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湖州燃气(06661) - 2025 - 中期业绩
HUZHOU GASHUZHOU GAS(HK:06661)2025-08-22 08:30

Financial Highlights The Group's unaudited interim results for the six months ended June 30, 2025, show a decline in revenue, profit, and basic earnings per share Key Financial Indicators For the six months ended June 30, 2025, Huzhou Gas Co., Ltd. and its subsidiaries reported year-on-year decreases in revenue, profit, and basic earnings per share Key Financial Indicators (RMB Million) | Indicator | For the Six Months Ended June 30, 2025 (RMB Million) | For the Same Period in 2024 (RMB Million) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,090.4 | 1,192.0 | -8.52 | | Gross Profit | 139.0 | 151.3 | -8.13 | | Profit Attributable to Owners of the Group | 52.5 | 58.6 | -10.41 | | Basic Earnings Per Share (RMB) | 0.26 | 0.29 | -10.34 | Interim Condensed Consolidated Financial Statements This section presents the Group's interim condensed consolidated financial statements, including the income statement, statement of comprehensive income, and statement of financial position Interim Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, the Group's revenue decreased by 8.52% to RMB 1,090,375 thousand, with profit for the period also declining to RMB 82,360 thousand Interim Condensed Consolidated Statement of Profit or Loss (RMB Thousand) | Indicator | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Revenue | 1,090,375 | 1,192,008 | | Cost of Sales | (951,339) | (1,040,720) | | Gross Profit | 139,036 | 151,288 | | Other Income and Gains | 11,663 | 14,017 | | Selling and Distribution Expenses | (17,104) | (15,748) | | Administrative Expenses | (21,388) | (23,216) | | Impairment Loss on Financial Assets | (304) | (2,849) | | Other Expenses | (5,618) | (6,052) | | Finance Costs | (1,063) | (1,596) | | Share of Profit and Loss of a Joint Venture | 199 | 50 | | Profit Before Tax | 105,421 | 115,894 | | Income Tax Expense | (23,061) | (27,172) | | Profit for the Period | 82,360 | 88,722 | | Profit Attributable to Owners of the Parent | 52,467 | 58,562 | | Non-controlling Interests | 29,893 | 30,160 | | Basic Earnings Per Share (RMB) | 0.26 | 0.29 | Interim Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, the Group's total comprehensive income for the period decreased to RMB 82,354 thousand, primarily due to net other comprehensive loss Interim Condensed Consolidated Statement of Comprehensive Income (RMB Thousand) | Indicator | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Profit for the Period | 82,360 | 88,722 | | Net Other Comprehensive Income | (6) | 25 | | Total Comprehensive Income for the Period | 82,354 | 88,747 | | Total Comprehensive Income Attributable to Owners of the Parent | 52,461 | 58,587 | | Non-controlling Interests | 29,893 | 30,160 | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets less current liabilities were RMB 1,598,078 thousand, with net assets of RMB 1,306,551 thousand, reflecting changes in asset and liability components Interim Condensed Consolidated Statement of Financial Position (RMB Thousand) | Indicator | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Total Non-current Assets | 1,284,459 | 1,241,907 | | Total Current Assets | 965,114 | 967,988 | | Total Current Liabilities | 651,495 | 607,257 | | Net Current Assets | 313,619 | 360,731 | | Total Assets Less Current Liabilities | 1,598,078 | 1,602,638 | | Total Non-current Liabilities | 291,527 | 267,421 | | Net Assets | 1,306,551 | 1,335,217 | | Total Equity | 1,306,551 | 1,335,217 | Notes to the Interim Condensed Consolidated Financial Information This section provides detailed notes to the interim condensed consolidated financial information, covering company details, accounting policies, segment information, and various financial statement items Company Information Huzhou Gas Co., Ltd. is a China-incorporated company listed on the HKEX main board, primarily engaged in gas sales, construction services, and other energy-related activities in Huzhou City - The Company was incorporated in China and listed on the Main Board of the Hong Kong Stock Exchange since July 13, 20221011 - The Group's principal activities include the sale of piped natural gas and liquefied natural gas, provision of construction and installation services, and sale of household gas appliances, energy, distributed photovoltaic power, and property leasing15 Basis of Preparation and Changes in Accounting Policies The interim condensed consolidated financial information is prepared in accordance with IAS 34, with no material impact from newly adopted IFRS amendments due to currency convertibility - The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 and should be read in conjunction with the 2024 annual consolidated financial statements12 - Newly adopted revised IFRS accounting standards have no impact on the interim condensed consolidated financial information due to the convertibility of the Group's transaction and functional currencies1314 Operating Segment Information The Group operates as a single reportable segment encompassing gas sales, construction, and other activities, with all revenue generated from mainland China and no significant seasonality risk - The Group has only one reportable operating segment, covering gas sales, construction and installation services, and other activities, thus no further segment analysis is presented16 - All revenue is derived from mainland China, and management assesses that the business does not face "highly seasonal" risks, despite typically higher gas consumption for heating in winter171819 Revenue Analysis For the six months ended June 30, 2025, the Group's total revenue decreased by 8.52% to RMB 1,090,375 thousand, primarily from gas and energy sales and construction services, with piped natural gas remaining the largest but declining source Revenue Analysis (RMB Thousand) | Revenue Source | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Sales of Gas, Energy and Other Goods | 996,977 | 1,087,845 | | Provision of Construction and Installation Services | 80,794 | 95,727 | | Distributed Photovoltaic Power | 10,512 | 6,022 | | Others | 3,690 | 4,504 | | Total Rental Income | 103 | 214 | | Total (Net of Government Surcharges) | 1,090,375 | 1,192,008 | | By Type of Goods or Services: | | | | Sales of Piped Natural Gas | 945,717 | 1,038,300 | | Sales of Liquefied Natural Gas | 22,516 | 32,282 | | Sales of Household Gas Appliances and Related Equipment | 14,395 | 10,608 | | Sales of Energy | 14,349 | 6,655 | | Sales of Distributed Photovoltaic Power | 10,512 | 6,022 | | By Timing of Revenue Recognition: | | | | Goods or Services Transferred at a Point in Time | 1,011,179 | 1,098,371 | | Services Transferred Over Time | 80,794 | 95,727 | Other Income and Gains For the six months ended June 30, 2025, the Group's total other income and gains decreased by 16.43% to RMB 11,663 thousand, primarily due to lower bank interest income, despite new interest from fixed deposits and fair value gains on wealth management products Other Income and Gains (RMB Thousand) | Category | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Bank Interest Income | 3,344 | 12,915 | | Bank Fixed Deposit Interest Income | 4,118 | – | | Finance Income from Net Investment in Leases | 365 | 370 | | Government Grants | 2,577 | 589 | | Other Income | 212 | 109 | | Gain on Disposal of Property, Plant and Equipment | – | 34 | | Fair Value Gain on Wealth Management Products | 1,047 | – | | Total | 11,663 | 14,017 | - Other income and gains decreased by 16.43% year-on-year, primarily due to a decline in bank interest income21 Profit Before Tax For the six months ended June 30, 2025, the Group's profit before tax decreased to RMB 105,421 thousand, influenced by cost of sales, service provision, depreciation, and improved net impairment of financial assets Profit Before Tax (RMB Thousand) | Item | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Cost of Inventories Sold | 912,143 | 990,580 | | Cost of Services Provided | 39,196 | 50,140 | | Depreciation of Property, Plant and Equipment | 35,311 | 30,311 | | Depreciation of Right-of-use Assets | 1,503 | 1,197 | | Amortisation of Other Intangible Assets | 3,727 | 3,724 | | Net Impairment of Financial Assets | 304 | 2,849 | | Bank Interest Income | (3,344) | (12,915) | | Bank Fixed Deposit Interest Income | (4,118) | – | | Fair Value Gain on Wealth Management Products | (1,047) | – | | Interest Expense on Lease Liabilities | 666 | 486 | Income Tax Expense For the six months ended June 30, 2025, income tax expense decreased by 15.07% to RMB 23,061 thousand, with the effective tax rate falling to 21.92%, driven by preferential tax policies and R&D expense deductions Income Tax Expense (RMB Thousand) | Income Tax Category | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Current Tax | 32,665 | 29,419 | | Deferred Tax | (9,604) | (2,247) | | Total Tax Expense for the Period | 23,061 | 27,172 | | Effective Tax Rate | 21.92% | 23.47% | - The decrease in income tax expense and effective tax rate is primarily due to certain subsidiaries enjoying preferential tax policies (such as 'three-year exemption and three-year half reduction' for distributed photovoltaic power projects and a 15% tax rate for high-tech enterprises) and additional deductions for R&D expenses23242547 Earnings Per Share Attributable to Ordinary Equity Holders of the Parent For the six months ended June 30, 2025, profit attributable to ordinary equity holders of the parent was RMB 52,467 thousand, with basic earnings per share at RMB 0.26 (25.9 cents), a decrease from the prior year, and no potential dilutive ordinary shares outstanding Earnings Per Share (RMB Thousand / Number of Shares) | Indicator | 2025 (RMB Thousand / Number of Shares) | 2024 (RMB Thousand / Number of Shares) | | :--- | :--- | :--- | | Profit Attributable to Ordinary Equity Holders of the Parent | 52,467 | 58,562 | | Weighted Average Number of Ordinary Shares | 202,714,500 | 202,714,500 | | Basic Earnings Per Share (RMB Cents) | 25.9 | 28.9 | - There were no potential dilutive ordinary shares outstanding during the reporting period28 Property, Plant and Equipment As of June 30, 2025, the Group's property, plant, and equipment increased to RMB 1,082,002 thousand, driven by additions of RMB 82,140 thousand, offset by depreciation and disposals Property, Plant and Equipment (RMB Thousand) | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Carrying Amount at Beginning of Period/Year | 1,045,193 | 1,006,754 | | Additions | 82,140 | 185,708 | | Depreciation Expense for the Period/Year | (35,311) | (64,037) | | Disposals | (10,020) | (84,072) | | Carrying Amount at End of Period/Year | 1,082,002 | 1,045,193 | Trade and Bills Receivables As of June 30, 2025, the Group's total trade and bills receivables decreased to RMB 47,284 thousand, with the majority of receivables due within three months Trade and Bills Receivables (RMB Thousand) | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Trade Receivables (Net of Impairment) | 33,145 | 37,645 | | Bills Receivables | 14,139 | 16,821 | | Total | 47,284 | 54,466 | | Ageing Analysis: | | | | Within 3 Months | 44,849 | 52,490 | | 3 to 6 Months | 2,240 | 1,634 | | 6 Months to 1 Year | 195 | 342 | Pledged Deposits As of June 30, 2025, the Group's pledged deposits remained at RMB 20 thousand, primarily consisting of ETC deposits Pledged Deposits (RMB Thousand) | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | ETC Deposits | 20 | 20 | Trade and Bills Payables As of June 30, 2025, the Group's total trade and bills payables decreased to RMB 108,062 thousand, with the majority due within one year Trade and Bills Payables (RMB Thousand) | Ageing | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Within 1 Year | 101,061 | 123,566 | | Over 1 Year | 7,001 | 4,177 | | Total | 108,062 | 127,743 | Interest-bearing Bank Borrowings As of June 30, 2025, the Group's total interest-bearing bank borrowings increased to RMB 23,100 thousand, secured by future revenue from a subsidiary's photovoltaic projects and bearing interest at LPR minus 40 basis points Interest-bearing Bank Borrowings (RMB Thousand) | Category | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Current Bank Loans | 800 | 300 | | Non-current Bank Loans | 22,300 | 14,550 | | Total | 23,100 | 14,850 | | Repayment Date Analysis: | | | | Within One Year or On Demand | 800 | 300 | | Second Year | 1,000 | 500 | | Third to Fifth Year | 4,650 | 2,700 | | Over Five Years | 16,650 | 11,350 | - Bank loans are pledged against future photovoltaic revenue from six photovoltaic projects of a subsidiary and bear interest at the Loan Prime Rate (LPR) minus 40 basis points33 Share Capital As of June 30, 2025, the Company's ordinary share capital remained unchanged at 202,714,500 shares with a par value of RMB 202,715 thousand Share Capital (RMB Thousand) | Item | Number of Shares | Par Value (RMB Thousand) | | :--- | :--- | :--- | | December 31, 2024 (Audited) | 202,714,500 | 202,715 | | June 30, 2025 (Unaudited) | 202,714,500 | 202,715 | Management Discussion and Analysis This section provides an overview of the industry, the Group's development strategies, performance review, financial overview, liquidity, and other relevant operational and financial information Industry Overview In H1 2025, China's economy grew by 5.3%, while national natural gas consumption declined by 0.9%, with government policies on 'resilient cities' and pipeline reform presenting opportunities for urban gas companies - In the first half of 2025, China's economy grew by 5.3%, while national apparent natural gas consumption decreased by 0.9% year-on-year35 - National policies prioritize 'resilient city' construction and 'upgrading old pipelines,' and promote the transition of provincial natural gas pipeline transmission pricing from 'one price per line' to a unified provincial system, aiming to reduce costs and support the development of urban gas enterprises3637 Development Strategies and Outlook The Group focuses on 'safety, development, and reform,' driven by technological innovation to build a clean, low-carbon, safe, and efficient energy system, optimizing gas sourcing, enhancing energy O&M, and expanding value-added services - The Group is committed to the three major tasks of 'safety, development, and reform,' driven by technological innovation to accelerate the construction of a clean, low-carbon, safe, and efficient new energy system38 - Actively exploring optimized gas source access, reducing procurement costs, strengthening energy operation and maintenance management, building a 'smart cloud' platform, promoting intelligent and unmanned gate station upgrades, and applying pipeline inspection robots39 - Exploring a 'self-generation and self-consumption + surplus power grid connection' model, enhancing energy efficiency through a 'gas + electricity + heat' multi-energy complementary approach, and seizing the 'trade-in' policy opportunity to upgrade business halls and expand value-added services like kitchen renovations3940 Performance Review In H1 2025, the Group enhanced its 'gas + clean energy' dual-core business, achieved zero major safety hazards, accelerated digital transformation, and served 327,400 residential and 3,805 commercial users, with gas sales of 282 million cubic meters, a 5.22% decrease - The Group continues to improve its 'gas + clean energy' dual-core synergistic development system and has achieved dynamic clearance of Level 1 hazards for industrial and commercial users within its jurisdiction41 - Accelerating digital transformation, establishing a smart research institute, and releasing the nation's first provincial smart gas report, gaining a first-mover advantage in the industry41 Performance Indicators | Indicator | June 30, 2025 | | :--- | :--- | | Residential Users | 327,400 households | | Industrial and Commercial Users | 3,805 households | | Gas Sales Volume | 282 million cubic meters (5.22% year-on-year decrease) | | Natural Gas Pipeline Length | Approximately 1,734.66 km | Financial Overview The Group's H1 2025 financial performance saw revenue and gross profit decline due to reduced gas sales and lower non-residential gas prices, while other income decreased, finance costs fell, and income tax expense was reduced by preferential policies, resulting in a 10.41% decrease in profit attributable to owners of the parent Revenue The Group's revenue decreased by 8.52% to RMB 1,090.4 million, primarily due to reduced piped natural gas sales volume and lower non-residential sales prices Revenue (RMB Million) | Indicator | 2025 (RMB Million) | 2024 (RMB Million) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,090.4 | 1,192.0 | -8.52 | - The decrease in revenue is primarily attributable to reduced piped natural gas sales volume and lower sales prices for non-residential natural gas users43 Gross Profit The Group's gross profit decreased by 8.13% to RMB 139.0 million, mainly impacted by reduced natural gas sales volume and lower non-residential sales prices Gross Profit (RMB Million) | Indicator | 2025 (RMB Million) | 2024 (RMB Million) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 139.0 | 151.3 | -8.13 | - The decrease in gross profit is primarily due to reduced natural gas sales volume and lower sales prices for non-residential natural gas users44 Other Income and Gains The Group's other income and gains decreased by 16.43% to RMB 11.7 million, primarily due to a reduction in interest income Other Income and Gains (RMB Million) | Indicator | 2025 (RMB Million) | 2024 (RMB Million) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Other Income and Gains | 11.7 | 14.0 | -16.43 | - The decrease in other income and gains is primarily due to a reduction in interest income generated by the Group during the reporting period45 Finance Costs The Group's finance costs decreased by 31.25% to RMB 1.1 million, primarily due to reduced bank borrowings and lower interest expenses Finance Costs (RMB Million) | Indicator | 2025 (RMB Million) | 2024 (RMB Million) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs | 1.1 | 1.6 | -31.25 | - The decrease in finance costs is primarily due to a reduction in bank borrowings and lower interest expenses during the reporting period46 Income Tax Expense The Group's income tax expense decreased by 15.07% to RMB 23.1 million, with the effective tax rate falling to 21.92%, primarily due to preferential tax policies and R&D expense deductions for certain subsidiaries, including a 15% rate for Xin'ao Development as a high-tech enterprise Income Tax Expense (RMB Million) | Indicator | 2025 (RMB Million) | 2024 (RMB Million) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Income Tax Expense | 23.1 | 27.2 | -15.07 | | Effective Tax Rate | 21.92% | 23.47% | -1.55pp | - The decrease in income tax expense and effective tax rate is primarily due to certain subsidiaries within the Group enjoying preferential tax rates and R&D expense additional deduction tax policies, as well as Xin'ao Development being recognized as a high-tech enterprise, applying a 15% preferential tax rate47 Profit Attributable to Owners of the Parent Profit attributable to owners of the parent decreased by 10.41% to RMB 52.5 million, primarily due to reduced piped natural gas sales volume and lower non-residential sales prices, leading to decreased gross profit Profit Attributable to Owners of the Parent (RMB Million) | Indicator | 2025 (RMB Million) | 2024 (RMB Million) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Profit Attributable to Owners of the Parent | 52.5 | 58.6 | -10.41 | - The decrease in profit is primarily due to reduced piped natural gas sales volume and lower sales prices for non-residential natural gas during the period, leading to a decrease in gross profit from piped natural gas sales48 Liquidity and Financial Position As of June 30, 2025, the Group maintained a net cash position with RMB 965.1 million in current assets, RMB 296.6 million in cash, a current ratio of 1.48, and RMB 266.2 million in unutilized bank facilities, partly for photovoltaic business expansion Liquidity and Financial Position | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current Assets | RMB 965.1 Million | RMB 968.0 Million | | Cash and Bank Balances | RMB 296.6 Million | RMB 828.5 Million | | Current Ratio | 1.48 | 1.59 | | Asset-Liability Ratio | 41.92% | 39.58% | | Capital-Gearing Ratio | 3.83% | 2.97% | - The Group maintains a net cash position and has RMB 266.2 million in unutilized bank credit facilities5051 - Part of the bank loans are used for the photovoltaic business expansion of Huzhou Hurun New Energy Development Co., Ltd., a subsidiary50 Exchange Rate Fluctuation Risk The Group's foreign exchange risk is primarily related to HKD-denominated cash and cash equivalents, as most revenue and expenses are denominated in RMB, resulting in no significant exchange rate risk - The Group's vast majority of income and expenses are denominated in RMB, and the foreign exchange risk faced is mainly related to cash and cash equivalents denominated in HKD, but there is no significant exchange rate risk52 Contingent Liabilities, Financial Guarantee Commitments and Pledged Assets As of June 30, 2025, the Group had no other significant contingent liabilities, material financial guarantee commitments, or pledged assets - As of June 30, 2025, the Group had no other significant contingent liabilities53 - As of June 30, 2025, the Group had no material financial guarantee commitments54 - As of June 30, 2025, the Group had no pledged assets55 Material Investments Held, Material Acquisitions or Disposals, and Future Plans for Material Investments or Capital Assets During the reporting period, the Group held no material investments, undertook no significant acquisitions or disposals of subsidiaries, associates, or joint ventures, and had no future plans for material investments or capital assets as of the announcement date - During the reporting period, the Group held no material investments and did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures56 - As of the date of this announcement, the Company has no future plans for any material investments or capital assets56 Human Resources and Employee Remuneration As of June 30, 2025, the Group employed 452 staff with total employee costs of approximately RMB 54.6 million, continuously enhancing staff professionalism and quality through targeted training and competitive remuneration Human Resources and Employee Remuneration | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total Number of Employees | 452 persons | 438 persons | | Total Employee Costs | Approximately RMB 54.6 Million | - | - The Group enhances the professional level and overall quality of its employees by providing targeted training programs and competitive remuneration packages57 Events After the Reporting Period No significant events have occurred from the end of the reporting period up to the date of this announcement - No significant events have occurred from the end of the reporting period up to the date of this announcement58 Material Litigation During the reporting period, the Company was not involved in any material litigation or arbitration, and the Directors are unaware of any outstanding or threatened material litigation or claims against the Group - During the reporting period, the Company was not involved in any material litigation or arbitration, and the Directors are not aware of any outstanding or threatened material litigation or claims against the Group59 Use of Net Proceeds from Listing The net proceeds from the H-share global offering were approximately RMB 236.9 million, with RMB 149.859 million utilized for network upgrades, photovoltaic business expansion, and working capital, leaving RMB 87.041 million for strategic acquisitions and gas boiler heat utilization, expected to be used by end of 2026 Use of Net Proceeds from Listing (RMB Thousand) | Intended Use | Allocation Percentage | Allocated Amount (RMB Thousand) | Utilized (RMB Thousand) | Unutilized (RMB Thousand) | Expected Utilization Date | | :--- | :--- | :--- | :--- | :--- | :--- | | Upgrading Pipeline Network and Operating Facilities | 20% | 47,400 | 47,400 | 0 | - | | Strategic Acquisitions | 30% | 71,000 | 0 | 71,000 | By end of 2026 | | Expanding Distributed Photovoltaic Power Generation Business | 30% | 71,000 | 71,000 | 0 | - | | Promoting Natural Gas Boiler Heat Utilization | 10% | 23,800 | 7,759 | 16,041 | By end of 2026 | | Working Capital and General Corporate Purposes | 10% | 23,700 | 23,700 | 0 | - | | Total | 100% | 236,900 | 149,859 | 87,041 | | - The unutilized net proceeds have been deposited in interest-bearing accounts with licensed banks60 Purchase, Sale or Redemption of the Company's Listed Securities During the reporting period, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and no treasury shares were held at the period end - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and no treasury shares were held as of the end of the reporting period61 Corporate Governance and Other Information This section details the Company's corporate governance practices, standards for securities transactions, interim dividend policy, audit committee review, and publication of interim results Corporate Governance The Company is committed to maintaining high standards of corporate governance, having adopted and complied with all code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules - The Company has adopted and complied with all code provisions of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules during the reporting period62 Standard Code for Securities Transactions The Company has adopted a code of conduct no less exacting than the Standard Code in Appendix C3 of the Listing Rules, with all Directors and Supervisors confirming compliance and no employee breaches identified during the period - The Company has adopted a code of conduct no less exacting than the Standard Code as set out in Appendix C3 to the Listing Rules, and all Directors and Supervisors have complied with it during the reporting period63 - This code of conduct also applies to employees who may possess unpublished price-sensitive information, and no breaches by employees were observed during the reporting period63 Interim Dividend The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 202564 Audit Committee and Review of Interim Financial Statements The Audit Committee, in conjunction with management and external auditor Ernst & Young, has reviewed the Group's accounting principles, policies, and unaudited interim results, confirming compliance with applicable accounting standards and requirements - The Audit Committee has reviewed the Group's accounting principles, policies, and unaudited interim results with management and the external auditor, Ernst & Young65 - The review concluded that the interim results were prepared in compliance with applicable accounting standards and requirements, with adequate disclosures, and no disagreement on the accounting treatments adopted65 Publication of Interim Results and 2025 Interim Report This announcement and the Company's interim report will be published on the Company's and HKEX websites in due course, with printed copies dispatched upon shareholder request - This announcement and the Company's interim report for the reporting period will be published in due course on the Company's website (www.hzrqgf.com) and the HKEX website (http://www.hkexnews.hk)[66](index=66&type=chunk)