巨涛海洋石油服务(03303) - 2025 - 中期业绩

Financial Summary The company experienced significant declines in key financial metrics and a reduced interim dividend | Metric | H1 2025 (RMB'000) | H1 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 428,270 | 1,284,256 | -66.65% | | Gross Profit | 132,009 | 367,501 | -64.08% | | Profit Attributable to Owners of the Company | 56,049 | 177,309 | -68.30% | | Basic Earnings Per Share | 2.629 cents | 8.675 cents | -69.68% | | Diluted Earnings Per Share | 2.598 cents | 8.673 cents | -70.04% | - The Board recommends an interim dividend of HKD 0.015 per share for the six months ended June 30, 2025, a decrease from HKD 0.03 per share in the prior year period[5] Condensed Consolidated Financial Statements This section presents the condensed consolidated financial statements, detailing the company's financial performance and position Condensed Consolidated Statement of Profit or Loss For H1 2025, the company experienced significant declines in both revenue and profit attributable to owners Condensed Consolidated Statement of Profit or Loss Key Data | Metric | H1 2025 (RMB'000) | H1 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 428,270 | 1,284,256 | -66.65% | | Cost of Sales and Services | (296,261) | (916,755) | -67.68% | | Gross Profit | 132,009 | 367,501 | -64.08% | | Operating Profit | 65,976 | 215,068 | -69.32% | | Profit Before Tax | 63,171 | 207,759 | -69.50% | | Profit for the Period Attributable to Owners of the Company | 56,049 | 177,309 | -68.30% | | Basic Earnings Per Share | 2.629 cents | 8.675 cents | -69.68% | | Diluted Earnings Per Share | 2.598 cents | 8.673 cents | -70.04% | Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Total comprehensive income for H1 2025 significantly decreased due to reduced profit and foreign currency translation differences Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data | Metric | H1 2025 (RMB'000) | H1 2024 (RMB'000) | YoY Change (RMB'000) | | :--- | :--- | :--- | :--- | | Profit for the Period | 56,049 | 177,309 | -121,260 | | Exchange differences arising on translation of foreign operations | (3,812) | 2,535 | -6,347 | | Other comprehensive (expense)/income for the period, net of tax | (3,809) | 2,535 | -6,344 | | Total comprehensive income for the period attributable to owners of the Company | 52,240 | 179,844 | -127,604 | Condensed Consolidated Statement of Financial Position As of June 30, 2025, total assets less current liabilities and net assets increased, primarily due to higher net current assets Condensed Consolidated Statement of Financial Position Key Data | Metric | June 30, 2025 (RMB'000) | Dec 31, 2024 (RMB'000) | Change (RMB'000) | | :--- | :--- | :--- | :--- | | Non-current assets | 1,380,129 | 1,364,899 | 15,230 | | Current assets | 1,750,172 | 1,762,217 | -12,045 | | Current liabilities | 688,446 | 858,794 | -170,348 | | Net current assets | 1,061,726 | 903,423 | 158,303 | | Total assets less current liabilities | 2,441,855 | 2,268,322 | 173,533 | | Non-current liabilities | 214,214 | 92,921 | 121,293 | | Net assets (Total equity) | 2,227,641 | 2,175,401 | 52,240 | Notes to the Condensed Consolidated Financial Statements This section provides detailed notes supporting the condensed consolidated financial statements, covering accounting policies and key financial items Basis of Preparation The condensed consolidated financial statements adhere to HKAS 34 and Listing Rules, maintaining consistency with 2024 annual accounting policies - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the HKICPA and the applicable disclosure requirements of the Listing Rules of The Stock Exchange of Hong Kong Limited[10] - The accounting policies and methods of computation used in the condensed consolidated financial statements are consistent with those adopted in the preparation of the Group's annual financial statements for the year ended December 31, 2024[10] Adoption of New and Revised Hong Kong Financial Reporting Standards HKAS 21 (Amendment) "Lack of Exchangeability" was applied in this interim period, with no significant financial impact - The Group has applied the revised Hong Kong Financial Reporting Standards issued by the HKICPA for the first time in the current interim period, including HKAS 21 (Amendment) "Lack of Exchangeability"[11] - The application of these revised HKFRSs has had no material impact on the Group's financial performance and consolidated financial position for the current and prior periods and/or on the disclosures set out in these condensed consolidated financial information[11] Segment Information The Group's Oil & Gas segment experienced revenue decline but improved gross margin, while New Energy & Refining saw revenue growth but a loss - The Group comprises two main reportable segments: equipment engineering and integrated services for the oil and gas industry, and equipment engineering and integrated services for the new energy and refining industry[12][13] Segment Revenue and Profit Analysis (For the six months ended June 30) | Segment | H1 2025 Revenue (RMB'000) | H1 2024 Revenue (RMB'000) | YoY Revenue Change (%) | H1 2025 Segment Profit/(Loss) (RMB'000) | H1 2024 Segment Profit/(Loss) (RMB'000) | H1 2025 Gross Margin (%) | H1 2024 Gross Margin (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Oil and Gas | 321,753 | 1,281,731 | -74.90% | 148,396 | 363,509 | 46% | 28% | | New Energy and Refining | 106,517 | 2,226 | +4685.13% | (16,387) | 4,428 | -15% | 199% | | Total | 428,270 | 1,284,256 | -66.65% | 132,009 | 367,501 | 30.82% | 28.62% | Revenue Total revenue for H1 2025 significantly decreased due to a sharp decline in Oil & Gas, partially offset by New Energy & Refining growth Revenue by Business Segment and Timing of Recognition (For the six months ended June 30) | Timing of Revenue Recognition | H1 2025 Oil & Gas (RMB'000) | H1 2024 Oil & Gas (RMB'000) | H1 2025 New Energy & Refining (RMB'000) | H1 2024 New Energy & Refining (RMB'000) | H1 2025 Total (RMB'000) | H1 2024 Total (RMB'000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Goods and services transferred at a point in time | 15,064 | 21,987 | 375 | - | 15,439 | 21,987 | | Goods and services transferred over time | 306,689 | 1,259,744 | 106,142 | 2,226 | 412,831 | 1,262,269 | | Total | 321,753 | 1,281,731 | 106,517 | 2,226 | 428,270 | 1,284,256 | Trade and Bills Receivables, Contract Assets and Contract Liabilities from Customer Contracts | Metric | June 30, 2025 (RMB'000) | Dec 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Trade and bills receivables | 74,857 | 288,070 | | Contract assets | 467,732 | 476,685 | | Contract liabilities | 43,072 | 60,957 | - An amount of approximately RMB 50,630,000 recognized in contract liabilities at the beginning of the period was recognized as revenue for the six months ended June 30, 2025[18] Other Income Other income for H1 2025 decreased, primarily due to lower bank interest income and government subsidies Other Income Details (For the six months ended June 30) | Item | H1 2025 (RMB'000) | H1 2024 (RMB'000) | YoY Change (RMB'000) | | :--- | :--- | :--- | :--- | | Interest income from bank deposits | 4,682 | 8,671 | -3,989 | | Government grants recognized | 1,819 | 4,619 | -2,800 | | Net exchange gain | - | 330 | -330 | | Total | 6,599 | 13,912 | -7,313 | Other Operating Expenses Other operating expenses for H1 2025 significantly decreased, mainly due to no impairment losses on property, plant, and equipment Other Operating Expenses Details (For the six months ended June 30) | Item | H1 2025 (RMB'000) | H1 2024 (RMB'000) | YoY Change (RMB'000) | | :--- | :--- | :--- | :--- | | Fair value loss on derivative financial instruments | 5,329 | 7,251 | -1,922 | | Impairment provision for inventories | 2,098 | 3,101 | -1,003 | | Impairment loss on property, plant and equipment | - | 26,018 | -26,018 | | Total | 8,810 | 38,820 | -30,010 | - No impairment loss was recognized for property, plant and equipment of cash-generating units for the period ended June 30, 2025 (six months ended June 30, 2024: RMB 1,491,000)[20] - No impairment loss was recognized for equipment at the Penglai construction site for the six months ended June 30, 2025 (six months ended June 30, 2024: RMB 24,527,000)[21] Finance Costs Finance costs for H1 2025 decreased, primarily due to reduced interest expenses on bank loans Finance Costs Details (For the six months ended June 30) | Item | H1 2025 (RMB'000) | H1 2024 (RMB'000) | YoY Change (RMB'000) | | :--- | :--- | :--- | :--- | | Interest expense on bank loans | 1,444 | 4,937 | -3,493 | | Interest on lease liabilities | 490 | 545 | -55 | | Others | 869 | 1,827 | -958 | | Total | 2,803 | 7,309 | -4,506 | Dividends The Board recommends a reduced interim dividend of HKD 0.015 per share for H1 2025 - The Board recommends an interim dividend of HKD 0.015 per share for the six months ended June 30, 2025 (six months ended June 30, 2024: HKD 0.03 per share)[23] Income Tax Expense Income tax expense for H1 2025 significantly decreased, primarily due to reduced taxable profit Income Tax Expense Details (For the six months ended June 30) | Item | H1 2025 (RMB'000) | H1 2024 (RMB'000) | YoY Change (RMB'000) | | :--- | :--- | :--- | :--- | | Current tax – PRC Enterprise Income Tax | 5,507 | 37,961 | -32,454 | | Deferred tax | 1,615 | (7,511) | 9,126 | | Total | 7,122 | 30,450 | -23,328 | - No provision for Hong Kong Profits Tax was made as the Group had no assessable profits generated in Hong Kong for the six months ended June 30, 2025 and 2024[24] Profit for the Period Profit for the period was influenced by inventory impairment, asset disposal gains/losses, and directors' and management's emoluments Profit for the Period Impact Items (For the six months ended June 30) | Item | H1 2025 (RMB'000) | H1 2024 (RMB'000) | | :--- | :--- | :--- | | Impairment provision for inventories | 2,098 | 3,101 | | (Gain)/loss on disposal of property, plant and equipment | (30) | 410 | | Directors' emoluments | 481 | 1,075 | | Management's emoluments | 1,501 | 35,490 | | Total directors' and management's emoluments | 1,982 | 36,565 | Earnings Per Share Basic and diluted earnings per share for H1 2025 significantly decreased from the prior year period Earnings Per Share Calculation Data (For the six months ended June 30) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company for the purpose of basic and diluted earnings per share (RMB'000) | 56,049 | 177,309 | | Weighted average number of ordinary shares for the purpose of basic earnings per share | 2,131,598,389 | 2,043,991,246 | | Effect of potential dilutive ordinary shares from share options | 25,937,306 | 345,388 | | Weighted average number of ordinary shares for the purpose of diluted earnings per share | 2,157,535,695 | 2,044,336,634 | | Basic earnings per share (RMB cents) | 2.629 | 8.675 | | Diluted earnings per share (RMB cents) | 2.598 | 8.673 | Property, Plant and Equipment The Group acquired less property, plant and equipment in H1 2025 compared to the prior year period - For the six months ended June 30, 2025, the Group acquired property, plant and equipment of approximately RMB 67,568,000 (six months ended June 30, 2024: RMB 84,330,000)[27] Trade and Bills Receivables As of June 30, 2025, total trade and bills receivables significantly decreased, primarily due to reduced trade receivables Trade and Bills Receivables (RMB'000) | Item | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Trade receivables | 150,477 | 365,421 | | Provision for doubtful debts | (76,439) | (78,701) | | Bills receivables | 819 | 1,350 | | Total | 74,857 | 288,070 | Ageing Analysis of Trade Receivables (RMB'000) | Ageing | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | 0 to 30 days | 29,932 | 136,215 | | 31 to 90 days | 19,950 | 115,542 | | 91 to 365 days | 13,283 | 30,277 | | Over 365 days | 46,523 | 42,500 | | Unbilled | 40,789 | 40,887 | | Total | 150,477 | 365,421 | Trade and Bills Payables As of June 30, 2025, total trade and bills payables decreased from year-end 2024 Trade and Bills Payables (RMB'000) | Item | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Trade payables | 326,228 | 417,607 | | Bills payables | - | - | | Total | 326,228 | 417,607 | Ageing Analysis of Trade Payables (RMB'000) | Ageing | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | 0 to 30 days | 226,755 | 279,475 | | 31 to 90 days | 45,832 | 19,206 | | 91 to 365 days | 32,724 | 36,113 | | Over 365 days | 47,543 | 56,187 | | Total | 326,228 | 417,607 | Share Capital As of June 30, 2025, the company's issued share capital remained unchanged, with a consistent authorized share capital Summary of Share Capital Movements | Item | Number of Shares | Amount (HKD'000) | Equivalent to (RMB'000) | | :--- | :--- | :--- | :--- | | As at January 1, 2024 (audited) | 1,981,598,389 | 19,816 | 17,783 | | Share placement | 150,000,000 | 1,500 | 1,362 | | As at June 30, 2025 (unaudited) | 2,131,598,389 | 21,316 | 19,145 | - On March 7, 2024, the company issued 150,000,000 ordinary shares at HKD 0.42 per share through a placement, with a premium of approximately HKD 60,009,000 (approximately RMB 54,996,000) after deducting share issue expenses, credited to the share premium account[31] Share Award Scheme As of June 30, 2025, awarded shares were granted and vested, with no share award expenses recognized this period - The company has adopted a share award scheme, under which shares of the company are purchased by a trustee on the Stock Exchange[32] - As of December 31, 2024, the trustee had purchased a total of 228,750,000 shares for a total consideration of approximately HKD 158,560,000 (approximately RMB 144,734,000); no further purchases were made by the trustee for the six months ended June 30, 2025[32] - As of June 30, 2025, 164,000,000 awarded shares have been granted and vested; no share award expenses were recognized in "Administrative expenses" in profit or loss for the six months ended June 30, 2025[32][33] Contingent Liabilities As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[33] Management Discussion and Analysis This section provides management's perspective on the company's performance, financial position, and future outlook Review The Group expanded renewable energy capacity but faced H1 revenue decline due to project delays and international political factors - China's annual new renewable energy installed capacity accounts for over 40% globally, and the Group possesses production capabilities and experience for various offshore wind power pile foundation products, having undertaken several offshore wind power construction projects[34] - The Group has commenced construction of the second phase of the Zhuhai site's wharf project, planning to build a 50,000-ton general-purpose berth, which will significantly enhance core competitiveness and facilitate international market expansion[35] - Due to delays in some ongoing projects and the impact of international political factors on overseas markets, the Group's construction sites experienced relatively insufficient workload during the reporting period[35] Revenue (Management Discussion and Analysis) Total revenue for H1 2025 significantly decreased due to a sharp decline in Oil & Gas, partially offset by New Energy & Refining growth Revenue Composition Analysis by Business Segment (For the six months ended June 30) | Product/Service | H1 2025 (RMB'000) | % of Total Revenue | H1 2024 (RMB'000) | % of Total Revenue | YoY Change (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Equipment engineering and integrated services for the oil and gas industry | 321,753 | 75% | 1,281,731 | 100% | -959,978 | -74.90% | | Equipment engineering and integrated services for the new energy and refining industry | 106,517 | 25% | 2,226 | 0% | 104,291 | +4685.13% | | Others | 0 | 0% | 299 | 0% | -299 | -100% | | Total | 428,270 | 100% | 1,284,256 | 100% | -855,986 | -66.65% | Cost of Sales and Services Cost of sales and services for H1 2025 significantly decreased, primarily due to a substantial reduction in direct costs - During the reporting period, the Group's cost of sales and services was approximately RMB 296,261,000, a decrease of approximately RMB 620,494,000 or 67.68% from the prior year period[38] - Direct costs amounted to approximately RMB 197,271,000, accounting for 66.59% of total cost of sales and services, a decrease of approximately RMB 614,101,000 or 75.69% from approximately RMB 811,372,000 in the prior year period[38] - Manufacturing overhead decreased by approximately RMB 6,393,000 to approximately RMB 98,990,000 from approximately RMB 105,383,000 in the prior year period, a decrease of approximately 6.07%[38] Gross Profit (Management Discussion and Analysis) Gross profit for H1 2025 decreased, but overall gross margin improved, driven by the Oil & Gas segment's enhanced margin Gross Profit Analysis by Business Segment (For the six months ended June 30) | Product/Service | H1 2025 Gross Profit (RMB'000) | H1 2025 Gross Margin (%) | H1 2024 Gross Profit (RMB'000) | H1 2024 Gross Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Equipment engineering and integrated services for the oil and gas industry | 148,396 | 46% | 363,510 | 28% | | Equipment engineering and integrated services for the new energy and refining industry | (16,387) | (15%) | 4,428 | 199% | | Others | 0 | 0% | (437) | (146%) | | Total | 132,009 | 30.82% | 367,501 | 28.62% | - During the reporting period, the Group's total gross profit was approximately RMB 132,009,000, a decrease of approximately RMB 235,492,000 or 64.08% from the prior year period[39] - The overall gross margin increased from 28.62% in the prior year period to 30.82%[39] Other Income (Management Discussion and Analysis) Other income for H1 2025 was primarily derived from interest income and government subsidies - The Group's other income for H1 2025 was approximately RMB 6,599,000, mainly comprising interest income and government grant income[40] Administrative and Other Operating Expenses Total administrative and other operating expenses significantly decreased due to reduced staff remuneration and no share-based expenses - Total administrative and other operating expenses decreased by approximately 59.40% or RMB 99,686,000 to approximately RMB 68,135,000 compared to the prior year period[41] - Administrative expenses decreased by RMB 69,676,000 compared to the prior year period, mainly due to a significant reduction in accrued staff remuneration and the absence of share-based expenses in the current period[41] Finance Costs (Management Discussion and Analysis) Finance costs for H1 2025 were primarily composed of bank interest expenses and handling fees - During the reporting period, the Group's finance costs were approximately RMB 2,803,000, primarily comprising bank interest expenses of approximately RMB 1,444,000 and other fees such as bank handling charges of approximately RMB 1,359,000[42] Profit for the Period Attributable to Owners of the Company Profit for the period attributable to owners of the company for H1 2025 was RMB 56.05 million, with corresponding basic and diluted EPS - For H1 2025, the profit attributable to owners of the company was approximately RMB 56,049,000[43] - Basic and diluted earnings per share attributable to owners of the company were RMB 2.629 cents and RMB 2.598 cents, respectively[43] Liquidity and Financial Resources As of June 30, 2025, cash and bank balances increased, with positive operating cash flow and significantly higher available bank credit Liquidity and Cash Flow (RMB'000) | Item | June 30, 2025/H1 | Dec 31, 2024/H1 | | :--- | :--- | :--- | | Bank balances and cash | 967,372 | 785,161 | | Net cash inflow from operating activities | 133,683 | N/A (period-end data) | | Net cash outflow from investing activities | 16,866 | N/A (period-end data) | | Net cash inflow from financing activities | 69,078 | N/A (period-end data) | - As of June 30, 2025, the Group had available bank credit facilities of approximately RMB 828,910,000 (December 31, 2024: RMB 200,000,000)[44] - As of June 30, 2025, the Group had bank guarantees under performance bonds for construction contracts of approximately RMB 291,031,000 (December 31, 2024: RMB 270,100,000)[44] Capital Structure As of June 30, 2025, share capital remained unchanged, net assets increased, and net current assets significantly improved - As of June 30, 2025, the company's share capital comprised 2,131,598,389 ordinary shares (December 31, 2024: 2,131,598,389 ordinary shares)[45] - As of June 30, 2025, the Group's net assets were approximately RMB 2,227,641,000 (December 31, 2024: RMB 2,175,401,000)[45] - Net current assets were approximately RMB 1,061,726,000 (December 31, 2024: RMB 903,423,000), and non-current liabilities were approximately RMB 214,214,000 (December 31, 2024: RMB 92,921,000)[45] Significant Investments The Group completed Penglai site renovation and commenced Zhuhai wharf construction, with an estimated investment exceeding RMB 200 million - The renovation of the Group's Penglai site's west plant area has been completed, and the facilities at the Penglai site have been further improved based on market conditions and future development plans[46] - The Group has also commenced construction of the second phase wharf project at the Zhuhai site, with an estimated total investment exceeding RMB 200 million, and the project is expected to be completed in H1 2026[46] Foreign Exchange Risk The Group manages exchange rate risks from RMB against USD and EUR by reducing foreign currency assets and using forward contracts - The Group is exposed to exchange rate risk arising from fluctuations of RMB against other currencies such as USD and EUR[48] - The Group will endeavor to minimize the amount of assets denominated in USD, EUR, and other currencies, make rolling forecasts of exchange rates, and consider potential exchange rate risks in business contracts[48] Pledge of the Group's Assets As of June 30, 2025, the Group had bank deposits pledged as security for bank loans and guarantees - As of June 30, 2025, the Group had bank deposits of approximately RMB 68,136,000 (December 31, 2024: RMB 64,618,000) pledged as security for bank loans, issuance of guarantees, letters of credit, and bank acceptance bills[49] Contingent Liabilities (Management Discussion and Analysis) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[50] Capital Management The Group aims to maximize shareholder returns by optimizing its capital gearing ratio, which increased in H1 2025 due to higher bank loans - The Group's primary objectives in capital management are to safeguard its ability to continue as a going concern and to maximize returns to shareholders by optimizing the capital gearing ratio[51] Capital Gearing Ratio | Item | June 30, 2025 (RMB'000) | Dec 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Loans | 159,736 | 86,458 | | Lease liabilities | 17,441 | 20,486 | | Total equity | 2,227,641 | 2,175,401 | | Capital gearing ratio | 7.95% | 4.92% | - The increase in the capital gearing ratio during the reporting period was primarily due to an increase in bank loans[52] Employees and Remuneration Policy As of June 30, 2025, the Group's workforce decreased, with remuneration based on position, responsibilities, performance, and training - As of June 30, 2025, the Group had a total of 1,936 employees (December 31, 2024: 2,181 employees), comprising 841 management and technical personnel and 1,095 skilled workers[53] - The Group determines employee remuneration and bonuses based on industry standards, job position, responsibilities, and performance, and contributes to social insurance and housing provident funds for employees[53] - The Group values employee development, encourages continuous learning, and provides on-the-job training[54] Outlook The Group will focus on new energy equipment, enhance EPC capabilities, expand capacity via Zhuhai wharf construction, and manage political risks - The Group will actively promote market business for construction projects, including new energy equipment, explore various cooperation models, and secure more new orders[55] - The Group will further enhance its technical capabilities, introduce high-end professional talents, improve software and hardware facilities and management systems, boost EPC business capabilities, and continue to promote and develop FPSO module and small-to-medium oil and gas platform EPC businesses[55] - Within the year, the Group will prioritize the construction of the new wharf at the Zhuhai site and other corresponding facility upgrades to improve production efficiency and expand capacity[55] Directors' Report and Corporate Governance This section details the interim dividend, directors' rights, securities transactions, and corporate governance adherence Interim Dividend The Board recommends an interim dividend of HKD 0.015 per share for H1 2025, payable on October 17, 2025 - The Board recommends an interim dividend of HKD 0.015 per share for the six months ended June 30, 2025[56] - The proposed interim dividend will be paid on Friday, October 17, 2025, to shareholders whose names appear on the company's register of members on Friday, September 26, 2025[56] Directors' Rights to Acquire Shares or Debentures Except for share options and awards, no directors or chief executives held other rights to subscribe for company shares or debentures - Save for share options granted to directors in prior years under the company's share option scheme and share awards granted under the company's share award scheme, no directors or chief executives had or were granted or exercised any other rights to subscribe for shares of the company, any of its specific businesses, or their associated corporations during the period[57] Purchase, Sale or Redemption of the Company's Listed Securities Neither the company nor its subsidiaries purchased, sold, or redeemed listed securities, and no treasury shares were held - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[58] - As of June 30, 2025, the company held no treasury shares[58] Corporate Governance The company generally complied with the HKEX Corporate Governance Code, with a minor deviation for efficiency in financial reporting - The company has adopted the Corporate Governance Code as set out in Appendix C1 to the Listing Rules of the Stock Exchange and is committed to maintaining high standards of corporate governance mechanisms[59] - For the period ended June 30, 2025, the company has complied with the Corporate Governance Code, except for a deviation from Code Provision D.1.2 (management should provide monthly updates to board members)[60] - The company submits monthly internal financial statements to Mr. Tang Hui (who is responsible for monitoring the company's financial position) rather than to all Board members, a deviation aimed at enhancing the company's efficiency[60] Directors' Securities Transactions The company's directors complied with the Model Code for Securities Transactions by Directors of Listed Issuers - The company's Board of Directors has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules of the Stock Exchange as the code for directors' securities transactions[61] - The company confirms that all directors complied with the required standards set out in the Model Code during the reporting period[62] Audit Committee The Audit Committee reviewed the unaudited interim financial information, deeming it compliant with accounting and disclosure requirements - The company has established an Audit Committee in accordance with Rule 3.21 of the Listing Rules, comprising four independent non-executive directors[63] - The Audit Committee's primary responsibilities include reviewing the company's financial information, overseeing the Group's financial reporting system, risk management, and internal control systems[63] - The Audit Committee has reviewed the Group's unaudited interim financial information for the six months ended June 30, 2025, and is of the opinion that such information complies with applicable accounting standards, Listing Rules, and legal requirements, and has made appropriate disclosures[63]