD 920 million, and net cash from financing activities was a negative HKD 4.89 billion Key Data from Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Indicator | 2025 (HKD million) | 2024 (HKD million) | | :--- | :--- | :--- | | Net cash from operating activities | 586 | 641 | | Net cash from investing activities | 920 | 443 | | Net cash used in financing activities | (4,890) | (4,981) | | Net decrease in cash and cash equivalents | (3,384) | (3,897) | | Cash and cash equivalents at January 1 | 8,105 | 13,077 | | Cash and cash equivalents at June 30 | 4,721 | 9,180 | - **Net cash outflow from financing activities** was the primary reason for the decrease in cash and cash equivalents, mainly due to the payment of dividends and distributions to perpetual capital securities[61](index=61&type=chunk)[63](index=63&type=chunk) [Notes to the Condensed Consolidated Interim Financial Statements](index=32&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) This section provides detailed notes explaining the basis of preparation, turnover, other income, operating costs, taxation, profit for the period, segment information, earnings per share, interim dividend, receivables, payables, share capital, cash flow notes, fair value measurement of financial instruments, commitments, contingent liabilities, comparative figures, and review of the interim financial statements [Basis of Preparation](index=32&type=section&id=Basis%20of%20Preparation) These condensed consolidated interim financial statements are prepared in accordance with relevant standards issued by the Hong Kong Institute of Certified Public Accountants and the International Accounting Standards Board, and the disclosure requirements of the Hong Kong Stock Exchange Listing Rules. The accounting policies adopted are consistent with the 2024 consolidated financial statements, and newly adopted amended standards have no significant impact on current period results or financial position - The statements are prepared in accordance with **Hong Kong Accounting Standard 34** and **International Accounting Standard 34**, as well as the disclosure requirements of the Hong Kong Stock Exchange Listing Rules[64](index=64&type=chunk) - The accounting policies adopted are **consistent** with those used in the consolidated financial statements for the year ended December 31, 2024[64](index=64&type=chunk) - Newly adopted amended Hong Kong Financial Reporting Standards and International Financial Reporting Standards will **not have a significant impact** on the Group's results or financial position for the current or prior periods[64](index=64&type=chunk) [Turnover](index=33&type=section&id=Turnover) Turnover primarily comprises sales of infrastructure materials, interest income from loans to associates and joint ventures, sales of waste management services, and share of turnover of joint ventures. In H1 2025, turnover was HKD 20.359 billion, an increase from HKD 19.09 billion in H1 2024 - Turnover refers to **sales of infrastructure materials, interest income from loans to associates and joint ventures, sales of waste management services, and share of turnover of joint ventures**[65](index=65&type=chunk) Turnover Composition (For the six months ended June 30) | Item | 2025 (HKD million) | 2024 (HKD million) | | :--- | :--- | :--- | | Sales of infrastructure materials | 722 | 751 | | Interest income from loans to associates | 37 | 52 | | Interest income from loans to joint ventures | 515 | 698 | | Sales of waste management services | 935 | 977 | | Sales and interest income from infrastructure investments | 2,209 | 2,478 | | Share of turnover of joint ventures | 18,150 | 16,612 | | **Turnover** | **20,359** | **19,090** | [Other Income](index=34&type=section&id=Other%20Income) Other income for H1 2025 was HKD 182 million, primarily consisting of bank interest income, a decrease from HKD 347 million in H1 2024 Other Income Composition (For the six months ended June 30) | Item | 2025 (HKD million) | 2024 (HKD million) | | :--- | :--- | :--- | | Bank interest income | 152 | 303 | [Operating Costs](index=34&type=section&id=Operating%20Costs) Operating costs for H1 2025 were HKD 1.827 billion, a decrease from HKD 1.918 billion in H1 2024, with major components including cost of inventories sold, cost of services provided, depreciation of property, plant and equipment, and amortization of intangible assets Operating Costs Composition (For the six months ended June 30) | Item | 2025 (HKD million) | 2024 (HKD million) | | :--- | :--- | :--- | | Cost of inventories sold | 629 | 702 | | Cost of services provided | 395 | 425 | | Depreciation of property, plant and equipment | 148 | 149 | | Amortization of intangible assets | 8 | 9 | [Taxation](index=35&type=section&id=Taxation) Total taxation for H1 2025 was HKD 54 million, similar to HKD 53 million in H1 2024, primarily comprising overseas taxation and deferred tax - Taxation is provided based on estimated assessable profits after deducting available tax losses, calculated at applicable tax rates[69](index=69&type=chunk) Taxation Composition (For the six months ended June 30) | Item | 2025 (HKD million) | 2024 (HKD million) | | :--- | :--- | :--- | | Current – Hong Kong | 1 | 1 | | Current – Outside Hong Kong | 37 | 33 | | Deferred tax | 16 | 19 | | **Total** | **54** | **53** | [Profit for the Period and Segment Information](index=36&type=section&id=Profit%20for%20the%20Period%20and%20Segment%20Information) The Group's profit for the period was HKD 4.565 billion, with HKD 4.348 billion attributable to shareholders of the Company. Segment information shows the UK business contributed the most profit at HKD 2.223 billion, followed by Power Assets and Australian businesses - Segment profit attributable to shareholders of the Company represents the profit earned by the Group in each segment after deducting profit attributable to holders of perpetual capital securities and non-controlling interests, excluding profit or loss from Group head office treasury activities, administration, and other expenses[74](index=74&type=chunk) 2025 Half-Year Profit Contribution by Business Segment (HKD million) | Business Segment | 2025 | 2024 | | :--- | :--- | :--- | | Power Assets Holdings Limited | 1,095 | 1,082 | | United Kingdom | 2,223 | 1,865 | | Australia | 793 | 864 | | Continental Europe | 432 | 419 | | Hong Kong and Mainland China | 98 | 90 | | Canada | 275 | 301 | | New Zealand | 80 | 80 | | **Total Profit Attributable to Shareholders of the Company** | **4,348** | **4,311** | [Earnings Per Share](index=37&type=section&id=Earnings%20Per%20Share) Earnings per share for H1 2025 was HKD 1.73, an increase from HKD 1.71 in H1 2024 Earnings Per Share (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Earnings per share | HKD 1.73 | HKD 1.71 | - Earnings per share is calculated based on the profit attributable to shareholders of the Company and **2,519,610,945 shares** in issue during the period[75](index=75&type=chunk) [Interim Dividend](index=37&type=section&id=Interim%20Dividend) The Board declared an interim dividend of HKD 0.73 per share for 2025, totaling HKD 1.839 billion, an increase from HKD 0.72 per share in 2024 Interim Dividend (For the six months ended June 30) | Indicator | 2025 (HKD million) | 2024 (HKD million) | | :--- | :--- | :--- | | Interim dividend of HKD 0.73 per share (2024: HKD 0.72 per share) | 1,839 | 1,814 | [Trade and Other Receivables](index=38&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables (net of loss allowance) were HKD 237 million, a slight decrease from HKD 250 million as of December 31, 2024. Most trade receivables are aged within one month Ageing Analysis of Trade Receivables (HKD million) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 month | 196 | 189 | | 1 to 3 months | 35 | 42 | | 3 to 12 months | 8 | 20 | | Over 12 months | 10 | 8 | | **Total** | **249** | **259** | | Loss allowance | (12) | (9) | | **Total after allowance** | **237** | **250** | - The Group's transactions with customers are primarily on credit, with payments generally due within **one month** of invoice date[77](index=77&type=chunk) [Trade and Other Payables](index=39&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, total trade payables were HKD 237 million, largely consistent with HKD 236 million as of December 31, 2024. Most trade payables are current or due within one month Ageing Analysis of Trade Payables (HKD million) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current | 116 | 132 | | 1 month | 59 | 56 | | 2 to 3 months | 29 | 15 | | Over 3 months | 33 | 33 | | **Total** | **237** | **236** | [Share Capital](index=39&type=section&id=Share%20Capital) There was no change in the Company's share capital during the six months ended June 30, 2025 - The Company's share capital remained **unchanged** during the six months ended June 30, 2025[79](index=79&type=chunk) [Notes to the Condensed Consolidated Cash Flow Statement](index=40&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Cash%20Flow%20Statement) In H1 2025, net cash from operating activities was HKD 586 million, and net cash from investing activities was HKD 920 million. Cash flow from operations (including net cash from operating activities and dividends received from associates and joint ventures) totaled HKD 3.184 billion Key Cash Flow Data (For the six months ended June 30) | Item | 2025 (HKD million) | 2024 (HKD million) | | :--- | :--- | :--- | | Net cash from operating activities | 586 | 641 | | Dividends received from associates | 1,648 | 1,566 | | Dividends received from joint ventures | 950 | 1,126 | | **Cash flow from operations** | **3,184** | **3,333** | | Investment in joint ventures | (93) | (1,377) | [Financial Instruments Measured at Fair Value](index=40&type=section&id=Financial%20Instruments%20Measured%20at%20Fair%20Value) The carrying amounts of the Group's financial assets and liabilities approximate their fair values. The fair values of investment properties, unlisted investment securities, and other investments are measured based on valuation inputs that are directly or indirectly observable or unobservable market data - The carrying amounts of the Group's financial assets and financial liabilities **approximate their fair values**[82](index=82&type=chunk) - The fair values of investment properties, unlisted investment securities, and other investments are measured based on valuation inputs that are **directly or indirectly observable or unobservable market data**[83](index=83&type=chunk) [Commitments](index=41&type=section&id=Commitments) As of June 30, 2025, the Group's total capital commitments, unfulfilled and not provided for in the condensed consolidated interim financial statements, amounted to HKD 254 million, primarily for plant and machinery Capital Commitments (HKD million) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Plant and machinery | 193 | 198 | | Buildings | 2 | - | | Other financial assets | 59 | 91 | | **Total** | **254** | **289** | [Contingent Liabilities](index=42&type=section&id=Contingent%20Liabilities_2) As of June 30, 2025, the Group's total contingent liabilities amounted to HKD 169 million, primarily comprising performance guarantees and subcontractor guarantees Contingent Liabilities (HKD million) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Performance guarantees | 145 | 144 | | Subcontractor guarantees | 24 | 24 | | **Total** | **169** | **168** | [Comparative Figures](index=42&type=section&id=Comparative%20Figures) Certain comparative figures have been reclassified to conform with the current period's presentation - Certain comparative figures have been **reclassified** to conform with the current period's presentation[86](index=86&type=chunk) [Review of Condensed Consolidated Interim Financial Statements](index=42&type=section&id=Review%20of%20Condensed%20Consolidated%20Interim%20Financial%20Statements) These condensed consolidated interim financial statements are unaudited but have been reviewed by the Audit Committee - These condensed consolidated interim financial statements are **unaudited** but have been **reviewed by the Audit Committee**[87](index=87&type=chunk) [Statement of Directors' Responsibilities](index=43&type=section&id=Statement%20of%20Directors'%20Responsibilities) The Board confirms that the financial statements are prepared in accordance with relevant accounting standards, provide a true and fair view, and contain information on significant events, principal risks, and related party transactions as required by the UK Financial Conduct Authority's disclosure guidance and transparency rules - The Board confirms that the financial statements have been prepared in accordance with standards issued by the Hong Kong Institute of Certified Public Accountants and the International Accounting Standards Board, and the Hong Kong Stock Exchange Listing Rules, providing a **true and fair view**[89](index=89&type=chunk) - This interim report contains information on **significant events, principal risks, and uncertainties** as required by the UK Financial Conduct Authority's disclosure guidance and transparency rules[89](index=89&type=chunk) - The report also discloses **related party transactions** that occurred in the first six months of the financial year ending December 31, 2025, and had a significant impact on the Group's financial position or performance[89](index=89&type=chunk) [Directors' and Major Shareholders' Interests](index=44&type=section&id=Directors'%20and%20Major%20Shareholders'%20Interests) This section details the interests and short positions of the Company's directors and chief executive, as well as major shareholders, in the shares, underlying shares, and debentures of the Company and its associated corporations [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures](index=44&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures) As of June 30, 2025, the Company's directors and chief executive held interests or short positions in the shares, underlying shares, and debentures of the Company and its associated corporations. Mr. Victor T K Li held approximately 0.22% equity interest in the Company and significant interests in CK Hutchison, Power Assets, and other companies - As of June 30, 2025, the Company's directors and chief executive held **interests or short positions** in the shares, underlying shares, and debentures of the Company or any of its associated corporations[90](index=90&type=chunk) Directors' Long Positions in Company Shares (As of June 30, 2025) | Director Name | Capacity | Total Number of Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Victor T K Li | Interests of child or spouse and beneficiary of a trust | 5,655,000 | 0.22% | | Kam Hing Lam | Beneficial owner | 100,000 | 0.003% | - **Mr. Victor T K Li** is deemed to be interested in the Company's shares held by TUT1 as trustee of UT1, through his capacity as a beneficiary of a trust[95](index=95&type=chunk) - **Mr. Canning Fok** and **Mr. Frank John Sixt** accepted the offer for their shares in Hutchison Telecommunications (Australia) Limited and ceased to hold relevant interests from July 9, 2025[92](index=92&type=chunk) [Shareholders' Interests and Short Positions](index=50&type=section&id=Shareholders'%20Interests%20and%20Short%20Positions) As of June 30, 2025, major shareholders, including Hutchison Infrastructure Holdings Limited and its controlled corporations (such as Aspire Rich Limited, Robust Faith Limited, CK Hutchison Capital Securities (2) Limited, CK Hutchison Capital Securities (3) Limited, CK Hutchison Global Investments Limited, and CK Hutchison Holdings Limited), held approximately 75.67% long positions in the Company's shares - As of June 30, 2025, **Hutchison Infrastructure Holdings Limited** and its controlled corporations held interests or short positions in the Company's shares or underlying shares[101](index=101&type=chunk) Major Shareholders' Long Positions in Company Shares (As of June 30, 2025) | Name | Capacity | Number of Ordinary Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Hutchison Infrastructure Holdings Limited | Beneficial owner | 1,906,681,945 | 75.67% | | Aspire Rich Limited | Interest of controlled corporation | 1,906,681,945 | 75.67% | | Robust Faith Limited | Interest of controlled corporation | 1,906,681,945 | 75.67% | | CK Hutchison Capital Securities (2) Limited | Interest of controlled corporation | 1,906,681,945 | 75.67% | | CK Hutchison Capital Securities (3) Limited | Interest of controlled corporation | 1,906,681,945 | 75.67% | | CK Hutchison Global Investments Limited | Interest of controlled corporation | 1,906,681,945 | 75.67% | | CK Hutchison Holdings Limited | Interest of controlled corporation | 1,906,681,945 | 75.67% | - These companies are deemed to hold the same number of share interests through **tiered control relationships**[103](index=103&type=chunk) [Corporate Governance](index=52&type=section&id=Corporate%20Governance) This section outlines the Group's commitment to maintaining robust corporate governance practices, including board composition, securities trading codes, risk management, internal controls, and the roles of its various committees [Corporate Governance Overview](index=52&type=section&id=Corporate%20Governance%20Overview) CK Infrastructure is committed to maintaining sound corporate governance practices and procedures, complying with the Corporate Governance Code in Appendix C1 of the Hong Kong Listing Rules, and has adopted various policies to ensure effective management, a sound corporate culture, and enhanced shareholder value - The Company has applied the principles of the Corporate Governance Code in Appendix C1 of the Hong Kong Listing Rules and has **complied with all code provisions and recommended best practices**[104](index=104&type=chunk) - The Group has adopted and regularly reviews its comprehensive corporate governance policies, such as the **"Anti-Fraud and Anti-Bribery Policy," "Anti-Money Laundering Policy," and "Employee Code of Conduct"**[104](index=104&type=chunk) - Internal and external auditors, along with other professional advisors, are **important pillars** in maintaining the Group's accountability[104](index=104&type=chunk) [Board Composition and Practices](index=53&type=section&id=Board%20Composition%20and%20Practices) The Board comprises 15 directors, including 8 Executive Directors, 2 Non-executive Directors, and 5 Independent Non-executive Directors, ensuring diversity and independence. The roles of Chairman and Group Managing Director are separate, with the Chairman responsible for overall strategic direction and the Group Managing Director for daily management and operations - The Board comprises **15 directors**, including 8 Executive Directors, 2 Non-executive Directors, and 5 Independent Non-executive Directors, with 2 alternate directors[105](index=105&type=chunk) - **One-third of the Board members are Independent Non-executive Directors**, and more than one Independent Non-executive Director possesses appropriate professional qualifications or financial management expertise[105](index=105&type=chunk) - The roles of Chairman and Group Managing Director are held by **different individuals**, ensuring segregation of duties[106](index=106&type=chunk) - The Chairman holds **two meetings annually with Independent Non-executive Directors** without the presence of other directors, providing an exclusive platform to discuss company matters[107](index=107&type=chunk) [Code for Securities Transactions by Directors](index=55&type=section&id=Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted a code for securities transactions largely similar to Appendix C3 of the Hong Kong Listing Rules, updated for UK secondary listing requirements. All directors confirmed compliance with this code during the reporting period - The Company has adopted a code for securities transactions largely similar to **Appendix C3 of the Hong Kong Listing Rules**, updated in accordance with relevant provisions of (EU) Regulation No. 596/2014[110](index=110&type=chunk) - All directors have confirmed their **compliance with the required standards** for dealing in the Company's securities during the six months ended June 30, 2025[110](index=110&type=chunk) - The Company has established **written guidelines for employees** dealing in the Company's securities and adopted policies for handling confidential information, disclosure of inside information, and securities dealing, in compliance with Hong Kong and UK Listing Rules[110](index=110&type=chunk) [Risk Management and Internal Control](index=56&type=section&id=Risk%20Management%20and%20Internal%20Control) The Internal Audit Department independently assesses risk management and internal control systems, reporting directly to the Audit Committee and Group Managing Director. Audit work focuses on the Group's highest-risk activities and closely monitors the implementation of corrective actions - The Internal Audit Department independently assesses risk management and internal control systems, reporting directly to the **Audit Committee and Group Managing Director**[111](index=111&type=chunk) - Audit work focuses on the Group's foreseeable **highest-risk activities** and closely monitors the implementation of agreed corrective actions[111](index=111&type=chunk) - The Board, through the Audit Committee, has reviewed the **effectiveness of the Group's risk management and internal control systems** for the six months ended June 30, 2025[111](index=111&type=chunk) [Audit Committee](index=56&type=section&id=Audit%20Committee) The Audit Committee, composed of four Independent Non-executive Directors, oversees financial reporting, risk management, and internal control systems, and monitors the relationship with external auditors. The Committee has reviewed this interim report - The Audit Committee comprises **four Independent Non-executive Directors**, with more than one member possessing expertise in accounting or related financial management[112](index=112&type=chunk) - The Committee is responsible for overseeing the Company's **financial reporting system, risk management, and internal control systems**, and monitoring the Company's relationship with external auditors[112](index=112&type=chunk) - The Audit Committee has **reviewed the Group's interim report** for the six months ended June 30, 2025[113](index=113&type=chunk) [Remuneration Committee](index=57&type=section&id=Remuneration%20Committee) The Remuneration Committee, primarily composed of Independent Non-executive Directors, advises the Board on remuneration policies and structures for all directors and senior management, and determines the remuneration packages for individual executive directors and senior management - The Remuneration Committee is predominantly composed of Independent Non-executive Directors, with **Mr. Cheung Ying Chow** serving as Chairman[114](index=114&type=chunk) - The Committee's primary responsibilities include advising the Board on the **remuneration policy and structure** for all directors and senior management, and determining the remuneration packages for individual executive directors and senior management[114](index=114&type=chunk) [Nomination Committee](index=57&type=section&id=Nomination%20Committee) The Nomination Committee, primarily composed of Independent Non-executive Directors, reviews the Board's structure, size, and composition at least annually, assesses the independence of Independent Non-executive Directors, and makes recommendations on the appointment, re-appointment, and succession planning of directors - The Nomination Committee is predominantly composed of Independent Non-executive Directors, with **Ms. Kwok Lam Kwai Chun, Catherine** serving as Chairman[115](index=115&type=chunk) - The Committee's primary responsibilities include reviewing the Board's **structure, size, and composition** at least annually, assessing the independence of Independent Non-executive Directors, and making recommendations on the appointment, re-appointment, and succession planning of directors[115](index=115&type=chunk) [Sustainability Committee](index=58&type=section&id=Sustainability%20Committee) The Sustainability Committee, comprising three directors (mostly Independent Non-executive Directors) and the company secretary, oversees the management of the Group's sustainability initiatives and advises the Board on related policies and practices - The Sustainability Committee comprises **three directors** (mostly Independent Non-executive Directors) and the company secretary, with **Mr. H Y Yeh** serving as Chairman[117](index=117&type=chunk) - The Committee's primary responsibilities include overseeing the management of the Group's **sustainability initiatives** and advising the Board on the formulation and implementation of related measures[117](index=117&type=chunk) [Investor Relations and Shareholder Engagement](index=58&type=section&id=Investor%20Relations%20and%20Shareholder%20Engagement) The Company is committed to maintaining effective communication with stakeholders through various channels, including its website, general meetings, press conferences, and investor analyst briefings, to understand their needs and expectations - The Company's **Shareholder Communication Policy** is published on its website and regularly reviewed to ensure its execution and effectiveness[118](index=118&type=chunk) - The Company communicates with shareholders and investors through various channels, including its **website, general meetings, press conferences, and investor analyst briefings**[119](index=119&type=chunk) - The Share Registrar handles all share registration and related matters for shareholders, while the Corporate Affairs Department addresses general inquiries from shareholders and investors[119](index=119&type=chunk) [Other Information](index=60&type=section&id=Other%20Information) This section provides additional information, including details on the purchase, sale, or redemption of listed securities and disclosures required under Chapter 13 of the Hong Kong Listing Rules [Purchase, Sale or Redemption of Listed Securities](index=60&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20Listed%20Securities) During the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the six months ended June 30, 2025, neither the Company nor any of its subsidiaries **purchased, sold, or redeemed any of the Company's listed securities**[121](index=121&type=chunk) - As of June 30, 2025, the Company and its subsidiaries held **no treasury shares** in the Central Clearing and Settlement System or otherwise[121](index=121&type=chunk) [Disclosure under Chapter 13 of the Hong Kong Listing Rules](index=60&type=section&id=Disclosure%20under%20Chapter%2013%20of%20the%20Hong%20Kong%20Listing%20Rules) As of June 30, 2025, the Group's financial assistance to certain associated companies exceeded 8% of the asset percentage ratio. The net assets of these associated companies totaled HKD 195.916 billion, with the Group's aggregate attributable interest being HKD 86.741 billion - As of June 30, 2025, the Group's financial assistance to certain associated companies **exceeded 8% of the asset percentage ratio**[122](index=122&type=chunk) Consolidated Statement of Financial Position of Associated Companies (HKD million) | Item | Amount | | :--- | :--- | | Non-current assets | 532,512 | | Current assets | 27,966 | | Current liabilities | (52,914) | | Non-current liabilities | (311,648) | | **Net assets** | **195,916** | - The Group's aggregate attributable interest in these associated companies totaled **HKD 86.741 billion**[122](index=122&type=chunk) [Risk Factors](index=61&type=section&id=Risk%20Factors) This section details various risks and uncertainties that could affect CK Infrastructure's business, financial condition, operating results, and development prospects, covering macroeconomic, operational, financial compliance, environmental, social, and investment market aspects [Risk Factors Overview](index=61&type=section&id=Risk%20Factors%20Overview) This section elaborates on various risks and uncertainties that could impact the Group's business, financial condition, operating results, and development prospects, encompassing macroeconomic, business operations, financial compliance, environmental, social, and investment market aspects - The Group's business, financial condition, operating results, and development prospects may be affected by **risks and uncertainties directly or indirectly related to its operations**[123](index=123&type=chunk) - The list of risk factors is **not exhaustive or comprehensive**, and other risks unknown to the Group or currently not material may become material in the future[123](index=123&type=chunk) - The report does not constitute investment advice, and investors should exercise their **own judgment or consult investment advisors**[123](index=123&type=chunk) [Macroeconomic and Market Risks](index=61&type=section&id=Macroeconomic%20and%20Market%20Risks) Macroeconomic and market risks include global economic slowdown, trade tensions, policy uncertainties, exchange rate fluctuations, supply chain disruptions, inflationary pressures, geopolitical tensions, and climate risks, all of which could adversely affect the Group's business, financial condition, and asset values - The global economy and financial markets face challenges such as **tense trade relations, policy uncertainties, exchange rate fluctuations, supply chain disruptions, inflationary pressures, and geopolitical tensions**[124](index=124&type=chunk) - The Group operates in multiple countries, and any adverse economic, social, and/or political factors could potentially impact its **business, financial condition, operating results, asset values, and liabilities**[124](index=124&type=chunk) [Global Economy](index=61&type=section&id=Global%20Economy) Persistent global economic slowdown may lead to market contraction, increased defaults, weak consumer confidence, heightened market volatility, and asset value declines. As a diversified infrastructure investment company, the Group's business may be affected by adverse economic, social, and political factors in its operating countries and regions - Persistent global economic slowdown may lead to **economic contraction in certain markets, commercial and consumer defaults, weak consumer confidence, heightened market volatility, and asset value declines**[124](index=124&type=chunk) - Should any adverse economic, social, and/or political factors arise in the countries and regions where the Group operates, they could potentially impact the Group's **business, financial condition, operating results, asset values, and liabilities**[124](index=124&type=chunk) [Economic Conditions and Interest Rates](index=62&type=section&id=Economic%20Conditions%20and%20Interest%20Rates) Economic conditions, population growth, market values, monetary environments, and interest rate cycles in the regions where the Group invests or operates affect its business. Interest rate fluctuation risks may impact the returns of the Group's regulated businesses and its financial and treasury income - Economic conditions, population growth rates, market values of investment securities, monetary environments, and interest rate cycles in different regions where the Group invests or operates all impact the industries in which the Group operates[126](index=126&type=chunk) - Interest rate cycles affect overall demand across industries; although the Group regularly reviews interest rate fluctuation risks and can use hedging instruments to manage them, there is **no guarantee** that the Group will not be affected by interest rate fluctuation risks[126](index=126&type=chunk) - Certain Group businesses are subject to their respective regulatory regimes, which consider local interest rates when calculating the cost of regulated capital, thereby affecting the determination of allowed returns. Additionally, the Group's financial and treasury income depends on capital markets, interest rates, and monetary environments[126](index=126&type=chunk) [Concentration in Market Locations and Business Types](index=63&type=section&id=Concentration%20in%20Market%20Locations%20and%20Business%20Types) The Group's operations may be concentrated in specific market locations or business types, and any deterioration in economic, social, or political environments, or occurrences of social unrest or disasters in these areas, could significantly disrupt the Group's revenue, profitability, and financial condition - The Group's business operations can be considered primarily concentrated in **certain market locations or specific types of businesses**[127](index=127&type=chunk) - Should any deterioration occur in the economic, social, or political environment of these market locations or related industries, or if any social unrest, strikes, riots, civil disturbances, civil disobedience, or terrorist activities, or even epidemics, occur, the Group's business could suffer **significant disruption**, thereby affecting its revenue, profitability, and financial condition[127](index=127&type=chunk) [Intense Market Competition](index=63&type=section&id=Intense%20Market%20Competition) Some of the Group's non-regulated businesses, such as waste management and airport peripheral parking, face intense market competition, where new entrants and existing competitors' price competition could adversely affect the Group's business, financial condition, and development prospects - Some of the Group's non-regulated businesses, such as its **waste management, airport peripheral parking, train leasing, cement, and building services infrastructure businesses**, face competition in their respective operating markets[128](index=128&type=chunk) - The entry of new operators into the market and intensified price competition from existing competitors could **adversely affect** the Group's business, financial condition, operating results, or development prospects[128](index=128&type=chunk) [Business Operations and Industry-Specific Risks](index=64&type=section&id=Business%20Operations%20and%20Industry-Specific%20Risks) Business operations and industry-specific risks include the highly regulated infrastructure market, the impact of crude oil price fluctuations on midstream businesses, and the risk of budget overruns for substantial capital expenditure investments - The infrastructure market is **highly regulated**, and price controls and strict license conditions may affect the Group's returns[129](index=129&type=chunk) - Crude oil price fluctuations could **adversely affect** the operating results and financial condition of the Group's investment in Husky Midstream Limited Partnership business[131](index=131&type=chunk) - Maintaining existing business assets involves **substantial capital expenditure**, with unforeseen risks that could lead to budget overruns and impact the Group's business[132](index=132&type=chunk) [Infrastructure Market](index=64&type=section&id=Infrastructure%20Market) The infrastructure market is highly regulated, with the Group's investments in power and infrastructure subject to price controls and strict license conditions. Violations could lead to fines or license revisions. High interest rates, inflation, energy costs, and a tough regulatory stance may affect returns. Service disruption risks and regulatory reforms could also adversely impact business - The infrastructure industry is **highly regulated**, and some of the Group's investments in power and infrastructure are subject to price controls and strict license conditions, codes, and guidelines[129](index=129&type=chunk) - High interest rates and inflation, elevated energy costs, energy windfall taxes, price caps on energy retail in certain markets, coupled with a tough regulatory stance, may affect the **returns of the Group's infrastructure businesses**[129](index=129&type=chunk) - The distribution and transmission networks used by the Group's utility investment projects may also be subject to **supply disruption risks**. In the event of extreme weather and climate incidents, earthquakes, storms, floods, fires, severe damage, terrorist attacks, epidemics, or any other unforeseen circumstances leading to service disruptions, the resulting cash flow losses and network repair expenditures could be substantial[130](index=130&type=chunk) [Crude Oil Market](index=65&type=section&id=Crude%20Oil%20Market) The Group's investment in Husky Midstream Limited Partnership (HMLP) is influenced by refined petroleum product and crude oil prices produced by Cenovus Energy Inc. Crude oil price fluctuations, driven by global supply and demand, geopolitics, and natural disasters, could adversely affect the Group's financial condition and operating results - The Group's investment in **Husky Midstream Limited Partnership ("HMLP")** operates oil pipelines, storage facilities, and other ancillary assets in Canada. Its operating results and financial condition may be influenced by the prices of refined petroleum products and crude oil produced by Cenovus Energy Inc. ("Cenovus")[131](index=131&type=chunk) - Refined petroleum product and crude oil prices are driven by local and global supply and demand conditions, as well as transportation arrangements and costs. Supply and demand conditions may be affected by various factors, including but not limited to actions taken by OPEC, non-OPEC crude oil supply, social and political conditions in oil-producing countries, natural disasters, general and specific economic conditions, technological developments, current weather patterns, and the emergence of alternative energy sources[131](index=131&type=chunk) - HMLP is also susceptible to unforeseen crude oil spills in rivers or nature reserves. Should such incidents occur or recur, they could **adversely affect** the Group's financial condition and operating results[131](index=131&type=chunk) [Capital Expenditure Investments](index=65&type=section&id=Capital%20Expenditure%20Investments) Capital expenditure investment plans for regulated businesses face concerns regarding customers' ability to bear increased charges, labor and supply constraints, and rising costs. Maintaining existing business assets also involves substantial capital expenditure, with the risk of exceeding budgets, which could impact the Group's business and development prospects - Capital expenditure investment plans for re

截至2025年6月30日止六個月的 中期業績公告 知乎（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈，本公司、其附屬公司及 綜合聯屬實體（「本集團」或「知乎」）截至2025年6月30日止六個月（「報告期間」） 的未經審計簡明中期合併業績（「未經審計中期業績」），連同2024年同期的比較數 字。該等中期業績乃根據美國公認會計準則（「美國公認會計準則」）編製。報告期 間的未經審計簡明中期合併財務資料已由本公司獨立核數師羅兵咸永道會計師事 務所根據國際審閱委聘準則第2410號「 由實體獨立核數師審閱中期財務資料 」進行 審閱。 於本公告內，「我們」指本公司及（倘文義另有所指）本集團（定義見「一般資料」一 節）。 1 財務表現摘要 | | 截至6月30日止六個月 | | | | --- | --- | --- | --- | | | 2025年 | 2024年 | 變動(%) | | | （未經審計）（未經審計） | | | | | （人民幣千元， | 百分比除外） | | | 總收入 | 1,446,559 | 1,894,673 | (23.7)% | | 毛利 | 899,287 | 1,100,023 ...

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，並明確表示概不就因本公告全部或任何部分內容而產生，或因依賴該等內容而引致的任何損失承擔任何責任。 國泰君安國際控股有限公司 （於香港註冊成立之有限公司 ） （股份代號：1788） 截至2025年6月30日止6個月 未經審核中期業績公告 國泰君安國際控股有限公司（「本公司」）董事會（「董事會」）欣然宣佈本公司（連同其附屬公司統 稱「本集團」）截至2025年6月30日止6個月的未經審核綜合業績，連同去年同期的比較數字如下： | | | 截至6月30日止6個月 | | | --- | --- | --- | --- | | | 附註 | 2025年 | 2024年 | | | | 未經審核 | 未經審核 | | | | 千港元 | 千港元 | | 應佔期內溢利： | | | | | 本公司擁有人 | | 550,089 | 194,937 | | 非控股權益 | | 1,321 | 1,835 | | | | 551,410 | 196,772 | | 應佔期內全面收益總額： | | | | | 本公司擁有 ...

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。 Changjiu Holdings Limited 長久股份有限公司 （ 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ） （股份代號：6959） 截 至2025年6月30日止六個月之中期業績公告 長 久 股 份 有 限 公 司（「本公司」）董 事（「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2025年6月30日 止 六 個 月（「報告期」）的 未 經 審 核 綜 合 業 績，連 同 截 至2024年6月30日 止 六 個 月 的 比 較 數 字。報 告 期 的 未 經 審 核 簡 明 綜 合 財 務 資 料 已 獲 董 事 會 審 計 委 員 會（「審計委員會」）審 閱。 本公告所載若干金額及百分比數字已約整或已四捨五入至小數點後一位或兩 位。任 何 表 格、圖 表 或 其 他 ...

內幕消息 截至2025年6月30日止季度 未經審計財務業績 本公告乃根據香港聯合交易所有限公司（「香港聯交所」）證券上市規則第13.09條 及證券及期貨條例（第571章）第XIVA部刊發。 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 Zhihu Inc. （於開曼群島註冊成立以不同投票權控制的有限責任公司） （紐交所代號：ZH；聯交所代號：2390） 知乎（「本公司」）欣然宣佈本公司及其附屬公司及綜合聯屬實體截至2025年6月 30日止三個月的未經審計簡明合併業績。 本公司欣然宣佈，根據美國證券交易委員會（「美國證監會」）適用規則刊發的本公 司及其附屬公司及綜合聯屬實體截至2025年6月30日止三個月的未經審計簡明合 併業績（「第二季度業績」）。 第二季度業績乃根據美國公認會計準則（有別於國際財務報告準則）編製。 本公告附表I為本公司於2025年8月27日（美國東部時間）就第二季度業績刊發的新 聞稿全文，其中部分內容可能構成本公司的重大內幕消息。 ...

Condensed Interim Financial Statements Review Report [Review Scope and Conclusion](index=3&type=section&id=Review%20Scope%20and%20Conclusion) Deloitte Touche Tohmatsu reviewed the Group's condensed consolidated financial statements for the six months ended June 30, 2025, finding no material non-compliance with HKAS 34 - The auditor has reviewed the condensed consolidated financial statements in accordance with Hong Kong Standard on Review Engagements 2410, and the scope of the review is less than an audit[8](index=8&type=chunk) - The auditor has not found any matters indicating that the condensed consolidated financial statements are not prepared in all material respects in accordance with Hong Kong Accounting Standard 34[9](index=9&type=chunk) Condensed Consolidated Financial Statements [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's revenue decreased by 12.3% to HKD 688,654 thousand, but loss significantly narrowed by 85.1% to HKD 3,553 thousand Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data | Indicator | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 688,654 | 785,212 | -12.3% | | Other income, gains and losses | 11,516 | 6,188 | +86.1% | | Loss before tax | (1,865) | (27,757) | -93.3% | | Loss for the period | (3,553) | (23,915) | -85.1% | | Total comprehensive income (expense) for the period | 40,380 | (63,300) | N/A | | Basic loss per share (HK cents) | (0.56) | (3.79) | -85.2% | - Exchange differences arising from translation of overseas operations turned from a loss of **HKD 39,385 thousand** in the same period of 2024 to a gain of **HKD 43,933 thousand** in the same period of 2025, significantly impacting total comprehensive income[11](index=11&type=chunk) [Condensed Consolidated Statement of Financial Position](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total net assets were HKD 1,600,452 thousand, a decrease from December 31, 2024, with robust net current assets and ample cash Condensed Consolidated Statement of Financial Position Key Data | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 767,609 | 809,141 | -5.26% | | Current assets | 1,117,440 | 1,162,485 | -3.9% | | Current liabilities | 193,312 | 201,476 | -4.05% | | Net current assets | 924,128 | 961,009 | -3.84% | | Net assets | 1,600,452 | 1,673,543 | -4.37% | | Bank balances and cash | 518,076 | 546,648 | -5.39% | - Fair value of investment properties decreased by **HKD 3,100 thousand**, and the net value of property, plant and equipment decreased, reflecting changes in the asset structure[12](index=12&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) Total equity decreased from HKD 1,673,543 thousand to HKD 1,600,452 thousand, mainly due to loss and dividends, partially offset by exchange reserve increase Condensed Consolidated Statement of Changes in Equity Key Data | Indicator | January 1, 2025 (HKD thousands) | June 30, 2025 (HKD thousands) | Change (HKD thousands) | | :--- | :--- | :--- | :--- | | Total equity | 1,673,543 | 1,600,452 | -73,091 | | Loss for the period | - | (3,553) | (3,553) | | Exchange differences arising from translation of overseas operations | - | 43,933 | 43,933 | | Final dividend | - | (37,901) (75,802) | (113,703) | - Exchange reserve increased from **HKD 121,938 thousand** as of January 1, 2025, to **HKD 165,871 thousand** as of June 30, 2025, reflecting the positive impact of exchange rate changes[14](index=14&type=chunk) - Equity-settled share-based payments of **HKD 232 thousand** were recognized, increasing the share-based payment reserve[14](index=14&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) Net cash from operating activities was HKD 89,431 thousand, but investing and financing outflows led to a net decrease of HKD 42,301 thousand in cash and cash equivalents Condensed Consolidated Statement of Cash Flows Key Data | Indicator | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | Change (HKD thousands) | | :--- | :--- | :--- | :--- | | Net cash from operating activities | 89,431 | 93,119 | -3,688 | | Net cash used in investing activities | (15,949) | (7,358) | -8,591 | | Cash used in financing activities | (115,783) | (33,611) | -82,172 | | Net (decrease) increase in cash and cash equivalents | (42,301) | 52,150 | -94,451 | | Bank balances and cash at end of period | 518,076 | 470,541 | +47,535 | - Cash outflow from financing activities significantly increased, mainly due to dividends paid rising from **HKD 31,533 thousand** in the same period of 2024 to **HKD 113,625 thousand** in the same period of 2025[16](index=16&type=chunk) - Cash outflow for the purchase of property, plant and equipment increased from **HKD 13,102 thousand** in the same period of 2024 to **HKD 20,808 thousand** in the same period of 2025, reflecting increased capital expenditure[16](index=16&type=chunk) Notes to the Condensed Consolidated Financial Statements [Basis of Presentation and Principal Accounting Policies](index=10&type=section&id=Basis%20of%20Presentation%20and%20Principal%20Accounting%20Policies) Interim financial statements are prepared under HKAS 34 and Listing Rules, using historical cost except for fair-valued investment properties, with no material impact from new HKFRS standards - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[17](index=17&type=chunk) - The statements are prepared on the historical cost basis, except for investment properties which are measured at fair value[18](index=18&type=chunk) - Revisions to Hong Kong Financial Reporting Standards accounting standards issued by the Hong Kong Institute of Certified Public Accountants were first applied in this interim period but had no material impact on the Group's financial position and performance[19](index=19&type=chunk) [Revenue and Segment Information](index=11&type=section&id=Revenue%20and%20Segment%20Information) The Group manufactures mould bases, recognizing revenue upon delivery, operates as a single segment, with most non-current assets in China and no dominant customer - The Group primarily engages in the manufacturing and sale of mould bases and related products, with revenue recognized upon delivery of goods to customers[20](index=20&type=chunk)[21](index=21&type=chunk) - The Group has only one operating segment, and its consolidated results include all revenue, expenses, and tax expenses[22](index=22&type=chunk) Revenue by Customer Delivery Location | Region | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | China | 594,866 | 694,610 | | Others | 93,788 | 90,602 | | **Total** | **688,654** | **785,212** | [Other Income, Gains and Losses](index=13&type=section&id=Other%20Income%2C%20Gains%20and%20Losses) Total other income, gains and losses reached HKD 11,516 thousand, significantly increasing due to a positive shift in net exchange gains Details of Other Income, Gains and Losses | Item | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Interest income | 3,030 | 4,578 | | Rental income | 2,206 | 1,432 | | Miscellaneous income | 1,776 | 970 | | Gain on disposal of property, plant and equipment | 1,829 | 913 | | Net exchange gains (losses) | 2,675 | (1,705) | | **Total** | **11,516** | **6,188** | - Net exchange gains turned from a loss of **HKD 1,705 thousand** in the same period of 2024 to a gain of **HKD 2,675 thousand** in the same period of 2025, being the main reason for the increase in other income and losses[26](index=26&type=chunk) [Other Expenses](index=14&type=section&id=Other%20Expenses) Total other expenses decreased by 16.9% to HKD 163,642 thousand, driven by reductions in transportation, maintenance, utilities, and subcontracting fees Details of Other Expenses | Item | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Tooling costs | 43,197 | 44,250 | | Transportation expenses | 26,096 | 31,062 | | Repair and maintenance expenses | 20,501 | 30,241 | | Utilities | 22,001 | 25,398 | | Subcontracting fees | 702 | 3,548 | | **Total** | **163,642** | **196,977** | - Subcontracting fees significantly decreased from **HKD 3,548 thousand** in the same period of 2024 to **HKD 702 thousand** in the same period of 2025[28](index=28&type=chunk) [Income Tax (Expense) Credit](index=15&type=section&id=Income%20Tax%20(Expense)%20Credit) The Group recorded an income tax expense of HKD 1,688 thousand, a shift from a credit, due to higher non-Hong Kong taxes and reduced deferred tax credits Details of Income Tax (Expense) Credit | Item | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Hong Kong tax | 56 | (179) | | Tax in jurisdictions outside Hong Kong | (4,543) | (819) | | Deferred tax | 2,799 | 4,840 | | **Total** | **(1,688)** | **3,842** | - The tax rate for Chinese subsidiaries is **25%**, and a **5%** withholding tax rate applies to dividends distributed from retained profits of Chinese foreign-invested enterprises[29](index=29&type=chunk)[30](index=30&type=chunk) [Loss for the Period and Dividends](index=16&type=section&id=Loss%20for%20the%20Period%20and%20Dividends) The period's loss was net of HKD 577,097 thousand in inventory costs, with an interim dividend of HKD 8 cents per share declared, alongside prior final and special dividends Items Deducted from Loss for the Period | Item | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Cost of inventories recognized as expense | 577,097 | 685,156 | | (Reversal) recognition of inventory provision | (452) | 56 | - The Board decided to declare an interim dividend of **HKD 8 cents per share** (2024: HKD 5 cents per share), totaling **HKD 50,534 thousand**[33](index=33&type=chunk) - Final dividend of **HKD 6 cents per share** (HKD 37,901 thousand) and a special final dividend of **HKD 12 cents per share** (HKD 75,802 thousand) for 2024 were declared and paid during the period[34](index=34&type=chunk) [Loss Per Share](index=17&type=section&id=Loss%20Per%20Share) Basic and diluted loss per share significantly narrowed to HKD 0.56 cents, reflecting a reduced loss attributable to owners of the Company Loss Per Share Data | Indicator | Six Months Ended June 30, 2025 (HK cents) | Six Months Ended June 30, 2024 (HK cents) | | :--- | :--- | :--- | | Basic loss per share | (0.56) | (3.79) | | Diluted loss per share | (0.56) | (3.79) | - Loss per share is calculated based on the loss attributable to owners of the Company of **HKD 3,553 thousand** (2024: HKD 23,915 thousand) and **631,677,303** ordinary shares in issue[35](index=35&type=chunk) - Diluted loss per share calculation did not assume the exercise of share options as the exercise price was higher than the average market share price[35](index=35&type=chunk) [Changes in Investment Properties and Property, Plant and Equipment](index=17&type=section&id=Changes%20in%20Investment%20Properties%20and%20Property%2C%20Plant%20and%20Equipment) Investment property fair value decreased by HKD 3,100 thousand, while the Group disposed of assets for a gain and acquired new equipment to enhance production - Fair value of investment properties decreased by **HKD 3,100 thousand** (2024: HKD 5,100 thousand) and was recognized directly in profit or loss[36](index=36&type=chunk) - Cash proceeds of **HKD 1,829 thousand** were received from the disposal of property, plant and equipment, resulting in a gain on disposal of **HKD 1,829 thousand**[36](index=36&type=chunk) - Acquisitions during the period included plant and machinery of **HKD 18,727 thousand**, furniture and equipment of **HKD 667 thousand**, and motor vehicles of **HKD 4,283 thousand**, for enhancing production facilities[37](index=37&type=chunk) [Trade, Bills and Other Receivables](index=18&type=section&id=Trade%2C%20Bills%20and%20Other%20Receivables) Total trade, bills and other receivables decreased to HKD 147,627 thousand, with most trade receivables aged within sixty days Details of Trade, Bills and Other Receivables | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Trade receivables | 100,397 | 99,319 | | Bills receivable | 4,821 | 9,369 | | Provision for credit losses | (10,221) | (10,018) | | Prepayments for materials | 45,273 | 41,211 | | **Total** | **147,627** | **155,368** | Aging Analysis of Trade and Bills Receivables | Aging | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | 0 to 60 days | 79,343 | 86,174 | | 61 to 90 days | 15,609 | 16,495 | | Over 90 days | 10,266 | 6,019 | | **Total** | **105,218** | **108,688** | [Trade and Other Payables](index=19&type=section&id=Trade%20and%20Other%20Payables) Total trade and other payables decreased to HKD 210,468 thousand, with trade payables having a credit period of 30-150 days and most aged within sixty days Details of Trade and Other Payables | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Trade payables | 34,460 | 46,137 | | Employee benefit provisions | 86,143 | 90,547 | | Accrued salaries and bonuses | 30,669 | 29,229 | | VAT payables | 26,790 | 22,250 | | **Total** | **210,468** | **225,029** | Aging Analysis of Trade Payables | Aging | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | 0 to 60 days | 25,924 | 40,595 | | 61 to 90 days | 6,732 | 3,516 | | Over 90 days | 1,804 | 2,026 | | **Total** | **34,460** | **46,137** | [Share Capital](index=19&type=section&id=Share%20Capital) The Company's issued share capital remained unchanged with 631,677,303 ordinary shares at HKD 0.1 par value each - The Company has **631,677,303** ordinary shares in issue with a par value of **HKD 0.1 per share**[42](index=42&type=chunk) [Share Option Scheme](index=20&type=section&id=Share%20Option%20Scheme) The 2022 Share Option Scheme incentivizes employees; 4,440,000 options remain unexercised at a weighted average exercise price of HKD 1.387, with HKD 232 thousand expense recognized - The 2022 Share Option Scheme aims to provide incentives to directors and eligible employees and has a ten-year validity period[43](index=43&type=chunk) Share Option Movement Details | Grantee Category | January 1, 2025 (units) | June 30, 2025 (units) | Exercise Price Per Share (HKD) | | :--- | :--- | :--- | :--- | | Employees (granted 2023) | 2,310,000 | 2,310,000 | 1.578 | | Employees (granted 2024) | 2,130,000 | 2,130,000 | 1.180 | | **Total** | **4,440,000** | **4,440,000** | **Weighted Average 1.387** | - For the year ended June 30, 2025, the Group recognized a total expense of **HKD 232 thousand** for share options granted[44](index=44&type=chunk) [Capital Commitments](index=20&type=section&id=Capital%20Commitments) Contracted but unprovided capital expenditure for property, plant and equipment decreased to HKD 10,116 thousand as of June 30, 2025 Capital Commitments | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Contracted but unprovided capital expenditure for acquisition of property, plant and equipment | 10,116 | 14,468 | [Related Party Disclosures](index=21&type=section&id=Related%20Party%20Disclosures) The Group engaged in related party transactions with director-controlled entities, and key management personnel compensation totaled HKD 14,800 thousand Related Party Transactions | Nature of Transaction | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Repayment of lease liabilities | 1,291 | 1,291 | | Rental deposits paid | 646 | 646 | | Interest expense on lease liabilities | 104 | 37 | Key Management Personnel Compensation | Item | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Short-term benefits | 13,477 | 13,646 | | Post-employment benefits | 1,323 | 1,323 | | **Total** | **14,800** | **14,969** | [Fair Value Measurement of Financial Instruments](index=21&type=section&id=Fair%20Value%20Measurement%20of%20Financial%20Instruments) Management assesses that the carrying amounts of financial assets and liabilities at amortized cost approximate their fair values, without recurring fair value measurements - Management believes that the carrying amounts of financial assets and financial liabilities recognized at amortized cost in the condensed consolidated financial statements approximate their fair values[50](index=50&type=chunk) Management Discussion and Analysis [Business Review](index=22&type=section&id=Business%20Review) Despite reduced revenue in a challenging environment, the Group significantly narrowed its net loss through strategic pricing, high-value orders, and cost control, improving overall performance Business Review Key Financial Data | Indicator | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 688,654 | 785,212 | | Loss attributable to owners of the Company | 3,553 | 23,915 | | Basic loss per share (HK cents) | 0.56 | 3.79 | - Despite a decrease in total revenue, the Group's product gross margin increased, and net loss significantly decreased by **85.1%**, resulting in a slight improvement in overall performance[51](index=51&type=chunk)[52](index=52&type=chunk) - The Group slightly increased product selling prices to mitigate cost pressure and accepted mould orders with high deep-processing content, increasing product revenue[52](index=52&type=chunk) [Financial Review](index=23&type=section&id=Financial%20Review) Revenue decreased by 12.3% due to fewer orders, but cost reductions, higher selling prices, and increased other income led to an 85.1% narrowing of the loss - Revenue decreased by **12.3%**, mainly due to a reduction in total market orders caused by a challenging business environment[53](index=53&type=chunk) - Costs related to raw materials and consumables used decreased by **22.9%**, and their percentage of revenue fell to **35.2%** (2024: 40.0%), primarily due to higher selling prices, increased processing services, and falling raw material procurement prices[53](index=53&type=chunk) - Other expenses decreased by **16.9%**, depreciation of property, plant and equipment decreased by **6.8%**, fair value of investment properties decreased by **HKD 2,000 thousand**, and other income increased by **HKD 5,328 thousand** (mainly from net exchange gains)[53](index=53&type=chunk)[54](index=54&type=chunk) [Liquidity and Financial Resources](index=23&type=section&id=Liquidity%20and%20Financial%20Resources) The Group maintains strong liquidity with HKD 1,600,452 thousand in total equity and HKD 518,076 thousand in cash, with no borrowings Liquidity and Financial Resources Overview | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Total equity | 1,600,452 | 1,673,543 | | Bank balances and cash | 518,076 | 546,648 | | Borrowings | Nil | Nil | - Bank balances and cash are primarily held as short-term deposits with major banks in Hong Kong and China[56](index=56&type=chunk) - The Group has ample cash to meet its operating and capital commitments[57](index=57&type=chunk) [Employees and Remuneration Policy](index=23&type=section&id=Employees%20and%20Remuneration%20Policy) The Group employs approximately 3,000 staff, offering competitive remuneration, performance-based promotions, and share options for incentive - As of June 30, 2025, the Group employed approximately **3,000 employees**[58](index=58&type=chunk) - The Group implements a competitive remuneration system for employees, with promotions and salary increases based on performance evaluations[58](index=58&type=chunk) - The Group grants share options to employees based on their individual performance[58](index=58&type=chunk) [Outlook](index=24&type=section&id=Outlook) Facing global economic headwinds, the Group plans to strengthen marketing, explore new markets, adapt to China's domestic trends, enhance production, and control costs for stable development - Global economic development continues to face significant headwinds, with market prospects difficult to predict and full of uncertainties, which the Group will address cautiously[59](index=59&type=chunk) - The Group will strengthen its marketing team and network, prudently adjust marketing strategies, and actively explore emerging trade markets (e.g., ASEAN member states) to diversify market risks[59](index=59&type=chunk) - The Group will actively adapt to new development trends in the Chinese market, such as healthy green consumption, new quality productive forces (low-altitude economy, AI products), and trendy collectible toys, to consolidate its industry leadership[60](index=60&type=chunk) - The Group will continuously enhance overall processing capabilities and product quality in the plastics and die-casting industries, improve production equipment and processes, utilize intelligent production models, and further monitor and reduce operating costs[60](index=60&type=chunk) Other Information [Review of Interim Financial Statements](index=25&type=section&id=Review%20of%20Interim%20Financial%20Statements) The Audit Committee, management, and external auditor reviewed the Group's accounting principles, internal controls, and financial reporting, including the unaudited interim statements - The Audit Committee, in conjunction with management and the external auditor, has reviewed the Group's accounting principles, practices, internal control measures, and financial reporting matters[61](index=61&type=chunk) [Interim Dividend](index=25&type=section&id=Interim%20Dividend) The Board declared an interim dividend of HKD 8 cents per share for the six months ended June 30, 2025, payable around September 23, 2025 - The Board decided to declare an interim dividend of **HKD 8 cents per share** (2024: HKD 5 cents per share) for the six months ended June 30, 2025[62](index=62&type=chunk) - The total interim dividend amounts to **HKD 50,534,000** (2024: HKD 31,584,000)[33](index=33&type=chunk) [Closure of Register of Members](index=25&type=section&id=Closure%20of%20Register%20of%20Members) Share transfer registration will be suspended from September 9-10, 2025, requiring documents by September 8, 2025, for interim dividend eligibility - The Company will suspend registration of share transfers from **September 9, 2025, to September 10, 2025** (both dates inclusive)[63](index=63&type=chunk) - To be eligible for the interim dividend, all duly completed transfer documents together with the relevant share certificates must be lodged with the Company's share registrar in Hong Kong by **4:30 p.m. on September 8, 2025**[63](index=63&type=chunk) [Directors' Interests in Shares](index=26&type=section&id=Directors%27%20Interests%20in%20Shares) As of June 30, 2025, several directors and their associates held significant share interests, including Mr. Shao Tie Lung and Mr. Shao Yu Lung each with 64.49% Directors' Interests in the Company's Shares | Director Name | Total Interest (shares) | Percentage of Company's Issued Share Capital | | :--- | :--- | :--- | | Shao Tie Lung | 407,372,381 | 64.49% | | Shao Yu Lung | 407,372,381 | 64.49% | | Wei Long Shing | 3,843,750 | 0.61% | | Ding Zong Hao | 720,000 | 0.11% | | Shao Xu Tong | 366,290,937 | 57.99% | | Shao Yu Heng | 367,306,937 | 58.15% | | Li Tat Yee | 150,000 | 0.02% | - Mr. Shao Tie Lung and Mr. Shao Yu Lung jointly held **35,851,288 shares** and each held **5,310,156 shares**. Additionally, Pan Island Investments Limited held **366,210,937 shares**, a company wholly owned by a discretionary trust whose beneficiaries include family members of Mr. Shao Tie Lung and Mr. Shao Yu Lung[64](index=64&type=chunk)[68](index=68&type=chunk) [Directors' Rights to Acquire Securities](index=27&type=section&id=Directors%27%20Rights%20to%20Acquire%20Securities) No directors, their spouses, or minor children held or exercised any rights to subscribe for the Company's securities during the period - No director, their spouse, or children under 18 years of age held any rights to subscribe for the Company's securities, nor were any such rights exercised during the period[66](index=66&type=chunk) [Share Option Scheme (Other Information)](index=27&type=section&id=Share%20Option%20Scheme%20(Other%20Information)) The 2022 Share Option Scheme aims to incentivize participants; 4,440,000 options remain unexercised, with 58,727,730 available for grant, and no new grants this period - The 2022 Share Option Scheme was adopted with shareholder approval on **May 30, 2022**, aiming to attract, retain, and incentivize participants, and will expire on **May 29, 2032**[67](index=67&type=chunk) Details of Unexercised Share Options | Grantee Category | January 1, 2025 (units) | June 30, 2025 (units) | Grant Date | Exercise Period | Exercise Price Per Share (HKD) | | :--- | :--- | :--- | :--- | :--- | :--- | | Employees | 2,310,000 | 2,310,000 | September 28, 2023 | September 28, 2024 to September 27, 2027 | 1.578 | | Employees | 2,130,000 | 2,130,000 | September 27, 2024 | September 27, 2025 to September 26, 2028 | 1.180 | | **Total** | **4,440,000** | **4,440,000** | | | | - At the beginning and end of the reporting period, the number of share options available for grant under the 2022 Scheme was **58,727,730**, and no share options were granted under the scheme during this period[70](index=70&type=chunk) [Major Shareholders](index=29&type=section&id=Major%20Shareholders) Pan Island Investments Limited and HSBC International Trustee Limited are major shareholders, holding 57.97% and 58.02% respectively, with overlapping interests Major Shareholder Holdings | Shareholder Name | Capacity | Number of Shares / Relevant Shares | Percentage of Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Pan Island Investments Limited | Beneficial owner | 366,210,937 | 57.97% | | HSBC International Trustee Limited | Trustee | 366,514,990 | 58.02% | | David Michael Webb | Beneficial owner and interest in controlled corporation | 37,938,498 | 6.00% | - HSBC International Trustee Limited, as trustee, controls Pan Island Investments Limited, thus its interest overlaps with the share interest held by Pan Island Investments Limited[72](index=72&type=chunk) [Purchase, Sale or Redemption of Securities](index=30&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Securities) Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's securities during the six months ended June 30, 2025 - During the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's shares or other securities[74](index=74&type=chunk) [Corporate Governance and Model Code](index=30&type=section&id=Corporate%20Governance%20and%20Model%20Code) The Company complied with all code provisions of the HKEX Listing Rules' Corporate Governance Code and adopted the Model Code for directors' securities transactions - The Company complied with all code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules throughout the review period[75](index=75&type=chunk) - The Company adopted the Model Code in Appendix C3 of the Listing Rules as the standard for directors' securities transactions, and all directors confirmed compliance with the code[76](index=76&type=chunk)[77](index=77&type=chunk)

[Disclaimer](index=1&type=section&id=Disclaimer) Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited are not responsible for the accuracy or completeness of this announcement - Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited disclaim responsibility for the accuracy or completeness of this announcement [1](index=1&type=chunk) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company reported significant revenue and profit growth for the six months ended June 30, 2025, with a notable increase in earnings per share Financial Highlights for the Six Months Ended June 30, 2025 | Indicator | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 131,400 | 84,800 | 46,600 | 54.9% | | Gross Profit | 7,900 | 5,900 | 2,000 | 34.3% | | Profit and Total Comprehensive Income | 3,700 | 1,700 | 2,000 | 121.2% | | Basic and Diluted Earnings Per Share | 0.92 HK cents | 0.42 HK cents | 0.50 HK cents | 119.0% | - Revenue significantly increased primarily due to a rise in both larger public projects (with revenue of **HK$10.0 million** or more) and smaller projects (with revenue between **HK$1.0 million** and **HK$5.0 million**) [2](index=2&type=chunk) - Gross profit margin decreased from approximately **6.9%** to approximately **6.0%**, mainly due to a slight increase in service costs from increased subcontracting costs for two major public projects completed at period-end [3](index=3&type=chunk) - The Board does not recommend an interim dividend for the six months ended June 30, 2025 [4](index=4&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=2&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including the statement of profit or loss, financial position, changes in equity, and cash flows [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company saw significant growth in revenue and gross profit, leading to a substantial increase in profit and total comprehensive income, with a corresponding rise in earnings per share Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 131,357 | 84,794 | | Cost of Services | (123,499) | (78,942) | | **Gross Profit** | **7,858** | **5,852** | | Other Income, Gains and Losses | 859 | 811 | | Administrative Expenses | (4,825) | (4,539) | | Finance Costs | (30) | (32) | | **Profit Before Income Tax** | **3,862** | **2,092** | | Income Tax Expense | (166) | (421) | | **Profit and Total Comprehensive Income for the Period Attributable to Owners of the Company** | **3,696** | **1,671** | | Basic and Diluted Earnings Per Share | 0.92 HK cents | 0.42 HK cents | [Unaudited Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, non-current assets significantly increased due to a rise in bonds receivable, while net current assets and total assets less current liabilities also grew, indicating a robust net asset position Unaudited Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 6,209 | 8,256 | | Bonds Receivable | 40,000 | – | | **Total Non-current Assets** | **46,209** | **8,256** | | **Current Assets** | | | | Trade and Other Receivables | 5,234 | 25,341 | | Contract Assets | 22,626 | 13,860 | | Current Tax Recoverable | 1,001 | 1,095 | | Cash and Bank Balances | 70,411 | 63,365 | | **Total Current Assets** | **99,272** | **103,661** | | **Current Liabilities** | | | | Trade and Other Payables | 17,071 | 24,753 | | Contract Liabilities | 1,038 | 3,136 | | Lease Liabilities | 638 | 843 | | **Total Current Liabilities** | **18,747** | **28,732** | | **Net Current Assets** | **80,525** | **74,929** | | **Total Assets Less Current Liabilities** | **126,734** | **83,185** | | **Non-current Liabilities** | | | | Lease Liabilities | 53 | 272 | | Long Service Payment Obligations | 293 | 293 | | Deferred Tax Liabilities | 867 | 795 | | Bonds | 40,000 | – | | **Total Non-current Liabilities** | **41,213** | **1,360** | | **Net Assets** | **85,521** | **81,825** | | **Equity** | | | | Share Capital | 4,000 | 4,000 | | Reserves | 81,521 | 77,825 | | **Equity Attributable to Owners of the Company** | **85,521** | **81,825** | [Unaudited Condensed Consolidated Statement of Changes in Equity](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, the company's total equity increased due to the profit and total comprehensive income for the period, while share capital remained unchanged Unaudited Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30) | | Share Capital (HK$ thousand) | Share Premium (HK$ thousand) | Capital Reserve (HK$ thousand) | Retained Earnings (HK$ thousand) | Total (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | | As at January 1, 2024 (Audited) | 4,000 | 50,084 | 1 | 88,995 | 143,080 | | Dividends Paid | – | – | – | (70,000) | (70,000) | | Profit and Total Comprehensive Income for the Period | – | – | – | 1,671 | 1,671 | | **As at June 30, 2024 (Unaudited)** | **4,000** | **50,084** | **1** | **20,666** | **74,751** | | As at January 1, 2025 (Audited) | 4,000 | 50,084 | 1 | 27,740 | 81,825 | | Profit and Total Comprehensive Income for the Period | – | – | – | 3,696 | 3,696 | | **As at June 30, 2025 (Unaudited)** | **4,000** | **50,084** | **1** | **31,436** | **85,521** | [Unaudited Condensed Consolidated Statement of Cash Flows](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operating activities decreased, cash flow from investing activities shifted from outflow to inflow, and net cash used in financing activities significantly reduced, resulting in a substantial increase in cash and cash equivalents at period-end Unaudited Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Source of Cash Flow | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Net Cash From Operating Activities | 6,840 | 10,041 | | Net Cash From/(Used In) Investing Activities | 662 | (2,747) | | Net Cash Used In Financing Activities | (456) | (70,333) | | Net Increase/(Decrease) in Cash and Cash Equivalents | 7,046 | (63,039) | | Cash and Cash Equivalents at Beginning of Period | 63,365 | 114,555 | | Cash and Cash Equivalents at End of Period | 70,411 | 51,516 | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the unaudited condensed consolidated financial statements, covering general information, basis of preparation, revenue, and other financial details [1. General Information](index=6&type=section&id=1.%20General%20Information) Fung Shing Holdings Limited, incorporated in the Cayman Islands and listed on the HKEX Main Board, primarily engages in slope works in Hong Kong, jointly controlled by Mr. Tse Shing Kee and Mr. Ho Ka Ki - The company was incorporated in the Cayman Islands on January 30, 2019, listed on GEM on December 13, 2019, and transferred to the Main Board on December 31, 2021 [10](index=10&type=chunk) - The Group primarily engages in slope works in Hong Kong [11](index=11&type=chunk) - The company's direct and ultimate holding company is Peak Investment Limited, with Mr. Tse Shing Kee and Mr. Ho Ka Ki as ultimate controlling shareholders [11](index=11&type=chunk) [2. Basis of Preparation](index=6&type=section&id=2.%20Basis%20of%20Preparation) The interim financial report is prepared in accordance with HKAS 34 and Listing Rules, using the historical cost convention, with new HKFRSs effective January 1, 2025, having no significant impact - This interim financial report is prepared in accordance with applicable disclosure provisions of the Listing Rules, including compliance with Hong Kong Accounting Standard 34 Interim Financial Reporting issued by the HKICPA [12](index=12&type=chunk) - The interim financial report is prepared based on accounting policies adopted in the Group's annual financial statements for the year ended December 31, 2024, with the adoption of new and revised HKFRSs effective January 1, 2025 [15](index=15&type=chunk) - The adoption of these new and revised HKFRSs has no significant impact on the results and financial position of the current and prior periods presented [15](index=15&type=chunk) [3. Revenue](index=8&type=section&id=3.%20Revenue) The Group's revenue primarily derives from providing slope works, with a 54.9% year-on-year increase for the six months ended June 30, 2025, mainly driven by public projects - Revenue represents income from providing slope works to external customers, recognized over time by the Group [18](index=18&type=chunk) Revenue Composition (For the six months ended June 30) | Project Type | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Public Projects | 125,428 | 79,271 | | Private Projects | 5,929 | 5,523 | | **Total** | **131,357** | **84,794** | [4. Other Income, Gains and Losses](index=8&type=section&id=4.%20Other%20Income,%20Gains%20and%20Losses) For the six months ended June 30, 2025, other income, gains, and losses slightly increased, primarily due to higher gains from the disposal of property, plant, and equipment offsetting reduced bank interest income Other Income, Gains and Losses (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Bank Interest Income | 665 | 814 | | Gains/(Losses) on Disposal of Property, Plant and Equipment | 192 | (3) | | Miscellaneous Income | 2 | – | | **Total** | **859** | **811** | [5. Finance Costs](index=8&type=section&id=5.%20Finance%20Costs) The Group's finance costs, primarily from lease liabilities, slightly decreased for the six months ended June 30, 2025 Finance Costs (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Interest on Lease Liabilities | 30 | 32 | [6. Profit Before Income Tax](index=9&type=section&id=6.%20Profit%20Before%20Income%20Tax) Profit before income tax is primarily influenced by staff costs, including directors' emoluments, salaries, wages, other benefits, and contributions to defined contribution retirement plans, as well as depreciation Staff Costs (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Directors' Emoluments | 2,209 | 1,765 | | Salaries, Wages and Other Benefits | 25,173 | 19,270 | | Contributions to Defined Contribution Retirement Plans | 1,060 | 810 | | **Total** | **28,442** | **21,845** | Depreciation (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Cost of Services - Owned Assets | 1,838 | 1,561 | | Cost of Services - Right-of-use Assets | 399 | 249 | | Administrative Expenses - Owned Assets | 7 | 10 | | Administrative Expenses - Right-of-use Assets | – | 130 | | **Total** | **2,244** | **1,950** | [7. Income Tax Expense](index=9&type=section&id=7.%20Income%20Tax%20Expense) The Group's income tax expense, mainly Hong Kong profits tax provision calculated under the two-tiered profits tax regime, decreased for the six months ended June 30, 2025, primarily due to reduced deferred tax expense Income Tax Expense (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Current Tax | 94 | – | | Deferred Tax | 72 | 421 | | **Total** | **166** | **421** | - Under the two-tiered profits tax regime, qualifying corporations pay tax at **8.25%** on the first **HK$2 million** of profits and **16.5%** on profits exceeding **HK$2 million** [24](index=24&type=chunk) [8. Earnings Per Share](index=10&type=section&id=8.%20Earnings%20Per%20Share) For the six months ended June 30, 2025, basic and diluted earnings per share were 0.92 HK cents, a significant increase from the prior year, with no potential dilutive ordinary shares Earnings Per Share Calculation (For the six months ended June 30) | Indicator | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Profit for Basic Earnings Per Share (Profit for the Period) (HK$ thousand) | 3,696 | 1,671 | | Weighted Average Number of Ordinary Shares for Basic Earnings Per Share (thousand shares) | 400,000 | 400,000 | | **Basic and Diluted Earnings Per Share** | **0.92 HK cents** | **0.42 HK cents** | - There were no potential dilutive ordinary shares for the six months ended June 30, 2025 and 2024, thus diluted earnings per share equal basic earnings per share [25](index=25&type=chunk) [9. Dividends](index=10&type=section&id=9.%20Dividends) The Board does not recommend an interim dividend for the period ended June 30, 2025, but a special dividend of 17.5 HK cents per share was paid in 2024 - The Board does not recommend an interim dividend for the period ended June 30, 2025 (six months ended June 30, 2024: nil HK cents) [26](index=26&type=chunk) - On January 19, 2024, the Board recommended a special dividend of **17.5 HK cents** per ordinary share, totaling **HK$70,000,000**, which was paid on February 16, 2024 [26](index=26&type=chunk) [10. Property, Plant and Equipment](index=10&type=section&id=10.%20Property,%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the Group's capital expenditure on the acquisition of property, plant, and equipment significantly decreased - For the six months ended June 30, 2025, the Group acquired items of property, plant and equipment of approximately **HK$0.2 million** (six months ended June 30, 2024: HK$3.4 million) [27](index=27&type=chunk) [11. Bonds Receivable and Bonds](index=10&type=section&id=11.%20Bonds%20Receivable%20and%20Bonds) The Group issued bonds totaling HK$40,000,000 with a one-year term and 8% coupon rate, with net proceeds intended to support strategic entry into China's industrial park management sector, leading to the establishment of a Chinese subsidiary in Ganzhou, Jiangxi - Bonds receivable refer to bonds with a principal amount of **HK$40,000,000**, a one-year term, and an **8%** coupon rate, subscribed by two independent private investors and issued by Jinling Capital Holdings Limited, a subsidiary of the Group [28](index=28&type=chunk) - The net proceeds from the bonds are intended to support the Group's strategic entry into the industrial park management sector in the People's Republic of China, initially focusing on Ganzhou, Jiangxi Province [28](index=28&type=chunk) - On June 9, 2025, the Group established a new subsidiary, Jiangxi Jinsheng Holdings Development Co., Ltd., in Ganzhou, Jiangxi Province, China, wholly owned by Hong Kong Jinling Capital [28](index=28&type=chunk) [12. Trade and Other Receivables](index=11&type=section&id=12.%20Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables significantly decreased, primarily due to a substantial decline in trade receivables, while other receivables and prepaid insurance remained relatively stable Trade and Other Receivables (As of June 30, 2025) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade Receivables | 315 | 19,872 | | Other Receivables | 2,334 | 2,207 | | Prepaid Insurance | 2,585 | 3,262 | | **Total** | **5,234** | **25,341** | Ageing Analysis of Trade Receivables (As of June 30, 2025) | Ageing | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | 0 to 30 days | – | 17,164 | | 31 to 90 days | – | 1,130 | | Over 90 days | 315 | 1,578 | | **Total** | **315** | **19,872** | - As of June 30, 2025, and December 31, 2024, the Group assessed the loss allowance and expected credit loss rate under HKFRS 9 as immaterial [33](index=33&type=chunk) [13. Contract Assets and Contract Liabilities](index=12&type=section&id=13.%20Contract%20Assets%20and%20Contract%20Liabilities) As of June 30, 2025, contract assets significantly increased due to growth in unbilled revenue, while contract liabilities substantially decreased Contract Assets (As of June 30, 2025) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Unbilled Revenue | 18,941 | 7,708 | | Retention Receivables | 3,685 | 6,152 | | **Total** | **22,626** | **13,860** | Contract Liabilities (As of June 30, 2025) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Contract Liabilities Arising from Payments Received in Advance of Construction Contracts | 1,038 | 3,136 | - Changes in contract assets are primarily due to variations in unbilled revenue from completed and verified contract works during the year, and changes in retention receivables due to a decrease in ongoing and completed contracts under the defect liability period [38](index=38&type=chunk) [14. Trade and Other Payables](index=13&type=section&id=14.%20Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables significantly decreased, primarily due to a decline in both trade payables and accrued expenses and other payables Trade and Other Payables (As of June 30, 2025) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade Payables | 16,228 | 23,021 | | Accrued Expenses and Other Payables | 843 | 1,732 | | **Total** | **17,071** | **24,753** | Ageing Analysis of Trade Payables (As of June 30, 2025) | Ageing | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | 0 to 30 days | 16,004 | 22,398 | | 31 to 365 days | – | 399 | | Over 365 days | 224 | 224 | | **Total** | **16,228** | **23,021** | [15. Share Capital](index=13&type=section&id=15.%20Share%20Capital) As of June 30, 2025, the company's authorized and issued and fully paid share capital remained unchanged Share Capital Information (As of June 30, 2025) | Item | Number of Shares | HK$ thousand | | :--- | :--- | :--- | | Authorized Share Capital | 1,000,000,000 | 10,000 | | Issued and Fully Paid Share Capital | 400,000,000 | 4,000 | [16. Related Party Transactions](index=14&type=section&id=16.%20Related%20Party%20Transactions) For the six months ended June 30, 2025, the remuneration of the Group's key management personnel increased Key Management Personnel Remuneration (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Salaries, Fees and Allowances | 3,433 | 3,132 | | Retirement Benefit Scheme Contributions | 36 | 36 | | **Total** | **3,469** | **3,168** | [17. Contingent Liabilities](index=14&type=section&id=17.%20Contingent%20Liabilities) The Group had no significant contingent liabilities as of June 30, 2025, and December 31, 2024 - The Group had no significant contingent liabilities as of June 30, 2025, and December 31, 2024 [46](index=46&type=chunk) [18. Approval of Interim Financial Statements](index=14&type=section&id=18.%20Approval%20of%20Interim%20Financial%20Statements) The interim financial report was approved and authorized for issue by the Board on August 27, 2025 - The interim financial report was approved and authorized for issue by the Board on August 27, 2025 [47](index=47&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a comprehensive discussion and analysis of the Group's business review, financial performance, liquidity, and other key operational aspects [Business Review and Outlook](index=15&type=section&id=Business%20Review%20and%20Outlook) As a Hong Kong slope works contractor with expertise in landslide prevention and repair, the Group secured significant contracts, but the Board remains cautious on the outlook due to global economic uncertainties, adopting a more conservative approach to new project tenders - The Group is a slope works contractor in Hong Kong, undertaking slope works generally involving landslide prevention and repair to improve or maintain the stability of slopes and/or retaining walls [48](index=48&type=chunk) - For the six months ended June 30, 2025, the Group was awarded **18 contracts** with a total contract sum of approximately **HK$830.6 million**, including **17 ongoing contracts** totaling approximately **HK$827.3 million** [49](index=49&type=chunk) - The Hong Kong government is expected to spend **HK$1.32 billion** on landslide prevention and mitigation in 2025/26, up from **HK$1.27 billion** in 2024/25 [50](index=50&type=chunk) - Given global economic uncertainties, the Board aims to focus on existing projects and adopt a more conservative approach to new project tenders until market conditions become clearer [51](index=51&type=chunk) [Review of Financial Performance](index=17&type=section&id=Review%20of%20Financial%20Performance) The Group achieved significant revenue and profit growth during the reporting period, though gross profit margin declined, reflecting business expansion and cost structure adjustments [Revenue](index=17&type=section&id=Revenue) The Group's revenue increased by 54.9% year-on-year, primarily driven by an increase in public and small-to-medium scale projects - The Group's revenue increased by approximately **HK$46.6 million** or **54.9%** from approximately **HK$84.8 million** for the six months ended June 30, 2024, to approximately **HK$131.4 million** for the six months ended June 30, 2025 [52](index=52&type=chunk) - The significant increase in revenue was primarily due to an increase in both relatively larger public projects (with revenue recognized of **HK$10.0 million** or more) and relatively smaller projects (with revenue recognized between **HK$1.0 million** and **HK$5.0 million**) for the six months ended June 30, 2025 [52](index=52&type=chunk) Number of Projects with Revenue Recognized | Revenue Scale | 2025 | 2024 | | :--- | :--- | :--- | | HK$10.0 million or above | 5 | 4 | | HK$5.0 million to below HK$10.0 million | 1 | 3 | | HK$1.0 million to below HK$5.0 million | 7 | 4 | | Below HK$1.0 million | 4 | 7 | | **Total** | **17** | **18** | [Cost of Services](index=17&type=section&id=Cost%20of%20Services) Service costs increased by 56.4% to approximately HK$123.5 million, commensurate with the rise in revenue - Cost of services increased by approximately **HK$44.6 million** or **56.4%** from approximately **HK$78.9 million** for the six months ended June 30, 2024, to approximately **HK$123.5 million** for the six months ended June 30, 2025 [55](index=55&type=chunk) - The increase in related cost of services was primarily due to the aforementioned increase in the Group's revenue [55](index=55&type=chunk) [Gross Profit and Gross Profit Margin](index=18&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) Gross profit grew by 34.3% to HK$7.9 million, but gross profit margin decreased from 6.9% to 6.0%, mainly because the growth in service costs outpaced revenue growth, particularly due to increased subcontracting costs from completing major public projects - Gross profit increased by approximately **HK$2.0 million** or **34.3%** from approximately **HK$5.9 million** for the six months ended June 30, 2024, to approximately **HK$7.9 million** for the six months ended June 30, 2025 [56](index=56&type=chunk) - Gross profit margin decreased from approximately **6.9%** for the six months ended June 30, 2024, to approximately **6.0%** for the six months ended June 30, 2025 [56](index=56&type=chunk) - The decrease in gross profit margin was mainly due to a disproportionate increase in our cost of services compared to the increase in revenue, resulting from increased subcontracting costs incurred for the completion of two major public projects at the end of the period [56](index=56&type=chunk) [Other Income, Gains and Losses](index=18&type=section&id=Other%20Income,%20Gains%20and%20Losses) Other income, gains, and losses slightly increased, primarily due to higher gains from the disposal of property, plant, and equipment offsetting reduced bank interest income - Other income, gains and losses increased by approximately **HK$48,000** from approximately **HK$811,000** for the six months ended June 30, 2024, to approximately **HK$859,000** for the six months ended June 30, 2025 [57](index=57&type=chunk) - This increase was mainly due to an increase in gains from disposal of property, plant and equipment of approximately **HK$195,000**, offset by a decrease in bank interest income of approximately **HK$149,000** [57](index=57&type=chunk) [Administrative Expenses](index=18&type=section&id=Administrative%20Expenses) Administrative expenses increased by 6.3% to HK$4.8 million due to higher staff costs - Administrative expenses increased by approximately **HK$0.3 million** or **6.3%** from approximately **HK$4.5 million** for the six months ended June 30, 2024, to approximately **HK$4.8 million** for the six months ended June 30, 2025 [58](index=58&type=chunk) - The increase in administrative expenses was due to higher staff costs [58](index=58&type=chunk) [Finance Costs](index=18&type=section&id=Finance%20Costs) Finance costs slightly decreased, primarily due to the settlement of lease liabilities - The Group's finance costs were approximately **HK$30,000** and **HK$32,000** for the six months ended June 30, 2025 and 2024, respectively, arising from lease liabilities [59](index=59&type=chunk) - The decrease in finance costs was due to the settlement of lease liabilities from prior years [59](index=59&type=chunk) [Income Tax Expense](index=18&type=section&id=Income%20Tax%20Expense) Income tax expense decreased by approximately HK$0.3 million to HK$0.2 million, driven by a reduction in deferred tax expense - Income tax expense decreased by approximately **HK$0.3 million** from approximately **HK$0.4 million** for the six months ended June 30, 2024, to approximately **HK$0.2 million** for the six months ended June 30, 2025 [60](index=60&type=chunk) - This decrease resulted from a reduction in deferred tax expense [60](index=60&type=chunk) [Profit and Total Comprehensive Income for the Period](index=19&type=section&id=Profit%20and%20Total%20Comprehensive%20Income%20for%20the%20Period) Profit and total comprehensive income for the period significantly increased by 121.2% to HK$3.7 million, primarily attributable to the rise in revenue and gross profit - Profit and total comprehensive income increased by approximately **HK$2.0 million** or **121.2%** from approximately **HK$1.7 million** for the six months ended June 30, 2024, to approximately **HK$3.7 million** for the six months ended June 30, 2025 [61](index=61&type=chunk) - This increase was mainly attributable to the increase in revenue and gross profit for the six months ended June 30, 2025 [61](index=61&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=19&type=section&id=Liquidity,%20Financial%20Resources%20and%20Capital%20Structure) The Group's net current assets and cash and bank balances both increased, leading to a significant improvement in the current ratio, but the gearing ratio substantially rose due to bond issuance - As of June 30, 2025, the Group recorded net current assets of approximately **HK$80.5 million** (December 31, 2024: approximately HK$74.9 million) [62](index=62&type=chunk) - As of June 30, 2025, the Group's cash and bank balances were approximately **HK$70.4 million** (December 31, 2024: approximately HK$63.4 million) [62](index=62&type=chunk) - As of June 30, 2025, the current ratio was approximately **5.3 times** (December 31, 2024: approximately 3.6 times) [63](index=63&type=chunk) - As of June 30, 2025, the gearing ratio was approximately **47.6%** (December 31, 2024: approximately 1.4%), primarily due to the bond issuance on June 25, 2025 [64](index=64&type=chunk) [Treasury Policy](index=20&type=section&id=Treasury%20Policy) The Group adopts a prudent financial management approach for its treasury policy, maintaining a robust liquidity position and mitigating credit risk through continuous customer credit assessments - The Group has adopted a prudent financial management approach for its treasury policy, thus maintaining a robust liquidity position for the six months ended June 30, 2025 [66](index=66&type=chunk) - The Group is committed to reducing credit risk through continuous credit and financial assessments of its customers [66](index=66&type=chunk) [Capital Expenditure](index=20&type=section&id=Capital%20Expenditure) For the six months ended June 30, 2025, the Group's capital expenditure on property, plant, and equipment was HK$0.2 million, primarily funded by internal resources - For the six months ended June 30, 2025, the Group invested approximately **HK$0.2 million** in the acquisition of property, plant and equipment [67](index=67&type=chunk) - Capital expenditure was primarily funded by internal resources [67](index=67&type=chunk) [Foreign Exchange Risk](index=20&type=section&id=Foreign%20Exchange%20Risk) The Group primarily operates in Hong Kong and faced no foreign exchange risk for the six months ended June 30, 2025, thus no foreign exchange hedging was undertaken - The Group primarily operates in Hong Kong and did not face any foreign exchange risk for the six months ended June 30, 2025 [68](index=68&type=chunk) - The Directors consider the Group's foreign exchange risk to be insignificant, and no foreign exchange hedging was undertaken for the six months ended June 30, 2025 [68](index=68&type=chunk) [Contingent Liabilities](index=20&type=section&id=Contingent%20Liabilities) The Group had no contingent liabilities as of June 30, 2025, and December 31, 2024 - The Group had no contingent liabilities as of June 30, 2025, and December 31, 2024 [69](index=69&type=chunk) [Pledge of Assets](index=20&type=section&id=Pledge%20of%20Assets) The Group had no assets pledged as of June 30, 2025, and December 31, 2024 - The Group had no assets pledged as of June 30, 2025, and December 31, 2024 [70](index=70&type=chunk) [Material Investments, Material Acquisitions or Disposals](index=20&type=section&id=Material%20Investments,%20Material%20Acquisitions%20or%20Disposals) For the six months ended June 30, 2025, the Group held no material investments, material acquisitions, or disposals of subsidiaries, associates, and joint ventures - For the six months ended June 30, 2025, the Group held no material investments, material acquisitions or disposals of subsidiaries, associates, and joint ventures [71](index=71&type=chunk) [Use of Proceeds from Bonds](index=21&type=section&id=Use%20of%20Proceeds%20from%20Bonds) The Group intended to use the net proceeds from the bonds to support its strategic entry into China's industrial park management sector, initially focusing on Ganzhou, Jiangxi Province, allocating funds to its Chinese subsidiary for preliminary preparations and trial operations - The net proceeds from the proposed bond issuance were intended to support the Group's strategic entry into the industrial park management sector in the People's Republic of China, initially focusing on Ganzhou, Jiangxi Province [72](index=72&type=chunk) - These funds would be allocated to a subsidiary of the Group for preliminary preparations and trial operations within its licensed business scope [72](index=72&type=chunk) [Future Plans for Material Investments or Capital Assets](index=21&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) Apart from the use of bond proceeds, the Group has no other plans for material investments or capital assets - Save for what is disclosed in the section "Use of Proceeds from Bonds" above, the Group has no other plans for material investments or capital assets [73](index=73&type=chunk) [Environmental Policies and Performance](index=21&type=section&id=Environmental%20Policies%20and%20Performance) The Group is committed to environmental protection, implementing measures to minimize its environmental impact and ensuring compliance with all applicable Hong Kong environmental laws and regulations, with no reported violations during the period - The Group has implemented various environmental protection measures, such as reducing air pollutant emissions and noise assessments, to minimize the impact of its operations on the environment and natural resources [74](index=74&type=chunk) - As of the date of this announcement, the Group has not been subject to any prosecutions, fines, or penalties for breaching any applicable environmental laws or regulations [74](index=74&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company and its Associated Corporations](index=22&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20and%20its%20Associated%20Corporations) As of June 30, 2025, Mr. Tse Shing Kee and Mr. Ho Ka Ki, as controlling shareholders, each jointly held 75% of the company's shares through Peak Investment Limited Directors' Long Positions in Shares and Underlying Shares of the Company and its Associated Corporations (As of June 30, 2025) | Director Name | Associated Company | Nature of Interest/Capacity | Number of Ordinary Shares Held | Percentage of Interest | | :--- | :--- | :--- | :--- | :--- | | Mr. Tse | The Company | Interest in controlled corporation/Jointly held interest with another person | 300,000,000 shares (L) | 75% | | Mr. Tse | Peak Investment Limited | Beneficial owner | 2 shares (L) | 50% | | Mr. Ho | The Company | Interest in controlled corporation/Jointly held interest with another person | 300,000,000 shares (L) | 75% | | Mr. Ho | Peak Investment Limited | Beneficial owner | 2 shares (L) | 50% | - These **300,000,000 shares** are held by Peak Investment Limited, which is directly held by Mr. Tse and Mr. Ho in equal shares, thus Mr. Tse and Mr. Ho are deemed to be interested in the **300,000,000 shares** jointly held through Peak Investment Limited under the SFO [79](index=79&type=chunk) [Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company and its Associated Corporations](index=23&type=section&id=Substantial%20Shareholders'%20and%20Other%20Persons'%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20and%20its%20Associated%20Corporations) As of June 30, 2025, Peak Investment Limited held 75% of the company's shares, and the spouses of Mr. Tse Shing Kee and Mr. Ho Ka Ki were also deemed to hold the same proportion of shares due to spousal interests Interests of Substantial Shareholders and Other Persons in the Issued Share Capital of the Company (As of June 30, 2025) | Shareholder Name/Name | Nature of Interest/Capacity | Number of Ordinary Shares Held | Percentage of Interest | | :--- | :--- | :--- | :--- | | Peak Investment Limited | Beneficial owner | 300,000,000 shares (L) | 75% | | Ms. Cao Hongmei | Spouse's interest | 300,000,000 shares (L) | 75% | | Ms. Li Jianqin | Spouse's interest | 300,000,000 shares (L) | 75% | - Ms. Cao Hongmei is the spouse of Mr. Tse, and Ms. Li Jianqin is the spouse of Mr. Ho; under Part XV of the SFO, they are deemed to be interested in the shares of the Company held by their respective spouses [84](index=84&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=24&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20Listed%20Securities) For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any shares - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold or redeemed any shares [83](index=83&type=chunk) [Share Option Scheme](index=25&type=section&id=Share%20Option%20Scheme) The company adopted a share option scheme as an incentive to reward eligible participants for their contributions, with limits on total shares issuable and individual allocations, and a maximum exercise period of 10 years, but no options have been granted since adoption - The Share Option Scheme is a share incentive scheme designed to enable the Company to grant options to eligible participants as a reward or return for their contributions to the Group [86](index=86&type=chunk) - The total number of shares available for issue under the Share Option Scheme shall not exceed **10%** of the shares in issue at the time of initial listing on the Stock Exchange (i.e., **40,000,000 shares**) [89](index=89&type=chunk) - The total number of issued shares that may be issued to each grantee upon exercise of options granted under the Share Option Scheme and any other share option schemes of the Group in any 12-month period shall not exceed **1%** of the Company's then issued share capital [90](index=90&type=chunk) - No options have been granted under the Share Option Scheme since its adoption, therefore, as of the date of this announcement, there are no outstanding options under the Share Option Scheme [94](index=94&type=chunk) [Directors' Securities Transactions](index=27&type=section&id=Directors'%20Securities%20Transactions) The company adopted the Model Code as its code of conduct for directors' securities transactions and confirmed that all directors and relevant employees complied with the requirements for the six months ended June 30, 2025 - The Company has adopted the Model Code as its code of conduct for directors' securities transactions [95](index=95&type=chunk) - Following specific inquiries with all Directors, all Directors confirmed that they had complied with the required standards for securities transactions set out in the Model Code for the six months ended June 30, 2025 [95](index=95&type=chunk) [Competing Business](index=27&type=section&id=Competing%20Business) The Directors confirmed that, from the listing date up to the date of this announcement, no controlling shareholder or Director and their respective close associates held any interest in any business directly or indirectly competing with the Group's business - The Directors confirmed that, from the listing date up to the date of this announcement, no controlling shareholder or Director and their respective close associates held any interest in any business (other than the Group's business) that directly or indirectly competes or may compete with the Group's business [96](index=96&type=chunk) [Employees and Remuneration Policy](index=27&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group's employee count increased to 180, with a corresponding rise in total staff costs, and its remuneration policy aligns with market practices based on individual performance and experience - As of June 30, 2025, the Group had **180 employees** (December 31, 2024: 150 employees), excluding Directors [97](index=97&type=chunk) - For the six months ended June 30, 2025, total staff costs (excluding Directors' emoluments) were approximately **HK$26.2 million** (June 30, 2024: HK$20.1 million) [99](index=99&type=chunk) - The Group's remuneration policy is consistent with prevailing market practices, and employee remuneration is determined based on individual performance and experience [99](index=99&type=chunk) [Corporate Governance Practices](index=28&type=section&id=Corporate%20Governance%20Practices) The Group is committed to achieving high standards of corporate governance, having adopted the principles and code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules, and believes it has complied with all applicable code provisions as of this announcement date - The Group has adopted the principles and code provisions of the Corporate Governance Code set out in Appendix C1 to the Listing Rules as the basis for its corporate governance practices [100](index=100&type=chunk) - The Board believes that the Group has complied with all applicable code provisions set out in the Corporate Governance Code as of the date of this announcement [100](index=100&type=chunk) [Audit Committee](index=28&type=section&id=Audit%20Committee) The company has established an Audit Committee comprising four members, with Chairman Mr. Cao Bingchang possessing over 21 years of professional accounting experience, and the committee has reviewed the interim financial statements, deeming them compliant with accounting standards and requirements - The Audit Committee comprises four members: Mr. Cao Bingchang, Ms. Zhao Shaoling, Mr. Kuang Zhicheng, and Mr. Ling Zhaozeng [101](index=101&type=chunk) - Mr. Cao Bingchang, the Chairman of the Audit Committee, is a practicing accountant with over **21 years** of professional accounting experience [101](index=101&type=chunk) - This announcement and the unaudited condensed consolidated interim financial statements have not been audited by the Company's external auditor but have been reviewed by the Company's Audit Committee, which considers them to be in compliance with applicable accounting standards and requirements and to have made appropriate disclosures [101](index=101&type=chunk) [Interim Dividend](index=28&type=section&id=Interim%20Dividend) The Board does not recommend an interim dividend for the period ended June 30, 2025, but a special dividend of 17.5 HK cents per share was paid in 2024 - The Board does not recommend an interim dividend for the period ended June 30, 2025 (six months ended June 30, 2024: nil HK cents) [102](index=102&type=chunk) - At the Board meeting held on January 19, 2024, the Board recommended a special dividend of **17.5 HK cents** per ordinary share, totaling **HK$70,000,000**, which was paid on February 16, 2024 [103](index=103&type=chunk) [Events After Reporting Period](index=29&type=section&id=Events%20After%20Reporting%20Period) After the reporting period, the Group decided not to proceed with its plan to expand into China's management services industry and fully redeemed previously issued bonds on July 25, 2025, to streamline its capital structure and retain financial flexibility - The Group has decided not to proceed with the proposed expansion into China's management services industry at this stage [105](index=105&type=chunk) - Following amicable discussions with the subscribers, the Group reached an agreement to fully redeem and settle the bonds in cash on July 25, 2025, without any accrued interest [105](index=105&type=chunk) - The Group believes that completing this transaction is an appropriate and timely step to streamline its capital structure and retain financial flexibility for future strategic developments [105](index=105&type=chunk) [By Order of the Board](index=29&type=section&id=By%20Order%20of%20the%20Board) This announcement is issued by Mr. Tse Shing Kee, Chairman of Fung Shing Holdings Limited, on behalf of the Board, listing the Board members as of the announcement date - This announcement is issued by Mr. Tse Shing Kee, Chairman of Fung Shing Holdings Limited, by order of the Board [106](index=106&type=chunk) - As of the date of this announcement, the Board comprises executive Directors Mr. Tse Shing Kee (Chairman of the Board) and Mr. Ho Ka Ki (Chief Executive Officer), and independent non-executive Directors Ms. Zhao Shaoling, Mr. Kuang Zhicheng, Mr. Ling Zhaozeng, and Mr. Cao Bingchang [107](index=107&type=chunk)