[Performance Highlights](index=1&type=section&id=Performance%20Highlights) This section provides an overview of the Group's financial performance, interim dividend declaration, and key operational achievements for the period [Group Performance](index=1&type=section&id=Group%20Performance) For the six months ended June 30, 2025, the Group's underlying net profit remained stable at HKD 3.119 billion, consistent with the prior year, but a widened revaluation loss on investment properties of HKD 5.118 billion led to an increased loss attributable to shareholders of HKD 2.406 billion, with basic loss per share at HKD 0.79 H1 2025 Performance Overview | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Underlying Net Profit | HKD 3.119 billion | HKD 3.123 billion | | Net Revaluation Loss on Investment Properties | (HKD 5.118 billion) | (HKD 4.426 billion) | | Group Loss Attributable to Shareholders | (HKD 2.406 billion) | (HKD 1.052 billion) | | Basic Earnings Per Share | HKD 1.03 | HKD 1.03 | | Basic Loss Per Share | (HKD 0.79) | (HKD 0.35) | [Interim Dividend](index=1&type=section&id=Interim%20Dividend) The Board declared a first interim dividend of HKD 0.66 per share, a 3.1% increase from the prior year, totaling HKD 2.004 billion, representing 65% of underlying net profit from Hong Kong investment properties and hotels, reflecting consistent dividend policy Interim Dividend Details | Item | Amount/Date | | :--- | :--- | | First Interim Dividend | HKD 0.66 per share (2024: HKD 0.64) | | Total Dividend Payout | HKD 2.004 billion | | Payment Date | September 11, 2025 | [Performance Highlights](index=1&type=section&id=Performance%20Highlights) Despite declining investment property income and profit, and expanded revaluation losses, the Group achieved a 27% reduction in borrowing costs and a record-low gearing ratio of 17.6% through effective financial management, maintaining robust underlying net profit and increasing interim dividend payout - **Financial Optimization**: Borrowing costs reduced by **27%**, gearing ratio decreased to a new low of **17.6%**[6](index=6&type=chunk) - **Profitability**: Underlying net profit remained stable, but revaluation loss on investment properties widened[6](index=6&type=chunk) - **Shareholder Returns**: Consistent dividend policy maintained, with an increase in interim dividend per share[6](index=6&type=chunk) [Business Review and Outlook](index=2&type=section&id=Business%20Review%20and%20Outlook) This section reviews the market environment, performance of core properties, and the Group's strategic outlook [Market Environment and Financial Management](index=2&type=section&id=Market%20Environment%20and%20Financial%20Management) Amid geopolitical tensions and economic uncertainties, Hong Kong's retail market shows initial recovery, while office and hotel sectors remain under pressure; the Group's prudent financial management reduced net debt to a post-listing low and maintained a healthy gearing ratio of 17.6%, effectively navigating market volatility - **Market Trends**: Inbound tourist arrivals increased by **12%**, retail sales decline narrowed, with positive growth in the last two months; the office market faces dual pressures of weak demand and oversupply[7](index=7&type=chunk) - **Financial Strategy**: Maintained prudent financial management and actively reduced debt[7](index=7&type=chunk) Key Financial Management Indicators | Indicator | Period-End Data | | :--- | :--- | | Net Debt | HKD 33.3 billion (Lowest since listing) | | Average Interest Cost | 4.4% | | Borrowing Cost Savings | 27% | | Gearing Ratio | 17.6% | [Core Property Performance](index=2&type=section&id=Core%20Property%20Performance) During the period, Harbour City maintained stable overall revenue and operating profit with a 93% mall occupancy rate, while Times Square's overall revenue and operating profit declined by 15% and 19% respectively due to market conditions, though its mall occupancy rate rose to 96%; both properties actively introduced top brands and new concept stores to enhance competitiveness [Harbour City](index=2&type=section&id=Harbour%20City) Harbour City's overall revenue and operating profit, including hotels, remained largely flat; the mall maintained its market-leading position by introducing several top brands' first Hong Kong stores and expanding flagship stores, achieving a 93% occupancy rate, while the office occupancy rate remained at 90% but faced rental pressure due to market competition - **Overall Performance**: Revenue and operating profit changed by less than **1%**[9](index=9&type=chunk) - **Mall Leasing**: Attracted brands like Louis Vuitton (expansion), Canali, Urban Revivo, and Bacha Coffee to open their first Hong Kong stores or concept stores[10](index=10&type=chunk) - **Occupancy Rate**: Mall at **93%**, office at **90%**[11](index=11&type=chunk) [Times Square](index=3&type=section&id=Times%20Square) Times Square's overall revenue decreased by 15% and operating profit by 19%; to address challenges, the mall actively updated its tenant mix, introducing Louis Vuitton, expanding LOEWE, and opening Cristiano Ronaldo's first global CR7® flagship store, boosting its occupancy rate to 96%, while the office occupancy rate remained at 90% but faced rental pressure from new supply Times Square Performance Changes | Indicator | Year-on-Year Change | | :--- | :--- | | Overall Revenue | -15% | | Operating Profit | -19% | - **Mall Leasing**: Introduced Louis Vuitton and Cristiano Ronaldo's first global CR7® store, strengthening the luxury brand lineup[13](index=13&type=chunk) - **Occupancy Rate**: Mall increased to **96%**, office maintained at **90%**[14](index=14&type=chunk) [Outlook](index=3&type=section&id=Outlook) Despite macroeconomic challenges, the Group maintains cautious optimism for the Hong Kong market, anticipating that capital inflows into Hong Kong stocks, the opening of Kai Tak Sports Park, and major events will boost the economy and consumer sentiment; the Group will uphold proactive management strategies and a low leverage ratio to navigate adversities and seize opportunities - **Positive Factors**: Hong Kong stocks regaining upward momentum, the opening of Kai Tak Sports Park, and major events are expected to enhance Hong Kong's attractiveness[15](index=15&type=chunk) - **Group Strategy**: Maintain proactive management and a low leverage ratio, rigorously screen capital investments, and utilize robust cash flow to seize future opportunities[15](index=15&type=chunk) [Financial Review](index=4&type=section&id=Financial%20Review) This section provides a detailed review of the Group's interim financial results, liquidity, financial resources, capital commitments, and human resources [Interim Results Review](index=4&type=section&id=Interim%20Results%20Review) The Group's total revenue slightly decreased by 1% to HKD 6.407 billion, and operating profit fell by 5% to HKD 4.684 billion, primarily due to a decline in investment property segment revenue, while hotel business revenue and profit both grew; despite an expanded revaluation loss on investment properties leading to a HKD 2.406 billion loss attributable to shareholders, underlying net profit remained stable at HKD 3.119 billion after excluding non-cash items Revenue and Operating Profit by Business Segment (HKD million) | Business Segment | Revenue (2025) | Revenue (2024) | Operating Profit (2025) | Operating Profit (2024) | | :--- | :--- | :--- | :--- | :--- | | Investment Properties | 5,371 | 5,542 | 4,528 | 4,718 | | Hotels | 766 | 748 | 47 | 24 | | Property Development | 58 | 8 | (1) | 74 | | Investments | 143 | 140 | 143 | 140 | | **Group Total** | **6,407** | **6,501** | **4,684** | **4,915** | - **Investment Property Revaluation**: Generated a **2%** revaluation loss totaling **HKD 5.15 billion**, resulting in an unrealized revaluation loss attributable to shareholders of **HKD 5.118 billion**[18](index=18&type=chunk) - **Finance Costs**: Effective annual borrowing interest rate decreased from **5.7%** to **4.4%**, primarily due to a decline in HIBOR[20](index=20&type=chunk) [Liquidity, Financial Resources, and Capital Commitments](index=5&type=section&id=Liquidity%2C%20Financial%20Resources%2C%20and%20Capital%20Commitments) The Group's financial position is robust, with shareholders' equity at HKD 185.2 billion and total assets at HKD 234.2 billion as of period-end, 94% of which are in Hong Kong; net debt further decreased to HKD 33.3 billion, and the net debt to total equity ratio fell to 17.6%, with ample credit facilities and liquid investment portfolios, and future capital commitments primarily for Hong Kong investment properties and mainland development properties Key Financial Position Indicators (As of June 30, 2025) | Indicator | Amount/Ratio | Compared to December 31, 2024 | | :--- | :--- | :--- | | Shareholders' Equity | HKD 185.2 billion | Decreased by HKD 2.6 billion | | Total Assets | HKD 234.2 billion | Decreased by HKD 3.9 billion | | Net Debt | HKD 33.3 billion | Decreased by HKD 0.9 billion | | Net Debt to Total Equity Ratio | 17.6% | 17.8% | - **Asset Composition**: Investment property assets accounted for **93%** of operating assets, totaling **HKD 217.2 billion**[25](index=25&type=chunk) - **Credit Facilities**: Total available credit facilities and issued debt securities amounted to **HKD 44.1 billion**, with **HKD 9.4 billion** unused[32](index=32&type=chunk) - **Capital Commitments**: Estimated principal planned expenditures for the coming years are **HKD 936 million**, of which **HKD 240 million** has been committed[35](index=35&type=chunk) [Human Resources](index=8&type=section&id=Human%20Resources) As of June 30, 2025, the Group employed approximately 2,900 staff, with remuneration policies determined by job responsibilities and market trends, including discretionary bonuses linked to individual and Group performance - **Number of Employees**: Approximately **2,900** staff[37](index=37&type=chunk) - **Remuneration Structure**: Fixed remuneration plus performance-linked variable bonuses[37](index=37&type=chunk) [Consolidated Financial Statements](index=9&type=section&id=Consolidated%20Financial%20Statements) This section presents the Group's consolidated income statement, consolidated statement of comprehensive income, and consolidated statement of financial position [Consolidated Income Statement](index=9&type=section&id=Consolidated%20Income%20Statement) For the six months ended June 30, 2025, the Group recorded revenue of HKD 6.407 billion, a 1.4% year-on-year decrease; a HKD 5.15 billion decrease in fair value of investment properties resulted in a loss before tax of HKD 1.847 billion, with the ultimate loss attributable to company shareholders being HKD 2.406 billion Consolidated Income Statement Summary (HKD million) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue | 6,407 | 6,501 | | Operating Profit | 4,684 | 4,915 | | Decrease in Fair Value of Investment Properties | (5,150) | (4,450) | | Loss Before Tax | (1,847) | (460) | | Loss Attributable to Company Shareholders | (2,406) | (1,052) | | Basic Loss Per Share | (HKD 0.79) | (HKD 0.35) | [Consolidated Statement of Comprehensive Income](index=10&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) Loss for the period was HKD 2.475 billion, but positive impacts from fair value changes in equity investments, generating HKD 1.225 billion, and other foreign exchange differences, resulted in other comprehensive income of HKD 1.806 billion, narrowing the total comprehensive loss to HKD 669 million Consolidated Statement of Comprehensive Income Summary (HKD million) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Loss for the Period | (2,475) | (1,067) | | Other Comprehensive Income for the Period | 1,806 | (1,123) | | Total Comprehensive Income for the Period | (669) | (2,190) | | Total Comprehensive Income Attributable to Company Shareholders | (777) | (2,052) | [Consolidated Statement of Financial Position](index=11&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets were HKD 234.2 billion, total liabilities HKD 44.7 billion, and net assets HKD 189.5 billion, with investment properties as core assets valued at HKD 217.2 billion, and shareholders' equity at HKD 185.2 billion Consolidated Statement of Financial Position Summary (HKD million) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-current Assets (primarily Investment Properties) | 231,084 | 234,808 | | Total Assets | 234,219 | 238,072 | | Total Liabilities | (44,728) | (46,088) | | Net Assets | 189,491 | 191,984 | | Shareholders' Equity | 185,229 | 187,820 | [Notes to Interim Financial Information](index=12&type=section&id=Notes%20to%20Interim%20Financial%20Information) This section provides detailed segment information and other key notes to the interim financial statements [Segment Information](index=13&type=section&id=Segment%20Information) The Group's business is divided into four segments: investment properties, property development, hotels, and investments, with investment properties being the core source of revenue and profit, contributing over 80% of revenue and the vast majority of operating profit; geographically, Hong Kong is the Group's primary focus, contributing over 94% of revenue and 96% of operating profit H1 2025 Revenue and Operating Profit by Business Segment (HKD million) | Segment | Revenue | Operating Profit/(Loss) | | :--- | :--- | :--- | | Investment Properties | 5,371 | 4,528 | | Property Development | 58 | (1) | | Hotels | 766 | 47 | | Investments | 143 | 143 | | **Group Total** | **6,407** | **4,684** | H1 2025 Revenue and Operating Profit by Geographical Region (HKD million) | Region | Revenue | Operating Profit | | :--- | :--- | :--- | | Hong Kong | 6,043 | 4,504 | | Outside Hong Kong | 364 | 180 | | **Group Total** | **6,407** | **4,684** | [Other Key Notes](index=16&type=section&id=Other%20Key%20Notes) This section provides further explanations of key financial statement items, noting that operating profit is stated after deducting staff costs of HKD 583 million and direct operating expenses for investment properties of HKD 817 million; total finance costs were HKD 853 million, including HKD 749 million in total interest expenses, and total income tax was HKD 628 million; the Board declared a first interim dividend of HKD 0.66 per share - **Composition of Finance Costs**: Total finance costs of **HKD 853 million** included interest expenses on bank and other borrowings of **HKD 749 million** and fair value losses on derivative financial instruments of **HKD 74 million**[54](index=54&type=chunk) - **Income Tax**: Income tax expense for the period was **HKD 628 million**, with Hong Kong profits tax provision at **HKD 595 million**[55](index=55&type=chunk) - **Trade Receivables**: The Group's credit period typically ranges from **0 to 60 days**, with the vast majority of trade receivables aged within **30 days**[60](index=60&type=chunk) Interim Dividend Declared | Item | 2025 | 2024 | | :--- | :--- | :--- | | Interim Dividend Per Share | HKD 0.66 | HKD 0.64 | | Total Dividend | HKD 2.004 billion | HKD 1.943 billion | [Corporate Governance and Other Matters](index=21&type=section&id=Corporate%20Governance%20and%20Other%20Matters) This section outlines the Group's adherence to corporate governance principles, details on securities transactions, and key dates related to the interim dividend [Corporate Governance and Securities Transactions](index=21&type=section&id=Corporate%20Governance%20and%20Securities%20Transactions) During the reporting period, the Company complied with all applicable provisions of the Corporate Governance Code, with the sole exception of the Chairman and Chief Executive Officer roles being held by the same individual, which the Board believes is more effective for executing long-term strategies; neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the period - **Governance Code Compliance**: The Company complied with the Listing Rules' Corporate Governance Code, except for the Chairman and Chief Executive Officer roles being held by the same person[64](index=64&type=chunk) - **Securities Transactions**: No purchases, sales, or redemptions of the Company's listed securities occurred during the reporting period[65](index=65&type=chunk) [Interim Dividend Related Dates](index=21&type=section&id=Interim%20Dividend%20Related%20Dates) The Company announced the key timetable for interim dividend distribution, requiring shareholders to submit share transfer documents by 4:30 p.m. on August 27, 2025, with dividends to be paid on September 11 Interim Dividend Timetable | Event | Date | | :--- | :--- | | Ex-dividend Date | August 26, 2025 | | Record Date | August 27, 2025 | | Payment Date | September 11, 2025 |

[Financial Summary & Performance Overview](index=1&type=section&id=Financial%20%26%20Performance%20Summary) [Financial Summary](index=1&type=section&id=Financial%20Summary) In H1 2025, the company's revenue remained flat at HKD 1.932 billion, while profit for the period surged 36.0% to HKD 327 million, driven by lower costs and a 7.4 percentage point increase in gross profit margin to 36.3% Key Financial Metrics | Metric | H1 2025 | Change | | :--- | :--- | :--- | | Revenue | HKD 1.932 billion | Flat | | Profit | HKD 327 million | ▲ 36.0% | | Gross Profit Margin | 36.3% | ▲ 7.4 percentage points | | Interim Dividend | 19.5 HK cents per share | ▲ 39.3% | [Business Review](index=15&type=section&id=Business%20Review) The Group's revenue slightly decreased by 2.9% to HKD 1.932 billion, while profit surged 36.0% to HKD 327 million, driven by significant cost reductions in the chemical business, improving gross profit margin to 36.3% and net profit margin to 16.9% Key Performance Indicators | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue | HKD 1.932 billion | HKD 1.990 billion | | Profit for the Period | HKD 327 million | HKD 240 million | | Gross Profit Margin | 36.3% | 28.9% | | Net Profit Margin | 16.9% | 12.1% | - The primary reason for improved profitability was a **significant decrease in energy costs** and a **decline in raw material prices**, leading to **gross profit growth**[39](index=39&type=chunk) - For the property business, the "Xinyuexi" project has **11 residential units remaining for sale**, with rental income of approximately **HKD 1.7 million** during the period, **contributing minimally** to the Group's overall performance[39](index=39&type=chunk)[44](index=44&type=chunk) [Operating Results](index=16&type=section&id=Operating%20Results) The chemical business, as the core revenue source, generated approximately HKD 1.930 billion in turnover, a slight 2.0% year-on-year decrease, with varied selling price performance across key products and stable production volumes Average Selling Prices of Key Products | Key Product | H1 2025 Average Selling Price (RMB/ton) | Y-o-Y Change | | :--- | :--- | :--- | | Chloromethane | Approx. 2,600 (Dichloromethane) / 2,500 (Trichloromethane) | Flat / ▼ 7% | | Caustic Soda | Approx. 1,000 | ▲ 11% | | PTFE | Approx. 45,000 | Flat | | Hydrogen Peroxide | Approx. 700 | ▼ 22% | Production Volumes of Key Products | Key Product | H1 2025 Actual Production Volume (including self-use) | | :--- | :--- | | Chloromethane | Approx. 211 thousand tons | | 100% Caustic Soda Equivalent | Approx. 310 thousand tons | | PTFE | Approx. 5.0 thousand tons | | 27.5% Hydrogen Peroxide | Approx. 198 thousand tons | [Financial Statements](index=2&type=section&id=Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) In H1 2025, revenue slightly decreased to HKD 1.932 billion, but gross profit increased 21.9% to HKD 701 million due to lower cost of sales, leading to a 36.0% surge in profit for the period to HKD 327 million and basic earnings per share of 39.6 HK cents Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Highlights | Item (HKD '000) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | 1,931,959 | 1,989,690 | | Cost of Sales | (1,230,588) | (1,414,476) | | **Gross Profit** | **701,371** | **575,214** | | R&D Expenses | (82,994) | (54,529) | | Profit Before Tax | 394,923 | 297,776 | | **Profit for the Period** | **326,627** | **240,085** | | **Basic Earnings Per Share (HK cents)** | **39.6** | **29.1** | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets increased to HKD 7.315 billion and total equity to HKD 6.232 billion, with liquidity significantly improving as net current assets rose to HKD 429 million and the current ratio to 1.44, alongside a reduction in bank borrowings to HKD 484 million Condensed Consolidated Statement of Financial Position Highlights | Item (HKD '000) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Non-current Assets** | **5,911,794** | **5,809,033** | | **Current Assets** | **1,403,568** | **1,387,410** | | **Current Liabilities** | **(974,661)** | **(1,146,176)** | | Net Current Assets | 428,907 | 241,234 | | **Non-current Liabilities** | **(108,743)** | **(114,297)** | | **Net Assets** | **6,231,958** | **5,935,970** | | Bank Balances and Cash | 203,434 | 222,781 | | Bank Borrowings | 484,142 | 648,378 | [Notes to Financial Statements](index=6&type=section&id=Notes%20to%20Financial%20Statements) [Revenue](index=7&type=section&id=Revenue) The Group's total revenue primarily from chemical product sales saw caustic soda revenue grow 10.6% to HKD 883 million as a key driver, while other chemical products experienced declines and property sales revenue was zero Revenue by Product/Business Segment | Product/Business (HKD '000) | H1 2025 | H1 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Caustic Soda | 882,965 | 798,288 | ▲ 10.6% | | Chloromethane | 414,123 | 457,431 | ▼ 9.5% | | Polymer Materials | 193,629 | 230,974 | ▼ 16.2% | | Fluorochemical Products | 164,912 | 133,091 | ▲ 23.9% | | Hydrogen Peroxide | 128,494 | 188,876 | ▼ 31.9% | | **Total Chemical Products** | **1,930,270** | **1,968,854** | **▼ 2.0%** | | Property Sales | – | 18,994 | - | | **Total Revenue** | **1,931,959** | **1,989,690** | **▼ 2.9%** | [Segment Information](index=8&type=section&id=Segment%20Information) The chemical business is the core, contributing almost all revenue and HKD 418 million in segment results, a 39.8% increase, while the property segment recorded a HKD 495 thousand loss, with most of the Group's revenue and non-current assets located in China Segment Performance | Segment (HKD '000) | H1 2025 | H1 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | **Segment Revenue** | | | | | Chemical | 1,930,270 | 1,968,854 | ▼ 2.0% | | Property | 1,689 | 20,836 | ▼ 91.9% | | **Segment Results** | | | | | Chemical | 418,108 | 298,997 | ▲ 39.8% | | Property | (495) | 1,645 | - | - The Group's operations (including chemical and property segments) and the **vast majority of non-current assets** are located in **China**[19](index=19&type=chunk) [Expense & Cost Analysis](index=17&type=section&id=Expense%20%26%20Cost%20Analysis) The company effectively controlled expenses, with selling and distribution, administrative, and finance costs decreasing, while R&D costs significantly increased by 50.9% to HKD 83 million, reflecting a strong focus on product quality and innovation - Selling and distribution expenses **decreased by approximately HKD 9 million** year-on-year, primarily due to a **reduction in property sales commission expenses** during the period[45](index=45&type=chunk) - Administrative expenses **decreased by approximately HKD 4 million** year-on-year, primarily due to a **reduction in carbon emission fees** after implementing carbon reduction measures[46](index=46&type=chunk) - R&D costs **increased by approximately HKD 28 million** year-on-year (**a 50.9% increase**), as the Group focused on **optimizing core product process technology** and **developing new chemical products**[47](index=47&type=chunk) - Finance costs **decreased by approximately HKD 3 million** year-on-year, primarily due to a **reduction in the average loan amount** during the period[48](index=48&type=chunk) [Liquidity, Financial Resources & Capital Structure](index=18&type=section&id=Liquidity%2C%20Financial%20Resources%20%26%20Capital%20Structure) The company's financial position is robust and improving, with the current ratio rising to 1.44 and the net debt to equity ratio significantly decreasing to 3.23%, demonstrating enhanced solvency and reduced leverage, supported by ample cash and credit facilities Liquidity and Capital Structure Metrics | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Shareholders' Equity | HKD 6.232 billion | HKD 5.936 billion | | Current Ratio | 1.44 | 1.21 | | Bank Balances and Cash | HKD 283 million | HKD 291 million | | Net Debt | HKD 201 million | HKD 358 million | | Net Debt to Equity Ratio | 3.23% | 6.03% | - The Group actively **optimized its financing cost structure** across different currencies during the period and will continue to maintain **ample cash** and **available bank credit facilities**[50](index=50&type=chunk) [Shareholder Returns & Corporate Actions](index=12&type=section&id=Shareholder%20Returns%20%26%20Corporate%20Actions) [Dividends](index=12&type=section&id=Dividends) Based on robust earnings and financial health, the Board declared a 2025 interim dividend of 19.5 HK cents per share, a 39.3% increase from the prior period, demonstrating commitment to shareholder returns and confidence in future profitability Interim Dividend Declaration | Dividend Type | 2025 | 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Interim Dividend | 19.5 HK cents per share | 14 HK cents per share | ▲ 39.3% | - The interim dividend will be paid to shareholders whose names appear on the register of members on **August 25, 2025**, with an estimated payment date of **September 9, 2025**[27](index=27&type=chunk)[37](index=37&type=chunk) [Outlook & Strategy](index=15&type=section&id=Outlook%20%26%20Strategy) [Outlook](index=15&type=section&id=Outlook) Facing a challenging global economic environment, the Group will accelerate factory automation and enhance cost efficiency, focusing on high-end, green, and intelligent product transformation, expanding high-value-added products and overseas sales channels, and committing to sustainable development for long-term shareholder returns - The core strategy is to **accelerate the application of automation in three factories** to **enhance cost efficiency** and **production efficiency**[40](index=40&type=chunk) - The company will align with industry trends to promote production transformation towards **high-end, green, and intelligent solutions**[40](index=40&type=chunk) - Future growth drivers include developing **high-end fluoropolymer production lines** in new land parcels in Jiangxi and continuing to expand **overseas sales channels**[41](index=41&type=chunk) - The Group will continue to **invest in R&D for high-value-added chemical products**, **strengthen its product portfolio**, and promote various **sustainable development initiatives**, such as optimizing energy efficiency, water conservation, and expanding green energy applications[41](index=41&type=chunk) [Corporate Governance & Others](index=18&type=section&id=Corporate%20Governance%20%26%20Others) [Human Resources](index=18&type=section&id=Human%20Resources) As of June 30, 2025, the Group had approximately 1,900 employees, maintaining competitive remuneration and good employee relations without significant labor disputes or recruitment difficulties - As of June 30, 2025, the Group had **approximately 1,900 employees**, maintaining **good labor relations** without any **operational disruptions** due to labor disputes[51](index=51&type=chunk) [Corporate Governance & Audit](index=18&type=section&id=Corporate%20Governance%20%26%20Audit) The company consistently complied with the Corporate Governance Code, and the Audit Committee reviewed the interim results, discussing accounting principles, internal controls, and financial reporting with management without disagreement - The Board believes that the company has **consistently complied with the provisions of the Corporate Governance Code** during the reporting period[53](index=53&type=chunk) - The Audit Committee has **reviewed the Group's interim results** and had **no disagreements**[36](index=36&type=chunk)[54](index=54&type=chunk)

[Performance Summary](index=4&type=section&id=Performance%20Summary) The company's reported profit attributable to shareholders significantly declined, while underlying and recurring underlying profits remained relatively stable, reflecting core business resilience Summary of Financial Performance for H1 2025 | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | HKD 45.774 billion | HKD 39.563 billion | +16% | | **Operating Profit** | HKD 1.861 billion | HKD 4.945 billion | -62% | | **Profit Attributable to Company Shareholders (as per financial statements)** | HKD 0.815 billion | HKD 3.914 billion | -79% | | **Underlying Profit** | HKD 5.476 billion | HKD 5.576 billion | -2% | | **Recurring Underlying Profit** | HKD 4.712 billion | HKD 4.762 billion | -1% | | **Cash from Operations** | HKD 8.438 billion | HKD 5.307 billion | +59% | | **Net Debt** | HKD 71.337 billion | HKD 63.479 billion | +12% | | **Net Debt to Capital Ratio** | 22.7% | 19.8% | +2.9 percentage points | | **Dividend Per Share ('A' Shares)** | HKD 1.30 | HKD 1.25 | +4% | - Profit attributable to company shareholders significantly decreased by **79%**, primarily due to an expanded fair value loss on investment properties[10](index=10&type=chunk) - However, underlying profit and recurring underlying profit, which better reflect core operating performance, only slightly decreased by **2%** and **1%** respectively, indicating the Group's core business performance remained relatively stable[10](index=10&type=chunk)[12](index=12&type=chunk) [Chairman's Statement](index=5&type=section&id=Chairman%27s%20Statement) The Group's overall business performance in H1 2025 was stable, with underlying profit attributable to shareholders slightly down [Overall Performance](index=5&type=section&id=Chairman%27s%20Statement-Overall%20Performance) The Group's overall business performance in H1 2025 was stable, with underlying profit attributable to shareholders at HKD 5.476 billion, a slight 2% year-on-year decrease; the Aviation Division performed well, Property benefited from asset sales, while Beverages faced challenges Profit Overview for H1 2025 | Profit Type | Amount (HKD) | Year-on-Year Change | | :--- | :--- | :--- | | **Underlying Profit Attributable to Shareholders** | 5.476 billion | -2% | | **Recurring Underlying Profit** | 4.712 billion | -1% | | **Consolidated Profit Attributable to Shareholders** | 0.815 billion | -79% | - The fair value loss on investment properties expanded to **HKD 4.664 billion** in the reporting period (compared to HKD 0.877 billion in the prior period), which was the primary reason for the significant decrease in consolidated profit attributable to shareholders[12](index=12&type=chunk) - This change is non-cash in nature and does not affect cash flow or underlying profit[12](index=12&type=chunk) [Strategic Developments](index=5&type=section&id=Chairman%27s%20Statement-Strategic%20Developments) The Group continues to advance strategic initiatives in core markets across Hong Kong, Mainland China, and Southeast Asia - Swire Properties' **HKD 100 billion** investment plan is progressing well, with **67%** of funds already deployed, focusing on Hong Kong, Mainland China, and Southeast Asia markets[14](index=14&type=chunk) - Swire Properties completed the sale of its retail and car park interests in Brickell City Centre, Miami, USA, with proceeds supporting its **HKD 100 billion** investment plan[16](index=16&type=chunk) - Swire Coca-Cola proposed a spin-off and separate listing of its Thailand business (ThaiNamthip) and submitted an application in May 2025 for listing on the Stock Exchange of Thailand[17](index=17&type=chunk) - Cathay Group acquired an additional **14 Boeing 777-9** aircraft, bringing its total investment to well over **HKD 100 billion**, to strengthen Hong Kong's position as an international aviation hub[18](index=18&type=chunk) [Business Performance](index=7&type=section&id=Chairman%27s%20Statement-Business%20Performance) Business unit performance varied, with Property's recurring underlying profit slightly down, Beverages' recurring profit declining, and Aviation showing strong performance - Property Division: Recurring underlying profit was **HKD 2.829 billion**, a **2%** year-on-year decrease, primarily due to reduced office rental income in Hong Kong[19](index=19&type=chunk) - Beverages Division: Recurring profit was **HKD 0.861 billion**, mainly impacted by weak consumer sentiment and new expenses from capacity enhancement projects in Vietnam and Taiwan[20](index=20&type=chunk) - Aviation Division: Cathay Group's profit was **HKD 3.651 billion**, showing stable performance; HAECO Group's recurring profit increased to **HKD 0.561 billion**, demonstrating strong performance[22](index=22&type=chunk) [Financial Strength and Shareholder Returns](index=8&type=section&id=Chairman%27s%20Statement-Financial%20Strength%20and%20Shareholder%20Returns) The Group maintains a robust financial position with HKD 52.6 billion in available liquidity and a net debt to capital ratio of 22.7% Financial Position as of June 30, 2025 | Indicator | Value | | :--- | :--- | | **Available Liquidity** | HKD 52.6 billion | | **Net Debt to Capital Ratio** | 22.7% | | **Weighted Average Cost of Debt** | 3.7% (lower than end of 2024) | - A first interim dividend of **HKD 1.30** per 'A' share and **HKD 0.26** per 'B' share was declared, representing a **4%** year-on-year increase[23](index=23&type=chunk) - The **HKD 6 billion** share repurchase program has been terminated, with **HKD 1.842 billion** in shares repurchased in H1, bringing the total repurchased under the program to **HKD 5.9 billion**[24](index=24&type=chunk) [Outlook](index=9&type=section&id=Chairman%27s%20Statement-Outlook) The Group anticipates varying opportunities and challenges across its business segments in the future - Swire Properties: The Hong Kong office market is expected to remain weak, but the Mainland China retail market is projected to gradually accelerate development[26](index=26&type=chunk) - Swire Coca-Cola: Weak domestic consumption in Mainland China poses challenges, and some Southeast Asian markets (e.g., Thailand) also face economic and policy pressures[26](index=26&type=chunk) - Cathay Group and HAECO Group: Cathay will continue to invest in fleet expansion, while demand for HAECO's base maintenance and engine overhaul services is expected to remain stable[27](index=27&type=chunk) [Business Review](index=10&type=section&id=Business%20Review) This section provides a detailed review of the performance of the Group's various business divisions [Property Division](index=10&type=section&id=Property%20Division) The Property Division's attributable underlying profit increased to HKD 3.662 billion in H1, boosted by a one-off gain from the sale of Brickell City Centre interests, while recurring underlying profit slightly declined due to a weak Hong Kong office market Property Division H1 2025 Results | Indicator | Amount (HKD million) | Year-on-Year Change | | :--- | :--- | :--- | | **Total Revenue** | 8,723 | +20% | | **Total Operating Profit** | 367 | -89% | | **Profit/(Loss) Attributable to Swire Pacific** | (999) | Turned from profit to loss | | **Underlying Profit Attributable to Swire Pacific** | 3,662 | +17% | | **Recurring Underlying Profit Attributable to Swire Pacific** | 2,829 | -2% | - The increase in attributable underlying profit primarily stemmed from the gain on the sale of Brickell City Centre shopping mall and related land in the USA[39](index=39&type=chunk) - The **HKD 100 billion** investment plan has committed approximately **HKD 67 billion**, with key projects including Hyde Park in Hong Kong, Taikoo Li Xi'an, and Taikoo Source Lujiazui in Shanghai[42](index=42&type=chunk) [Investment Properties](index=15&type=section&id=Property%20Division-Investment%20Properties) Investment property performance varied, with Hong Kong office and retail properties facing challenges, while Mainland China retail properties showed stable performance - Hong Kong office portfolio rental income totaled **HKD 2.455 billion**, a **5%** year-on-year decrease; the office portfolio occupancy rate was **88%** at period-end[48](index=48&type=chunk) - Hong Kong retail property portfolio rental income totaled **HKD 1.169 billion**, a **2%** year-on-year decrease; retail sales at Pacific Place and Cityplaza increased by **1%** and **2%** respectively[49](index=49&type=chunk) - Mainland China retail property rental income increased by **2%** to **HKD 2.272 billion**; retail sales at Taikoo Li Sanlitun in Beijing grew by **7%**, and HKRI Taikoo Hui in Shanghai grew by **14%**[56](index=56&type=chunk)[57](index=57&type=chunk)[59](index=59&type=chunk) [Hotels](index=20&type=section&id=Property%20Division-Hotels) Hotel business performance was mixed, with slower recovery in Hong Kong and varied results in Mainland China, while US-managed hotels performed strongly - Hotels managed by Swire Properties (including restaurants and hotel management offices) recorded a pre-depreciation operating profit of **HKD 25 million** in H1 2025, consistent with H1 2024[72](index=72&type=chunk) - Swire Hotels is expanding its footprint, with plans to open five new hotels in Tokyo, Japan, and Beijing, Shenzhen, Shanghai, and Xi'an in Mainland China[72](index=72&type=chunk) [Property Trading](index=21&type=section&id=Property%20Division-Property%20Trading) Property trading operations are active across Hong Kong, Mainland China, and Southeast Asia - In Hong Kong, **278** out of **432** units at the "The Southside" project in Wong Chuk Hang were sold as of August 1, 2025[76](index=76&type=chunk) - In Shanghai, Mainland China, **105** out of **107** units across two batches of "Taikoo Source Lujiazui Residences" were pre-sold as of August 1, 2025, with cumulative sales reaching **RMB 5.93 billion**[78](index=78&type=chunk)[43](index=43&type=chunk) [Beverages Division](index=24&type=section&id=Beverages%20Division) Swire Coca-Cola's recurring attributable profit for H1 2025 slightly decreased by 2% to HKD 0.861 billion, impacted by weak consumer momentum and new expenses from capacity enhancement projects, while total revenue significantly increased by 25% due to the acquisition of the Thailand business Beverages Division H1 2025 Results | Indicator | Amount (HKD million) | Year-on-Year Change | | :--- | :--- | :--- | | **Revenue** | 21,515 | +25% | | **EBITDA** | 2,525 | +16% | | **Attributable Profit (excluding non-recurring items)** | 861 | -2% | | **Attributable Profit (including non-recurring items)** | 803 | -9% | - Total revenue (including Swire Coca-Cola Shanghai Shenmei) increased by **25%**, and sales volume increased by **20%**, primarily due to the consolidation of TNCC (Thailand business) since October 2024[95](index=95&type=chunk) - By region, Mainland China business profit grew by **8%**, while Hong Kong, Taiwan, Vietnam, and Cambodia businesses all recorded profit declines[89](index=89&type=chunk)[98](index=98&type=chunk)[101](index=101&type=chunk)[103](index=103&type=chunk)[106](index=106&type=chunk) [Mainland China](index=26&type=section&id=Beverages%20Division-Mainland%20China) Mainland China operations recorded an attributable profit of HKD 0.588 billion, an 8% year-on-year increase, driven by a 3% revenue growth and 1% sales volume increase in local currency terms - Attributable profit was **HKD 0.588 billion**, an **8%** year-on-year increase[98](index=98&type=chunk) - Total sales volume increased by **1%**, and revenue in local currency terms increased by **3%**[98](index=98&type=chunk)[99](index=99&type=chunk) [Hong Kong, Taiwan, Southeast Asia](index=27&type=section&id=Beverages%20Division-Hong%20Kong%2C%20Taiwan%2C%20Southeast%20Asia) Hong Kong, Taiwan, and Southeast Asian markets faced challenges, with profit declines in Hong Kong, Taiwan, Vietnam, and Cambodia due to various factors including lower sales, production facility upgrades, and currency depreciation - Hong Kong: Attributable profit decreased by **15%** to **HKD 61 million**[101](index=101&type=chunk) - Taiwan: Attributable profit decreased by **26%** to **HKD 43 million**[103](index=103&type=chunk) - Vietnam and Cambodia: Attributable profit significantly decreased by **31%** to **HKD 113 million**[106](index=106&type=chunk) - Thailand and Laos: Attributable profit, excluding non-recurring items, was **HKD 105 million**, a **13%** year-on-year decrease[108](index=108&type=chunk) [Aviation Division](index=29&type=section&id=Aviation%20Division) The Aviation Division recorded an attributable profit of HKD 2.233 billion in H1 2025, a 7% year-on-year increase, driven by stable performance from Cathay Group and strong growth from HAECO Group due to increased maintenance demand Aviation Division H1 2025 Results | Segment | Attributable Profit (HKD million) | Year-on-Year Change | | :--- | :--- | :--- | | **Cathay Group** | 1,642 | +1% | | **HAECO Group** | 599 | 0% | | **Total Aviation Division** | 2,233 | +7% | [Cathay Group](index=30&type=section&id=Aviation%20Division-Cathay%20Group) Cathay Group delivered stable performance in H1, recording a profit of HKD 3.651 billion, driven by a 14% increase in Cathay Pacific's passenger revenue and a 28% rise in passenger numbers - Cathay Pacific's passenger revenue was **HKD 34.208 billion**, a **14.0%** year-on-year increase; Revenue Passenger Kilometers (RPK) increased by **30.0%**[115](index=115&type=chunk)[119](index=119&type=chunk) - Cathay Cargo revenue was **HKD 11.141 billion**, a **2.2%** year-on-year increase; cargo carried increased by **11.4%**[115](index=115&type=chunk)[121](index=121&type=chunk) - As of June 30, 2025, Cathay Group's fleet totaled **234** aircraft, with an additional **93** aircraft on order[124](index=124&type=chunk)[125](index=125&type=chunk) [Hong Kong Aircraft Engineering Company (HAECO) Group](index=34&type=section&id=Aviation%20Division-Hong%20Kong%20Aircraft%20Engineering%20Company%20%28HAECO%29%20Group) HAECO Group demonstrated strong performance in H1, with recurring attributable profit significantly increasing to HKD 0.561 billion, driven by increased demand for base maintenance and engine overhaul services HAECO Group H1 2025 Results | Indicator | Amount (HKD million) | Year-on-Year Change | | :--- | :--- | :--- | | **Total Revenue** | 11,201 | +7% | | **Attributable Profit (excluding non-recurring items)** | 561 | +40% | | **Attributable Profit (including non-recurring items)** | 599 | 0% | - Base maintenance services recorded **5.26 million** man-hours sold, a **6%** year-on-year increase[134](index=134&type=chunk) - Engine business attributable profit was **HKD 375 million**, a **9%** year-on-year increase, primarily driven by strong demand for engine overhaul services[141](index=141&type=chunk) [Healthcare](index=37&type=section&id=Healthcare) The Healthcare business remains in its early development stage, recording an attributable loss of HKD 0.117 billion in H1 2025, a narrowing from the HKD 0.132 billion loss in the prior period - In H1 2025, the Healthcare business recorded an attributable loss of **HKD 117 million**, a narrowing from the **HKD 132 million** loss in the prior period[151](index=151&type=chunk) - The Group has invested **HKD 3.1 billion** in the healthcare sector (including committed investments) and is actively seeking expansion opportunities in Mainland China and Southeast Asia[152](index=152&type=chunk) [Trading and Industrial](index=38&type=section&id=Trading%20and%20Industrial) The Trading and Industrial business recorded an attributable profit of HKD 41 million in H1, a significant 73% decrease from HKD 152 million in the prior period Trading and Industrial Division H1 2025 Results | Segment | Attributable Profit/(Loss) (HKD million) | Prior Period (HKD million) | | :--- | :--- | :--- | | **Swire Resources** | 17 | 47 | | **Swire Motors** | 37 | 86 | | **Swire Foods** | (16) | 5 | | **Swire Waste Management** | 7 | 22 | | **Total** | 41 | 152 | [Financial Review](index=40&type=section&id=Financial%20Review) This section provides a comprehensive review of the Group's financial performance and position [Underlying Profit and Recurring Underlying Profit](index=40&type=section&id=Underlying%20Profit%20and%20Recurring%20Underlying%20Profit) This section reconciles profit as reported in the financial statements with underlying profit and recurring underlying profit, showing that recurring underlying profit remained largely stable year-on-year Reconciliation of Profit Attributable to Company Shareholders to Underlying Profit (H1 2025) | Item | Amount (HKD million) | | :--- | :--- | | **Profit Attributable to Company Shareholders** | 815 | | Add: Fair value loss on investment properties | 4,674 | | Add: Realized fair value gain on disposal of investment property interests | 1,001 | | Less: Fair value changes attributable to non-controlling interests, etc. | (944) | | Other adjustments | (70) | | **Underlying Profit Attributable to Company Shareholders** | **5,476** | Recurring Underlying Profit by Division (H1 2025) | Division | Amount (HKD million) | | :--- | :--- | | Property | 2,829 | | Beverages | 861 | | Aviation | 2,195 | | Trading and Industrial | 41 | | Head Office, Healthcare and Other | (1,214) | | **Total Recurring Underlying Profit** | **4,712** | [Financing](index=42&type=section&id=Financing) This section details the Group's financing activities, cash flow, and debt position [Cash Flow and Debt Position](index=42&type=section&id=Cash%20Flow%20and%20Debt%20Position) The Group's cash flow from operations significantly increased by 59% to HKD 8.438 billion, with net cash inflow before financing of HKD 6.161 billion, while net debt increased to HKD 71.337 billion - Cash from operations was **HKD 8.438 billion**, a **59%** year-on-year increase; cash before financing turned from a net outflow of **HKD 1.965 billion** in the prior period to a net inflow of **HKD 6.161 billion**[168](index=168&type=chunk) Debt Overview | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Borrowings and Lease Liabilities** | HKD 103.840 billion | HKD 96.612 billion | | **Weighted Average Debt Maturity** | 3.2 years | 2.7 years | | **Weighted Average Cost of Debt** | 3.7% | 4.0% | | **Fixed Rate Debt Proportion** | 66% | 64% | - If net debt of joint ventures and associates is included, the Group's net debt to capital ratio would increase from **22.7%** to **28.8%**[180](index=180&type=chunk) [Condensed Interim Financial Statements](index=48&type=section&id=Condensed%20Interim%20Financial%20Statements) This section presents the Group's condensed interim financial statements for the period [Consolidated Income Statement](index=48&type=section&id=Consolidated%20Income%20Statement) For the six months ended June 30, 2025, the Group recorded revenue of HKD 45.774 billion, a 16% year-on-year increase, but operating profit significantly decreased to HKD 1.861 billion due to a HKD 3.884 billion fair value loss on investment properties, resulting in a 79% decrease in profit attributable to company shareholders [Consolidated Statement of Comprehensive Income](index=49&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) Profit for the period was HKD 0.971 billion, and after including other comprehensive income (primarily net exchange differences gain) of HKD 2.668 billion, total comprehensive income for the period was HKD 3.639 billion, with HKD 2.629 billion attributable to company shareholders [Consolidated Statement of Financial Position](index=50&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets were HKD 480.033 billion, total liabilities were HKD 165.943 billion, and net assets (total equity) were HKD 314.090 billion, a slight decrease from HKD 318.667 billion at the end of 2024, with HKD 257.884 billion attributable to company shareholders [Consolidated Cash Flow Statement](index=51&type=section&id=Consolidated%20Cash%20Flow%20Statement) Net cash generated from operating activities was HKD 7.653 billion. Net cash used in investing activities was HKD 1.492 billion, primarily due to HKD 3.908 billion cash inflow from disposal of subsidiaries. Net cash used in financing activities was HKD 1.897 billion, mainly for share repurchases and dividend payments, resulting in an increase in cash and cash equivalents to HKD 24.598 billion at period-end [Consolidated Statement of Changes in Equity](index=52&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) As of January 1, 2025, equity attributable to company shareholders was HKD 258.300 billion, which decreased to HKD 257.884 billion as of June 30, 2025, after accounting for total comprehensive income of HKD 2.629 billion, share repurchases of HKD 1.847 billion, and dividends paid of HKD 2.849 billion [Notes to the Condensed Interim Financial Statements](index=53&type=section&id=Notes%20to%20the%20Condensed%20Interim%20Financial%20Statements) This section provides detailed notes supporting the condensed interim financial statements [Note 1: Segment Information](index=53&type=section&id=Note%201%3A%20Segment%20Information) This note details the revenue, operating profit, assets, and liabilities for the Group's major business segments, including Property, Beverages, Aviation, and Trading and Industrial Company Shareholders' Attributable Underlying Profit by Segment for H1 2025 | Segment | Amount (HKD million) | | :--- | :--- | | Property | 3,662 | | Beverages | 803 | | Aviation | 2,233 | | Trading and Industrial | 41 | | Head Office, Healthcare and Other | (1,263) | | **Total** | **5,476** | [Note 10: Dividends](index=62&type=section&id=Note%2010%3A%20Dividends) The Board of Directors declared a first interim dividend for 2025 of HKD 1.30 per 'A' share and HKD 0.26 per 'B' share, totaling HKD 1.753 billion, payable on October 10, 2025 - A first interim dividend of **HKD 1.30** per 'A' share and **HKD 0.26** per 'B' share was declared[215](index=215&type=chunk)[216](index=216&type=chunk) [Note 13: Investment Properties](index=64&type=section&id=Note%2013%3A%20Investment%20Properties) As of June 30, 2025, the carrying value of the Group's investment properties was HKD 268.861 billion, a decrease from HKD 270.950 billion at the beginning of the year, primarily due to a net fair value loss of HKD 3.884 billion and the impact of disposals and transfers - A net fair value loss on investment properties of **HKD 3.884 billion** was recorded during the period[222](index=222&type=chunk) [Note 25: Share Capital](index=71&type=section&id=Note%2025%3A%20Share%20Capital) During the period, the company repurchased and cancelled 25,119,000 'A' shares and 15,402,500 'B' shares on the Stock Exchange under its share repurchase program, for a total consideration of HKD 1.842 billion - In H1, **25,119,000** 'A' shares and **15,402,500** 'B' shares were repurchased for a total of **HKD 1.842 billion**[241](index=241&type=chunk) [Additional Information](index=77&type=section&id=Additional%20Information) This section provides supplementary information relevant to the report [Major Shareholders](index=79&type=section&id=Major%20Shareholders) As of June 30, 2025, John Swire & Sons Limited held 56.85% of the company's 'A' shares and 74.83% of its 'B' shares, collectively owning 64.45% of the share capital and 70.97% of the voting rights - John Swire & Sons Limited holds **64.45%** of the company's share capital and controls **70.97%** of the voting rights[267](index=267&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分內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 太古股份有限公司 (於香港註冊成立的有限公司) (股份代號：00019 及 00087) 二零二五年中期業績 太古股份有限公司二零二五年中期報告 | 目錄 | | | --- | --- | | 企業宣言 | 1 | | 表現摘要 | 2 | | 主席報告 | 3 | | 業務評述 | 8 | | 財務評述 | 38 | | 融資 | 40 | | 簡明中期財務報表的審閲報告 | 45 | | 簡明中期財務報表 | 46 | | 簡明中期財務報表附註 | 51 | | 附加資料 | 75 | | 詞彙 | 78 | | 財務日誌及投資者資訊 | 80 | 太古股份有限公司二零二五年中期報告 企業宣言 永續發展 長遠增長 太古公司是基地設於香港的國際綜合企業，其多元化的業務在市場擁有領先地位。公司在大中 華區歷史悠久，「太古」的名字在這地區享譽超過一百五十年。 我們的目標是透過長遠地創造理想的權益回報以實 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或 完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚賴該 等內容而引致的任何損失承擔任何責任。 太古地產有限公司 （於香港註冊成立的有限公司） （股份代號：01972） 二零二五年中期業績 二零二五年中期業績 目錄 | | 頁 | | --- | --- | | 財務撮要 | 1 | | 主席報告 | 2 | | 行政總裁報告 | 4 | | 業務評述 | 8 | | 融資 | 38 | | 簡明中期財務報表的審閱報告 | 44 | | 簡明中期財務報表 | 45 | | 簡明中期財務報表附註 | 50 | | 附加資料 | 70 | | 詞彙 | 73 | | 財務日誌及投資者資訊 | 74 | 二零二五年中期業績 財 務 撮 要 | | | 截至六月三十日止六個月 | | | | --- | --- | --- | --- | --- | | | | 二零二五年 | 二零二四年 | | | | 註 | 港幣百萬元 | 港幣百萬元 | 變幅 | | 業績 | | | | | | 收入 | | 8 ...

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布之內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 會 就 本 公 布 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。 * （於開曼群島註冊成 立 及其成員責任為有限） （股 份 編 號：2314） 中期業績公布 截 至2025年6月30日 止6個 月 財務摘要 * 僅供識別 – 1 – － 收 入122億 港 元，比 去 年 同 期 下 跌2.2%。 – 期內盈利8.11億 港 元，比 去 年 同 期 上 升0.7%。 － 每股盈利18.88港 仙。 － 宣派中期股息每股6.6港 仙。 中期業績 理文造紙有限公司（「本 公 司」）董 事 會 欣 然 公 布，本 公 司 及 其 附 屬 公 司（「本 集 團」） 截 至2025年6月30日 止6個 月 未 經 審 核 簡 明 綜 合 業 績，連 同 比 較 數 字 如 下： 簡明綜合損益及其他全面收益表 截 至2025年6月30日 止6個 月 | | | | | | | | | | | | | | | | | 202 ...

TSX/NYSE/PSE: MFC SEHK: 945 C$ unless otherwise stated 宏利公佈 2025 年第二季度業績 多倫多 – 2025 年 8 月 6 日 – 宏利金融有限公司（「宏利」或「本公司」）宣佈截至 2025 年 6 月 30 日的第二季度 業績，期間新造業務增長勢頭持續強勁，最具潛力業務的盈利同樣錄得強勁增長。1 2025 年第二季度業績的主要重點包括： 9。該交易預計將於 2025 年第四季度完成 10 「我們的第二季度業績突顯了我們全球業務的實力與韌性，我們繼續在多元化的業務組合中實現優質增長。公司 所有三個保險業務部的新造業務 CSM 同比增長均超過 30%，清晰印證了我們的發展勢頭與未來盈利潛力。尤 其是亞洲持續錄得強勁的 APE 銷售額，其新造業務價值利潤率亦錄得環比增長。6 旗下全球財富與資產管理業 務進一步擴大其核心 EBITDA 利潤率 4，核心盈利較去年同期錄得雙位數增長 7。 「能夠領導宏利是我莫大的榮幸，整個團隊所展現出的熱枕與卓越績效著實令人鼓舞。當下，我們已打好堅實基 礎，並已準備就緒，以清晰理念和目標，應對多變的宏觀經濟形勢。當我們攜手開 ...

[Annual Performance Overview](index=1&type=section&id=Annual%20Performance%20Overview) [Financial Summary](index=1&type=section&id=Financial%20Summary) The company's FY2024 revenue decreased 13.3% YoY to HK$31.5 million and gross profit fell 10.5% to HK$18.2 million, yet the annual loss narrowed significantly by 65.5% to HK$12.5 million due to cost controls, with the Board resolving not to declare a final dividend Key Financial Metrics for FY2024 | Metric | 2024 (HK$ thousands) | 2023 (HK$ thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 31,500 | 36,332 | -13.3% | | Gross Profit | 18,200 | 20,341 | -10.5% | | Loss for the year | 12,500 | 36,238 | -65.5% | | Loss for the year attributable to equity holders of the Company | 12,500 | 35,934 | -65.2% | - The Board of Directors resolved not to recommend the payment of any dividend for the year ended December 31, 2024[3](index=3&type=chunk) [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) The financial statements show a significant reduction in the 2024 loss, driven by lower administrative expenses and a reversal of impairment on trade receivables, while total assets and equity halved due to a sharp decline in the value of equity instruments at FVOCI [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) The company's 2024 loss narrowed to HK$12.5 million from HK$36.2 million in the prior year, mainly due to reduced administrative expenses and a reversal of impairment on trade receivables, with basic loss per share improving to 2.75 HK cents Key Items from the Consolidated Statement of Profit or Loss (For the year ended December 31) | Item (HK$ thousands) | 2024 | 2023 | Reason for Change | | :--- | :--- | :--- | :--- | | Revenue | 31,515 | 36,332 | Cessation of non-advertising businesses | | Gross Profit | 18,202 | 20,341 | Decreased revenue | | Administrative expenses | (23,524) | (34,840) | Reduced staff costs | | Impairment (reversal)/losses on trade receivables | 1,743 | (6,162) | Reversal of impairment | | **Loss for the year** | **(12,494)** | **(36,238)** | **Significant narrowing of loss** | | Basic loss per share | (2.75 HK cents) | (7.90 HK cents) | - | [Consolidated Statement of Financial Position](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) Total assets as of year-end 2024 decreased by 47% to HK$65.8 million, primarily driven by a sharp fall in 'equity instruments at FVOCI' within non-current assets, causing net assets to decline from HK$114.3 million to HK$52.3 million Key Items from the Consolidated Statement of Financial Position (As at December 31) | Item (HK$ thousands) | 2024 | 2023 | | :--- | :--- | :--- | | **Non-current assets** | **22,852** | **84,927** | | Including: Equity instruments at FVOCI | 128 | 59,625 | | **Current assets** | **42,989** | **39,371** | | Including: Cash and cash equivalents | 37,042 | 30,081 | | **Total assets** | **65,841** | **124,298** | | **Net assets** | **52,268** | **114,305** | | **Total equity** | **52,268** | **114,305** | [Notes to the Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) [General Information and Accounting Policies](index=5&type=section&id=General%20Information%20and%20Accounting%20Policies) The company is an investment holding company engaged in advertising, healthcare products, e-commerce, and IP development, with financial statements prepared under HKFRSs and the adoption of new standards having no material impact - The Group is principally engaged in (i) provision of advertising services; (ii) sales of medical and healthcare products; (iii) e-commerce business; and (iv) provision of intellectual property (IP) development and design services[9](index=9&type=chunk) - The application of new and revised Hong Kong Financial Reporting Standards in the current year has had no material effect on the Group's financial performance and position[11](index=11&type=chunk) [Segment Information](index=6&type=section&id=Segment%20Information) The company's business structure changed significantly in 2024, with all revenue of HK$31.5 million generated from the advertising services segment, reflecting a strategic focus shift away from other now-dormant segments Segment Revenue Analysis (HK$ thousands) | Business Segment | 2024 Revenue | 2023 Revenue | | :--- | :--- | :--- | | Advertising services | 31,515 | 32,483 | | Sales of medical and healthcare products | – | 373 | | E-commerce business | – | 2,900 | | IP development and design services | – | 576 | | **Total** | **31,515** | **36,332** | - In 2024, the advertising services segment reported a profit of HK$1.3 million, while the e-commerce and IP development segments recorded minor losses[15](index=15&type=chunk) - Geographically, revenue in 2024 was primarily from Hong Kong (HK$23.9 million) and Mainland China (HK$7.6 million), whereas all 2023 revenue was from Hong Kong[17](index=17&type=chunk) [Notes on Key Financial Items](index=10&type=section&id=Notes%20on%20Key%20Financial%20Items) This section details financial data, including a loss of approximately HK$186,000 from the disposal of three subsidiaries in 2024, higher finance costs from lease liabilities, and a decrease in impairment provisions for trade receivables, with no dividend recommended - In 2024, the Group completed the disposal of the entire equity interests in three subsidiaries, Glory Novel Limited, Beyond Noble Holdings Limited, and Smart Path Enterprises Limited, resulting in a total loss of approximately HK$186,000[22](index=22&type=chunk)[51](index=51&type=chunk) - The impairment provision for trade receivables decreased from HK$4.6 million in 2023 to HK$2.9 million in 2024, with a reversal of impairment loss of HK$1.7 million during the year[30](index=30&type=chunk) - The Board does not recommend the payment of a dividend for the years ended December 31, 2024 and 2023[27](index=27&type=chunk) [Independent Auditor's Report](index=15&type=section&id=Independent%20Auditor's%20Report) The independent auditor issued a Disclaimer of Opinion on the consolidated financial statements for the year ended December 31, 2024, due to the inability to obtain sufficient appropriate audit evidence regarding key items, indicating material uncertainty about the report's reliability [Basis for Disclaimer of Opinion](index=15&type=section&id=Basis%20for%20Disclaimer%20of%20Opinion) The disclaimer is based on scope limitations concerning the investment in an associate, the unverifiable opening balances and comparative figures from the prior year's disclaimer, and the unconfirmed loss on disposal of subsidiaries due to lack of access to records - The auditor issued a **"Disclaimer of Opinion"** on the company's consolidated financial statements for the year 2024[34](index=34&type=chunk) - **Scope Limitation on Interest in an Associate**: The auditor was unable to obtain the audited financial statements of the associate, Aolorry, and thus could not determine the share of results or any potential impairment[35](index=35&type=chunk)[36](index=36&type=chunk) - **Issue with Opening Balances and Corresponding Figures**: Due to the disclaimer of opinion on the 2023 financial statements, the opening balances and comparative figures for 2024 could not be verified[38](index=38&type=chunk) - **Scope Limitation on Loss on Disposal of Subsidiaries**: The auditor could not obtain the books and records of the disposed subsidiaries (Jingji Tianzi and Haotuo), preventing confirmation of the accuracy of the reported loss on disposal[39](index=39&type=chunk) [Management Discussion and Analysis](index=17&type=section&id=Management%20Discussion%20and%20Analysis) [Financial Review](index=17&type=section&id=Financial%20Review) Total revenue in 2024 fell 13.3% to HK$31.5 million due to the cessation of non-advertising businesses, but the pre-tax loss narrowed by 65.5% to HK$12.5 million, driven by a 32.5% reduction in administrative expenses and a stable gross margin of 57.8% - Revenue decreased by **13.3% to HK$31.5 million**, primarily due to the cessation of businesses outside the advertising segment (especially the e-commerce segment)[41](index=41&type=chunk) Gross Profit and Gross Profit Margin | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Gross Profit (HK$ thousands) | 18,202 | 20,341 | | Gross Profit Margin (%) | 57.8% | 56.0% | - Administrative expenses decreased by **32.5% from HK$34.8 million to HK$23.5 million**, mainly due to reduced staff costs[50](index=50&type=chunk) - Loss before income tax decreased by **65.5% from HK$36.2 million to HK$12.5 million**[53](index=53&type=chunk) [Business Review](index=19&type=section&id=Business%20Review) The core advertising business showed resilience amid economic challenges, with the company expanding into Mainland China to offset a 26.5% decline in its Hong Kong Recruit magazine revenue, while other business segments were discontinued due to operational issues - The core advertising business, Recruit magazine, faced structural challenges, with advertising revenue **decreasing by 26.5% year-on-year to HK$23.9 million**[56](index=56&type=chunk) - The company actively expanded its digital advertising business in Mainland China, with subsidiary Shenzhen Lvqi contributing approximately **HK$5.1 million in revenue** through platforms like Douyin, and cooperation with affiliate Shenzhen Jingji bringing in about **HK$2.5 million**[57](index=57&type=chunk)[58](index=58&type=chunk) - Due to the failure of a former executive director to properly hand over documents, the medical and healthcare products, e-commerce, and IP development and design services segments have ceased developing new business and are being gradually deconsolidated or sold[59](index=59&type=chunk) [Future Prospects](index=21&type=section&id=Future%20Prospects) The company will focus on its core advertising competencies by strengthening its Hong Kong multi-platform business, expanding digital advertising solutions in Mainland China, and vertically integrating its event management services with a new factory - Consolidate the core advertising business by leveraging Recruit magazine's multi-platform reach across print, website, app, and social media[62](index=62&type=chunk) - Actively explore advertising opportunities in Mainland China, particularly by providing advertising solutions for clients on digital platforms like Douyin[62](index=62&type=chunk) - Expand promotion services and event management to Mainland China and establish an in-house factory (expected to operate in July 2025) to produce event props, achieving vertical integration and improving cost-effectiveness[64](index=64&type=chunk)[65](index=65&type=chunk) [Liquidity and Financial Resources](index=22&type=section&id=Liquidity%20and%20Financial%20Resources) The Group maintained a sound financial position at year-end 2024 with net current assets of approximately HK$30.7 million, a current ratio of 4.5, increased cash balances of HK$37.0 million, and no bank borrowings Liquidity Ratios (As at December 31) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Net Current Assets (HK$) | ~30,700,000 | ~30,700,000 | | Current Ratio | 4.5 | 4.5 | | Cash and Bank Balances (HK$) | ~37,000,000 | ~30,000,000 | | Bank Loans and Other Borrowings | None | None | [Other Important Matters](index=23&type=section&id=Other%20Important%20Matters) [Events After the Reporting Period](index=23&type=section&id=Events%20After%20the%20Reporting%20Period) Subsequent to the reporting period, the company completed the disposal of its entire interest in associate Aolorry for HK$9.95 million and is currently involved in several legal proceedings, including actions concerning a former director - In May 2025, the company disposed of its entire investment interest in its associate, Aolorry, for a consideration of **HK$9.95 million**[72](index=72&type=chunk) - The company is pursuing legal action against a former director and his controlled entities, seeking damages for breach of fiduciary duties[73](index=73&type=chunk) - A shareholder has filed a lawsuit against the company alleging defamatory statements in a published announcement, which the company is defending[75](index=75&type=chunk) [Material Acquisitions and Disposals](index=24&type=section&id=Material%20Acquisitions%20and%20Disposals) On December 23, 2024, the company entered into agreements to dispose of two subsidiaries, Beyond Noble and Smart Path, for considerations of HK$19,000 and HK$1 respectively - On December 23, 2024, the company agreed to sell the entire issued share capital of Beyond Noble for a consideration of **HK$19,000**[78](index=78&type=chunk) - On the same day, the company agreed to sell the entire issued share capital of Smart Path for a consideration of **HK$1**[78](index=78&type=chunk) [Other Material Events](index=25&type=section&id=Other%20Material%20Events) The company faces significant challenges, including a continued suspension of trading since April 2, 2024, and is working to fulfill the Stock Exchange's resumption guidance by conducting investigations and reviews - Trading in the company's shares has been **suspended on the Stock Exchange since April 2, 2024**, and will remain so until the resumption guidance is fulfilled[81](index=81&type=chunk)[99](index=99&type=chunk) - The Stock Exchange has issued resumption guidance, requiring the company to complete an independent forensic investigation, demonstrate management integrity, conduct an internal control review, and publish all outstanding financial results[83](index=83&type=chunk) - The company changed its auditor in May 2024, appointing BDO Limited as the new auditor[82](index=82&type=chunk)[86](index=86&type=chunk) - The company has engaged independent third parties to conduct an investigation into audit-related matters and an independent review of its internal control procedures to satisfy the resumption guidance[87](index=87&type=chunk) [Corporate Governance](index=27&type=section&id=Corporate%20Governance) The company is committed to maintaining high standards of corporate governance, has complied with the Corporate Governance Code, and its Audit Committee has reviewed the annual results - The company has complied with the applicable code provisions of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules[89](index=89&type=chunk) - The Audit Committee has reviewed the annual results for the year ended December 31, 2024[92](index=92&type=chunk)

Financial Highlights [Financial Highlights](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) For the six months ended June 30, 2024, the company's revenue, gross profit, and loss all decreased year-over-year, with the loss attributable to equity shareholders narrowing by 22.6% **Financial Highlights for H1 2024** | Indicator | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | Approx. HK$13.8 million | Approx. HK$20.2 million | -31.6% | | Gross Profit | Approx. HK$10.9 million | Approx. HK$14.2 million | -23.3% | | Loss for the period | Approx. HK$7.47 million | Approx. HK$9.97 million | -25.0% | | Loss attributable to equity shareholders | Approx. HK$7.47 million | Approx. HK$9.66 million | -22.6% | - The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2024[3](index=3&type=chunk) Consolidated Financial Statements [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) The company recorded revenue of HK$13.8 million in H1 2024, a 31.6% year-over-year decrease, while the loss for the period narrowed by 25.0% to HK$7.47 million **Key Items from the Statement of Profit or Loss (For the six months ended June 30)** | Item (HK$'000) | 2024 (Unaudited) | 2023 (Unaudited) | | :--- | :--- | :--- | | Revenue | 13,829 | 20,223 | | Gross Profit | 10,881 | 14,195 | | Loss before income tax | (7,471) | (9,966) | | Loss for the period | (7,471) | (9,966) | | Loss attributable to equity shareholders of the Company | (7,471) | (9,662) | | Basic and diluted loss per share | (1.64 HK cents) | (2.13 HK cents) | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2024, the company's total assets decreased significantly to HK$73.9 million, while net assets fell to HK$61.4 million primarily due to changes in reserves **Key Items from the Statement of Financial Position** | Item (HK$'000) | As at June 30, 2024 (Unaudited) | As at December 31, 2023 (Audited) | | :--- | :--- | :--- | | Non-current assets | 37,466 | 84,927 | | Current assets | 36,420 | 39,371 | | **Total assets** | **73,886** | **124,298** | | Current liabilities | 10,473 | 8,694 | | Non-current liabilities | 1,967 | 1,299 | | **Total liabilities** | **12,440** | **9,993** | | **Net assets** | **61,446** | **114,305** | | **Total equity** | **61,446** | **114,305** | Notes to the Condensed Consolidated Financial Statements [Corporate Information and Principal Activities](index=6&type=section&id=1.%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) Luzqi Culture Limited is a Bermuda-incorporated investment holding company listed on the Hong Kong Stock Exchange, primarily engaged in advertising, healthcare products, e-commerce, and IP development - The Group is principally engaged in four business segments: (i) provision of advertising services; (ii) sale of medical and healthcare products; (iii) e-commerce; and (iv) provision of intellectual property (IP) development and design services[9](index=9&type=chunk) [Segment Information](index=7&type=section&id=3.%20%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) In H1 2024, all group revenue of HK$13.8 million was generated from the advertising services segment, with other segments reporting no revenue **Segment Revenue (For the six months ended June 30)** | Segment (HK$'000) | 2024 | 2023 | | :--- | :--- | :--- | | Provision of advertising services | 13,829 | 16,950 | | Sale of medical and healthcare products | – | 373 | | E-commerce | – | 2,900 | | Provision of IP development and design services | – | – | | **Total** | **13,829** | **20,223** | - All of the Group's revenue was derived from Hong Kong, with no significant revenue contribution from any single major customer[22](index=22&type=chunk)[24](index=24&type=chunk) [Loss Per Share](index=12&type=section&id=8.%20%E6%AF%8F%E8%82%A1%E8%99%A7%E6%90%8D) For the six months ended June 30, 2024, basic and diluted loss per share narrowed to 1.64 HK cents from 2.13 HK cents in the prior year period **Calculation of Loss Per Share** | Indicator | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Loss attributable to equity shareholders (HK$) | 7,471,000 | 9,662,000 | | Weighted average number of ordinary shares (shares) | 455,534,000 | 454,047,000 | | **Basic and diluted loss per share** | **1.64 HK cents** | **2.13 HK cents** | Management Discussion and Analysis [Financial Review](index=14&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) In H1 2024, the Group's revenue decreased by 31.6% year-over-year to HK$13.8 million, while gross profit margin improved and loss before tax narrowed by 25.0% - The decrease in revenue was mainly due to a decline in advertising business income and the cessation of revenue from other segments like e-commerce[31](index=31&type=chunk) - **Gross profit margin increased** from 70.2% in the prior year period to **78.7%**[36](index=36&type=chunk) - **Administrative expenses decreased by 14.8%** year-over-year, primarily due to lower staff costs[39](index=39&type=chunk) [Business Review](index=16&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) During the period, the Group refocused on its core advertising business, which saw an 18.4% revenue decline, while other segments were suspended and generated no income - Revenue from the core advertising business was approximately **HK$13.8 million, a year-over-year decrease of 18.4%**, mainly due to macroeconomic instability and cautious corporate advertising budgets[42](index=42&type=chunk) - The medical and healthcare products, e-commerce, and IP development segments **recorded zero revenue** during the period due to issues including loss of control over subsidiaries and strategic reviews[33](index=33&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk) - The Group has begun expanding into Mainland China, with its subsidiary entering a business promotion agreement with Shenzhen Kingkey to provide advertising services for real estate projects[44](index=44&type=chunk) [Prospects](index=18&type=section&id=%E5%89%8D%E6%99%AF) The Group will focus on strengthening its core advertising business in Hong Kong while pursuing strategic expansion in Mainland China, including setting up a factory for its promotion business - The Group will consolidate its core competitiveness while seeking strategic expansion opportunities in both Hong Kong and Mainland China[51](index=51&type=chunk) - The Group is actively exploring advertising opportunities in Mainland China, particularly on digital platforms like Douyin[52](index=52&type=chunk) - The Group plans to expand its promotion services and event management business to Mainland China and is establishing its own factory, expected to commence operations in July 2025[54](index=54&type=chunk) [Liquidity and Financial Resources](index=19&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E6%94%BF%E8%B3%87%E6%BA%90) As of June 30, 2024, the Group maintained a sound financial position with no bank loans, net current assets of approximately HK$25.9 million, and a current ratio of 3.5 **Liquidity Indicators** | Indicator (HK$) | As at June 30, 2024 | As at December 31, 2023 | | :--- | :--- | :--- | | Net Current Assets | Approx. 25,900,000 | Approx. 30,700,000 | | Cash and Bank Balances | Approx. 31,800,000 | Approx. 30,000,000 | | Current Ratio | Approx. 3.5 | Approx. 4.5 | | Net Assets | Approx. 61,400,000 | Approx. 114,300,000 | - At the end of the reporting period, the Group had **no bank loans or other borrowings**[56](index=56&type=chunk) Other Disclosures [Events After the Reporting Period](index=20&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) Subsequent to the reporting period, the Group completed several disposals, including its interests in Beyond Noble Holdings Limited, Smart Path Enterprises Limited, and an associate company - Disposed of the entire issued share capital of Beyond Noble (holding 51% of Kingkey Tianzi) and Smart Path (holding Haotuo)[61](index=61&type=chunk) - Disposed of the entire investment interest in the associate company, Aoluorui, for a consideration of HK$9.95 million[62](index=62&type=chunk) [Litigation](index=21&type=section&id=%E8%A8%B4%E8%A8%9F) The company is involved in several legal proceedings, including actions against a former director for breach of fiduciary duties and a defamation lawsuit filed by a former director - The Company has initiated legal action against a former director for breach of fiduciary duties, seeking damages[64](index=64&type=chunk) - A former director has filed a defamation lawsuit against the Company, alleging defamatory statements in its announcements[66](index=66&type=chunk) [Other Significant Events](index=22&type=section&id=%E5%85%B6%E4%BB%96%E9%87%8D%E8%A6%81%E4%BA%8B%E4%BB%B6) Trading in the company's shares has been suspended since April 2, 2024, and the company is working to fulfill the Stock Exchange's resumption guidance - Trading in the Company's shares on the Stock Exchange has been suspended since April 2, 2024, and will remain suspended[69](index=69&type=chunk) - The Stock Exchange has issued resumption guidance, requiring the Company to conduct an independent forensic investigation, demonstrate management integrity, review internal controls, and publish all outstanding financial results[71](index=71&type=chunk) - The Company has changed its auditor and appointed independent firms to conduct a forensic investigation and internal control review to meet resumption requirements[70](index=70&type=chunk)[74](index=74&type=chunk)[75](index=75&type=chunk) Corporate Governance and Other Information [Corporate Governance and Dividends](index=24&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E8%88%87%E8%82%A1%E6%81%AF) The company complied with all applicable Corporate Governance Code provisions during the interim period, and the Board has resolved not to recommend an interim dividend - The Company has complied with all applicable code provisions of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules throughout the interim period[77](index=77&type=chunk) - The Board of Directors has resolved not to recommend the payment of any dividend for the interim period[81](index=81&type=chunk)

Performance Summary [Financial Summary](index=1&type=section&id=财务摘要) The company experienced a significant decline in performance for FY2023, with revenue decreasing by 32.9% to approximately HKD 36.3 million and the annual loss widening by 317.9% to approximately HKD 36.2 million | Indicator | 2023 | 2022 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | Approx. HKD 36.3 million | Approx. HKD 54.2 million | -32.9% | | Gross Profit | Approx. HKD 20.3 million | Approx. HKD 31.1 million | -34.5% | | Gross Margin | Approx. 56.0% | Approx. 57.4% | -1.4pp | | Loss for the Year | Approx. HKD 36.2 million | Approx. HKD 8.7 million | +317.9% | | Loss Attributable to Equity Holders | Approx. HKD 35.9 million | Approx. HKD 8.9 million | +306.0% | - The Board of Directors resolved not to recommend any dividend for the year ended December 31, 2023[3](index=3&type=chunk) Consolidated Financial Statements [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=综合损益及其他全面收益表) For FY2023, the company's revenue decreased by 32.9% to HKD 36.33 million, with the annual loss significantly expanding to HKD 36.24 million due to reduced income, increased impairment losses, and a loss from de-consolidation of a subsidiary | Item | 2023 (HKD '000) | 2022 (HKD '000) | | :--- | :--- | :--- | | Revenue | 36,332 | 54,154 | | Gross Profit | 20,341 | 31,058 | | Impairment of Trade and Other Receivables | (6,162) | (30) | | Loss on De-consolidation of a Subsidiary | (3,777) | – | | Loss Before Income Tax | (36,238) | (8,672) | | **Loss for the Year** | **(36,238)** | **(8,672)** | | Item | 2023 | 2022 | | :--- | :--- | :--- | | Basic and Diluted Loss Per Share | (7.90 HK cents) | (1.98 HK cents) | [Consolidated Statement of Financial Position](index=4&type=section&id=综合财务状况表) As of the end of 2023, the company's total assets decreased from HKD 210 million to HKD 124 million, and net assets declined from HKD 196 million to HKD 114 million, primarily due to a significant reduction in cash and cash equivalents and a decrease in the fair value of equity instruments | Item | December 31, 2023 (HKD '000) | December 31, 2022 (HKD '000) | | :--- | :--- | :--- | | **Total Assets** | **124,298** | **209,528** | | Non-current Assets | 84,927 | 124,528 | | Current Assets | 39,371 | 85,000 | | **Total Liabilities** | **9,993** | **13,400** | | Current Liabilities | 8,694 | 12,867 | | Non-current Liabilities | 1,299 | 533 | | **Net Assets** | **114,305** | **196,128** | | **Total Equity** | **114,305** | **196,128** | Notes to the Financial Statements [Company Information and Significant Accounting Policies](index=6&type=section&id=2.%20编製基準及重大會計政策資料) The Group primarily engages in advertising services, healthcare product sales, e-commerce, and IP development design services, with a significant accounting event being the de-consolidation of subsidiary Kingkey Tianzi due to loss of control, resulting in a loss of approximately HKD 3.78 million - The Group's principal activities include: (i) provision of advertising services; (ii) sales of medical and healthcare products; (iii) e-commerce; and (iv) provision of intellectual property (IP) development and design services[10](index=10&type=chunk) - The Board decided to de-consolidate Kingkey Tianzi from July 1, 2023, due to the inability to obtain its books and records and the loss of effective control[12](index=12&type=chunk)[15](index=15&type=chunk) - The de-consolidation resulted in a net loss of approximately **HKD 3.78 million** and an impairment loss of approximately **HKD 3.59 million** on receivables from Kingkey Tianzi[16](index=16&type=chunk) [Segment Information](index=8&type=section&id=3.%20分部资料) In 2023, advertising services remained the primary revenue source at HKD 32.48 million, while sales of medical and healthcare products plummeted to HKD 0.37 million and e-commerce revenue decreased to HKD 2.90 million, with all segments reporting operating losses | Segment | 2023 Revenue (HKD '000) | 2022 Revenue (HKD '000) | 2023 Results (HKD '000) | 2022 Results (HKD '000) | | :--- | :--- | :--- | :--- | :--- | | Provision of Advertising Services | 32,483 | 33,143 | (595) | 556 | | Sales of Medical and Healthcare Products | 373 | 13,475 | (619) | 363 | | E-commerce | 2,900 | 7,536 | (2,004) | (944) | | Provision of IP Development Design Services | 576 | – | (6,859) | – | | **Total** | **36,332** | **54,154** | **(10,077)** | **(25)** | - Geographically, almost all revenue in 2023 (HKD 36.33 million) was derived from Hong Kong, compared to HKD 7.54 million from Mainland China in 2022[25](index=25&type=chunk) - No single customer contributed more than **10%** of the Group's total revenue in 2023[28](index=28&type=chunk) Extracts from Independent Auditor's Report [Disclaimer of Opinion](index=18&type=section&id=不发表意见) The independent auditor issued a "Disclaimer of Opinion" on the company's 2023 consolidated financial statements due to significant audit scope limitations, including issues with subsidiary de-consolidation, investment in an associate, and the validity of certain transactions - The auditor explicitly stated that due to the significance of the matters described in the "Basis for Disclaimer of Opinion" section, sufficient and appropriate audit evidence could not be obtained to form an audit opinion on the consolidated financial statements[45](index=45&type=chunk) - **De-consolidation of a subsidiary**: The auditor could not obtain the books and records of Kingkey Tianzi, preventing assessment of the appropriateness of the de-consolidation accounting treatment and the date of loss of control[46](index=46&type=chunk)[50](index=50&type=chunk) - **Scope limitation on interest in an associate**: The auditor could not obtain audited financial statements for the associate, Olori, making it impossible to determine the share of results or impairment, and raising doubts about its classification as an associate[53](index=53&type=chunk)[54](index=54&type=chunk) - **Scope limitation on revenue, costs, and impairment of receivables**: For certain significant transactions in the e-commerce and IP development design services segments, incomplete records prevented the auditor from obtaining sufficient evidence to confirm their authenticity, validity, and recoverability[56](index=56&type=chunk)[59](index=59&type=chunk)[61](index=61&type=chunk) - **Opening balances and related party transactions**: Due to the aforementioned limitations, the auditor could not confirm the accuracy of opening balances or ascertain whether all related party transactions were properly identified and disclosed[63](index=63&type=chunk)[65](index=65&type=chunk) Management Discussion and Analysis [Financial Review](index=24&type=section&id=财务回顾) In 2023, the Group's total revenue decreased by 32.9% to HKD 36.3 million, primarily due to a sharp decline in medical and healthcare product sales and e-commerce revenue, leading to a 317.9% increase in loss before income tax despite stable gross margin | Business Segment | 2023 (HKD million) | 2022 (HKD million) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Provision of Advertising Services | 32.5 | 33.1 | -2.0% | | Sales of Medical and Healthcare Products | 0.37 | 13.5 | -97.2% | | E-commerce | 2.9 | 7.5 | -61.5% | | IP Development Design Services | 0.58 | 0 | N/A | | **Total** | **36.3** | **54.2** | **-32.9%** | - Gross profit decreased by **34.5%** from HKD 31.1 million to HKD 20.3 million, with gross margin slightly declining from 57.4% to **56.0%**, remaining relatively stable[73](index=73&type=chunk)[74](index=74&type=chunk) - Key drivers of the increased loss include: - **Administrative expenses**: Increased by **15.4%** to HKD 34.8 million, mainly due to higher legal and professional fees[77](index=77&type=chunk) - **Impairment losses**: Surged from HKD 0.03 million to **HKD 6.2 million**[78](index=78&type=chunk) - **Loss on de-consolidation**: A loss of **HKD 3.8 million** was recorded[79](index=79&type=chunk) [Business Review and Outlook](index=27&type=section&id=业务回顾与展望) In 2023, the Group's core advertising business remained stable, but other segments faced severe disruption due to incomplete document handover from a former executive director, leading the Group to focus on consolidating its core advertising business and exploring expansion into Mainland China - **Advertising business**: As the core business, it remained largely unaffected by internal issues and continues to be the cornerstone of the Group's operations[85](index=85&type=chunk)[88](index=88&type=chunk) - **Disruption of other businesses**: The medical and healthcare products, e-commerce, and IP development design services segments were all disrupted due to the former director's failure to hand over complete document records, leading the Group to cease further development in these segments[86](index=86&type=chunk)[87](index=87&type=chunk)[88](index=88&type=chunk) - **Future outlook**: The Group will strengthen its core advertising business and actively explore strategic expansion opportunities in Mainland China, including leveraging digital platforms like Douyin and establishing its own factories to support promotional services and event management[89](index=89&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk)[93](index=93&type=chunk) [Liquidity and Capital Management](index=30&type=section&id=流动资金及财政资源) As of the end of 2023, the Group's financial position weakened, with net current assets significantly decreasing to HKD 30.7 million and cash and bank balances falling to HKD 30 million, while all proceeds from the 2018 share placement have been fully utilized | Indicator | December 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Net Current Assets | HKD 30.7 million | HKD 72.1 million | | Cash and Bank Balances | HKD 30 million | HKD 69.9 million | | Current Ratio | 4.5 | 6.6 | - As of December 31, 2023, the Group had no bank loans or other borrowings[95](index=95&type=chunk) - The net proceeds of approximately **HKD 103 million** from the 2018 share placement were fully utilized as of December 31, 2023[98](index=98&type=chunk)[99](index=99&type=chunk) [Post-Reporting Period Events and Significant Events](index=32&type=section&id=报告期后事项) Subsequent to the reporting period, the company undertook restructuring and remedial actions, including the disposal of problematic subsidiaries and an associate, initiating litigation against a former director, and addressing a trading suspension by appointing a new auditor and commencing forensic and internal control reviews - **Asset disposal**: Subsequent to the reporting period, the company disposed of its entire interests in Beyond Noble (the holding company of Kingkey Tianzi), Smart Path (the holding company of Haotuo), and the associate Olori[103](index=103&type=chunk)[104](index=104&type=chunk) - **Significant litigation**: The company initiated legal proceedings against a former director for breach of fiduciary duties, while also facing a defamation lawsuit filed by the same former director[106](index=106&type=chunk)[109](index=109&type=chunk) - **Suspension of trading and resumption guidance**: The company's shares were suspended from trading effective April 2, 2024, and the Stock Exchange issued resumption guidance requiring a forensic investigation, demonstration of management integrity, internal control review, and publication of all financial results[116](index=116&type=chunk)[121](index=121&type=chunk) - **Remedial actions**: To meet the resumption guidance, the company appointed Tianjian International Certified Public Accountants as the new auditor and engaged independent third-party institutions to conduct a forensic investigation and an internal control review[119](index=119&type=chunk)[120](index=120&type=chunk)[122](index=122&type=chunk)