科联系统(00046) - 2025 - 中期业绩

Cover and Disclaimer Disclaimer and Announcement Overview Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited are not responsible for the content of this announcement, make no representation, and accept no liability for any loss. This announcement presents the unaudited condensed consolidated interim results of Computer And Technologies Holdings Limited for the six months ended June 30, 2025 - Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement[1] - This announcement presents the unaudited condensed consolidated interim results of Computer And Technologies Holdings Limited and its subsidiaries for the six months ended June 30, 2025, together with comparative figures[2][3] Condensed Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, the Group's revenue was HK$120,225 thousand, a decrease from HK$127,567 thousand in the prior year, while operating profit increased by 23.3% to HK$17,714 thousand and profit for the period slightly rose to HK$18,558 thousand Key Data from Condensed Consolidated Statement of Profit or Loss (For the six months ended June 30) | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 120,225 | 127,567 | | Cost of sales and services | (52,080) | (58,616) | | Gross profit | 68,145 | 68,951 | | Other business income | 1,247 | 408 | | Selling and distribution expenses | (18,015) | (17,555) | | Net general and administrative expenses | (26,738) | (29,931) | | Operating profit | 17,714 | 14,368 | | Profit before tax | 21,527 | 20,764 | | Profit for the period | 18,558 | 18,043 | | Basic earnings per ordinary share attributable to owners of the parent (HK cents) | 7.66 | 7.46 | - Operating profit increased by 23.3% year-on-year, demonstrating positive effects of cost control and efficiency improvements[4][49] Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, the Group's total comprehensive income was HK$19,510 thousand, a 15.0% increase from HK$16,962 thousand in the prior year, primarily due to a reversal from loss to gain in exchange differences on overseas operations Key Data from Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Profit for the period | 18,558 | 18,043 | | Exchange differences on translating overseas operations | 952 | (1,081) | | Total comprehensive income for the period | 19,510 | 16,962 | | Total comprehensive income attributable to owners of the parent | 19,547 | 17,085 | - Exchange differences on translating overseas operations turned from a loss of HK$1,081 thousand in 2024 to a gain of HK$952 thousand in 2025, significantly boosting comprehensive income[6] Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets were HK$656,718 thousand, a slight decrease from December 31, 2024, with net assets increasing to HK$508,757 thousand and net current assets maintaining steady growth Key Data from Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Total non-current assets | 228,062 | 238,005 | | Total current assets | 428,656 | 434,602 | | Total current liabilities | (131,427) | (150,138) | | Net current assets | 297,229 | 284,464 | | Net assets | 508,757 | 502,260 | | Total equity | 508,757 | 502,260 | | Cash and cash equivalents | 326,925 | 128,907 | | Trade receivables | 28,526 | 39,514 | - Cash and cash equivalents significantly increased by 153.6% to HK$326,925 thousand, indicating a substantial improvement in liquidity[7] - Trade receivables decreased by 27.8% to HK$28,526 thousand, potentially reflecting improved collection efficiency or changes in business volume structure[7] Notes to the Condensed Consolidated Interim Financial Information 1. Company Information Computer And Technologies Holdings Limited is incorporated in Bermuda, with its principal place of business located in Wong Chuk Hang, Hong Kong - The Company is incorporated in Bermuda, with its principal place of business at 18/F, The Hub, 36 Yip Kan Street, Wong Chuk Hang, Hong Kong[9] 2. Basis of Preparation The condensed consolidated interim financial information is prepared in accordance with the Listing Rules of The Stock Exchange of Hong Kong Limited and HKAS 34 issued by the HKICPA, and should be read in conjunction with the annual consolidated financial statements - The condensed consolidated interim financial information has been prepared in accordance with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants[10] - Certain comparative amounts have been reclassified to conform with the presentation for the current period[11] 3. Changes in Accounting Policies and Disclosures The accounting policies adopted for preparing the interim financial information are consistent with the prior year, with the initial adoption of the revised HKAS 21 "Lack of Exchangeability" having no impact as all Group transaction currencies are exchangeable - The accounting policies adopted in the preparation of the condensed consolidated interim financial information are consistent with those applied in the preparation of the Group’s annual consolidated financial statements for the year ended December 31, 2024, except for the initial adoption of the revised Hong Kong Financial Reporting Standards for the financial information of the current period[12] - HKAS 21 (Amendment) "Lack of Exchangeability" had no impact on the condensed consolidated interim financial information, as the transaction currencies involved by the Group and the functional currencies of its subsidiaries are all exchangeable when converted to the Group's presentation currency[13] 4. Operating Segment Information The Group is organized into three reportable operating segments: Application Services, Solutions and Integration Services, and Investments, with performance independently monitored for resource allocation and assessment 4.1 Principal Activities and Segment Breakdown - The Group's principal activities include providing enterprise application software and e-commerce services (including SaaS products, GETS, cloud services) to enterprises; providing IT solution implementation and application software development (including SaaS products), IT and related operations/infrastructure outsourcing services; and property and treasury investments[14][16] - The Group is organized into three reportable operating segments: Application Services, Solutions and Integration Services, and Investments, with management independently monitoring the performance of each segment for resource allocation and performance assessment[15][16] 4.2 Operating Segment Results Operating Segment Revenue and Results (For the six months ended June 30) | Segment | 2025 Revenue (HK$ thousand) | 2024 Revenue (HK$ thousand) | Revenue Change (%) | 2025 Results (HK$ thousand) | 2024 Results (HK$ thousand) | Results Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Application Services | 67,771 | 70,191 | -3.4% | 15,747 | 14,708 | +7.1% | | Solutions and Integration Services | 51,626 | 56,517 | -8.7% | 14,797 | 14,550 | +1.7% | | Investments | 828 | 859 | -3.6% | (764) | (356) | +114.6% | | Total | 120,225 | 127,567 | -5.8% | 29,780 | 28,902 | +3.0% | - The Investment segment's loss expanded due to an increase in net fair value loss on investment properties from HK$1,000 thousand in 2024 to HK$2,000 thousand in 2025[23] - Net fair value gain/(loss) on financial assets at fair value through profit or loss turned from a loss of HK$243 thousand in 2024 to a gain of HK$312 thousand in 2025[23] 4.3 Geographical Information Revenue from External Customers (By customer location) | Region | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Hong Kong and other countries/regions | 100,530 | 104,680 | | Mainland China | 19,695 | 22,887 | | Total | 120,225 | 127,567 | Non-current Assets (By asset location) | Region | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Hong Kong | 129,775 | 134,477 | | Mainland China | 94,092 | 98,810 | | Total | 223,867 | 233,287 | 4.4 Information on a Major Customer - For the six months ended June 30, 2025, revenue from a major customer was HK$41,482 thousand (2024: HK$40,664 thousand), accounting for 10% or more of the Group's total revenue, primarily from the Application Services and Solutions and Integration Services segments[26] 5. Revenue, Other Business Income, and Other Income and Gains The Group's revenue primarily derives from customer contracts, with software-as-a-service products and maintenance services being the largest source, while other business income and gains mainly include VAT refunds and bank interest income 5.1 Revenue from Contracts with Customers Revenue from Contracts with Customers (By goods or service category) | Goods or Service Category | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Sale of goods and provision of software and Government Electronic Trading Services | 14,826 | 14,923 | | Provision of software implementation and related services, and IT solution implementation and related services | 37,947 | 45,779 | | Provision of Software-as-a-Service products and maintenance services | 66,624 | 66,006 | | Total Revenue | 119,397 | 126,708 | Revenue from Contracts with Customers (By timing of revenue recognition) | Timing of Revenue Recognition | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | At a point in time | 14,826 | 14,923 | | Over a period of time | 104,571 | 111,785 | | Total Revenue | 119,397 | 126,708 | - The amount of transaction price allocated to remaining performance obligations is expected to be recognized as revenue of HK$47,270 thousand within one year, and HK$635 thousand after one year[33] 5.2 Other Business Income and Other Income and Gains Other Business Income | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Recovery of VAT refunds | 312 | 131 | | Dividend income from listed investments at fair value through profit or loss | 92 | 98 | | Others | 843 | 122 | | Total | 1,247 | 408 | Other Income and Gains | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Bank interest income | 6,282 | 7,236 | | Gain on lease modification | 3 | - | | Total | 6,285 | 7,236 | 6. Profit Before Tax Profit before tax was HK$21,527 thousand, primarily influenced by depreciation, amortization, and employee benefit expenses, with total employee benefit expenses of HK$76,486 thousand including HK$9,327 thousand in research and development costs Components of Profit Before Tax (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 664 | 313 | | Depreciation of right-of-use assets | 2,387 | 4,045 | | Amortisation of other intangible assets | 6,449 | 6,673 | | Total employee benefit expenses | 76,486 | 77,430 | | Net impairment loss/(reversal of impairment loss) on trade receivables | (106) | 394 | - Employee benefit expenses include HK$9,327 thousand (2024: HK$9,689 thousand) for research and development costs of application software products[35] 7. Income Tax Income tax expense was HK$2,969 thousand, with Hong Kong profits tax at 16.5% and a two-tiered tax rate for some subsidiaries; the Group is discussing additional R&D deductions with the tax authority and has objected to protective assessments and purchased tax reserve certificates Income Tax Expense (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Current - Hong Kong | 4,131 | 3,974 | | Current - Other regions | 66 | 45 | | Deferred | (1,228) | (1,298) | | Total tax expense for the period | 2,969 | 2,721 | - Hong Kong profits tax rate is 16.5%, with some subsidiaries subject to an 8.25% tax rate on the first HK$2,000,000 of assessable profits[36] - The Group is discussing additional deductions for R&D expenses with the tax authority, has objected to protective assessments for several tax years, and purchased tax reserve certificates, with directors believing sufficient tax provisions have been made[37][38][39] 8. Dividends The Board of Directors declared an interim dividend of HK$0.055 per ordinary share, consistent with the prior year - The Board resolved to declare an interim dividend of HK$0.055 per ordinary share (2024: interim dividend of HK$0.055) payable in cash to the ordinary shareholders of the Company whose names appear on the register of members on Tuesday, September 2, 2025[41][82] - The final dividend for the previous financial year, approved and paid during the interim period, amounted to HK$13,353 thousand (2024: HK$13,366 thousand)[40] 9. Earnings Per Ordinary Share Attributable to Owners of the Parent Basic earnings per share were 7.66 HK cents, and diluted earnings per share were 7.64 HK cents, both showing an increase compared to the prior year Earnings Per Share (For the six months ended June 30) | Metric | 2025 (HK cents) | 2024 (HK cents) | | :--- | :--- | :--- | | Basic earnings per share | 7.66 | 7.46 | | Diluted earnings per share | 7.64 | 7.42 | Number of Shares Used in Calculating Earnings Per Share (For the six months ended June 30) | Number of Shares | 2025 | 2024 | | :--- | :--- | :--- | | Weighted average number of ordinary shares in issue during the period used in calculating basic earnings per share | 242,787,539 | 243,670,021 | | Dilutive effect - weighted average number of ordinary shares: restricted shares granted under the Company's restricted share award scheme | 761,024 | 1,040,374 | | Number of shares used in calculating diluted earnings per share | 243,548,563 | 244,710,395 | 10. Trade Receivables As of June 30, 2025, net trade receivables were HK$28,526 thousand, a decrease from December 31, 2024; credit terms generally do not exceed 60 days, and management strictly controls overdue amounts Trade Receivables (Net) | Metric | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade receivables | 33,466 | 44,522 | | Impairment | (4,940) | (5,008) | | Net | 28,526 | 39,514 | Ageing Analysis of Trade Receivables (Net) | Ageing | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Within one month | 16,991 | 24,232 | | One to three months | 6,436 | 9,269 | | Four to six months | 3,352 | 3,177 | | Seven to twelve months | 1,747 | 2,836 | | Total | 28,526 | 39,514 | - Net reversal of impairment loss on trade receivables was HK$106 thousand (2024: impairment loss of HK$793 thousand)[46] 11. Trade Payables, Other Payables, Accruals and Provisions As of June 30, 2025, total trade payables, other payables, and accruals amounted to HK$61,052 thousand, a decrease from December 31, 2024, with trade payables generally settled within 30 days Trade Payables, Other Payables, Accruals and Provisions | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade payables | 8,661 | 12,176 | | Other payables | 31,877 | 31,034 | | Accruals | 19,694 | 27,264 | | Provisions | 820 | 795 | | Total | 61,052 | 71,269 | - Trade payables are generally settled within 30 days and are non-interest bearing[47] 12. Contingent Liabilities As of June 30, 2025, the Company provided guarantees of HK$31,700 thousand to banks for performance bonds/guarantees issued for certain Group contracts, of which HK$21,643 thousand was utilized at the reporting date - The Company has provided guarantees of HK$31,700 thousand to various banks for performance bonds/guarantees issued by them for certain contracts undertaken by the Group, of which HK$21,643 thousand was utilized as at the reporting date[48] Chairman's Statement Review Despite challenging economic conditions, the Group's net revenue after direct third-party costs slightly decreased by 1.7%, but gross profit margin improved to 56.7%; operating profit grew by 23.3% due to streamlined processes and cost control, and consolidated net profit attributable to shareholders moderately increased by 2.4%, with the Board declaring an interim dividend of HK$0.055 per share - Net revenue after direct third-party costs recorded HK$108.0 million, a slight decrease of 1.7% compared to the same period last year[49] - Gross profit margin increased to 56.7% (2024: 54.1%), operating profit increased by 23.3% to HK$17.7 million, and operating profit margin improved from 11.3% to 14.7%[49] - Consolidated net profit attributable to shareholders moderately increased by 2.4% to HK$18.6 million, with basic earnings per share increasing to 7.66 HK cents[50] - The Board declared an interim dividend of 5.5 HK cents per ordinary share, consistent with the previous payment[50] Business Review The Group's business segments demonstrated resilience amidst macroeconomic challenges; Application Software revenue declined but SaaS orders grew with active AI R&D, Solutions and Integration Services saw reduced revenue but stable maintenance income and sought China collaborations, e-services outperformed, and Investments recorded a loss due to market sentiment Application Software - Overall revenue for the Application Software segment decreased, but recurring revenue from Software-as-a-Service (SaaS) orders continued to grow, successfully maintaining segment profitability[51] - Pi HCM (cloud-native Human Capital Management software) secured several new client contracts, including one of Hong Kong's largest cleaning service groups, a major statutory body under the HKSAR Government, and a vibrant digital technology hub in Hong Kong[52] - Profit contribution from the enterprise procurement management software business decreased due to increased resource allocation for deploying the new ProSmart 3.0 version with cloud-native architecture and AI capabilities[53] - The Group remains committed to innovation, continuously investing in product R&D to reshape its software portfolio with new AI functionalities[54] Solutions and Integration Services - Revenue for the Solutions and Integration Services segment decreased by 8.7% to HK$51.6 million, primarily due to reduced professional service income and lack of third-party product sales, yet maintained stable recurring maintenance revenue[55] - Managed services continued to generate strong recurring revenue during the period, while development services capitalized on new opportunities in high-demand areas such as cybersecurity and independent testing services for government and other organizations[55] - The Group is establishing strategic partnerships with leading innovative technology companies in mainland China to capitalize on the increasing adoption of AI technology and the drive for technology localization in both mainland China and Hong Kong[55] Electronic Services and Related Businesses - The Group's GETS business outperformed the market, recording double-digit growth in both revenue and profit contribution during the reporting period[57] Investments - The challenging market environment continued to negatively impact the valuation of the Group's investment properties, resulting in a HK$2.0 million valuation markdown (2024: HK$1.0 million) and a HK$0.8 million loss for the Investment segment[58] Outlook Despite mixed global economic prospects and potential pressure on Hong Kong government IT spending, the Group is well-equipped to face challenges with stringent cost management, precise marketing, recurring revenue from a large customer base, and a strong SaaS portfolio, while actively exploring overseas joint venture and M&A opportunities - The global economic outlook is mixed, and Hong Kong's fiscal deficit may lead to pressure on government IT spending, potentially affecting the Group's performance in the second half of 2025[59] - The Group is well-positioned to navigate the current environment with stringent cost management, precise marketing strategies, recurring revenue from a large existing customer base, and a strong Software-as-a-Service portfolio based on cloud-native architecture[59] - The Group is actively exploring various joint venture and merger and acquisition opportunities to expand into overseas markets, with a strategic initiative expected to materialize in the second half of the year[59] Financial Review Net Revenue After Direct Third-Party Costs Net revenue after direct third-party costs slightly decreased by 1.7% to HK$108.0 million, primarily due to reduced professional service revenue recognition and delayed new contracts, though recurring revenue maintained stable growth - Net revenue after direct third-party costs slightly decreased by 1.7% to HK$108.0 million, primarily due to reduced professional service revenue recognition and delayed new contracts[61] - Recurring revenue, including maintenance and Software-as-a-Service income, continued to maintain stable growth[61] - Cost of goods and services decreased by 30.9% to HK$12.3 million, mainly due to reduced third-party product sales and outsourced services[61] Staff Costs and Other Operating Expenses/Income Overall staff costs decreased by 1.2% due to headcount streamlining; sales and distribution expenses slightly increased, while net general and administrative expenses decreased by 10.7% due to office relocation and operational efficiency; other intangible asset amortization continued to decline, and other operating income increased due to government subsidies - Overall staff costs decreased by 1.2% to HK$76.5 million due to headcount streamlining[61] - Net general and administrative expenses decreased by 10.7% to HK$26.7 million, benefiting from office relocation and improved operational efficiency[62] - Amortization of other intangible assets decreased by 3.4% to HK$6.4 million, while other operating income increased with the receipt of multiple government subsidies[63][64] Operating Profit Benefiting from cost and expense savings, operating profit increased by 23.3% to HK$17.7 million, with the operating profit margin improving to 14.7% - Benefiting from cost and expense savings, operating profit increased by HK$3.3 million, or 23.3%, to HK$17.7 million[65] - The operating profit margin also improved, rising from 11.3% in the same period last year to 14.7% this year[65] Net Non-Operating Income and Gains Other income and gains decreased by 13.1%, mainly due to lower bank interest income; investment properties recorded a HK$2.0 million fair value markdown, but a buoyant stock market led to a HK$0.3 million fair value gain on financial assets - Other income and gains decreased by 13.1% to HK$6.3 million, primarily due to lower bank interest income during the reporting period[65] - Investment properties recorded a fair value markdown of HK$2.0 million (2024: HK$1.0 million), reflecting subdued market sentiment[65] - A buoyant stock market positively impacted the valuation of financial assets, resulting in a fair value gain of HK$0.3 million (2024: loss of HK$0.2 million)[65] Income Tax Expense Income tax expense increased by 9.1% to HK$3.0 million, consistent with the rise in local assessable profits - Consistent with the increase in local assessable profits, income tax expense increased by HK$0.2 million, or 9.1%, to HK$3.0 million[66] Net Profit Profit attributable to owners of the Company slightly increased by 2.4% to HK$18.6 million, with the net profit margin improving to 15.5% - Profit attributable to owners of the Company slightly increased by HK$0.4 million, or 2.4%, to HK$18.6 million[67] - The net profit margin (calculated as profit attributable to owners for the period divided by total revenue) improved to 15.5% (2024: 14.2%)[67] Non-Current Assets Non-current assets moderately decreased by 4.2% to HK$228.1 million, primarily due to amortization of other intangible assets, investment property valuation markdown, and depreciation of right-of-use assets - Non-current assets moderately decreased by HK$9.9 million, or 4.2%, to HK$228.1 million as of June 30, 2025[68] - This decrease was primarily due to the ongoing amortization of other intangible assets, the valuation markdown of investment properties, and depreciation of right-of-use assets[68] Current Assets Current assets slightly decreased by 1.4% to HK$428.7 million, mainly due to reduced trade receivables, prepayments, and cash balances, partially offset by increases in contract assets and refundable taxes - Current assets slightly decreased by 1.4% to HK$428.7 million as of June 30, 2025[69] - This change was primarily due to decreases in trade receivables, prepayments and deposits paid, and cash and bank balances, partially offset by increases in contract assets and refundable taxes[69] Current and Non-Current Liabilities Total current and non-current liabilities decreased by 13.1% to HK$148.0 million, primarily due to reductions in trade payables, contract liabilities, and lease liabilities - The Group's current and non-current liabilities decreased by HK$22.4 million, or 13.1%, to HK$148.0 million[70] - This decrease was primarily due to reductions in trade payables, contract liabilities, and lease liabilities[70] Segment Assets and Liabilities Both Application Services and Solutions and Integration Services segments saw decreases in assets and liabilities, while Investment segment assets declined due to investment property valuation markdown - Segment assets for the Application Services business decreased, primarily due to amortization of other intangible assets, and reductions in right-of-use assets and trade receivables. Correspondingly, segment liabilities also decreased, reflecting a decline in accruals, contract liabilities, and lease liabilities[71] - Segment assets for the Solutions and Integration Services segment also decreased, due to reductions in trade receivables, prepayments, and deposits. Segment liabilities decreased, primarily due to reductions in trade payables and other payables, as well as contract liabilities[71] - Assets in the Investment segment decreased, primarily due to the valuation markdown of an investment property[72] Equity Attributable to Owners of the Parent Total equity attributable to owners of the parent remained largely stable at HK$507.6 million as of June 30, 2025, with a slight increase reflecting profit generated during the period, partially offset by the final dividend paid - Total equity attributable to owners of the parent remained largely stable at HK$507.6 million as of June 30, 2025 (December 31, 2024: HK$501.1 million), a slight increase of 1.3%[73] - The slight increase primarily reflects profit generated during the period, partially offset by the final dividend paid for 2024[73] Other Information Treasury Policy The Group has adopted a prudent financial management approach to its treasury policy, maintaining a healthy liquidity position throughout the review period, and is committed to mitigating credit risk through continuous credit assessments and evaluating customer financial standing; to manage liquidity risk, the Board closely monitors the Group's liquidity to ensure its asset, liability, and other commitment liquidity structure can meet its funding needs - The Group has adopted a prudent financial management approach to its treasury policy, maintaining a healthy liquidity position[74] - Committed to mitigating credit risk through continuous credit assessments and closely monitoring liquidity to meet funding needs[74] Pledge of Assets As of June 30, 2025, the Group pledged an investment property with a fair value of HK$55.0 million and bank balances of HK$0.2 million as security for general banking facilities, including guarantees/performance bonds totaling HK$33.9 million, of which HK$21.8 million was utilized - As of June 30, 2025, the Group pledged an investment property with a fair value of HK$55.0 million and bank balances of HK$0.2 million[75] - These were pledged as security for general banking facilities granted to the Group, including guarantees/performance bonds totaling HK$33.9 million, of which HK$21.8 million was utilized[75] Financial Resources and Liquidity As of June 30, 2025, the Group's cash and cash equivalents were HK$326.9 million, with a current ratio of 3.3 and a gearing ratio of 22.5%, indicating a sound financial position - As of June 30, 2025, the Group's cash and cash equivalents amounted to HK$326.9 million (December 31, 2024: HK$128.9 million)[76] - The Group's current ratio was 3.3 (December 31, 2024: 2.9), and the gearing ratio was 22.5% (December 31, 2024: 25.3%)[76] - The Group has no bank borrowings and has not adopted any hedging policies, but closely monitors foreign exchange risk[76] Remuneration Policy and Employee Numbers The Group remunerates employees based on performance, experience, and market conditions, offering discretionary bonuses and other incentives for their contributions; as of June 30, 2025, the Group employed 335 full-time and 10 part-time employees and operates a share award scheme - The Group remunerates employees based on their performance, work experience, and prevailing market conditions, and may offer discretionary bonuses and other incentives[77] - As of June 30, 2025, the Group employed 335 full-time and 10 part-time employees (December 31, 2024: 337 full-time and 10 part-time employees)[77] - The Company has established a share award scheme to incentivize and reward employees who contribute to the Group's business success and to retain them for the Group's continued development[77] Significant Investments and Transactions As of June 30, 2025, the Group held no significant investments and undertook no major transactions involving the acquisition or disposal of subsidiaries - Save as disclosed in this announcement, the Group did not hold any significant investments as at June 30, 2025[78] - Save as disclosed in this announcement, the Group did not undertake any significant transactions involving the acquisition or disposal of subsidiaries during the period and up to the date of this announcement[79] Future Plans for Material Investments or Capital Assets As of June 30, 2025, the Group had no specific plans for material investments or capital assets - As of June 30, 2025, the Group had no specific plans for material investments or capital assets[80] Contingent Liabilities Aside from the disclosed performance bonds/guarantees, the Group had no other significant contingent liabilities as of June 30, 2025 - Save as disclosed in this announcement, the Group had no significant contingent liabilities as at June 30, 2025[81] Interim Dividend and Closure of Register of Members The Board declared an interim dividend of HK$0.055 per share; to qualify for the dividend, the register of members will be closed from September 1 to September 2, 2025 - The Board declared an interim dividend of HK$0.055 per ordinary share for the six months ended June 30, 2025[82] - The Company's register of members will be closed from Monday, September 1, 2025, to Tuesday, September 2, 2025 (both days inclusive)[83] - The dividend will be paid on or about Tuesday, September 16, 2025, to shareholders whose names appear on the Company's register of members on Tuesday, September 2, 2025 (the record date)[83] Purchase, Redemption or Sale of the Company's Listed Securities Neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities during the period - Neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities during the period[84] Corporate Governance Practices The Company is committed to maintaining high standards of corporate governance, emphasizing integrity, transparency, and accountability, believing good governance is crucial for success and shareholder value; the Board confirms compliance with the Corporate Governance Code in Appendix C1 of the Listing Rules during the reporting period - The Company is committed to maintaining high standards of corporate governance, emphasizing integrity, high transparency, and accountability[85] - The Board believes that the Company has complied with the code provisions set out in the Corporate Governance Code in Appendix C1 of the Listing Rules throughout the reporting period[85] Standard Code for Securities Transactions The Company has adopted the Standard Code set out in Appendix C3 of the Listing Rules as the code of conduct for directors' securities transactions, and all directors complied with it during the reporting period - The Company has adopted the Standard Code as set out in Appendix C3 of the Listing Rules as the code of conduct for directors' dealings in the Company's securities[87] - Based on specific enquiries made to all directors of the Company, all directors have complied with the required standards set out in the Standard Code for the six months ended June 30, 2025[87] Risk Management Framework The Group has established an effective risk governance and management framework, overseen by the Board's Risk Management Committee, which regularly reviews and aligns risk appetite with business strategy; the Board considers the risk management and internal control systems effective - The Group has established an effective risk governance and management framework in accordance with the requirements set out in the Listing Rules and other regulations[88] - The Risk Management Committee, reporting to the Board, is designated as the highest authority responsible for the Group's risk management framework, directly participating in defining the Group's risk appetite[88] - The Board has reviewed and considers the Company's risk management and internal control systems to be effective and appropriate[89] Audit Committee The Audit Committee, comprising three independent non-executive directors, is responsible for reviewing and overseeing financial reporting, risk management, and internal controls, and has reviewed these interim results and report - The Company has established an Audit Committee in accordance with Rule 3.21 of the Listing Rules, comprising three independent non-executive directors[90] - Its purpose is to review and oversee the Group's financial reporting process, risk management, and internal controls, and it has reviewed the Group's interim results and interim report for the six months ended June 30, 2025[90] Publication of Interim Results and Interim Report This announcement is published on the websites of The Stock Exchange of Hong Kong Limited (www.hkexnews.hk) and the Company (www.ctil.com); the 2025 Interim Report will be available on these websites and sent to shareholders upon request - This announcement and the interim report have been published on the websites of The Stock Exchange of Hong Kong Limited (www.hkexnews.hk) and the Company (www.ctil.com)[91](index=91&type=chunk) Acknowledgement The Board and management extend their sincere gratitude to all staff, shareholders, customers, and business partners for their support - The Board and management extend their sincere gratitude to all staff, shareholders, customers, and business partners for their support to the Group during the period[92]