高科桥(09963) - 2025 - 中期业绩

Company Information This section provides essential company details, including board composition, key committees, registration information, and primary business activities Board of Directors and Committees This section lists the composition of the company's Board of Directors, including executive and independent non-executive directors, and the members and chairpersons of the Audit, Remuneration, and Nomination Committees - The Board of Directors comprises 4 executive directors (including Chairman and CEO Mr. He Xingfu) and 3 independent non-executive directors[5] - The company has an Audit Committee (chaired by Mr. Leung Chiu Kwan), a Remuneration Committee (chaired by Mr. Lau Siu Hang), and a Nomination Committee (chaired by Mr. He Xingfu)[5] Company General Information This section provides the company's registered office, Hong Kong headquarters, share registrar, auditor, principal bankers, stock code, and website, noting its main business is manufacturing and selling optical fiber and cables in Hong Kong and Thailand - The company's stock code is 9963, and its website is www.transtechoptel.com[7](index=7&type=chunk) - The Group's principal business involves manufacturing and selling optical fiber and optical cables in Hong Kong and Thailand respectively[19] Financial Highlights This section presents a concise overview of the group's interim financial performance, including revenue, loss, and dividend recommendations Interim Results Overview For the six months ended June 30, 2025, the Group's revenue significantly decreased, gross loss margin substantially increased, and while loss attributable to owners narrowed slightly, the net loss margin expanded, with no interim dividend recommended | Metric | H1 2025 (HK$ million) | H1 2024 (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 38.7 | 72.9 | -46.9% | | Gross Loss Margin | 14.8% | 3.8% | +11.0% (increase) | | Loss Attributable to Owners of the Company | 12.6 | 13.7 | -8.0% (narrowed) | | Net Loss Margin | 32.6% | 18.8% | +13.8% (increase) | | Basic Loss Per Share (HK cents) | 4.9 | 5.3 | -7.5% (narrowed) | | Interim Dividend | Nil | Nil | - | Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income This section details the group's revenue, costs, and overall profit or loss, highlighting the impact of foreign exchange gains on comprehensive income Key Profit or Loss Statement Data The Group experienced a significant revenue decline and expanded gross loss in H1 2025, but net loss narrowed due to positive foreign exchange gains, leading to a shift from total comprehensive expense to income | Metric | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 38,746 | 72,852 | | Cost of Sales | (44,476) | (75,610) | | Gross Loss | (5,730) | (2,758) | | Other Income and Losses | 1,999 | (1,862) | | Loss Before Tax | (13,070) | (14,168) | | Loss for the Period | (12,644) | (13,680) | | Total Comprehensive Income/(Expense) for the Period | 640 | (31,208) | | Basic Loss Per Share (HK cents) | (4.9) | (5.3) | - Total comprehensive income for the period shifted from an expense of HK$31,208 thousand in H1 2024 to an income of HK$640 thousand in H1 2025, primarily due to exchange differences on translation of foreign operations[11] Condensed Consolidated Statement of Financial Position This section presents the group's assets, liabilities, and equity at the reporting date, showing changes in non-current assets, current assets, and cash balances Key Balance Sheet Data As of June 30, 2025, the Group's non-current assets increased, current assets and liabilities changed, resulting in a decrease in net current assets, but total assets less current liabilities and total equity remained relatively stable | Metric | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Non-current Assets | 259,155 | 244,671 | | Current Assets | 142,494 | 150,360 | | Current Liabilities | 45,744 | 39,439 | | Net Current Assets | 96,750 | 110,921 | | Total Assets Less Current Liabilities | 355,905 | 355,592 | | Net Assets | 355,399 | 354,759 | | Total Equity | 355,399 | 354,759 | - Property, plant and equipment increased from HK$225,965 thousand as of December 31, 2024, to HK$239,387 thousand as of June 30, 2025[13] - Bank balances and cash decreased from HK$17,763 thousand as of December 31, 2024, to HK$11,565 thousand as of June 30, 2025[13] Condensed Consolidated Statement of Changes in Equity This section outlines the changes in the group's total equity, primarily driven by the period's loss and foreign exchange differences from overseas operations Analysis of Changes in Equity The Group's total equity slightly increased in H1 2025, primarily due to other comprehensive income from exchange differences on translation of foreign operations, offsetting the loss for the period | Metric | June 30, 2025 (HK$ thousand) | Jan 1, 2025 (HK$ thousand) | | :--- | :--- | :--- | | Total Equity | 355,399 | 354,759 | | Loss for the Period | (12,644) | (11,400) (beginning of accumulated profits) | | Other Comprehensive Income (Exchange Differences) | 13,284 | - | | Total Comprehensive Income/(Expense) for the Period | 640 | - | - Exchange reserve improved from (HK$21,006 thousand) as of January 1, 2025, to (HK$7,722 thousand) as of June 30, 2025, reflecting a positive impact from exchange rate movements[15] Condensed Consolidated Statement of Cash Flows This section details the group's cash flows from operating, investing, and financing activities, indicating a net decrease in cash and cash equivalents Key Cash Flow Data In H1 2025, the Group's net cash used in operating activities significantly increased, and despite net cash inflow from financing activities, cash and cash equivalents experienced a net decrease overall | Metric | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (11,064) | (1,973) | | Net Cash Used in Investing Activities | (274) | (122) | | Net Cash From/(Used in) Financing Activities | 3,510 | (5,733) | | Net Decrease in Cash and Cash Equivalents | (7,828) | (7,828) | | Cash and Cash Equivalents at End of Period | 11,565 | 7,593 | - Net cash used in operating activities increased from HK$1,973 thousand in H1 2024 to HK$11,064 thousand in H1 2025[17] - Financing activities shifted from a net cash outflow of HK$5,733 thousand in H1 2024 to a net cash inflow of HK$3,510 thousand in H1 2025, primarily due to new bank borrowings exceeding repayments[17] Notes to the Unaudited Condensed Consolidated Financial Statements This section provides detailed explanations and breakdowns for various line items in the financial statements, covering accounting policies, revenue, expenses, and balance sheet components 1. General Information and Basis of Preparation This section outlines the company's registration, listing history, ultimate holding company, and principal business, stating that the interim financial statements are prepared in Hong Kong Dollars under HKFRS - The Company was incorporated in the Cayman Islands on September 6, 2016, and successfully transferred its listing from GEM to the Main Board on November 5, 2020[19] - The ultimate holding company is Hangzhou Futong Investment Co., Ltd., and the Group's principal business is manufacturing and selling optical fiber and optical cables in Hong Kong and Thailand[19] - The consolidated financial results are prepared in accordance with Hong Kong Financial Reporting Standards (HKFRS) issued by the Hong Kong Institute of Certified Public Accountants[19] 2. Significant Accounting Policies The condensed consolidated financial statements adopt the same accounting policies as the previous year's financial statements, and the adoption of new and revised HKFRS has not led to significant changes in accounting policies or reported amounts - The condensed consolidated financial statements have been prepared on a historical cost basis and follow the same accounting policies applied in the preparation of the Group's financial statements for the year ended December 31, 2024[20] - The adoption of new and revised HKFRS has not resulted in significant changes to the Group's accounting policies or the amounts reported for the current and prior periods[20] 3. Revenue and Segment Information This section details revenue by type of goods and operating segment, showing a significant decline in both optical cable and optical fiber sales, with the Group's operating segments including optical cables in Thailand and optical fiber in Hong Kong | Type of Goods | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Sales of Optical Cables | 37,441 | 69,562 | | Sales of Optical Fibers | 1,305 | 3,290 | | Total | 38,746 | 72,852 | - The Group's operating and reportable segments are (i) optical cables, optical cable cores, and other related products located in Thailand; and (ii) optical fibers located in Hong Kong[29] | Segment | H1 2025 Segment Loss (HK$ thousand) | H1 2024 Segment Profit/(Loss) (HK$ thousand) | | :--- | :--- | :--- | | Optical Cables, Optical Cable Cores and Other Related Products | (3,887) | 2,036 | | Optical Fibers | (6,204) | (14,345) | 4. Other Income, Gains and Losses This section lists income from scrap sales, bank interest, and other sources, highlighting a net foreign exchange gain in H1 2025, contrasting with a net foreign exchange loss in the prior year | Metric | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Other Income | 232 | 216 | | Net Foreign Exchange Gain/(Loss) | 1,897 | (1,862) | | Gain on Disposal of Property, Plant and Equipment | 102 | – | - A net foreign exchange gain of HK$1,897 thousand was recorded in H1 2025, compared to a net foreign exchange loss of HK$1,862 thousand in H1 2024[33] 5. Finance Costs This section discloses the Group's finance costs, primarily bank borrowing interest, showing a decrease compared to the prior year | Metric | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Interest on Bank Borrowings | 445 | 810 | 6. Loss Before Tax This section itemizes expenses deducted in calculating loss before tax, including auditor's remuneration, depreciation, directors' emoluments, staff costs, and inventory costs and provisions | Metric | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Auditor's Remuneration | 596 | 615 | | Depreciation of Property, Plant and Equipment (net) | 474 | 428 | | Total Staff Costs (net) | 6,204 | 6,256 | | Cost of Inventories Recognized as Expense | 33,937 | 75,610 | | Provision for Inventories | 3,010 | 1,917 | | Reversal of Impairment Loss on Trade Receivables | (2,448) | (2,233) | - Cost of inventories recognized as an expense significantly decreased from HK$75,610 thousand in H1 2024 to HK$33,937 thousand in H1 2025[35] 7. Income Tax Credit This section explains the composition of income tax credit, including Hong Kong profits tax and Thai corporate income tax, noting that Futong Thailand enjoys tax incentives, leading to an overall decrease in income tax credit | Metric | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Thai Corporate Income Tax (Current Tax) | 441 | (935) | | Deferred Tax | (921) | 392 | | Total Income Tax Credit | (426) | (488) | - Futong Thailand enjoys tax incentives under the Investment Promotion Act of Thailand, including a 50% reduction in corporate income tax payable from March 26, 2021, to March 25, 2026[37] 8. Dividends The Board of Directors decided not to recommend an interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Company neither paid, declared, nor proposed any dividends during the interim period (six months ended June 30, 2024: nil)[38] 9. Loss Per Share This section calculates basic loss per share and notes that diluted loss per share is not presented due to the absence of potential ordinary shares | Metric | H1 2025 (HK cents) | H1 2024 (HK cents) | | :--- | :--- | :--- | | Basic Loss Per Share | (4.9) | (5.3) | - Basic loss per share is calculated based on the loss for the period attributable to owners of the Company and the weighted average of 260,000,000 issued ordinary shares[39] - Diluted loss per share is not presented as no potential ordinary shares were issued during both periods[40] 10. Changes in Property, Plant and Equipment The Group made purchases of property, plant and equipment in H1 2025, primarily investing in machinery, motor vehicles, and construction in progress | Item | H1 2025 Purchases (HK$ thousand) | H1 2024 Purchases (HK$ thousand) | | :--- | :--- | :--- | | Machinery | 229 | 0 | | Motor Vehicles | 155 | 0 | | Construction in Progress | 2,193 | 1,201 | 11. Deposits, Prepayments and Other Receivables This section provides a detailed breakdown of non-current and current deposits, prepayments, and other receivables, disclosing significant advances to a supplier for raw material purchases and related loss provisions | Metric | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Non-current Portion (less loss allowance) | 4,027 | 3,911 | | Current Portion (less loss allowance) | 62,358 | 62,480 | | Deposits for Raw Material Purchases (current) | 172,743 | 143,333 | | Loss Allowance (current) | (129,676) | (94,635) | - As of June 30, 2025, approximately HK$48,507 thousand in prepayments (net of impairment loss of HK$124,236 thousand) included advances made to a supplier for raw material purchases[42] 12. Inventories This section lists the components of inventories, including raw materials and consumables, work in progress, finished goods, and goods in transit, along with inventory provisions | Item | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Raw Materials and Consumables | 21,491 | 23,741 | | Work in Progress | 6,408 | 7,564 | | Finished Goods | 9,997 | 10,262 | | Total Inventories (before provision) | 38,705 | 43,241 | | Provision for Inventories | (3,980) | (8,172) | | Net Inventories | 34,725 | 35,069 | 13. Trade Receivables This section provides the total amount of trade receivables, loss allowance, aging analysis, and denominated currencies, demonstrating the Group's strict control over credit risk | Metric | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Total Trade Receivables | 172,742 | 171,857 | | Loss Allowance | (138,896) | (136,809) | | Net Trade Receivables | 33,846 | 35,048 | | Aging | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | 0 to 180 days | 27,106 | 34,607 | | 181 to 270 days | 1,952 | – | | 271 to 365 days | 4,788 | – | | Over 365 days | – | 441 | - Trade receivables are primarily denominated in Thai Baht (HK$21,338 thousand) and US Dollars (HK$12,314 thousand)[46] 14. Trade Payables This section provides the total amount of trade payables, aging analysis, and denominated currencies, illustrating the Group's supplier credit terms and the currency composition of its payables | Metric | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade Payables | 10,474 | 10,253 | | Aging | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | 0 to 30 days | 7,882 | 4,942 | | 31 to 60 days | 777 | 2,049 | | 61 to 90 days | 23 | 1,853 | | 91 to 180 days | 1,345 | 1,243 | | Over 180 days | 447 | 166 | - Trade payables are primarily denominated in Renminbi (HK$5,290 thousand) and Thai Baht (HK$2,554 thousand)[49] 15. Other Payables and Accrued Charges This section lists the Group's other payables and accrued charges, showing a slight increase in their total amount | Metric | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Accrued Charges | 2,920 | 3,187 | | Other Payables | 918 | 238 | | Total | 3,838 | 3,425 | 16. Contract Liabilities This section explains the source of contract liabilities (primarily customer advances) and their changes, indicating a significant increase in contract liabilities | Metric | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Contract Liabilities | 486 | 14 | - Contract liabilities primarily arise from short-term customer advances for optical cable sales, increasing from HK$14 thousand as of December 31, 2024, to HK$486 thousand as of June 30, 2025[51] - The increase in contract liabilities is mainly due to HK$461 thousand in advances received from customers[52] 17. Bank and Other Borrowings This section provides detailed information on bank borrowings, including effective interest rates, amounts, and maturity dates, showing an increase in total borrowings, all denominated in Thai Baht | Metric | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Bank Borrowings – Unsecured | 30,875 | 25,300 | | Effective Interest Rate | 4% | 5% | - All bank borrowings are floating-rate and repayable within one year or on demand[53] - The carrying amount of bank borrowings is entirely denominated in Thai Baht[53] 18. Deferred Tax This section analyzes deferred tax assets and their changes, primarily related to tax losses, provisions for expected credit losses, and accelerated tax depreciation | Metric | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Deferred Tax Assets | 15,741 | 14,795 | - Deferred tax assets primarily consist of provisions for expected credit losses (HK$14,615 thousand) and tax losses (HK$2,030 thousand)[54] 19. Provisions This section discloses changes in the long service payment provision, which is made for employees in accordance with Thai employment regulations | Metric | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Long Service Payment Provision | 506 | 833 | - The long service payment provision was reversed by HK$364 thousand during the period, leading to a decrease in the period-end balance[55] 20. Share Capital This section describes the company's authorized and issued share capital, both of which remained unchanged during the reporting period | Metric | Number of Shares | HK$ thousand | | :--- | :--- | :--- | | Authorized Share Capital (par value HK$0.01 per share) | 1,000,000,000 | 10,000 | | Issued and Fully Paid Share Capital (par value HK$0.01 per share) | 260,000,000 | 2,600 | 21. Related Party Transactions This section discloses transactions between the Group and related parties, including rental expenses paid to Futong Group International Limited and key management personnel remuneration | Transaction Type | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Rental Expenses to Related Company | 3,900 | 4,500 | | Other Payables to Related Company (period-end) | 650 | – | | Key Management Personnel Remuneration | 1,844 | 1,786 | - Short-term lease rental expenses for plant and office premises paid to Futong Group International Limited decreased[58] 22. Contingent Liabilities The Group had no significant contingent liabilities at the end of the reporting period - As of June 30, 2025, and December 31, 2024, the Group had no significant contingent liabilities[63] 23. Approval of Financial Statements The interim financial statements were approved and authorized for issue by the Company's Board of Directors on August 27, 2025 - The interim financial statements were approved and authorized for issue by the Company's Board of Directors on August 27, 2025[64] Management Discussion and Analysis This section provides an in-depth review of the group's operational and financial performance, market outlook, and risk management strategies Business Review The Group's financial performance in H1 2025 was unsatisfactory, with a significant revenue decrease and increased gross loss, primarily due to reduced optical cable and optical fiber sales | Metric | H1 2025 (HK$ million) | H1 2024 (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 38.7 | 72.9 | -46.9% | | Gross Loss | 5.7 | 2.8 | +103.6% | | Loss Attributable to Owners of the Company | 12.6 | 13.7 | -8.0% | | Optical Cable Sales | 37.4 | 69.2 | -46.0% | | Optical Fiber Sales | 1.3 | 3.6 | -63.9% | Review The Chinese telecommunications industry faces severe challenges from demand contraction and intensified competition amid global geopolitical volatility and domestic economic slowdown, leading to uncertainties for optical fiber and cable companies - The Chinese telecommunications industry faces dual pressures of demand contraction and intensified competition, with challenges and uncertainties persisting for optical fiber and cable companies[67] Futong Thailand Futong Thailand's performance was generally poor due to a weak Thai and ASEAN market, with optical cable sales revenue significantly decreasing due to lower sales volume and prices, leading to a reduced gross profit margin | Metric | H1 2025 (HK$ million) | H1 2024 (HK$ million) | | :--- | :--- | :--- | | Thai Optical Cable Sales Revenue | 37.4 | 69.2 | | Sales to Other Countries | 6.8 | 29.3 | | Sales to Germany | 5.6 | 23.1 | | Gross Profit Margin | 3.0% | 9.2% | - The decrease in gross profit margin was mainly due to lower optical cable sales volume and prices in the Thai local market, reduced demand for optical cables and fibers, and the net effect of increased optical cable sales volume but decreased unit prices in ASEAN countries[70] High-Tech Bridge High-Tech Bridge was severely impacted by low optical fiber prices and oversupply, leading to frequent production line shutdowns and significant decreases in both revenue and net loss | Metric | H1 2025 (HK$ million) | H1 2024 (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 2.3 | 9.9 | -76.8% | | Net Loss | 6.5 | 14.2 | -54.2% | - Oversupply and weak demand for optical fiber led to frequent production line shutdowns, with all products sold internally to Futong Thailand[71] Prospects Looking ahead to H2 2025, the Chinese telecommunications industry is expected to benefit from 5G network popularization and digital economy development, with global optical cable demand also projected to grow; however, High-Tech Bridge anticipates continued optical fiber price declines and plans to suspend optical fiber drawing production to focus on new products like butterfly optical cables - Multiple factors, including the rapid popularization of 5G networks, broadband network coverage, and increased demand from the power industry, are expected to bring significant growth opportunities for the Chinese telecommunications industry[72] - Global demand for optical fiber and cables is expected to increase significantly, creating numerous export opportunities for domestic optical cable manufacturers[74] - High-Tech Bridge estimates that optical fiber prices will continue to decline due to industry overcapacity and plans to suspend its optical fiber drawing production in H2 2025[74] - All six of High-Tech Bridge's butterfly optical cable production facilities have been installed and are expected to commence production in the last quarter of 2025, with active pursuit of OEM collaborations[74] Financial Review This section provides a detailed review of the Group's financial performance, including revenue, cost of sales, gross profit, other income, selling and distribution expenses, administrative expenses, finance costs, taxation, and loss for the period, explaining the reasons for each change - Total revenue decreased by 46.9% to HK$38.7 million compared to the prior year, primarily due to decreased market demand for optical cables and optical fibers[76][77] - Cost of sales decreased by 41.1% to HK$44.5 million, but gross loss increased from HK$2.8 million to HK$5.7 million, with the gross loss margin rising from 3.8% to 14.8%, mainly due to a 10.5% decrease in optical fiber gross margin and a 5.6% decrease in optical cable gross margin[78] - A foreign exchange gain of approximately HK$1.9 million was recognized, compared to a loss of approximately HK$1.9 million in the prior year, mainly due to exchange rate fluctuations among Renminbi, Hong Kong Dollar, Thai Baht, and US Dollar[81] - Finance costs decreased to HK$0.4 million, primarily due to a reduction in bank borrowings[84] - Loss attributable to owners of the Company decreased to HK$12.6 million, mainly due to the net effect of increased foreign exchange gains, reduced finance costs, and increased reversal of impairment provision for trade receivables, partially offset by increased gross loss and inventory provisions[86] Liquidity, Financial Resources and Capital Structure The Group's primary funding sources are operating cash and bank borrowings; as of June 30, 2025, cash and cash equivalents decreased, bank borrowings increased, leading to a higher gearing ratio, while the capital structure remained unchanged since listing | Metric | June 30, 2025 (HK$ million) | Dec 31, 2024 (HK$ million) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 11.6 | 17.8 | | Total Bank and Other Borrowings | 30.9 | 25.3 | | Gearing Ratio | 8.7% | 7.1% | - The increase in gearing ratio is mainly due to the net effect of repayment of bank borrowings and an increase in total equity primarily from the loss for the period[88] - The Company's capital structure has remained unchanged since its listing date to the date of this report, comprising only ordinary shares[90] Treasury Policy The Group adopts a prudent financial management approach, controlling liquidity risk by closely monitoring its liquidity position and maintaining sufficient cash and credit facilities - The Group has adopted a prudent financial management approach for its treasury policy and maintains a sound liquidity position[91] - Management closely monitors the Group's liquidity position and maintains sufficient cash and committed credit facilities to manage liquidity risk[91] Contingent Liabilities and Litigation As of the end of the reporting period, the Group had no significant contingent liabilities or litigation - As of June 30, 2025, the Group had no significant contingent liabilities or litigation[92] Environmental Policies and Performance The Group is committed to reducing its environmental impact through pollution reduction and efficient resource utilization, striving to comply with relevant environmental laws and regulations - The Group is committed to reducing the environmental impact of its factories and offices through pollution reduction and efficient resource utilization[93] - The Group strives to comply with relevant environmental laws and regulations and continuously improves its performance[93] Key Relationships with Employees, Customers and Suppliers The Group endeavors to maintain good relationships with employees, customers, and suppliers to foster a positive workplace, meet customer requirements, and build long-term supplier relationships - The Group strives to maintain good relationships with its employees, customers, and suppliers[94] Pledge of Assets Futong Thailand has pledged land and buildings in Rayong, Thailand, as collateral for a credit facility of THB 300 million (approximately HK$68,190,000) - Futong Thailand has pledged a piece of land measuring 58,149 square meters and buildings thereon located in Rayong, Thailand, as collateral for a credit facility of THB 300 million (approximately HK$68,190,000)[95] Foreign Exchange Risk The Group faces foreign exchange risk from fluctuations in USD and RMB against THB, and RMB against HKD, and has established a foreign exchange risk management policy - The Group's foreign exchange risk primarily arises from fluctuations in the exchange rates of US Dollar and Renminbi against Thai Baht, and Renminbi against Hong Kong Dollar[96] - The Group has established a foreign exchange risk management policy to manage foreign exchange risk[96] Interest Rate Risk The Group faces fair value interest rate risk and cash flow interest rate risk but currently does not use derivatives for hedging, with management maintaining a balanced portfolio of fixed and floating-rate borrowings - The Group's fair value interest rate risk primarily relates to its fixed-rate bank deposits, lease liabilities, and bank borrowings[98] - The Group currently does not use any derivative contracts to hedge its interest rate risk, and management maintains a balanced portfolio of fixed-rate and floating-rate borrowings[98] Credit Risk The Group's credit risk primarily stems from trade and other receivables, which is mitigated through credit limits, monitoring procedures and impairment assessments - The Group's credit risk primarily arises from trade receivables and other receivables from customer contracts[99] - Senior management is responsible for setting credit limits and monitoring procedures, and conducting impairment assessments to estimate expected credit loss amounts[99] Liquidity Risk The Group's management regularly monitors cash flow to maintain funding flexibility by ensuring committed credit facilities are available - The Group's management regularly monitors the Group's cash flow position to ensure strict control over its cash flows[100] - The Group aims to maintain funding flexibility by keeping committed credit facilities available[100] Capital Commitments As of the end of the reporting period, the Group had no capital commitments - As of June 30, 2025, and December 31, 2024, the Group had no capital commitments[101] Material Investments Held The Group held no material equity investments in any other companies during the reporting period - During the reporting period, the Group held no material equity investments in any other companies[102] Employees and Remuneration Policy The Group's employee count decreased, and total staff costs slightly declined; the company offers competitive remuneration and internal training, with director and senior management remuneration reviewed by the Board | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Number of Employees (including directors) | 157 employees | 173 employees | | Metric | H1 2025 (HK$ million) | H1 2024 (HK$ million) | | :--- | :--- | :--- | | Total Staff Costs (including directors' emoluments) | 11.1 | 11.7 | - The Group offers competitive remuneration packages and various internal training courses, with directors' and senior management's remuneration reviewed and approved by the Board[103] Other Information This section covers additional disclosures including future plans, significant transactions, director and shareholder interests, and corporate governance practices Future Plans for Material Investments and Capital Assets The Group currently has no future plans for material investments and capital assets - The Group has no plans for any material investments and capital assets[105] Material Acquisitions and Disposals of Subsidiaries or Affiliated Companies For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries or affiliated companies, nor did it hold any material investments - For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries or affiliated companies[106] - For the six months ended June 30, 2025, the Group held no material investments[106] Disclosure of Interests of Directors and Major Shareholders This section discloses the interests of directors and major shareholders in the Company's shares, confirming no disclosable interests for directors and chief executives, listing major shareholders and their shareholding percentages, and confirming no pledged shares by major shareholders - During the six months ended June 30, 2025, and up to the date of this report, none of the Company's directors or chief executives had any interests or short positions required to be disclosed under the Securities and Futures Ordinance[107] | Shareholder Name | Nature of Interest | Number of Shares Held | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Wang Jianyi | Interest in controlled corporation | 195,000,000 (L) | 75% | | Futong Investment | Interest in controlled corporation | 195,000,000 (L) | 75% | | Futong China | Interest in controlled corporation | 195,000,000 (L) | 75% | | Hangzhou Futong Optical Communication Investment Co., Ltd. | Interest in controlled corporation | 195,000,000 (L) | 75% | | Futong Hong Kong | Beneficial interest | 195,000,000 (L) | 75% | - For the six months ended June 30, 2025, no major shareholders pledged all or part of their interests in the Company's shares[113] Dividends The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025[114] Share Option Scheme The Company does not have a share option scheme - The Company has no share option scheme[115] Directors' Rights to Acquire Shares During the reporting period, no rights to acquire shares or debentures of the Company were granted to or exercised by any director or their respective spouses or children under 18 - During the reporting period, no rights to acquire benefits by way of shares or debentures of the Company were granted to or exercised by any director or their respective spouses or children under the age of eighteen[116] Public Float The Company has maintained the minimum public float as stipulated by the Listing Rules - The Company has maintained the minimum 25% public float of its issued shares as stipulated by the Listing Rules[118] Purchase, Sale or Redemption of the Company's Listed Securities For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's securities - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's securities[119] Compliance with Model Code for Securities Transactions by Directors The Company has adopted a model code for securities transactions by directors, and all directors have confirmed compliance during the reporting period - The Group has adopted a model code for securities transactions by directors, and all directors have confirmed compliance with the model code during the reporting period[120] Competing Interests As of June 30, 2025, no directors, controlling shareholders, or their close associates had any interests in businesses that compete or conflict with the Group's business - As of June 30, 2025, no directors, controlling shareholders of the Company, or their respective close associates had any interests in businesses that directly or indirectly compete or may compete with, or have any other conflict of interest with, the Group's business[121] Audit Committee The Audit Committee, composed of three independent non-executive directors, has reviewed the Group's interim results and confirmed their compliance with applicable accounting standards and proper disclosure - The Audit Committee is composed of three independent non-executive directors, with Mr. Leung Chiu Kwan serving as Chairman[122] - The Audit Committee has reviewed the Group's unaudited condensed consolidated interim results for the six months ended June 30, 2025, and believes that the statements were prepared in compliance with applicable accounting standards and that appropriate disclosures have been made[124] Corporate Governance Practices and Other Information The Company has adopted and complied with the Corporate Governance Code, committed to maintaining high standards of corporate governance to enhance management effectiveness, transparency, risk management, and protect shareholder interests - The Company has adopted the Corporate Governance Code as its own code of corporate governance practices and has complied with it throughout the reporting period[125] - The Company is committed to maintaining a high level of corporate governance, believing that good corporate governance enhances management effectiveness and efficiency, increases transparency, improves risk management and internal controls, and protects the interests of shareholders and the Company as a whole[125] Events After Reporting Period After the reporting period, High-Tech Bridge renewed its property lease agreement with Futong Group International Limited, which constitutes a continuing connected transaction for the Group - High-Tech Bridge renewed its property lease agreement with Futong Group International Limited for a period of one year starting from July 1, 2025, which constitutes a continuing connected transaction for the Group[126] Compliance with Laws and Regulations For the six months ended June 30, 2025, the Group was not aware of any non-compliance with relevant laws and regulations that would have a material impact on it - For the six months ended June 30, 2025, the Group was not aware of any non-compliance with relevant laws and regulations that would have a material impact on it[127] Publication of Interim Report This interim report has been published on the websites of Hong Kong Exchanges and Clearing Limited and the Company - This interim report is published on the websites of Hong Kong Exchanges and Clearing Limited (www.hkexnews.com.hk) and the **Company (www.transtechoptel.com)**[128](index=128&type=chunk)