伟禄集团(01196) - 2025 - 中期业绩

Interim Results Overview Company Information Realord Group Holdings Limited (stock code: 1196) is a Bermuda-incorporated limited company, presenting its unaudited interim results for the six months ended June 30, 2025 - Company Name: Realord Group Holdings Limited[4] - Stock Code: 1196[2] - Reporting Period: Unaudited interim results for the six months ended June 30, 2025[4] Condensed Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, total revenue from continuing operations increased by 6.35% to HK$277,092 thousand, but the loss for the period remained high at HK$496,179 thousand, narrowing from HK$550,961 thousand in the prior year, primarily due to a swing from net other gains to losses and fair value losses on investment properties Key Data from Condensed Consolidated Statement of Profit or Loss (Continuing Operations) | Metric | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | 277,092 | 260,543 | 16,549 | 6.35% | | Cost of Sales | (212,245) | (177,544) | (34,701) | 19.54% | | Gross Profit | 64,847 | 82,999 | (18,152) | (21.87%) | | Other Income | 6,795 | 5,950 | 845 | 14.20% | | Net Other Gains and Losses | (90,067) | 76,621 | (166,688) | (217.55%) | | Net Impairment Losses | (54,757) | (81,095) | 26,338 | (32.48%) | | Net Loss from Fair Value Change of Investment Properties | (54,237) | (211,733) | 157,496 | (74.38%) | | Selling and Distribution Expenses | (1,859) | (3,660) | 1,801 | (49.21%) | | Administrative Expenses | (83,035) | (84,380) | 1,345 | (1.59%) | | Finance Costs | (295,977) | (363,806) | 67,829 | (18.64%) | | Loss Before Income Tax | (508,290) | (579,104) | 70,814 | (12.23%) | | Income Tax Credit | 12,111 | 60,458 | (48,347) | (79.97%) | | Loss for the Period from Continuing Operations | (496,179) | (518,646) | 22,467 | (4.33%) | | Loss for the Period from Discontinued Operations | – | (32,315) | 32,315 | (100.00%) | | Loss for the Period | (496,179) | (550,961) | 54,782 | (9.94%) | - Loss for the period attributable to owners of the Company was HK$479,162 thousand, a decrease from HK$515,424 thousand in the prior year[8] - Basic and diluted loss per share (continuing and discontinued operations) was 33.251 HK cents, an improvement from 35.776 HK cents in the prior year[8] Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the Group's total comprehensive expense for the period significantly decreased to HK$332,281 thousand from HK$720,341 thousand in the prior year, primarily due to a swing from exchange losses to gains and increased revaluation gains on investment properties Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Loss for the Period | (496,179) | (550,961) | 54,782 | (9.94%) | | Net Revaluation Gain on Property, Plant and Equipment | 5,790 | 1,883 | 3,907 | 207.49% | | Exchange Differences Arising from Translation of Foreign Operations | 158,108 | (171,263) | 329,371 | (192.32%) | | Other Comprehensive Income/(Expense) for the Period | 163,898 | (169,380) | 333,278 | (196.76%) | | Total Comprehensive Expense for the Period | (332,281) | (720,341) | 388,060 | (53.87%) | - Total comprehensive expense for the period attributable to owners of the Company was HK$322,438 thousand, a significant decrease from HK$667,738 thousand in the prior year[9] Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets slightly increased, but net current liabilities shifted from net current assets at year-end, primarily due to increased trade payables and bank borrowings, leading to liquidity pressure; total equity decreased, with growth in non-current liabilities from ultimate holding company loans and bank borrowings Key Data from Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Assets | | | | | | Non-current Assets | 9,686,631 | 9,494,071 | 192,560 | 2.03% | | Current Assets | 9,832,273 | 9,494,466 | 37,807 | 3.56% | | Liabilities | | | | | | Current Liabilities | 10,098,736 | 9,487,649 | 611,087 | 6.44% | | Non-current Liabilities | 5,675,063 | 5,430,078 | 244,985 | 4.51% | | Equity | | | | | | Equity Attributable to Owners of the Company | 2,385,877 | 2,701,739 | (315,862) | (11.69%) | | Non-controlling Interests | 1,359,228 | 1,369,071 | (9,843) | (0.72%) | | Total Equity | 3,745,105 | 4,070,810 | (325,705) | (8.00%) | | Net Current (Liabilities)/Assets | (266,463) | 6,817 | (273,280) | (4008.80%) | | Investment Properties | 9,148,131 | 8,971,830 | 176,301 | 1.96% | | Properties Under Development | 5,845,685 | 5,633,874 | 211,811 | 3.76% | | Bank Balances and Cash | 40,043 | 30,690 | 9,353 | 30.48% | | Bank Borrowings (Current) | 7,648,932 | 7,432,244 | 216,688 | 2.92% | | Ultimate Holding Company Loans (Non-current) | 2,787,039 | 2,614,469 | 172,570 | 6.60% | - Net current liabilities were HK$266,463 thousand, compared to net current assets of HK$6,817 thousand at the end of last year, indicating a deterioration in liquidity[10] Notes to the Condensed Consolidated Interim Financial Statements Basis of Preparation The condensed consolidated interim financial statements are prepared in accordance with HKAS 34 and Appendix D2 of the Listing Rules, presented in HK dollars, using the historical cost convention, with certain assets and financial instruments measured at revalued or fair value, and are consistent with the 2024 annual consolidated financial statements, except for HKAS 21 amendments, and are unaudited but reviewed by the audit committee - Financial statements are prepared in accordance with HKAS 34 and Appendix D2 of the Listing Rules[12] - The presentation currency is HK dollars, using the historical cost convention, with certain assets measured at revalued or fair value[13] - The financial statements are unaudited by the auditor but have been reviewed by the Company's audit committee[14] Going Concern Basis Despite a loss of HK$496,179 thousand and net current liabilities of HK$266,463 thousand as of June 30, 2025, the Board believes the Group can continue as a going concern, having reviewed cash flow forecasts and implemented measures including negotiating loan renewals, monitoring property development, controlling costs, and securing ongoing financial support from the ultimate holding company - The Group recorded a loss of HK$496,179 thousand and net current liabilities of HK$266,463 thousand for the six months ended June 30, 2025[15] - The Board believes the Group can operate on a going concern basis, supported by measures such as negotiating bank loan renewals, monitoring property project development and cost control, and continuous financial support from the ultimate holding company[16][17] - Bank borrowings totaling HK$7,189,928 thousand have been renewed with banks, extending maturities to April 11, 2030, and April 11, 2035, respectively[17] Application of New and Revised HKFRSs The Group adopted the amendments to HKAS 21 "Lack of Exchangeability" effective January 1, 2025, which had no significant impact on the condensed consolidated interim financial statements, and has not early applied other new and revised HKFRSs issued but not yet effective, with no significant impact expected upon future adoption - The amendments to HKAS 21 "Lack of Exchangeability", effective January 1, 2025, were adopted with no significant impact[18][19] - The Group has not early applied other new and revised HKFRSs issued but not yet effective, with no significant impact expected upon future adoption[20] Revenue The Group's revenue primarily derives from sales of goods and services, rental income, and interest income, with total revenue of HK$277,092 thousand for the six months ended June 30, 2025, where waste material sales from the environmental protection segment contributed the most, while financial services and Latin America and Caribbean segments saw decreased revenue - Revenue recognition principles cover sales of auto parts, waste materials, corporate finance advisory, citizenship application, securities brokerage commissions, box office ticketing, rental income, margin financing, and money lending interest income[22] Disaggregation of Revenue from Contracts with Customers In the first half of 2025, the Group's total revenue was HK$277,092 thousand, with the environmental protection segment (waste material sales) contributing the most at HK$211,830 thousand; financial services revenue was HK$43,069 thousand, and Latin America and Caribbean revenue was HK$3,669 thousand, both decreasing from the prior year, while rental and interest income were significant non-contractual revenue sources Disaggregation of Revenue from Continuing Operations (by Type of Goods and Services) | Type of Goods and Services | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Sales of Goods – Waste Materials | 211,830 | 136,695 | 75,135 | 54.96% | | Sales of Goods – Auto Parts | – | 1,715 | (1,715) | (100.00%) | | Provision of Services – Financial Services | 8,301 | 49,944 | (41,643) | (83.38%) | | Provision of Services – Citizenship Application and Consultancy Services | 3,669 | 11,433 | (7,764) | (67.91%) | | Provision of Services – Securities Brokerage Commissions | 732 | 781 | (49) | (6.27%) | | Provision of Services – Box Office Ticketing | 1,592 | 1,262 | 330 | 26.15% | | Rental Income | 16,932 | 22,182 | (5,250) | (23.67%) | | Margin Financing Interest Income | 12,699 | 13,450 | (751) | (5.58%) | | Money Lending Business Interest Income | 21,337 | 23,081 | (1,744) | (7.56%) | | Total | 277,092 | 260,543 | 16,549 | 6.35% | - In the first half of 2025, waste material sales revenue significantly increased by 54.96%, becoming the primary growth driver[23] - Financial services and citizenship application and consultancy services revenue significantly decreased by 83.38% and 67.91%, respectively[23][24] Segment Information The Group's operations are divided into seven continuing segments: property, financial services, environmental protection, auto parts, Latin America and Caribbean, and others (including lottery tickets and cinema operations); commercial printing and department store segments were discontinued in the second half of last year, and segment performance assessment excludes bank interest, dividends, fair value changes, exchange gains/losses, corporate expenses, and certain finance costs - The Group currently has seven operating segments: property investment, financial services, environmental protection industry, auto parts distribution, Latin America and Caribbean projects, lottery ticket sales, and cinema operations[25] - The commercial printing segment and department store segment were discontinued in the second half of last year[25][26] - Segment results do not allocate bank interest income, dividend income, fair value changes, exchange gains/losses, corporate expenses, and certain finance costs[26] Segment Revenue and Results In the first half of 2025, the environmental protection segment was the main contributor to external customer sales, with revenue reaching HK$211,830 thousand, while financial services segment revenue significantly decreased; the property and environmental protection segments recorded segment losses, while the financial services segment achieved a segment profit, and the Group's overall loss before income tax was HK$508,290 thousand Segment Revenue and Results from Continuing Operations | Segment | June 30, 2025 Revenue (HK$ thousand) | June 30, 2024 Revenue (HK$ thousand) | Revenue Change (HK$ thousand) | Revenue Change (%) | June 30, 2025 Results (HK$ thousand) | June 30, 2024 Results (HK$ thousand) | Results Change (HK$ thousand) | Results Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Property | 16,932 | 22,182 | (5,250) | (23.67%) | (199,071) | (378,554) | 179,483 | (47.41%) | | Financial Services | 43,069 | 87,257 | (44,188) | (50.64%) | 18,494 | 30,613 | (12,119) | (39.59%) | | Environmental Protection | 211,830 | 136,694 | 75,136 | 54.97% | (24,955) | (71,327) | 46,372 | (65.01%) | | Auto Parts | – | 1,715 | (1,715) | (100.00%) | (25,075) | (13,044) | (12,031) | 92.24% | | Latin America and Caribbean | 3,669 | 11,433 | (7,764) | (67.91%) | (8,563) | (6,722) | (1,841) | 27.39% | | Others | 1,592 | 1,262 | 330 | 26.15% | (19) | (293) | 274 | (93.52%) | | Total | 277,092 | 260,543 | 16,549 | 6.35% | (239,189) | (439,327) | 200,138 | (45.56%) | - Environmental protection segment revenue significantly increased by 54.97%, but auto parts segment revenue became zero[29][30] - Property segment loss significantly narrowed, environmental protection segment loss also substantially decreased, but financial services segment profit declined[29][30] Segment Assets and Liabilities As of June 30, 2025, the property segment held the largest segment assets and liabilities, at HK$15,550,518 thousand and HK$8,719,154 thousand respectively, with the Group's total assets increasing to HK$19,518,904 thousand and total liabilities to HK$15,773,799 thousand Segment Assets and Liabilities (as of June 30, 2025) | Segment | Segment Assets (HK$ thousand) | Segment Liabilities (HK$ thousand) | | :--- | :--- | :--- | | Property | 15,550,518 | 8,719,154 | | Financial Services | 1,059,373 | 113,546 | | Environmental Protection | 319,098 | 125,109 | | Auto Parts | 92,529 | 6,736 | | Latin America and Caribbean | 2,356,936 | 211,920 | | Others | 3,208 | 263 | | Total | 19,381,662 | 9,176,728 | | Corporate and Unallocated Assets/Liabilities | 137,242 | 6,597,071 | | Grand Total | 19,518,904 | 15,773,799 | - Property segment assets and liabilities dominate within the Group[31] - Corporate and unallocated liabilities amounted to HK$6,597,071 thousand, indicating substantial unallocated liabilities at the Group level[31] Other Income In the first half of 2025, the Group's other income increased to HK$6,795 thousand, primarily comprising interest income from credit-impaired loans (HK$3,599 thousand) and income from shared office locations (HK$1,281 thousand), while bank interest income slightly decreased Details of Other Income | Item | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Bank Interest Income | 1,033 | 1,173 | (140) | (11.93%) | | Dividend Income | 701 | 607 | 94 | 15.49% | | Government Grants | 124 | 126 | (2) | (1.59%) | | Interest Income from Credit-Impaired Loans | 3,599 | 3,460 | 139 | 4.02% | | Income from Shared Office Locations | 1,281 | – | 1,281 | N/A | | Others | 57 | 584 | (527) | (90.24%) | | Total | 6,795 | 5,950 | 845 | 14.20% | - Income from shared office locations is a new revenue source, contributing HK$1,281 thousand[33] Net Other Gains and Losses In the first half of 2025, the Group's net other gains and losses swung from a gain of HK$76,621 thousand in the prior year to a loss of HK$90,067 thousand, primarily due to net exchange losses of HK$91,510 thousand, compared to net exchange gains of HK$77,910 thousand in the prior year Details of Net Other Gains and Losses | Item | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Gains from Lease Modifications and Terminations | 29 | 57 | (28) | (49.12%) | | Loss on Disposal of Property, Plant and Equipment | (4) | (2) | (2) | 100.00% | | Net Exchange (Losses)/Gains | (91,510) | 77,910 | (169,420) | (217.45%) | | Recovery of Trade Receivables Previously Written Off by Securities Brokerage | 50 | – | 50 | N/A | | Revaluation Surplus on Property, Plant and Equipment | 901 | – | 901 | N/A | | Unrealised Fair Value Gains/(Losses) on Financial Assets at Fair Value Through Profit or Loss | 467 | (1,344) | 1,811 | (134.75%) | | Total | (90,067) | 76,621 | (166,688) | (217.55%) | - Exchange gains and losses swung from a gain of HK$77,910 thousand in the prior year to a loss of HK$91,510 thousand, which is the main reason for the net loss[34] - Unrealised fair value of financial assets at fair value through profit or loss swung from a loss to a gain[34] Finance Costs In the first half of 2025, the Group's finance costs decreased by 18.64% year-on-year to HK$295,977 thousand, primarily due to a significant reduction of HK$68,112 thousand in interest on bank borrowings and overdrafts, while interest on other borrowings and ultimate holding company loans remained largely unchanged Details of Finance Costs | Item | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Interest on Bank Borrowings and Overdrafts | 173,360 | 241,472 | (68,112) | (28.20%) | | Interest on Other Borrowings | 17,617 | 12,928 | 4,689 | 36.27% | | Interest on Ultimate Holding Company Loans | 104,685 | 107,231 | (2,546) | (2.37%) | | Interest on Amounts Due to Related Parties | 13 | 1,658 | (1,645) | (99.22%) | | Finance Charges on Lease Liabilities | 302 | 517 | (215) | (41.59%) | | Total | 295,977 | 363,806 | (67,829) | (18.64%) | - The reduction in bank borrowing interest is the primary driver for the decrease in finance costs[35] Income Tax Credit for Continuing Operations In the first half of 2025, the Group's income tax credit for continuing operations was HK$12,111 thousand, a significant decrease from HK$60,458 thousand in the prior year, mainly due to a substantial decline in deferred tax credits; the Group operates in Hong Kong, China, Japan, and Grenada, but no taxable profits were generated in regions other than Hong Kong during the period Details of Income Tax Credit | Item | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Current Tax – Hong Kong | 1,097 | 2,269 | (1,172) | (51.65%) | | Deferred Tax | (13,208) | (62,727) | 49,519 | (78.95%) | | Income Tax Credit | (12,111) | (60,458) | 48,347 | (79.97%) | - The significant reduction in deferred tax credit is the main reason for the decrease in total income tax credit[37] - The Group's tax rates in Hong Kong, China, Japan, and Grenada are 16.5%, 25%, 34.6%, and 28% respectively, but no taxable profits were generated in China, Japan, and Grenada during the period[37][38][39][40] Dividends For the six months ended June 30, 2025, the Company neither paid nor proposed any dividends to ordinary shareholders, and no such proposal has been made since the end of the reporting period - No dividends were paid or proposed during the period[41] Loss Per Share As of June 30, 2025, the Group's basic and diluted loss per share from continuing operations was 33.251 HK cents, an improvement from 33.980 HK cents in the prior year, with diluted loss being the same as basic loss due to the anti-dilutive effect of potential ordinary shares; there was no loss from discontinued operations for the period, compared to HK$25,875 thousand in the prior year Continuing Operations Loss from continuing operations attributable to owners of the Company was HK$479,162 thousand, with basic and diluted loss per share of 33.251 HK cents, and diluted loss being the same as basic loss due to the anti-dilutive effect of potential ordinary shares Loss Per Share Data for Continuing Operations | Metric | June 30, 2025 (HK$ thousand/number of shares) | June 30, 2024 (HK$ thousand/number of shares) | | :--- | :--- | :--- | | Loss from Continuing Operations Attributable to Owners of the Company | (479,162) | (489,549) | | Weighted Average Number of Ordinary Shares for Basic Loss Per Share Calculation | 1,440,709,880 | 1,440,709,880 | | Weighted Average Number of Ordinary Shares for Diluted Loss Per Share Calculation | 1,441,054,631 | 1,440,709,880 | | Basic Loss Per Share (HK cents) | (33.251) | (33.980) | | Diluted Loss Per Share (HK cents) | (33.251) | (33.980) | - Both basic and diluted loss per share from continuing operations have improved[44] Discontinued Operations In the first half of 2025, the loss from discontinued operations attributable to owners of the Company was zero, compared to HK$25,875 thousand in the prior year, resulting in zero basic and diluted loss per share from discontinued operations for the current period Loss Per Share Data for Discontinued Operations | Metric | June 30, 2025 (HK$ thousand/number of shares) | June 30, 2024 (HK$ thousand/number of shares) | | :--- | :--- | :--- | | Loss from Discontinued Operations Attributable to Owners of the Company | – | (25,875) | | Weighted Average Number of Ordinary Shares for Basic Loss Per Share Calculation | 1,440,709,880 | 1,440,709,880 | | Weighted Average Number of Ordinary Shares for Diluted Loss Per Share Calculation | 1,441,054,631 | 1,440,709,880 | | Basic Loss Per Share (HK cents) | – | (1.796) | | Diluted Loss Per Share (HK cents) | – | (1.796) | - There was no loss from discontinued operations in the current period, having no impact on loss per share[45] Continuing and Discontinued Operations The total loss from continuing and discontinued operations attributable to owners of the Company was HK$479,162 thousand, a decrease from HK$515,424 thousand in the prior year, with basic and diluted loss per share both at 33.251 HK cents Loss Per Share Data for Continuing and Discontinued Operations | Metric | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Loss from Continuing Operations Attributable to Owners of the Company | (479,162) | (489,549) | | Loss from Discontinued Operations Attributable to Owners of the Company | – | (25,875) | | Loss Used to Calculate Basic and Diluted Loss Per Share | (479,162) | (515,424) | | Basic and Diluted Loss Per Share (HK cents) | (33.251) | (35.776) | - Total loss per share decreased year-on-year, reflecting an improvement in overall operating performance[48] Investment Properties As of June 30, 2025, the carrying amount of the Group's investment properties increased to HK$9,148,131 thousand; a net loss from fair value change of HK$54,237 thousand was recorded for the period, but exchange adjustments generated a gain of HK$255,713 thousand, partially offsetting the loss, and some investment properties are pledged as collateral for bank and other borrowings Details of Investment Property Movements | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | At Beginning/End of Period | 8,971,830 | 9,542,078 | | Additions | 25 | 177 | | Disposals | (25,200) | – | | Net Loss from Fair Value Change | (54,237) | (260,392) | | Exchange Adjustments | 255,713 | (310,033) | | At End/Beginning of Period | 9,148,131 | 8,971,830 | - The net loss from fair value change of investment properties significantly narrowed year-on-year, while exchange adjustments swung from a loss to a gain[50] - Some investment properties are pledged as collateral for bank and other borrowings[50] Trade Receivables / Receivables from Securities Brokerage / Loans Receivable As of June 30, 2025, the Group's net trade receivables were HK$329,679 thousand, a slight decrease from year-end, with over one year being the largest aging category; net receivables from securities brokerage were HK$277,714 thousand, and net loans receivable were HK$478,871 thousand, both slightly increasing, and the Group maintains strict control over receivables and regularly reviews overdue balances Details of Net Receivables | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Trade Receivables | 329,679 | 346,039 | (16,360) | (4.73%) | | Net Receivables from Securities Brokerage | 277,714 | 295,402 | (17,688) | (5.99%) | | Net Loans Receivable | 478,871 | 455,409 | 23,462 | 5.15% | | Total | 1,086,264 | 1,096,850 | (10,586) | (0.97%) | Trade Receivables The credit period for trade receivables is generally 1 to 3 months; as of June 30, 2025, trade receivables over 1 year amounted to HK$218,263 thousand, representing a high proportion but a decrease from year-end Aging Analysis of Trade Receivables (Net of Provision for Credit Losses) | Aging | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Current to 30 Days | 67,605 | 57,647 | | 31 to 60 Days | 5,357 | 8,091 | | 61 to 90 Days | 17,246 | 580 | | 91 to 365 Days | 21,208 | 13,716 | | Over 1 Year | 218,263 | 266,005 | | Total | 329,679 | 346,039 | - Trade receivables over 1 year represent the highest proportion but decreased year-on-year[52] Receivables from Securities Brokerage Receivables from securities brokerage primarily include amounts due from cash clients and loans to margin clients, with a typical settlement period of two trading days after the transaction date; loans to margin clients are secured by pledged securities, repayable on demand, and bear interest at commercial rates, with the Board deeming an aging analysis meaningless - Amounts due from cash clients and loans to margin clients are the main components[51] - Loans to margin clients are secured by pledged securities and bear interest at commercial rates[53] Loans Receivable Loans receivable are unsecured, repayable within one year according to agreed repayment dates, and bear interest at commercial rates, with the Board deeming an aging analysis meaningless - Loans receivable are unsecured, repayable within one year, and bear interest at commercial rates[54] Trade Payables / Payables from Securities Brokerage As of June 30, 2025, the Group's trade payables significantly increased to HK$331,041 thousand, with credit terms ranging from 60 to 90 days; payables from securities brokerage were HK$93,531 thousand, primarily comprising amounts due to cash and margin clients, including HK$91,475 thousand held on behalf of clients Details of Payables | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Trade Payables | 331,041 | 174,939 | 156,102 | 89.23% | | Payables from Securities Brokerage | 93,531 | 96,357 | (2,826) | (2.93%) | | Total | 424,572 | 271,296 | 153,276 | 56.50% | - Trade payables significantly increased by 89.23%, with the largest aging category being over 90 days[55][56] - Among payables from securities brokerage, HK$91,475 thousand was cash held on behalf of clients[56] Bank Borrowings and Other Borrowings As of June 30, 2025, the Group's total bank borrowings amounted to HK$9,418,954 thousand, mostly secured and repayable within one year; other borrowings totaled HK$271,217 thousand, primarily from financial institutions and independent third parties, also mostly repayable within one year, with Group borrowings mainly secured by investment properties, properties under development, proposed development projects, and subsidiary shares, and guaranteed by the Company, directors, and controlling shareholders Bank Borrowings As of June 30, 2025, total bank borrowings were HK$9,418,954 thousand, of which HK$9,410,583 thousand were secured; most borrowings (HK$7,648,932 thousand) are classified as current liabilities, repayable within one year, with interest rates ranging from HIBOR plus 2.1% to 2.5% or 3.35% to 6.2% Details of Bank Borrowings | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Secured Bank Borrowings | 9,410,583 | 9,150,932 | | Unsecured Bank Borrowings | 8,371 | 8,466 | | Total | 9,418,954 | 9,159,398 | | Due Within One Year | 7,648,932 | 7,432,244 | | Due After One Year | 1,770,022 | 1,727,154 | - Most bank borrowings are secured and repayable within one year, posing liquidity pressure[57] - Borrowings are secured by investment properties, leasehold land and buildings, properties under development, and proposed development projects, and guaranteed by the Company, subsidiaries, directors, and controlling shareholders[58] Other Borrowings As of June 30, 2025, total other borrowings were HK$271,217 thousand, comprising HK$21,217 thousand from financial institutions (secured), HK$200,000 thousand from independent third parties (secured), and HK$50,000 thousand unsecured; all other borrowings are classified as current liabilities, repayable within one year, with interest rates ranging from prime rate plus 2.5% or a fixed annual rate of 12% Details of Other Borrowings | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Borrowings from Financial Institutions (Secured) | 21,217 | 56,140 | | Other Borrowings (Secured) | 200,000 | 200,000 | | Other Borrowings (Unsecured) | 50,000 | 50,000 | | Total | 271,217 | 306,140 | | Due Within One Year | 271,217 | 306,140 | - All other borrowings are repayable within one year, and most are secured[60] - Secured borrowings are collateralized by investment properties, subsidiary shares, and pledged securities from margin clients, and guaranteed by a director and controlling shareholder of the Company[62] Share Capital As of June 30, 2025, the Company's issued and fully paid share capital increased to HK$144,231 thousand from HK$144,071 thousand at year-end, primarily due to the issuance of 1,600,000 ordinary shares upon the exercise of share options Overview of Share Capital Movements | Item | Number of Issued Ordinary Shares | Share Capital (HK$ thousand) | | :--- | :--- | :--- | | At January 1, 2024, December 31, 2024, and January 1, 2025 | 1,440,709,880 | 144,071 | | Exercise of Share Options | 1,600,000 | 160 | | At June 30, 2025 | 1,442,309,880 | 144,231 | - The increase in share capital primarily resulted from the exercise of share options[63] Capital Commitments As of June 30, 2025, the Group's total contracted but unprovided capital commitments amounted to HK$868,830 thousand, primarily for properties under development and investment properties, a decrease from HK$944,999 thousand at year-end Details of Capital Commitments | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Investment Properties | 249,600 | 249,600 | | Properties Under Development | 590,073 | 677,780 | | Leasehold Property Improvements | 29,157 | 17,619 | | Total | 868,830 | 944,999 | - Capital commitments for properties under development decreased, but commitments for leasehold property improvements increased[64] Discontinued Operations The Group disposed of its commercial printing and department store businesses in the second half of 2024; the commercial printing segment recorded a loss of HK$5,726 thousand in the first half of 2024, and the department store segment recorded a loss of HK$26,589 thousand, resulting in zero loss from discontinued operations for the current period - The Group disposed of the commercial printing segment on August 6, 2024, and 75% of the department store segment on December 23, 2024[65] - Loss from discontinued operations for the current period was zero, compared to HK$32,315 thousand in the prior year[67] Commercial Printing Segment The commercial printing segment recorded a loss of HK$5,726 thousand in the first half of 2024, primarily due to higher administrative expenses; this business was disposed of on August 6, 2024 Commercial Printing Segment Results for H1 2024 | Metric | June 30, 2024 (HK$ thousand) | | :--- | :--- | | Revenue | 24,115 | | Cost of Sales | (7,050) | | Gross Profit | 17,065 | | Administrative Expenses | (22,298) | | Loss Before Tax | (5,824) | | Loss for the Period | (5,726) | - Net cash flow from operating activities was HK$723 thousand[68] Department Store Segment The department store segment recorded a loss of HK$26,589 thousand in the first half of 2024, primarily affected by selling and distribution expenses, administrative expenses, and finance costs; 75% of this business was disposed of on December 23, 2024 Department Store Segment Results for H1 2024 | Metric | June 30, 2024 (HK$ thousand) | | :--- | :--- | | Revenue | 64,950 | | Cost of Sales | (29,116) | | Gross Profit | 35,834 | | Selling and Distribution Expenses | (33,871) | | Administrative Expenses | (24,337) | | Finance Costs | (13,683) | | Loss Before Tax | (26,766) | | Loss for the Period | (26,589) | - Net cash flow used in operating activities was HK$2,373 thousand, and net cash flow used in financing activities was as high as HK$87,100 thousand[69] Events After Reporting Period On July 29, 2025, the Group executed loan renewal agreements with a bank, extending bank borrowings totaling HK$7,189,928 thousand to April 11, 2030, and April 11, 2035, respectively - After the reporting period, the Group successfully renewed bank borrowings totaling HK$7,189,928 thousand, extending the repayment periods[70] Management Discussion and Analysis Overall Financial Review In the first half of 2025, the Group's total revenue increased by 6.4% year-on-year to HK$277.1 million, primarily driven by the environmental protection segment, while net loss from continuing operations narrowed to HK$496.2 million; gross profit decreased, and net other gains and losses swung from a gain to a loss, but fair value losses on investment properties and finance costs significantly decreased, partially offsetting the adverse impacts - The Group's total revenue increased by 6.4% year-on-year to HK$277.1 million, and net loss from continuing operations narrowed to HK$496.2 million[72] Total Revenue Total revenue for the first half of 2025 was HK$277.1 million, a 6.4% year-on-year increase, primarily benefiting from significant growth in environmental protection segment revenue, but partially offset by decreased revenue from the property, financial services, auto parts, and Latin America and Caribbean segments Revenue Analysis by Segment | Segment | H1 2025 (HK$ million) | Share (%) | H1 2024 (HK$ million) | Share (%) | Revenue Increase/(Decrease) (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Property Segment | 16.9 | 6.1% | 22.2 | 8.5% | (5.3) | (23.9)% | | Financial Services Segment | 43.1 | 15.6% | 87.3 | 33.5% | (44.2) | (50.6)% | | Environmental Protection Segment | 211.8 | 76.4% | 136.7 | 52.5% | 75.1 | 54.9% | | Auto Parts Segment | – | – | 1.7 | 0.6% | (1.7) | (100.0)% | | Latin America and Caribbean Segment | 3.7 | 1.3% | 11.4 | 4.4% | (7.7) | (67.5)% | | Others | 1.6 | 0.6% | 1.2 | 0.5% | 0.4 | 33.3% | | Total | 277.1 | 100.0% | 260.5 | 100.0% | 16.6 | 6.4% | - Environmental protection segment revenue grew by 54.9%, being the main contributor to total revenue growth[73] Gross Profit Gross profit for the first half of 2025 was HK$64.8 million, a decrease of HK$18.2 million from HK$83.0 million in the prior year, primarily due to reduced revenue from the property, financial services, and Latin America and Caribbean segments Gross Profit Change | Metric | H1 2025 (HK$ million) | H1 2024 (HK$ million) | Change (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Gross Profit | 64.8 | 83.0 | (18.2) | (21.9)% | - The decrease in gross profit was mainly affected by reduced revenue from the property, financial services, and Latin America and Caribbean segments[74] Other Income Other income for the first half of 2025 was HK$6.8 million, a slight increase from HK$6.0 million in the prior year, primarily including interest income from credit-impaired loans of HK$3.6 million and bank interest income of HK$1.0 million Main Components of Other Income | Item | H1 2025 (HK$ million) | H1 2024 (HK$ million) | | :--- | :--- | :--- | | Interest Income from Credit-Impaired Loans | 3.6 | 3.5 | | Bank Interest Income | 1.0 | 1.2 | Net Other Gains and Losses Net other losses for the first half of 2025 were HK$90.1 million, compared to a gain of HK$76.6 million in the prior year, mainly due to net exchange losses of HK$91.5 million resulting from the appreciation of RMB against HKD, and a swing from unrealised fair value losses to gains on financial assets at fair value through profit or loss Net Other Gains and Losses Change | Item | H1 2025 (HK$ million) | H1 2024 (HK$ million) | | :--- | :--- | :--- | | Net Exchange (Losses)/Gains | (91.5) | 77.9 | | Unrealised Fair Value Gains/(Losses) on Financial Assets at Fair Value Through Profit or Loss | 0.5 | (1.3) | - RMB appreciation leading to exchange losses is the primary reason[76] Net Impairment Losses Net impairment losses for the first half of 2025 were HK$54.8 million, a decrease from HK$81.1 million in the prior year, primarily due to an increase of HK$47.5 million in expected credit losses on trade receivables and an increase of HK$7.1 million in expected credit losses on loans receivable Components of Net Impairment Losses | Item | H1 2025 (HK$ million) | H1 2024 (HK$ million) | | :--- | :--- | :--- | | Increase in Expected Credit Losses on Trade Receivables | 47.5 | 79.2 | | Increase in Expected Credit Losses on Receivables from Securities Brokerage | 0.2 | 0.5 | | Increase in Expected Credit Losses on Loans Receivable | 7.1 | 1.4 | | Total | 54.8 | 81.1 | - Increased credit risk for long-outstanding trade receivables in the environmental protection and auto parts segments led to higher impairment losses on trade receivables[78] Net Loss from Fair Value Change of Investment Properties Net loss from fair value change of investment properties for the first half of 2025 was HK$54.2 million, a significant narrowing from HK$211.7 million in the prior year, primarily due to the continued stagnation of the Mainland China property market, but with a mitigated degree of deterioration Net Loss from Fair Value Change of Investment Properties | Metric | H1 2025 (HK$ million) | H1 2024 (HK$ million) | | :--- | :--- | :--- | | Net Loss | 54.2 | 211.7 | - The narrowing of losses primarily reflects a mitigated deterioration in the Mainland China property market[79] Selling and Distribution Expenses Selling and distribution expenses decreased to HK$1.9 million in the first half of 2025, a reduction of HK$1.8 million from HK$3.7 million in the prior year, mainly because other intangible assets related to customer relationships were fully amortised in February 2024 Selling and Distribution Expenses Change | Metric | H1 2025 (HK$ million) | H1 2024 (HK$ million) | | :--- | :--- | :--- | | Selling and Distribution Expenses | 1.9 | 3.7 | - The full amortisation of customer relationship intangible assets is the main reason for the decrease in expenses[80] Administrative Expenses Administrative expenses decreased to HK$83.0 million in the first half of 2025, a reduction of HK$1.4 million from HK$84.4 million in the prior year, primarily due to a HK$1.3 million decrease in staff costs Administrative Expenses Change | Metric | H1 2025 (HK$ million) | H1 2024 (HK$ million) | | :--- | :--- | :--- | | Administrative Expenses | 83.0 | 84.4 | - Reduced staff costs are the primary reason for the decrease in administrative expenses[81] Finance Costs Finance costs decreased to HK$296.0 million in the first half of 2025, a reduction of HK$67.8 million from HK$363.8 million in the prior year, primarily due to a HK$68.1 million decrease in interest on bank borrowings resulting from lower interest rates in Mainland China Finance Costs Change | Metric | H1 2025 (HK$ million) | H1 2024 (HK$ million) | | :--- | :--- | :--- | | Finance Costs | 296.0 | 363.8 | - Lower interest rates in Mainland China leading to reduced bank borrowing interest is the main reason for the decrease in finance costs[82] Net Loss Net loss for the first half of 2025 narrowed to HK$496.2 million from HK$551.0 million in the prior year; the narrowing of losses was primarily due to reduced fair value losses on investment properties, net impairment losses, and finance costs, as well as the elimination of losses from discontinued operations, though partially offset by net exchange losses and decreased gross profit Net Loss Change | Metric | H1 2025 (HK$ million) | H1 2024 (HK$ million) | | :--- | :--- | :--- | | Net Loss | 496.2 | 551.0 | - Net exchange losses and decreased gross profit adversely affected performance[83] - Reduced fair value losses on investment properties, net impairment losses, finance costs, and the elimination of losses from discontinued operations partially mitigated the adverse impacts[84] Financial Review by Segment This section provides a detailed review of the financial performance of each of the Group's continuing business segments; property segment rental income decreased but segment loss narrowed, financial services segment revenue and profit both significantly decreased, environmental protection segment revenue significantly grew and loss substantially narrowed, auto parts segment had no revenue and increased loss, Latin America and Caribbean segment revenue decreased and loss increased, and discontinued operations had no loss for the period Property Segment In the first half of 2025, property segment rental income was HK$16.9 million, a 23.9% year-on-year decrease, mainly due to fewer tenants at Sincere Shopping Centre; segment loss narrowed to HK$199.1 million, primarily benefiting from reduced fair value losses on investment properties Property Segment Financial Performance | Metric | H1 2025 (HK$ million) | H1 2024 (HK$ million) | | :--- | :--- | :--- | | Rental Income | 16.9 | 22.2 | | Segment Loss | (199.1) | (378.6) | - The decrease in rental income was mainly due to fewer tenants in the shopping center[85] - The narrowing of segment loss primarily benefited from reduced fair value losses on investment properties[85] Financial Services Segment In the first half of 2025, financial services segment revenue was HK$43.1 million, a 50.6% year-on-year decrease, mainly due to reduced interest income from margin financing and money lending businesses, and no financial services income from share placement and underwriting projects during the period; segment profit decreased to HK$18.5 million, primarily affected by lower gross profit and increased provision for expected credit losses Financial Services Segment Financial Performance | Metric | H1 2025 (HK$ million) | H1 2024 (HK$ million) | | :--- | :--- | :--- | | Revenue | 43.1 | 87.3 | | Segment Profit | 18.5 | 30.6 | - The decrease in revenue was mainly due to the absence of financial services income (share placement and underwriting)[86] - The decline in segment profit was primarily affected by reduced gross profit and increased provision for expected credit losses[86] Environmental Protection Segment In the first half of 2025, environmental protection segment revenue increased to HK$211.8 million, a significant 54.9% year-on-year growth, mainly due to the expansion of the Group's customer network in Mainland China; segment loss significantly narrowed to HK$25.0 million, primarily benefiting from increased gross profit and reduced provision for expected credit losses Environmental Protection Segment Financial Performance | Metric | H1 2025 (HK$ million) | H1 2024 (HK$ million) | | :--- | :--- | :--- | | Revenue | 211.8 | 136.7 | | Segment Loss | (25.0) | (71.3) | - Revenue growth primarily benefited from the expansion of the customer network in Mainland China[87] - The narrowing of segment loss was mainly due to increased gross profit and reduced provision for expected credit losses[88] Auto Parts Segment In the first half of 2025, the auto parts segment had no revenue, compared to HK$1.7 million in the prior year, primarily due to the Group's stricter credit control over customers and continuous scaling down of operations; segment loss increased to HK$25.1 million, mainly due to decreased revenue and increased provision for expected credit losses on long-outstanding trade receivables Auto Parts Segment Financial Performance | Metric | H1 2025 (HK$ million) | H1 2024 (HK$ million) | | :--- | :--- | :--- | | Revenue | – | 1.7 | | Segment Loss | (25.1) | (13.0) | - Zero revenue and increased segment loss reflect business contraction and increased credit risk[89] Latin America and Caribbean Segment In the first half of 2025, Latin America and Caribbean segment revenue was HK$3.7 million, a 67.5% year-on-year decrease, mainly due to a reduction in the number of citizenship by investment applications approved by the relevant minister in Grenada; segment loss increased to HK$8.6 million, primarily due to decreased revenue, but partially offset by reduced amortisation of other intangible assets related to customer relationships Latin America and Caribbean Segment Financial Performance | Metric | H1 2025 (HK$ million) | H1 2024 (HK$ million) | | :--- | :--- | :--- | | Revenue | 3.7 | 11.4 | | Segment Loss | (8.6) | (6.7) | - The decrease in revenue was mainly due to fewer citizenship by investment applications[90] - Segment loss increased, but reduced amortisation of customer relationship intangible assets partially mitigated the loss[90] Discontinued Operations The Group disposed of its commercial printing segment on August 6, 2024, and 75% of its department store segment on December 23, 2024; consequently, there was no loss from discontinued operations in the first half of 2025, whereas in the first half of 2024, the commercial printing and department store segments recorded losses of HK$5.7 million and HK$26.6 million, respectively - The commercial printing segment and department store segment were sold in the second half of 2024[91][92] - There was no loss from discontinued operations in the first half of 2025[91][92] Liquidity, Financial Resources and Capital Structure The Group primarily meets its working capital needs through internal cash flow, cash reserves, bank financing, other borrowings, and ultimate holding company credit; as of June 30, 2025, cash and bank balances were HK$40.0 million, and the gearing ratio increased to 534.0%, indicating high leverage, while the Group faces foreign exchange risk but currently does not use hedging instruments, and substantial corporate guarantees and asset pledges are integral to its financing structure - The Group primarily funds its operations through internal cash flow, cash reserves, bank financing, other borrowings, and ultimate holding company credit[93] Cash and Bank Balances As of June 30, 2025, cash and bank balances were HK$40.0 million, an increase from HK$30.7 million at year-end, primarily denominated in HKD and RMB Cash and Bank Balances | Metric | June 30, 2025 (HK$ million) | December 31, 2024 (HK$ million) | | :--- | :--- | :--- | | Cash and Bank Balances | 40.0 | 30.7 | Gearing Ratio As of June 30, 2025, the Group's gearing ratio significantly increased to 534.0% from 456.3% at year-end, reflecting high leverage; total interest-bearing borrowings amounted to HK$12,741.4 million, with annual interest rates ranging from 2.65% to 12% Gearing Ratio | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gearing Ratio | 534.0% | 456.3% | | Interest-Bearing Borrowings (HK$ million) | 12,741.4 | 12,327.8 | | Equity Attributable to Owners of the Company (HK$ million) | 2,385.9 | 2,701.7 | - The gearing ratio significantly increased, indicating the Group's high financial leverage[94] Foreign Exchange Risk The Group's transactions are mostly denominated in HKD, USD, JPY, RMB, and XCD, with HKD as the reporting currency; the Group faces foreign exchange risk against HKD for USD, EUR, JPY, RMB, and XCD, but did not use financial hedging instruments as of June 30, 2025 - The Group faces multi-currency foreign exchange risk but currently does not hedge[95] Guarantees and Pledges The Group's bank borrowings and some other borrowings are backed by multiple guarantees and pledges; the Company provides corporate guarantees of HK$8,680.2 million for subsidiaries and pledges assets such as investment properties and properties under development, while directors and controlling shareholders also provide personal guarantees of HK$9,400.6 million, and other borrowings also involve corporate guarantees, investment property pledges, and directors' personal guarantees - The Company provides HK$8,680.2 million in corporate guarantees for subsidiaries[96] - Bank borrowings are secured by investment properties, leasehold land and buildings, properties under development, and proposed development projects[96] - Directors and controlling shareholders provide HK$9,400.6 million in personal guarantees[96] - Other borrowings also involve corporate guarantees, investment property pledges, and directors' personal guarantees[97] Business Review by Segment This section reviews the operational status of the Group's business segments; the property segment saw decreased rental income but narrowed losses, financial services segment revenue and profit both significantly decreased, environmental protection segment revenue significantly grew and losses substantially narrowed, auto parts segment had no revenue and increased losses, Latin America and Caribbean segment revenue decreased and losses increased, and discontinued operations had no loss for the period - The global economy and business performance remain challenging, affected by geopolitical conflicts and global economic uncertainties[98] Property Segment The Group holds five property projects: Realord Garden, Zhangkengjing Property, Realord Science Park, Lai Ying Garden, and Xikeng Property; Sincere Shopping Centre in Realord Garden has 33 tenants, Phase I of Realord Science Park has signed a lease agreement with a hotel operator, with Phase II awaiting government approval, and redevelopment work for Xikeng Property and Lai Ying Garden is ongoing, while the land use change application for Zhangkengjing Property is still under review - The Group holds five property projects with varying development progress[100] - Redevelopment work for Xikeng Property and Lai Ying Garden is ongoing, and the land use change application for Zhangkengjing Property is still under review[101] Financial Services Segment The financial services segment holds SFC Type 1, 4, 6, and 9 licenses and a money lenders license, committed to providing diversified high-quality services to clients in both primary and secondary markets - Holds multiple SFC licenses and a money lenders license, providing diversified financial services[102] Environmental Protection Segment The environmental protection segment, benefiting from the substantial scale of Realord Environmental Japan, remains the Group's primary revenue source; this segment will focus on seeking new sources of metal waste and expanding new customer bases in Mainland China and Japan - Benefiting from the scale of its Japanese operations, it is the Group's primary revenue source[103] - Will expand into Mainland China and Japanese markets, seeking new waste material sources and customers[103] Auto Parts Segment The auto parts segment recorded a segment loss in the first half of 2025 due to stricter credit control over customers and continuous scaling down of operations - Segment loss resulted from stricter credit control and reduced operational scale[104] Latin America and Caribbean Segment The Latin America and Caribbean segment's main business involves providing citizenship application and consultancy services for investment citizenship programs and developing the Grenada project; the Grenada project entails developing mixed-use properties, attracting foreign investment through the investment citizenship program, where eligible investors can obtain permanent Grenadian citizenship and passports - The main business involves citizenship application and consultancy services for investment citizenship programs, and the development of the Grenada project[105] - The Grenada project attracts foreign investment through the investment citizenship program, offering permanent citizenship and passports[105] Outlook and Corporate Strategy The Group will continue to focus on developing existing property projects, the financial services segment will develop diversified investment products for stable growth, the environmental protection segment will prudently control costs and expand its customer base, the auto parts segment will closely monitor EV trends and prudently control costs, and the Latin America and Caribbean segment will leverage investment citizenship programs to expand overseas business and seek more investment opportunities and business partners in the Caribbean and Latin American regions Property Segment The Group will focus on developing its five existing property projects (Xikeng Property, Lai Ying Garden, Realord Garden, Realord Science Park, and Zhangkengjing Property) to ensure a favorable position in this segment - Will focus on developing the five existing property projects[106] Financial Services Segment The financial services segment will continuously develop various investment products to meet market demand and provide diversified high-quality services to clients in the international capital market, with stable business growth expected in the second half of 2025 - Will develop diversified investment products, with stable business growth expected in the second half of the year[107] Environmental Protection Segment The environmental protection segment will continue to exercise prudence, control operating costs, reduce credit risk, and expand its customer base by enhancing competitive advantages to maximize shareholder returns - Will prudently control costs, reduce credit risk, and expand the customer base[108] Auto Parts Segment With the growth of the electric vehicle market and decreasing demand for gasoline cars, the auto parts segment will exercise extreme prudence in cost control and closely monitor business development - Will prudently control costs and closely monitor electric vehicle market trends[109] Latin America and Caribbean Segment The Grenada project offers the Group opportunities for business diversification and overseas expansion; the Group has initiated the Grenada project and plans to leverage the investment citizenship program to seek more investment opportunities and identify strong business partners for project participation in the Caribbean economic zone and Latin America - The Grenada project offers opportunities for business diversification and overseas expansion[110] - Plans to leverage the investment citizenship program to seek more investment opportunities and business partners in the Caribbean and Latin American regions[110] Contingent Liabilities, Commitments and Litigation As of June 30, 2025, the Group had no significant contingent liabilities or litigation, and capital commitments are disclosed in Note 16 - No significant contingent liabilities[111] - No significant litigation[113] Other Information Significant Investments, Acquisitions and Disposals For the six months ended June 30, 2025, the Group held no significant investments, nor were there any significant acquisitions or disposals of subsidiaries and associates - No significant investments, acquisitions, or disposals of subsidiaries and associates during the period[114] Events After Reporting Period Except for the bank loan renewals disclosed in Note 18 to the condensed consolidated interim financial statements, no other significant events after the reporting period have occurred as of the date of this announcement - No other significant events after the reporting period, except for bank loan renewals[115] Dividends The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - No interim dividend recommended for payment[116] Directors' Interests in Competing Business None of the Company's directors or their respective associates have any interests in any business that competes or may compete, directly or indirectly, with the Group's business, or any other conflicts of interest with the Group - Directors and their associates have no competing business interests or conflicts of interest[117] Corporate Governance Corporate Governance Practices The Company is committed to adhering to good corporate governance practices and believes it has complied with