粤海投资(00270) - 2025 - 中期业绩

Unaudited Financial Summary The company's unaudited financial summary for the six months ended June 30, 2025, shows a slight revenue decrease but growth in profit before tax and profit attributable to owners Unaudited Financial Summary for the Six Months Ended June 30 | Metric | 2025 (HK$ Thousand) | 2024 (Restated, HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue (Continuing Operations) | 9,428,291 | 9,486,866 | -0.6 | | Profit Before Tax | 4,105,084 | 3,848,913 | +6.7 | | Profit/(Loss) Attributable to Owners of the Company | 2,681,733 | 2,410,985 | +11.2 | | Earnings Per Share - Basic | HK$ 41.02 cents | HK$ 36.88 cents | +11.2 | | Interim Dividend Per Share | HK$ 26.66 cents | HK$ 23.97 cents | +11.2 | - The company completed the payment of a special dividend by way of a distribution in specie of Guangdong Land Holdings Limited shares on January 21, 2025[3] Consolidated Financial Information This section presents the condensed consolidated financial statements, including statements of profit or loss, comprehensive income, and financial position Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, the company's revenue from continuing operations slightly decreased, but profit before tax and profit attributable to owners increased, primarily due to significant finance cost savings Key Data from Condensed Consolidated Statement of Profit or Loss | Metric | 2025 (HK$ Thousand) | 2024 (Restated, HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue (Continuing Operations) | 9,428,291 | 9,486,866 | -0.6 | | Gross Profit | 5,246,448 | 5,307,492 | -1.1 | | Profit Before Tax | 4,105,084 | 3,848,913 | +6.7 | | Profit for the Period | 2,972,014 | 2,665,782 | +11.5 | | Profit Attributable to Owners of the Company (Continuing Operations) | 2,698,784 | 2,473,445 | +9.1 | | Profit Attributable to Owners of the Company (Discontinued Operations) | (17,051) | (62,460) | +72.7 | | Basic Earnings Per Share (Continuing Operations) | HK$ 41.28 cents | HK$ 37.83 cents | +9.1 | | Basic Earnings Per Share (Discontinued Operations) | HK$ (0.26) cents | HK$ (0.95) cents | +72.6 | - Finance costs significantly decreased from HK$492,799 thousand in 2024 to HK$341,461 thousand in 2025, effectively boosting profit before tax[5] - Losses from discontinued operations significantly narrowed from HK$118,025 thousand in 2024 to HK$21,267 thousand in 2025[5] Condensed Consolidated Statement of Comprehensive Income Total comprehensive income for the period significantly increased, primarily due to a shift from a loss to a substantial gain in exchange differences on translation of foreign operations Key Data from Condensed Consolidated Statement of Comprehensive Income | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Profit for the Period | 2,972,014 | 2,665,782 | +11.5 | | Exchange differences on translation of foreign operations - Subsidiaries | 754,910 | (387,431) | N/A | | Exchange differences on translation of foreign operations - Associates | 55,733 | (25,157) | N/A | | Other comprehensive income for the period, net of tax | 854,096 | (406,255) | N/A | | Total Comprehensive Income for the Period | 3,826,110 | 2,259,527 | +69.3 | | Attributable to Owners of the Company | 3,324,696 | 2,121,850 | +56.7 | | Attributable to Non-controlling Interests | 501,414 | 137,677 | +264.2 | - Exchange differences on translation of foreign operations shifted from a negative value of HK$412,588 thousand in 2024 to a positive value of HK$810,643 thousand in 2025, driving comprehensive income growth[7] Condensed Consolidated Statement of Financial Position As of June 30, 2025, total assets significantly decreased due to the Guangdong Land distribution, but equity attributable to owners of the company increased, and net current assets declined Key Data from Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (HK$ Thousand) | December 31, 2024 (Audited, HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 75,799,887 | 74,846,936 | +1.3 | | Total Current Assets | 21,297,597 | 60,748,467 | -64.9 | | Total Assets | 97,097,484 | 135,595,403 | -28.4 | | Total Current Liabilities | (17,992,857) | (55,737,907) | +67.7 | | Net Current Assets | 3,304,740 | 5,010,560 | -34.1 | | Net Assets | 55,849,970 | 56,675,473 | -1.4 | | Equity Attributable to Owners of the Company | 42,177,713 | 41,658,024 | +1.2 | | Non-controlling Interests | 13,672,257 | 15,017,449 | -8.9 | - Total assets decreased by approximately HK$38.498 billion, primarily due to the disposal of Guangdong Land Holdings Limited during the period[52] - Equity attributable to owners of the company increased by approximately HK$520 million, influenced by profit for the period, exchange differences on translation of foreign operations, and special dividend distribution[52] Notes to the Interim Financial Information This section provides detailed notes on the interim financial information, covering accounting policies, segment information, revenue, expenses, and other financial disclosures 1. Basic Information and Accounting Policies The company completed the distribution in specie of Guangdong Land shares on January 21, 2025, reclassifying its business as discontinued operations and restating 2024 comparative figures, with interim financial information prepared under HKAS 34 and Appendix D2 of the Listing Rules - On January 21, 2025, the company distributed 1,261,799,423 shares of Guangdong Land to its shareholders, representing approximately 99.9% of the company's holdings in Guangdong Land[10] - The consolidated results of Guangdong Land were presented as discontinued operations for the period from January 1, 2025, to January 21, 2025, with comparative figures for the corresponding period in 2024 restated[10] - The interim financial information complies with Hong Kong Accounting Standard 34 and the disclosure requirements of Appendix D2 to the Listing Rules of the Stock Exchange of Hong Kong Limited[11] 2. Changes in Accounting Policies and Disclosures During this interim period, the Group adopted revised Hong Kong Financial Reporting Standards, including amendments to HKAS 21, but these changes had no significant impact on financial position or performance - The Group has applied the revised Hong Kong Financial Reporting Standards issued by the HKICPA, which are mandatorily effective for annual periods beginning on or after January 1, 2025[13] - The application of the revised standards had no significant impact on the Group's financial position and performance for the current and prior periods and/or the disclosures in this interim financial information[13] 3. Operating Segment Information The Group is organized into seven reportable operating segments based on products and services: water resources, property investment, department store operations, power generation, hotel operations and management, roads and bridges, and other, with performance assessed by segment profit from continuing operations Segment Description The Group's seven operating segments include water resources, property investment, department store operations, power generation, hotel operations and management, roads and bridges, and an "Other" segment providing treasury and corporate services, with segment performance assessed based on adjusted profit before tax from continuing operations - The Group has seven reportable operating segments: water resources, property investment, department store operations, power generation, hotel operations and management, roads and bridges, and the "Other" segment[14] - Segment performance is assessed based on the measure of reportable segment profit/(loss) from continuing operations, which is adjusted profit/(loss) before tax from continuing operations[15] Segment Revenue and Results Water resources remain the primary revenue and profit contributor, property investment saw significant growth, department store operations revenue sharply declined but turned profitable, while power generation and roads and bridges revenue decreased, and hotel operations and management revenue grew but profit declined Major 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 (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Water Resources | 7,153,052 | 7,051,438 | +1.4 | 3,402,202 | 3,421,332 | -0.6 | | Property Investment | 810,718 | 778,698 | +4.1 | 479,589 | 425,405 | +12.7 | | Department Store Operations | 216,529 | 389,592 | -44.4 | 23,891 | (9,387) | N/A | | Power Generation | 610,859 | 629,462 | -3.0 | 84,580 | 77,302 | +9.4 | | Hotel Operations and Management | 336,393 | 315,188 | +6.7 | 51,438 | 60,216 | -14.5 | | Roads and Bridges | 300,740 | 322,488 | -6.8 | 221,187 | 225,158 | -1.8 | | Other | - | - | N/A | (16,023) | (62,418) | +74.3 | - Department store operations revenue significantly decreased by 44.4%, but successfully turned profitable, from a loss of HK$9,387 thousand in 2024 to a profit of HK$23,891 thousand in 2025[17] - Hotel operations and management segment revenue increased by 6.7%, but segment results decreased by 14.5%[18] Segment Assets and Liabilities As of June 30, 2025, water resources segment assets and liabilities both increased, while property investment, department store operations, hotel operations and management, and roads and bridges segments saw decreases in both assets and liabilities, with total assets and liabilities significantly declining due to the Guangdong Land distribution Major Segment Assets and Liabilities (As of June 30) | Segment | 2025 Assets (HK$ Thousand) | 2024 Assets (HK$ Thousand) | Asset Change (%) | 2025 Liabilities (HK$ Thousand) | 2024 Liabilities (HK$ Thousand) | Liability Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Water Resources | 53,608,445 | 52,149,340 | +2.8 | 10,504,828 | 11,119,142 | -5.5 | | Property Investment | 16,923,632 | 16,994,202 | -0.4 | 1,128,907 | 1,011,872 | +11.6 | | Department Store Operations | 267,182 | 334,442 | -20.1 | 680,118 | 870,400 | -21.9 | | Power Generation | 2,755,480 | 2,717,818 | +1.4 | 399,439 | 326,852 | +22.2 | | Hotel Operations and Management | 2,137,224 | 2,193,045 | -2.6 | 365,655 | 389,037 | -6.0 | | Roads and Bridges | 5,033,391 | 5,073,350 | -0.8 | 262,808 | 285,940 | -8.0 | | Consolidated Total Assets | 97,097,484 | 135,595,403 | -28.4 | 41,247,514 | 78,919,930 | -47.8 | - The significant decrease in consolidated total assets and liabilities is primarily attributable to Guangdong Land being classified as assets and liabilities held for distribution, and its subsequent distribution completion[23] 4. Revenue from Continuing Operations Total revenue from continuing operations slightly decreased by 0.6%, mainly due to reduced revenue from department store operations, power generation, and roads and bridges, with water resources remaining the largest revenue source, showing growth in Hong Kong water supply but a decline in Mainland China water supply Revenue from Continuing Operations by Type of Goods or Services (For the Six Months Ended June 30) | Type of Goods or Services | 2025 (HK$ Thousand) | 2024 (Restated, HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Water supply income - Mainland China | 2,283,572 | 2,203,364 | +3.6 | | Water supply income - Hong Kong | 2,868,545 | 2,801,585 | +2.4 | | Sewage treatment service income | 471,227 | 506,781 | -7.0 | | Construction service income | 187,111 | 135,463 | +38.1 | | Sale of equipment | 216,672 | 334,400 | -35.2 | | Commission income from concessionaire sales | 71,825 | 175,285 | -59.0 | | Sale of goods | 128,241 | 191,420 | -33.0 | | Sale of electricity and steam | 610,859 | 629,462 | -3.0 | | Hotel income | 315,621 | 292,751 | +7.8 | | Toll income | 289,948 | 312,881 | -7.3 | | Total revenue from contracts with customers | 8,321,571 | 8,386,359 | -0.8 | | Finance income from service concession arrangements | 388,461 | 397,460 | -2.3 | | Rental income | 718,259 | 703,047 | +2.2 | | Total Revenue | 9,428,291 | 9,486,866 | -0.6 | - By geographical area, revenue from Mainland China was HK$8,220,783 thousand (2024: HK$8,284,046 thousand), and from Hong Kong was HK$100,788 thousand (2024: HK$102,313 thousand)[25] - Commission income from concessionaire sales and sales of goods in the department store operations segment both significantly decreased, contributing to the overall revenue reduction[24] 5. Finance Costs from Continuing Operations Finance costs from continuing operations significantly decreased by 30.8%, primarily due to reduced interest on bank and other borrowings, loans from fellow subsidiaries, and loans from associates Finance Costs from Continuing Operations (For the Six Months Ended June 30) | Metric | 2025 (HK$ Thousand) | 2024 (Restated, HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Interest on bank and other borrowings | 301,503 | 411,783 | -26.8 | | Interest on loans from Guangdong Holdings | 216 | - | N/A | | Interest on loans from fellow subsidiaries | 31,726 | 50,220 | -36.8 | | Interest on loans from associates | 3,064 | 15,319 | -80.0 | | Interest on lease liabilities | 7,426 | 14,212 | -47.8 | | Finance costs incurred | 344,353 | 492,799 | -30.1 | | Less: Interest capitalised | (2,892) | - | N/A | | Total finance costs for the period | 341,461 | 492,799 | -30.8 | - The annual interest rate for capitalised borrowings used for the development of properties under construction and operating concessions ranged from 2.45% to 2.76% in the first half of 2025[26] 6. Profit Before Tax from Continuing Operations Profit before tax from continuing operations increased by 6.7%, mainly driven by reduced finance costs, despite a decrease in some revenue items like bank interest income, but with an increase in government grants Items Affecting Profit Before Tax from Continuing Operations (For the Six Months Ended June 30) | Item | 2025 (HK$ Thousand) | 2024 (Restated, HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Bank interest income | (43,827) | (78,996) | +44.5 | | Interest income from other financial assets measured at amortised cost | (40,587) | (6,399) | +534.3 | | Interest income from financial assets at fair value through profit or loss | (52,123) | (3,915) | +1231.5 | | Interest income from loans to fellow subsidiaries | (9,430) | - | N/A | | Cost of inventories sold | 642,123 | 840,182 | -23.6 | | Cost of services provided | 2,768,671 | 2,571,916 | +7.6 | | Depreciation of property, plant and equipment | 365,054 | 412,498 | -11.5 | | Government grants | (40,241) | (27,807) | +44.7 | | Amortisation of operating concessions | 771,049 | 767,276 | +0.5 | - Government grants increased by 44.7% from HK$27,807 thousand in 2024 to HK$40,241 thousand in 2025[27][30] 7. Income Tax Expense from Continuing Operations Income tax expense from continuing operations slightly increased, primarily due to an increase in deferred tax, while tax rates in Mainland China and Hong Kong remained unchanged Income Tax Expense from Continuing Operations (For the Six Months Ended June 30) | Metric | 2025 (HK$ Thousand) | 2024 (Restated, HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Current tax - Mainland China | 941,866 | 944,269 | -0.3 | | Under/(over) provision in prior years | 17,003 | (7,283) | N/A | | Current tax - Hong Kong | 5,216 | 7,203 | -27.5 | | Deferred tax | 147,718 | 120,917 | +22.2 | | Total tax expense for the period | 1,111,803 | 1,065,106 | +4.4 | - The corporate income tax rate in Mainland China is 25%, and the Hong Kong profits tax rate is 16.5%, both remaining unchanged from the previous year[31] 8. Discontinued Operations Guangdong Land completed its distribution on January 21, 2025, with its business classified as discontinued operations; as of the distribution date, losses from discontinued operations significantly narrowed, and net assets were distributed Results of Discontinued Operations For the period ended January 21, 2025, revenue from discontinued operations (Guangdong Land) significantly decreased, but loss before tax and loss for the period both substantially narrowed Results of Discontinued Operations (For the Period from January 1 to January 21, 2025) | Metric | Jan 1 to Jan 21, 2025 (HK$ Thousand) | For the Six Months Ended June 30, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 251,831 | 2,803,824 | -91.0 | | Gross Profit | 27,057 | 161,550 | -83.2 | | Loss Before Tax | (12,063) | (184,735) | +93.5 | | Loss for the Period | (21,267) | (118,025) | +82.0 | - Guangdong Land primarily engaged in property development and investment, and its business is no longer included in the operating segment information[33] Net Assets of Discontinued Operations at Distribution Date As of January 21, 2025, the carrying value of net assets distributed for Guangdong Land was HK$2,335,074 thousand, including significant property, plant and equipment, investment properties, and properties held for sale Details of Net Assets Distributed (As of January 21, 2025) | Item | Amount (HK$ Thousand) | | :--- | :--- | | Property, plant and equipment | 76,273 | | Investment properties | 8,924,967 | | Properties under development for sale | 13,313,856 | | Completed properties held for sale | 12,749,797 | | Total Assets | 39,986,628 | | Total Liabilities | (35,827,648) | | Carrying value of net assets | 4,158,980 | | Carrying value of net assets distributed | 2,335,074 | Assets and Liabilities Classified as Held for Distribution As of December 31, 2024, Guangdong Land's assets and liabilities were reclassified as held for distribution, with total assets of HK$40,663,069 thousand, total liabilities of HK$35,202,576 thousand, and total net assets of HK$5,460,493 thousand Assets and Liabilities Classified as Held for Distribution (As of December 31, 2024) | Item | Amount (HK$ Thousand) | | :--- | :--- | | Total assets classified as held for distribution | 40,663,069 | | Total liabilities directly associated with assets classified as held for distribution | (35,202,576) | | Total net assets directly associated with the disposal group | 5,460,493 | 9. Dividends The Board declared an interim dividend of HK$26.66 cents per ordinary share for the six months ended June 30, 2025, an 11.2% increase from the prior year, and completed the special dividend distribution of Guangdong Land shares on January 21, 2025 Interim Dividend | Year | Dividend Per Ordinary Share | Total Amount (HK$ Thousand) | | :--- | :--- | :--- | | 2025 | HK$ 26.66 cents | 1,742,983 | | 2024 | HK$ 23.97 cents | 1,567,116 | - The interim dividend is expected to be paid on October 23, 2025, to shareholders whose names appear on the company's register of members on October 10, 2025[92] - The company completed the distribution of 1,261,799,423 shares of Guangdong Land to shareholders as a special dividend on January 21, 2025[40] 10. Earnings Per Share Basic earnings per share from continuing operations increased by 9.1%, while the loss per share from discontinued operations significantly narrowed; diluted earnings per share are consistent with basic earnings per share due to no potential dilutive ordinary shares Data for Basic and Diluted Earnings/(Loss) Per Share Calculation (For the Six Months Ended June 30) | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Profit/(Loss) from continuing operations | 2,698,784 | 2,473,445 | | Profit/(Loss) from discontinued operations | (17,051) | (62,460) | | Total Profit/(Loss) | 2,681,733 | 2,410,985 | | Weighted average number of ordinary shares in issue (shares) | 6,537,821,440 | 6,537,821,440 | - Basic earnings per share from continuing operations were HK$41.28 cents, an increase of 9.1% from HK$37.83 cents in 2024[6] - Basic earnings per share loss from discontinued operations narrowed from HK$(0.95) cents in 2024 to HK$(0.26) cents in 2025[6] 11. Other Financial Assets Measured at Amortized Cost The Group's other financial assets measured at amortized cost are deposits placed with licensed banks in Mainland China, denominated in RMB, maturing within three years, and principal-protected - As of June 30, 2025, other financial assets measured at amortized cost amounted to HK$3,478,204 thousand (December 31, 2024: HK$3,384,857 thousand)[8] - These assets are deposits placed with various licensed banks in Mainland China, denominated in RMB, maturing within three years, and are principal-protected[43] 12. Trade and Other Receivables As of June 30, 2025, total trade receivables and bills increased to HK$4,811,634 thousand, with a significant increase in amounts overdue for over one year, indicating credit risk concentration with major customers Ageing Analysis of Trade Receivables and Bills (As of June 30) | Ageing | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Not overdue or overdue within 3 months | 2,967,878 | 2,282,981 | +30.0 | | Overdue 3 to 6 months | 260,396 | 303,668 | -14.2 | | Overdue 6 months to 1 year | 575,230 | 661,312 | -13.0 | | Overdue over 1 year | 1,046,110 | 627,659 | +66.7 | | Less: Loss allowance | (37,980) | (37,661) | +0.8 | | Total | 4,811,634 | 3,837,959 | +25.4 | - Trade receivables and bills are primarily related to water supply and sewage treatment businesses, with 10% (December 31, 2024: 8%) due from a major customer, indicating concentrated credit risk[44] 13. Trade and Other Payables As of June 30, 2025, total trade payables and bills slightly decreased, with most due within three months, indicating good short-term solvency Ageing Analysis of Trade Payables and Bills (As of June 30) | Ageing | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Within 3 months | 5,297,002 | 5,590,197 | -5.2 | | 3 to 6 months | 2,127 | 21,376 | -90.1 | | Total | 5,299,129 | 5,611,573 | -5.6 | - Trade payables, accrued liabilities, and other payables are non-interest bearing and generally settled within 60 days[46] 14. Bank and Other Borrowings As of June 30, 2025, total bank and other borrowings decreased, with loans from associates eliminated but new loans from the ultimate holding company introduced Composition of Bank and Other Borrowings (As of June 30) | Source | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Loans from Guangdong Holdings | 71,060 | - | N/A | | Loans from fellow subsidiaries | 2,353,088 | 2,570,889 | -8.4 | | Loans from associates | - | 917,915 | -100.0 | - Total financial borrowings from continuing operations amounted to HK$21.177 billion (December 31, 2024: HK$23.862 billion), with 17.0% denominated in HKD and 83.0% in RMB[76] 15. Contingent Liabilities As of June 30, 2025, the Group's bank guarantees for mortgage loans on properties sold significantly decreased to HK$1,007 thousand, primarily due to the distribution of Guangdong Land - The Group provided guarantees for mortgage loans granted by banks to purchasers of the Group's properties held for sale, amounting to HK$1,007 thousand (December 31, 2024: HK$4,714,446 thousand)[48] - The significant reduction in guaranteed amounts is mainly due to HK$4,709,488 thousand from Guangdong Land as of December 31, 2024, which was distributed during the period[48] Management Discussion and Analysis This section provides an overview of the Group's performance, business segments, financial position, and future outlook, including key risks and uncertainties Results and Financial Review Consolidated profit attributable to owners of the company increased by 11.2% to HK$2.682 billion for the period, with basic earnings per share growing proportionally; revenue from continuing operations slightly decreased by 0.6%, but profit before tax increased by 6.7% due to finance cost savings; total assets decreased due to Guangdong Land disposal, but equity attributable to owners of the company increased Financial Performance Overview (For the Six Months Ended June 30) | Metric | 2025 (HK$ Billion) | 2024 (HK$ Billion) | Change (%) | | :--- | :--- | :--- | :--- | | Consolidated Profit Attributable to Owners of the Company | 2.682 | 2.411 | +11.2 | | Basic Earnings Per Share (HK cents) | 41.02 | 36.88 | +11.2 | | Consolidated Revenue from Continuing Operations | 9.428 | 9.487 | -0.6 | | Consolidated Profit Before Tax from Continuing Operations | 4.105 | 3.849 | +6.7 | | Consolidated Profit Attributable to Owners of the Company from Continuing Operations | 2.699 | 2.473 | +9.1 | - The revenue decrease primarily stemmed from department store operations, roads and bridges, and power generation businesses[51] - Total assets decreased by approximately HK$38.498 billion, mainly due to the disposal of Guangdong Land Holdings Limited during the period[52] Business Review During the period, water resources remained the core profit contributor with increased revenue and profit from the Dongjiang Water Supply project; property investment revenue and profit improved, while department store operations revenue sharply declined; hotel business revenue grew but profit fell; energy project power sales increased but revenue decreased; roads and bridges revenue and profit both declined; Guangdong Land completed its distribution, with narrowing losses from its discontinued operations Water Resources Total water supply from the Dongjiang Water Supply project to Hong Kong, Shenzhen, and Dongguan slightly decreased, but both revenue and profit before tax increased; other water resources projects secured new contracts, with adjusted total designed water supply and sewage treatment capacities, leading to increased revenue but decreased profit before tax Key Data for Dongjiang Water Supply Project (For the Six Months Ended June 30) | Metric | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total water supply to Hong Kong, Shenzhen and Dongguan (100 million tons) | 11.47 | 11.59 | -1.0 | | Revenue (HK$ Billion) | 3.506 | 3.485 | +0.6 | | Water supply revenue to Hong Kong (HK$ Billion) | 2.869 | 2.802 | +2.4 | | Water supply revenue to Shenzhen and Dongguan (HK$ Billion) | 0.637 | 0.683 | -6.7 | | Profit Before Tax (HK$ Billion) | 2.396 | 2.325 | +3.1 | - The Hong Kong water supply agreement stipulates a basic water price of HK$5,259,000,000 for 2025, with a water price reduction mechanism in place[54] - During the period, a new water resources project in Maoming City, Guangdong, was successfully secured, with a total designed sewage treatment capacity of 194,000 tons per day and an estimated total investment of approximately RMB400 million[56] - Other water resources projects' total revenue increased by 2.3% to HK$3,680,319 thousand, but profit before tax decreased by 6.2% to HK$1,079,398 thousand[60] Property Investment Guangdong Teemall's property investment business in Mainland China saw a 3.6% increase in revenue and a 9.7% increase in profit before tax, driven by higher average rental levels and improved occupancy rates for some properties; Hong Kong GDH Investment Tower experienced a slight revenue decrease Guangdong Teemall Property Investment Business Revenue (For the Six Months Ended June 30) | Property | 2025 Revenue (HK$ Thousand) | 2024 Revenue (HK$ Thousand) | Change (%) | 2025 Average Occupancy Rate (%) | | :--- | :--- | :--- | :--- | :--- | | Teemall Plaza – Shopping Mall | 352,146 | 349,486 | +0.8 | 99.5 | | Teemall Plaza – Tower | 74,837 | 87,397 | -14.4 | 79.9 | | Panyu Teemall Shopping Centre | 139,411 | 120,017 | +16.2 | 95.5 | | Tianjin Teemall Shopping Centre | 144,924 | 140,127 | +3.4 | 95.8 | | Guangzhou Animation City | 40,626 | 44,557 | -8.8 | 99.8 | | Shenzhen Teemall | 47,457 | 32,088 | +47.9 | 93.4 | | GDH Land | 22,108 | 19,551 | +13.1 | 93.3 | | Total | 821,509 | 793,223 | +3.6 | N/A | - Guangdong Teemall's property investment business profit before tax increased by 9.7% to HK$491,600 thousand[61] - Hong Kong GDH Investment Tower's average occupancy rate was 93.3% (2024: 96.4%), with total revenue decreasing by 3.0% to HK$23,852 thousand[63] Department Store Operations Total revenue from department store operations significantly decreased by 44.4% during the period, mainly due to a sharp decline in Teemall Department Store revenue and the closure of the Huadu store; despite the revenue decline, profit before tax increased by 18.5%, achieving a turnaround to profitability Department Store Revenue (For the Six Months Ended June 30) | Department Store | 2025 Revenue (HK$ Thousand) | 2024 Revenue (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Teemall Department Store | 156,746 | 309,523 | -49.4 | | Wanbo Department Store | 19,687 | 23,134 | -14.9 | | Dongpu Department Store | 20,320 | 25,045 | -18.9 | | Aoti Department Store | 19,654 | 20,892 | -5.9 | | Huadu Store | - | 10,956 | -100.0 | | TeemLife Beijing Road Home Furnishing Store | 122 | 42 | +100.0 | | Total | 216,529 | 389,592 | -44.4 | - Profit before tax (excluding fair value changes of investment properties) increased by 18.5% to HK$45,828 thousand during the period[64] Hotel Operations and Management The number of hotels managed by the Group decreased, but revenue from hotel holding, operations, and management increased by 6.8%; average room rates and occupancy rates both improved, but profit before tax decreased by 19.8% - The Group manages 17 hotels (December 31, 2024: 19 hotels), with 4 located in Hong Kong and 13 in Mainland China[66] - Guangdong Sheraton Hotel's average room rate was HK$1,257 (2024: HK$1,291), with an average occupancy rate of 93.8% (2024: 93.4%)[66] - The average room rate for the other six hotels was HK$725 (2024 for five hotels: HK$698), with an average occupancy rate of 72.8% (2024 for five hotels: 68.3%)[66] - Revenue from hotel holding, operations, and management increased by 6.8% to HK$336,542 thousand, but profit before tax decreased by 19.8% to HK$51,058 thousand[67] Energy Projects Guangdong Energy projects saw a significant increase in power sales, but revenue slightly decreased due to lower electricity prices and exchange rate effects, while profit before tax increased; Guangdong Yuedian Jinghai Power Generation experienced declines in both power sales and revenue, leading to a reduced share of profit for the Group Key Data for Energy Projects (For the Six Months Ended June 30) | Project | Metric | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Guangdong Energy | Power sales (100 million kWh) | 16.79 | 13.62 | +23.3 | | | Revenue (HK$ Thousand) | 769,657 | 804,563 | -4.3 | | | Profit Before Tax (HK$ Thousand) | 91,177 | 74,338 | +22.7 | | Yuedian Jinghai Power Generation | Power sales (100 million kWh) | 62.16 | 68.67 | -9.5 | | | Revenue (HK$ Thousand) | 2,402,480 | 3,255,091 | -26.2 | | | Group's share of profit (HK$ Thousand) | 18,264 | 54,800 | -66.7 | - Guangdong Energy's revenue decrease was primarily due to the combined impact of lower electricity prices and a 1.4% depreciation of RMB against HKD[68] Roads and Bridges Xingliu Expressway experienced decreases in average daily toll traffic and toll revenue, leading to a reduction in profit before tax; Yinping Project's accumulated construction costs increased, and recognized interest, management fees, and maintenance fees combined grew, resulting in an increase in profit before tax Key Data for Roads and Bridges Projects (For the Six Months Ended June 30) | Project | Metric | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Xingliu Expressway | Average daily toll traffic (vehicles) | 24,457 | 26,954 | -9.3 | | | Toll revenue (HK$ Thousand) | 289,948 | 312,881 | -7.3 | | | Profit Before Tax (HK$ Thousand) | 147,110 | 161,899 | -9.1 | | Yinping Project | Interest, management fees and maintenance fees (HK$ Thousand) | 80,750 | 77,486 | +4.2 | | | Profit Before Tax (HK$ Thousand) | 68,984 | 65,726 | +5.0 | - Accumulated construction costs for the Yinping Project were approximately RMB2.09 billion (approximately HK$2.291 billion), an increase from the end of 2024[72] Discontinued Operations (Management Discussion and Analysis) Guangdong Land completed its distribution on January 21, 2025; its revenue for the period significantly decreased, but loss before tax substantially narrowed, achieving a profit before tax after excluding fair value changes and finance costs Guangdong Land Discontinued Operations Performance (For the Period from January 1 to January 21, 2025) | Metric | Jan 1 to Jan 21, 2025 (HK$ Thousand) | For the Six Months Ended June 30, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 251,831 | 2,803,824 | -91.0 | | Revenue from property sales | 247,894 | 2,778,718 | -91.1 | | Loss Before Tax | 9,516 | 282,564 | +96.6 | | Profit Before Tax excluding fair value changes and finance costs | 13,454 | (105,005) | N/A | - Guangdong Land is no longer a subsidiary of the company, and its consolidated results are presented as discontinued operations in this announcement[73] Liquidity, Gearing Ratio and Financial Resources The Group's cash and bank balances from continuing operations slightly decreased, total financial borrowings declined, and the gearing ratio significantly improved; net cash inflow from operating activities decreased, but existing cash resources and stable cash flow are sufficient to meet debt obligations and business operations Key Financial Resources Data (As of June 30) | Metric | 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and bank balances (Continuing Operations, HK$ Billion) | 12.036 | 12.154 | | Financial borrowings (Continuing Operations, HK$ Billion) | 21.177 | 23.862 | | Gearing ratio (%) | 24.7 | 30.9 | | EBITDA to finance costs ratio (times) | 16.2 | 10.5 | | Net cash inflow from operating activities (HK$ Billion) | 3.339 | 4.876 | - Of the financial borrowings from continuing operations, 95.4% are floating rate borrowings, 3.7% are fixed rate borrowings, and 0.9% are non-interest bearing borrowings[76] - The Group's credit facilities for continuing operations amounted to HK$9.473 billion (December 31, 2024: HK$9.349 billion)[77] Pledged Assets and Contingent Liabilities (Management Discussion and Analysis) The Group's pledged assets primarily involve revenue rights from water supply, sewage treatment, and toll road businesses, used to secure bank and other borrowings; contingent liabilities significantly decreased, mainly due to the release of related guarantee obligations after the Guangdong Land distribution - Revenue rights from certain water supply, sewage treatment, and toll road businesses are pledged to secure bank and other borrowings totaling HK$12.449 billion (December 31, 2024: HK$12.413 billion)[78] - The Group provided guarantees to certain banks for mortgage loans granted to purchasers of properties sold, amounting to HK$1 million (December 31, 2024: HK$4.714 billion), with the significant reduction primarily due to the Guangdong Land distribution[79] Capital Expenditure Capital expenditure increased to HK$566 million during the period, primarily for the acquisition of property, plant and equipment, and construction costs of water supply and sewage treatment plants Capital Expenditure (For the Six Months Ended June 30) | Year | Amount (HK$ Billion) | | :--- | :--- | | 2025 | 0.566 | | 2024 | 0.445 | - Capital expenditure primarily relates to the acquisition of property, plant and equipment, and construction costs of water supply and sewage treatment plants (including receivables from operating concessions and service concession arrangements)[80] Exchange Rate and Interest Rate Fluctuation Risks and Related Hedging The Group faces RMB exchange rate fluctuations and interest rate risks from floating rate borrowings; the company manages foreign exchange risk through optimizing funding arrangements and adjusting financing methods but does not use derivative financial instruments to hedge foreign exchange and interest rate risks - As of June 30, 2025, RMB borrowings from continuing operations totaled HK$17.571 billion (December 31, 2024: HK$19.356 billion)[81] - The Group has natural hedging mechanisms and dynamically monitors exchange rate exposure but does not use derivative financial instruments to hedge foreign exchange risk[81] - As of June 30, 2025, floating rate borrowings from continuing operations totaled HK$20.193 billion (December 31, 2024: HK$21.975 billion)[81] - The Group does not use interest rate hedging to manage interest rate risk and will continue to review market trends and operational needs[81] Principal Risks and Uncertainties The Group faces multiple risks including macroeconomic, foreign exchange, market competition and project safety management; the company addresses these challenges by closely monitoring the macroeconomy, optimizing funding arrangements, enhancing product efficiency and strengthening safety management - Macroeconomic risks: International trade barriers, geopolitical conflicts, and weakening consumer confidence increase uncertainty in economic recovery[82] - Foreign exchange risks: Primary operations are concentrated in Mainland China, facing exchange gains/losses and foreign currency translation risks of net assets due to exchange rate fluctuations[83] - Market competition risks: Intensified market competition may affect expansion capabilities and project investment returns[84] - Project safety management risks: Including product safety and operational personnel safety risks, managed through standardized management, quality control, regular inspections, and employee training[85] Employees and Remuneration Policy As of June 30, 2025, the Group's total number of employees decreased to 10,180, with a reduction in total remuneration for continuing operations; the company is committed to building a learning organization, motivating employees through market-competitive remuneration policies and performance evaluation systems, and providing multi-dimensional professional training Employee Count and Total Remuneration | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total employees | 10,180 | 10,759 | | Total remuneration for continuing operations (HK$ Thousand) | 752,598 | 828,537 | - The remuneration policy aims to ensure market competitiveness and alignment with development goals and performance, including fixed salaries, discretionary incentives, insurance, and benefits[86] - The company provides multi-dimensional professional training in legal compliance, investment expansion, financial management, and sustainable development to enhance employees' comprehensive quality and professional capabilities[87] Review and Outlook In the first half of 2025, the global economy faced geopolitical tensions and trade policy uncertainties, while China's economy maintained a moderate recovery under external pressure; looking ahead, the Group will adhere to a "seek progress while maintaining stability, improve quality and efficiency" strategy, consolidate core businesses, optimize governance and risk management, and actively grasp opportunities in the Guangdong-Hong Kong-Macao Greater Bay Area to transform and upgrade the water resources segment towards high-value-added areas - Since 2025, the global economy has faced geopolitical tensions, tariff increases, and trade policy uncertainties, while China's economy has maintained a stable and progressive trend under external pressure[88] - The Group will adhere to the "seek progress while maintaining stability, improve quality and efficiency" development strategy, maintain core business operational standards, and optimize corporate governance and risk management mechanisms[89] - The Group will focus resources on extending the water resources segment towards high-value-added areas, actively seize potential development opportunities brought by the "Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area," and proactively explore market investment and M&A opportunities[89] Corporate Governance and Other Information This section details the company's adherence to corporate governance codes, share transactions, interim dividend declarations, share transfer registration, and review and publication of interim results Corporate Governance Code The company has complied with the code provisions of the Corporate Governance Code as set out in Appendix C1 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited for the six months ended June 30, 2025 - The company is committed to achieving the highest standards of corporate governance and has applied the principles of the Corporate Governance Code set out in Appendix C1 of the Listing Rules[90] Purchase, Sale or Redemption of Listed Securities During the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities on the Stock Exchange of Hong Kong Limited - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities on the Stock Exchange of Hong Kong Limited[91] Interim Dividend (Corporate Governance) The Board has resolved to declare an interim dividend of HK$26.66 cents per ordinary share for the six months ended June 30, 2025, expected to be paid on October 23, 2025 - The Board declared an interim dividend of HK$26.66 cents per ordinary share (2024: HK$23.97 cents) for the six months ended June 30, 2025[92] - The interim dividend is expected to be paid on Thursday, October 23, 2025, to shareholders whose names appear on the company's register of members at the close of business on Friday, October 10, 2025[92] Suspension of Share Transfer Registration The company will suspend share transfer registration on Friday, October 10, 2025, to determine eligibility for the interim dividend - The company will suspend share transfer registration on Friday, October 10, 2025, and no share transfers will be processed on that day[93] - To ensure eligibility for the interim dividend, shareholders must submit all share transfer documents to the company's share registrar by 4:30 p.m. on Thursday, October 9, 2025[93] Review of Interim Results The Audit Committee has reviewed the Group's unaudited interim financial report for the six months ended June 30, 2025, which has also been reviewed by KPMG - The interim financial report has been reviewed by the company's Audit Committee and independent auditor KPMG[94] - The review report will be sent to shareholders along with the interim report[94] Publication of Interim Results and Interim Report This interim results announcement has been published on the company's and HKEX websites; the interim report will be dispatched to shareholders and posted on the aforementioned websites - This interim results announcement has been published on the company's website (www.gdi.com.hk) and the HKEX website (www.hkexnews.hk)[95](index=95&type=chunk) - The company's interim report for the six months ended June 30, 2025, will be dispatched to the company's shareholders and posted on the aforementioned websites when appropriate[95]