利亚零售(00831) - 2025 - 中期业绩

Financial Summary During the reporting period, the Group's revenue decreased by 4.6% year-on-year to HKD 688.1 million, but strict cost control led to a 27.7% increase in core operating profit (including lease liability interest expense) to HKD 17.365 million, an 18.0% increase in profit attributable to company shareholders to HKD 15.06 million, and an 18.8% increase in basic earnings per share to HK 1.9 cents; however, the interim dividend per share decreased by 50% year-on-year to HK 1.0 cent Financial Performance Summary | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | Change | | :--- | :--- | :--- | :--- | | Revenue | 688,139 | 721,654 | -4.6% | | Core Operating Profit | 20,425 | 17,419 | +17.3% | | Core Operating Profit (including lease liability interest expense) | 17,365 | 13,598 | +27.7% | | Profit Attributable to Company Shareholders | 15,060 | 12,767 | +18.0% | | Basic Earnings Per Share (HK Cents) | 1.9 | 1.6 | +18.8% | | Interim Dividend Per Share (HK Cents) | 1.0 | 2.0 | -50.0% | Operations Summary Despite a challenging business environment, the Group's revenue fell by 4.6%, but strict cost control successfully offset sales and gross margin pressures, leading to improved profitability; the Group maintains a robust financial position with HKD 167 million in net cash and no bank borrowings, while the total number of shops slightly decreased from 157 as of December 31, 2024, to 155 as of June 30, 2025 - The challenging business environment persists, with Group revenue falling by 4.6%, but strict cost control offset sales and gross margin pressures, leading to improved profitability[6] - The Group maintains a robust financial position with HKD 167 million in net cash and no bank borrowings[6] Shop Count | Shop Type | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Saint Honore Cake Shop (Hong Kong) | 110 | 111 | | Saint Honore Cake Shop (Macau) | 14 | 14 | | Saint Honore Cake Shop (Guangzhou) | 3 | 4 | | Mon cher Cake Shop (Hong Kong) | 7 | 7 | | Zoff Optical Shop (Hong Kong) | 16 | 16 | | Zoff Optical Shop (Singapore) | 5 | 5 | | Total Shops under Convenience Retail Asia | 155 | 157 | CEO's Report The CEO's report highlights that despite an overall decline in the Hong Kong retail market, the Group maintained solid performance and market share; through product innovation, excellent customer experience, and talent development, the Group successfully navigated external challenges, with future plans including expanding market share, investing in talent and production facilities, and prudently growing the business - Despite an overall decline in the Hong Kong retail market, the Group maintained solid performance and market share through product innovation, excellent customer experience, and talent development[7] - The Group will continue to expand market share, invest in talent and production facilities, and prudently grow its business, particularly in B2B and value-added products[15][16][17] Business Review The business review details the performance of each segment: Saint Honore Cake Shop offset revenue decline through product innovation and cost control, with B2B business achieving double-digit growth; Mon cher launched new products and successful collaborations; Zoff Hong Kong outperformed the market, while Singapore operations faced challenges and implemented cost-saving measures Saint Honore Cake Shop Saint Honore Cake Shop saw a reduction in store count across Hong Kong, Macau, and Guangzhou, with total revenue experiencing a mid-single-digit decline; facing weak consumption and market competition, the Group successfully offset some impacts through strict cost control and innovative products like European sourdough bread, frozen foods, and co-branded mini cakes, leading to an annual increase in profitability; the Group also invested in digital and social media, optimized the 'Saint Honore Cake Online' platform, reaching 1.4 million members, and B2B sales achieved double-digit growth, with investment in a new Tai Po plant to boost capacity - Saint Honore Cake Shop's store count decreased from 148 in the first half of 2024 to 127 as of June 30, 2025[8] - Total revenue for Hong Kong and Macau cake shops recorded a mid-single-digit decline, but profitability increased year-on-year through strict cost control and innovative product development[8] - Successfully launched European sourdough bread, frozen food series, and co-branded mini cakes with popular characters, offsetting the impact of weak celebration cake sales[8] - The 'Saint Honore Cake Online' platform has approximately 1.4 million members, with over 220,000 'Gold Members', and received 'Online-to-Offline Customer Experience' and 'Reputable Online Shop Certification' accolades[9] - Business-to-business (B2B) sales recorded double-digit growth, and a long-term lease negotiation was completed to relocate part of the Hong Kong factory to upgraded facilities in Tai Po, enhancing frozen product capacity and efficiency[10] Mon cher and Merci Moncher Mon cher cake shops maintained stable same-store sales and enhanced brand awareness by launching new products like mint chocolate rolls and mochi desserts, and collaborating with local cafe NOC; last December, the Group introduced 'Merci Moncher,' a new mid-range pastry shop concept blending Japanese and French baking styles, with its flagship store in Causeway Bay - Mon cher cake shops maintained stable same-store sales and enhanced brand awareness by launching new products (e.g., mint chocolate rolls, mochi desserts) and collaborating with NOC cafe[12] - Launched a new mid-range pastry shop concept, 'Merci Moncher,' blending Japanese and French baking styles, with its flagship store in Causeway Bay[12] Zoff Optical Shops Zoff Hong Kong's franchise business recorded low single-digit growth in the first half, outperforming the overall shrinking Hong Kong optical market; by offering over 1,400 products, advanced eye examination services, intraocular pressure measurement, and collaborations with local brands, Zoff Hong Kong expanded its customer reach; the new Singapore franchise business faced challenges, with comparable same-store sales declining by a mid-single-digit percentage, leading to cost-saving measures that reduced operating costs by over 10% - Zoff Hong Kong's franchise business recorded low single-digit growth in the first half, outperforming the overall shrinking Hong Kong optical market[13] - Zoff Hong Kong offers over 1,400 products, promotes advanced eye examination and intraocular pressure measurement services, and collaborates with local brands like HSBC and Toys 'R' Us[13] - Zoff Singapore's comparable same-store sales recorded a mid-single-digit decline, with cost-saving measures reducing operating costs by over 10%[14] Future Outlook The Group is cautiously optimistic about revenue growth in the second half, anticipating a boost from Mid-Autumn Festival and Christmas holidays; facing retail market challenges and industry consolidation opportunities, the Group will focus on solidifying and expanding its cake shop market share through new store models and precise marketing to enhance brand image; the B2B business, a strategic pillar, will see significant investment in talent and production facilities to penetrate the mainland China market; Zoff will continue to expand in Hong Kong, adopt a prudent strategy in Singapore, and enhance eye examination services while launching more Japan-made eyewear products - The Group is cautiously optimistic about revenue growth in the second half, anticipating a boost from Mid-Autumn Festival and Christmas holidays[15] - The cake shop business will solidify and expand its core market share, enhancing brand image and optimizing costs through new store models, precise digital marketing, and the 'Saint Honore Cake Online' platform[15] - The business-to-business (B2B) segment is a strategic pillar, with significant investment in talent and production facilities to enhance capacity and profitability, and penetrate the mainland China market[15] - Zoff will continue to expand in Hong Kong, adopt a prudent strategy in Singapore, and enhance its range of eye examination services while launching more Japan-made fashionable eyewear products[16] Discussion and Analysis This chapter details the Group's financial performance, employee situation, and sustainability and corporate social responsibility practices; financially, revenue decreased but profitability improved, with robust cash flow; employee numbers slightly decreased, but investment in training and benefits continued; in CSR, the Group actively participated in environmental and community activities Financial Review The Group's first-half turnover decreased by 4.6% to HKD 688 million; the cake shop business was affected by store closures and local consumers traveling abroad, but B2B business and festive food sales remained flat; Zoff optical business saw a modest 0.3% growth; gross margin decreased by 2.0 percentage points to 51.7%, mainly due to promotional activities and an increased proportion of B2B business; through strict cost control, operating expenses as a percentage of turnover decreased, and both core operating profit and profit attributable to company shareholders increased; the Group holds HKD 167 million in net cash with no bank borrowings Financial Performance Overview | Metric | H1 2025 (HKD Thousand) | H1 2024 (HKD Thousand) | Change | | :--- | :--- | :--- | :--- | | Turnover | 688,000 | 721,654 | -4.6% | | Cake Shop Business Turnover | 615,000 | 648,658 | -5.2% | | Zoff Optical Business Turnover | 73,000 | 72,996 | +0.3% | | Gross Margin | 51.7% | 53.7% | -2.0 percentage points | | Operating Expenses as % of Turnover | 49.2% | 51.7% | -2.5 percentage points | | Core Operating Profit before Lease Liability Interest Expense | 20,000 | 17,419 | +17.3% | | Core Operating Profit (including lease liability interest expense) | 17,000 | 13,598 | +27.7% | | Net Profit | 15,000 | 13,000 | +18.0% | | Basic Earnings Per Share (HK Cents) | 1.9 | 1.6 | +18.8% | - The Group's net cash balance is HKD 167 million, with no bank borrowings, indicating a robust financial position[21] - The Board resolved to declare an interim dividend of HK 1 cent per share[22] Employees As of June 30, 2025, the Group had 2,704 employees, with Hong Kong employees accounting for 54%; total staff costs decreased year-on-year to HKD 245 million; the Group offers competitive remuneration, skill enhancement, and customer service training, and was recognized as a 'Manpower Developer' for its talent development achievements; through the 'Heart-to-Heart' program, the Group aims to enhance employee satisfaction and belonging, and organizes various social activities Employee Statistics | Metric | As of June 30, 2025 | | :--- | :--- | | Total Employees | 2,704 | | % of Hong Kong Employees | 54% | | % of Part-time Employees | 23% | | Total Staff Costs (HKD Thousand) | 245,000 | - The Group provides competitive remuneration packages, comprehensive skill enhancement, and customer service training, and was recognized as a 'Manpower Developer'[23] - Implemented the 'Heart-to-Heart' program to enhance employee satisfaction and belonging through career development, work-life balance, and social activities[24] Sustainability and Corporate Social Responsibility As a member of Fung Group, the Group adheres to the UN Global Compact, committing to sustainable operations through the '3Rs' principle (Reduce, Reuse, Recycle) to protect the environment and conserve resources; the Group actively participates in 'Earth Hour' and the 'Outdoor Lighting Charter,' collaborates with the Yindii app to redistribute unsold products, and donated over 150,000 bread and festive food items to NGOs - The Group adheres to the UN Global Compact, committing to sustainable operations through the '3Rs' principle to protect the environment and conserve resources[25] - Actively participates in 'Earth Hour' and the 'Outdoor Lighting Charter,' collaborates with the Yindii app to redistribute unsold products, and donated over 150,000 bread and festive food items to NGOs[25] - Saint Honore received the '15 Years Plus Caring Company' logo, and Zoff Hong Kong received the '5 Years Plus Caring Company' logo, demonstrating their commitment to the community[25] Condensed Consolidated Financial Statements This chapter presents the Group's unaudited condensed consolidated statement of profit or loss, statement of comprehensive income, statement of financial position, and statement of changes in equity for the six months ended June 30, 2025, providing detailed financial data reflecting operating results, financial position, and equity changes during the reporting period Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, the Group's revenue was HKD 688.1 million, with a gross profit of HKD 355.4 million; core operating profit was HKD 20.425 million, profit attributable to company shareholders was HKD 15.06 million, and basic earnings per share was HK 1.9 cents Statement of Profit or Loss | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Revenue | 688,139 | 721,654 | | Cost of Sales | (332,698) | (334,427) | | Gross Profit | 355,441 | 387,227 | | Other Income | 3,715 | 3,333 | | Selling Expenses | (243,081) | (267,269) | | Distribution Costs | (37,188) | (42,180) | | Administrative Expenses | (58,462) | (63,692) | | Core Operating Profit | 20,425 | 17,419 | | Net Interest Expense | (1,065) | (672) | | Profit Before Income Tax | 19,360 | 16,747 | | Income Tax Expense | (4,300) | (3,980) | | Profit Attributable to Company Shareholders | 15,060 | 12,767 | | Basic Earnings Per Share (HK Cents) | 1.9 | 1.6 | Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, profit attributable to company shareholders was HKD 15.06 million; other comprehensive income primarily consisted of exchange differences of HKD 0.343 million, resulting in a total comprehensive income attributable to company shareholders of HKD 15.403 million Statement of Comprehensive Income | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Profit Attributable to Company Shareholders | 15,060 | 12,767 | | Exchange Differences | 343 | (101) | | Total Comprehensive Income Attributable to Company Shareholders | 15,403 | 12,666 | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets were HKD 1.153 billion, a decrease from HKD 1.213 billion as of December 31, 2024; total equity was HKD 643.3 million; non-current assets primarily included intangible assets, property, plant and equipment, and right-of-use assets; among current assets, cash and cash equivalents amounted to HKD 149.8 million; total liabilities were HKD 510 million, with current liabilities of HKD 403.8 million, including trade payables of HKD 61.563 million and gift vouchers of HKD 99.373 million Statement of Financial Position | Metric | As of June 30, 2025 (HKD Thousand) | As of Dec 31, 2024 (HKD Thousand) | | :--- | :--- | :--- | | Total Assets | 1,153,534 | 1,213,604 | | Non-current Assets | 840,239 | 878,616 | | Current Assets | 313,295 | 334,988 | | Cash and Cash Equivalents | 149,868 | 206,016 | | Total Equity | 643,347 | 635,422 | | Non-current Liabilities | 106,387 | 125,866 | | Current Liabilities | 403,800 | 452,316 | | Trade Payables | 61,563 | 71,347 | | Gift Vouchers | 99,373 | 113,350 | Condensed Consolidated Statement of Changes in Equity For the six months ended June 30, 2025, profit attributable to company shareholders was HKD 15.06 million, which, combined with exchange differences of HKD 0.343 million, resulted in a total comprehensive income of HKD 15.403 million for the period; dividends paid amounted to HKD 7.774 million; total equity at period-end was HKD 643.3 million, an increase from HKD 635.4 million at the beginning of the period Statement of Changes in Equity | Metric | As of June 30, 2025 (HKD Thousand) | As of Jan 1, 2024 (HKD Thousand) | | :--- | :--- | :--- | | Equity at Beginning of Period | 635,422 | 660,190 | | Profit Attributable to Company Shareholders | 15,060 | 12,767 | | Exchange Differences | 343 | (101) | | Total Comprehensive Income for the Period | 15,403 | 12,666 | | Employee Share Option Benefits | 296 | 156 | | Dividends Paid | (7,774) | (31,097) | | Equity at End of Period | 643,347 | 641,915 | Notes to the Financial Statements This chapter provides detailed notes to the condensed consolidated interim financial information, covering general company information, basis of financial statement preparation, revenue and segment information, breakdown of expenses, interest income and expense, income tax, earnings per share calculation, dividend policy, aging analysis of trade receivables and payables, and significant events after the reporting period 1. General Information Convenience Retail Asia Limited and its subsidiaries primarily operate chain businesses including Saint Honore Cake Shop, Mon cher Cake Shop, and Zoff Optical Shops, as well as wholesale of bakery and seasonal products; the company is incorporated in the Cayman Islands, with its shares listed on the Main Board of the Hong Kong Stock Exchange - The Group's principal activities include the chain operation of Saint Honore Cake Shop, Mon cher Cake Shop, and Zoff Optical Shops, as well as the wholesale of bakery and seasonal products[30] - The Company is incorporated in the Cayman Islands, and its shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited[30][31] 2. Basis of Preparation This condensed consolidated interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the Hong Kong Institute of Certified Public Accountants and the disclosure requirements of the Listing Rules of the Stock Exchange, consistent with the accounting policies and methods of computation used in the 2024 consolidated financial statements; newly adopted standards have no significant impact on this period's financial information - The financial information is prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' and the disclosure requirements of the Listing Rules of the Stock Exchange[32] - The adoption of new and revised Hong Kong Financial Reporting Standards and Interpretations has no significant impact on this condensed consolidated interim financial information[32] 3. Revenue, Other Income and Segment Information The Group primarily operates two segments: cake shop and optical; cake shop business revenue was HKD 614.9 million, and optical business revenue was HKD 73.219 million; core operating profit for the cake shop business was HKD 22.714 million, while the optical business recorded a core operating loss of HKD 2.289 million; management assesses business performance from a product/service perspective and has restated prior year comparative segment information Revenue by Source | Revenue Source | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Bakery Product Sales Revenue | 614,920 | 648,658 | | Optical Product Sales Revenue | 73,219 | 72,996 | | Total Revenue | 688,139 | 721,654 | | Service Items and Other Income | 3,715 | 3,333 | Core Operating Profit/(Loss) by Segment | Segment | 2025 Core Operating Profit/(Loss) (HKD Thousand) | 2024 Core Operating Profit/(Loss) (HKD Thousand) | | :--- | :--- | :--- | | Cake Shop Business | 22,714 | 21,370 | | Optical Business | (2,289) | (3,951) | | Group Total | 20,425 | 17,419 | - Management primarily considers business performance from a product/service perspective (cake shop and optical businesses) starting from 2025, and has restated prior year comparative segment information[34] 4. Total Cost of Sales, Selling Expenses, Distribution Costs and Administrative Expenses For the six months ended June 30, 2025, the total cost of sales, selling expenses, distribution costs, and administrative expenses amounted to HKD 671.4 million, a decrease from HKD 707.5 million in the same period last year; employee benefit expenses were HKD 245 million, and cost of inventories sold was HKD 184.3 million Breakdown of Expenses | Expense Item | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Cost of Inventories Sold | 184,306 | 190,795 | | Freight Charges | 18,643 | 21,414 | | Depreciation of Property, Plant and Equipment | 22,148 | 24,372 | | Depreciation of Right-of-use Assets | 75,271 | 87,483 | | Employee Benefit Expenses | 245,205 | 257,410 | | Short-term and Contingent Lease Payments | 8,513 | 7,932 | | Utilities Expenses | 21,374 | 22,064 | | Other Expenses | 94,379 | 94,507 | | Total | 671,429 | 707,568 | 5. Net Interest Expense For the six months ended June 30, 2025, the Group's interest income from bank deposits was HKD 1.995 million, and interest expense on lease liabilities was HKD 3.06 million, resulting in a net interest expense of HKD 1.065 million Net Interest Expense Details | Item | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Interest Income from Bank Deposits | 1,995 | 3,149 | | Interest Expense on Lease Liabilities | (3,060) | (3,821) | | Net Interest Expense | (1,065) | (672) | 6. Income Tax Expense For the six months ended June 30, 2025, the Group's total income tax expense was HKD 4.3 million, comprising Hong Kong profits tax of HKD 3.92 million, overseas profits tax of HKD 1.692 million, and a deferred tax credit of HKD 1.312 million; the Hong Kong profits tax rate is 16.5% Income Tax Expense Breakdown | Item | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Hong Kong Profits Tax | 3,920 | 2,947 | | Overseas Profits Tax | 1,692 | 1,208 | | Deferred Tax Credit | (1,312) | (175) | | Total Income Tax Expense | 4,300 | 3,980 | - Hong Kong profits tax is provided at a rate of 16.5%[40] 7. Earnings Per Share For the six months ended June 30, 2025, profit attributable to company shareholders was HKD 15.06 million; basic earnings per share was HK 1.9 cents, and the weighted average number of shares for diluted earnings per share was 777,553,021 shares Earnings Per Share Calculation | Metric | 2025 (HKD Thousand/Shares) | 2024 (HKD Thousand/Shares) | | :--- | :--- | :--- | | Profit Attributable to Company Shareholders (HKD Thousand) | 15,060 | 12,767 | | Weighted Average Number of Ordinary Shares in Issue | 777,416,974 | 777,416,974 | | Weighted Average Number of Ordinary Shares for Diluted EPS Calculation | 777,553,021 | 777,587,482 | - Basic and diluted earnings per share are calculated based on the profit attributable to company shareholders and the weighted average number of ordinary shares in issue during the respective periods[42][43] 8. Dividends The Board declared an interim dividend of HK 1 cent per share, totaling HKD 7.774 million, a decrease from HK 2 cents (HKD 15.548 million) in the same period of 2024 Dividend Declaration | Dividend Type | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Interim Dividend Per Share | 1 HK Cents | 2 HK Cents | | Total Interim Dividend Declared | 7,774 | 15,548 | 9. Trade Receivables As of June 30, 2025, total trade receivables amounted to HKD 60.458 million, an increase from HKD 37.687 million as of December 31, 2024; the credit period for most trade receivables ranges from 30 to 60 days Aging Analysis of Trade Receivables | Aging | As of June 30, 2025 (HKD Thousand) | As of Dec 31, 2024 (HKD Thousand) | | :--- | :--- | :--- | | 0 to 30 Days | 28,230 | 32,520 | | 31 to 60 Days | 7,923 | 27,151 | | 61 to 90 Days | 1,195 | 208 | | Over 90 Days | 339 | 579 | | Total | 60,458 | 37,687 | - The credit period for most trade receivables ranges from 30 to 60 days[46] 10. Trade Payables As of June 30, 2025, total trade payables amounted to HKD 61.563 million, a decrease from HKD 71.347 million as of December 31, 2024 Aging Analysis of Trade Payables | Aging | As of June 30, 2025 (HKD Thousand) | As of Dec 31, 2024 (HKD Thousand) | | :--- | :--- | :--- | | 0 to 30 Days | 33,928 | 39,983 | | 31 to 60 Days | 23,894 | 27,924 | | 61 to 90 Days | 893 | 953 | | Over 90 Days | 2,848 | 2,487 | | Total | 61,563 | 71,347 | 11. Events After the Reporting Period In July 2025, the Group completed two significant transactions: signing a factory lease agreement in Tai Po Industrial Estate to expand production capacity and enhance certification standards, recognizing approximately HKD 9 million in right-of-use assets; and acquiring a 20% equity interest in a Hong Kong food import, production, and distribution company for HKD 3 million, to strengthen its ingredient sourcing network and retail business model - In July 2025, the Group signed a factory lease agreement in Tai Po Industrial Estate, which will recognize approximately HKD 9 million in right-of-use assets to expand and enhance production capacity[48] - In July 2025, the Group acquired a 20% equity interest in a Hong Kong food import, production, and distribution company for HKD 3 million to strengthen its ingredient sourcing network and retail business model[48] Corporate Governance The Group adheres to sound corporate governance principles, fully complying with the Corporate Governance Code set out in Appendix C1 of the Listing Rules; the Board is responsible for overall strategy, with separate roles for the Chairman and CEO, and has established Audit, Nomination, and Remuneration Committees, primarily composed of independent non-executive directors, ensuring independence - The Group fully complies with the Corporate Governance Code set out in Appendix C1 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[49] - The roles of Chairman and Chief Executive Officer are held by different individuals, and the Board has established three committees: Audit, Nomination, and Remuneration, primarily composed of independent non-executive directors[49] Audit Committee The Audit Committee is primarily responsible for reviewing the Group's financial reporting, risk management, internal controls, and corporate governance matters, and making recommendations to the Board; Committee members possess professional qualifications, have direct access to the Corporate Governance Department and independent auditors, and have reviewed the unaudited interim financial information for the current period - The Audit Committee is responsible for reviewing the Group's financial reporting, risk management, internal controls, and corporate governance matters[50] - Committee members possess appropriate professional qualifications, have direct access to the Corporate Governance Department and independent auditors, and have reviewed the unaudited interim financial information for the current period[50][51] Securities Transactions by Directors and Relevant Employees The Group has adopted a code for securities transactions no less exacting than the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules, and requires relevant employees to comply; during the reporting period, the Company was not aware of any non-compliance by directors or relevant employees - The Group has adopted a code for securities transactions no less exacting than Appendix C3 of the Listing Rules, governing securities transactions by directors and relevant employees[52] - During the reporting period, the Company was not aware of any non-compliance by directors or relevant employees[52] Risk Management and Internal Control The Board is responsible for the Group's risk management and internal control systems, reviewing their effectiveness with the assistance of the Audit Committee; for the six months ended June 30, 2025, the Group's risk management and internal control systems were deemed established, adequate, and operating effectively to identify, assess, and manage significant risks - The Board is responsible for the Group's risk management and internal control systems, reviewing their effectiveness with the assistance of the Audit Committee[53] - For the six months ended June 30, 2025, the Group's risk management and internal control systems were deemed established, adequate, and operating effectively[53] Other Information This chapter contains supplementary information regarding the Group's listed securities transactions, interim dividend declaration, and suspension of share registration Purchase, Sale or Redemption of the Company's Listed Securities During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[54] Interim Dividend The Board resolved to declare an interim dividend of HK 1 cent per share for the six months ended June 30, 2025 - The Board resolved to declare an interim dividend of HK 1 cent per share for the six months ended June 30, 2025[55] Closure of Register of Members To facilitate the payment of the interim dividend, the Company will suspend its register of members from September 1 to September 2, 2025; shareholders must register their transfers by 4:30 p.m. on August 29, 2025, to be eligible for the dividend - The Company will suspend its register of members from September 1 to September 2, 2025, to determine eligible shareholders for the interim dividend[56] - Shareholders must register their transfers by 4:30 p.m. on August 29, 2025, to be eligible for the interim dividend[56]