（在開曼群島註冊成立之有限公司） （股份代號：2038） 截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月 的 未 經 審 核 中 期 業 績 公 告 董 事 會 謹 此 宣 佈 本 集 團 本 期 間 的 未 經 審 核 綜 合 業 績，連 同 去 年 同 期 的 比 較 數 字 如 下： 簡 明 綜 合 損 益 及 其 他 全 面 收 益 表 截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月 香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 告 之 內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告 全 部 或 任 何 部 分 內 容 而 產 生 或 因 倚 賴 該 等 內 容 而 引 致 之 任 何 損 失 承 擔 任 何 責 任。 | | | | | | | | | | | | | | | | | | | | | | | 六 | | 三 | 十 | 日 | | 六 | | | | 個 | 月 | | | | | | | | | | ...

Company Profile and GEM Characteristics [General Information & Directors' Responsibilities](index=1&type=section&id=General%20Information%20%26%20Directors'%20Responsibilities) This announcement complies with the GEM Listing Rules, providing information on Max Sight Group Holdings Limited and its subsidiaries (the "Group") - This announcement is made in accordance with the GEM Listing Rules of The Stock Exchange of Hong Kong Limited to provide information on Max Sight Group Holdings Limited (the "Company") and its subsidiaries (collectively, the "Group")[2](index=2&type=chunk) - The directors of the Company collectively and individually accept full responsibility for this announcement and confirm that the information is accurate and complete in all material respects, and not misleading or deceptive[2](index=2&type=chunk) [Characteristics of the GEM Market](index=1&type=section&id=Characteristics%20of%20the%20GEM%20Market) The GEM market is positioned for small and mid-sized companies, which are associated with higher investment risks and potential market volatility - GEM is positioned as a market for small and mid-sized companies, which entail a **higher investment risk**[3](index=3&type=chunk) - Securities traded on GEM may experience **greater market volatility**, and a highly liquid market is not guaranteed[3](index=3&type=chunk) Interim Results Summary [Financial Performance Overview](index=2&type=section&id=Financial%20Performance%20Overview) For the six months ended June 30, 2025, the Group's revenue decreased by 24.37% year-on-year, primarily due to a significant decline in the photography services business Key Financial Data for the Six Months Ended June 30, 2025 | Indicator | 2025 (HK$ thousands) | 2024 (HK$ thousands) | Change (%) | | :--- | :--- | :--- | :--- | | **Revenue** | 26,148 | 34,574 | -24.37% | | Revenue from photography services | 14,264 | 23,441 | -39.15% | | Revenue from medical services | 11,884 | 11,133 | +6.75% | | **Gross Profit** | 8,218 | 10,839 | -24.18% | | Gross Profit Margin | 31.43% | 31.35% | +0.08pp | | **Loss attributable to equity holders of the Company** | (1,138) | (199) | +471.86% | | **Interim Dividend** | Not proposed | Nil | - | - The loss attributable to equity holders of the Company was mainly due to the decrease in revenue from the photography services business, resulting from: (i) a slowdown in demand for ID photos for travel document renewals; (ii) intensified price competition from traditional photography service providers; and (iii) the increasing adoption of services from personal document application service stations[4](index=4&type=chunk) Unaudited Condensed Consolidated Financial Statements [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group recorded a loss for the period of HK$751,000, compared to a profit of HK$252,000 in the prior-year period Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (HK$ thousands) | 2024 (HK$ thousands) | | :--- | :--- | :--- | | Revenue | 26,148 | 34,574 | | Cost of services | (17,930) | (23,735) | | Gross profit | 8,218 | 10,839 | | Other income | 35 | 237 | | Other gains/(losses), net | 348 | (149) | | Administrative expenses | (8,753) | (10,188) | | Operating (loss)/profit | (152) | 739 | | Finance costs | (546) | (347) | | (Loss)/profit before tax | (698) | 392 | | Income tax | (53) | (140) | | (Loss)/profit for the period | (751) | 252 | | (Loss)/profit attributable to equity holders of the Company | (1,138) | (199) | | Profit attributable to non-controlling interests | 387 | 451 | | Total comprehensive income for the period | (896) | 434 | | Loss per share (HK cents) — Basic and diluted | (0.14) | (0.02) | [Unaudited Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total net assets decreased to HK$18,467,000, with a notable increase in net current assets driven by higher cash balances Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | June 30, 2025 (HK$ thousands) | December 31, 2024 (HK$ thousands) | | :--- | :--- | :--- | | **Non-current assets** | | | | Property, plant and equipment | 2,883 | 2,138 | | Right-of-use assets | 13,928 | 17,733 | | Total non-current assets | 19,032 | 22,435 | | **Current assets** | | | | Inventories | 1,516 | 1,721 | | Trade receivables | 2,630 | 1,933 | | Cash and bank balances | 21,320 | 15,246 | | Total current assets | 26,778 | 21,203 | | **Current liabilities** | | | | Trade payables | 164 | 316 | | Other payables and accruals | 2,963 | 3,668 | | Total current liabilities | 13,149 | 14,795 | | **Net current assets** | 13,629 | 6,408 | | **Total assets less current liabilities** | 32,661 | 28,843 | | **Non-current liabilities** | | | | Lease liabilities | 8,073 | 9,951 | | Total non-current liabilities | 8,498 | 10,376 | | **Net assets** | 24,163 | 18,467 | | **Total equity** | 24,163 | 18,467 | [Unaudited Condensed Consolidated Statement of Changes in Equity](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, total equity attributable to the Company's equity holders decreased, primarily due to the period's loss and dividend payments Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30) | Indicator | June 30, 2025 (HK$ thousands) | June 30, 2024 (HK$ thousands) | | :--- | :--- | :--- | | **Total equity attributable to equity holders of the Company** | 17,952 | 24,169 | | (Loss)/profit for the period | (1,138) | (199) | | Other comprehensive income | (145) | 182 | | Dividends | (4,800) | (4,500) | | **Non-controlling interests** | 515 | (290) | | **Total equity** | 18,467 | 23,879 | - On June 14, 2024, the credit balance of approximately HK$45,583,000 in the share premium account was fully written off to offset all accumulated losses as of December 31, 2023, with the remainder transferred to the distributable reserve account[10](index=10&type=chunk) [Unaudited Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operating activities decreased, while net cash used in financing activities increased significantly Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Indicator | 2025 (HK$ thousands) | 2024 (HK$ thousands) | | :--- | :--- | :--- | | **Net cash from operating activities** | 4,684 | 6,292 | | **Net cash from investing activities** | 62 | 3,833 | | **Net cash used in financing activities** | (10,675) | (6,064) | | **Net (decrease)/increase in cash and cash equivalents** | (5,929) | 4,061 | | Cash and cash equivalents at end of period | 15,246 | 24,919 | - The increase in net cash used in financing activities was mainly due to payments for the capital portion of leases, lease interest, repayment of amounts due to non-controlling shareholders, and dividends paid to the Company's owners[15](index=15&type=chunk) Notes to the Unaudited Condensed Consolidated Financial Statements [1. General Information](index=10&type=section&id=1.%20General%20Information) Max Sight Group Holdings Limited, incorporated in the Cayman Islands, is listed on the GEM of the Stock Exchange and primarily engages in photography and medical services - The Company was incorporated in the Cayman Islands, and its shares were listed on the GEM of the Stock Exchange on February 28, 2018[16](index=16&type=chunk) - The Group is principally engaged in (i) providing photography services through self-service ID photo booths in Hong Kong and Guangdong Province, China; and (ii) providing medical services through medical centers in Hong Kong[17](index=17&type=chunk) - The unaudited condensed consolidated financial statements are presented in Hong Kong dollars (HK$), which is also the functional currency of the Company[18](index=18&type=chunk) [2. Basis of Preparation](index=10&type=section&id=2.%20Basis%20of%20Preparation) The financial statements are prepared in accordance with HKAS 34 and the applicable disclosure requirements of the GEM Listing Rules, and have been reviewed by the Audit Committee - The unaudited condensed consolidated financial statements have been prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of the Rules Governing the Listing of Securities on GEM of The Stock Exchange of Hong Kong Limited[19](index=19&type=chunk) - The unaudited condensed consolidated financial statements have not been audited by the Company's auditor but have been reviewed by the Company's audit committee[20](index=20&type=chunk) [3. New and Amended Hong Kong Financial Reporting Standards](index=11&type=section&id=3.%20New%20and%20Amended%20Hong%20Kong%20Financial%20Reporting%20Standards) The Group adopted the amendment to HKAS 21 "Lack of Exchangeability" from January 1, 2025, which did not result in any changes to its accounting policies - The Group has adopted the amendment to HKAS 21 "Lack of Exchangeability" for the first time from January 1, 2025[21](index=21&type=chunk) - The adoption of the above amended standard did not result in any changes to the Group's accounting policies or require retrospective adjustments[21](index=21&type=chunk) [4. Revenue and Segment Information](index=11&type=section&id=4.%20Revenue%20and%20Segment%20Information) The Group's revenue, primarily from photography and medical services, declined by 24.37% year-on-year due to a significant drop in photography services [4.1 Revenue](index=11&type=section&id=4.1%20Revenue) The Group's revenue represents the fair value of amounts received and receivable for photography and medical services provided to external customers - The Group's principal activities are (i) providing photography services through self-service ID photo booths in Hong Kong and Guangdong Province, China; and (ii) providing medical services through medical centers in Hong Kong[22](index=22&type=chunk) Disaggregation of Revenue from Contracts with Customers by Major Service Line (For the six months ended June 30) | Service Line | 2025 (HK$ thousands) | 2024 (HK$ thousands) | | :--- | :--- | :--- | | Revenue from photography services | 14,264 | 23,441 | | Revenue from medical services | 11,884 | 11,133 | | **Total** | **26,148** | **34,574** | [4.2 Segment Reporting](index=12&type=section&id=4.2%20Segment%20Reporting) The Group manages its business by service and geography, with three reportable segments: photography services in Hong Kong, photography services in Mainland China, and medical services in Hong Kong - The Group has identified the following three reportable segments: provision of photography services in Hong Kong, provision of photography services in Mainland China, and provision of medical services in Hong Kong[25](index=25&type=chunk)[27](index=27&type=chunk) Segment Results (For the six months ended June 30) | Segment | 2025 (HK$ thousands) | 2024 (HK$ thousands) | | :--- | :--- | :--- | | **Revenue** | | | | Photography services in Hong Kong | 14,255 | 22,887 | | Photography services in Mainland China | 9 | 554 | | Medical services in Hong Kong | 11,884 | 11,133 | | **Total Revenue** | **26,148** | **34,574** | | **Reportable segment profit/(loss)** | | | | Photography services in Hong Kong | 3,964 | 6,908 | | Photography services in Mainland China | (151) | (2) | | Medical services in Hong Kong | 1,282 | 456 | | **Total reportable segment profit** | **5,095** | **7,362** | Geographical Information (For the six months ended June 30) | Region | 2025 Revenue (HK$ thousands) | 2024 Revenue (HK$ thousands) | 2025 Non-current Assets (HK$ thousands) | 2024 Non-current Assets (HK$ thousands) | | :--- | :--- | :--- | :--- | :--- | | Hong Kong | 26,139 | 34,020 | 19,871 | 17,818 | | Mainland China | 9 | 554 | – | – | | **Total** | **26,148** | **34,574** | **19,871** | **17,818** | [5. Finance Costs](index=13&type=section&id=5.%20Finance%20Costs) For the six months ended June 30, 2025, finance costs of HK$546,000 were entirely attributable to interest on lease liabilities Finance Costs (For the six months ended June 30) | Finance Cost Item | 2025 (HK$ thousands) | 2024 (HK$ thousands) | | :--- | :--- | :--- | | Interest on lease liabilities | 546 | 345 | | Interest on bank loans | – | 2 | | **Total** | **546** | **347** | [6. (Loss)/Profit Before Tax](index=14&type=section&id=6.%20(Loss)%2FProfit%20Before%20Tax) The Group recorded a pre-tax loss of HK$698,000 for the six months ended June 30, 2025, a reversal from a profit in the prior-year period (Loss)/Profit Before Tax Composition (For the six months ended June 30) | Item | 2025 (HK$ thousands) | 2024 (HK$ thousands) | | :--- | :--- | :--- | | **Depreciation** | | | | Property, plant and equipment | 745 | 891 | | Right-of-use assets | 4,344 | 4,130 | | **Total staff costs** | 7,137 | 9,135 | | Directors' remuneration | 2,392 | 3,025 | | Other staff costs | 4,531 | 5,795 | | Contributions to defined contribution retirement plans | 214 | 315 | | Short-term lease payments | 22 | 353 | | Variable lease payments | 4,423 | 9,290 | | Cost of inventories | 1,926 | 2,020 | [7. Income Tax](index=14&type=section&id=7.%20Income%20Tax) Income tax expense for the six months ended June 30, 2025, decreased to HK$53,000 from HK$140,000 in the prior-year period Income Tax (For the six months ended June 30) | Item | 2025 (HK$ thousands) | 2024 (HK$ thousands) | | :--- | :--- | :--- | | Current tax - Hong Kong Profits Tax | 176 | 157 | | Deferred tax - Origination and reversal of temporary differences | (123) | (17) | | **Total** | **53** | **140** | - The subsidiaries in Mainland China are subject to a tax rate of 25% for the relevant periods, but no provision for Mainland China income tax was made as the Group incurred tax losses for the six months ended June 30, 2025 and 2024[34](index=34&type=chunk) - The Group has recognized withholding tax provisions for declared dividends and deferred tax liabilities for dividends to be declared in the foreseeable future, with no withholding tax recognized during the relevant periods[35](index=35&type=chunk) [8. Dividends](index=15&type=section&id=8.%20Dividends) The Board does not recommend an interim dividend for the six months ended June 30, 2025, but a special dividend for the year ended December 31, 2024 was paid - On May 22, 2025, the directors approved the declaration and payment of a special dividend of HK$0.006 per ordinary share for the year ended December 31, 2024, totaling HK$4,800,000, which was paid on June 23, 2025[36](index=36&type=chunk) - The directors do not recommend the payment of any interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: Nil)[37](index=37&type=chunk) [9. Loss Per Share](index=15&type=section&id=9.%20Loss%20Per%20Share) For the six months ended June 30, 2025, basic loss per share widened to HK$0.14 cents from HK$0.02 cents in the prior-year period Loss Per Share (For the six months ended June 30) | Indicator | 2025 (HK cents) | 2024 (HK cents) | | :--- | :--- | :--- | | Basic loss per share | (0.14) | (0.02) | - The calculation of basic earnings per share is based on the loss attributable to equity holders of the Company of approximately HK$1,138,000 and HK$199,000 for the six months ended June 30, 2025 and 2024, respectively, and the weighted average number of 800,000,000 ordinary shares in issue[38](index=38&type=chunk) - There were no potential dilutive shares in existence during the six months ended June 30, 2025 and 2024[39](index=39&type=chunk) [10. Property, Plant and Equipment](index=16&type=section&id=10.%20Property%2C%20Plant%20and%20Equipment) During the six months ended June 30, 2025, the Group made no additions to property, plant and equipment, compared to additions of approximately HK$1,378,000 in the prior-year period - During the six months ended June 30, 2025, the Group did not acquire any property, plant and equipment (six months ended June 30, 2024: approximately HK$1,378,000)[40](index=40&type=chunk) - The Group disposed of property, plant and equipment with a carrying amount of nil (six months ended June 30, 2024: Nil)[40](index=40&type=chunk) [11. Right-of-use Assets](index=16&type=section&id=11.%20Right-of-use%20Assets) The Group recognized right-of-use assets and lease liabilities of approximately HK$8,062,000 for the six months ended June 30, 2025, a significant increase from the prior-year period - The Group entered into several lease agreements for the installation of self-service ID photo booths, which include variable lease payment terms[41](index=41&type=chunk) - For the six months ended June 30, 2025, the Group recognized right-of-use assets and lease liabilities of approximately **HK$8,062,000** at the commencement of the leases (six months ended June 30, 2024: approximately HK$1,525,000)[41](index=41&type=chunk) [12. Trade Receivables](index=16&type=section&id=12.%20Trade%20Receivables) The Group's transactions are mainly settled in cash and smart cards, with medical service payments typically cleared within 60 days - The Group's trading terms with its customers are mainly on a cash and smart card basis, except for payments arising from patients' use of medical cards and vouchers, which are generally settled within 60 days by medical network intermediaries and the HKSAR Government[42](index=42&type=chunk) Ageing Analysis of Trade Receivables (As of June 30) | Ageing | June 30, 2025 (HK$ thousands) | December 31, 2024 (HK$ thousands) | | :--- | :--- | :--- | | 0 to 30 days | 848 | 1,829 | | 31 to 60 days | 454 | 510 | | Over 60 days | 631 | 291 | | **Total** | **2,630** | **1,933** | [13. Other Receivables, Deposits and Prepayments](index=17&type=section&id=13.%20Other%20Receivables%2C%20Deposits%20and%20Prepayments) As of June 30, 2025, other receivables, deposits and prepayments increased to HK$4,677,000, primarily driven by higher prepayments Other Receivables, Deposits and Prepayments (As of June 30) | Item | June 30, 2025 (HK$ thousands) | December 31, 2024 (HK$ thousands) | | :--- | :--- | :--- | | Rental and utilities deposits | 3,070 | 2,922 | | Prepayments | 1,266 | 428 | | Other receivables | 341 | 116 | | **Total** | **4,677** | **3,466** | | **Analysed as:** | | | | Current assets | 2,303 | 1,312 | | Non-current assets | 2,374 | 2,154 | [14. Trade Payables](index=17&type=section&id=14.%20Trade%20Payables) As of June 30, 2025, total trade payables decreased to HK$164,000, all of which were aged within 0 to 30 days Ageing Analysis of Trade Payables (As of June 30) | Ageing | June 30, 2025 (HK$ thousands) | December 31, 2024 (HK$ thousands) | | :--- | :--- | :--- | | 0 to 30 days | 164 | 316 | [15. Other Payables and Accruals](index=18&type=section&id=15.%20Other%20Payables%20and%20Accruals) As of June 30, 2025, other payables and accruals decreased to HK$2,963,000, mainly comprising accrued expenses and provisions for salaries and bonuses Other Payables and Accruals (As of June 30) | Item | June 30, 2025 (HK$ thousands) | December 31, 2024 (HK$ thousands) | | :--- | :--- | :--- | | Accrued expenses | 2,437 | 1,933 | | Provision for salaries and bonus | 576 | 635 | | Other lease and license fees payable | 574 | 376 | | Other payables | 81 | 19 | | **Total** | **3,668** | **2,963** | [16. Share Capital](index=18&type=section&id=16.%20Share%20Capital) The Company's authorized share capital is HK$50,000,000, and its issued and fully paid-up share capital is HK$8,000,000, with no changes since its listing date - The Company's authorized share capital is **HK$50,000,000**, divided into 5,000,000,000 ordinary shares of HK$0.01 each[45](index=45&type=chunk) - The issued and fully paid-up ordinary shares amount to 800,000,000, with a share capital of **HK$8,000,000**[45](index=45&type=chunk) - There has been **no change** in the Company's share capital since its listing date[45](index=45&type=chunk) [17. Capital Commitments](index=18&type=section&id=17.%20Capital%20Commitments) As of June 30, 2025, and December 31, 2024, the Group had no outstanding capital commitments that were not provided for in the consolidated financial statements - There were **zero** capital commitments outstanding as at June 30, 2025 and December 31, 2024 that were not provided for in the consolidated financial statements[46](index=46&type=chunk)[47](index=47&type=chunk) [18. Related Party Transactions](index=19&type=section&id=18.%20Related%20Party%20Transactions) During the reporting period, the Group engaged in several transactions with related parties, including purchases, lease payments, and consulting fees Related Party Transactions (For the six months ended June 30) | Transaction Type | 2025 (HK$ thousands) | 2024 (HK$ thousands) | | :--- | :--- | :--- | | Purchase of consumables (subsidiary of ME Group International Plc.) | – | 3 | | Lease payments (company owned by Mr. Chan Tin Kei and Ms. Au Yeung Ying Ho) | 437 | 436 | | Salaries and other benefits (Ms. Au Yeung Ying Ho) | 76 | 88 | | Consultation fees (non-controlling shareholders) | 1,885 | 1,699 | | Consultation fees (company owned by Dr. Chan Wing Lok) | 383 | 376 | Compensation of Directors and Other Key Management Personnel (For the six months ended June 30) | Compensation Type | 2025 (HK$ thousands) | 2024 (HK$ thousands) | | :--- | :--- | :--- | | Short-term benefits | 3,241 | 3,976 | | Post-employment benefits | 54 | 61 | | **Total** | **3,295** | **4,037** | [19. Events After the Reporting Period](index=19&type=section&id=19.%20Events%20After%20the%20Reporting%20Period) The memorandum of understanding between Causeway Treasure and a potential purchaser regarding a possible sale of the Company's shares lapsed on July 4, 2025 - The memorandum of understanding and its supplemental memorandum entered into between Causeway Treasure and a potential purchaser regarding the possible sale of some or all of the Company's shares held by Causeway Treasure lapsed on July 4, 2025[49](index=49&type=chunk) Management Discussion and Analysis [Business Review](index=20&type=section&id=Business%20Review) The Group's photography business faces challenges while its medical services business shows growth, prompting strategic resource reallocation to adapt to market changes [Photography Services Business](index=20&type=section&id=Photography%20Services%20Business) The photography services business faces intensified price competition and challenges from the popularization of electronic ID photo services provided by government service stations - The photography services business faces **increasingly fierce price competition** from traditional photography service providers[51](index=51&type=chunk) - The growing popularity of electronic ID photo services offered at personal document application service stations has also **reduced customers' incentive** to use our self-service ID photo booths[51](index=51&type=chunk) - The Company is reallocating resources to (i) upgrade and maintain self-service ID photo booths; and (ii) enhance media advertising and promotional activities, while exploring business diversification through IT infrastructure upgrades[52](index=52&type=chunk)[53](index=53&type=chunk) [Medical Services Business](index=21&type=section&id=Medical%20Services%20Business) The medical services business continues to develop, benefiting from the Hong Kong Government's Primary Healthcare Blueprint and increased public health awareness - The Group is actively seeking to recruit and identify suitable medical practitioners, equipment, premises, and related business opportunities to further expand its medical services business[54](index=54&type=chunk) - The Hong Kong Government's Primary Healthcare Blueprint and heightened public health awareness post-pandemic are expected to sustain strong demand for medical and related healthcare services in Hong Kong[54](index=54&type=chunk) - The Company is reallocating resources to develop its medical services business by (i) purchasing equipment and upgrading computer hardware and software; and (ii) establishing or acquiring new clinics and related medical businesses[55](index=55&type=chunk) [Future Prospects](index=21&type=section&id=Future%20Prospects) The Group is committed to strengthening its existing core businesses while actively exploring new opportunities to achieve diversified and sustainable growth for its shareholders - The Group is committed to strengthening its existing core businesses and will continue to seize market opportunities[56](index=56&type=chunk) - The Company will continue to explore and identify new business opportunities for future development and expansion, aiming to diversify its business, broaden its revenue streams, and achieve sustainable growth to create value for shareholders[56](index=56&type=chunk) [Financial Review](index=21&type=section&id=Financial%20Review) The Group's financial performance for the six months ended June 30, 2025, reflects an overall revenue decline, primarily driven by challenges in the photography services business [Revenue](index=21&type=section&id=Revenue) The Group's total revenue decreased by 24.37% to HK$26,148,000, driven by a 39.15% decline in photography services revenue, while medical services revenue grew by 6.75% Revenue Comparison (For the six months ended June 30) | Business Type | 2025 (HK$ thousands) | 2024 (HK$ thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Photography services business | 14,264 | 23,441 | -39.15% | | Medical services business | 11,884 | 11,133 | +6.75% | | **Total Revenue** | **26,148** | **34,574** | **-24.37%** | - The decrease in revenue from the photography services business was mainly due to (i) a slowdown in demand for ID photos for travel document renewals; (ii) intensified price competition from traditional photography service providers; and (iii) the increasing adoption of services from personal document application service stations[58](index=58&type=chunk) [Cost of Services](index=22&type=section&id=Cost%20of%20Services) The Group's cost of services decreased by 24.49% to HK$17,930,000, in line with the reduction in revenue from the photography services business Cost of Services Comparison (For the six months ended June 30) | Indicator | 2025 (HK$ thousands) | 2024 (HK$ thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Cost of services | 17,930 | 23,735 | -24.49% | - The decrease in the cost of services was in line with the decrease in revenue generated from the photography services business[59](index=59&type=chunk) [Gross Profit and Gross Profit Margin](index=22&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) The Group's gross profit decreased by 24.18% to HK$8,218,000, while the gross profit margin remained relatively stable at 31.43% Gross Profit and Gross Profit Margin Comparison (For the six months ended June 30) | Indicator | 2025 (HK$ thousands) | 2024 (HK$ thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 8,218 | 10,839 | -24.18% | | Gross Profit Margin | 31.43% | 31.35% | +0.08pp | - The decrease in gross profit was in line with the decrease in revenue generated from the photography services business[60](index=60&type=chunk) [Other Income](index=22&type=section&id=Other%20Income) Other income decreased by 85.23% to HK$35,000, primarily due to a reduction in bank interest income Other Income Comparison (For the six months ended June 30) | Indicator | 2025 (HK$ thousands) | 2024 (HK$ thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Other income | 35 | 237 | -85.23% | - The decrease in other income was mainly due to a decrease in bank interest income[61](index=61&type=chunk) [Other Gains/(Losses), Net](index=22&type=section&id=Other%20Gains%2F(Losses)%2C%20Net) The Group recorded net other gains of HK$348,000, a reversal from a net loss in the prior-year period, mainly due to foreign exchange gains and gains on disposal of assets Other Gains/(Losses), Net Comparison (For the six months ended June 30) | Indicator | 2025 (HK$ thousands) | 2024 (HK$ thousands) | | :--- | :--- | :--- | | Other gains/(losses), net | 348 | (149) | - Other gains/(losses), net primarily represent foreign exchange gains, gains on disposal of property, plant and equipment, and gains on early termination of leases for the six months ended June 30, 2025[62](index=62&type=chunk) [Administrative Expenses](index=22&type=section&id=Administrative%20Expenses) Administrative expenses decreased by 14.08% to HK$8,753,000, mainly due to reduced staff costs and directors' remuneration Administrative Expenses Comparison (For the six months ended June 30) | Indicator | 2025 (HK$ thousands) | 2024 (HK$ thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Administrative expenses | 8,753 | 10,188 | -14.08% | - The decrease in administrative expenses was mainly due to a decrease in staff costs and directors' remuneration[63](index=63&type=chunk) [Finance Costs](index=23&type=section&id=Finance%20Costs) Finance costs increased to HK$546,000, consisting entirely of interest on lease liabilities for the period Finance Costs Comparison (For the six months ended June 30) | Indicator | 2025 (HK$ thousands) | 2024 (HK$ thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Finance costs | 546 | 347 | +57.35% | - Finance costs represent the interest on lease liabilities of approximately HK$546,000 for the six months ended June 30, 2025[64](index=64&type=chunk) [Income Tax](index=23&type=section&id=Income%20Tax) Income tax expense decreased by 62.14% to HK$53,000 for the six months ended June 30, 2025 Income Tax Expense Comparison (For the six months ended June 30) | Indicator | 2025 (HK$ thousands) | 2024 (HK$ thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Income tax expense | 53 | 140 | -62.14% | [Loss Attributable to Equity Holders of the Company](index=23&type=section&id=Loss%20Attributable%20to%20Equity%20Holders%20of%20the%20Company) The loss attributable to equity holders of the Company widened significantly to HK$1,138,000, primarily due to the decline in revenue from the photography services business Loss Attributable to Equity Holders of the Company Comparison (For the six months ended June 30) | Indicator | 2025 (HK$ thousands) | 2024 (HK$ thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Loss attributable to equity holders of the Company | 1,138 | 199 | +471.86% | - The loss attributable to equity holders of the Company was mainly due to the decrease in revenue from the photography services business, influenced by factors including: (i) a slowdown in demand for ID photos for travel document renewals; (ii) intensified price competition from traditional photography service providers; and (iii) the increasing adoption of services from personal document application service stations[66](index=66&type=chunk) [Segment Reporting](index=23&type=section&id=Segment%20Reporting) An analysis of the Group's segment performance is detailed in Note 4 to the unaudited condensed consolidated financial statements - An analysis of the Group's segment performance is set out in Note 4 to the unaudited condensed consolidated financial statements in this announcement[67](index=67&type=chunk) [Share Capital](index=23&type=section&id=Share%20Capital) The Company's authorized share capital is HK$50,000,000, and its issued share capital is HK$8,000,000, with no changes since its listing date - The authorized share capital of the Company is **HK$50,000,000**, divided into 5,000,000,000 shares of HK$0.01 each[68](index=68&type=chunk) - The issued share capital of the Company is **HK$8,000,000**, divided into 800,000,000 shares of HK$0.01 each[68](index=68&type=chunk) - There has been **no change** in the Company's share capital since its listing date[68](index=68&type=chunk) [Employees and Remuneration Policy](index=24&type=section&id=Employees%20and%20Remuneration%20Policy) The Group has established a Remuneration Committee to review the remuneration policies for directors and senior management, and its employee count decreased to 61 as of June 30, 2025 - The Group has established a remuneration committee to review the Group's remuneration policy and structure for all directors and senior management of the Group[69](index=69&type=chunk) Employee Headcount Comparison | Date | Number of Employees | | :--- | :--- | | June 30, 2025 | 61 | | June 30, 2024 | 69 | [Liquidity and Capital Resources](index=24&type=section&id=Liquidity%20and%20Capital%20Resources) The Group maintains a sound financial position, funding its operations primarily through cash flow from operations, with a gearing ratio of 57.68% as of June 30, 2025 - The Group primarily funds its operations with cash flow generated from its operations[70](index=70&type=chunk) Liquidity and Capital Resources Comparison (As of June 30) | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total equity | HK$18,467,000 | HK$23,879,000 | | Total cash and cash equivalents | HK$15,246,000 | HK$24,919,000 | | Current ratio | 1.43 | 1.75 | | Quick ratio | 1.32 | 1.68 | | Gearing ratio | 57.68% | 52.20% | - The Group has established an appropriate liquidity risk management framework and manages its liquidity risk by maintaining adequate financial resources[72](index=72&type=chunk) [Foreign Exchange Risk Management](index=25&type=section&id=Foreign%20Exchange%20Risk%20Management) The Group's currency risk is minimal, primarily arising from US dollar-denominated cash balances held by Hong Kong entities, and it does not currently use a hedging policy - The Group is exposed to currency risk primarily from cash and bank balances denominated in US dollars held by its Hong Kong entities[73](index=73&type=chunk) - As the Hong Kong dollar is pegged to the US dollar, the foreign exchange risk in respect of the US dollar is **insignificant**[73](index=73&type=chunk) - The Group currently **does not have a foreign currency hedging policy** and manages its foreign exchange risk by closely monitoring exchange rate movements[73](index=73&type=chunk) [Material Investments Held and Future Plans for Material Investments and Capital Assets](index=25&type=section&id=Material%20Investments%20Held%20and%20Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) As of June 30, 2025, and June 30, 2024, the Group held no material investments and had no future plans for such investments or capital assets - As at June 30, 2025 and 2024, the Group **did not hold any material investments** and had no future plans for material investments and capital assets[74](index=74&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=25&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) As of June 30, 2025, and June 30, 2024, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures - As at June 30, 2025 and 2024, the Group **did not have any material acquisitions and disposals** of subsidiaries, associates and joint ventures[75](index=75&type=chunk) [Pledge of Assets](index=25&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, and June 30, 2024, the Group had no assets pledged as security for banking facilities - As at June 30, 2025 and 2024, the Group **had no assets pledged** as security for banking facilities[76](index=76&type=chunk) [Contingent Liabilities](index=25&type=section&id=Contingent%20Liabilities) As of June 30, 2025, and June 30, 2024, the Group had no significant contingent liabilities - As at June 30, 2025 and 2024, the Group **did not have any significant contingent liabilities**[77](index=77&type=chunk) [Events After the Reporting Period](index=25&type=section&id=Events%20After%20the%20Reporting%20Period) Information regarding events after the reporting period is set out in Note 19 to the unaudited condensed consolidated financial statements - Relevant information is set out in Note 19 to the unaudited condensed consolidated financial statements in this announcement[78](index=78&type=chunk) [Dividends](index=25&type=section&id=Dividends) Information regarding dividends is set out in Note 8 to the unaudited condensed consolidated financial statements - Relevant information is set out in Note 8 to the unaudited condensed consolidated financial statements in this announcement[79](index=79&type=chunk) Corporate Governance and Other Information [Corporate Governance](index=26&type=section&id=Corporate%20Governance) The Company is committed to maintaining high standards of corporate governance and has complied with all applicable code provisions of the Corporate Governance Code - The Company is committed to maintaining a high standard of corporate governance to safeguard the interests of shareholders and enhance corporate value and accountability[80](index=80&type=chunk) - The Company has adopted the Corporate Governance Code contained in Appendix C1 to the GEM Listing Rules as its own code of corporate governance[80](index=80&type=chunk) - During the six months ended June 30, 2025, the Company has **complied with all applicable code provisions** of the Corporate Governance Code[80](index=80&type=chunk) [Compliance with the Required Standard of Dealings for Securities Transactions by Directors](index=26&type=section&id=Compliance%20with%20the%20Required%20Standard%20of%20Dealings%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted the required standard of dealings set out in the GEM Listing Rules, and all directors have confirmed their compliance for the period - The Company has adopted the required standard of dealings set out in Rules 5.48 to 5.67 of the GEM Listing Rules as its code of conduct for securities transactions by its directors[81](index=81&type=chunk) - Each director has confirmed their compliance with the required standard of dealings during the six months ended June 30, 2025[81](index=81&type=chunk) [Changes in Directors' Information](index=26&type=section&id=Changes%20in%20Directors'%20Information) The directors have confirmed that there are no changes to their information that require disclosure under Rule 17.50A(1) of the GEM Listing Rules - The directors have confirmed that there is **no information required to be disclosed** pursuant to Rule 17.50A(1) of the GEM Listing Rules[82](index=82&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=26&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) During the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the six months ended June 30, 2025, neither the Company nor any of its subsidiaries had purchased, sold or redeemed any of the Company's listed securities (including treasury shares)[83](index=83&type=chunk) [Interim Dividend](index=26&type=section&id=Interim%20Dividend) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: Nil)[84](index=84&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures](index=26&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures) As of June 30, 2025, Mr Chan Wing Chi and Mr Chan Tin Chi held a 53.45% long position in the Company's shares through the controlled corporation Causeway Treasure [1. Interests/Short Positions in the Shares of the Company](index=27&type=section&id=1.%20Interests%2FShort%20Positions%20in%20the%20Shares%20of%20the%20Company) As of June 30, 2025, Mr Chan Wing Chi and Mr Chan Tin Chi each held a long position of 427,600,560 shares in the Company through a controlled corporation Directors'/Chief Executive's Interests/Short Positions in the Shares of the Company (As of June 30) | Name | Capacity/Nature of interest | Number of shares | Long/Short position | Approximate percentage of total issued shares | | :--- | :--- | :--- | :--- | :--- | | Mr Chan Wing Chi | Interest in a controlled corporation | 427,600,560 | Long | 53.45% | | Mr Chan Tin Chi | Interest in a controlled corporation | 427,600,560 | Long | 53.45% | - The disclosed interest refers to the interest held by Causeway Treasure in the Company, which is owned approximately 47.25% by Mr Chan Wing Chi, 47.25% by Mr Chan Tin Chi, and 5.5% by Ms Au Yeung Ying Ho[86](index=86&type=chunk) [2. Interests/Short Positions in the Shares or Debentures of Associated Corporations of the Company](index=27&type=section&id=2.%20Interests%2FShort%20Positions%20in%20the%20Shares%20or%20Debentures%20of%20Associated%20Corporations%20of%20the%20Company) As of June 30, 2025, Mr Chan Wing Chi and Mr Chan Tin Chi each beneficially owned approximately 47.25% of the associated corporation Causeway Treasure Directors' Interests/Short Positions in the Shares or Debentures of Associated Corporations of the Company (As of June 30) | Name of Director | Name of associated corporation | Capacity/Nature of interest | Number of shares | Long/Short position | Approximate percentage of shareholding in the relevant shares of the associated corporation | | :--- | :--- | :--- | :--- | :--- | :--- | | Mr Chan Wing Chi | Causeway Treasure | Beneficial owner | 427,600,560 | Long | 47.25% | | Mr Chan Tin Chi | Causeway Treasure | Beneficial owner | 427,600,560 | Long | 47.25% | - The disclosed interest refers to the interest in Causeway Treasure, an associated corporation, which is owned approximately 47.25% by Mr Chan Wing Chi, 47.25% by Mr Chan Tin Chi, and the remaining 5.5% by Ms Au Yeung Ying Ho[88](index=88&type=chunk) [Substantial Shareholders' Interests and Short Positions in the Shares, Underlying Shares and Debentures of the Company](index=28&type=section&id=Substantial%20Shareholders'%20Interests%20and%20Short%20Positions%20in%20the%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company) As of June 30, 2025, substantial shareholders included Causeway Treasure (53.45%), Ms Au Yeung Ying Ho (53.45% via controlled corporation), ME Group International Plc (13.75%), and Mr Cheung Kam Ting (7.80%) Substantial Shareholders' Interests and Short Positions in the Shares of the Company (As of June 30) | Name | Capacity/Nature of interest | Number of shares | Long/Short position | Approximate percentage of shareholding in the Company | | :--- | :--- | :--- | :--- | :--- | | Causeway Treasure | Beneficial owner | 427,600,560 | Long | 53.45% | | Ms Au Yeung Ying Ho | Interest in a controlled corporation | 427,600,560 | Long | 53.45% | | ME Group International Plc. | Beneficial owner | 109,972,500 | Long | 13.75% | | Mr Cheung Kam Ting | Beneficial owner | 62,426,940 | Long | 7.80% | - Ms Au Yeung Ying Ho, Mr Chan Wing Chi, and Mr Chan Tin Chi have entered into a confirmation deed, affirming their past and future intention to act in concert to consolidate their control over the Group[90](index=90&type=chunk) [Share Scheme](index=29&type=section&id=Share%20Scheme) The Company's share option scheme was adopted in 2018, and no options were granted, lapsed, exercised, or cancelled during the six months ended June 30, 2025 - The Company's share option scheme was adopted by shareholders pursuant to a written resolution on February 8, 2018[92](index=92&type=chunk) - The maximum number of shares that may be granted under the share option scheme as of January 1 and June 30, 2025, shall not exceed 80,000,000 shares, representing 10% of the shares in issue on the listing date[92](index=92&type=chunk) - During the six months ended June 30, 2025, **no share options** of the Company were granted, lapsed, exercised, or cancelled under the share option scheme, and there were no outstanding share options as of June 30, 2025, and the date of this announcement[92](index=92&type=chunk) [Interests of Directors, Controlling Shareholders and Substantial Shareholders in Competing Business](index=29&type=section&id=Interests%20of%20Directors%2C%20Controlling%20Shareholders%20and%20Substantial%20Shareholders%20in%20Competing%20Business) Non-executive Director Mr Riccardo Costi is deemed to have an interest in a competing business due to his associate's interest in Dedem S.P.A., which operates in a similar industry in Europe - An associate of Mr Riccardo Costi, a non-executive Director, has an interest in Dedem S.P.A. and its subsidiaries, which are principally engaged in the operation of self-service ID photo booths in Europe[94](index=94&type=chunk) - Mr Riccardo Costi is considered to have an interest in a business that competes or is likely to compete, either directly or indirectly, with the business of the Group[94](index=94&type=chunk) - The Board comprises eight directors, including three independent non-executive directors who are members of the Audit Committee, ensuring that the interests of shareholders are adequately safeguarded[95](index=95&type=chunk) [Audit Committee and Review of Accounts](index=30&type=section&id=Audit%20Committee%20and%20Review%20of%20Accounts) The Audit Committee has reviewed the Group's unaudited interim results and report, confirming compliance with applicable accounting standards and regulatory requirements - The Company has established an audit committee in compliance with Rules 5.28, 5.29 and 5.33 of the GEM Listing Rules and the Corporate Governance Code[97](index=97&type=chunk) - The Audit Committee reviews the Group's financial information, its relationship with the external auditor, and its financial reporting, risk management, and internal control systems[97](index=97&type=chunk) - The Audit Committee considers that the Group's unaudited consolidated results for the six months ended June 30, 2025, comply with applicable accounting standards, the GEM Listing Rules, and legal requirements, and that adequate disclosures have been made[97](index=97&type=chunk) [Use of Proceeds from the Share Offer of the Company](index=30&type=section&id=Use%20of%20Proceeds%20from%20the%20Share%20Offer%20of%20the%20Company) As of June 30, 2025, approximately HK$20,868,000 of the net proceeds from the 2018 share offer has been utilized, with unutilized funds reallocated due to market changes Use of Net Proceeds from the Share Offer (As of June 30) | Use | Actual amount utilised (HK$ thousands) | Unutilised net proceeds as at 30 June 2025 (HK$ thousands) | Adjusted use of net proceeds as stated in the Announcements (HK$ thousands) | | :--- | :--- | :--- | :--- | | Expansion of self-service ID photo booth network — Guangdong Province | 6,652 | – | 6,652 | | Expansion of self-service ID photo booth network — Hong Kong | 282 | – | 282 | | Business development of self-service ID photo booth business in Hong Kong | 904 | 5,196 | 6,100 | | Purchase of equipment for development of medical and related services | 137 | 4,463 | 4,600 | | Establishment or acquisition of new clinics, medical and related businesses | 987 | 1,013 | 2,000 | | Upgrading of validation centre and information technology infrastructure | 1,688 | 312 | 2,000 | | General working capital | 10,218 | – | 10,218 | | **Total** | **20,868** | **10,984** | **31,852** | - The planned expansion of the self-service ID photo booth network in Guangdong Province has been delayed and become increasingly challenging, mainly due to the popularization of online official document application systems and facial recognition systems in Mainland China[99](index=99&type=chunk) - The unutilized net proceeds have been reallocated to (i) business development of the self-service ID photo booth business in Hong Kong; (ii) purchase of equipment for medical and related services; (iii) establishment or acquisition of new clinics and related businesses; and (iv) general working capital[101](index=101&type=chunk) [Language](index=32&type=section&id=Language) In case of any discrepancy between the English and Chinese versions of this announcement, the English version shall prevail - In the event of any inconsistency between the English version and the Chinese translation of this announcement, the English version of this announcement shall prevail[103](index=103&type=chunk) [By Order of the Board](index=32&type=section&id=By%20Order%20of%20the%20Board) This announcement is issued by Mr Chan Wing Chi, Chairman and Executive Director of Max Sight Group Holdings Limited, on August 8, 2025 - This announcement is issued by Mr Chan Wing Chi, Chairman and Executive Director of Max Sight Group Holdings Limited, on August 8, 2025[104](index=104&type=chunk) - As at the date of this announcement, the executive Directors are Mr Chan Wing Chi, Mr Chan Tin Chi and Dr Chan Wing Lok; the non-executive Directors are Mr Riccardo Costi and Ms Wong Sin Yue; and the independent non-executive Directors are Mr Ng Ngar Kok, Mr Hui Chi Kwan and Mr Kwok Chun Wah[104](index=104&type=chunk)

[Announcement Information](index=1&type=section&id=%E5%85%AC%E5%91%8A%E4%BF%A1%E6%81%AF) This section highlights the characteristics of the GEM market, emphasizing its higher investment risks for small and medium-sized companies, and clarifies the responsibilities of the Company's directors regarding the announcement's accuracy [Characteristics of GEM and Disclaimer](index=1&type=section&id=GEM%E4%B9%8B%E7%89%B9%E8%89%B2) This section outlines the GEM market's high-risk nature for SMEs and clarifies that the Company's directors bear full responsibility for the announcement's accuracy - The GEM market is positioned for small and medium-sized companies, with **higher investment risks and market volatility**[2](index=2&type=chunk) - Hong Kong Exchanges and Clearing Limited and the Stock Exchange are not responsible for the content of this announcement and disclaim any liability for losses[2](index=2&type=chunk) - The Company's directors assume full responsibility for the accuracy, completeness, and non-misleading nature of the announcement content[2](index=2&type=chunk) [Financial Highlights](index=2&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) This section provides a concise overview of the Group's key financial performance indicators for the reporting period, including revenue and loss attributable to owners [Interim Results for the Six Months Ended June 30, 2025](index=2&type=section&id=%E6%88%AA%E8%87%B3%E4%BA%8C%E9%9B%B6%E4%BA%94%E4%BA%94%E5%B9%B4%E5%85%AD%E6%9C%88%E4%B8%89%E5%8D%81%E6%97%A5%E6%AD%A2%E5%85%AD%E5%80%8B%E6%9C%88%E4%B9%8B%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE) The Group's revenue decreased by **8.3%** to **HK$18.9 million**, while loss attributable to owners significantly narrowed to **HK$0.2 million**, with no dividend recommended Key Financial Indicators for H1 2025 | Indicator | H1 2025 (HK$'000) | H1 2024 (HK$'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 18,900 | 20,600 | -8.3% | | Loss Attributable to Owners of the Parent | (200) | (1,200) | -83.3% | | Loss from Online Backup Software and Related Services Segment | (2,100) | (2,400) | -12.5% | | Loss/(Profit) from Information Platform Segment | (100) | 100 | -200.0% | | Basic and Diluted Loss Per Share (HK cents) | (0.01) | (0.06) | -83.3% | - The Board does not recommend the payment of any dividend for the six months ended June 30, 2025[5](index=5&type=chunk) [Condensed Consolidated Financial Statements](index=3&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the Group's condensed consolidated financial statements, including the statement of profit or loss, financial position, and changes in equity [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) Revenue was **HK$18.9 million**, with loss for the period significantly narrowing to **HK$0.181 million**, and exchange differences positively impacting comprehensive income Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Summary) | Indicator | H1 2025 (HK$'000) | H1 2024 (HK$'000) | | :--- | :--- | :--- | | Revenue | 18,900 | 20,590 | | Other income | 859 | 1,224 | | Other gains (losses), net | 1,262 | (193) | | Staff costs and related expenses | (14,621) | (15,183) | | Other expenses | (6,303) | (7,437) | | Finance costs | (185) | (60) | | Loss before tax | (120) | (1,196) | | Income tax expense | (61) | (20) | | Loss for the period | (181) | (1,216) | | Exchange differences arising from translation of overseas operations | 458 | (634) | | Total comprehensive income (loss) for the period | 277 | (1,850) | | Loss per share attributable to ordinary equity holders of the parent (HK cents) | (0.01) | (0.06) | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) Total assets were **HK$74.559 million**, with net current assets at **HK$44.264 million**, and net assets increasing to **HK$55.212 million** Condensed Consolidated Statement of Financial Position (Summary) | Indicator | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Total non-current assets | 15,338 | 16,561 | | Total current assets | 59,261 | 59,584 | | Total current liabilities | 14,997 | 15,626 | | Net current assets | 44,264 | 43,958 | | Total assets less current liabilities | 59,602 | 60,519 | | Total non-current liabilities | 4,390 | 5,584 | | Net assets | 55,212 | 54,935 | | Total equity | 55,212 | 54,935 | [Condensed Consolidated Statement of Changes in Equity](index=5&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) Total equity attributable to owners increased to **HK$55.212 million**, driven by **HK$277 thousand** in comprehensive income, including exchange gains Condensed Consolidated Statement of Changes in Equity (Summary) | Item | June 30, 2025 (HK$'000) | June 30, 2024 (HK$'000) | | :--- | :--- | :--- | | At beginning of period (audited) | 54,935 | 57,924 | | Loss for the period | (181) | (1,216) | | Exchange differences arising from translation of overseas operations | 458 | (634) | | Total comprehensive income (loss) for the period | 277 | (1,850) | | At end of period (unaudited) | 55,212 | 56,074 | [Notes to the Condensed Consolidated Financial Statements](index=6&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section provides detailed explanatory notes supporting the condensed consolidated financial statements, covering accounting policies, segment information, and specific financial line items [Capital and Other Reserves](index=6&type=section&id=%E9%99%84%E8%A8%BBi.%20%E8%B3%87%E6%9C%AC%E5%8F%8A%E5%85%B6%E4%BB%96%E5%84%B2%E5%82%99) This note details the composition of capital and other reserves, including acquisition differences, share capital differences, and controlling shareholder contributions - Capital and other reserves include differences arising from the acquisition of equity interests in CloudBacko BVI and Ahsay Services Centre Limited[9](index=9&type=chunk) - Includes differences in share capital of Alpha Heritage Holdings Limited, a wholly-owned subsidiary of the Company[9](index=9&type=chunk) - Includes contributions from controlling shareholders upon waiver of amounts due to shareholders and disposal of subsidiaries[9](index=9&type=chunk) [General Information](index=7&type=section&id=1.%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) The Company, an investment holding entity incorporated in the Cayman Islands and listed on GEM, primarily provides online backup software solutions with HKD as its functional currency - The Company is an investment holding company, primarily providing online backup software solutions through its subsidiaries[11](index=11&type=chunk) - The Company is incorporated in the Cayman Islands, and its shares are listed on GEM of The Stock Exchange of Hong Kong Limited[10](index=10&type=chunk) - The functional currency of the Company is Hong Kong Dollars[12](index=12&type=chunk) [Basis of Preparation](index=7&type=section&id=2.1%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) Interim financial information is prepared under HKAS 34 and GEM Listing Rules Chapter 18, to be read with the annual consolidated financial statements - The interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 and Chapter 18 of the GEM Listing Rules[13](index=13&type=chunk) - It should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2024[13](index=13&type=chunk) [Changes in Accounting Policies and Disclosures](index=7&type=section&id=2.2%20%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E5%8F%8A%E6%8A%AB%E9%9C%B2%E8%AE%8A%E5%8B%95) Accounting policies align with annual statements, with the initial adoption of revised HKAS 21 (Lack of Exchangeability) having no impact due to exchangeable currencies - Accounting policies are consistent with the annual consolidated financial statements, with the initial adoption of the revised Hong Kong Accounting Standard 21 (Lack of Exchangeability)[14](index=14&type=chunk)[15](index=15&type=chunk) - As all currencies transacted by the Group are exchangeable, this revision has no impact on the interim financial information[16](index=16&type=chunk) [Revenue and Segment Information](index=8&type=section&id=3.%20%E6%94%B6%E7%9B%8A%E5%8F%8A%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group operates two segments, online backup and information platform, generating **HK$18.9 million** in total revenue, with both segments recording losses - The Group has two reportable operating segments: online backup software and related services segment, and information platform segment[18](index=18&type=chunk) Segment Revenue and Results (Summary) | Segment | H1 2025 Revenue (HK$'000) | H1 2024 Revenue (HK$'000) | H1 2025 Segment Loss/(Profit) (HK$'000) | H1 2024 Segment Loss/(Profit) (HK$'000) | | :--- | :--- | :--- | :--- | :--- | | Online Backup Software and Related Services | 16,238 | 17,901 | (2,138) | (2,369) | | Information Platform | 2,662 | 2,689 | (103) | 142 | | **Total** | **18,900** | **20,590** | **(2,241)** | **(2,227)** | - All assets are allocated to operating segments, except for bank balances and cash; all liabilities are allocated to operating segments[23](index=23&type=chunk) [Other Income and Other Gains (Losses), Net](index=10&type=section&id=4.%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%EF%BC%88%E虧%E6%90%8D%EF%BC%89%E6%B7%A8%E9%A1%8D) Other income decreased to **HK$859 thousand** due to lower bank interest, while other gains, net, significantly improved to **HK$1,262 thousand** from a prior-year loss Other Income | Item | H1 2025 (HK$'000) | H1 2024 (HK$'000) | | :--- | :--- | :--- | | Bank interest income | 776 | 1,091 | | Rental income | 46 | 57 | | Miscellaneous income | 37 | 66 | | **Total** | **859** | **1,224** | Other Gains (Losses), Net | Item | H1 2025 (HK$'000) | H1 2024 (HK$'000) | | :--- | :--- | :--- | | Net exchange differences | 1,311 | (193) | | Fair value loss on investment property | (49) | — | | **Total** | **1,262** | **(193)** | [Staff Costs and Related Expenses](index=11&type=section&id=5.%20%E5%83%B1%E5%93%A1%E6%88%90%E6%9C%AC%E5%8F%8A%E7%9B%B8%E9%97%9C%E9%96%8B%E6%94%AF) Staff costs and related expenses decreased by **3.7%** to **HK$14.621 million**, with **HK$4.859 million** allocated to R&D Staff Costs and Related Expenses | Item | H1 2025 (HK$'000) | H1 2024 (HK$'000) | | :--- | :--- | :--- | | Directors' emoluments | 2,899 | 2,904 | | Other staff costs | 11,684 | 11,980 | | Staff related expenses | 38 | 299 | | **Total** | **14,621** | **15,183** | | R&D costs included in staff costs and related expenses | 4,859 | 5,449 | [Other Expenses](index=12&type=section&id=6.%20%E5%85%B6%E4%BB%96%E9%96%8B%E6%94%AF) Other expenses decreased by **15.2%** to **HK$6.303 million**, driven by reductions in advertising, content acquisition, and depreciation Other Expenses | Item | H1 2025 (HK$'000) | H1 2024 (HK$'000) | | :--- | :--- | :--- | | Auditor's remuneration | 430 | 430 | | Advertising and marketing expenses | 97 | 820 | | Content acquisition costs | 484 | 640 | | Depreciation of property, plant and equipment | 484 | 590 | | Depreciation of right-of-use assets | 1,149 | 1,154 | | Legal and professional fees | 712 | 742 | | Commercial credit card fees | 674 | 653 | | Web hosting expenses | 408 | 364 | | **Total** | **6,303** | **7,437** | [Finance Costs](index=12&type=section&id=7.%20%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) Finance costs significantly increased to **HK$185 thousand**, primarily due to higher interest expense on lease liabilities Finance Costs | Item | H1 2025 (HK$'000) | H1 2024 (HK$'000) | | :--- | :--- | :--- | | Interest expense on lease liabilities | 185 | 60 | | **Total** | **185** | **60** | [Income Tax Expense](index=13&type=section&id=8.%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense was **HK$61 thousand**, primarily Hong Kong profits tax and deferred tax, with the Group exempt from tax in the Cayman Islands and BVI Income Tax Expense | Item | H1 2025 (HK$'000) | H1 2024 (HK$'000) | | :--- | :--- | :--- | | Current tax: Hong Kong profits tax | 48 | 64 | | Deferred tax | 13 | (44) | | **Total** | **61** | **20** | - The Group is not subject to any income tax in the Cayman Islands and British Virgin Islands[28](index=28&type=chunk) - Hong Kong profits tax is calculated under a two-tiered tax system, with the first **HK$2 million** taxed at **8.25%** and the remainder at **16.5%**[28](index=28&type=chunk) [Dividends](index=13&type=section&id=9.%20%E8%82%A1%E6%81%AF) The Company neither paid nor proposed any dividends to ordinary shareholders for the reporting periods - The Company neither paid nor proposed any dividends during the reporting period[29](index=29&type=chunk) [Loss Per Share Attributable to Ordinary Equity Holders of the Parent](index=14&type=section&id=10.%20%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%99%AE%E9%80%9A%E8%82%A1%E6%AC%8A%E6%8C%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%B5%E6%AF%8F%E8%82%A1%E虧%E6%90%8D) Basic and diluted loss per share significantly narrowed to **HK$0.01**, based on **2,000,000 thousand** weighted average ordinary shares with no dilutive potential Loss Per Share Calculation | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Loss attributable to ordinary equity holders of the parent (HK$'000) | (181) | (1,216) | | Weighted average number of ordinary shares (thousands) | 2,000,000 | 2,000,000 | | Basic and diluted loss per share (HK cents) | (0.01) | (0.06) | - The Company had no outstanding ordinary shares with potential dilutive effect during the reporting period[31](index=31&type=chunk) [Trade and Other Receivables](index=15&type=section&id=11.%20%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) Trade and other receivables decreased to **HK$4.272 million**, with trade receivables generally aged within **30 days** and software leases having a **14-30 day** credit period Trade and Other Receivables | Item | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Trade receivables — aged within 30 days | 1,148 | 1,697 | | Lease and utilities deposits | 115 | 163 | | Prepayments for operating expenses and other receivables | 3,009 | 2,818 | | **Total** | **4,272** | **4,678** | - The Group generally sells through the internet, and payments are usually required before the delivery of software usage rights, subscriptions, and provision of services[32](index=32&type=chunk) - For software usage right leases where customers are charged monthly license fees on a pay-as-you-go basis, the credit period is **14 to 30 days**[32](index=32&type=chunk) [Other Payables and Accrued Charges](index=15&type=section&id=12.%20%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%87%89%E8%A8%88%E8%B2%BB%E7%94%A8) Other payables are non-interest bearing and have an aging of less than one year from the invoice date - Other payables are non-interest bearing and aged less than one year[33](index=33&type=chunk) [Management Discussion and Analysis](index=16&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) This section provides management's perspective on the Group's financial performance, operational results, and key factors influencing the business during the reporting period [Overview](index=16&type=section&id=%E6%A6%82%E8%A7%80) Revenue decreased by **8.3%** to **HK$18.9 million**, while loss attributable to owners narrowed to **HK$0.2 million**, driven by exchange gains and cost reductions H1 2025 Financial Overview | Indicator | H1 2025 (HK$ million) | H1 2024 (HK$ million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 18.9 | 20.6 | -8.3% | | Loss Attributable to Owners of the Parent | 0.2 | 1.2 | -83.3% | - The reduction in loss was primarily due to increased exchange gains from appreciating foreign currency bank balances, reduced marketing and advertising expenses, and lower staff costs[34](index=34&type=chunk) - The reduction in loss was partially offset by decreased revenue from the online backup business due to global economic weakness and subdued demand[34](index=34&type=chunk) [Revenue Analysis](index=16&type=section&id=%E6%94%B6%E7%9B%8A) Revenue decreased by **8.3%** to **HK$18.9 million**, primarily from software sales and services, due to global economic weakness and market competition - Revenue primarily derived from software license sales and leases, software upgrade and maintenance services, subscription fees, and other services[35](index=35&type=chunk) - The decrease in revenue was mainly due to global economic weakness, intense competition in the online backup software market, and changing consumer patterns in Hong Kong[35](index=35&type=chunk) [Other Income Analysis](index=16&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) Other income decreased by **25%** to **HK$0.9 million**, primarily due to lower bank interest income from reduced fixed deposit rates Changes in Other Income | Indicator | H1 2025 (HK$ million) | H1 2024 (HK$ million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Other Income | 0.9 | 1.2 | -25% | - The decrease in other income was mainly due to lower average interest rates on fixed deposits, resulting in reduced bank interest income[36](index=36&type=chunk) [Other Gains, Net Analysis](index=17&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E6%B7%A8%E9%A1%8D) Other gains, net, significantly improved by **HK$1.5 million** to a gain of **HK$1.3 million**, primarily driven by increased exchange gains from foreign currency balances Changes in Other Gains, Net | Indicator | H1 2025 (HK$ million) | H1 2024 (HK$ million) | YoY Change (HK$ million) | | :--- | :--- | :--- | :--- | | Other Gains, Net | 1.3 | (0.2) | +1.5 | - The increase in other gains was mainly due to increased exchange gains arising from the appreciation of foreign currency bank balances[37](index=37&type=chunk) [Staff Costs and Related Expenses Analysis](index=17&type=section&id=%E5%83%B1%E5%93%A1%E6%88%90%E6%9C%AC%E5%8F%8A%E7%9B%B8%E9%97%9C%E9%96%8B%E6%94%AF) Staff costs and related expenses decreased by **3.9%** to **HK$14.6 million**, primarily due to a reduction in the average number of employees Changes in Staff Costs and Related Expenses | Indicator | H1 2025 (HK$ million) | H1 2024 (HK$ million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Staff Costs and Related Expenses | 14.6 | 15.2 | -3.9% | - The decrease in staff costs was mainly due to a reduction in the average number of employees compared to the same period last year[38](index=38&type=chunk) [Other Expenses Analysis](index=17&type=section&id=%E5%85%B6%E4%BB%96%E9%96%8B%E6%94%AF) Other expenses decreased by **14.9%** to **HK$6.3 million**, mainly due to optimized marketing strategies and reduced content acquisition costs Changes in Other Expenses | Indicator | H1 2025 (HK$ million) | H1 2024 (HK$ million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Other Expenses | 6.3 | 7.4 | -14.9% | - The decrease in other expenses was mainly due to reduced advertising and marketing expenses from optimized market strategies and lower content acquisition costs[39](index=39&type=chunk) [Loss for the Period Analysis](index=17&type=section&id=%E6%9C%9F%E5%85%A7%E虧%E6%90%8D) The Group's loss for the period significantly narrowed to **HK$0.2 million**, comprising losses from both online backup and information platform segments, plus net unallocated items Loss for the Period and Segment Contribution | Item | H1 2025 (HK$ million) | | :--- | :--- | | Loss for the period | 0.2 | | Loss from Online Backup Software and Related Services Segment | 2.1 | | Loss from Information Platform Segment | 0.1 | | Net unallocated income and expenses | 2.2 | [Financial Position and Resources](index=18&type=section&id=%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E5%8F%8A%E8%B3%87%E6%BA%90) This section reviews the Group's financial health, liquidity, and capital structure, including asset pledges and commitments [Financial Position, Liquidity and Financial Resources](index=18&type=section&id=%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E3%80%81%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) The Group maintains a prudent cash management policy with **HK$59.3 million** in current assets and a net cash position, ensuring ample financial resources - The Group adopts a prudent cash and financial management policy, with cash primarily denominated in USD and AUD and held in licensed banks in Singapore[41](index=41&type=chunk) Current Assets | Indicator | June 30, 2025 (HK$ million) | December 31, 2024 (HK$ million) | | :--- | :--- | :--- | | Current Assets | 59.3 | 59.6 | - The Group maintains a net cash position, and management believes its financial resources are ample[41](index=41&type=chunk) [Pledge of the Group's Assets](index=18&type=section&id=%E6%9C%AC%E9%9B%86%E5%9C%98%E4%B9%8B%E8%B3%87%E7%94%A2%E8%B3%AA%E6%8A%BC) As of June 30, 2025, the Group had no assets pledged - As of June 30, 2025, the Group had no assets pledged[42](index=42&type=chunk) [Capital Structure](index=18&type=section&id=%E8%B3%87%E6%9C%AC%E7%B5%90%E6%A7%8B) The Company's capital structure consists solely of ordinary shares, with **HK$20.0 million** in issued share capital comprising **2,000,000,000** shares - The Company's capital structure comprises only ordinary shares[43](index=43&type=chunk) Capital Structure | Indicator | June 30, 2025 | | :--- | :--- | | Issued share capital | 20.0 HK$ million | | Number of issued shares | 2,000,000,000 shares | | Par value per share | 0.01 HK$ | [Capital Commitments and Contingent Liabilities](index=18&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94%E5%8F%8A%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no significant capital commitments or contingent liabilities - As of June 30, 2025, the Group had no significant capital commitments or contingent liabilities[44](index=44&type=chunk) [Business Review and Prospects](index=18&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7%E8%88%87%E5%89%8D%E6%99%AF) This section provides an overview of the Group's business performance during the period and outlines future strategies and outlook for its core operations [Segment Information](index=18&type=section&id=%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group's business segment performance analysis is detailed in Note 3 of this interim results announcement - The Group's performance analysis by business segment is presented in Note 3[45](index=45&type=chunk) [Material Acquisitions and Disposals](index=18&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E4%BA%8B%E9%A0%85) The Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period - There were no material acquisitions or disposals during the reporting period[46](index=46&type=chunk) [Business Review](index=19&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) Global economic weakness led to an **8.3%** total revenue decrease to **HK$18.9 million**, prompting cost-saving measures and software upgrades to enhance operational resilience - Global economic weakness, inflationary pressures, and geopolitical uncertainties continued to affect business and consumption[47](index=47&type=chunk) Changes in Segment Revenue | Segment | H1 2025 (HK$ million) | H1 2024 (HK$ million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Online Backup Software and Related Services | 16.2 | 17.9 | -9.5% | | Information Platform | 2.66 | 2.69 | -1.1% | | **Total Revenue** | **18.9** | **20.6** | **-8.3%** | - The Group implemented comprehensive cost-saving measures and continued to introduce upgraded features to enhance user experience[48](index=48&type=chunk) [Prospects](index=20&type=section&id=%E5%89%8D%E6%99%AF) The Group will enhance its core backup business with new features and pricing adjustments, while its information platform, KINBOY, will leverage AI for improved horse racing predictions and multimedia content - Ahsay will continue to strategically focus on strengthening its core backup software business in continuously evolving markets[49](index=49&type=chunk) - The information platform KINBOY will leverage its AI engine to analyze large datasets, generate race predictions, and improve tip accuracy[52](index=52&type=chunk) [Core Backup Business](index=20&type=section&id=%E6%A0%B8%E5%BF%83%E5%82%99%E4%BB%BD%E6%A5%AD%E5%8B%99) The core backup business will launch version 10.1 with "Immutable Backup" and "Restore Drill" features, expanding platform support and adjusting pricing to promote AMBaaS - The recent launch of version 10.1 introduces "Immutable Backup" functionality, protecting backup data from tampering, deletion, or ransomware attacks[49](index=49&type=chunk) - The "Restore Drill" feature regularly verifies the recoverability of backup data, assisting clients in complying with regulatory and disaster recovery standards[49](index=49&type=chunk) - The business model adjusts pricing structures and bundling options, shifting from bulk licenses to flexible subscription plans, and increasing interest in Ahsay Managed Backup as a Service (AMBaaS)[50](index=50&type=chunk) [Information Platform](index=21&type=section&id=%E4%BF%A1%E6%81%AF%E5%B9%B3%E5%8F%B0) The information platform, primarily KINBOY, offers AI-powered horse racing predictions and multimedia content to enhance user engagement, with KINTIPS contributing less revenue - KINBOY is an all-in-one online platform for horse racing information, offering both free and paid membership services[52](index=52&type=chunk) - The "AI Tips" feature utilizes extensive local and international datasets to analyze variables such as horse past performance, jockey statistics, track conditions, and betting patterns, generating race predictions[52](index=52&type=chunk) - KINBOY incorporates multimedia features such as tip videos and interactive content, providing an immersive experience[52](index=52&type=chunk) [Corporate Governance and Other Information](index=22&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) This section covers corporate governance practices, including directors' and major shareholders' interests, compliance with codes, employee policies, and audit committee activities [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures](index=22&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E4%B8%BB%E8%A6%81%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E6%96%BC%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E5%8F%8A%E5%82%B5%E5%88%B8%E4%B8%AD%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) Controlling shareholders were deemed to hold interests in **1,500,000,000** shares, representing **75.0%** of issued shares, with no other significant interests or short positions reported by directors Directors' Long Positions in Shares | Name of Director | Capacity/Nature of Interest | Number of Shares | Approximate Percentage of Total Shares | | :--- | :--- | :--- | :--- | | Mr. Chuang King Fan | Interest of spouse | 1,500,000,000 | 75.0% | | Mr. Chuang Siu Pui | Interest in controlled corporation | 1,500,000,000 | 75.0% | | Mr. Chuang Siu Ling | Interest in controlled corporation | 1,500,000,000 | 75.0% | - All Divine Investments Limited holds **1,500,000,000** long position shares, representing **75%** of the issued shares[54](index=54&type=chunk) - All Divine is wholly owned by Able Future Investments Limited, which is owned by Ms. Chuang Lee Sau Fong, Mr. Chuang Siu Pui, and Mr. Chuang Siu Ling with **40%**, **30%**, and **30%** equity interests respectively[54](index=54&type=chunk) [Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares, Underlying Shares and Debentures](index=23&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E5%8F%8A%E5%85%B6%E4%BB%96%E4%BA%BA%E5%A3%AB%E6%96%BC%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E5%8F%8A%E5%82%B5%E5%88%B8%E4%B8%AD%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) Several substantial shareholders and other persons were deemed to hold interests in **1,500,000,000** shares, representing **75.0%** of the issued shares Substantial Shareholders' Long Positions in Shares | Name of Shareholder/Person | Capacity/Nature of Interest | Number of Shares | Approximate Percentage of Total Shares | | :--- | :--- | :--- | :--- | | All Divine | Beneficial owner | 1,500,000,000 | 75.0% | | Able Future | Interest in controlled corporation | 1,500,000,000 | 75.0% | | Ms. Chuang Lee Sau Fong | Interest in controlled corporation | 1,500,000,000 | 75.0% | | Ms. Ng Shui Fong | Interest of spouse | 1,500,000,000 | 75.0% | | Ms. Lee Yin Heung | Interest of spouse | 1,500,000,000 | 75.0% | - Ms. Ng Shui Fong, spouse of Mr. Chuang Siu Pui, and Ms. Lee Yin Heung, spouse of Mr. Chuang Siu Ling, are deemed to have interests under the Securities and Futures Ordinance[57](index=57&type=chunk) [Directors' Rights to Acquire Shares or Debentures](index=24&type=section&id=%E8%91%A3%E4%BA%8B%E6%94%B6%E8%B3%BC%E8%82%A1%E4%BB%BD%E6%88%96%E5%82%B5%E5%88%B8%E4%B9%8B%E6%AC%8A%E5%88%A9) No directors, chief executives, or their close associates held or exercised any rights to acquire Company shares or related shares during the reporting period - During the reporting period, no directors, chief executives, or their close associates held or exercised any rights to subscribe for shares or related shares in the Company and/or its associated corporations[58](index=58&type=chunk) [Directors' and Controlling Shareholders' Interests in Competing Businesses](index=24&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E6%8E%A7%E8%82%A1%E8%82%A1%E6%9D%B1%E6%96%BC%E7%AB%B6%E7%88%AD%E6%A5%AD%E5%8B%99%E4%B9%8B%E6%AC%8A%E7%9B%8A) Directors were unaware of any competing businesses or interests held by directors, controlling shareholders, or their close associates during the reporting period - Directors were unaware of any business or interest of the directors, controlling shareholders, and their close associates that competes or may compete with the Group's business[59](index=59&type=chunk) [Compliance with the Code of Conduct for Directors' Securities Transactions](index=24&type=section&id=%E9%81%B5%E5%AE%88%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E8%A1%8C%E7%82%BA%E5%AE%88%E5%89%87) The Group adopted a stringent code of conduct for directors' securities transactions, which all directors confirmed compliance with during the reporting period - The Group has adopted a stringent code of conduct for directors' securities transactions, and each director confirmed compliance[60](index=60&type=chunk) [Compliance with the Corporate Governance Code](index=24&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The Company maintained high corporate governance standards, complying with all code provisions of the GEM Listing Rules' Corporate Governance Code during the reporting period - The Company has complied with all code provisions of the Corporate Governance Code set out in Appendix 15 of the GEM Listing Rules throughout the reporting period[61](index=61&type=chunk) [Share Option Scheme](index=24&type=section&id=%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) The Company adopted a share option scheme on September 4, 2015, but no options have been granted since its adoption - The Company adopted a share option scheme on September 4, 2015, but no share options have been granted since its adoption[62](index=62&type=chunk) [Employees and Remuneration Policy](index=25&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) The Group had **56** employees with total directors' and staff costs of **HK$14.6 million**, implementing a remuneration policy based on performance and providing training without significant labor disputes Employees and Remuneration | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Number of employees | 56 | 70 | | Total directors' and staff costs (HK$ million) | 14.6 | 15.2 | - Remuneration is determined with reference to the duties, responsibilities, experience, performance, and capabilities of individual employees and directors[63](index=63&type=chunk) - The Group provides various training to its employees and experienced no strikes, work stoppages, or significant labor disputes affecting operations during the reporting period[64](index=64&type=chunk) [Purchase, Redemption or Sale of the Company's Listed Securities](index=25&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E8%B4%96%E5%9B%9E%E6%88%96%E5%87%BA%E5%94%AE%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) Neither the Company nor its subsidiaries purchased, redeemed, or sold any of the Company's listed securities during the reporting period - During the reporting period, neither the Company nor its subsidiaries purchased, redeemed, or sold any of the Company's listed securities[65](index=65&type=chunk) [Audit Committee](index=26&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, comprising independent non-executive directors, reviewed and confirmed the interim financial information's compliance with accounting standards and regulations - The Audit Committee's terms of reference comply with the GEM Listing Rules and the Corporate Governance Code[66](index=66&type=chunk) - The Audit Committee members are Mr. Poon Chung Sang (Chairman), Mr. Kwok Chi Wah, and Ms. Wong Pui Man, all of whom are independent non-executive directors[66](index=66&type=chunk) - The Audit Committee has reviewed this interim financial information and is satisfied that it complies with applicable accounting standards and regulations[66](index=66&type=chunk) [Board Approval](index=26&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E6%89%B9%E5%87%86) This section confirms the Board's approval of the interim results announcement and lists the Board members as of the announcement date [By Order of the Board](index=26&type=section&id=%E6%89%BF%E8%91%A3%E4%BA%8B%E6%9C%83%E5%91%BD) This announcement was issued by Mr. Chuang Siu Ling, Chairman and Executive Director, on August 8, 2025, listing the Board members as of that date - This announcement was issued by Mr. Chuang Siu Ling, Chairman and Executive Director, on August 8, 2025[67](index=67&type=chunk)[68](index=68&type=chunk) - The Board members include Executive Directors Mr. Chuang Siu Ling, Mr. Chuang Siu Pui, and Mr. Chuang King Fan; Non-executive Director Ms. Chuang Siu Fun; and Independent Non-executive Directors Mr. Kwok Chi Wah, Mr. Poon Chung Sang, and Ms. Wong Pui Man[68](index=68&type=chunk)

[Performance Summary](index=1&type=section&id=Performance%20Summary) Lifeng China Group faced challenges in the first half of 2025, with revenue decreasing by 4.2% year-on-year to RMB 617.8 million, turning from profit to loss with a net loss attributable to owners of the Company of RMB 3.7 million, resulting in a loss per share of RMB 0.003 and no interim dividend declared [Core Financial Indicators](index=1&type=section&id=Core%20Financial%20Indicators) The core financial indicators for H1 2025 show a 4.2% revenue decline to RMB 617.8 million, a shift from profit to a net loss of RMB 3.7 million, and a loss per share of RMB 0.003, leading to no interim dividend declaration 2025 H1 Core Financial Indicators | Indicator | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | RMB 617.8 million | RMB 644.6 million | | (Loss)/Profit attributable to owners of the Company | RMB (3.7) million | RMB 41.7 million | | (Loss)/Earnings per share | RMB (0.003) | RMB 0.028 | | Interim Dividend | Not declared | N/A | [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) The company's consolidated financial statements reflect a decline in revenue and gross profit, leading to a net loss attributable to owners of the Company [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's revenue was RMB 618 million, a 4.2% year-on-year decrease, with gross profit falling 9.5% from RMB 362 million to RMB 328 million, resulting in a loss attributable to owners of the Company of RMB 3.7 million compared to a profit of RMB 41.7 million in the prior period Key Items from Consolidated Statement of Profit or Loss (For the six months ended June 30) | Item (RMB thousand) | 2025 (Unaudited) | 2024 (Unaudited) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 617,766 | 644,603 | -4.2% | | Gross Profit | 327,785 | 362,066 | -9.5% | | Profit before tax | 117,031 | 164,227 | -28.7% | | Profit for the period | 72,076 | 130,916 | -45.0% | | (Loss)/Profit attributable to owners of the Company | (3,730) | 41,668 | Turned from profit to loss | | (Loss)/Earnings per share (RMB) | (0.003) | 0.028 | Turned from profit to loss | [Consolidated Statement of Financial Position](index=3&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As at June 30, 2025, the company's total assets were approximately RMB 16.81 billion, total liabilities approximately RMB 5.67 billion, and equity attributable to owners of the Company was RMB 9.37 billion, with net current assets increasing from RMB 1.59 billion to RMB 1.75 billion Key Items from Consolidated Statement of Financial Position (RMB thousand) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Non-current assets | 14,099,695 | 14,250,475 | | Current assets | 2,707,555 | 2,743,460 | | Net current assets | 1,750,352 | 1,587,680 | | Non-current liabilities | 4,708,335 | 4,768,478 | | Equity attributable to owners of the Company | 9,374,711 | 9,378,482 | [Notes to Financial Information](index=5&type=section&id=Notes%20to%20Financial%20Information) Detailed notes provide insights into the company's revenue composition, finance costs, earnings per share, and dividend policy [Revenue and Segment Information](index=6&type=section&id=3.%20Revenue%20and%20Segment%20Information) Total revenue decreased to RMB 618 million, primarily due to a 7.9% decline in revenue from concessionaire sales and an 8.0% decrease in rental income, while direct sales remained largely stable Revenue Composition (For the six months ended June 30) | Revenue Source (RMB thousand) | 2025 | 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Sales of goods - direct sales | 262,183 | 262,424 | -0.1% | | Revenue from concessionaire sales | 186,699 | 202,619 | -7.9% | | Service income | 20,198 | 17,949 | +12.5% | | Rental income | 148,686 | 161,611 | -8.0% | | **Total Revenue** | **617,766** | **644,603** | **-4.2%** | - The Group's operating business is classified under a single operating segment, focusing on operating department stores, retail and related businesses, and property investment in China, with all non-current assets located in China[10](index=10&type=chunk) [Finance Costs](index=7&type=section&id=5.%20Finance%20Costs) Total finance costs decreased by 12.0% year-on-year to RMB 82.2 million, mainly due to a 19.4% reduction in interest expense on bank borrowings following a decrease in the Loan Prime Rate Finance Costs Details (For the six months ended June 30) | Item (RMB thousand) | 2025 | 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Interest on bank borrowings | 48,581 | 60,302 | -19.4% | | Interest on lease liabilities | 33,659 | 33,203 | +1.4% | | **Total** | **82,240** | **93,505** | **-12.0%** | [(Loss)/Earnings Per Share](index=8&type=section&id=9.%20(Loss)Earnings%20Per%20Share) Due to the turn from profit to loss attributable to owners of the Company, basic and diluted loss per share was RMB 0.003, compared to earnings per share of RMB 0.028 in the prior period, with the weighted average number of ordinary shares remaining unchanged (Loss)/Earnings Per Share Calculation | Item | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | (Loss)/Profit attributable to owners of the Company (RMB thousand) | (3,730) | 41,668 | | Weighted average number of ordinary shares (thousand shares) | 1,464,449 | 1,464,449 | | **Basic and Diluted (Loss)/Earnings Per Share (RMB)** | **(0.003)** | **0.028** | [Dividends](index=8&type=section&id=8.%20Dividends) The Board resolved not to declare an interim dividend for the six months ended June 30, 2025, consistent with the policy in the prior period - The Company did not pay or declare any dividends for the six months ended June 30, 2025 (2024: nil)[15](index=15&type=chunk) [Management Discussion and Analysis](index=11&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of market conditions, financial performance, business operations, and future strategies [Market Overview](index=11&type=section&id=Market%20Overview) In the first half of 2025, China's economy maintained robust growth of 5.3% amidst global slowdowns, with social consumer retail sales increasing by approximately 5%, prompting the Group to optimize product structure, integrate online-offline channels, and enhance its membership system - China's economy demonstrated resilience, with GDP growing approximately **5.3%** year-on-year in the first half of 2025, and total retail sales of consumer goods increasing by approximately **5%** year-on-year[19](index=19&type=chunk) - Consumer demand is becoming more diversified and segmented, with greater emphasis on quality, brand influence, and environmental sustainability; the Group is responding by adjusting product structure, strengthening omnichannel experience, promoting green consumption, and accelerating digital transformation[20](index=20&type=chunk) [Financial Review](index=11&type=section&id=Financial%20Review) Revenue and gross profit decreased by 4.2% and 9.5% respectively, leading to a loss attributable to shareholders, primarily due to reduced concessionaire sales and rental income, coupled with a 15.7% decline in profit from associates, while adjusted EBITDA decreased by 11.0% - Revenue decreased by **4.2%** to **RMB 617.8 million**, mainly due to a decline in revenue from concessionaire sales and rental income; total sales proceeds from all stores slightly decreased by **0.4%**[22](index=22&type=chunk) - Loss attributable to shareholders was **RMB 3.7 million** (compared to a profit of RMB 41.7 million in the prior period), primarily due to a decrease in sales and gross profit, as well as a **15.7%** year-on-year decrease in profit from associate Beijing Renmin Group[24](index=24&type=chunk) Adjusted EBITDA (For the six months ended June 30) | Item (RMB thousand) | 2025 | 2024 | | :--- | :--- | :--- | | Profit before tax | 117,031 | 164,227 | | **Adjusted EBITDA** | **175,380** | **197,060** | [Business Review](index=15&type=section&id=Business%20Review) The performance of the Group's key stores varied, with Shanghai Jiuguang Centre and Shanghai Jiuguang showing growth, while Suzhou Jiuguang experienced a significant decline, and profit from associate Beijing Renmin Group decreased [Shanghai Jiuguang Centre](index=15&type=section&id=Shanghai%20Jiuguang%20Centre) Shanghai Jiuguang Centre's total sales proceeds increased by 8.6% to RMB 911 million, but revenue decreased by 2.0% due to higher discount rates and some rental reductions, while office leasing progressed with occupancy rates of 65% (East Tower) and 21% (West Tower) Shanghai Jiuguang Centre H1 Operating Data | Indicator | H1 2025 | YoY Change | | :--- | :--- | :--- | | Total sales proceeds | RMB 911.2 million | +8.6% | | Revenue | RMB 160.7 million | -2.0% | | Average daily footfall | Approx. 33,500 persons | -1.3% | | Average transaction value | RMB 175 | -3.3% | | Stay-to-purchase ratio | 85.9% | +10.6 percentage points | [Shanghai Jiuguang](index=16&type=section&id=Shanghai%20Jiuguang) Shanghai Jiuguang successfully navigated market challenges by adjusting its operating strategy and merchant mix, leading to a 1.0% increase in total sales proceeds to RMB 1.30 billion despite a 9.0% decrease in average daily footfall, driven by a significant 20.9% rise in average transaction value Shanghai Jiuguang H1 Operating Data | Indicator | H1 2025 | YoY Change | | :--- | :--- | :--- | | Total sales proceeds | RMB 1,300.3 million | +1.0% | | Average daily footfall | 42,600 persons | -9.0% | | Average transaction value | RMB 458 | +20.9% | | Stay-to-purchase ratio | 36.8% | -3.3 percentage points | [Suzhou Jiuguang](index=17&type=section&id=Suzhou%20Jiuguang) Suzhou Jiuguang's performance was weak during the period, with total sales proceeds decreasing by 13.5% to RMB 534 million, despite a 12.3% increase in average daily footfall, primarily due to a significant 15.5 percentage point drop in the stay-to-purchase ratio Suzhou Jiuguang H1 Operating Data | Indicator | H1 2025 | YoY Change | | :--- | :--- | :--- | | Total sales proceeds | RMB 533.7 million | -13.5% | | Average daily footfall | Approx. 16,100 persons | +12.3% | | Average transaction value | RMB 542 | +12.3% | | Stay-to-purchase ratio | 33.7% | -15.5 percentage points | [Investment in Associates](index=17&type=section&id=Investment%20in%20Associates) The Group's share of net profit from associate Beijing Renmin Group decreased by 15.7% year-on-year to RMB 81.0 million, despite a 3.9% increase in Beijing Renmin Group's sales revenue, due to a significant reduction in bank interest income and increased depreciation and interest expenses - Share of net profit from associate Beijing Renmin Group decreased by **15.7%** year-on-year to **RMB 81.0 million**[46](index=46&type=chunk) [Outlook and Plans](index=18&type=section&id=Outlook%20and%20Plans) The Group plans to leverage the Jiuguang brand, advance digital and intelligent transformation using AI for personalized marketing and operational efficiency, and actively respond to green consumption trends to maintain high-quality development - Leverage the Jiuguang brand advantage, promote digital transformation, and utilize data-driven and AI technologies to deepen personalized marketing and enhance customer experience[48](index=48&type=chunk) - Actively respond to green consumption concepts, create "waste-free shopping malls," and continuously optimize merchant and product portfolios by introducing environmentally friendly and unique brands[49](index=49&type=chunk)[50](index=50&type=chunk) - Improve the membership program, use AI technology to analyze member preferences, provide personalized recommendations, and leverage social media platforms to enhance brand exposure[51](index=51&type=chunk)[52](index=52&type=chunk) - Continue to advance the leasing efforts for Shanghai Jiuguang Centre's office buildings to increase rental income and stabilize cash flow[54](index=54&type=chunk) [Other Disclosure Information](index=20&type=section&id=Other%20Disclosure%20Information) This section covers details regarding the company's employees, interim dividend policy, and corporate governance practices [Employees](index=20&type=section&id=Employees) As at June 30, 2025, the Group employed 1,056 staff, a decrease from the prior year, with staff costs decreasing by 7.5% year-on-year to RMB 98.7 million primarily due to a one-off severance payment in the prior period Employees and Costs | Indicator | As at June 30, 2025 | For the six months ended June 30, 2025 | | :--- | :--- | :--- | | Total number of employees | 1,056 persons | N/A | | Staff costs (excluding directors' emoluments) | N/A | RMB 98.7 million | [Interim Dividend](index=20&type=section&id=Interim%20Dividend) The Board resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: nil)[56](index=56&type=chunk) [Corporate Governance](index=20&type=section&id=Corporate%20Governance) The company complied with the Corporate Governance Code during the period, with the only deviation being the undifferentiated roles of Chairman and Chief Executive Officer, which the company believes benefits business strategy execution and operational efficiency - The Company complied with the Corporate Governance Code, with the only deviation being that the roles of Chairman and Chief Executive Officer are not segregated, which the Company believes is beneficial for the development and execution of business strategies[57](index=57&type=chunk)

[Company Information](index=4&type=section&id=Company%20Information) This section provides an overview of the company's registration, listing, core businesses, and board composition [Company Overview and Board Composition](index=4&type=section&id=Company%20Overview%20and%20Board%20Composition) Grand Power Holdings Limited (Stock Code: 8282) is an investment holding company listed on GEM, primarily engaged in software services, internet security, big data analysis in China, and game development, operation, distribution, and trade agency services in Hong Kong and other regions - The company was incorporated in the Cayman Islands on April 14, 2010, and its shares have been listed on GEM of the Hong Kong Stock Exchange since January 13, 2016. Its principal business is investment holding, and through its subsidiaries, it provides software services, internet security technology services, and big data analysis services in China, engages in the development, operation, distribution, and publishing of online and mobile games in Hong Kong and other regions, and provides trade agency services[16](index=16&type=chunk)[17](index=17&type=chunk) - The Board of Directors comprises Executive Directors **Dr. Liu Yi** (Chairman and Chief Executive Officer) and **Mr. Wong Kin Wing**, and Independent Non-executive Directors **Ms. Lok Mei Kwan**, **Mr. Kam Pak Ting**, and **Mr. Luk Yik**[3](index=3&type=chunk)[8](index=8&type=chunk) - The company's registered office is in the Cayman Islands, its headquarters and principal place of business are in Hangzhou, Zhejiang Province, China, and its principal place of business in Hong Kong is in Wan Chai[8](index=8&type=chunk)[16](index=16&type=chunk) [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement presents the company's financial performance, including revenue, cost of services, gross profit, and net profit for the period [Profit or Loss Performance Overview](index=6&type=section&id=Profit%20or%20Loss%20Performance%20Overview) For the six months ended June 30, 2025, revenue significantly increased by 91.8% to HK$38,444 thousand, driven by software services, with profit for the period rising to HK$1,290 thousand, though gross margin narrowed For the Six Months Ended June 30, 2025, Consolidated Statement of Profit or Loss Key Data | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 38,444 | 20,046 | +91.8% | | Cost of services provided | (30,225) | (12,499) | +141.8% | | Gross profit | 8,219 | 7,547 | +8.9% | | Operating profit | 1,290 | 142 | +808.5% | | Profit for the period | 1,290 | 142 | +808.5% | | Profit attributable to owners of the company | 1,350 | 342 | +294.7% | | Basic and diluted earnings per share (HK cents) | 3.39 | 0.41 | +726.8% | - Revenue growth was primarily attributable to an increase of approximately **HK$22.0 million** in software services revenue[45](index=45&type=chunk) - Gross margin decreased from **37.6%** in the prior year period to **21.4%** in the current period, mainly due to a decrease in the gross margin of the software services business[47](index=47&type=chunk) [Unaudited Condensed Consolidated Statement of Financial Position](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement provides a snapshot of the company's assets, liabilities, and equity at a specific point in time, highlighting changes in financial health [Financial Position Overview](index=7&type=section&id=Financial%20Position%20Overview) As of June 30, 2025, total assets less current liabilities increased to HK$25,691 thousand, with net assets reaching HK$25,555 thousand, driven by higher cash and reduced trade receivables As of June 30, 2025, Consolidated Statement of Financial Position Key Data | Metric | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (HK$ thousand) | | :--- | :--- | :--- | :--- | | Non-current assets | 12,451 | 12,030 | +421 | | Current assets | 17,896 | 15,418 | +2,478 | | Current liabilities | 4,656 | 4,310 | +346 | | Net current assets | 13,240 | 11,108 | +2,132 | | Total assets less current liabilities | 25,691 | 23,138 | +2,553 | | Net assets | 25,555 | 22,877 | +2,678 | | Equity attributable to owners of the company | 26,400 | 23,662 | +2,738 | - Cash and cash equivalents increased from **HK$5,888 thousand** as of December 31, 2024, to **HK$8,904 thousand** as of June 30, 2025[12](index=12&type=chunk) - Trade receivables significantly decreased from **HK$3,384 thousand** as of December 31, 2024, to **HK$735 thousand** as of June 30, 2025[12](index=12&type=chunk) [Unaudited Condensed Consolidated Statement of Changes in Equity](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement details the changes in the company's equity components over the period, including profit for the period and foreign currency translation differences [Analysis of Changes in Equity](index=8&type=section&id=Analysis%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, total equity increased to HK$25,555 thousand, primarily due to profit for the period and foreign exchange differences from overseas operations For the Six Months Ended June 30, 2025, Changes in Equity | Metric | June 30, 2025 (HK$ thousand) | January 1, 2025 (HK$ thousand) | Change (HK$ thousand) | | :--- | :--- | :--- | :--- | | Share capital | 3,800 | 3,800 | 0 | | Share premium | 73,825 | 73,825 | 0 | | Other reserves | 71,458 | 71,458 | 0 | | Translation reserve | 16 | (1,372) | +1,388 | | Accumulated losses | (122,699) | (124,049) | +1,350 | | Subtotal of equity attributable to owners of the company | 26,400 | 23,662 | +2,738 | | Non-controlling interests | (845) | (785) | -60 | | Total equity | 25,555 | 22,877 | +2,678 | - Profit for the period was **HK$1,290 thousand**, of which **HK$1,350 thousand** was attributable to owners of the company[13](index=13&type=chunk) - Foreign exchange differences arising from the translation of financial statements of overseas operations generated **HK$1,388 thousand**, positively impacting total comprehensive income[13](index=13&type=chunk) [Unaudited Condensed Consolidated Statement of Cash Flows](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This statement summarizes the cash inflows and outflows from operating, investing, and financing activities, reflecting the company's liquidity and solvency [Cash Flow Overview](index=9&type=section&id=Cash%20Flow%20Overview) For the six months ended June 30, 2025, net cash generated from operating activities was HK$2,973 thousand, a significant improvement from a net outflow in the prior year, with period-end cash increasing to HK$8,904 thousand For the Six Months Ended June 30, 2025, Consolidated Statement of Cash Flows Key Data | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | | :--- | :--- | :--- | :--- | | Net cash generated from (used in) operating activities | 2,973 | (6,744) | +9,717 | | Net cash used in investing activities | – | (6,214) | +6,214 | | Net cash generated from financing activities | – | 12,273 | -12,273 | | Net increase (decrease) in cash and cash equivalents | 2,973 | (685) | +3,658 | | Cash and cash equivalents at end of period | 8,904 | 4,002 | +4,902 | - In the first half of 2025, there were no cash flows from investing and financing activities, compared to a net outflow of **HK$6,214 thousand** from investing activities and a net inflow of **HK$12,273 thousand** from financing activities in the prior year period[15](index=15&type=chunk) - Exchange rate changes had a positive impact of **HK$43 thousand** on cash and cash equivalents, compared to a negative impact of **HK$57 thousand** in the prior year period[15](index=15&type=chunk) [Notes to the Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed explanations and additional information supporting the figures presented in the primary financial statements, enhancing transparency and understanding [Company Information (Notes)](index=10&type=section&id=Company%20Information%20(Notes)) Grand Power Holdings Limited, incorporated in Cayman Islands in 2010 and listed on GEM in 2016, is an investment holding company with subsidiaries providing software services, internet security, big data analysis in China, and game development, operation, distribution, and trade agency services in Hong Kong and other regions, with Topliu Limited as its ultimate parent company - The company was incorporated in the Cayman Islands on April 14, 2010, and its shares have been listed on GEM of the Hong Kong Stock Exchange since January 13, 2016[16](index=16&type=chunk)[17](index=17&type=chunk) - Principal businesses include providing software services, internet security technology services, and big data-related analysis services to customers in China; engaging in the development, operation, distribution, and publishing of online and mobile games in Hong Kong and other countries and regions; and acting as an intermediary between buyers and suppliers, earning commissions[17](index=17&type=chunk) - The company's parent company and ultimate parent company is **Topliu Limited**, incorporated in the British Virgin Islands[18](index=18&type=chunk) [Basis of Preparation and Presentation](index=10&type=section&id=Basis%20of%20Preparation%20and%20Presentation) These unaudited condensed consolidated interim financial statements are prepared in accordance with HKFRSs and GEM Listing Rules, using consistent accounting policies with the 2024 annual report, and have been reviewed by the audit committee - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants, as well as the disclosure requirements of the GEM Listing Rules and the Hong Kong Companies Ordinance[19](index=19&type=chunk) - The accounting policies and methods of computation used are consistent with those in the 2024 annual report, and the adoption of new and revised Hong Kong Financial Reporting Standards had no significant impact on the financial statements for the current period[19](index=19&type=chunk)[22](index=22&type=chunk) - These unaudited condensed consolidated interim financial statements have not been audited by the auditor but have been reviewed by the Audit Committee[21](index=21&type=chunk) [Changes in Hong Kong Financial Reporting Standards](index=11&type=section&id=Changes%20in%20Hong%20Kong%20Financial%20Reporting%20Standards) During the reporting period, the Group first applied certain new and revised HKFRSs, including HKAS 21 (Amendment) "Lack of Exchangeability," which had no significant impact on the Group's financial position or performance - The Group first applied new and revised Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants that are mandatorily effective for annual periods beginning on or after January 1, 2025, including **HKAS 21 (Amendment) "Lack of Exchangeability"**[22](index=22&type=chunk) - The application of these new standards and amendments had no significant impact on the Group's financial position and performance and/or disclosures for the current and prior periods[22](index=22&type=chunk) [Segment Information (Notes)](index=12&type=section&id=Segment%20Information%20(Notes)) The company operates in three reportable segments: software services, game business, and trade agency services, with software services becoming the primary revenue source and China contributing the majority of revenue - The Group identifies three operating segments: **software services business** (internet security technology and big data analysis in China), **game business** (online and mobile game development, operation, distribution, and publishing in Hong Kong and other countries), and **trade agency services** (intermediary commission services between buyers and suppliers)[24](index=24&type=chunk) For the Six Months Ended June 30, 2025, Segment Revenue and Operating Profit | Segment | 2025 Revenue (HK$ thousand) | 2024 Revenue (HK$ thousand) | Revenue YoY Change (%) | 2025 Operating Profit (HK$ thousand) | 2024 Operating Profit (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | | Software services business | 33,078 | 11,097 | +198.17% | 507 | 764 | | Game business | 2,491 | 8,949 | -72.17% | 70 | (622) | | Trade agency services | 2,875 | – | N/A | 713 | – | | **Total** | **38,444** | **20,046** | **+91.78%** | **1,290** | **142** | - By country/region, revenue from China was **HK$35,569 thousand** (2024: HK$11,097 thousand), and revenue from Hong Kong and other regions was **HK$2,875 thousand** (2024: HK$8,949 thousand)[27](index=27&type=chunk) - For the six months ended June 30, 2025, **two customers** (Customer A and Customer B) individually contributed over **10%** of the Group's total revenue, with Customer B contributing **HK$18,665 thousand**[28](index=28&type=chunk) [Revenue and Other Income (Notes)](index=14&type=section&id=Revenue%20and%20Other%20Income%20(Notes)) For the six months ended June 30, 2025, total revenue was HK$38,444 thousand, primarily from software services revenue (HK$33,078 thousand), with game services revenue and trade agency services revenue at HK$2,491 thousand and HK$2,875 thousand respectively. Other income totaled HK$6 thousand, a significant decrease from the prior year, mainly due to reduced government grants and other income For the Six Months Ended June 30, 2025, Revenue and Other Income Analysis | Income Category | 2025 (HK$ thousand) | 2024 (HK$ thousand) | YoY Change (HK$ thousand) | | :--- | :--- | :--- | :--- | | Software services revenue | 33,078 | 11,097 | +21,981 | | Game services revenue | 2,491 | 8,949 | -6,458 | | Trade agency services revenue | 2,875 | – | +2,875 | | **Total Revenue** | **38,444** | **20,046** | **+18,398** | | Government grants | – | 57 | -57 | | Interest income | 4 | 14 | -10 | | Other income | 2 | 104 | -102 | | **Total Other Income** | **6** | **175** | **-169** | - Software services revenue increased by **198.17%** year-on-year, while game services revenue decreased by **72.17%** year-on-year[29](index=29&type=chunk) - There was **no government grant income** in the first half of 2025, compared to **HK$57 thousand** in the prior year period[29](index=29&type=chunk) [Profit Before Income Tax (Notes)](index=15&type=section&id=Profit%20Before%20Income%20Tax%20(Notes)) For the six months ended June 30, 2025, profit before income tax was HK$1,290 thousand. Amortization of intangible assets, patent fees, and staff costs all decreased from the prior year period, while depreciation of property, plant, and equipment slightly increased For the Six Months Ended June 30, 2025, Key Expense Details | Expense Category | 2025 (HK$ thousand) | 2024 (HK$ thousand) | YoY Change (HK$ thousand) | | :--- | :--- | :--- | :--- | | Amortization of intangible assets | 396 | 905 | -509 | | Patent fees | – | 3,154 | -3,154 | | Depreciation of property, plant and equipment | 140 | 79 | +61 | | Depreciation of right-of-use assets | 128 | 292 | -164 | | Staff costs (excluding directors' emoluments) | 771 | 853 | -82 | - There were **no patent fees** in the first half of 2025, compared to **HK$3,154 thousand** in the prior year period[30](index=30&type=chunk) - Staff costs (excluding directors' emoluments) decreased from **HK$853 thousand** to **HK$771 thousand**[30](index=30&type=chunk) [Income Tax Expense (Notes)](index=15&type=section&id=Income%20Tax%20Expense%20(Notes)) For the six months ended June 30, 2025, the Group did not generate any assessable profits in China or Hong Kong, thus no income tax provision was made - No provision for China corporate income tax was made as the Group's China companies did not generate any assessable profits in China for the six months ended June 30, 2025[31](index=31&type=chunk) - No provision for Hong Kong income tax was made as the Group did not generate any assessable profits in Hong Kong for the six months ended June 30, 2025[31](index=31&type=chunk) [Dividends (Notes)](index=15&type=section&id=Dividends%20(Notes)) For the six months ended June 30, 2025, neither the company nor any of its subsidiaries paid or declared any dividends - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries paid or declared any dividends (2024: nil)[32](index=32&type=chunk) [Earnings Per Share (Notes)](index=15&type=section&id=Earnings%20Per%20Share%20(Notes)) For the six months ended June 30, 2025, basic earnings per share significantly increased to 3.39 HK cents, with diluted earnings per share being the same due to no potential dilutive ordinary shares Earnings Per Share (HK cents) | Metric | 2025 (HK cents) | 2024 (HK cents) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic and diluted earnings per share | 3.39 | 0.41 | +726.8% | - Basic earnings per share are calculated based on the profit attributable to owners of the company and the weighted average number of **38,000,000** ordinary shares in issue (2024: 34,699,346 shares)[33](index=33&type=chunk) - Diluted earnings per share are the same as basic earnings per share as there were no outstanding ordinary shares with potential dilutive effects as of June 30, 2025[33](index=33&type=chunk) [Property, Plant and Equipment (Notes)](index=16&type=section&id=Property%2C%20Plant%20and%20Equipment%20(Notes)) For the six months ended June 30, 2025, the Group did not acquire any property, plant, and equipment - For the six months ended June 30, 2025, the Group did not acquire any property, plant and equipment (2024: approximately **HK$514,000**)[34](index=34&type=chunk) [Intangible Assets (Notes)](index=16&type=section&id=Intangible%20Assets%20(Notes)) For the six months ended June 30, 2025, the Group did not acquire any intangible assets and made no provision for impairment losses on intangible assets - For the six months ended June 30, 2025, the Group did not acquire any intangible assets (2024: nil), and no provision for impairment losses on intangible assets was made (2024: nil)[35](index=35&type=chunk) [Trade Receivables (Notes)](index=16&type=section&id=Trade%20Receivables%20(Notes)) As of June 30, 2025, trade receivables significantly decreased to HK$735 thousand from HK$3,384 thousand, with all balances aged within 30 days and a general credit period of 60 days Trade Receivables (HK$ thousand) | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Trade receivables | 735 | 3,384 | -2,649 | - The Group generally grants a credit period of **within 60 days** to its trade debtors[36](index=36&type=chunk) - As of the end of the reporting period, all trade receivables (net of impairment losses) were aged **within 30 days** based on invoice date[37](index=37&type=chunk) [Trade Payables (Notes)](index=16&type=section&id=Trade%20Payables%20(Notes)) The Group's trade payables primarily consist of amounts due to suppliers, typically with an aging period of within 30 days from the invoice date - The Group's trade payables primarily consist of amounts due to its suppliers, with an aging period of **within 30 days** from the invoice date[38](index=38&type=chunk) [Share Capital (Notes)](index=17&type=section&id=Share%20Capital%20(Notes)) As of June 30, 2025, the company's authorized share capital was HK$10,000,000, divided into 100,000,000 ordinary shares of HK$0.1 each, with issued and fully paid share capital of HK$3,800 thousand, consistent with December 31, 2024 - As of June 30, 2025, the company's authorized share capital was **HK$10,000,000**, divided into **100,000,000** ordinary shares of **HK$0.1** each[39](index=39&type=chunk) - The issued and fully paid share capital was **HK$3,800 thousand**, comprising **38,000,000** ordinary shares, which remained unchanged from December 31, 2024[40](index=40&type=chunk) [Related Party Transactions (Notes)](index=17&type=section&id=Related%20Party%20Transactions%20(Notes)) For the six months ended June 30, 2025, total remuneration for directors and other key management personnel significantly decreased by 75.6% to HK$420 thousand Key Management Personnel Remuneration (HK$ thousand) | Remuneration Category | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Fees, salaries and staff benefits and discretionary bonuses (short-term employee benefits) | 408 | 1,713 | -1,305 | | Defined contribution plans (post-employment benefits) | 12 | 12 | 0 | | **Total Remuneration** | **420** | **1,725** | **-1,305** | - Total remuneration for directors and other key management personnel decreased by **75.6%** year-on-year[41](index=41&type=chunk) [Capital Commitments (Notes)](index=17&type=section&id=Capital%20Commitments%20(Notes)) The Group continues to make capital injections into its China subsidiaries, with approximately HK$9,167 thousand injected into Zhejiang Zhiao and HK$545,350 into Zhiyouxing to support business development - Zhejiang Zhiao, a wholly-owned subsidiary, was established on December 28, 2021, with a registered capital of **RMB50,000,000**. As of June 30, 2025, approximately **RMB8,166,000** (approximately **HK$9,167,000**) has been injected into Zhejiang Zhiao[42](index=42&type=chunk) - Zhiyouxing, a subsidiary, was established on October 23, 2024, with a registered capital of **RMB2,000,000**. As of June 30, 2025, **RMB500,000** (approximately **HK$545,350**) has been injected into Zhiyouxing[43](index=43&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the Group's business performance, financial results, capital structure, liquidity, and future outlook for the reporting period [Business Review and Outlook](index=18&type=section&id=Business%20Review%20and%20Outlook) The Group, a software service provider and game developer, recorded a net profit of HK$1.3 million for the period and is reallocating resources to China's cybersecurity and e-commerce technology services to capitalize on market opportunities - The Group is a software service provider focused on the China market, offering internet security technology services and e-commerce related technology services, and is also an integrated game developer, operator, and publisher focused on the Hong Kong and other regional markets[44](index=44&type=chunk) - For the six months ended June 30, 2025, the Group recorded a net profit of approximately **HK$1.3 million**, compared to approximately **HK$0.1 million** in the prior year period[44](index=44&type=chunk) - The company is allocating more resources to its cybersecurity technology services and internet e-commerce technology services businesses due to significant market opportunities and strong demand in China[44](index=44&type=chunk) [Financial Review](index=18&type=section&id=Financial%20Review) The Group achieved significant revenue growth during the reporting period, but gross margin declined, while selling expenses increased and administrative expenses decreased, leading to a substantial increase in profit for the period [Revenue (Financial Review)](index=18&type=section&id=Revenue%20(Financial%20Review)) For the six months ended June 30, 2025, the Group's revenue increased by approximately 91.8% to HK$38.4 million, primarily driven by a HK$22.0 million increase in software services revenue Revenue (HK$ thousand) | Metric | 2025 | 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 38,400 | 20,000 | +91.8% | - The increase in revenue was primarily due to an increase of approximately **HK$22.0 million** in software services revenue compared to the prior year period[45](index=45&type=chunk) [Cost of Services Provided (Financial Review)](index=18&type=section&id=Cost%20of%20Services%20Provided%20(Financial%20Review)) The cost of services provided increased by approximately 141.8% to HK$30.2 million for the six months ended June 30, 2025, mainly due to higher costs associated with the software services business Cost of Services Provided (HK$ thousand) | Metric | 2025 | 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Cost of services provided | 30,200 | 12,500 | +141.8% | - The increase in cost was primarily due to increased service costs related to the software services business for the six months ended June 30, 2025[46](index=46&type=chunk) [Gross Profit and Gross Margin (Financial Review)](index=18&type=section&id=Gross%20Profit%20and%20Gross%20Margin%20(Financial%20Review)) Gross profit increased by 8.9% to HK$8.2 million, but gross margin decreased by 16.2 percentage points to 21.4%, primarily due to a lower gross margin in the software services business Gross Profit and Gross Margin | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Gross profit | 8,200 | 7,500 | +8.9% | | Gross margin | 21.4% | 37.6% | -16.2 percentage points | - The decrease in gross margin was primarily attributable to a decrease in the gross margin of the software services business from approximately **38.7%** in the prior year period to approximately **17.9%**[47](index=47&type=chunk) [Selling Expenses (Financial Review)](index=19&type=section&id=Selling%20Expenses%20(Financial%20Review)) Selling expenses increased by approximately 122.4% to HK$3.2 million for the six months ended June 30, 2025, mainly due to increased promotion and advertising expenses for the software services business Selling Expenses (HK$ thousand) | Metric | 2025 | 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Selling expenses | 3,200 | 1,400 | +122.4% | - The increase in selling expenses was primarily attributable to increased promotion and advertising expenses for the software services business[49](index=49&type=chunk) [Administrative Expenses (Financial Review)](index=19&type=section&id=Administrative%20Expenses%20(Financial%20Review)) For the six months ended June 30, 2025, the Group's administrative expenses decreased by approximately 39.3% to HK$3.7 million, primarily due to reduced staff costs and legal and professional fees Administrative Expenses (HK$ thousand) | Metric | 2025 | 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Administrative expenses | 3,700 | 6,100 | -39.3% | - The decrease in administrative expenses was primarily due to reduced staff costs and legal and professional fees[50](index=50&type=chunk) [Profit for the Period (Financial Review)](index=19&type=section&id=Profit%20for%20the%20Period%20(Financial%20Review)) The Group recorded a net profit of approximately HK$1.3 million for the six months ended June 30, 2025, a significant increase from HK$0.1 million in the prior year, driven by revenue growth and reduced administrative expenses Profit for the Period (HK$ thousand) | Metric | 2025 | 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net profit | 1,300 | 100 | +1200% | - The increase in net profit was primarily due to the Group's revenue growth of approximately **91.8%** (mainly from the software services business) and a decrease in administrative expenses of approximately **HK$2.4 million** (mainly attributable to reduced staff costs and legal and professional fees)[51](index=51&type=chunk) [Capital Structure](index=19&type=section&id=Capital%20Structure) The Group's share capital consists solely of ordinary shares, with 38,000,000 ordinary shares of HK$0.1 each issued and fully paid as of June 30, 2025, following a share consolidation, rights issue, and share placement - The Group's share capital consists solely of ordinary shares, listed on GEM on January 13, 2016[52](index=52&type=chunk) - A share consolidation was completed on December 18, 2023, where every ten shares of HK$0.01 par value were consolidated into one share of HK$0.1 par value, with **24,000,000 shares** issued immediately after the consolidation[52](index=52&type=chunk) - On January 24, 2024, the issued share capital increased to **36,000,000 shares** due to the completion of a rights issue; on November 26, 2024, it further increased to **38,000,000 shares** due to the completion of a placement of new shares[52](index=52&type=chunk)[53](index=53&type=chunk) - As of June 30, 2025, the issued share capital was **HK$3.8 million**, with **38,000,000** ordinary shares issued, each with a par value of **HK$0.1**[54](index=54&type=chunk) [Liquidity, Financial Resources and Funding](index=20&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Funding) The Group primarily funds its operations through operating activities and equity financing, with cash and cash equivalents of approximately HK$8.9 million as of June 30, 2025, and no bank borrowings, with cash mainly used for operating and capital expenditures - The company primarily funds its operations through cash generated from operating activities and equity financing, with **no bank borrowings** for the six months ended June 30, 2025[55](index=55&type=chunk) Cash and Cash Equivalents (HK$ thousand) | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | 8,900 | 5,900 | +3,000 | - The primary use of cash is expected to continue to be for operating costs and capital expenditures[56](index=56&type=chunk) [Significant Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=20&type=section&id=Significant%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) For the six months ended June 30, 2025, the company did not undertake any significant acquisitions or disposals of subsidiaries, associates, or joint ventures - Except as disclosed in this report, the company had no significant acquisitions or disposals of subsidiaries, associates, and joint ventures for the six months ended June 30, 2025[57](index=57&type=chunk) [Material Investments Held by the Group](index=20&type=section&id=Material%20Investments%20Held%20by%20the%20Group) For the six months ended June 30, 2025, the Group did not hold any material investments - For the six months ended June 30, 2025, the Group did not hold any material investments[58](index=58&type=chunk) [Future Plans for Material Investments or Capital Assets](index=20&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) As of June 30, 2025, the Group had no specific future plans for material investments or acquisitions of capital assets - Except as disclosed in this report, as of June 30, 2025, the Group had no specific plans for material investments or acquisitions of capital assets[59](index=59&type=chunk) [Foreign Exchange Risk](index=20&type=section&id=Foreign%20Exchange%20Risk) The Group's foreign currency risk primarily arises from overseas income or patent and license fee payments denominated in USD, with no current hedging policy but ongoing monitoring and consideration for hedging when necessary - The Group's foreign currency risk primarily arises from its overseas income or payments for patent and license fees, which are mainly denominated in **USD**[60](index=60&type=chunk) - The company currently has no foreign currency hedging policy but will monitor foreign exchange risk and consider hedging when necessary[60](index=60&type=chunk) [Treasury Policy](index=20&type=section&id=Treasury%20Policy) The Group adopts a conservative treasury policy, continuously monitoring trade receivables and transacting only with reputable counterparties to manage liquidity risk, considering credit risk low due to high-credit-rated counterparties and limited trade debtors - The Group's treasury policy adopts a conservative approach, monitoring trade receivables on an ongoing basis and transacting only with reputable counterparties[61](index=61&type=chunk) - The credit risk of liquidity is considered low because counterparties are large banks with high credit ratings, and trade receivables primarily arise from a limited number of trade debtors[61](index=61&type=chunk) - Liquidity position is closely monitored to ensure that the liquidity structure of assets, liabilities, and commitments can meet its funding requirements[61](index=61&type=chunk) [Pledge of the Group's Assets](index=20&type=section&id=Pledge%20of%20the%20Group%27s%20Assets) As of June 30, 2025, the Group had no assets pledged as collateral for bank borrowings or any other financing - As of June 30, 2025, the Group had no assets pledged as collateral for bank borrowings or any other financing (December 31, 2024: nil)[62](index=62&type=chunk) [Contingent Liabilities](index=20&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities (December 31, 2024: nil)[63](index=63&type=chunk) [Commitments (Management Discussion and Analysis)](index=21&type=section&id=Commitments%20(Management%20Discussion%20and%20Analysis)) The Group's contractual commitments primarily involve capital injections into its China subsidiaries, with approximately HK$9,167 thousand injected into Zhejiang Zhiao and HK$545,350 into Zhiyouxing, but no capital commitments for acquiring intangible assets - The Group's contractual commitments primarily involve the acquisition of intangible assets, but as of June 30, 2025, there were **no capital commitments** for acquiring intangible assets[65](index=65&type=chunk) - As of June 30, 2025, approximately **RMB8,166,000** (approximately **HK$9,167,000**) had been injected into Zhejiang Zhiao, a wholly-owned subsidiary[65](index=65&type=chunk) - As of June 30, 2025, **RMB500,000** (approximately **HK$545,350**) had been injected into Zhiyouxing, a subsidiary[66](index=66&type=chunk) [Segment Information (Management Discussion and Analysis)](index=21&type=section&id=Segment%20Information%20(Management%20Discussion%20and%20Analysis)) The segment analysis of the Group's principal businesses is detailed in Note 4 to the unaudited condensed consolidated financial statements - The analysis of the Group's principal businesses by segment is set out in Note 4 to the unaudited condensed consolidated financial statements[67](index=67&type=chunk) [Employee Information](index=21&type=section&id=Employee%20Information) As of June 30, 2025, the Group employed 27 staff in China and Hong Kong, a decrease of 3 from the prior year, with total staff costs of approximately HK$2.0 million, and remuneration determined by performance and experience Employee Headcount and Costs | Metric | June 30, 2025 | June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Number of employees | 27 | 30 | -3 | | Total staff costs (HK$ thousand) | 2,000 | 2,600 | -600 | - Employee remuneration is determined based on their performance and work experience. In addition to basic salaries, eligible employees may also receive discretionary bonuses and share options[68](index=68&type=chunk) [Interim Dividend](index=21&type=section&id=Interim%20Dividend) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (2024: nil)[69](index=69&type=chunk) [Other Information](index=22&type=section&id=Other%20Information) This section covers various disclosures including directors' and substantial shareholders' interests, gearing ratio, corporate governance, and the share option scheme [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company](index=22&type=section&id=Directors%27%20and%20Chief%20Executive%27s%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company) As of June 30, 2025, Dr. Liu Yi, Chairman and CEO, held 37.60% of the company's shares through a controlled corporation, while Executive Director Mr. Wong Kin Wing beneficially owned 15.98% Directors' and Chief Executive's Long Positions in Ordinary Shares and Underlying Shares of the Company | Name of Director/Chief Executive | Capacity/Nature of Interest | Total Number of Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Dr. Liu Yi | Interest in controlled corporation | 14,288,677 | 37.60% | | Mr. Wong Kin Wing | Beneficial owner | 6,071,625 | 15.98% | - Dr. Liu Yi's interest is held through **Topliu Limited**, which is wholly-owned by her[71](index=71&type=chunk) [Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares and Underlying Shares](index=23&type=section&id=Substantial%20Shareholders%27%20and%20Other%20Persons%27%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares) As of June 30, 2025, Topliu Limited beneficially held 37.60% of the company's shares, and Ms. Sun Li (spouse of Mr. Wong Kin Wing) was deemed to have an interest in 15.98% of the shares Substantial Shareholders' and Other Persons' Long Positions in Ordinary Shares and Underlying Shares of the Company | Name of Shareholder/Person | Nature of Interest | Number of Shares or Securities Held | Approximate Percentage of Interest in the Company | | :--- | :--- | :--- | :--- | | Topliu Limited | Beneficial owner | 14,288,677 | 37.60% | | Ms. Sun Li | Interest of spouse | 6,071,625 | 15.98% | - **Topliu Limited** is wholly-owned by Dr. Liu[73](index=73&type=chunk) - **Ms. Sun Li** is the spouse of Mr. Wong and is deemed under the Securities and Futures Ordinance to have an interest in the shares in which Mr. Wong has an interest[74](index=74&type=chunk) [Gearing Ratio](index=23&type=section&id=Gearing%20Ratio) As of June 30, 2025, the Group's gearing ratio (calculated as total liabilities divided by total assets) was approximately 15.8%, a decrease from 16.7% on December 31, 2024, indicating improved financial leverage Gearing Ratio | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Gearing ratio | 15.8% | 16.7% | -0.9 percentage points | [Purchase, Sale or Redemption of the Company's Listed Securities](index=23&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[76](index=76&type=chunk) [Significant Acquisitions and Disposals (Other Information)](index=23&type=section&id=Significant%20Acquisitions%20and%20Disposals%20(Other%20Information)) For the six months ended June 30, 2025, the Group did not undertake any significant acquisitions or disposals - There were no significant acquisitions or disposals for the six months ended June 30, 2025[77](index=77&type=chunk) [Competition and Conflicts of Interest](index=24&type=section&id=Competition%20and%20Conflicts%20of%20Interest) For the six months ended June 30, 2025, no directors, controlling shareholders, or their close associates engaged in any business competing with the Group or had any other conflicts of interest - For the six months ended June 30, 2025, no directors, controlling shareholders, or substantial shareholders of the company, or any of their respective close associates, engaged in any business that competes or may compete with the Group's business or had any other conflicts of interest with the Group[78](index=78&type=chunk) [Directors' Securities Transactions](index=24&type=section&id=Directors%27%20Securities%20Transactions) The company has adopted a code of conduct for directors' securities transactions, with terms no less exacting than the GEM Listing Rules, and all directors confirmed compliance during the reporting period - The company has adopted a code of conduct for directors' securities transactions, the terms of which are no less exacting than the required standard of dealings set out in the GEM Listing Rules[79](index=79&type=chunk) - Following specific enquiries made to all directors, they confirmed that they had complied with the code of conduct and the required standard of dealings for the six months ended June 30, 2025[79](index=79&type=chunk) [Corporate Governance Practices](index=24&type=section&id=Corporate%20Governance%20Practices) The company has applied the principles and code provisions of the Corporate Governance Code in Appendix C1 of the GEM Listing Rules, complying with all applicable provisions during the reporting period, except for the combined roles of Chairman and CEO, which is deemed beneficial for strategic consistency - The company has applied the principles and code provisions of the Corporate Governance Code set out in Appendix C1 to the GEM Listing Rules and has complied with all applicable code provisions during the reporting period[80](index=80&type=chunk) - A deviation from code provision C.2.1 exists, where the roles of Chairman and Chief Executive Officer are combined and held by **Dr. Liu Yi**, which the Board believes is beneficial in ensuring consistency and continuity in the planning and execution of the company's strategies, and provides strong and consistent leadership[80](index=80&type=chunk) [Sufficiency of Public Float](index=24&type=section&id=Sufficiency%20of%20Public%20Float) As of the report date, the directors confirmed that the company has maintained the 25% public float as required by the GEM Listing Rules - As of the date of this report, the directors confirmed that the company has maintained the **25% public float** as required by the GEM Listing Rules[81](index=81&type=chunk) [Share Option Scheme](index=25&type=section&id=Share%20Option%20Scheme) The Share Option Scheme aims to attract and retain eligible individuals, aligning their interests with shareholders for long-term financial success, with a maximum share limit of 30% of issued shares and no unexercised options as of June 30, 2025 - The Share Option Scheme aims to attract and retain the best eligible individuals, provide additional incentives, and promote the Group's long-term financial success by aligning the interests of option holders with those of shareholders[82](index=82&type=chunk) - The maximum number of shares that can be issued is limited to **30%** of the issued shares from time to time, and the total number of shares subject to options granted to any one participant in any 12-month period shall not exceed **1%** of the issued shares[84](index=84&type=chunk)[86](index=86&type=chunk) - As of June 30, 2025, the total number of share options available for grant under the Share Option Scheme was **1,600,000 shares**, representing approximately **4.21%** of the total issued shares, with **no unexercised share options**[85](index=85&type=chunk)[92](index=92&type=chunk) - The option period shall not exceed **10 years** from the date of grant, and the scheme is valid for **ten years** from January 13, 2016, with approximately **six months** remaining[89](index=89&type=chunk) - The subscription price shall not be less than the highest of the closing price of the shares as stated in the daily quotation sheet of the Stock Exchange on the date of grant, the average closing price of the shares as stated in the daily quotation sheets of the Stock Exchange for the five trading days immediately preceding the date of grant, and the nominal value of the shares[90](index=90&type=chunk) [Audit Committee](index=27&type=section&id=Audit%20Committee) The Audit Committee, established on December 23, 2015, and chaired by Mr. Luk Yik, has reviewed the Group's unaudited consolidated results for the six months ended June 30, 2025, confirming compliance with accounting standards and listing rules - The Audit Committee was established on December 23, 2015, with **Mr. Luk Yik** (Independent Non-executive Director) as Chairman, and other members including **Ms. Lok Mei Kwan** and **Mr. Kam Pak Ting** (Independent Non-executive Directors)[93](index=93&type=chunk) - The company has complied with the requirements of Rule 5.28 of the GEM Listing Rules regarding the composition and professional qualifications of the Audit Committee[93](index=93&type=chunk) - The Audit Committee has reviewed the Group's unaudited consolidated results for the six months ended June 30, 2025, and is of the opinion that they comply with applicable accounting standards, the GEM Listing Rules, and other applicable legal requirements, and that adequate disclosures have been made[93](index=93&type=chunk) [Events After the Reporting Period](index=27&type=section&id=Events%20After%20the%20Reporting%20Period) Except as disclosed in this report, the company or the Group had no other significant subsequent events after June 30, 2025, and up to the date of this report - Except as disclosed in this report, the company or the Group had no other significant subsequent events after June 30, 2025, and up to the date of this report[94](index=94&type=chunk) [Publication of Interim Results and Interim Report](index=27&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report) The interim results announcement and interim report have been published on the HKEX and company websites and will be dispatched to shareholders, who can request printed copies free of charge - The interim results announcement and interim report are published on the HKEX website (www.hkexnews.hk) and the company's website (www.hk08282.com)[95](index=95&type=chunk) - The company's interim report for the six months ended June 30, 2025, will be dispatched to the company's shareholders, and shareholders may request a printed copy of the interim report free of charge at any time by sending a written notice to the company or the company's Hong Kong share registrar, Union Registrars Limited[95](index=95&type=chunk)

[Financial Highlights](index=2&type=section&id=Financial%20Highlights) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, Group revenue decreased by 9.0% year-on-year to HK$370 million, gross profit significantly declined by 32.2% to HK$114 million. Due to reduced gross profit and lower net other income, profit attributable to owners of the Company sharply decreased by 52.2% year-on-year to HK$45.15 million, and basic earnings per share decreased to 4.91 HK cents Key Financial Performance for H1 2025 | Metric | For the six months ended Jun 30, 2025 (HK$ Thousand) | For the six months ended Jun 30, 2024 (HK$ Thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 369,837 | 406,237 | -9.0% | | Gross Profit | 113,712 | 167,796 | -32.2% | | Profit Before Income Tax Expense | 55,126 | 107,058 | -48.5% | | Profit Attributable to Owners of the Company | 45,150 | 94,552 | -52.2% | | Basic & Diluted EPS (HK Cents) | 4.91 | 9.15 | -46.3% | [Consolidated Statement of Financial Position](index=3&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, Group total assets increased to HK$858 million, total liabilities increased to HK$166 million, and net assets (total equity) amounted to HK$692 million. Net current assets remained stable, but bank borrowings increased Financial Position Summary | Metric | As of Jun 30, 2025 (HK$ Thousand) | As of Dec 31, 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Non-current Assets | 250,965 | 220,048 | +14.1% | | Current Assets | 607,315 | 576,739 | +5.3% | | **Total Assets** | **858,280** | **796,787** | **+7.7%** | | Current Liabilities | 157,990 | 139,882 | +12.9% | | Non-current Liabilities | 8,163 | 9,933 | -17.8% | | **Total Liabilities** | **166,153** | **149,815** | **+10.9%** | | **Net Assets** | **692,127** | **646,972** | **+7.0%** | [Consolidated Statement of Cash Flows](index=6&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, Group cash flow from operating activities turned positive, achieving a net inflow of HK$31.97 million, primarily due to improved operational efficiency. Investing activities continued to show a net outflow, mainly for the purchase of property, plant, and equipment. Financing activities recorded a net inflow due to new bank borrowings. Cash and cash equivalents at period-end increased to HK$338 million Cash Flow Summary | Item | For the six months ended Jun 30, 2025 (HK$ Thousand) | For the six months ended Jun 30, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Net Cash From/(Used In) Operating Activities | 31,969 | (21,265) | | Net Cash Used In Investing Activities | (33,198) | (44,053) | | Net Cash From/(Used In) Financing Activities | 14,947 | (36,838) | | Net Increase/(Decrease) in Cash & Cash Equivalents | 13,718 | (102,156) | | Cash & Cash Equivalents at Period-End | 338,232 | 234,616 | [Notes to the Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) [3. Revenue and Segment Information](index=8&type=section&id=3.%20Revenue%20and%20Segment%20Information) The Group's core business is the manufacturing and sale of candle products, constituting a single operating segment. By product type, scented candles were the primary revenue source, though their sales slightly decreased year-on-year. By geographical location, the US market contributed the vast majority of revenue, but saw a 13.0% year-on-year decrease; conversely, UK market revenue significantly increased Revenue by Product Type | Product Type | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Household Candles | 48,356 | 54,734 | -11.7% | | Scented Candles | 268,851 | 274,948 | -2.2% | | Decorative Candles | 11,946 | 8,585 | +39.1% | | Others (incl. Aroma Diffusers) | 40,684 | 67,970 | -40.1% | | **Total** | **369,837** | **406,237** | **-9.0%** | Revenue by Customer Location | Region | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | United States | 341,950 | 393,050 | -13.0% | | United Kingdom | 27,356 | 9,352 | +192.5% | | Others | 531 | 3,835 | -86.2% | | **Total** | **369,837** | **406,237** | **-9.0%** | [11. Earnings Per Share](index=13&type=section&id=11.%20Earnings%20Per%20Share) Due to a decrease in profit for the period, basic earnings per share for the six months ended June 30, 2025, was 4.91 HK cents, a significant reduction from 9.15 HK cents in the prior year period. No potential ordinary shares were outstanding during the reporting period, thus diluted earnings per share is not presented - Basic earnings per share decreased from **9.15 HK cents** in the prior year period to **4.91 HK cents**[3](index=3&type=chunk) - The weighted average number of ordinary shares used to calculate basic earnings per share was **918,500,000 shares**, less than **1,033,184,066 shares** in the prior year period, potentially related to previous share repurchases[33](index=33&type=chunk)[6](index=6&type=chunk) [10. Dividends](index=13&type=section&id=10.%20Dividends) The Board did not recommend an interim dividend for the six months ended June 30, 2025, consistent with the prior year period - No dividends were paid, declared, or recommended for the six months ended June 30, 2025, and 2024[30](index=30&type=chunk) [Management Discussion and Analysis](index=20&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=20&type=section&id=Business%20Review) The Group's core business is the manufacturing and sale of candle products, with the US and UK as primary markets. Despite enhanced production capacity from the new automated factory in Vietnam, recent US imposition of a 20% tariff on Vietnamese imports significantly increased export costs, pressuring profit margins. To address these challenges, the Group plans to enhance production efficiency and explore market diversification - The Group primarily engages in candle product manufacturing and sales, with the **United States** and **United Kingdom** as key markets, and **Vietnam** as the main production hub (accounting for over **90%** of total capacity)[49](index=49&type=chunk)[51](index=51&type=chunk) - The main challenge is the **US government's imposition of a 20% tariff** on Vietnamese imports, which will significantly increase export costs and compress future profit margins[51](index=51&type=chunk) - Response strategies include enhancing production efficiency to reduce costs and actively exploring other markets like **Europe** for diversification[51](index=51&type=chunk) [Financial Review](index=21&type=section&id=Financial%20Review) In the first half of 2025, the Group's financial performance faced pressure. Revenue decreased by 9.0% due to lower sales volume of key products. Gross profit margin decreased from 41.3% to 30.7% due to increased unit prices of raw materials, leading to a significant 32.2% reduction in gross profit. Despite a decrease in administrative expenses, the combined impact of reduced gross profit and other income resulted in a sharp 52.2% year-on-year decline in net profit Year-on-Year Financial Performance Changes and Reasons | Item | H1 2025 | H1 2024 | Y-o-Y Change | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Revenue | 369.8 HK$ Million | 406.2 HK$ Million | -9.0% | Decreased sales volume of household, scented, and other candle products | | Gross Profit | 113.7 HK$ Million | 167.8 HK$ Million | -32.2% | Increased unit prices of raw materials led to lower gross profit margin | | Gross Profit Margin | 30.7% | 41.3% | -10.6 percentage points | Increased unit prices of raw materials | | Administrative Expenses | 48.6 HK$ Million | 72.7 HK$ Million | -33.1% | Reduced salaries and allowances, legal and professional fees | | Net Profit | 45.2 HK$ Million | 94.6 HK$ Million | -52.2% | Combined impact of reduced gross profit and other income | [Liquidity and Financial Resources](index=23&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's financial position remained robust, with a current ratio of approximately 3.8 times. However, due to increased bank borrowings, the gearing ratio (total debt/total equity) rose from 2.5% to 5.7%. The Group has unutilized banking facilities of approximately HK$86.7 million, providing sufficient financial resources to support its operations Key Financial Ratios | Metric | As of Jun 30, 2025 | As of Dec 31, 2024 | | :--- | :--- | :--- | | Current Ratio | Approx. 3.8 times | Approx. 4.1 times | | Gearing Ratio | Approx. 5.7% | Approx. 2.5% | | Unutilized Banking Facilities | Approx. HK$86.7 million | Approx. HK$115.9 million | - The increase in gearing ratio is primarily due to **increased bank borrowings**[63](index=63&type=chunk) [Use of Proceeds](index=26&type=section&id=Use%20of%20Proceeds) As of June 30, 2025, all net proceeds from the listing, approximately HK$44.5 million, have been fully utilized in line with the business objectives outlined in the prospectus, primarily for upgrading and acquiring production equipment, purchasing new machinery, installing an ERP system, and repaying bank loans - Net proceeds from the listing, approximately **HK$44.5 million**, were fully utilized by June 30, 2025, with no remaining balance[77](index=77&type=chunk)[84](index=84&type=chunk) Allocation and Utilization of Proceeds | Purpose | Allocated Amount (HK$ Million) | Status | | :--- | :--- | :--- | | Upgrading existing production equipment | 6.2 | Utilized | | Acquiring new production equipment | 18.1 | Utilized | | Purchasing new machinery | 9.2 | Utilized | | Installing Enterprise Resource Planning system | 2.0 | Utilized | | Repaying part of bank loans | 6.9 | Utilized | | General working capital | 2.1 | Utilized | | **Total** | **44.5** | **Fully Utilized** | [Corporate Governance and Other Information](index=28&type=section&id=Corporate%20Governance%20and%20Other%20Information) During the reporting period, the Company complied with the required standard of dealings and corporate governance code set out in the GEM Listing Rules. The Audit Committee has reviewed the unaudited consolidated results for the period and deemed their preparation compliant with applicable accounting standards and disclosure requirements - The Company has complied with the required standard of dealings for directors' securities transactions and the Corporate Governance Code under the GEM Listing Rules[85](index=85&type=chunk)[87](index=87&type=chunk) - The Audit Committee, comprising **three independent non-executive directors**, has reviewed this interim results announcement[88](index=88&type=chunk)[89](index=89&type=chunk) - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the reporting period up to the date of this announcement[86](index=86&type=chunk)

[Supplementary Announcement: Audit Matters and New Measures Regarding the 2024 Annual Report](index=1&type=section&id=%E8%A3%9C%E5%85%85%E5%85%AC%E5%91%8A%EF%BC%9A%E9%97%9C%E6%96%BC2024%E5%B9%B4%E5%BA%A6%E5%A0%B1%E5%91%8A%E7%9A%84%E5%AF%A9%E6%A0%B8%E4%BA%8B%E9%A0%85%E5%8F%8A%E6%96%B0%E6%8E%AA%E6%96%BD) This supplementary announcement details the company's new measures to address an audit matter concerning documentation for third-party recruitment services in its 2024 annual report [Background and Purpose](index=1&type=section&id=1.%20%E8%83%8C%E6%99%AF%E8%88%87%E7%9B%AE%E7%9A%84) This announcement clarifies new measures taken by the company to address an audit matter in its 2024 annual report concerning insufficient documentation for third-party recruitment marketing services - The company issued this supplementary announcement to address an audit matter from its 2024 annual report regarding evidence retention for third-party recruitment promotion services, planning new measures to resolve it[2](index=2&type=chunk) [Details of New Measures](index=1&type=section&id=2.%20%E6%96%B0%E6%8E%AA%E6%96%BD%E8%A9%B3%E6%83%85) To resolve the audit matter, the company implemented seven new measures to enhance supervision and documentation for third-party recruitment service providers, covering planning, monitoring, inspections, and reconciliation New Measures Implemented to Strengthen Internal Controls | Measure | Time/Frequency | | :--- | :--- | | (i) Require sellers to provide complete records of their work plans for services provided | After each seller is engaged for relevant services | | (ii) Require admissions office personnel to prepare supervision plans based on seller work plans and retain supervision records | After each seller is engaged for relevant services | | (iii) Increase the frequency of on-site supervision and special inspections of services provided by sellers | At least once a month until the relevant service period expires | | (iv) Require admissions office personnel to retain written records of communications with sellers to confirm service delivery results | During the confirmation process of relevant services | | (v) Retain written reconciliation between the results of services provided by sellers and service fees paid according to contract terms | During the reconciliation process of relevant services | | (vi) Take photographs of seller work | During on-site supervision and special inspections | | (vii) Arrange regular meetings with sellers to discuss the status of service provision | Monthly until the relevant service period expires | [Implementation Status and Board Opinion](index=2&type=section&id=3.%20%E5%AF%A6%E6%96%BD%E7%8B%80%E6%B3%81%E8%88%87%E8%91%A3%E4%BA%8B%E6%9C%83%E6%84%8F%E8%A6%8B) As of August 8, 2025, all new measures have been implemented, and the Board believes these measures sufficiently address the audit matter and strengthen internal controls - As of the announcement date, the company confirms that all new measures aimed at strengthening internal controls have been fully implemented[5](index=5&type=chunk) - The Board believes the implementation of new measures has made the Group's internal controls sufficient and effective in addressing the previous audit matter[6](index=6&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表任何聲明， 並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Hutchison Telecommunications Hong Kong Holdings Limited 和記電訊香港控股有限公司 （於開曼群島註冊成立之有限公司） （股份代號：215） 截至 2025 年 6 月 30 日止六個月未經審核之業績 摘要 | | 2025 年上半年 | 2024 年上半年 | 變動 | | --- | --- | --- | --- | | | 百萬港元 | 百萬港元 | | | 總收益 | 2,216 | 2,058 | +8% | | 客戶服務收益淨額 | 1,822 | 1,760 | +4% | | 本地服務收益 | 1,423 | 1,452 | -2% | | 漫遊服務收益 | 399 | 308 | +30% | | (1) EBITDA 總額 | 771 | 728 | +6% | | (2) EBIT╱(LBIT) 總額 | 6 | (30) | + ...

[Overview of Supplementary Announcement Regarding 2024 Annual Report](index=1&type=section&id=%E6%9C%89%E5%85%B3%E6%88%AA%E8%87%B3%E4%BA%8C%E9%9B%B6%E4%BA%8C%E5%9B%9B%E5%B9%B4%E5%9B%9B%E6%9C%88%E4%B8%89%E5%8D%81%E6%97%A5%E6%AD%A2%E5%B9%B4%E5%A0%B1%E4%B9%8B%E8%A3%9C%E5%85%85%E5%85%AC%E5%91%8A) This report provides a supplementary overview of Tai Kam Holdings Limited's 2024 annual report, detailing share option scheme terms and director responsibilities [Announcement Purpose and Background](index=1&type=section&id=1.1%20Announcement%20Purpose) This supplementary announcement clarifies specific terms of the share option scheme for Tai Kam Holdings Limited's 2024 annual report, confirming other details remain unchanged - The company issued this announcement as a supplement to the 2024 Annual Report[2](index=2&type=chunk) - The announcement explicitly states that all other information in the 2024 Annual Report remains unchanged, except for the supplementary details[3](index=3&type=chunk) [Supplementary Information on Share Option Scheme](index=1&type=section&id=1.2%20Share%20Option%20Scheme) The announcement details the acceptance terms of the company's share option scheme, including a HK$1.00 consideration, a 21-day acceptance period, and a maximum ten-year exercise period Key Terms of Share Option Scheme | Term | Details | | :--- | :--- | | Acceptance Consideration | HK$1.00 | | Acceptance Period | Within 21 days from the date of grant | | Exercise Period | Not exceeding ten years from the date of grant and acceptance | [Directors' Information and Responsibility Statement](index=2&type=section&id=1.3%20Directors%20and%20Responsibility) The announcement lists the company's current executive and independent non-executive directors, including a standard compliance statement confirming their joint and individual responsibility for the accuracy and completeness of the announcement's content Board of Directors List | Position | Name | | :--- | :--- | | Executive Director | Mr. Lang Junhao | | Executive Director | Mr. Thanakon Kunna | | Independent Non-Executive Director | Mr. Luo Zhiyong | | Independent Non-Executive Director | Ms. Li Yixuan | | Independent Non-Executive Director | Mr. Le Kewei | - All company directors jointly and individually assume full responsibility for the accuracy and completeness of the information contained in this announcement, confirming no misleading or fraudulent content[4](index=4&type=chunk)

[Supplementary Information Regarding the 2024 Annual Report](index=1&type=section&id=Supplementary%20Information%20Regarding%20the%202024%20Annual%20Report) This section provides supplementary details on the company's 2024 annual report, primarily focusing on share option scheme changes and participant eligibility [Details of Share Option Scheme](index=1&type=section&id=Details%20of%20Share%20Option%20Scheme) This chapter provides supplementary information on the company's share option scheme for the year ended December 31, 2024, detailing changes in options granted to directors and employees and defining eligible participants for new schemes Details of Share Option Changes for the Year Ended December 31, 2024 | Participant Category | Grant Date | Exercise Price (HKD) | Balance as of January 1, 2024 | Expired During Year | Cancelled During Year | Balance as of December 31, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Directors | June 1, 2020 | 0.188 | 11,200,000 | (2,400,000) | (8,800,000) | — | | Employees | June 1, 2020 | 0.188 | 57,000,000 | — | (57,000,000) | — | - The new share option scheme's eligible participants include directors and employees of the Group and its associated entities, as well as contractors, suppliers, and consultants beneficial to the Group's long-term development[4](index=4&type=chunk) [Change in Use of Proceeds](index=2&type=section&id=Change%20in%20Use%20of%20Proceeds) This section outlines the company's plan to reallocate unused proceeds to support the development of its Traditional Chinese Medicine business [Proceeds Reallocation Plan and Rationale](index=2&type=section&id=Proceeds%20Reallocation%20Plan%20and%20Rationale) The company plans to reallocate approximately **HKD 20 million** of unutilized proceeds to support Traditional Chinese Medicine business development, primarily for supply chain and drug procurement, following the acquisition of Bozhou Lelaohao Pharmaceutical Co., Ltd. in July 2025, with all funds expected to be utilized by December 31, 2026 Proceeds Use Change Plan | Proposed Use | Amount (HKD) | Estimated Completion Date of Utilization | | :--- | :--- | :--- | | Traditional Chinese Medicine Business Development | Approx. 20 Million | December 31, 2026 | | General Working Capital | Remaining Unutilized Net Proceeds | December 31, 2026 | - The primary reason for changing the use of proceeds is to support the business development of the newly acquired **Bozhou Lelaohao Pharmaceutical Co., Ltd.**, which holds a drug operating license and engages in wholesale and retail distribution of pharmaceuticals[7](index=7&type=chunk) - Reallocated funds will primarily be used for supply chain development and drug procurement to support the Group's Traditional Chinese Medicine business, leveraging the acquisition to explore upstream and downstream opportunities in the pharmaceutical value chain[7](index=7&type=chunk)