Company Information This section details the company's governance structure, including its board and committees, along with essential registration and operational details [Board of Directors and Committee Composition](index=3&type=section&id=Board%20of%20Directors%20and%20Committee%20Composition) The company's Board of Directors comprises executive, non-executive, and independent non-executive directors, supported by audit, remuneration, and nomination committees to ensure robust corporate governance - The Board members include Mr. Ji Hulin (Chairman), Mr. Wu Yinghua (resigned), Mr. Xue Zhicheng, Mr. Pan Mingfeng, Dr. Teng Songsong (appointed), and Mr. Wu Shengquan (resigned) as executive directors[5](index=5&type=chunk) - The Audit Committee is chaired by Mr. Zhang Tingji, the Remuneration Committee by Ms. Zhang Yan, and the Nomination Committee by Mr. Ji Hulin[5](index=5&type=chunk) [Registration and Operational Information](index=4&type=section&id=Registration%20and%20Operational%20Information) The company is registered in the Cayman Islands, with its principal place of business in Hong Kong, and its shares are listed on the Main Board of the Hong Kong Stock Exchange under stock code 00629 - The company's registered office is in the Cayman Islands, and its principal place of business is in Shun Tak Centre, Sheung Wan, Hong Kong[6](index=6&type=chunk) - The company's shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited under stock code 00629[6](index=6&type=chunk) Condensed Consolidated Financial Statements This section presents the company's financial performance, position, equity changes, and cash flows for the reporting period [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, total revenue was **32,256 thousand RMB**, a decrease from **38,299 thousand RMB** in the prior period, with profit and total comprehensive income for the period at **15,353 thousand RMB**, down **16.3%** year-on-year Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 32,256 | 38,299 | -15.8 | | Other gains and (losses), net | (1,090) | 2,404 | -145.3 | | Net reversal of expected credit losses | 1,137 | 2,069 | -45.0 | | Finance costs | (2,280) | (6,269) | -63.6 | | Profit before tax | 23,921 | 26,198 | -8.7 | | Income tax expense | (8,568) | (7,856) | 9.1 | | Profit and total comprehensive income for the period | 15,353 | 18,342 | -16.3 | | Basic earnings per share | RMB 1.31 cents | RMB 1.57 cents | -16.6 | - The decrease in revenue was primarily due to reduced income from telecommunication factoring business, despite growth in traditional factoring business[8](index=8&type=chunk) [Condensed Consolidated Statement of Financial Position](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets less current liabilities were **469,849 thousand RMB**, an increase from **457,642 thousand RMB** at December 31, 2024, with factoring receivables and other assets slightly decreasing overall but significantly increasing in the non-current portion Condensed Consolidated Statement of Financial Position (As of June 30) | Metric | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | **ASSETS** | | | | | Non-current assets | 185,491 | 59,781 | 210.3 | | Current assets | 597,301 | 685,625 | -12.9 | | Factoring receivables and other assets (non-current) | 182,161 | 56,274 | 223.7 | | Factoring receivables and other assets (current) | 518,473 | 659,207 | -21.4 | | Cash and cash equivalents | 68,965 | 16,947 | 306.9 | | **LIABILITIES** | | | | | Current liabilities | 312,943 | 287,764 | 8.7 | | Bank and other borrowings | 120,000 | 80,000 | 50.0 | | Non-current liabilities | 15,835 | 14,055 | 12.7 | | **EQUITY** | | | | | Equity attributable to owners of the Company | 454,014 | 443,587 | 2.4 | | Total assets less current liabilities | 469,849 | 457,642 | 2.7 | - Factoring receivables and other assets within non-current assets significantly increased, while the current portion decreased, indicating an adjustment in asset structure[9](index=9&type=chunk) - Cash and cash equivalents significantly increased, and bank and other borrowings within current liabilities also rose[9](index=9&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, equity attributable to owners of the Company increased from **443,587 thousand RMB** at the beginning of the period to **454,014 thousand RMB**, primarily driven by profit for the period despite dividend payments Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30) | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Equity attributable to owners of the Company at beginning of period | 443,587 | 431,698 | | Dividends paid | (4,926) | (4,569) | | Profit and total comprehensive income for the period | 15,353 | 18,342 | | Equity attributable to owners of the Company at end of period | 454,014 | 445,471 | - Profit and total comprehensive income for the period was the primary driver of equity growth, though dividends paid had a negative impact on equity[11](index=11&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operating activities shifted from a net outflow to a net inflow year-on-year, net cash from financing activities decreased, and cash and cash equivalents at period-end significantly increased Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Net cash generated from (used in) operating activities | 30,533 | (65,759) | | Net cash used in investing activities | (449) | (382) | | Net cash generated from financing activities | 21,934 | 36,118 | | Net increase (decrease) in cash and cash equivalents | 52,018 | (30,023) | | Cash and cash equivalents at end of period | 68,965 | 11,038 | - Operating cash flow turned positive from negative, indicating improved cash generation from the company's core operations[13](index=13&type=chunk) - Significantly increased new bank and other borrowings, coupled with increased repayment of amounts due to related parties, led to a decrease in net cash from financing activities[13](index=13&type=chunk) Notes to the Condensed Consolidated Financial Statements This section provides detailed explanations and breakdowns of the figures presented in the condensed consolidated financial statements [1. Basis of Preparation and Principal Accounting Policies](index=10&type=section&id=1.%20Basis%20of%20Preparation%20and%20Principal%20Accounting%20Policies) The condensed consolidated financial statements are prepared in accordance with HKAS 34 and Appendix D2 of the Listing Rules, using the historical cost convention, with new HKFRS amendments applied for the first time this period having no material impact on financial position or performance - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of Appendix D2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[14](index=14&type=chunk) - The application of amendments to Hong Kong Financial Reporting Standards during this interim period, such as the amendment to HKAS 21 'Lack of Exchangeability', has not had a material impact on the Group's financial position or performance[16](index=16&type=chunk) [3. Revenue and Segment Information](index=11&type=section&id=3.%20Revenue%20and%20Segment%20Information) The company's revenue primarily stems from traditional and telecommunication factoring businesses, with total revenue for the period at **32,256 thousand RMB**, a **15.8%** year-on-year decrease, driven by growth in traditional factoring but a significant decline in telecommunication factoring income Revenue Composition (For the six months ended June 30) | Revenue Source | 2025 (thousand RMB) | 2024 (thousand RMB) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Traditional factoring business | 25,578 | 21,990 | 16.3 | | Telecommunication factoring business | 6,678 | 16,309 | -59.0 | | **Total Revenue** | **32,256** | **38,299** | **-15.8** | - Traditional factoring business revenue grew by **16.3%**, while telecommunication factoring business revenue decreased by **59.0%**, leading to a reduction in total revenue[18](index=18&type=chunk) [4. Other Gains and (Losses), Net](index=12&type=section&id=4.%20Other%20Gains%20and%20%28Losses%29%2C%20Net) Other gains and losses, net, for the period amounted to **(1,090) thousand RMB**, a significant decrease from **2,404 thousand RMB** in the prior period, primarily due to reduced fair value gains on financial assets at fair value through profit or loss Other Gains and (Losses), Net (For the six months ended June 30) | Item | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Net exchange losses | (86) | (439) | | Loss on remeasurement of financial guarantee contracts | (1,004) | (1,429) | | Fair value gains on financial assets at fair value through profit or loss | – | 4,291 | | Loss on disposal of property, plant and equipment | – | (19) | | **Total** | **(1,090)** | **2,404** | - The prior period included **4,291 thousand RMB** in fair value gains on financial assets, which was zero this period, significantly contributing to the overall decrease[20](index=20&type=chunk) [5. Finance Costs](index=12&type=section&id=5.%20Finance%20Costs) For the six months ended June 30, 2025, finance costs were **2,280 thousand RMB**, a significant decrease from **6,269 thousand RMB** in the prior period, primarily due to reduced interest incurred from asset-backed financing arrangements Finance Costs (For the six months ended June 30) | Item | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Interest on bank and other borrowings | 2,245 | 2,886 | | Interest incurred from asset-backed financing arrangements | – | 3,338 | | Interest on lease liabilities | 35 | 45 | | **Total** | **2,280** | **6,269** | - There was no interest incurred from asset-backed financing arrangements this period, compared to **3,338 thousand RMB** in the prior period, which is the main reason for the decrease in finance costs[22](index=22&type=chunk) [6. Income Tax Expense](index=13&type=section&id=6.%20Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense was **8,568 thousand RMB**, an increase from **7,856 thousand RMB** in the prior period, primarily due to changes in deferred tax Income Tax Expense (For the six months ended June 30) | Item | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Current tax | 6,443 | 7,880 | | Deferred tax | 2,125 | (24) | | **Total** | **8,568** | **7,856** | - The applicable income tax rate for the Group's PRC subsidiaries is **25%**[23](index=23&type=chunk) [8. Dividends](index=14&type=section&id=8.%20Dividends) The Company's directors have determined that no dividends will be paid for the six months ended June 30, 2025, with the 2024 final dividend of **4,926 thousand RMB** recognized as a distribution during the period Dividends (For the six months ended June 30) | Item | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Dividends recognized as distribution to owners of the Company during the period | 4,926 | 4,569 | - The Board does not recommend the payment of an interim dividend for the first half of 2025[26](index=26&type=chunk) [9. Earnings Per Share](index=14&type=section&id=9.%20Earnings%20Per%20Share) For the six months ended June 30, 2025, basic earnings per share decreased to **RMB 1.31 cents** from **RMB 1.57 cents** in the prior period, with no diluted earnings presented due to the absence of potential ordinary shares Earnings Per Share Calculation (For the six months ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company (thousand RMB) | 15,353 | 18,342 | | Weighted average number of ordinary shares (shares) | 1,168,626,516 | 1,168,626,516 | | Basic earnings per share | RMB 1.31 cents | RMB 1.57 cents | - The decrease in basic earnings per share is consistent with the downward trend in profit for the period[28](index=28&type=chunk) [10. Movements in Property, Plant and Equipment and Right-of-Use Assets](index=15&type=section&id=10.%20Movements%20in%20Property%2C%20Plant%20and%20Equipment%20and%20Right-of-Use%20Assets) For the six months ended June 30, 2025, the Group made no acquisitions of property, plant and equipment, but recognized **467 thousand RMB** in right-of-use assets and lease liabilities from a new staff dormitory lease agreement - The amount of property, plant and equipment acquired this period was zero, compared to **6 thousand RMB** in the prior period[29](index=29&type=chunk) - Due to a new lease agreement, **467 thousand RMB** in right-of-use assets and **467 thousand RMB** in lease liabilities were recognized[29](index=29&type=chunk) [11. Factoring Receivables and Other Assets](index=15&type=section&id=11.%20Factoring%20Receivables%20and%20Other%20Assets) As of June 30, 2025, total factoring receivables were **697,889 thousand RMB**, a slight decrease from **711,242 thousand RMB** at December 31, 2024, with a significant increase in the non-current portion and a decrease in the current portion Factoring Receivables and Other Assets (As of June 30) | Item | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Traditional factoring business | 667,389 | 649,620 | | Telecommunication factoring business | 30,500 | 61,622 | | **Total factoring receivables** | **697,889** | **711,242** | | Current portion | 518,473 | 659,207 | | Non-current portion | 182,161 | 56,274 | - Telecommunication factoring receivables significantly decreased, while traditional factoring receivables increased[30](index=30&type=chunk) - Non-current factoring receivables increased from **56,274 thousand RMB** to **182,161 thousand RMB**, indicating a higher proportion of long-term receivables[30](index=30&type=chunk) [12. Amounts Due from/to Related Parties](index=16&type=section&id=12.%20Amounts%20Due%20from%2Fto%20Related%20Parties) As of June 30, 2025, amounts due from related parties were **9,863 thousand RMB**, and amounts due to related parties were **182,176 thousand RMB**, all of which are unsecured, interest-free, and repayable on demand Amounts Due from Related Parties (As of June 30) | Name of Related Party | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Yueda Mining Co., Ltd. | 4,153 | 4,170 | | Yueda Capital (Hong Kong) Co., Limited | 5,710 | 5,301 | | **Total** | **9,863** | **9,471** | Amounts Due to Related Parties (As of June 30) | Name of Related Party | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Yueda Capital Co., Ltd. | 106,600 | 117,000 | | Yueda Capital (Hong Kong) | 71,202 | 71,313 | | Yueda Group (Hong Kong) Co., Limited | 4,374 | 4,440 | | **Total** | **182,176** | **192,753** | - Amounts due to related parties decreased, primarily from Yueda Capital Co., Ltd[32](index=32&type=chunk) [13. Other Payables and Liabilities](index=17&type=section&id=13.%20Other%20Payables%20and%20Liabilities) As of June 30, 2025, total other payables and liabilities were **7,583 thousand RMB**, a decrease from **13,350 thousand RMB** at December 31, 2024, mainly due to reduced accrued staff costs and other payables Other Payables and Liabilities (As of June 30) | Item | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Accrued staff costs | 866 | 2,343 | | Other payables and accrued expenses | 6,717 | 11,007 | | **Total** | **7,583** | **13,350** | - Both accrued staff costs and other payables significantly decreased[33](index=33&type=chunk) [14. Bank and Other Borrowings](index=17&type=section&id=14.%20Bank%20and%20Other%20Borrowings) As of June 30, 2025, total bank and other borrowings repayable within one year were **120,000 thousand RMB**, an increase from **80,000 thousand RMB** at December 31, 2024, primarily due to new other loans Bank and Other Borrowings (As of June 30) | Item | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Secured bank loans | 50,000 | 80,000 | | Other loans | 70,000 | – | | **Total** | **120,000** | **80,000** | - Total new borrowings obtained this period amounted to **140,000 thousand RMB**, compared to **100,000 thousand RMB** in the prior period[34](index=34&type=chunk) - Bank loans are secured by the Group's factoring receivables and guaranteed by Jiangsu Yueda Group Co., Ltd[35](index=35&type=chunk) [15. Share Capital](index=18&type=section&id=15.%20Share%20Capital) As of June 30, 2025, the company's issued and fully paid share capital remained unchanged at **1,168,626,516 shares**, amounting to **105,965 thousand RMB**, consistent with the prior period and year-end Share Capital Information (As of June 30) | Item | Number of Shares | Amount (thousand HKD) | Amount (thousand RMB) | | :--- | :--- | :--- | :--- | | Authorised share capital (par value HKD 0.10 per share) | 2,000,000,000 | 200,000 | Not applicable | | Issued and fully paid share capital (par value HKD 0.10 per share) | 1,168,626,516 | 116,863 | 105,965 | - The share capital structure remained unchanged during the period[36](index=36&type=chunk) [16. Related Party Disclosures](index=18&type=section&id=16.%20Related%20Party%20Disclosures) The Group, ultimately controlled by the Chinese government, engaged in various related party transactions with Jiangsu Yueda Group subsidiaries, primarily involving traditional factoring business revenue and receivables, while key management personnel compensation decreased - The Company is ultimately controlled by the Chinese government, with its ultimate parent company being Jiangsu Yueda Group Co., Ltd., which is controlled by Yancheng Municipal People's Government[37](index=37&type=chunk) Related Party Transactions with Jiangsu Yueda Subsidiaries (For the six months ended June 30) | Name of Related Party | Nature of Transaction | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | :--- | | Jiangsu Yueda Green Building Technology Co., Ltd. | Revenue from traditional factoring business | 54 | 3,033 | | Jiangsu Yueda Saifu Energy Saving Technology Co., Ltd. | Revenue from traditional factoring business | 12 | 126 | - Revenue from traditional factoring business with related parties significantly decreased[39](index=39&type=chunk) Key Management Personnel Compensation (For the six months ended June 30) | Item | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Short-term benefits | 1,257 | 1,548 | | Post-employment benefits | 224 | 155 | | **Total** | **1,481** | **1,703** | Management Discussion and Analysis This section provides an overview of the Group's financial performance, business operations, future plans, and financial resources, along with corporate governance and employee policies [Financial Performance and Interim Dividends](index=21&type=section&id=Financial%20Performance%20and%20Interim%20Dividends) For the six months ended June 30, 2025, the Group's operating revenue was **32,256 thousand RMB**, profit and total comprehensive income for the period was **15,353 thousand RMB**, and basic earnings per share was **RMB 1.31 cents**, all decreasing year-on-year, with the Board not recommending an interim dividend Key Financial Indicators (For the six months ended June 30) | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Operating revenue | 32,256 | 38,299 | -15.8 | | Profit and total comprehensive income for the period | 15,353 | 18,342 | -16.3 | | Basic earnings per share | RMB 1.31 cents | RMB 1.57 cents | -16.6 | - The decrease in operating revenue was mainly due to a weaker-than-expected recovery in China's consumer market and the Group's business rebalancing, leading to reduced income from telecommunication factoring business[44](index=44&type=chunk) - The Board does not recommend the payment of an interim dividend for the period[45](index=45&type=chunk) [Review of Commercial Factoring Business](index=21&type=section&id=Review%20of%20Commercial%20Factoring%20Business) The Group primarily engages in commercial factoring, encompassing traditional and telecommunication factoring, with traditional factoring revenue growing by serving state-owned enterprise clients under stringent risk control, while telecommunication factoring revenue significantly declined but mitigated risk through AI and manual assessment - Commercial factoring business recorded operating revenue of **32,256 thousand RMB** for the period, a year-on-year decrease[47](index=47&type=chunk) - Traditional factoring business had a total principal amount of financing receivables of approximately **667,000 thousand RMB**, with interest income of approximately **25,503 thousand RMB**, primarily serving large state-owned enterprises[48](index=48&type=chunk) - Telecommunication factoring business service fee income was approximately **6,678 thousand RMB**, with both the number of end customers and total outstanding amount significantly decreasing[54](index=54&type=chunk) - Telecommunication factoring business conducts credit assessments using AI systems and manual evaluation, and collaborates with professional technical service companies to share factoring financing losses, thereby mitigating risk[56](index=56&type=chunk)[57](index=57&type=chunk) [Traditional Factoring Business](index=22&type=section&id=Traditional%20Factoring%20Business) Traditional factoring business financing receivables principal increased to **667,000 thousand RMB**, with significant growth in interest income, primarily serving state-owned enterprise clients in the Yangtze River Delta region through stringent due diligence and risk assessment processes Traditional Factoring Business Financing Receivables Principal and Number of Clients (As of June 30) | Industry | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | June 30, 2025 (Number of Clients) | December 31, 2024 (Number of Clients) | | :--- | :--- | :--- | :--- | :--- | | Grain Sales | 50,000 | 50,000 | 1 | 1 | | Power Facilities | – | 45,000 | – | 1 | | Metal Material Trading | 45,000 | 45,000 | 1 | 1 | | Bulk Commodity Trading | 20,000 | 50,000 | 1 | 1 | | Building Materials Wholesale | 50,000 | – | 1 | – | | Engineering Construction | 502,000 | 460,060 | 11 | 12 | | **Total** | **667,000** | **650,060** | **15** | **16** | - The engineering construction industry accounted for **75.3%** of the total principal amount of traditional factoring business financing receivables, making it the primary source of business[52](index=52&type=chunk) - All traditional factoring receivables are secured by amounts due from customers and are not overdue[52](index=52&type=chunk) [Telecommunication Factoring Business](index=25&type=section&id=Telecommunication%20Factoring%20Business) Telecommunication factoring business service fee income significantly decreased to **6,678 thousand RMB**, with fewer end customers, while the company effectively manages end-customer default risk through AI and manual credit assessment, and debt collection measures in collaboration with third-party payment institutions - The number of end customers decreased from **225,000** to **145,000**, and the total outstanding amount decreased from **63,564 thousand RMB** to **31,332 thousand RMB**[54](index=54&type=chunk) - The Group has established cooperation arrangements with China's three major telecommunication operators, conducting business through third-party payment platforms[55](index=55&type=chunk) - Risk control measures include supplier identity verification, AI system assessment of default probability, manual contact with emergency contacts, and debt collectors for overdue payments[56](index=56&type=chunk)[57](index=57&type=chunk) [Aging Analysis and Impairment of Traditional and Telecommunication Factoring Businesses](index=28&type=section&id=Aging%20Analysis%20and%20Impairment%20of%20Traditional%20and%20Telecommunication%20Factoring%20Businesses) As of June 30, 2025, all outstanding financing receivables for traditional factoring were within one year and not overdue, while telecommunication factoring receivables were primarily over one year, with the Group using an expected credit loss model for impairment assessment, resulting in a net reversal of impairment losses of **(1,137) thousand RMB** for the period Aging Analysis of Outstanding Financing Receivables Principal (As of June 30) | Aging | Traditional Factoring Business (2025, thousand RMB) | Telecommunication Factoring Business (2025, thousand RMB) | Total (2025, thousand RMB) | | :--- | :--- | :--- | :--- | | Within 1 year | 667,000 | – | 667,000 | | Over 1 year but within 2 years | – | 9,974 | 9,974 | | Over 2 years | – | 21,358 | 21,358 | | **Total** | **667,000** | **31,332** | **698,332** | Movements in Impairment Provisions for Factoring Receivables (As of June 30) | Item | Traditional Factoring Business (thousand RMB) | Telecommunication Factoring Business (thousand RMB) | Total (thousand RMB) | | :--- | :--- | :--- | :--- | | As at December 31, 2024 | 1,507 | 1,942 | 3,449 | | Net reversal of impairment losses | (27) | (1,110) | (1,137) | | As at June 30, 2025 | 1,480 | 832 | 2,312 | - Traditional factoring business uses an individual assessment approach with an expected loss rate of approximately **0.22%**, while telecommunication factoring business uses a collective assessment approach, adjusting loss rates based on internal credit ratings and forward-looking information[61](index=61&type=chunk)[62](index=62&type=chunk) [Business Plan and Prospects](index=32&type=section&id=Business%20Plan%20and%20Prospects) The Group plans to further develop its existing factoring financial services and telecommunication factoring businesses, actively exploring potential investment opportunities, including the possible acquisition of Chengdu Nuoyide Medical Laboratory Co., Ltd., and will focus on factoring and seek diversified development in the second half of the year - The Group will continue to expand its traditional factoring business through its network of state-owned enterprises in China and conduct more stringent due diligence on potential new clients[67](index=67&type=chunk) - Telecommunication factoring services have a higher revenue rate than traditional factoring, and the Group has established cooperation arrangements with China's three major telecommunication operators[68](index=68&type=chunk) - The company intends to acquire a **30%** equity interest in Chengdu Nuoyide Medical Laboratory Co., Ltd. (with an investment of **30,000 thousand RMB**) and a **22%** equity interest (for a consideration of **22,000 thousand RMB**), making it a non-wholly owned subsidiary[69](index=69&type=chunk) - The directors are committed to seeking more business opportunities in other industries, such as the financial sector, to diversify the Group's business and enhance long-term shareholder value[72](index=72&type=chunk) [Liquidity and Financial Resources](index=33&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's current assets were **597,301 thousand RMB**, with a significant increase in cash and cash equivalents, a **2.4%** growth in net assets, and a gearing ratio of approximately **42.0%**, and the Group will continue to utilize internal resources, bank, and other borrowings for business development Liquidity and Financial Resources Overview (As of June 30) | Metric | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Current assets | 597,301 | 685,625 | | Cash and cash equivalents | 68,965 | 16,947 | | Net assets | 454,014 | 443,587 | | Gearing ratio | 42.0% | 40.5% | | Bank and other borrowings | 120,000 | 80,000 | - The Group's monetary assets, liabilities, and transactions are primarily denominated in RMB and HKD, with no hedging against exchange rate risk[75](index=75&type=chunk) - The Group's credit facilities are secured by total factoring receivables of **147,000 thousand RMB**, a significant increase from **50,000 thousand RMB** at the end of last year[78](index=78&type=chunk) [Employees and Remuneration Policy](index=35&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group employed **20 staff** across Hong Kong and mainland China, with remuneration policies regularly reviewed and employees provided with social insurance, MPF, and training courses, experiencing no significant recruitment difficulties or staff turnover during the period - The Group employed **20 staff** in management, administration, and commercial factoring-related businesses across Hong Kong and mainland China[79](index=79&type=chunk) - Remuneration policies are regularly reviewed based on employee performance, experience, and industry practice, providing social insurance, MPF, and training courses[79](index=79&type=chunk) [Corporate Governance](index=35&type=section&id=Corporate%20Governance) The Group has complied with the Corporate Governance Code in Appendix C1 of the Listing Rules, except for one non-executive director's absence from the AGM, with all directors confirming compliance with the Model Code for Securities Transactions, and the audit, remuneration, and nomination committees operating effectively - The Group has complied with all code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules, except for Mr. Li Biao, an executive director, who was unable to attend the annual general meeting[81](index=81&type=chunk) - All directors have confirmed their compliance with the Model Code for Securities Transactions by Directors of Listed Issuers throughout the period[82](index=82&type=chunk) - The Audit Committee, Remuneration Committee, and Nomination Committee have all been established and fulfilled their duties, including reviewing financial statements, internal controls, remuneration policies, and board composition[83](index=83&type=chunk)[84](index=84&type=chunk)[85](index=85&type=chunk) Other Information This section covers details regarding directors' and major shareholders' interests, the share option scheme, and the current board composition [Directors' and Major Shareholders' Interests](index=37&type=section&id=Directors%27%20and%20Major%20Shareholders%27%20Interests) As of June 30, 2025, certain directors held shares in the Company, with Mr. Ji Hulin, Mr. Hu Huaimin, and Mr. Li Biao as beneficial owners, and Mr. Xue Zhicheng deemed to own shares held by his spouse, while major shareholder Jiangsu Yueda Group Co., Ltd. and its subsidiaries collectively held **69.94%** of the Company's issued share capital Directors' Interests in the Company's Ordinary Shares (As of June 30) | Name | Capacity | Number of Shares | Approximate Percentage of Total Issued Share Capital of the Company | | :--- | :--- | :--- | :--- | | Mr. Ji Hulin | Beneficial owner | 166,666 | 0.01% | | Mr. Xue Zhicheng | Deemed interest | 650,000 | 0.06% | | Mr. Hu Huaimin | Beneficial owner | 2,424,666 | 0.21% | | Mr. Li Biao | Beneficial owner | 690,640 | 0.06% | Major Shareholders' Interests in the Company's Ordinary Shares (As of June 30) | Name of Shareholder | Capacity | Number of Shares | Approximate Percentage of Total Issued Share Capital of the Company | | :--- | :--- | :--- | :--- | | Yueda Capital (Hong Kong) Co., Limited | Beneficial owner | 608,311,000 | 52.05% | | Yueda Group (Hong Kong) Co., Limited | Beneficial owner | 208,979,333 | 17.88% | | Yueda Capital Co., Ltd. | Interest in controlled corporation | 608,311,000 | 52.05% | | Jiangsu Yueda Group Co., Ltd. | Interest in controlled corporation | 817,290,333 | 69.94% | - Jiangsu Yueda Group Co., Ltd. indirectly controls the majority of the Company's equity through its subsidiaries[88](index=88&type=chunk) [Share Option Scheme](index=39&type=section&id=Share%20Option%20Scheme) The Company adopted a share option scheme on May 20, 2021, to encourage and reward participants contributing to the Group, with no outstanding share options under the scheme as of June 30, 2025 - The primary purpose of the Share Option Scheme is to provide incentives or rewards to selected participants who have contributed to the Group[89](index=89&type=chunk) - As of June 30, 2025, and December 31, 2024, there were no outstanding share options under the Share Option Scheme[89](index=89&type=chunk) [Board Composition](index=39&type=section&id=Board%20Composition) As of the reporting date, the Board comprises four executive directors, two non-executive directors, and three independent non-executive directors, ensuring diversity and independence Board Members List (As of Reporting Date) | Executive Directors | Non-executive Directors | Independent Non-executive Directors | | :--- | :--- | :--- | | Ji Hulin | Li Biao | Liu Yongping | | Xue Zhicheng | Hu Huaimin | Zhang Tingji | | Pan Mingfeng | | Zhang Yan | | Teng Songsong | | |

（股份代號：06626） 截至二○二五年六月三十日止六個月的 中期業績公告 截至二○二五年六月三十日止六個月業績摘要 (ii) 自商業物業管理及運營服務所得收入為人民幣369.9百萬元。 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所產生或因倚賴該等內 容而引致的任何損失承擔任何責任。 （在香港註冊成立的有限公司） – 1 – ‧ 總收入為人民幣1,961.9百萬元，其中： (i) 自非商業物業管理及增值服務所得收入為人民幣1,591.9百萬元；及 ‧ 截至二○二五年六月三十日，本集團在管面積為72.3百萬平方米，合約面積 為92.5百萬平方米。 ‧ 毛利率為21.3%。 ‧ 本公司擁有人應佔盈利為人民幣239.7百萬元。 ‧ 董事會建議宣派二○二五年中期股息每股0.088港元（相當於每股人民幣0.080 元），派息率為50%。 中期業績 越秀服務集團有限公司（「本公司」，及其附屬公司，「本集團」）董事（「董事」）會（「董 事會」）謹此宣佈本集團截至二○二五年六月三十日止六個月（「本期間」）的未經審核 ...

香港交易及結算所有限公司、香港聯合交易所有限公司及香港中央結算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，概不會就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。 Kuaishou Technology 快手科技 （港幣櫃台股份代號：01024╱人民幣櫃台股份代號：81024） （於開曼群島註冊成立以不同投票權控制的有限公司） 截至2025年6月30日止三個月及六個月 的業績公告 及 宣派特別股息 快手科技董事會欣然宣佈本公司截至2025年6月30日止三個月及六個月的未經審核 合併業績。該等中期業績乃根據國際會計準則第34號「中期財務報告」編製並由本公 司獨立核數師羅兵咸永道會計師事務所（「核數師」）根據國際審計及鑒證準則理事 會頒佈的國際審閱準則第2410號「實體的獨立核數師對中期財務資料的審閱」審閱。 該等中期業績亦已由審核委員會審閱。 摘要 財務概要 – 1 – 截至6月30日止三個月 2025年 2024年 金額 佔收入 百分比 金額 佔收入 百分比 同比變動 （人民幣百萬元，百分比除外） 收入 35,046 100.0 30,975 ...

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所產生或因依 賴該等內容而引致的任何損失承擔任何責任。 途虎養車股份有限公司以不同投票權控制，其股本包括A類股份及B類股份。對於提呈股東大 會的任何決議案，A類股份持有人每股可投一票，而B類股份持有人則每股可投十票，惟法律或 香港聯合交易所有限公司證券上市規則或途虎養車股份有限公司的組織章程大綱及細則另行規 定者除外。股東及有意投資者應留意投資於不同投票權架構的公司的潛在風險，特別是不同投 票權受益人的利益未必與本公司股東的整體利益一致，不論其他股東如何投票，不同投票權受 益人會對股東決議案的結果有重大影響。 TUHU Car Inc. 途虎養車股份有限公司* （於開曼群島註冊成立以不同投票權控制的有限公司） （股份代號：9690） 截至2025年6月30日止六個月 中期業績公告 董事會欣然宣佈本集團截至2025年6月30日止六個月的未經審計綜合中期業績， 連同2024年同期的比較數字。該等中期業績已由核數師安永會計師事務所根據香 港會計師公會頒布的香港審閱 ...

興證國際金融集團有限公司 China Industrial Securities International Financial Group Limited 中期報告 2025 智創 環球 財富 資匯 CONNECTING INTERIM REPORT 2025 GLOBAL CAPITAL CREATE WEALTH （於開曼群島註冊成立之有限公司） 股份代號：6058 興證國際金融集團有限公司 China Industrial Securities International Financial Group Limited (Incorporated in the Cayman Islands with limited liability) Stock code : 6058 China Industrial Securities International Financial Group Limited WITH WISDOM 公司資料 興證國際金融集團有限公司 INTERIM REPORT 2025 中期報告 目錄 | 公司資料 | 2 | | --- | --- | | 簡明綜合損益及其他全面收益表 ...

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。 YEAHKA LIMITED 移卡有限公司 （於開曼群島註冊成立的有限公司） （股份代號：9923） 截至二零二五年六月三十日止六個月 中期業績公告 移卡有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本公司及其附屬 公司（統稱「本集團」）截至二零二五年六月三十日止六個月（「報告期」或「期內」） 的未經審核綜合業績。本中期業績已由本公司審核委員會（「審核委員會」）審閱。 於本公告，「移卡」及「我們」指本公司，如文義另有所指則為本集團。 1 業務回顧及展望 業務及財務總結 2 • 繼成功取得美國MSB(Money Services Business)聯邦支付牌照後，我們順利獲 得亞利桑那州MTL(Money Transmitter License)州級支付牌照，持續拓展於全 球主要經濟體的版圖； • 我們亦獲得日本經濟產業省的正式批准，授權在日本展開線上線下掃碼收單 業務，進一步鞏固當地團隊 ...

[Financial Statements](index=1&type=section&id=Financial%20Statements) [Condensed Consolidated Income Statement](index=1&type=section&id=Condensed%20Consolidated%20Income%20Statement) For the six months ended June 30, 2025, the Group's revenue decreased by 24.13% year-on-year, net profit decreased by 13.03%, and both basic and diluted earnings per share declined Condensed Consolidated Income Statement Summary | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 2,517,917 | 3,318,795 | -24.13 | | Operating Profit | 178,882 | 214,549 | -16.63 | | Profit Before Tax | 177,626 | 206,410 | -13.85 | | Profit for the Period Attributable to Owners of the Company | 151,390 | 174,067 | -13.03 | | Basic and Diluted Earnings Per Share (HK cents) | 21.12 | 24.27 | -12.98 | [Condensed Consolidated Statement of Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's total comprehensive income for the period was HKD 149,331 thousand, a decrease from the prior year, mainly due to a shift from positive to negative foreign currency translation differences Condensed Consolidated Statement of Comprehensive Income Summary | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Profit for the Period | 151,390 | 174,067 | -13.03 | | Foreign Currency Translation Differences | (2,055) | 8,066 | -125.48 | | Other Comprehensive (Loss) / Income for the Period (net of tax) | (2,059) | 8,065 | -125.53 | | Total Comprehensive Income for the Period Attributable to Owners of the Company (net of tax) | 149,331 | 182,132 | -18.01 | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets were HKD 4,421,615 thousand, a 6.09% decrease from the end of 2024, with non-current assets increasing while current assets and total liabilities decreased Condensed Consolidated Statement of Financial Position Summary | Metric | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 4,421,615 | 4,708,309 | -6.09 | | Non-current Assets | 419,812 | 380,338 | 10.38 | | Current Assets | 4,001,803 | 4,327,971 | -7.54 | | Total Equity | 1,142,888 | 993,714 | 15.01 | | Total Liabilities | 3,278,727 | 3,714,595 | -11.73 | [Notes to the Condensed Consolidated Interim Financial Information](index=5&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Information) [1. General Information](index=5&type=section&id=1.%20General%20Information) The Company is a limited liability company incorporated in Bermuda and listed on the Main Board of the Hong Kong Stock Exchange, with the Group's principal activities including property agency, property leasing, immigration consultancy, and money lending services in Hong Kong, mainland China, and Macau - The company's principal activities include property agency services, property leasing, immigration consultancy services, and money lending services, covering Hong Kong, mainland China, and Macau[8](index=8&type=chunk) [2. Basis of Preparation](index=5&type=section&id=2.%20Basis%20of%20Preparation) The interim financial information is prepared on a historical cost basis, in accordance with HKAS 34 and the disclosure requirements of the Listing Rules, consistent with the accounting policies of the 2024 annual financial statements, adopting only revised HKFRSs effective in 2025 - The interim financial information is prepared on a historical cost basis and complies with HKAS 34 and Appendix D2 of the Listing Rules disclosure requirements[11](index=11&type=chunk) - Revised standards effective in 2025 have no significant impact on the Group's results or financial position, and the Group has not early adopted new and revised standards not yet effective[12](index=12&type=chunk)[13](index=13&type=chunk) [3. Revenue and Segment Information](index=6&type=section&id=3.%20Revenue%20and%20Segment%20Information) The Group's revenue primarily derives from property agency business, with residential property agency being the largest contributor; total revenue for the first half of 2025 decreased by 24.13% year-on-year, mainly due to reduced revenue from Hong Kong and Macau, with changes also observed in segment results and financial position [Revenue Source Analysis](index=6&type=section&id=Revenue%20Source%20Analysis) The Group's revenue primarily comes from agency fees, which amounted to HKD 2,510,166 thousand in the first half of 2025, a year-on-year decrease of 24.21% Revenue Source Summary | Revenue Source | 2025 (thousand HKD) | 2024 (thousand HKD) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Agency Fees | 2,510,166 | 3,312,127 | -24.21 | | Immigration Consultancy Services | 4,155 | 3,603 | 15.32 | | Online Advertising | 221 | 108 | 104.63 | | Other Services | 2,455 | 2,176 | 12.82 | | Rental Income | 857 | 730 | 17.40 | | Interest Income from Loans Receivable | 63 | 51 | 23.53 | | **Total Revenue** | **2,517,917** | **3,318,795** | **-24.13** | [Property Agency Business Revenue and Results](index=6&type=section&id=Property%20Agency%20Business%20Revenue%20and%20Results) Revenue from property agency business, net of rebates, was HKD 1,543,418 thousand, a year-on-year decrease of 13.89%, with residential property agency business contributing the vast majority of revenue and segment results Property Agency Business Revenue and Results Summary | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Property Agency Business Revenue | 2,510,166 | 3,312,127 | -24.21 | | Rebates | (966,748) | (1,519,647) | -36.38 | | Revenue Net of Rebates | 1,543,418 | 1,792,480 | -13.89 | | Property Agency Business Segment Results | 205,585 | 237,935 | -13.60 | - Residential property agency business contributed **HKD 2,481,351 thousand** in revenue and **HKD 200,252 thousand** in segment results in the first half of 2025, serving as the Group's primary source of income[16](index=16&type=chunk) [Reconciliation of Segment Results to Profit Before Tax](index=9&type=section&id=Reconciliation%20of%20Segment%20Results%20to%20Profit%20Before%20Tax) Reported segment results amounted to HKD 210,516 thousand, and after deducting corporate expenses and finance costs, profit before tax was HKD 177,626 thousand Reconciliation of Segment Results to Profit Before Tax Summary | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Segment Results of Reported Segments | 210,516 | 239,277 | -12.02 | | Corporate Expenses | (31,994) | (27,108) | 18.02 | | Bank Interest Income | 1,229 | 2,904 | -57.68 | | Interest on Bank Borrowings, Overdrafts and Other Borrowings | (2,125) | (8,663) | -75.48 | | **Profit Before Tax** | **177,626** | **206,410** | **-13.85** | [Reconciliation of Segment Assets to Total Assets](index=9&type=section&id=Reconciliation%20of%20Segment%20Assets%20to%20Total%20Assets) As of June 30, 2025, segment assets were HKD 4,042,968 thousand and total assets were HKD 4,421,615 thousand, both decreasing from the end of 2024 Reconciliation of Segment Assets to Total Assets Summary | Metric | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Segment Assets | 4,042,968 | 4,201,795 | -3.78 | | Corporate Assets | 345,055 | 470,502 | -26.66 | | Deferred Tax Assets | 23,135 | 25,390 | -8.88 | | Other Non-current Assets | 10,110 | 10,110 | 0.00 | | Financial Assets at Fair Value Through Other Comprehensive Income | 347 | 512 | -32.23 | | **Total Assets** | **4,421,615** | **4,708,309** | **-6.09** | [Reconciliation of Segment Liabilities to Total Liabilities](index=10&type=section&id=Reconciliation%20of%20Segment%20Liabilities%20to%20Total%20Liabilities) As of June 30, 2025, segment liabilities were HKD 3,251,408 thousand and total liabilities were HKD 3,278,727 thousand, both decreasing from the end of 2024 Reconciliation of Segment Liabilities to Total Liabilities Summary | Metric | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Segment Liabilities | 3,251,408 | 3,682,061 | -11.70 | | Corporate Liabilities | 21,659 | 26,381 | -17.89 | | Deferred Tax Liabilities | 5,660 | 6,153 | -8.01 | | **Total Liabilities** | **3,278,727** | **3,714,595** | **-11.73** | [Geographical Revenue](index=11&type=section&id=Geographical%20Revenue) Revenue from Hong Kong and Macau decreased by 25.62% year-on-year, while revenue from mainland China increased by 9.97% year-on-year Geographical Revenue Summary | Region | 2025 (thousand HKD) | 2024 (thousand HKD) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Hong Kong and Macau | 2,367,952 | 3,182,422 | -25.62 | | Mainland China | 149,965 | 136,373 | 9.97 | | **Total Revenue** | **2,517,917** | **3,318,795** | **-24.13** | [4. Other Losses, Net](index=11&type=section&id=4.%20Other%20Losses,%20Net) For the six months ended June 30, 2025, other losses, net, amounted to HKD 229 thousand, a narrower loss compared to HKD 687 thousand in the prior year, primarily due to a reduction in fair value losses on investment properties Other Losses, Net Summary | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Fair Value Loss on Investment Properties | (1,325) | (1,983) | -33.18 | | Others | 1,096 | 1,296 | -15.43 | | **Total** | **(229)** | **(687)** | -66.67 | [5. Other Operating Costs](index=12&type=section&id=5.%20Other%20Operating%20Costs) For the six months ended June 30, 2025, key other operating costs included office and branch operating expenses, government rent, rates and management fees for leased properties, and legal and professional fees, with a significant increase in impairment losses on right-of-use assets and property and equipment Other Operating Costs Summary | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Office and Branch Operating Expenses | 43,418 | 42,107 | 3.11 | | Government Rent, Rates and Management Fees for Leased Properties | 19,875 | 20,422 | -2.68 | | Legal and Professional Fees | 4,298 | 18,050 | -76.18 | | Staff Recruitment, Training and Welfare | 4,609 | 2,141 | 115.27 | | Impairment Loss on Right-of-Use Assets, Net of Reversal | 2,644 | 501 | 427.74 | | Impairment Loss on Property and Equipment | 437 | 56 | 679.00 | [6. Finance Costs](index=12&type=section&id=6.%20Finance%20Costs) For the six months ended June 30, 2025, finance costs amounted to HKD 8,967 thousand, a significant year-on-year decrease of 43.36%, primarily due to a substantial reduction in interest on bank borrowings, overdrafts, and other borrowings Finance Costs Summary | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Interest on Bank Borrowings, Overdrafts and Other Borrowings | 2,125 | 8,663 | -75.48 | | Interest on Lease Liabilities | 6,842 | 7,168 | -4.55 | | **Total** | **8,967** | **15,831** | **-43.36** | [7. Income Tax Expense](index=13&type=section&id=7.%20Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense was HKD 26,236 thousand, a year-on-year decrease of 18.74%, mainly due to a significant reduction in deferred income tax expense Income Tax Expense Summary | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Hong Kong Profits Tax | 24,500 | 4,522 | 441.80 | | Deferred Income Tax | 1,736 | 27,821 | -93.76 | | **Total** | **26,236** | **32,343** | **-18.74** | - The Hong Kong Profits Tax rate is 16.5%, with some subsidiaries qualifying for a two-tiered profits tax rate, where the first **HKD 2 million** of assessable profits is taxed at 8.25%[27](index=27&type=chunk) [8. Interim Dividend](index=13&type=section&id=8.%20Interim%20Dividend) The Board of Directors did not declare an interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board of Directors decided not to declare an interim dividend for the first half of 2025[29](index=29&type=chunk) [9. Earnings Per Share](index=14&type=section&id=9.%20Earnings%20Per%20Share) For the six months ended June 30, 2025, both basic and diluted earnings per share were 21.12 HK cents, a decrease from 24.27 HK cents in the prior year, primarily due to a reduction in profit attributable to owners of the Company Earnings Per Share Summary | Metric | 2025 (HK cents) | 2024 (HK cents) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share | 21.12 | 24.27 | -12.98 | | Diluted Earnings Per Share | 21.12 | 24.27 | -12.98 | - Diluted earnings per share are the same as basic earnings per share because the exercise of share options had an anti-dilutive effect[31](index=31&type=chunk) [10. Loans Receivable](index=14&type=section&id=10.%20Loans%20Receivable) As of June 30, 2025, total loans receivable amounted to HKD 1,958 thousand, a significant increase from HKD 413 thousand at the end of 2024, primarily from loans due between one and two years Loans Receivable by Maturity Summary | Maturity | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Within One Year | 212 | 193 | 9.84 | | Between One and Two Years | 1,746 | 220 | 693.64 | | **Total** | **1,958** | **413** | **374.10** | [11. Trade and Other Receivables](index=15&type=section&id=11.%20Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables amounted to HKD 3,104,092 thousand, a decrease from HKD 3,430,535 thousand at the end of 2024, with current (not overdue) amounts accounting for the vast majority Trade and Other Receivables by Ageing Summary | Ageing | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Current (not overdue) | 2,981,468 | 3,339,190 | -10.72 | | Overdue Less Than 31 Days | 54,026 | 43,833 | 23.25 | | Overdue 31 to 60 Days | 28,412 | 21,366 | 32.99 | | Overdue 61 to 90 Days | 11,408 | 7,567 | 50.76 | | Overdue More Than 90 Days | 28,778 | 18,579 | 54.90 | | **Total** | **3,104,092** | **3,430,535** | **-9.40** | [12. Trade and Other Payables](index=15&type=section&id=12.%20Trade%20and%20Other%20Payables) Commissions and rebates payable to property consultants, co-operating property agents, and property buyers are due upon collection of related agency fees from clients; as of June 30, 2025, such payables for agency fees received and due within 30 days amounted to HKD 312,326 thousand, a decrease from HKD 495,273 thousand at the end of 2024 - As of June 30, 2025, commissions and rebates payable within 30 days amounted to **HKD 312,326 thousand**, a **36.94% decrease** from the end of 2024[34](index=34&type=chunk) [Management Discussion and Analysis](index=16&type=section&id=Management%20Discussion%20and%20Analysis) [Performance Review](index=16&type=section&id=Performance%20Review) Despite ongoing volatility in the Hong Kong property market, the Group achieved solid results in the first half of 2025 through restructuring and a flexible business model, with profit attributable to owners of approximately HKD 151 million, a 13% year-on-year decrease [Property Market Continues to Seek Bottom](index=16&type=section&id=Property%20Market%20Continues%20to%20Seek%20Bottom) Hong Kong's property market transactions remained volatile, starting low at the beginning of the year but later boosted by stamp duty cuts in the budget and a sharp drop in HIBOR, leading to a near six-year high in primary residential property transactions and initial success in destocking new properties, while secondary market registrations saw a slight 2% increase - The Hong Kong property market started low at the beginning of the year, with activity increasing due to stamp duty cuts in the budget and a sharp drop in HIBOR[37](index=37&type=chunk) - In the first half of 2025, primary residential property transactions reached a near six-year high, with potential new supply decreasing from **112,000 units to 105,000 units**[37](index=37&type=chunk) - Secondary market property registrations saw a slight **2% increase** compared to last year[37](index=37&type=chunk) [Volume Up, Price Down](index=16&type=section&id=Volume%20Up,%20Price%20Down) Overall residential property registrations increased but total transaction value decreased, mainly because stamp duty cuts significantly boosted the attractiveness of smaller-priced properties, leading local buyers to prefer smaller, more affordable units - Primary property transaction volume increased by **8.2%**, but total transaction value decreased by **20%**, primarily due to the stamp duty reduction for properties priced at **HKD 4 million or below** to **HKD 100**[38](index=38&type=chunk) - Local buyers are becoming more cautious, tending to choose smaller and more affordable properties[38](index=38&type=chunk) [Resilient Rental Market Performance](index=16&type=section&id=Resilient%20Rental%20Market%20Performance) Hong Kong's status as an education hub and talent schemes attract a large number of non-local talents, driving up housing demand and supporting the rental market, while rising rents and falling interest rates leading to "mortgage cheaper than rent" may prompt some local citizens to purchase properties - A significant increase in non-local students and dependents of talent scheme applicants has boosted housing demand, supporting the rental market[39](index=39&type=chunk) - Rising rents and falling interest rates leading to "mortgage cheaper than rent" may encourage local citizens to choose homeownership[39](index=39&type=chunk) [Operational Strategy and Efficiency](index=17&type=section&id=Operational%20Strategy%20and%20Efficiency) Through management team restructuring, cross-district sales collaboration, and optimized physical layout, the Group effectively enhanced productivity and operational efficiency, offsetting the negative impact of decreased property transaction values, with mainland China operations remaining profitable [Enhancing Productivity and Operational Efficiency](index=17&type=section&id=Enhancing%20Productivity%20and%20Operational%20Efficiency) The strategic restructuring and strengthening measures of the management team in 2024 have yielded results, promoting cross-district sales collaboration and improving operational efficiency, leading to solid financial performance in Hong Kong and mainland China property agency businesses, with mainland operations remaining profitable in the first half - Management team restructuring effectively promoted cross-district sales collaboration, enhancing overall operational efficiency[40](index=40&type=chunk) - Improved operational efficiency helped offset the negative impact of decreased total transaction value in primary properties[40](index=40&type=chunk) - The Group's mainland China operations remained profitable in the first half of 2025[40](index=40&type=chunk) [Optimizing Physical Layout in Response to Industry Changes](index=17&type=section&id=Optimizing%20Physical%20Layout%20in%20Response%20to%20Industry%20Changes) Facing the continuous decline in the number of licensed property agents and branch outlets, the Group focuses on streamlining its existing layout, strategically managing branch sizes, and continuously investing in technology to enhance online and offline service efficiency - The number of licensed property agents and branch outlets continues to decline, posing challenges for small and medium-sized agencies[41](index=41&type=chunk) - The Group strategically streamlines its existing layout, manages branch sizes, and continuously invests in technology to enhance operational efficiency and services[41](index=41&type=chunk) [Outlook](index=17&type=section&id=Outlook) Looking ahead, the global economic outlook remains uncertain, but mainland China's economy shows resilience; Hong Kong's financial market performs strongly, its education industry status is consolidated, and tourism is expected to recover, while the property market may still face short-term selling pressure but is viewed positively in the long term, with the Group aiming to strengthen customer relationships and seize opportunities [Macroeconomic Environment](index=17&type=section&id=Macroeconomic%20Environment) The global economic outlook is increasingly uncertain due to unpredictable US policies and geopolitical risks, while mainland China's economy performed relatively well, with GDP growth of 5.4% in Q1 and 5.2% in Q2, and consumer demand expected to recover - The global economic outlook is increasingly uncertain due to unpredictable US trade and diplomatic policies[42](index=42&type=chunk) - Mainland China's economy performed well, with GDP growth of **5.4% in Q1** and **5.2% in Q2** of 2025[42](index=42&type=chunk) - China's Consumer Price Index saw a slight **0.1% increase**, indicating potential recovery in consumer demand[42](index=42&type=chunk) [Three Pillars of Hong Kong's Economy](index=17&type=section&id=Three%20Pillars%20of%20Hong%20Kong's%20Economy) Hong Kong's financial market shows strong performance, becoming a safe haven for capital, with new listings soaring to become the global top choice; the tourism industry is expected to continue growing, driven by an increase in visitor arrivals and new attractions like the Kai Tak Sports Park - Hong Kong has become a safe haven for capital, with HIBOR expected to remain at low levels[43](index=43&type=chunk) - Hong Kong rose to become the global top choice for new listings in the first half of 2025[43](index=43&type=chunk) - Visitor arrivals in the first half of 2025 increased by **12%** compared to the same period in 2024, with Kai Tak Sports Park and the future West Kowloon Cultural District driving tourism growth[44](index=44&type=chunk) [Development of Education Industry](index=18&type=section&id=Development%20of%20Education%20Industry) Hong Kong's status as an education hub is further consolidated, with five universities ranking among the top 100 globally; the government's relaxation of procedures for converting hotels and commercial buildings into student dormitories will help enhance its attractiveness - Five Hong Kong universities ranked among the top 100 globally in the **QS World University Rankings 2025**, the highest number among Asian cities[45](index=45&type=chunk) - The Hong Kong government has relaxed procedures for converting hotels and commercial buildings into student dormitories to address accommodation shortages and enhance the attractiveness of its education hub[45](index=45&type=chunk) [Property Market Outlook and Policies](index=18&type=section&id=Property%20Market%20Outlook%20and%20Policies) In the first half of 2025, property prices slightly decreased by 0.6%, while the rental market remained resilient with rents rising by 1.17%; the drop in HIBOR makes mortgage rates more attractive; the government is discussing a "Home Purchase Connect" mechanism, which is expected to boost demand for high-end properties, but short-term selling pressure is unlikely to significantly diminish - In the first half of 2025, property prices slightly decreased by **0.6%**, while rents increased by **1.17%**, nearing historical highs[46](index=46&type=chunk) - The drop in Hong Kong Interbank Offered Rate (HIBOR) has made mortgage rates lower than rental yields for small units, making buying more attractive than renting[46](index=46&type=chunk) - The Hong Kong government is discussing establishing a "Home Purchase Connect" mechanism with the central government, which is expected to increase mainland buyers' interest in high-end properties[46](index=46&type=chunk) - Some property owners remain burdened by debt, making it difficult for short-term selling pressure to significantly diminish[46](index=46&type=chunk) [Strengthening Customer Relationships](index=18&type=section&id=Strengthening%20Customer%20Relationships) The Group innovatively maintains customer relationships by partnering with Standard Chartered Bank to launch a credit card payment plan for rental deposits and offering "Midland Rent-Free Protection," aiming to convert tenants into potential buyers and protect property investment clients - Partnered with Standard Chartered Bank to launch a credit card payment plan for rental deposits and first-month rent, enhancing customer convenience[47](index=47&type=chunk) - Offers free "Midland Rent-Free Protection" to protect property investment clients from losses due to tenant rent arrears[47](index=47&type=chunk) [Future Outlook and Opportunities](index=19&type=section&id=Future%20Outlook%20and%20Opportunities) The Group remains cautiously optimistic about the Hong Kong property market, firmly believing in the deeply rooted homeownership culture, and will actively implement measures to boost homeownership confidence and achieve sustained business growth through operational optimization and strengthened customer relationships - The Group remains cautiously optimistic about the Hong Kong property market outlook and expects to actively implement measures to boost Hong Kong people's confidence and demand for homeownership[48](index=48&type=chunk) - The Group will seize opportunities from the Hong Kong property market recovery, optimize operations, and strengthen customer relationships to achieve sustained business growth[48](index=48&type=chunk) [Financial Review](index=20&type=section&id=Financial%20Review) [Liquidity and Financial Resources](index=20&type=section&id=Liquidity%20and%20Financial%20Resources) The Group primarily finances its operations through internal resources and borrowings; as of June 30, 2025, cash and bank balances amounted to HKD 722,164 thousand, with no interest-bearing borrowings, a total debt-to-asset ratio of 0%, a current ratio of 1.3, and a return on equity of 13.25% Liquidity and Financial Resources Summary | Metric | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Cash and Bank Balances (thousand HKD) | 722,164 | 711,127 | 1.55 | | Interest-bearing Borrowings | Nil | Nil | - | | Total Debt-to-Asset Ratio | 0% | 0% | - | | Current Ratio | 1.3 | 1.2 | 8.33 | | Return on Equity (for the six months ended June 30) | 13.25% | 20.74% | -36.12 | - The Group has unutilized borrowing facilities of **HKD 1,168,000 thousand** from several banks, secured by certain trade receivables[50](index=50&type=chunk) - The Group faces RMB exchange rate risk, but the Directors believe no hedging measures are necessary at this stage[51](index=51&type=chunk) [Loan Portfolio and Lending Business Information](index=20&type=section&id=Loan%20Portfolio%20and%20Lending%20Business%20Information) As of June 30, 2025, outstanding loans receivable amounted to HKD 1,958 thousand, primarily loans to employees, a significant increase from HKD 413 thousand at the end of 2024; the Group manages loan risk through a lending committee approval process, credit risk assessment, and a diversified client base Loan Portfolio and Lending Business Information Summary | Metric | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Outstanding Loans Receivable | 1,958 | 413 | 374.10 | | Number of Outstanding Loan Accounts | 4 | 5 | -20.00 | | Largest Outstanding Loan Receivable | 1,246 (64%) | - | - | - The Group's lending business is operated by Midland Credit Limited, with all loans requiring approval from the lending committee and undergoing document collection and credit risk assessment[53](index=53&type=chunk) - The Group manages default risk by reducing borrower concentration and regularly reviewing its loan portfolio[54](index=54&type=chunk) [Contingent Liabilities](index=21&type=section&id=Contingent%20Liabilities) The Group is pursuing judicial review and a stay application regarding legal proceedings initiated by the Competition Commission, with a judgment expected before September 30, 2025; no provision has been made due to high uncertainty, while adequate provisions have been made or are not required for other claims/litigations - The Competition Commission initiated legal proceedings against the Group, alleging breaches of the First Conduct Rule of the Competition Ordinance[55](index=55&type=chunk) - The Group has filed for judicial review and a stay of the legal proceedings, with a judgment expected before September 30, 2025[55](index=55&type=chunk) - Due to the high uncertainty of the case, no provision has been made in the condensed consolidated financial statements[56](index=56&type=chunk) [Other Information](index=22&type=section&id=Other%20Information) [Employee Information](index=22&type=section&id=Employee%20Information) As of June 30, 2025, the Group employed 4,640 full-time employees, a slight increase from the end of 2024; remuneration policies are based on industry practice and individual performance, offering discretionary bonuses, incentives, share options, and other benefits Employee Information Summary | Employee Category | June 30, 2025 (Number) | December 31, 2024 (Number) | Change (%) | | :--- | :--- | :--- | :--- | | Total Full-time Employees | 4,640 | 4,593 | 1.02 | | Sales Agents | 4,019 | - | - | | Office Back-end Staff | 409 | - | - | | Front-line Support Staff | 212 | - | - | - The Group provides education allowances, medical and retirement benefits, and regularly offers internal and external training[57](index=57&type=chunk) [Interim Dividend](index=22&type=section&id=Interim%20Dividend) The Board of Directors did not declare an interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board of Directors decided not to declare an interim dividend for the first half of 2025[58](index=58&type=chunk) [Compliance with Corporate Governance Code](index=22&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Company has complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules throughout the interim period - The Company complied with all applicable provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules during the interim period[59](index=59&type=chunk) [Code of Conduct for Securities Transactions by Directors](index=22&type=section&id=Code%20of%20Conduct%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted a code of conduct for directors' securities transactions no less exacting than the Model Code in the Listing Rules, and all directors confirmed compliance with this code during the interim period - All directors confirmed compliance with the company's adopted code of conduct for directors' securities transactions during the interim period[60](index=60&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=22&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) In January 2025, the Company repurchased 190,000 shares on the Stock Exchange for a total consideration of HKD 156,800, which were cancelled in February, aiming to enhance shareholder value; no other purchases, sales, or redemptions of listed securities occurred during the interim period Share Repurchase Summary | Repurchase Month | Number of Shares Repurchased | Price Paid Per Share (HKD) | Total Consideration (HKD) | | :--- | :--- | :--- | :--- | | January | 190,000 | Highest 0.83, Lowest 0.82 | 156,800 | - The share repurchase aimed to enhance shareholder value and the Company's net asset value and/or earnings per share, and the shares were cancelled on February 26, 2025[61](index=61&type=chunk) [Conclusion](index=22&type=section&id=Conclusion) [Review of Financial Statements](index=22&type=section&id=Review%20of%20Financial%20Statements) The Company's Audit Committee has reviewed and discussed the Group's unaudited condensed consolidated interim financial information for the interim period with management - The Audit Committee has reviewed and discussed the interim financial information[62](index=62&type=chunk) [Publication of 2025 Interim Results Announcement and Interim Report](index=23&type=section&id=Publication%20of%202025%20Interim%20Results%20Announcement%20and%20Interim%20Report) This interim results announcement has been published on the Stock Exchange and the Company's website, and the interim report will be dispatched to shareholders and published on the website in due course - The interim results announcement has been published on the Stock Exchange and the company's website, and the interim report will be dispatched to shareholders in due course[63](index=63&type=chunk) [Acknowledgements](index=23&type=section&id=Acknowledgements) The Board of Directors expresses gratitude for the support of its team, clients, and business partners, and firmly believes in continuing its excellent performance in the future - The Board of Directors thanks the team, clients, and business partners for their support[64](index=64&type=chunk) - The Group looks forward to the future, committed to pursuing excellence and confident in continuing its excellent performance in the coming year[65](index=65&type=chunk) [By Order of the Board](index=23&type=section&id=By%20Order%20of%20the%20Board) This announcement is issued by Ms. Wong Ching Yi, Angela, Vice Chairman, Managing Director and Executive Director of Midland Holdings Limited, on behalf of the Board of Directors, which comprises six directors including three executive directors and three independent non-executive directors - The Board of Directors comprises six directors, including three executive directors and three independent non-executive directors[66](index=66&type=chunk)

2024/2025 電子線圈業務始創於1979年，經過多年來不斷循序發展，至今已成為較具規模的電子線圈製造 商，產品市場來自包括電訊及資訊科技設備、數據網絡及電壓轉換技術、辦公室自動化設備、 影音產品，以及家居電器及電動工具等不同行業。CEC國際於電子線圈業務經驗豐富且具競爭 力，在中國內地設有具規模之生產設施、研發部門、銷售與客戶服務、及遍佈中國香港及中國 內地之市場推廣中心。 本集團於2010年7月7日創立759阿信屋，參照日本生活區的消費模式開拓本地的零售業務，向 顧客提供優閒的購物環境及多種多樣的產品，並以服務本港街坊為目標。除日本外，貨源亦來 自歐洲各國、東南亞、韓國、中國內地及台灣等。759阿信屋積極將進貨領域進一步擴大，除 食品外，自行進口急凍食品、酒類、住宅用品、廚具及個人護理用品等，為本港顧客提供更全 面的選擇。未來，759阿信屋將繼續致力為街坊服務，提供舒適悠閒、多元、具新意的購物體驗。 CEC國際於1999年11月在香港聯合交易所有限公司上市，期望通過資本市場的監督，有序按步 完善公司之企業管治水平。並以努力不懈的態度持續發展企業之業務，為股東帶來穩紮之長期 投資回報。 | 2 | CE ...

[Interim Results Highlights](index=1&type=section&id=Interim%20Results%20Highlights) [Overview](index=1&type=section&id=Overview) K. Wah International Holdings announced interim results for the six months ended June 30, 2025, with turnover of HKD 1.052 billion and total attributable turnover of HKD 7.179 billion, reporting a profit attributable to equity holders of HKD 114 million, earnings per share of 3.61 HK cents, and an interim dividend of 2 HK cents per share, while maintaining a robust financial position with a reduced gearing ratio of 11% and ample liquidity to pursue land reserve opportunities Key Financial Indicators | Indicator | June 30, 2025 (HKD) | December 31, 2024 (HKD) | | :--- | :--- | :--- | | Turnover | 1,052,000,000 | 1,213,010,000 (2024 corresponding period) | | Total Attributable Turnover | 7,179,000,000 | - | | Profit Attributable to Equity Holders of the Company | 114,000,000 | 153,787,000 (2024 corresponding period) | | Contracted Attributable Sales | 1,400,000,000 | - | | Contracted but Unrecognized Attributable Sales | 6,000,000,000 | - | | Earnings Per Share | 3.61 HK cents | 4.91 HK cents (2024 corresponding period) | | Interim Dividend | 2 HK cents per share | 4 HK cents per share (2024 corresponding period) | | Net Asset Value Per Share | 12.9 HKD | - | | Gearing Ratio | 11% | 12% | | Cash and Bank Deposits | 8,698,000,000 | 9,649,379,000 (December 31, 2024) | | Undrawn Bank Facilities | 18,707,000,000 | 17,666,000,000 (December 31, 2024) | - The Group will continue to **prudently and orderly seek opportunities** in Hong Kong, the Pearl River Delta, and the Yangtze River Delta regions, and **replenish land reserves** as appropriate[2](index=2&type=chunk) [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the Group's turnover was HKD 1.052 billion, a 13.27% year-on-year decrease, with gross profit significantly declining to HKD 366 million, a 46.49% year-on-year reduction, resulting in profit before tax of HKD 222 million, down 46.24% year-on-year, and profit for the period of HKD 112 million, a 36.89% year-on-year decrease Condensed Consolidated Statement of Profit or Loss (Six Months Ended June 30) | Indicator | 2025 (HKD Thousand) | 2024 (HKD Thousand) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Turnover | 1,052,049 | 1,213,010 | -13.27% | | Cost of Sales | (686,046) | (528,930) | +29.70% | | Gross Profit | 366,003 | 684,080 | -46.49% | | Other Operating Income | 277,231 | 257,490 | +7.69% | | Other Net Gains | 27,184 | 73,946 | -63.24% | | Fair Value Change of Investment Properties | (3,611) | 29,727 | -112.15% | | Profit Before Tax | 222,256 | 413,316 | -46.24% | | Taxation Expense | (109,811) | (235,464) | -53.37% | | Profit for the Period | 112,445 | 177,852 | -36.89% | | Profit Attributable to Equity Holders of the Company | 113,898 | 153,787 | -25.94% | | Basic Earnings Per Share | 3.61 HK cents | 4.91 HK cents | -26.48% | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) Profit for the period was HKD 112 million, while other comprehensive income/(loss) recorded a gain of HKD 468 million, primarily due to fair value changes of financial assets at fair value through other comprehensive income and exchange differences, resulting in total comprehensive income attributable to equity holders of HKD 553 million, a significant improvement from the prior year's loss Condensed Consolidated Statement of Comprehensive Income (Six Months Ended June 30) | Indicator | 2025 (HKD Thousand) | 2024 (HKD Thousand) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Profit for the Period | 112,445 | 177,852 | -36.89% | | Fair Value Change of Financial Assets at Fair Value Through Other Comprehensive Income | 300,595 | (1,194,258) | +125.17% | | Exchange Differences from Translation - Subsidiaries | 362,551 | (202,001) | +279.48% | | (Loss)/Gain on Net Investment Hedge | (225,615) | 28,708 | -885.88% | | Other Comprehensive Income/(Loss) for the Period | 468,099 | (1,433,849) | +132.65% | | Total Comprehensive Income/(Loss) for the Period | 580,544 | (1,255,997) | +146.22% | | Total Comprehensive Income/(Loss) Attributable to Equity Holders of the Company | 552,885 | (1,214,708) | +145.51% | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets were HKD 65.629 billion, a slight decrease from December 31, 2024, with total equity increasing to HKD 42.538 billion and total liabilities decreasing to HKD 23.091 billion, while net current assets remained healthy at HKD 18.290 billion Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 65,629,197 | 66,371,047 | -1.12% | | Non-current Assets | 36,784,960 | 36,303,595 | +1.33% | | Current Assets | 28,844,237 | 30,067,452 | -4.07% | | Total Equity | 42,538,293 | 41,957,749 | +1.38% | | Equity Attributable to Owners of the Company | 40,631,521 | 40,078,636 | +1.38% | | Total Liabilities | 23,090,904 | 24,413,298 | -5.42% | | Non-current Liabilities | 12,537,035 | 13,445,181 | -6.75% | | Current Liabilities | 10,553,869 | 10,968,117 | -3.78% | | Net Current Assets | 18,290,368 | 19,099,335 | -4.24% | [Notes to the Financial Statements](index=5&type=section&id=Notes%20to%20the%20Financial%20Statements) [Basis of Preparation](index=5&type=section&id=Basis%20of%20Preparation) This interim financial information is prepared using the historical cost convention, modified for the revaluation of investment properties and certain financial assets, in accordance with HKAS 34 'Interim Financial Reporting' issued by the HKICPA, with the adoption of standard amendments during the period having no significant impact on the Group's accounting policies, and new standards not yet effective also not expected to have a material impact - The interim financial information is prepared using the **historical cost convention**, modified for the **revaluation of investment properties** and certain **financial assets at fair value**[7](index=7&type=chunk) - The adoption of standard amendments (such as HKAS 21 and HKFRS 1 (amended) Lack of Exchangeability) by the Group had **no significant impact** on accounting policies, and **no retrospective adjustments** were required[8](index=8&type=chunk)[9](index=9&type=chunk) - The Group has conducted a preliminary assessment of new standards, amendments, improvements, and interpretations not yet effective, and expects **no significant impact** on the Group's operating results and financial position[10](index=10&type=chunk) [Segment Information](index=6&type=section&id=Segment%20Information) The Group primarily engages in property development and investment in Hong Kong and Mainland China, with business segments including property development, property investment, and others, where property development (Hong Kong) recorded adjusted EBITDA of HKD 73.305 million, while property development (Mainland China) incurred a loss, and property investment performed robustly with adjusted EBITDA of HKD 211 million, with Mainland China contributing more to turnover and holding a larger base of non-current property assets - The Group primarily engages in **property development and investment** in **Hong Kong and Mainland China**, with business segments including property development and property investment[11](index=11&type=chunk) - Segment performance is measured by profit before interest, tax, depreciation, and amortization (**Adjusted EBITDA**), **excluding the share of results of joint ventures and associates**[11](index=11&type=chunk) [Business Segments](index=6&type=section&id=Business%20Segments) For the six months ended June 30, 2025, property development (Hong Kong) generated revenue of HKD 222.53 million, with adjusted EBITDA of HKD 73.305 million, while property development (Mainland China) generated revenue of HKD 487.592 million but recorded an adjusted EBITDA loss of HKD 40.429 million, and property investment revenue was HKD 302.455 million, with a robust adjusted EBITDA of HKD 211.015 million Business Segments Performance (Six Months Ended June 30) | Indicator (HKD Thousand) | Property Development (Hong Kong) | Property Development (Mainland China) | Property Investment | Others | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | **Six Months Ended June 30, 2025** | | | | | | | Turnover | 222,530 | 487,592 | 302,455 | 39,472 | 1,052,049 | | Adjusted EBITDA | 73,305 | (40,429) | 211,015 | (91,288) | 152,603 | | **Six Months Ended June 30, 2024** | | | | | | | Turnover | 352,495 | 493,823 | 321,815 | 44,877 | 1,213,010 | | Adjusted EBITDA | 149,968 | 131,823 | 241,289 | (115,660) | 407,420 | [Geographical Segments](index=7&type=section&id=Geographical%20Segments) For the six months ended June 30, 2025, Mainland China operations contributed HKD 813.476 million in turnover, exceeding Hong Kong's HKD 399.534 million, and held significantly more non-current property assets at HKD 14.070 billion compared to Hong Kong's HKD 2.688 billion, indicating the Group's larger asset base in Mainland China Geographical Segments Performance (Six Months Ended June 30) | Indicator (HKD Thousand) | Hong Kong (2025) | Hong Kong (2024) | Mainland China (2025) | Mainland China (2024) | | :--- | :--- | :--- | :--- | :--- | | Turnover | 399,534 | 265,223 | 813,476 | 786,826 | | Non-current Property Assets | 2,687,570 | 2,641,390 | 14,070,090 | 14,310,298 | [Profit Before Tax](index=8&type=section&id=Profit%20Before%20Tax) For the six months ended June 30, 2025, the Group's profit before tax included interest income of HKD 112 million, dividend income from financial assets of HKD 81.242 million, and net gain from derivative financial instruments of HKD 30.045 million, while deducting cost of properties sold of HKD 630 million, selling and marketing expenses of HKD 67.562 million, and net fair value loss on derivative financial instruments of HKD 18.488 million Profit Before Tax Components (Six Months Ended June 30) | Item | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | **Included:** | | | | Interest Income | 112,431 | 141,555 | | Dividend Income from Financial Assets at Fair Value Through Other Comprehensive Income | 81,242 | 48,745 | | Net Gain on Settlement of Derivative Financial Instruments | 30,045 | 41,860 | | **Deducted:** | | | | Cost of Properties Sold | 629,630 | 469,579 | | Selling and Marketing Expenses | 67,562 | 86,284 | | Net Fair Value Loss on Derivative Financial Instruments | 18,488 | 19,830 | [Taxation](index=9&type=section&id=Taxation) Total tax expense for the period was HKD 110 million, a significant decrease from the prior year, comprising Hong Kong profits tax of HKD 11.664 million, Mainland China income tax of HKD 46.135 million, and land appreciation tax of HKD 8.872 million, with the Group anticipating no significant impact on its income tax position from the OECD Pillar Two rules Taxation Expense (Six Months Ended June 30) | Tax Type | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Hong Kong Profits Tax | 11,664 | 17,707 | | Mainland China Income Tax | 46,135 | 85,886 | | Mainland China Land Appreciation Tax | 8,872 | 64,882 | | Deferred Tax | 43,292 | 57,666 | | **Total Taxation Expense** | **109,811** | **235,464** | - Hong Kong profits tax rate remains at **16.5%**, and Mainland China income tax rate remains at **25%**[17](index=17&type=chunk) - The Group has assessed the OECD Pillar Two rules and expects **no significant impact** on its income tax position[18](index=18&type=chunk) [Earnings Per Share](index=9&type=section&id=Earnings%20Per%20Share) For the six months ended June 30, 2025, profit attributable to equity holders of the Company was HKD 114 million, resulting in basic and diluted earnings per share of 3.61 HK cents, a decrease from 4.91 HK cents in the prior year, based on the weighted average number of shares Earnings Per Share (Six Months Ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit Attributable to Equity Holders of the Company (HKD Thousand) | 113,898 | 153,787 | | Weighted Average Number of Shares for Basic Earnings Per Share | 3,152,728,607 | 3,132,894,615 | | Basic Earnings Per Share (HK cents) | 3.61 | 4.91 | | Diluted Earnings Per Share (HK cents) | 3.61 | 4.91 | [Dividends](index=9&type=section&id=Dividends) The Board has resolved to declare an interim cash dividend of 2 HK cents per share for the six months ended June 30, 2025, totaling HKD 63.055 million, which is a reduction from 4 HK cents per share in the prior year Dividends Declared (Six Months Ended June 30) | Dividend Type | 2025 | 2024 | | :--- | :--- | :--- | | Interim Cash Dividend (Per Share) | 2 HK cents | 4 HK cents | | Interim Cash Dividend (Total) | HKD 63,055,000 | HKD 126,109,000 | [Trade and Other Receivables and Prepayments](index=10&type=section&id=Trade%20and%20Other%20Receivables%20and%20Prepayments) As of June 30, 2025, the Group's total trade and other receivables and prepayments amounted to HKD 569 million, an increase from December 31, 2024, with trade receivables of HKD 6.396 million primarily from rental income, most of which are aged within one month Trade and Other Receivables and Prepayments (As of June 30) | Item | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | | :--- | :--- | :--- | | Trade Receivables | 6,396 | 7,508 | | Other Receivables | 179,444 | 181,269 | | Tender Prepayments | 50,000 | - | | Prepaid Sales Taxes | 296,276 | 278,908 | | **Total** | **568,610** | **503,910** | Trade Receivables Ageing Analysis | Ageing | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | | :--- | :--- | :--- | | Within one month | 5,085 | 4,618 | | Two to three months | 832 | 2,541 | | Four to six months | 252 | 334 | | Over six months | 227 | 15 | [Trade and Other Payables and Accruals](index=10&type=section&id=Trade%20and%20Other%20Payables%20and%20Accruals) As of June 30, 2025, the Group's total trade and other payables and accruals amounted to HKD 1.226 billion, a decrease from December 31, 2024, with trade payables of HKD 504 million primarily from construction costs, most of which are aged within one month Trade and Other Payables and Accruals (As of June 30) | Item | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | | :--- | :--- | :--- | | Trade Payables | 503,788 | 790,514 | | Other Payables | 74,290 | 108,691 | | Accrued Operating Expenses | 422,492 | 411,851 | | Deposits Received from Pre-sales (from Statement of Financial Position) | 4,311,684 | 4,291,758 | | **Total** | **1,225,609** | **1,539,793** | Trade Payables Ageing Analysis | Ageing | June 30, 2025 (HKD Thousand) | December 31, 2024 (HKD Thousand) | | :--- | :--- | :--- | | Within one month | 502,029 | 788,891 | | Two to three months | 55 | 123 | | Four to six months | 71 | 12 | | Over six months | 1,633 | 1,488 | [Management Discussion and Analysis](index=11&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=11&type=section&id=Business%20Review) During the period, the Group's turnover was HKD 1.052 billion, with total attributable turnover of HKD 7.179 billion, reporting a profit attributable to equity holders of HKD 114 million and core earnings of HKD 99 million, primarily impacted by downward pressure on sales prices, while maintaining strong liquidity and a low gearing ratio, with Hong Kong operations recording HKD 500 million in attributable sales from Kai Tak Bay and Mainland China operations achieving approximately RMB 400 million in contracted sales, and a fair value change of approximately HKD 300 million from the investment in Galaxy Entertainment recognized directly in reserves, as the Group continues to monitor the land market for new investment opportunities [Operating Results](index=11&type=section&id=Operating%20Results) For the six months ended June 30, 2025, the Group's turnover was HKD 1.052 billion, with total attributable turnover of HKD 7.179 billion, reporting a profit attributable to equity holders of HKD 114 million and core earnings of HKD 99 million, primarily due to reduced gross profit from downward pressure on sales prices, while holding HKD 8.698 billion in cash and bank deposits and HKD 18.707 billion in undrawn bank facilities, with contracted attributable sales of approximately HKD 1.4 billion and unconfirmed contracted sales of approximately HKD 6 billion expected to be recognized from the second half of 2025 - The Group's turnover was **HKD 1.052 billion**, and total attributable turnover was **HKD 7.179 billion**[23](index=23&type=chunk) - Profit attributable to equity holders of the Company was **HKD 114 million**, with core earnings of **HKD 99 million**, primarily due to reduced gross profit from downward pressure on sales prices in Hong Kong and Mainland China[23](index=23&type=chunk) - The Group held **HKD 8.698 billion** in cash and bank deposits and **HKD 18.707 billion** in undrawn bank facilities[23](index=23&type=chunk) - Contracted attributable sales for the period were approximately **HKD 1.4 billion**, with unconfirmed contracted sales of approximately **HKD 6 billion**, expected to be recognized from the second half of 2025[24](index=24&type=chunk) [Hong Kong Operations](index=11&type=section&id=Hong%20Kong%20Operations) The Hong Kong property market gradually stabilized in the first half of 2025, with the Group's joint venture project, Kai Tak Bay, recording HKD 500 million in contracted attributable sales, and pre-sold units at Grand Mayfair, KAI PARC, and Kai Tak Bay commencing delivery, while investment properties maintained stable occupancy rates, with J SENSES achieving an average occupancy of 98% and the commercial portions of K.CITY and K.SUMMIT fully leased - The Hong Kong property market **gradually stabilized** in the first half of 2025[25](index=25&type=chunk) - Kai Tak Bay recorded contracted attributable sales of **HKD 500 million**[25](index=25&type=chunk) - Pre-sold units at Grand Mayfair in Yuen Long, KAI PARC in Tseung Kwan O, and Kai Tak Bay **began delivery** to buyers in late March and early April[25](index=25&type=chunk) - The average occupancy rate of the high-end dining and shopping complex J SENSES reached **98%**, while the commercial portions of K.CITY and K.SUMMIT were both **fully leased**[25](index=25&type=chunk) [Mainland China Operations](index=12&type=section&id=Mainland%20China%20Operations) During the period, the Group continued to sell remaining units from several launched projects in Mainland China, including K. Wah Centre in Guangzhou, K. Wah Peak in Suzhou, and K. Wah New Metropolis in Jiangmen, generating approximately RMB 400 million in contracted sales, with projects under development progressing as planned, and investment property leasing performance remaining favorable, as Shanghai K. Wah Centre maintained an average occupancy rate of approximately 85%, serviced apartments achieved an overall occupancy rate of approximately 95%, Shanghai Yingkai Cultural and Creative Plaza was fully leased, and Shanghai Fiyue Lane reached an occupancy rate of 80% at period-end - The Group continued to sell remaining units from several launched projects, including K. Wah Centre in Guangzhou and K. Wah Peak in Suzhou, and launched a new batch of units at K. Wah New Metropolis in Jiangmen, collectively generating approximately **RMB 400 million** in contracted sales for the Group[26](index=26&type=chunk) - The premium office building Shanghai K. Wah Centre maintained an average occupancy rate of approximately **85%**, while serviced apartments in Shanghai's Jing'an and Xuhui districts recorded an overall occupancy rate of approximately **95%**[27](index=27&type=chunk) - Shanghai Yingkai Cultural and Creative Plaza was **fully leased**, and Shanghai Fiyue Lane achieved an occupancy rate of **80%** at period-end[27](index=27&type=chunk) [Land Bank Replenishment](index=12&type=section&id=Land%20Bank%20Replenishment) The Group will continue to monitor the land market, assess opportunities to replenish land reserves in Hong Kong and Mainland China, and seek new investment opportunities through various channels with the aim of maximizing potential returns - The Group will continue to **monitor the land market**, assess opportunities to **replenish land reserves** in Hong Kong and Mainland China[28](index=28&type=chunk) - The Group aims to **maximize potential returns** by seeking **new investment opportunities** through various channels[28](index=28&type=chunk) [Investment in Galaxy Entertainment](index=12&type=section&id=Investment%20in%20Galaxy%20Entertainment) The Group continues to hold 162 million shares in Galaxy Entertainment, representing approximately 3.71% equity interest, with the share price at period-end being HKD 34.85 per share, an increase from HKD 33 per share at the end of 2024, resulting in a fair value change of approximately HKD 300 million recognized directly in reserves, and Galaxy Entertainment declared a final dividend of HKD 0.5 per share in March 2025 and an interim dividend of HKD 0.7 per share in August - The Group continues to hold an investment of **162 million shares**, representing approximately **3.71%** equity interest in Galaxy Entertainment[29](index=29&type=chunk) - At period-end, Galaxy Entertainment's share price was **HKD 34.85** per share, compared to **HKD 33** per share as of December 31, 2024[29](index=29&type=chunk) - A fair value change of approximately **HKD 300 million** was recognized directly in reserves[29](index=29&type=chunk) - Galaxy Entertainment declared a final dividend of **HKD 0.5** per share in March 2025 and an interim dividend of **HKD 0.7** per share in August[29](index=29&type=chunk) [Market Review and Outlook](index=12&type=section&id=Market%20Review%20and%20Outlook) The first half of 2025 saw mixed global economic conditions, with anticipated slower global growth and persistent inflationary pressures, while Hong Kong's economy experienced moderate growth and the property market showed signs of recovery despite high residential inventory, and Mainland China's property market gradually stabilized with government policy support, though national sales area and value still declined, with the Group expecting a challenging global economic environment in the second half and focusing on delivering quality products, stringent cost control, and seeking new investment opportunities [Global, Mainland China, and Hong Kong Economy](index=12&type=section&id=Global%2C%20Mainland%20China%2C%20and%20Hong%20Kong%20Economy) In the first half of 2025, global economic growth was moderate but trade tensions escalated, with global growth projected to slow to 2.3% to 2.9% and global inflation expected to recede to 3.6%, though underlying inflationary pressures remain significant, while the US economy is projected to grow by 1.6% to 2%, the Eurozone by 0.9% to 1%, and China's economy is expected to slow to 4.5% to 4.7%, with Hong Kong's Q1 GDP growing 3.1% year-on-year, driven by exports and investment, despite a narrow decline in private consumption expenditure - Global economic growth is projected to slow from **3.3%** in 2024 to approximately **2.3% to 2.9%** in 2025[30](index=30&type=chunk) - Overall global inflation is expected to recede, with G20 economies' inflation rate projected to adjust from **6.2%** to **3.6%** in 2025[30](index=30&type=chunk) - China's economic growth is projected to slow to **4.5% to 4.7%** in 2025[30](index=30&type=chunk) - Hong Kong's economy recorded moderate growth in Q1 2025, with real GDP increasing by **3.1%** year-on-year[31](index=31&type=chunk) [Hong Kong Property Market](index=13&type=section&id=Hong%20Kong%20Property%20Market) The Hong Kong property market showed signs of recovery in the first half of 2025, with 9,334 primary residential transactions, a 25% increase from the second half of 2024, although high residential property inventory may exert pressure on sales prices, while the decrease in HIBOR rekindled buyer interest, positively impacting the market - The Hong Kong property market showed **signs of recovery** in the first half of 2025[32](index=32&type=chunk) - Primary residential transactions totaled **9,334**, a **25%** increase compared to the second half of 2024[32](index=32&type=chunk) - High residential property inventory may exert **pressure on sales prices**[32](index=32&type=chunk) [Mainland China Property Market](index=13&type=section&id=Mainland%20China%20Property%20Market) The Mainland China property market gradually stabilized with government intervention and policy support, including relaxed credit conditions and promotion of affordable housing programs, leading to a gradual recovery in housing demand, especially in first-tier cities, despite national new commercial residential sales area and value decreasing by 3.5% and 5.5% year-on-year, respectively, with buyer confidence remaining weak in other first and second-tier cities, though long-term growth is expected driven by urbanization and infrastructure development - The Mainland China property market has gradually shown **signs of stabilization** driven by government intervention and policy support[33](index=33&type=chunk) - The government has implemented various measures to support the property market, including **relaxing credit conditions** and **promoting affordable housing programs**[33](index=33&type=chunk) - National new commercial residential sales area and sales value decreased by **3.5%** and **5.5%** year-on-year, respectively[33](index=33&type=chunk) [Outlook for Second Half of 2025](index=13&type=section&id=Outlook%20for%20Second%20Half%20of%202025) Looking ahead to the second half of 2025, the global economic environment is expected to remain challenging, with slower growth and persistent uncertainties potentially increasing market volatility, and the impact of tariffs is anticipated to first reflect in core commodity prices, then spread to the service sector, while the Group will focus on delivering high-quality products, maintaining a strong brand image, and strictly implementing cost control and project management, continuing to concentrate on premium projects in Hong Kong and first-tier cities in Mainland China, seeking new investment opportunities - The global economic environment is expected to remain **challenging**, with **slower growth** and **persistent uncertainties** potentially **increasing market volatility**[34](index=34&type=chunk) - The impact of **tariffs** is anticipated to first reflect in **core commodity prices** in the second half of 2025, then spread to the **service sector**[34](index=34&type=chunk) - The Group will focus on delivering **high-quality products**, maintaining a **strong brand image**, and strictly implementing **cost control** and **project management**[34](index=34&type=chunk) - The Group will continue to concentrate on **premium projects** in Hong Kong and first-tier cities in Mainland China, seeking **new investment opportunities** to prepare for market recovery[34](index=34&type=chunk) [Financial Review](index=14&type=section&id=Financial%20Review) The Group's financial position remains strong, with total capital employed of HKD 56 billion, total borrowings reduced to HKD 13.437 billion, and the average borrowing interest rate falling from 4.3% to 3.2%, with the gearing ratio decreasing from 12% to 11%, while maintaining ample liquidity with HKD 18.707 billion in undrawn bank facilities and HKD 8.698 billion in cash and bank deposits, employing a conservative treasury policy to manage foreign exchange and interest rate risks through derivative financial instruments, and having pledged assets with a book value of HKD 4.56 billion and providing various guarantees for joint ventures, associates, and property buyers' mortgages [Financial Position](index=14&type=section&id=Financial%20Position) As of June 30, 2025, the Group's financial position remained strong, with total capital employed of HKD 56 billion, a slight decrease from HKD 57 billion as of December 31, 2024, and the number of issued shares of the Company remaining unchanged during the period at 3,152,728,607 shares - The Group's financial position remains **strong**[35](index=35&type=chunk) - Total capital employed was **HKD 56 billion** (December 31, 2024: **HKD 57 billion**)[35](index=35&type=chunk) - The number of issued shares of the Company remained **unchanged** during the period, at **3,152,728,607 shares** as of June 30, 2025[35](index=35&type=chunk) [Liquidity, Financial Resources and Gearing Ratio](index=14&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Gearing%20Ratio) As of June 30, 2025, the Group's total borrowings were HKD 13.437 billion, with 27% repayable within one year, and the average borrowing interest rate decreased from 4.3% last year to 3.2%, while holding HKD 18.707 billion in undrawn bank facilities, including HKD 15.620 billion for working capital and HKD 3.087 billion for project loans, and cash and bank deposits of HKD 8.698 billion, with approximately 69% denominated in RMB, resulting in a gearing ratio decrease from 12% at the end of last year to 11% Liquidity and Gearing Ratio (As of June 30) | Indicator | June 30, 2025 (HKD) | December 31, 2024 (HKD) | | :--- | :--- | :--- | | Total Borrowings | 13,437,000,000 | 14,563,000,000 | | Undrawn Bank Facilities | 18,707,000,000 | 17,666,000,000 | | Cash and Bank Deposits | 8,698,000,000 | 9,649,000,000 | | Gearing Ratio | 11% | 12% | | Average Borrowing Interest Rate | 3.2% | 4.3% (last year) | - The repayment profile of borrowings is within five years (except for **HKD 354 million** repayable after five years)[36](index=36&type=chunk) - The Group signed a **HKD 750 million** five-year revolving loan in February and a **HKD 750 million** four-year revolving and term loan in April, refinancing at favorable costs and enhancing the Group's financing capabilities[37](index=37&type=chunk) [Treasury Policy](index=14&type=section&id=Treasury%20Policy) The Group adopts a conservative policy to manage foreign exchange risk, utilizing forward foreign exchange contracts to mitigate risk, and uses interest rate swap contracts to alleviate the impact of significant interest rate fluctuations, with outstanding interest rate swap contracts totaling HKD 600 million at period-end, while also entering into cross-currency swap contracts to hedge part of its net investment in Mainland China operations, with a principal amount of approximately HKD 2.8 billion, and does not use derivative financial instruments for speculative purposes, strictly monitoring their use, with approximately 65% of bank borrowings denominated in HKD and approximately 50% bearing floating interest rates - The Group continues to adopt a **conservative policy** to manage foreign exchange risk, utilizing forward foreign exchange contracts to minimize risk[38](index=38&type=chunk) - The Group also utilizes interest rate swap contracts, where appropriate, to mitigate the impact of significant interest rate fluctuations on its medium and long-term operations; outstanding interest rate swap contracts totaled **HKD 600 million** at period-end[38](index=38&type=chunk) - The Group entered into cross-currency swap contracts to hedge part of its net investment in Mainland China operations, with a principal amount of approximately **HKD 2.8 billion**[38](index=38&type=chunk) - The Group does not use derivative financial instruments for **speculative purposes**[39](index=39&type=chunk) - Approximately **65%** of the Group's bank borrowings are denominated in HKD, with the remainder in RMB, and approximately **50%** bear floating interest rates[39](index=39&type=chunk) [Pledge of the Group's Assets](index=15&type=section&id=Pledge%20of%20the%20Group%27s%20Assets) As of June 30, 2025, certain subsidiaries of the Group pledged assets (including investment properties and properties under development) with a total book value of HKD 4.56 billion, an increase from HKD 4.341 billion as of December 31, 2024, as collateral for the Group's borrowings Pledged Assets (As of June 30) | Indicator | June 30, 2025 (HKD) | December 31, 2024 (HKD) | | :--- | :--- | :--- | | Pledged Assets Book Value | 4,560,000,000 | 4,341,000,000 | - Pledged assets include **investment properties** and **properties under development**, serving as **collateral** for the Group's bank borrowings[40](index=40&type=chunk) [Guarantees](index=15&type=section&id=Guarantees) As of June 30, 2025, the Group provided bank guarantees for credit facilities of HKD 5.264 billion for certain joint ventures and HKD 980 million for associates, with utilized credit facilities of HKD 4.707 billion and HKD 980 million, respectively, and additionally provided guarantees of HKD 1.365 billion for property buyers' mortgage loans, while the Company also provided guarantees for credit facilities totaling approximately HKD 34.839 billion for subsidiaries, joint ventures, and associates Guarantees Provided (As of June 30) | Guaranteed Party | June 30, 2025 (HKD) | December 31, 2024 (HKD) | | :--- | :--- | :--- | | Joint Venture Credit Facility Guarantees | 5,264,000,000 | 8,151,000,000 | | Associate Credit Facility Guarantees | 980,000,000 | 980,000,000 | | Property Buyer Mortgage Loan Guarantees | 1,365,000,000 | 1,617,000,000 | | **Total Credit Facility Guarantees by the Company for Subsidiaries, Joint Ventures, and Associates** | **34,839,000,000** | **37,073,000,000** | - The Company provided bank guarantees for credit facilities of **HKD 28.596 billion** for certain subsidiaries, **HKD 5.264 billion** for joint ventures, and **HKD 980 million** for associates[42](index=42&type=chunk) [Employees and Remuneration Policy](index=15&type=section&id=Employees%20and%20Remuneration%20Policy) The Group believes that the quality, performance, and commitment of its employees are crucial for long-term development, with a remuneration system designed to provide competitive compensation to attract, retain, and motivate talented individuals, including an employee share option scheme established since 1989, and a strong emphasis on employee training and development through annual internal and external training programs to achieve sustainable business development and meet employee needs - The Group believes that the **quality, performance, and commitment** of its employees are key to the Company's long-term development and success[43](index=43&type=chunk) - The Group's remuneration system aims to provide **competitive compensation** to attract, retain, and motivate talented individuals[43](index=43&type=chunk) - Since 1989, the Group has established an **employee share option scheme** for its executives and employees to provide competitive remuneration and retain talented individuals long-term[43](index=43&type=chunk) - The Group emphasizes **employee training and development opportunities** as a crucial element in its human resources strategy[43](index=43&type=chunk) [Other Information](index=16&type=section&id=Other%20Information) [Corporate Governance](index=16&type=section&id=Corporate%20Governance) The Company's Board of Directors and management uphold strong corporate governance principles, committed to enhancing shareholder value, and have complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules of The Stock Exchange of Hong Kong Limited, with previous temporary deviations regarding the Chairman's responsibilities and Company Secretary's reporting having been properly addressed - The Company's Board of Directors and management uphold **strong corporate governance principles** to achieve the goal of **enhancing shareholder value** through sound management[44](index=44&type=chunk) - The Company has complied with the code provisions of the **Corporate Governance Code** set out in Appendix C1 of the Listing Rules of The Stock Exchange of Hong Kong Limited[44](index=44&type=chunk) - Following the appointment of the Chairman of the Board and Joint Managing Director of the Company on March 27, 2025, the Board believes that previous **temporary deviations** have been **properly addressed**[44](index=44&type=chunk) [Audit Committee](index=16&type=section&id=Audit%20Committee) The Company's Audit Committee convened on August 15, 2025, to review the accounting principles and practices adopted by the Company and discuss matters related to audit strategy, risk management, internal controls, and financial reporting, with the Group's unaudited interim results for the six months ended June 30, 2025, having been reviewed by the Audit Committee and by independent auditor PricewaterhouseCoopers in accordance with Hong Kong Standard on Review Engagements 2410 - The Company's Audit Committee convened on **August 15, 2025**, to review the accounting principles and practices adopted by the Company and discuss matters related to audit strategy, risk management, internal controls, and financial reporting[45](index=45&type=chunk) - The Group's unaudited interim results for the six months ended June 30, 2025, have been reviewed by the Audit Committee and by independent auditor **PricewaterhouseCoopers** in accordance with Hong Kong Standard on Review Engagements 2410[45](index=45&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=16&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and as of period-end, the Company also held no treasury shares - During the six months ended June 30, 2025, neither the Company nor its subsidiaries had **no purchase, sale, or redemption** of any of the Company's listed securities[46](index=46&type=chunk) - As of June 30, 2025, the Company held **no treasury shares**[46](index=46&type=chunk) [Interim Dividend](index=16&type=section&id=Interim%20Dividend) The Board has resolved to declare an interim cash dividend of 2 HK cents per share for the six months ended June 30, 2025, totaling HKD 63.055 million, with the dividend record date set for September 15, 2025, and dividend warrants expected to be mailed to shareholders on October 27, 2025 - The Board resolved to declare an interim cash dividend of **2 HK cents** per share, totaling **HKD 63.055 million**, for the six months ended June 30, 2025, payable on **October 27, 2025**, to shareholders on record as of **September 15, 2025**[47](index=47&type=chunk) [Closure of Register of Members](index=17&type=section&id=Closure%20of%20Register%20of%20Members) To determine shareholders' entitlement to the interim dividend, the Company will suspend the registration of share transfers from September 10, 2025, to September 15, 2025 (both dates inclusive), requiring shareholders to complete transfer registration by 4:30 p.m. on September 9, 2025 - The Company will suspend the registration of share transfers from **September 10, 2025, to September 15, 2025** (both dates inclusive), to determine shareholders' entitlement to the interim dividend[48](index=48&type=chunk) - Shareholders are requested to lodge all share transfer documents, together with the relevant share certificates, with the Company's Hong Kong Share Registrar, **Computershare Hong Kong Investor Services Limited**, by **4:30 p.m. on September 9, 2025**, for registration[48](index=48&type=chunk) [Further Information on Website](index=17&type=section&id=Further%20Information%20on%20Website) This announcement has been published on the Company's website (www.kwih.com) and the HKEX website (www.hkexnews.hk), with the Company's 2025 Interim Report, containing all applicable information required by the Listing Rules, to be published on these websites in late September 2025 and mailed to shareholders who have arranged to receive company communications - This announcement has been published on the Company's website (**www.kwih.com**) and the website of Hong Kong Exchanges and Clearing Limited (**www.hkexnews.hk**)[49](index=49&type=chunk) - The Company's **2025 Interim Report**, containing all applicable information required by the Listing Rules, will be published on the Company's and HKEX websites in **late September 2025** and mailed to shareholders who have arranged to receive company communications[49](index=49&type=chunk) [Directors](index=17&type=section&id=Directors) As of the date of this announcement, the Company's Board of Directors includes Executive Directors Mr. Lui Yiu Tung (Chairman), Ms. Jenny Lui Yuen Yu (Joint Managing Director), and Mr. Lui Yiu Wah (Joint Managing Director); Non-executive Director Dr. Moses Cheng Mo Chi; and Independent Non-executive Directors Mr. Wong Kwai Lam, Mr. Nick Ralph, and Mr. Cheung Kin Sang - Executive Directors are **Mr. Lui Yiu Tung (Chairman)**, **Ms. Jenny Lui Yuen Yu (Joint Managing Director)**, and **Mr. Lui Yiu Wah (Joint Managing Director)**[50](index=50&type=chunk) - Non-executive Director is **Dr. Moses Cheng Mo Chi**[50](index=50&type=chunk) - Independent Non-executive Directors are **Mr. Wong Kwai Lam**, **Mr. Nick Ralph**, and **Mr. Cheung Kin Sang**[50](index=50&type=chunk)

[Report Overview and Financial Highlights](index=1&type=section&id=Report%20Overview%20and%20Financial%20Highlights) This section summarizes Win Hanverky Holdings Limited's H1 2025 financial and operational highlights, noting narrowed losses from improved fashion retail despite production challenges [Company Information and Report Type](index=1&type=section&id=Company%20Information%20and%20Report%20Type) This section identifies the company and the nature of the interim financial report - Company name: Win Hanverky Holdings Limited, stock code: **3322**[2](index=2&type=chunk) - Report type: Interim Results Announcement for the six months ended June 30, 2025[2](index=2&type=chunk) [Financial Summary](index=1&type=section&id=Financial%20Summary) This section presents a concise overview of the company's key financial performance indicators Financial Summary for the Six Months Ended June 30, 2025 (HKD thousands) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,736,568 | 1,756,510 | –1.1% | | Gross Profit | 324,359 | 325,854 | –0.5% | | Gross Margin | 18.7% | 18.6% | +0.1 percentage points | | Operating Loss | (28,238) | (62,015) | –54.5% | | Loss for the Period | (56,055) | (85,710) | –34.6% | | Basic Loss Per Share (HK cents) | (3.4) | (6.3) | –46.0% | [Operational Summary](index=1&type=section&id=Operational%20Summary) This section highlights key operational performance drivers and their impact on the company's financial results - Revenue decreased by **1.1%**, primarily due to a decline in the manufacturing business, partially offset by increased revenue from the premium fashion retail business[4](index=4&type=chunk) - The premium fashion retail business recorded an operating profit of **HKD 6.9 million** (compared to an operating loss of HKD 52.2 million in the same period of 2024), successfully turning profitable due to the introduction of franchised stores and reduced selling and distribution costs (with no impairment losses)[4](index=4&type=chunk) - The sportswear manufacturing business recorded an operating loss of **HKD 17.6 million** (compared to an operating profit of HKD 1.4 million in the same period of 2024), mainly due to raw material issues at Southeast Asian production facilities handling major orders, leading to higher-than-expected production and transportation costs[4](index=4&type=chunk) - Operating loss significantly reduced to **HKD 28.2 million**, and loss for the period decreased to **HKD 56.1 million**, a substantial reduction from the prior year[3](index=3&type=chunk)[4](index=4&type=chunk) - Financial and liquidity positions remain robust, with cash and bank balances at **HKD 437.1 million** and the net debt-to-asset ratio decreasing to **7.1%**[4](index=4&type=chunk) - The Board of Directors decided not to recommend an interim dividend to conserve financial resources[4](index=4&type=chunk) [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) This section presents the consolidated income statement, comprehensive income, and financial position for H1 2025, showing narrowed losses, improved comprehensive income, increased cash, and higher borrowings [Consolidated Income Statement](index=2&type=section&id=Consolidated%20Income%20Statement) This statement details the company's revenues, costs, and resulting profit or loss for the period Key Data from Consolidated Income Statement (For the six months ended June 30) (HKD thousands) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 1,736,568 | 1,756,510 | | Cost of Sales | (1,412,209) | (1,430,656) | | Gross Profit | 324,359 | 325,854 | | Selling and Distribution Costs | (161,055) | (187,428) | | General and Administrative Expenses | (188,033) | (203,944) | | Operating Loss | (28,238) | (62,015) | | Loss for the Period | (56,055) | (85,710) | | Basic Loss Per Share (HK cents) | (3.4) | (6.3) | [Consolidated Statement of Comprehensive Income](index=3&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) This statement presents the company's total comprehensive income, including items not recognized in profit or loss Key Data from Consolidated Statement of Comprehensive Income (For the six months ended June 30) (HKD thousands) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Loss for the Period | (56,055) | (85,710) | | Exchange Differences on Translation | 22,259 | (26,295) | | Total Comprehensive Income for the Period | (34,032) | (110,324) | | Total Comprehensive Income for the Period Attributable to Equity Holders of the Company | (22,999) | (103,380) | [Consolidated Statement of Financial Position](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) This statement provides a snapshot of the company's assets, liabilities, and equity at a specific point in time Key Data from Consolidated Statement of Financial Position (HKD thousands) | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Non-current Assets | 1,017,716 | 1,051,728 | | Current Assets | 1,683,839 | 1,645,908 | | Inventories | 765,181 | 716,368 | | Trade and Bills Receivables | 324,016 | 526,465 | | Cash and Bank Balances | 437,136 | 250,321 | | Current Liabilities | 1,274,618 | 1,205,273 | | Borrowings (Current) | 529,981 | 464,985 | | Non-current Liabilities | 115,810 | 147,204 | | Total Equity | 1,311,127 | 1,345,159 | [Notes to the Condensed Interim Financial Information](index=6&type=section&id=Notes%20to%20the%20Condensed%20Interim%20Financial%20Information) This section details the basis of preparation, segment information, other income/expenses, finance costs, income tax, loss per share, dividend policy, and trade receivables/payables and borrowings [1. Basis of Preparation](index=6&type=section&id=1.%20Basis%20of%20Preparation) This section outlines the accounting standards and principles used in preparing the interim financial information - The condensed interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[9](index=9&type=chunk) - Revisions to standards applicable to the current reporting period had no significant impact on the Group's results and financial position, and the Group has not applied new standards, amendments, or interpretations not yet effective[9](index=9&type=chunk) - The accounting policies applied are consistent with those adopted in the annual financial statements for the year ended December 31, 2024[9](index=9&type=chunk) [2. Segment Information](index=7&type=section&id=2.%20Segment%20Information) This section provides a breakdown of the company's financial performance and assets by its main business segments and geographical regions - The Group's principal business segments are manufacturing (sportswear manufacturing, high-performance outdoor apparel manufacturing) and premium fashion retail[10](index=10&type=chunk)[13](index=13&type=chunk) - Executive Directors assess business segment performance based on operating results, excluding net finance costs within each segment's results[11](index=11&type=chunk) Revenue by Product or Service Line (For the six months ended June 30) (HKD thousands) | Product/Service Line | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Sale of Goods | 1,732,370 | 1,743,005 | | Provision of Services | 4,198 | 13,505 | | **Total Revenue** | **1,736,568** | **1,756,510** | - The manufacturing segment primarily produces and sells sportswear and high-performance outdoor apparel on an original equipment manufacturing basis, while the premium fashion retail segment retails premium fashion products and holds distribution rights in various regions[13](index=13&type=chunk) H1 2025 Segment Results (HKD thousands) | Segment | Revenue | Operating Profit/(Loss) | | :--- | :--- | :--- | | Sportswear Manufacturing | 1,191,589 | (17,629) | | High-Performance Outdoor Apparel Manufacturing | 250,480 | (17,468) | | Premium Fashion Retail | 294,499 | 6,859 | | **Total** | **1,736,568** | **(28,238)** | H1 2024 Segment Results (HKD thousands) | Segment | Revenue | Operating Profit/(Loss) | | :--- | :--- | :--- | | Sportswear Manufacturing | 1,215,111 | 1,409 | | High-Performance Outdoor Apparel Manufacturing | 260,465 | (11,270) | | Premium Fashion Retail | 280,934 | (52,154) | | **Total** | **1,756,510** | **(62,015)** | Segment Assets and Liabilities (HKD thousands) | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | **Total Assets** | **2,701,555** | **2,697,636** | | **Total Liabilities** | **(1,390,428)** | **(1,352,477)** | Revenue by Geographical Region (For the six months ended June 30) (HKD thousands) | Region | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Europe | 650,657 | 688,353 | | Mainland China | 455,456 | 484,360 | | Other Asian Countries | 241,054 | 222,083 | | United States | 219,113 | 215,684 | | Hong Kong | 49,693 | 54,858 | | Canada | 13,821 | 9,082 | | Others | 106,774 | 82,090 | | **Total** | **1,736,568** | **1,756,510** | Non-current Assets by Geographical Region (HKD thousands) | Region | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Hong Kong | 332,187 | 339,596 | | Mainland China | 238,330 | 241,876 | | Vietnam | 175,521 | 191,042 | | Cambodia | 127,888 | 130,295 | | Others | 17,278 | 19,848 | | **Total** | **891,204** | **922,657** | [3. Other (Expenses) / Income — Net](index=11&type=section&id=3.%20Other%20(Expenses)%20%2F%20Income%20—%20Net) This section details the various non-operating income and expenses that impact the company's overall financial results Other (Expenses) / Income — Net (HKD thousands) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Net Exchange (Losses) / Gains | (5,520) | 2,510 | | Government Subsidies | 636 | 1,095 | | Rental Income | 1,255 | 783 | | Loss on Disposal of Property, Plant and Equipment and Lease Modifications — Net | (357) | (7) | | Others | 477 | (878) | | **Total** | **(3,509)** | **3,503** | [4. Finance Costs — Net](index=12&type=section&id=4.%20Finance%20Costs%20—%20Net) This section outlines the company's financing income and expenses, including interest on borrowings and lease liabilities Finance Costs — Net (HKD thousands) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Finance Income | 763 | 972 | | Interest on Bank Borrowings | (12,764) | (15,031) | | Interest on Lease Liabilities | (6,534) | (8,168) | | **Finance Costs — Net** | **(18,535)** | **(22,227)** | [5. Income Tax](index=12&type=section&id=5.%20Income%20Tax) This section details the current and deferred income tax expenses and applicable tax rates Income Tax Expense (HKD thousands) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Current Tax | 3,396 | 614 | | Deferred Tax | 5,451 | 1,412 | | **Total** | **8,847** | **2,026** | - The corporate income tax rate in Mainland China is **25%**, and the Hong Kong profits tax rate is **16.5%**[22](index=22&type=chunk) [6. Loss Per Share](index=13&type=section&id=6.%20Loss%20Per%20Share) This section presents the basic and diluted loss per share calculations for the period Loss Per Share (HK cents) | Indicator | 2025 (HK cents) | 2024 (HK cents) | | :--- | :--- | :--- | | Basic Loss Per Share | (3.4) | (6.3) | | Diluted Loss Per Share | (3.4) | (6.3) | - Basic loss per share is calculated based on the consolidated loss attributable to equity holders of the Company for the period and the weighted average number of **1,284,400,000** ordinary shares in issue[23](index=23&type=chunk) [7. Dividends](index=13&type=section&id=7.%20Dividends) This section states the Board's decision regarding interim dividend payments - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (June 30, 2024: nil)[24](index=24&type=chunk) [8. Trade and Bills Receivables](index=13&type=section&id=8.%20Trade%20and%20Bills%20Receivables) This section provides details on the company's trade and bills receivables, including their aging analysis Trade and Bills Receivables (HKD thousands) | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Trade Receivables | 331,370 | 538,755 | | Bills Receivables | 5,993 | 3,957 | | Less: Loss Allowance for Trade Receivables | (13,347) | (16,247) | | **Total** | **324,016** | **526,465** | Aging Analysis of Trade and Bills Receivables (HKD thousands) | Aging | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | 0 to 90 days | 317,446 | 516,824 | | 91 to 180 days | 8,225 | 11,172 | | 181 to 365 days | 3,405 | 3,870 | | Over 365 days | 8,287 | 10,846 | | **Total** | **337,363** | **542,712** | - The Group generally grants credit terms of up to **90 days** to customers, with most sales made on an open account basis[25](index=25&type=chunk) [9. Trade Payables](index=14&type=section&id=9.%20Trade%20Payables) This section presents the aging analysis of the company's trade payables Aging Analysis of Trade Payables (HKD thousands) | Aging | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | 0 to 90 days | 290,036 | 255,461 | | 91 to 180 days | 3,701 | 19,729 | | 181 to 365 days | 1,373 | 998 | | Over 365 days | 2,572 | 2,749 | | **Total** | **297,682** | **278,937** | [10. Borrowings](index=14&type=section&id=10.%20Borrowings) This section details the company's borrowings, including their maturity profiles Borrowings Maturity Profile (HKD thousands) | Maturity Time | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Within one year | 461,981 | 394,485 | | After one year but within two years | 5,000 | 5,000 | | After two years but within five years | 15,000 | 15,000 | | After five years | 48,000 | 50,500 | | **Total** | **529,981** | **464,985** | - The Group's borrowings are accounted for at amortized cost, with interest-bearing bank borrowings repayable within one year or on demand[27](index=27&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's analysis of H1 performance, noting improved profitability from fashion retail and cost control despite production challenges, with a cautious outlook [Overall Financial and Operational Performance](index=15&type=section&id=Overall%20Financial%20and%20Operational%20Performance) This section summarizes the Group's overall financial and operational results for the period, highlighting key drivers and outcomes - The Group's revenue was **HKD 1,736.6 million**, a **1.1%** year-on-year decrease, primarily due to a decline in manufacturing revenue, partially offset by an increase in premium fashion retail revenue[28](index=28&type=chunk) - The premium fashion retail business recorded an operating profit of **HKD 6.9 million**, a significant improvement from an operating loss of HKD 52.2 million in the prior year, mainly attributed to the introduction of franchised stores and reduced selling and distribution costs (with no impairment losses)[28](index=28&type=chunk) - The sportswear manufacturing business recorded an operating loss of **HKD 17.6 million**, primarily due to raw material issues at Southeast Asian production facilities handling certain major orders, leading to higher-than-expected production and transportation costs[29](index=29&type=chunk) - Overall operating loss significantly decreased to **HKD 28.2 million**, and loss for the period reduced to **HKD 56.1 million**[29](index=29&type=chunk) - The Board of Directors does not recommend an interim dividend to conserve financial resources for challenges[29](index=29&type=chunk) [Business Segment Review](index=16&type=section&id=Business%20Segment%20Review) This section provides a detailed review of the performance of each of the Group's business segments - The operating environment in H1 2025 was complex and volatile, with the Group facing economic and industry-specific challenges[30](index=30&type=chunk) Sportswear Manufacturing Business Performance (HKD thousands) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,191,600 | 1,215,100 | -1.9% | | Operating Profit/(Loss) | (17,600) | 1,400 | N/A | - The operating loss in the sportswear manufacturing business was mainly due to raw material issues at Southeast Asian production facilities handling certain major orders, resulting in higher-than-expected production and transportation costs[32](index=32&type=chunk) High-Performance Outdoor Apparel Manufacturing Business Performance (HKD thousands) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 250,500 | 260,500 | -3.8% | | Operating Profit/(Loss) | (17,500) | (11,300) | N/A | - The decline in revenue for the high-performance outdoor apparel manufacturing business was due to the Group's strategic adjustments to reduce reliance on outsourced garment manufacturers while gradually increasing internal production capacity[33](index=33&type=chunk) Premium Fashion Retail Business Performance (HKD thousands) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 294,500 | 280,900 | +4.8% | | Operating Profit/(Loss) | 6,900 | (52,200) | N/A | - The premium fashion retail business successfully turned profitable primarily due to the introduction of franchised stores for rapidly growing brands in addition to directly operated stores, and reduced selling and distribution costs (with no recurrence of the HKD 20.1 million impairment loss from the prior year)[34](index=34&type=chunk) - As of June 30, 2025, the total number of directly operated stores decreased to **95** (June 30, 2024: 110)[35](index=35&type=chunk) [Business Outlook](index=17&type=section&id=Business%20Outlook) This section discusses the Group's expectations and strategies for its business segments in the upcoming period - The economic and political landscape in H2 2025 is expected to remain complex and unpredictable, and the Group will continue to manage its business operations flexibly and prudently in this ever-changing environment[36](index=36&type=chunk)[37](index=37&type=chunk) - The sportswear manufacturing business has a stable outlook, benefiting from global focus on health and fitness and active sports participation, and will focus on identifying new clients and expanding its customer base[38](index=38&type=chunk)[39](index=39&type=chunk) - The high-performance outdoor apparel manufacturing business is expected to maintain its momentum in the second half through strategic adjustments and a strong strategic partnership with an integrated sportswear enterprise group[40](index=40&type=chunk) - The premium fashion retail market faces challenges from evolving consumption patterns, with a difficult recovery path anticipated; the Group will expand its footprint and drive revenue growth through a direct-to-consumer plus franchise model, while strictly controlling costs and closing unprofitable stores[41](index=41&type=chunk) [Financial Position and Liquidity](index=19&type=section&id=Financial%20Position%20and%20Liquidity) This section assesses the company's financial health, cash flow, and ability to meet its short-term and long-term obligations - The Group's financial and liquidity positions remain robust, and it will continue to actively monitor the situation, implement strict cost control measures, and focus on cash flow management[42](index=42&type=chunk) Key Data on Financial Position and Liquidity (HKD thousands) | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Cash and Bank Balances | 437,100 | 250,300 | | Net Borrowings | 92,800 | 214,700 | | Available Undrawn Bank Facilities | 728,200 | 713,900 | | Net Debt-to-Asset Ratio | 7.1% | 16.0% | - The Group anticipates stable cash inflows from operating activities, along with sufficient cash and bank balances and readily available bank financing facilities, providing ample liquidity and financial resources to meet operating costs and financial obligations due in the next twelve months[42](index=42&type=chunk) [Foreign Currency Risk](index=19&type=section&id=Foreign%20Currency%20Risk) This section discusses the Group's exposure to foreign currency fluctuations and its management strategies - The Group considers foreign exchange risk for USD transactions and USD cash balances to be minimal due to the Hong Kong Dollar's peg to the US Dollar[43](index=43&type=chunk) - Approximately **70.7%** of revenue and **79.1%** of purchases are denominated in US Dollars[43](index=43&type=chunk) - Approximately **54.6%** of cash and bank balances are denominated in US Dollars, and approximately **45.7%** of bank borrowings are denominated in Hong Kong Dollars[43](index=43&type=chunk) - The Group continuously monitors foreign currency risk closely to ensure net exposure is at an acceptable level and may use appropriate financial instruments to mitigate foreign currency risk[43](index=43&type=chunk) [Other Disclosures](index=20&type=section&id=Other%20Disclosures) This section covers other important disclosures including employees, asset charges, contingent liabilities, directors' securities transactions, corporate governance, and financial review [Employees and Remuneration Policy](index=20&type=section&id=Employees%20and%20Remuneration%20Policy) This section details the Group's employee numbers and its remuneration and benefits policies - As of June 30, 2025, the Group had approximately **17,000** employees, consistent with December 31, 2024[44](index=44&type=chunk) - Employee remuneration is determined based on individual performance, work experience, and prevailing market conditions, with retirement benefits, insurance, medical allowances, and share option schemes provided[44](index=44&type=chunk) [Charges on the Group's Assets](index=20&type=section&id=Charges%20on%20the%20Group's%20Assets) This section discloses any assets of the Group that have been pledged as security for borrowings - As of June 30, 2025, the Group had no pledged bank deposits (December 31, 2024: HKD 1.2 million pledged)[45](index=45&type=chunk) - Land and properties with a total carrying amount of **HKD 80.5 million** (December 31, 2024: HKD 82.0 million) have been pledged to several banks for certain of the Group's banking facilities[45](index=45&type=chunk) [Contingent Liabilities](index=20&type=section&id=Contingent%20Liabilities) This section confirms the absence of any significant contingent liabilities or legal proceedings - As of June 30, 2025, the Group had no significant contingent liabilities or material litigation or arbitration[46](index=46&type=chunk) [Standard Code for Securities Transactions by Directors](index=20&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) This section confirms the company's adoption and directors' compliance with the standard code for securities transactions - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[47](index=47&type=chunk) - All Directors confirmed compliance with the required standards set out in the Model Code for the six months ended June 30, 2025[47](index=47&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=20&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) This section confirms no transactions involving the company's listed securities by the company or its subsidiaries - 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[48](index=48&type=chunk) - As of June 30, 2025, the Company and its subsidiaries did not hold any treasury shares[48](index=48&type=chunk) [Corporate Governance](index=21&type=section&id=Corporate%20Governance) This section confirms the company's adherence to corporate governance principles and code provisions - The Company has applied the principles and complied with the applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules for the six months ended June 30, 2025[50](index=50&type=chunk) [Review of Financial Information](index=21&type=section&id=Review%20of%20Financial%20Information) This section confirms the review of the interim financial information by the audit committee and external auditors - The Audit Committee, in conjunction with the Company's management, discussed and reviewed the unaudited condensed interim financial information for the six months ended June 30, 2025, and recommended it for Board approval[51](index=51&type=chunk) - The Company's auditor, PricewaterhouseCoopers, has reviewed the financial information in accordance with Hong Kong Standard on Review Engagements 2410[51](index=51&type=chunk) [Publication of Interim Results and Interim Report](index=21&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report) This section provides information on where the interim results announcement and report are published - This results announcement has been published on the website of Hong Kong Exchanges and Clearing Limited (http://www.hkexnews.hk) and the Company's website (http://www.winhanverky.com)[52](index=52&type=chunk) - The interim report for the six months ended June 30, 2025, will be dispatched to shareholders and published on the aforementioned websites later[52](index=52&type=chunk) [Board of Directors](index=21&type=section&id=Board%20of%20Directors) This section lists the composition of the company's Board of Directors - The Board of Directors comprises Executive Directors Mr. Li Kwok Tung (Chairman), Mr. Lai Ching Ping, Mr. Li Kwok Leung, and Mr. Wong Chi Keung[53](index=53&type=chunk)[54](index=54&type=chunk) - The Board of Directors comprises Independent Non-executive Directors Mr. Kwan Kai Cheong, Mr. Ma Ka Chun, and Ms. Chan Kit Fan[53](index=53&type=chunk)