嘉华国际(00173) - 2025 - 中期业绩

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