兴业控股(00132) - 2025 - 中期业绩

Unaudited Consolidated Results This section presents the unaudited consolidated financial performance and position of the group for the period Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income The group's revenue from continuing operations increased by 1.69%, and gross profit grew by 10.58%, but profit attributable to owners significantly decreased by 92.38% due to one-off gains in the prior period | Indicator | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 417,990 | 411,025 | +1.69% | | Cost of sales and services | (220,306) | (232,254) | -5.15% | | Gross profit | 197,684 | 178,771 | +10.58% | | Profit before tax | 74,213 | 85,046 | -12.74% | | Profit for the period from continuing operations | 44,866 | 65,768 | -31.79% | | Profit from discontinued operations | – | 41,365 | -100% | | Profit for the period | 44,866 | 107,133 | -58.12% | | Profit attributable to owners of the company | 4,788 | 62,942 | -92.38% | | Total comprehensive income for the period | 112,328 | 44,262 | +153.78% | | Basic earnings per share (continuing and discontinued operations) | 0.28 HK cents | 3.68 HK cents | -92.39% | | Basic earnings per share (continuing operations) | 0.28 HK cents | 1.21 HK cents | -76.86% | - The period's net profit decline was primarily due to a high base effect from a one-off gain on the disposal of subsidiary Guangdong Zhongyan Taike Construction Co., Ltd. in the prior period, and a decrease of approximately HK$21,019,000 in profit contribution from associate Nanhai Changhai Power Generation Co., Ltd[45] Condensed Consolidated Statement of Financial Position As of June 30, 2025, the group's total assets and liabilities increased, leading to a slight rise in the gearing ratio, while net current assets and current ratio significantly decreased | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 5,315,424 | 4,978,583 | +6.77% | | Current assets | 2,506,993 | 2,505,827 | +0.05% | | Current liabilities | 2,367,274 | 1,763,918 | +34.21% | | Net current assets | 139,719 | 741,909 | -81.18% | | Total assets less current liabilities | 5,455,143 | 5,720,492 | -4.57% | | Total equity | 1,898,862 | 1,837,245 | +3.35% | | Non-current liabilities | 3,556,281 | 3,883,247 | -8.42% | | Total assets | 7,822,417 | 7,484,410 | +4.51% | | Total liabilities | 5,923,555 | 5,647,165 | +4.89% | | Gearing ratio | 75.73% | 75.45% | +0.28pp | | Current ratio | 1.06x | 1.42x | -0.36x | | Cash and bank balances | 570,919 | 717,173 | -20.39% | - The group has secured sufficient bank credit facilities and extended the maturity date of convertible notes with a principal amount of approximately HK$166,232,000 for three years to October 13, 2027, to maintain current and future liquidity[54] Notes to the Condensed Financial Statements This section provides detailed notes on the accounting policies, standards application, and specific financial statement items for the interim period Basis of Preparation of Financial Statements The interim condensed consolidated financial statements are prepared based on historical cost, in accordance with HKAS 34 and Listing Rules, and have been reviewed by the audit committee - The financial statements are prepared on a historical cost basis, except for certain properties and financial instruments measured at fair value, revalued amounts, or amortized cost[8] - These interim condensed consolidated financial statements should be read in conjunction with the group's annual financial statements for the year ended December 31, 2024[8] Application of New and Revised Hong Kong Financial Reporting Standards The accounting policies adopted are consistent with the prior year, with no significant impact from HKAS 21 (Revised) and no early adoption of other new standards - The adoption of HKAS 21 (Revised) 'Lack of Exchangeability' has no significant impact on the group's financial performance or position for the current or prior accounting periods[10] - The group has not early adopted any new and revised Hong Kong Financial Reporting Standards that have been issued but are not yet effective[11] Revenue The group's total revenue increased by 1.69%, primarily driven by growth in elderly care and healthcare and finance lease consulting services, while big data and civil explosives blasting engineering revenue declined | Revenue Category | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Big data business platform construction and operation income | 744 | 2,878 | -74.15% | | Finance lease consulting service income | 52,731 | 39,599 | +33.17% | | Civil explosives business blasting engineering income | 16,058 | 24,515 | -34.50% | | Elderly care and healthcare business operation income | 52,212 | 46,521 | +12.23% | | Sales of emulsion explosives | 87,828 | 85,521 | +2.70% | | Elderly care and healthcare business service income | 57,189 | 50,376 | +13.53% | | Big data business technical service income | 861 | 204 | +322.06% | | Hotel rental income | 4,541 | 4,713 | -3.65% | | Investment property rental income | 5,761 | 3,633 | +58.57% | | Interest income from finance leases | 140,065 | 149,484 | -6.29% | | Total Revenue | 417,990 | 411,025 | +1.69% | - Revenue sources include elderly care and healthcare business, big data business, finance lease business, civil explosives business, and hotel and property investment income[12] Segment Information The group operates five segments: elderly care and healthcare, big data, finance lease, civil explosives, and hotel and property investment, with finance lease being the largest contributor to revenue and profit - The group is currently divided into five operating business segments: elderly care and healthcare business, big data business, finance lease business, civil explosives business, and hotel and property investment[15] - Effective 2025, property investment and hotel businesses are combined into a single segment, and comparative segment information has been reclassified[16] Segment Revenue and Results | Segment | 2025 Revenue (HK$ thousand) | 2024 Revenue (HK$ thousand) | Revenue Change (%) | 2025 Results (HK$ thousand) | 2024 Results (HK$ thousand) | Results Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Elderly care and healthcare business | 109,401 | 96,897 | +12.90% | 3,386 | 7,677 | -55.89% | | Big data business | 1,605 | 3,082 | -47.92% | (3,283) | (5,297) | +38.02% | | Finance lease business | 192,796 | 189,083 | +1.96% | 93,726 | 87,609 | +6.98% | | Civil explosives business | 103,886 | 111,720 | -7.01% | 26,570 | 21,992 | +20.82% | | Hotel and property investment | 10,302 | 10,243 | +0.58% | 665 | (582) | Turned profitable | | Total | 417,990 | 411,025 | +1.69% | 121,064 | 111,399 | +8.68% | Segment Assets and Liabilities | Segment Assets/Liabilities | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total segment assets | 6,633,003 | 6,164,195 | +7.60% | | Total segment liabilities | 4,882,641 | 4,739,314 | +3.02% | - Most of the group's businesses (elderly care and healthcare, big data, finance lease, civil explosives, and hotel and property investment) are located in mainland China, while property investment is in mainland China and Hong Kong[21][22][23] Other Operating Income Other operating income for the period, primarily from bank interest, government grants, and financial asset dividends, decreased compared to the prior period | Item | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Bank interest income | 2,573 | 6,851 | -62.44% | | Government direct grants | 261 | 1,402 | -81.38% | | Recognized in deferred income | 241 | – | N/A | | Dividend income from financial assets at fair value through profit or loss | 608 | 618 | -1.62% | | Interest income from wealth management products | – | 126 | -100% | | Income from lending emulsion matrix and industrial detonating cord production capacity | – | 2,322 | -100% | Finance Costs Total finance costs decreased by 7.23% year-on-year, mainly due to lower interest expenses on bank loans and convertible notes, despite a significant increase in other loan interest | Item | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Handling fees | – | 2,081 | -100% | | Bank loan interest | 12,919 | 25,232 | -48.79% | | Convertible note interest | 5,895 | 8,291 | -28.89% | | Lease liabilities interest | 786 | 120 | +555.00% | | Loans from direct holding company interest | 1,136 | 2,293 | -50.46% | | Other loan interest | 15,673 | 36 | +43436.11% | | Total Finance Costs | 36,409 | 39,240 | -7.23% | Income Tax Expense Income tax expense increased by 52.23% year-on-year, primarily due to higher provisions for PRC corporate income tax, with no Hong Kong profits tax provision | Item | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Provision for PRC corporate income tax | 31,076 | 20,713 | +50.03% | | Over-provision in prior years | (844) | (1,559) | +45.86% | | Temporary differences for the period | (885) | 124 | -813.71% | | Total Income Tax Expense | 29,347 | 19,278 | +52.23% | - PRC subsidiaries are subject to corporate income tax at a rate of 25%, while Hong Kong profits tax is 16.5% (or 8.25% for the first HK$2,000,000), with no assessable profits in Hong Kong for the period[27][28] Profit from Discontinued Operations The group completed the disposal of 72% equity in Guangdong Zhongyan Taike Construction Co., Ltd. on March 1, 2024, resulting in a profit from discontinued operations of HK$41,365,000 in the prior period - The group completed the disposal of 72% equity in Guangdong Zhongyan Taike Construction Co., Ltd. on March 1, 2024, discontinuing its industrial park and property development business[29][30] Profit from Discontinued Operations | Item | Six Months Ended June 30, 2024 (HK$ thousand) | | :--- | :--- | | Loss from industrial park and property development business | (7,663) | | Profit on disposal of a subsidiary | 49,028 | | Profit for the period from discontinued operations | 41,365 | Profit for the Period Has Been Arrived at After Charging/(Crediting) Profit for the period was impacted by increased depreciation of property, plant and equipment, higher amortization of intangible assets, and rising staff costs, partially offset by reduced impairment provisions for finance lease receivables | Item | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Auditor's remuneration (audit services) | (650) | (600) | +8.33% | | Amortization of intangible assets | (456) | (375) | +21.60% | | Depreciation of property, plant and equipment | (18,234) | (15,921) | +14.53% | | Net exchange loss | (5,940) | (4,915) | +20.85% | | Provision for expected credit losses on finance lease receivables | (5,660) | (6,492) | -12.82% | | Cost of inventories recognized as expense | (102,497) | (114,458) | -10.45% | | Total staff costs | (91,296) | (88,978) | +2.60% | | Total rental income from investment properties | 10,302 | 8,346 | +23.44% | Dividends The Board resolved not to declare an interim dividend for the six months ended June 30, 2025, but a final dividend of HK0.58 cents per share was paid in July 2025 - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025 (2024: nil)[33][64] - At the Annual General Meeting held on June 26, 2025, a final dividend of HK0.58 cents per share, totaling approximately HK$9,932,000, was approved and paid on July 31, 2025[33] Earnings Per Share Basic earnings per share for the six months ended June 30, 2025, significantly decreased to HK0.28 cents from HK3.68 cents in the prior period, with no diluted EPS presented due to anti-dilutive effects | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Basic earnings per share (continuing and discontinued operations) | 0.28 HK cents | 3.68 HK cents | | Basic earnings per share (continuing operations) | 0.28 HK cents | 1.21 HK cents | - Basic earnings per share is calculated based on profit attributable to owners of the company of approximately HK$4,788,000 (2024: HK$62,942,000) and 1,712,329,142 ordinary shares in issue[34] - Diluted earnings per share is not presented for the current and prior periods due to the anti-dilutive effect of the exercise of convertible notes[34] Finance Lease Receivables As of June 30, 2025, the group's total finance lease receivables increased by 8.67%, with both current and non-current portions showing growth | Classification | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Current | 1,362,142 | 1,254,955 | +8.54% | | Non-current | 3,588,796 | 3,301,054 | +8.72% | | Total | 4,950,938 | 4,556,009 | +8.67% | Trade and Other Receivables Total trade and other receivables increased by 31.52% as of June 30, 2025, with trade receivables growing by 25.68%, and the group grants an average credit period of 90 days to customers | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade receivables | 107,020 | 85,148 | +25.68% | | Other receivables, deposits and prepayments | 76,619 | 54,488 | +40.62% | | Total | 183,639 | 139,636 | +31.52% | - The group grants an average credit period of 90 days to its customers[36] Trade and Other Payables Total trade and other payables decreased by 7.71% year-on-year, mainly due to a reduction in other payables, with supplier credit terms ranging from 30 to 90 days | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade payables | 18,730 | 18,478 | +1.36% | | Other payables | 180,286 | 197,160 | -8.56% | | Total | 199,016 | 215,638 | -7.71% | - The credit period granted by suppliers to the group ranges from 30 to 90 days[37] Deferred Income Deferred income primarily represents government grants received by the group's PRC subsidiaries for construction and revenue-generating projects - Deferred income refers to government grants received by subsidiaries established in mainland China related to certain construction and revenue-generating projects[39] Commitments Green Finance Leasing, a non-wholly owned subsidiary, entered into new finance lease agreements totaling approximately RMB430,000,000 (approximately HK$470,000,000) with several PRC limited liability companies in July-August 2025 - Green Finance Leasing entered into multiple finance lease agreements with several PRC limited liability companies between July and August 2025, with a total consideration of approximately RMB430,000,000 (equivalent to approximately HK$470,000,000)[40][41][42] Comparative Figures Certain comparative figures have been restated to conform to the current period's presentation - Certain comparative figures have been restated to conform to the current period's presentation[43] Business Review This section provides an overview of the group's operational performance across its various business segments during the reporting period Overall Performance Despite a complex macroeconomic environment, the group achieved a 1.69% increase in total revenue and an 8.68% rise in operating profit from continuing operations, though net profit declined due to prior period one-off gains - The group's total revenue was approximately HK$417,990,000, representing a year-on-year increase of 1.69%[44] - Revenue growth was primarily driven by the elderly care and healthcare business (contributing an increase of approximately HK$12,504,000) and the finance lease business (contributing an increase of approximately HK$3,713,000), partially offsetting the decline in civil explosives business revenue[44] - Operating profit from continuing operations across all segments collectively increased to approximately HK$121,064,000, an increase of approximately 8.68%[44] - Net profit for the period declined year-on-year to approximately HK$44,866,000, mainly due to the one-off gain from the disposal of a subsidiary and reduced profit contribution from an associate in the prior period[45] Elderly Care and Healthcare Business The elderly care and healthcare business, a strategic core, expanded its medical and elderly care bed capacity, achieving a 12.90% revenue growth, despite a temporary profit decline due to strategic upfront investments - The group was included as a service provider under the 'Guangdong Residential Care Services Scheme' by the Hong Kong Social Welfare Department on February 20, 2025[46] Elderly Care and Healthcare Business Indicators | Indicator | June 30, 2025 | | :--- | :--- | | Total medical and elderly care beds | 4,390 beds | | Medical care beds | 455 beds | | Medical care bed utilization rate | 85.93% | | Elderly care beds | 3,435 beds (year-on-year increase of 727 beds, +26.85%) | | Elderly care bed occupancy rate | 69.98% | | Elderly care beds under construction | 500 beds | - Operating revenue from the elderly care and healthcare business was approximately HK$109,401,000, a year-on-year increase of 12.90%[47] - Operating profit was approximately HK$3,386,000, a year-on-year decrease of 55.89%, primarily due to increased strategic upfront investments in elderly care infrastructure and business expansion[47] Finance Lease Business The finance lease business, focusing on environmental protection, achieved a 6.98% increase in operating profit and successfully issued the "First Green SME Support Corporate Bond" despite a challenging macroeconomic environment - The company focuses on niche segments within environmental protection and municipal environmental industries, maintaining net profit growth despite a downturn in the macroeconomic environment[48] - Successfully issued the 'First Green SME Support Corporate Bond in China' in mid-August 2025[48] - Operating profit increased by approximately HK$6,117,000 to approximately HK$93,726,000, a 6.98% increase[48] Technology Business The technology business saw a 47.92% decline in operating revenue due to the mainland's traditional manufacturing sector, but managed to narrow its operating loss by 38.02% through strict cost control and is now shifting towards "technology-enabled medical and elderly care" and digital education - Operating revenue was approximately HK$1,605,000, a year-on-year decrease of 47.92%, primarily affected by the unfavorable economic conditions in mainland China's traditional manufacturing sector[49] - Operating loss was approximately HK$3,283,000, a year-on-year decrease of 38.02%, attributed to strict cost control[49] - The company has clarified its strategic direction, focusing on 'technology-enabled medical and elderly care' to deeply integrate information technology with medical and elderly care services, and is exploring the digital education sector, having signed an education big data project[49] Civil Explosives Business The civil explosives business experienced a 7.01% decline in operating revenue due to reduced market demand, yet achieved a 20.82% increase in operating profit through technical improvements, lean management, and cost control - Operating revenue was approximately HK$103,886,000, a year-on-year decrease of 7.01%, affected by declining demand in the civil explosives market[50] - Operating profit was approximately HK$26,570,000, a year-on-year increase of 20.82%, attributed to effective operational management and cost control[50] - The company obtained a Class A blasting operation qualification in July 2025, proactively increased the proportion of mixed explosives production capacity, and actively sought strategic cooperation with industry leaders[50] Hotel and Property Investment Hotel rental income decreased by 31.30% due to market conditions, leading to a decline in operating profit, while total rental income from Zhongkong Building significantly increased by 58.57%, and Hong Kong property rental income remained stable - Hotel rental income decreased by approximately 31.30% year-on-year, with a corresponding reduction in rental income of approximately HK$2,069,000, and operating profit decreased by 39.77% to approximately HK$1,549,000[51] - Total rental income from Zhongkong Building significantly increased by 58.57% year-on-year to approximately HK$5,461,000, with occupancy rates and rental levels higher than comparable properties in the vicinity[51] - Rental income from Hong Kong properties remained at HK$300,000 for the period, consistent with the prior period[51] Share of Profits from an Associate Profit contribution from associate Nanhai Changhai Power Generation Co., Ltd. significantly decreased by 79.26% due to the shutdown of its production equipment, weakening its power supply capacity - Associate Nanhai Changhai Power Generation Co., Ltd. contributed approximately HK$5,501,000 in profit to the group, a decrease of approximately HK$21,019,000 from the prior period, representing a year-on-year decline of 79.26%[52] - The decline in profit was mainly due to the shutdown of two production units at the associate, significantly weakening its power supply capacity[52] Financial Position and Analysis This section analyzes the group's financial health, including key indicators, asset pledges, and exposure to foreign exchange risks Overall Financial Indicators As of June 30, 2025, total assets and liabilities increased, with the gearing ratio slightly rising to 75.73%, while net current assets and the current ratio significantly decreased, though liquidity is maintained through credit facilities and convertible bond extensions | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total assets | HK$7,822,417,000 | HK$7,484,410,000 | | Total liabilities | HK$5,923,555,000 | HK$5,647,165,000 | | Gearing ratio | 75.73% | 75.45% | | Net assets | HK$1,898,862,000 | HK$1,837,245,000 | | Equity attributable to owners per share | HK$0.66 | HK$0.63 | | Net current assets | HK$139,719,000 | HK$741,909,000 | | Current ratio | 1.06x | 1.42x | | Bank deposits and cash | HK$570,919,000 | HK$717,173,000 | - The group has secured sufficient bank credit facilities and extended the maturity date of convertible bonds with a principal amount of approximately HK$166,232,000 for three years to October 13, 2027, to maintain current and future liquidity[54] Pledge of Assets As of June 30, 2025, the group pledged self-use and investment properties, a 26.794% equity interest in an associate, and finance lease receivables, totaling approximately HK$4,702,664,000 in book value - As of June 30, 2025, the group pledged self-use and investment properties, a 26.794% equity interest in an associate, and finance lease receivables, with a total book value of approximately HK$4,702,664,000[55] - Of this, approximately HK$4,215,762,000 in finance lease receivables has been pledged to banks as collateral for the group's bank borrowings[55] Foreign Exchange Risk The group holds RMB-denominated monetary assets and liabilities, exposing it to exchange rate fluctuations, and has established monitoring mechanisms to mitigate this risk - The group holds certain RMB-denominated monetary assets and liabilities, which may expose it to exchange losses or gains due to RMB appreciation or depreciation[56] - The group has established a foreign exchange risk monitoring mechanism, and the Board will continue to closely monitor foreign exchange market dynamics and take effective measures to mitigate risks as appropriate[56] Outlook This section outlines the group's strategic vision, core strategies, and specific business segment outlooks in response to macroeconomic trends and market opportunities Macroeconomic Outlook Global economic instability persists, and the domestic economy faces challenges like insufficient demand and real estate adjustments, yet China's rapid aging population and policy support present significant opportunities for the silver economy - The 'unstable state' of the global economy is expected to continue, with the domestic economy facing challenges such as insufficient demand and real estate sector adjustments[57] - China's rapid population aging is a definitive macroeconomic trend, with unprecedented national policy support, creating immense market opportunities for the silver economy[57] Strategic Direction and Core Strategies The group is committed to becoming a leading technology-enabled elderly care service provider in the GBA, optimizing its "1+X" industrial structure with elderly care as the core, expanding through M&A and self-investment, and strengthening the resilience and risk control of supporting businesses - The group will adhere to its established strategic direction, striving to become a leading technology-enabled elderly care service provider in the Guangdong-Hong Kong-Macao Greater Bay Area[58] - Deepen the optimization of the '1+X' industrial structure, with elderly care and healthcare as the core business, adopting an expansion strategy that combines 'industrial mergers and acquisitions with self-investment development'[58] - Supporting businesses will enhance operational resilience and risk resistance by 'deeply exploring existing markets, precisely cultivating new growth points, and strengthening risk control'[58] - Strengthen lean operations and risk control systems, deepen cost reduction and efficiency improvement, and enhance cash flow management and compliant operations[58] Elderly Care and Healthcare Business Outlook As a core segment, the elderly care and healthcare business will shift from scale expansion to quality and efficiency, implementing a "medical-elderly care services" and "scientific innovation for health" dual-driven model, promoting standardization, and capitalizing on opportunities for Hong Kong residents seeking elderly care in the North - The development path will transition from scale expansion to quality improvement and efficiency optimization, achieving high-quality, sustainable growth[59] - Deeply implement the 'medical-elderly care services' and 'scientific innovation for health' dual-driven development model, building a new pattern of synergistic development[59] - Comprehensively advance standardization and brand building, reconstruct a tiered and precise elderly care service system, with a focus on establishing specialized service areas for incapacitated seniors and cognitive impairment care[59] - Seize the historic opportunity of 'Hong Kong residents seeking elderly care in the North,' deeply cultivate the Guangdong-Hong Kong-Macao Greater Bay Area market, and build a 'Hong Kong-style technology-enabled elderly care' service brand[59] Technology Business Outlook The technology business will focus on cultivating "medical and elderly care technology industrialization" in the short term and creating long-term value, developing data-driven, intelligent elderly care new formats, and actively exploring the digital education industry for new profit growth - The technology business will focus on cultivation in the short term and value creation in the long term, concentrating on the core track of 'medical and elderly care technology industrialization'[60] - Cultivate and expand new technology-enabled medical and elderly care business models characterized by data-driven and intelligent collaboration, building a digital elderly care ecosystem covering health management, emergency response, smart care, and intelligent learning[60] - Strategically invest in and acquire businesses in the scientific innovation for health sector, ensuring synergy with the core business, actively incubate emerging businesses, and deeply explore the digital education industry[60] Finance Lease Business Outlook The finance lease business will continue to be a stable profit contributor, maintaining differentiated competition by focusing on advantageous niche areas like water supply, sewage, and urban heating, while enhancing operational efficiency, expanding financing channels, and strengthening risk control - The finance lease business will adhere to differentiated competition, upholding the principles of 'market-oriented, specialized, and differentiated,' focusing on advantageous niche areas such as water supply, sewage, cogeneration, and urban heating[61] - Enhance operational efficiency, optimize approval processes, improve capital deployment efficiency, broaden financing channels, reduce funding costs, and perfect the risk control system to ensure asset quality[61] Civil Explosives Business Outlook The civil explosives business will proactively transform in line with policy guidance, optimize its product structure, pursue strategic collaborations with industry leaders, actively expand blasting operations, and continue to deepen cost reduction, efficiency improvement, and intelligent manufacturing upgrades - Align with policies, proactively transform, deeply optimize product structure, advance strategic cooperation with industry leaders, and ensure packaging capacity and sales[62] - Actively expand blasting operations, unleash mixed explosives production capacity, and continuously deepen cost reduction and efficiency improvement, 7S lean management, and intelligent transformation of production lines[62] Conclusion The group is at a critical juncture of strategic transformation, with rapid growth in its core business and stable operations in supporting segments, demonstrating increasing intrinsic value despite temporary net profit pressure from non-recurring factors - The group's core businesses are growing rapidly, supporting businesses are operating steadily, and the increase in core operating profit indicates a continuous enhancement of the group's intrinsic value[62] - The group has successfully anchored itself in the golden track of the silver economy, poised to continuously create returns for shareholders[62] - Management will continue to strengthen strategic execution, refined operational capabilities, and prudent risk management, driving the group towards high-quality sustainable growth[62] Other Information This section covers additional corporate information, including employee details, dividend policy, share transactions, corporate governance, and board composition Employees As of June 30, 2025, the group had approximately 1,280 employees, with remuneration determined by responsibilities and performance, and educational allowances provided - The group had approximately 1,280 employees (December 31, 2024: 1,232 employees)[63] - Employee remuneration is determined by responsibilities and performance, and educational allowances are provided to all employees[63] Interim Dividend The Board resolved not to declare an interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[64] Purchase, Sale or Redemption of the Company's Listed Securities Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the six months ended June 30, 2025 - During the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[65] Corporate Governance The company prioritizes corporate governance and has adopted and complied with all code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules - The company has adopted and complied with all code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules throughout the six months ended June 30, 2025[66] Model Code for Securities Transactions by Directors The company adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all directors confirmed compliance during the period - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules, and all directors have confirmed their compliance with the requirements of the Model Code throughout the six months ended June 30, 2025[67] Audit Committee The Audit Committee, comprising three independent non-executive directors, reviewed the group's accounting principles, audit, risk management, internal controls, and financial reporting matters, including the unaudited consolidated financial statements for the period - The Audit Committee, comprising three independent non-executive directors of the company, has reviewed the accounting principles and practices adopted by the group with management, and discussed matters related to audit, risk management, internal controls, and financial reporting[68] - The Audit Committee has generally reviewed the unaudited consolidated financial statements for the six months ended June 30, 2025[68] Board of Directors As of the announcement date, the Board of Directors consists of two executive directors (Mr. He Xiangming, Chairman; Mr. Fu Weiqiang, President) and three independent non-executive directors (Mr. Chan Kwok Wai, Mr. Peng Xinyu, and Ms. Lin Junxian) - The Board of Directors comprises two executive directors (Mr. He Xiangming as Chairman, Mr. Fu Weiqiang as President) and three independent non-executive directors (Mr. Chan Kwok Wai, Mr. Peng Xinyu, and Ms. Lin Junxian)[69]