汇彩控股(01180) - 2025 - 中期业绩

Condensed Consolidated Financial Statements This section presents the unaudited condensed consolidated financial statements for the six months ended June 30, 2025, detailing the Group's financial performance, position, and accounting policies Condensed Consolidated Income Statement For the six months ended June 30, 2025, revenue increased by 19.4% to HKD 507,944 thousand, and profit for the period surged by 48.9% to HKD 177,781 thousand, driven by higher gross profit and reduced finance costs Key Data from Condensed Consolidated Income Statement (HKD thousands) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 507,944 | 425,271 | | Cost of sales and services | (179,299) | (167,048) | | Gross profit | 328,645 | 258,223 | | Other income, gains and losses | 22,776 | 18,450 | | Marketing, selling and distribution expenses | (58,847) | (57,850) | | Operating and administrative expenses | (98,789) | (85,558) | | Amortization of intangible assets | (6,068) | (6,068) | | Finance costs | (3,753) | (6,144) | | Profit before tax | 183,969 | 121,053 | | Taxation | (6,188) | (1,646) | | Profit for the period | 177,781 | 119,407 | | Profit attributable to owners of the Company | 172,459 | 116,116 | | Basic earnings per share (HK cents) | 16.4 | 11.0 | - Revenue increased by 19.4% year-on-year, and profit for the period increased by 48.9% year-on-year[4] - Gross profit increased by 27.3%, and finance costs decreased by 38.9%[4] Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, total comprehensive income increased by 52.9% to HKD 174,496 thousand from HKD 114,801 thousand last year, driven by profit growth despite foreign exchange differences from overseas operations shifting from gain to expense Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (HKD thousands) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the period | 177,781 | 119,407 | | Exchange differences arising on translation of foreign operations | (3,332) | 1,603 | | Reclassification of cumulative exchange reserve on disposal/deregistration of a foreign operation | 47 | (6,209) | | Total comprehensive income for the period | 174,496 | 114,801 | | Total comprehensive income attributable to owners of the Company | 169,736 | 111,256 | - Total comprehensive income for the period increased by 52.9% year-on-year[5] - Exchange differences arising on translation of foreign operations shifted from a gain of HKD 1,603 thousand in 2024 to an expense of HKD 3,332 thousand in 2025[5] Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Company's total net assets increased by 9.3% to HKD 590,527 thousand from December 31, 2024, reflecting a significant rise in net current assets, optimized debt structure, and steady growth in shareholders' equity Key Data from Condensed Consolidated Statement of Financial Position (HKD thousands) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-current assets | 283,354 | 301,462 | | Current assets | 561,792 | 525,409 | | Current liabilities | (149,922) | (173,107) | | Net current assets | 411,870 | 352,302 | | Non-current liabilities | (104,697) | (113,713) | | Net assets | 590,527 | 540,051 | | Equity attributable to owners of the Company | 555,614 | 501,618 | | Total equity | 590,527 | 540,051 | - Net assets increased by 9.3% to HKD 590,527 thousand[7] - Net current assets increased by 16.9% to HKD 411,870 thousand[6] Notes to the Condensed Consolidated Financial Statements This section details key financial information including the basis of preparation, principal accounting policies, revenue composition, segment results, finance costs, taxation, dividends, earnings per share, trade and other receivables/payables, and capital commitments, providing supplementary explanations for understanding the Group's financial performance General Information and Basis of Preparation The Company is an exempted company incorporated in Bermuda with shares listed on the Stock Exchange. The condensed consolidated financial statements are presented in HKD and prepared in accordance with HKAS 34 'Interim Financial Reporting' and applicable disclosure requirements of the Listing Rules - The Company is an exempted company incorporated in Bermuda, with its shares listed on the Stock Exchange[8] - The financial statements are presented in HKD and prepared in accordance with HKAS 34 and the Listing Rules[8] Principal Accounting Policies The condensed consolidated financial statements are prepared on a historical cost basis, with accounting policies and methods consistent with the Group's annual consolidated financial statements for the year ended December 31, 2024. The application of revised HKFRSs during this interim period had no significant impact on the Group's financial position or performance - The condensed consolidated financial statements are prepared on a historical cost basis, with accounting policies consistent with the 2024 annual consolidated financial statements[9] - The application of revised HKFRSs had no significant impact on the financial position or performance during this interim period[10] Revenue For the six months ended June 30, 2025, the Group's total revenue reached HKD 507,944 thousand, a 19.4% year-on-year increase. Major revenue sources were casino management services (HKD 382,576 thousand) and entertainment system sales and leasing (HKD 125,368 thousand), with the innovative and renewable energy business ceasing to contribute revenue Revenue Analysis (HKD thousands) | Revenue Source | 2025 | 2024 | | :--- | :--- | :--- | | Casino management services | 382,576 | 356,515 | | Entertainment systems (Macau) | 125,021 | 68,144 | | Entertainment systems (Overseas) | 347 | — | | Innovative and renewable energy solutions business | — | 612 | | Total Revenue | 507,944 | 425,271 | - Total revenue increased by 19.4% year-on-year, primarily driven by casino management services and entertainment systems business[11] - The innovative and renewable energy solutions business has ceased to contribute revenue[11] Segment Information For the six months ended June 30, 2025, the Group's main operating segments were casino management services and entertainment systems. The service agreement for casino management services will not be renewed after its expiry on December 31, 2025. The innovative and renewable energy solutions business was disposed of during the period - The main operating segments are casino management services, entertainment systems, and the disposed innovative and renewable energy solutions business[12] - The casino management services agreement for Casino Golden Dragon in Macau will not be renewed or extended after its expiry on December 31, 2025[12] - The Group has fully disposed of its equity interest in the subsidiary within the innovative and renewable energy solutions business segment[12] Segment Results (HKD thousands) | Segment | 2025 Revenue | 2025 Results | 2024 Revenue | 2024 Results | | :--- | :--- | :--- | :--- | :--- | | Casino management services | 382,576 | 150,702 | 356,515 | 124,480 | | Entertainment systems | 125,368 | 48,509 | 68,144 | 7,876 | | Innovative and renewable energy solutions business | — | — | 612 | (918) | | Consolidated Total | 507,944 | 199,211 | 425,271 | 131,438 | Revenue by Business Location (HKD thousands) | Region | 2025 | 2024 | | :--- | :--- | :--- | | Macau | 507,597 | 424,659 | | Mainland China | — | 612 | | Others | 347 | — | | Total | 507,944 | 425,271 | Major Customer Revenue Contribution (HKD thousands) | Segment | 2025 | 2024 | | :--- | :--- | :--- | | Casino management services | 382,576 | 356,515 | | Entertainment systems | 55,684 | 4,437 | | Total | 438,260 | 360,952 | Finance Costs For the six months ended June 30, 2025, total finance costs significantly decreased by 38.9% to HKD 3,753 thousand from HKD 6,144 thousand in the prior year, primarily due to lower interest expenses on bank borrowings, shareholder loans, and lease liabilities Finance Costs (HKD thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Interest on bank borrowings | 1,526 | 2,059 | | Interest on shareholder loans | 1,249 | 2,582 | | Interest on lease liabilities | 978 | 1,503 | | Total | 3,753 | 6,144 | - Finance costs decreased by 38.9% year-on-year, primarily due to lower interest expenses on various borrowings[19] Profit Before Tax is Stated After Charging Profit before tax for the period is stated after charging various expenses, including total staff costs of HKD 63,497 thousand (15.6% year-on-year increase), research and development expenses of HKD 22,111 thousand (45.4% year-on-year increase), and casino management services commission fees of HKD 16,278 thousand (31.6% year-on-year decrease), while bank interest income significantly increased Items Charged to Profit Before Tax (HKD thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Directors' emoluments | 9,388 | 8,253 | | Total staff costs | 63,497 | 54,922 | | Cost of inventories recognized as expense (included in cost of sales and services) | 26,288 | 23,388 | | Cost of inventories recognized as expense (included in operating and administrative expenses) | 7,555 | 6,596 | | Depreciation of property, plant and equipment | 15,350 | 14,083 | | Depreciation of right-of-use assets | 7,648 | 7,957 | | Commission fees for casino management services | 16,278 | 23,798 | | Research and development expenses | 22,111 | 15,205 | | Bank interest income | 4,245 | 1,096 | | Gain on disposal/deregistration of subsidiaries | 965 | 6,209 | - Total staff costs increased by 15.6% year-on-year to HKD 63,497 thousand[21] - Research and development expenses significantly increased by 45.4% year-on-year to HKD 22,111 thousand[21] - Commission fees for casino management services decreased by 31.6% year-on-year to HKD 16,278 thousand[21] Taxation For the six months ended June 30, 2025, taxation expenses significantly increased to HKD 6,188 thousand from HKD 1,646 thousand in the prior year, primarily due to higher Macau Complementary Tax, while Mainland China and overseas subsidiaries had no tax provision due to absence of taxable profits Taxation Expenses (HKD thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Macau Complementary Tax | 5,000 | 250 | | Dividend tax | 1,188 | 1,358 | | PRC Enterprise Income Tax | — | 38 | | Total | 6,188 | 1,646 | - Macau Complementary Tax significantly increased due to the expiry of the income exemption period for SJM Resorts' gaming operations[23] - The Group is applying for an exemption approval for Macau Complementary Tax for the period from January 1, 2023, to December 31, 2025[23] Dividends The Board has resolved to declare an interim dividend of 7.5 HK cents per share for the six months ended June 30, 2025, an increase from 5.0 HK cents per share in the prior year. A final dividend of 11.0 HK cents per share for 2024 was declared and paid during the period - A final dividend of 11.0 HK cents per share for 2024 was declared and paid, totaling HKD 115,740 thousand[27] - The Board resolved to declare an interim dividend of 7.5 HK cents per share for 2025, an increase from 5.0 HK cents per share in the prior year[27] Dividend Distribution (HKD thousands) | Dividend Type | 2025 | 2024 | | :--- | :--- | :--- | | 2024 Final Dividend (Paid) | 115,740 | — | | 2025 Interim Dividend (Proposed) | 78,914 | 52,609 | Earnings Per Share For the six months ended June 30, 2025, basic earnings per share significantly increased by 49.1% to 16.4 HK cents from 11.0 HK cents in the prior year, reflecting enhanced company profitability Basic Earnings Per Share (HK cents) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Basic earnings per share | 16.4 | 11.0 | | Profit attributable to owners of the Company (HKD thousands) | 172,459 | 116,116 | | Weighted average number of shares (thousands) | 1,052,185 | 1,052,185 | - Basic earnings per share increased by 49.1% year-on-year to 16.4 HK cents[28] - No diluted earnings per share is presented as there were no dilutive potential ordinary shares during the period[28] Trade and Other Receivables As of June 30, 2025, net trade and other receivables increased by 8.6% to HKD 109,982 thousand from December 31, 2024, with net trade receivables rising to HKD 71,190 thousand, of which 94.0% had the best credit rating and a small proportion of overdue accounts Trade and Other Receivables (HKD thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net trade receivables | 71,190 | 53,609 | | Deposits paid | 12,893 | 15,193 | | Amount due from an associate | 2,256 | 2,256 | | Loans receivable | — | 4,126 | | Other receivables | 9,908 | 11,424 | | Prepayments | 3,877 | 4,796 | | Total | 109,982 | 101,262 | - Net trade receivables increased to HKD 71,190 thousand, with 94.0% having the best credit rating[30][31] - Overdue trade receivables of HKD 1,750 thousand for 90 days or more were not considered in default[31] Ageing Analysis of Trade Receivables (HKD thousands) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 0 to 30 days | 66,926 | 48,353 | | 31 to 60 days | 285 | 445 | | 61 to 90 days | 2,222 | 304 | | 91 to 180 days | 25 | 2,343 | | 181 to 365 days | 1,693 | 1,027 | | Over 365 days | 39 | 1,137 | | Total | 71,190 | 53,609 | Trade and Other Payables As of June 30, 2025, total trade and other payables decreased by 2.9% to HKD 58,125 thousand from December 31, 2024. Trade payables increased to HKD 8,019 thousand, while amounts due to directors and payables for property, plant, and equipment significantly decreased Trade and Other Payables (HKD thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables | 8,019 | 5,009 | | Accrued staff costs | 14,510 | 15,414 | | Accrued promotion expenses | 23,409 | 21,418 | | Amounts due to directors | 1,443 | 5,043 | | Payables for purchase of property, plant and equipment | 273 | 3,269 | | Total | 58,125 | 59,867 | - Trade payables increased by 60.1% year-on-year to HKD 8,019 thousand[33] - Amounts due to directors and payables for purchase of property, plant and equipment significantly decreased[33] Ageing Analysis of Trade Payables (HKD thousands) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 0 to 30 days | 3,810 | 4,222 | | 31 to 60 days | 3,621 | 255 | | 61 to 90 days | 71 | 62 | | 91 to 365 days | 259 | 175 | | Over 365 days | 258 | 295 | | Total | 8,019 | 5,009 | Capital Commitments As of June 30, 2025, the Group's contracted but unprovided capital expenditure for property, plant, and equipment was HKD 840 thousand, a significant 89.2% decrease from HKD 7,812 thousand on December 31, 2024 Capital Commitments (HKD thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Contracted capital expenditure for property, plant and equipment | 840 | 7,812 | - Capital commitments significantly decreased by 89.2%, reflecting a reduction in future capital expenditure plans[35] Management Discussion and Analysis This section provides management's detailed discussion of the Group's business and financial performance for the six months ended June 30, 2025, covering an overview of results, segment performance, outlook, liquidity, financial resource management, capital commitments, foreign exchange risk, pledged assets, significant transactions, and updates on employees and directors Business and Financial Review This section reviews the Group's overall business performance for the six months ended June 30, 2025, with significant growth in both total revenue and profit for the period. It details revenue contributions and profitability of each business segment and introduces Adjusted EBITDA as a key operating metric Overview of Results For the six months ended June 30, 2025, the Group's total revenue increased by 19.4% to HKD 507.9 million, and profit for the period surged by 48.9% to HKD 177.8 million, primarily driven by increased revenue from Macau casino management services and electronic entertainment equipment sales - Total revenue increased by 19.4% year-on-year to HKD 507.9 million[36] - Profit for the period increased by 48.9% year-on-year to HKD 177.8 million[37] Reported Revenue Analysis (HKD millions) | Revenue Source | 2025 | 2024 | | :--- | :--- | :--- | | Casino Golden Dragon | 382.6 | 356.5 | | Sales/leasing of electronic entertainment equipment and systems in Macau | 125.0 | 68.2 | | Overseas sales/leasing of electronic entertainment equipment and systems | 0.3 | — | | Innovative and renewable energy solutions business in Mainland China | — | 0.6 | | Total Reported Revenue | 507.9 | 425.3 | Adjusted EBITDA For the six months ended June 30, 2025, Adjusted EBITDA was HKD 211.8 million, a 43.4% year-on-year increase, primarily due to strong performance in Macau casino management services and electronic entertainment equipment and systems segments. Adjusted EBITDA is a non-HKFRS measure used to assess operating performance - Adjusted EBITDA increased by 43.4% year-on-year to HKD 211.8 million[38] - Adjusted EBITDA is a non-HKFRS measure used to assess operating performance[38][39] Reconciliation of Profit for the Period to Adjusted EBITDA (HKD millions) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the period | 177.8 | 119.4 | | Interest income | (4.3) | (1.4) | | Finance costs | 3.8 | 6.1 | | Taxation | 6.2 | 1.6 | | Depreciation of property, plant and equipment | 15.4 | 14.1 | | Depreciation of right-of-use assets | 7.6 | 8.0 | | Amortization of intangible assets | 6.1 | 6.1 | | Gain on disposal/deregistration of subsidiaries | (1.0) | (6.2) | | Loss on disposal/write-off of property, plant and equipment | 0.7 | — | | Reversal of impairment loss on amount due from a joint venture | (0.4) | — | | Others | (0.1) | — | | Adjusted EBITDA | 211.8 | 147.7 | Adjusted EBITDA by Nature (HKD millions) | Business Segment | 2025 | 2024 | | :--- | :--- | :--- | | Casino Golden Dragon | 170.5 | 143.8 | | Electronic entertainment equipment and systems | 48.8 | 11.2 | | Other businesses | 1.3 | 0.2 | | Corporate and other expenses | (8.8) | (7.5) | | Adjusted EBITDA | 211.8 | 147.7 | - Casino Golden Dragon's Adjusted EBITDA increased by 18.6% to HKD 170.5 million, primarily due to increased customer traffic and higher gaming revenue from Live Multi-Game terminals[42] - Adjusted EBITDA for electronic entertainment equipment and systems surged by 335.7% to HKD 48.8 million, mainly due to increased sales revenue in Macau and higher upgrade service income[43] Provision of Casino Management Services in Macau For the six months ended June 30, 2025, Casino Golden Dragon's gross gaming revenue increased by 7.2% year-on-year to HKD 698.9 million, driven by the rising popularity of Live Multi-Game terminals and increased customer traffic. The Group's share of total revenue grew by 7.3% to HKD 382.6 million Casino Golden Dragon Operating Data (Average) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Traditional gaming tables | 20 | 20 | | Live Multi-Game (LMG) tables | 10 | 10 | | Live Multi-Game (LMG) terminals | 973 | 956 | | Slot machines and electronic table games | 95 | 95 | Casino Golden Dragon Key Operating Data (HKD millions/HKD thousands/HKD) | Item | Unit | 2025 | 2024 | | :--- | :--- | :--- | :--- | | Gaming revenue from traditional gaming tables | HKD millions | 235.2 | 240.4 | | Gaming revenue from Live Multi-Game (LMG) | HKD millions | 439.7 | 385.6 | | Gaming revenue from slot machines and electronic table games | HKD millions | 24.0 | 25.7 | | Gross Gaming Revenue | HKD millions | 698.9 | 651.7 | | LMG gaming revenue/per terminal/per day | HKD | 2,497 | 2,216 | | Gaming revenue/per table/per day (total) | HKD thousands | 124.3 | 114.7 | - Casino Golden Dragon's gross gaming revenue increased by 7.2% year-on-year to HKD 698.9 million[46] - The Group's share of Casino Golden Dragon's total revenue increased by 7.3% year-on-year to HKD 382.6 million[47] Development, Sales and Leasing of Electronic Entertainment Equipment and Systems and Royalty Income For the six months ended June 30, 2025, Macau electronic entertainment equipment and systems sales/leasing revenue surged by 83.3% year-on-year to HKD 125.0 million, driven by increased demand for Live Multi-Game terminals and higher upgrade service income. Overseas markets also began contributing revenue - Macau electronic entertainment equipment and systems sales/leasing revenue increased by 83.3% year-on-year to HKD 125.0 million[48] - Revenue growth was primarily driven by sales of gaming machines (HKD 77.0 million), other entertainment equipment and systems (HKD 25.1 million), and upgrade services for Live Multi-Game terminals (HKD 21.6 million)[50] - Overseas markets (Asia and North America) began contributing HKD 300 thousand in revenue, as the Group actively expands into these markets[49][51] - No royalty income from licensees was recognized during the period[52] Innovative and Renewable Energy Solutions Business in Mainland China The Group has strategically decided to exit the innovative and renewable energy solutions business in Mainland China, disposing of its entire equity interest in the relevant subsidiaries during the period and recognizing a gain on disposal of HKD 1.0 million. This move aims to allow the Group to focus on its core gaming business - The Group has decided to cease its innovative and renewable energy solutions business in Mainland China[53] - The entire equity interest in the relevant subsidiaries was disposed of, recognizing a gain on disposal of HKD 1.0 million[53] - This strategic move aims to allow the Group to focus on its core gaming business and optimize resources[53] Outlook The Group will continue to focus on the casino mass market, enhancing competitiveness through investment in innovative technology and advanced electronic entertainment equipment. Macau's tourism recovery, relaxed individual visit scheme visas, and improved transportation will stimulate visitor demand. Despite the non-renewal of the Casino Golden Dragon management services agreement, the Group will actively explore new opportunities in Macau and international markets, leveraging AI to accelerate game development - The Group will focus on the casino mass market through strategic investments in innovative technology and the development of advanced electronic entertainment equipment[54] - Macau's tourism recovery, relaxed individual visit scheme visas, and improved transportation (e.g., Light Rail extension to Hengqin Port) will stimulate visitor demand[54] - Live Multi-Game terminals are increasingly important in Macau's gaming industry, with their share of gaming revenue rising to 2.1% in H1 2025, a 22.5% year-on-year increase[55][56] - The Group will expand its game product line, launching new games like 'Super Bull' and 'Dragon Tiger Fight', and leverage AI to accelerate game design and development[57] - A new production line in Macau commenced operations on April 15, 2025, focusing on entertainment equipment manufacturing, with exports already reaching international markets[58] - The Group will actively expand into emerging gaming markets outside Macau, such as the Philippines, Sri Lanka, and Malaysia[59] - The Casino Golden Dragon management services agreement will not be renewed after its expiry on December 31, 2025, which is expected to significantly reduce the Group's revenue and profit attributable to shareholders[60] - The Group will continue to explore new opportunities in Macau and international markets, strengthening strategic partnerships and expanding its business footprint[61] Liquidity and Financial Resources The Group maintains a prudent financial management approach and a robust liquidity position. As of June 30, 2025, consolidated net assets increased by 9.3% to HKD 590.5 million, primarily due to profit for the period. The gearing ratio decreased to 21.4%, reflecting improved financial leverage Pledged Bank Deposits and Bank Balances and Cash As of June 30, 2025, the Group held pledged bank deposits of HKD 49.8 million and bank balances and cash of HKD 417.8 million, both increasing from December 31, 2024. Bank balances are primarily denominated in HKD, MOP, and USD, with normal exchange rate risk Bank Deposits and Cash (HKD millions) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Pledged bank deposits | 49.8 | 48.1 | | Bank balances and cash | 417.8 | 389.2 | - Bank balances and cash are primarily denominated in HKD, MOP, and USD, with normal exchange rate risk[65] Shareholder Loans As of June 30, 2025, the outstanding principal of the three-year term loan from Dr. Chan was HKD 14.2 million, a significant decrease from HKD 25.6 million on December 31, 2024, bearing interest at an annual rate of 12.5% - The outstanding principal of the shareholder loan from Dr. Chan was HKD 14.2 million, a 44.5% year-on-year decrease[66] - The loan is unsecured, bears interest at an annual rate of 12.5%, and is repayable in monthly installments[66] Borrowings and Gearing Ratio As of June 30, 2025, the Group's total outstanding debt was HKD 126.1 million, a 19.6% decrease from December 31, 2024. The gearing ratio decreased to 21.4%, primarily due to reduced total borrowings and increased net assets Total Outstanding Debt (HKD millions) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Secured and unsecured bank borrowings | 110.2 | 115.6 | | Unsecured and unguaranteed shareholder loans | 14.2 | 25.6 | | Unsecured and unguaranteed other borrowings | 0.2 | 10.5 | | Unsecured and unguaranteed amounts due to directors | 1.5 | 5.0 | | Total | 126.1 | 156.7 | - Total outstanding debt decreased by 19.6% year-on-year to HKD 126.1 million[67] - The gearing ratio decreased to 21.4% (December 31, 2024: 29.0%), primarily due to reduced total borrowings and increased net assets[68] - The reduction in total borrowings was mainly due to the transfer of other borrowings following the disposal of the innovative and renewable energy business subsidiary, and the repayment of bank and shareholder loans[68] Capital Commitments As of June 30, 2025, the Group's contracted but unprovided capital commitments for property, plant, and equipment were HKD 800 thousand, a significant decrease from December 31, 2024. These commitments will be financed by the Group's internal resources Capital Commitments (HKD thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Contracted capital expenditure for property, plant and equipment | 800 | 7,800 | - Capital commitments significantly decreased and will be financed by internal resources[71] Foreign Exchange Risk Most of the Group's income, expenses, deposits, and borrowings are denominated in HKD, MOP, and USD. Due to the stable exchange rates of these currencies, the Group deems no specific hedging necessary. The Group faces net foreign exchange risk from RMB and manages it by closely monitoring exchange rate fluctuations - Most of the Group's operations are denominated in HKD, MOP, and USD, with normal exchange rate risk, requiring no specific hedging[72] - The Group faces net foreign exchange risk from RMB, which is managed by closely monitoring exchange rate fluctuations[72] Pledged Assets of the Group As of June 30, 2025, the Group's pledged assets included leasehold land and buildings with a total carrying amount of HKD 181.4 million, and bank time deposits of HKD 49.8 million, primarily used as collateral for bank borrowings and guarantees for SJM Resorts Pledged Assets (HKD millions) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Leasehold land and buildings (total carrying amount) | 181.4 | 185.1 | | Bank time deposits | 49.8 | 48.1 | - Pledged assets are primarily used as collateral for bank borrowings and guarantees for SJM Resorts[75] Significant Acquisitions, Disposals and Material Investments Except for the disposal of the innovative and renewable energy solutions business disclosed in this interim results announcement, the Group made no other significant acquisitions, disposals, or material investments for the six months ended June 30, 2025 - Aside from the disposal of the innovative and renewable energy solutions business, there were no other significant acquisitions, disposals, or investments during the period[74] Future Plans for Material Investments or Capital Assets As of the date of this interim results announcement, the Group has no other future plans for material investments or capital assets, apart from the disclosed capital commitments - Apart from the disclosed capital commitments, the Group has no other future plans for material investments or capital assets[76] Employees and Remuneration Policy As of June 30, 2025, the Group had approximately 760 employees, with total staff costs of HKD 132.1 million, a 14.6% year-on-year increase. The Group's remuneration policy is based on employee qualifications, capabilities, performance, and market trends, offering discretionary bonuses and other benefits - The Group has approximately 760 employees, with about 400 engaged in gaming operations at Casino Golden Dragon[77] - Total staff costs amounted to HKD 132.1 million, a 14.6% year-on-year increase[77] - The remuneration policy is based on qualifications, capabilities, performance, market trends, and operating results, offering discretionary bonuses, share options, and retirement benefits[77] Issue of Equity Securities for Cash For the six months ended June 30, 2025, the Company did not issue any equity securities for cash or dispose of any treasury shares - No equity securities were issued or treasury shares disposed of for cash during the period[78] Purchase, Sale or Redemption of the Company's Shares For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, redeemed, or cancelled any of the Company's listed securities - No listed securities of the Company were purchased, sold, redeemed, or cancelled during the period[79] Update on Directors' Information Executive Director Mr. Shan Shiyong's monthly salary was revised to HKD 500,000 effective January 1, 2025. Mr. Zhang Jianjun resigned as Executive Director and Co-Chairman on March 27, 2025, and Dr. Chan was re-designated as Chairman of the Board - Executive Director Mr. Shan Shiyong's monthly salary was revised to HKD 500,000 effective January 1, 2025[81] - Mr. Zhang Jianjun resigned as Executive Director and Co-Chairman on March 27, 2025[81] - Dr. Chan was re-designated from Co-Chairman to Chairman of the Board[81] Corporate Governance and Other Information This section outlines the Company's corporate governance practices during the reporting period, including compliance with the Corporate Governance Code and Model Code, as well as the review process for the interim report and post-reporting period events Compliance with the Corporate Governance Code The Company has complied with the Corporate Governance Code throughout the period, except for Code Provision C.2.1 (separation of roles of chairman and chief executive). Dr. Chan serves as both Chairman and Managing Director, a structure the Board believes is in the best interests of shareholders and will be reviewed in due course - The Company complied with the Corporate Governance Code, except for Code Provision C.2.1 (separation of roles of chairman and chief executive)[83] - Dr. Chan serves as both Chairman and Managing Director, a structure the Board believes provides strong and consistent leadership[84] - The Board will review the current structure in due course[84] Compliance with the Model Code Following inquiries with all Directors, each has confirmed compliance with the Model Code as set out in Appendix C3 of the Listing Rules for the six months ended June 30, 2025 - All Directors have confirmed compliance with the Model Code for the six months ended June 30, 2025[85] Review of the 2025 Interim Report and Unaudited Condensed Consolidated Financial Statements for the Six Months Ended June 30, 2025 The 2025 Interim Report and unaudited condensed consolidated financial statements have been reviewed by the Board's Audit Committee and by Deloitte Touche Tohmatsu, the independent auditor, in accordance with Hong Kong Standard on Review Engagements 2410 - The interim report and financial statements have been reviewed by the Audit Committee[86] - Deloitte Touche Tohmatsu, the independent auditor, has reviewed the financial statements[86] Events After the Reporting Period Except for those disclosed elsewhere in this interim results announcement, no significant events occurred after June 30, 2025, up to the date of this interim results announcement that require disclosure - No other significant events after the reporting period require disclosure[87] Definitions This section provides definitions for key terms and abbreviations used in the report, ensuring readers have a clear understanding of the content - Definitions are provided for key terms such as 'Adjusted EBITDA', 'Corporate Governance Code', and 'Live Multi-Game terminals'[88][90] Board of Directors Information This section lists the Company's Executive Directors and Independent Non-executive Directors as of the announcement date, including Dr. Chan Chip, Chairman and Managing Director - Lists the Company's Executive Directors as Dr. Chan Chip (Chairman and Managing Director) and Mr. Shan Shiyong[89] - Lists the Company's Independent Non-executive Directors as Mr. Li Chung Yeung, Ms. Tang Kiu Sum, and Dr. Liu Ka Ying[89]