梧桐国际(00613) - 2025 - 中期业绩

Company Information Company Overview Planetree International Development Limited (Stock Code: 613) is a company incorporated in Bermuda, and this report presents its unaudited interim results for the six months ended June 30, 2025 - Company Name: Planetree International Development Limited[2] - Stock Code: 613[2] - Place of Incorporation: Bermuda[2] - Reporting Period: Six months ended June 30, 2025 (unaudited)[3] Board of Directors As of the announcement date, the Board comprises executive, independent non-executive, and non-executive directors, with Dr. Chuang Yau Hong as Chairman and Mr. Cheung Ting Ki as Vice Chairman - Executive Directors include: Mr. Cheung Ting Ki (Vice Chairman), Ms. Cheung Ka Yee, Mr. Dai Bin, Mr. Lam Hiu Lo, Mr. Wong Kin Chun[78] - Independent Non-executive Directors include: Mr. Chan Sze Hung, Mr. Chung Kwok Pan, Mr. Ma Ka Ki, Mr. Cheung Sheung[78] - Non-executive Director: Dr. Chuang Yau Hong (Chairman)[78] Financial Performance Overview Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the Group achieved a profit before tax of HK$104,600 thousand, a significant improvement from a loss of HK$94,204 thousand in the prior period, with profit attributable to owners at HK$107,663 thousand Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Total Revenue | 45,297 | 53,446 | | Other Income and Gains | 79,717 | 184 | | Profit (Loss) Before Tax | 104,600 | (94,204) | | Profit (Loss) for the Period | 104,382 | (94,291) | | Total Comprehensive Income (Expense) for the Period | 139,485 | (161,545) | | Profit (Loss) for the Period Attributable to Owners of the Company | 107,663 | (91,050) | | Profit (Loss) for the Period Attributable to Non-controlling Interests | (3,281) | (3,241) | | Total Comprehensive Income (Expense) Attributable to Owners of the Company | 142,766 | (158,304) | | Total Comprehensive Income (Expense) Attributable to Non-controlling Interests | (3,281) | (3,241) | - Total revenue decreased by 15.2% year-on-year, from HK$53,446 thousand to HK$45,297 thousand[3] - Other income and gains significantly increased from HK$184 thousand to HK$79,717 thousand[3] Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets and net assets increased, with significant growth in investments in associates and financial assets at fair value through profit or loss within non-current assets, and continued growth in net current assets Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Total Non-current Assets | 976,136 | 859,150 | | Total Current Assets | 1,076,952 | 1,007,147 | | Total Current Liabilities | 284,237 | 258,856 | | Net Current Assets | 792,715 | 748,291 | | Total Assets Less Current Liabilities | 1,768,851 | 1,607,441 | | Total Non-current Liabilities | 6,443 | 10,568 | | Net Assets | 1,762,408 | 1,596,873 | | Equity Attributable to Owners of the Company | 1,493,019 | 1,320,477 | | Share Capital | 96,053 | 94,553 | - Investments in associates increased from HK$247,066 thousand to HK$318,250 thousand[5] - Financial assets at fair value through profit or loss (non-current) increased from HK$49,407 thousand to HK$104,682 thousand[5] - Bank balances and cash increased from HK$39,300 thousand to HK$100,130 thousand[5] Earnings (Loss) Per Share For the six months ended June 30, 2025, the company achieved a basic and diluted earnings per share of 11.39 HK cents, reversing a loss of 9.63 HK cents per share in the prior period Earnings (Loss) Per Share | Indicator | 2025 (HK cents) | 2024 (HK cents) | | :--- | :--- | :--- | | Basic Earnings (Loss) Per Share | 11.39 | (9.63) | | Diluted Earnings (Loss) Per Share | 11.39 | (9.63) | - Profit (loss) for the period attributable to owners of the company used in calculating basic and diluted earnings (loss) per share was HK$107,663 thousand (2024: loss of HK$91,050 thousand)[25] - Diluted earnings (loss) per share was the same as basic earnings (loss) per share due to the absence of potential dilutive ordinary shares outstanding[25] Interim Dividend The Board does not recommend paying an interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Board does not recommend paying an interim dividend for the six months ended June 30, 2025[23] - No interim dividend was paid for the six months ended June 30, 2024[23] Notes to the Financial Statements Basis of Preparation and Changes in Accounting Policies The Group's interim financial statements are prepared in accordance with HKAS 34 and Appendix D2 of the Listing Rules, adopting new/revised HKFRSs effective January 1, 2025, with no significant impact on performance or financial position - The interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of Appendix D2 to the Listing Rules of the Stock Exchange[8] - New/revised Hong Kong Financial Reporting Standards accounting standards, such as Hong Kong Accounting Standard 21 (Revised) "Lack of Exchangeability", have been adopted[9] - The adoption of new standards has no significant impact on the Group's current or prior period's results and financial position, nor will it lead to any significant changes in accounting policies[9] Segment Information The Group's operating segments include financial services, credit and lending, other financial services, property investment and leasing, and tactical and strategic investments, with tactical and strategic investments contributing significant profit and property investment incurring a large loss in H1 2025 - The Group's reportable operating segments include: financial services (licensed under the Securities and Futures Ordinance), credit and lending services (licensed under the Money Lenders Ordinance), other financial services, property investment and leasing, and tactical and strategic investments[11][14] Segment Revenue and Results (For the six months ended June 30, 2025) | Segment | Revenue (HK$ thousand) | Other Income and Gains (HK$ thousand) | Segment Revenue (HK$ thousand) | Segment Profit (Loss) (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Financial Services – Licensed under Securities and Futures Ordinance | 13,404 | 526 | 13,930 | 46,611 | | Credit and Lending Services – Licensed under Money Lenders Ordinance | 2,275 | – | 2,275 | 2,401 | | Other Financial Services | 6,262 | 46 | 6,308 | (506) | | Property Investment and Leasing | 5,481 | 1 | 5,482 | (67,755) | | Tactical and Strategic Investments | 17,875 | 79,103 | 96,978 | 140,447 | | Consolidated | 45,297 | 79,676 | 124,973 | 121,198 | Segment Revenue and Results (For the six months ended June 30, 2024) | Segment | Revenue (HK$ thousand) | Other Income and Gains (HK$ thousand) | Segment Revenue (HK$ thousand) | Segment Profit (Loss) (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Financial Services – Licensed under Securities and Futures Ordinance | 38,975 | 92 | 39,067 | 22,630 | | Credit and Lending Services – Licensed under Money Lenders Ordinance | 1,550 | 75 | 1,625 | 435 | | Other Financial Services | 7,219 | 10 | 7,229 | 1,967 | | Property Investment and Leasing | 5,702 | 1 | 5,703 | (11,572) | | Tactical and Strategic Investments | – | 1 | 1 | (88,152) | | Consolidated | 53,446 | 179 | 53,625 | (74,692) | Revenue and Other Income Details Total revenue decreased by 15.2% to HK$45,297 thousand, while other income and gains significantly rose to HK$79,717 thousand, primarily from fair value gains on financial assets at fair value through profit or loss Revenue Details (For the six months ended June 30) | Revenue Source | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Fees and Commission Income | 3,808 | 443 | | Financial Advisory Services Income | 3,642 | 1,794 | | Asset Management Services Income | – | 1,180 | | Corporate Advisory Services Income | 6,262 | 7,219 | | Interest Income from Margin Clients | 5,954 | 35,558 | | Interest Income from Loan Receivables | 2,275 | 1,550 | | Net Gain on Disposal of Financial Assets at Fair Value Through Profit or Loss | 17,875 | – | | Gross Rental Income | 5,481 | 5,702 | | Total Revenue | 45,297 | 53,446 | Other Income and Gains Details (For the six months ended June 30) | Other Income and Gains Source | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Bank Deposit Interest Income | 286 | 55 | | Clearing House Interest Income | 21 | 36 | | Net Fair Value Gain on Financial Assets at Fair Value Through Profit or Loss | 79,103 | – | | Others | 307 | 93 | | Total Other Income and Gains | 79,717 | 184 | - Interest income from margin clients significantly decreased from HK$35,558 thousand to HK$5,954 thousand, primarily due to a reduction in margin loan interest rates[17][46] Other Losses For the six months ended June 30, 2025, the Group recorded total other losses of HK$66,997 thousand, mainly driven by a net fair value loss on investment properties of HK$67,000 thousand, while the prior period's primary loss source was net fair value loss on financial assets at fair value through profit or loss Other Losses Details (For the six months ended June 30) | Loss Type | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Net Exchange (Gain) Loss | (3) | 1 | | Net Fair Value Loss on Financial Assets at Fair Value Through Profit or Loss | – | 39,937 | | Net Fair Value Loss on Investment Properties | 67,000 | 9,900 | | Total | 66,997 | 49,838 | - Net fair value loss on investment properties increased from HK$9,900 thousand to HK$67,000 thousand, constituting the main component of other losses for the period[18] Finance Costs For the six months ended June 30, 2025, the Group's finance costs decreased to HK$5,885 thousand from HK$8,175 thousand in the prior period, mainly due to reduced interest on interest-bearing loans and margin accounts Finance Costs Details (For the six months ended June 30) | Type of Finance Costs | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Interest on Interest-bearing Loans | 5,561 | 7,303 | | Interest on Margin Accounts | 76 | 525 | | Imputed Interest on Lease Liabilities | 248 | 347 | | Total | 5,885 | 8,175 | - Interest on interest-bearing loans decreased from HK$7,303 thousand to HK$5,561 thousand[19] - Interest on margin accounts decreased from HK$525 thousand to HK$76 thousand[19] Profit (Loss) Before Tax Profit (loss) before tax for the period is calculated after deducting employee benefit expenses and amortization of intangible assets, with employee benefit expenses slightly decreasing and intangible asset amortization remaining stable Profit (Loss) Before Tax Calculation Items (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Salaries and Other Benefits | 10,728 | 11,931 | | Retirement Benefit Scheme Contributions | 259 | 271 | | Total Employee Benefit Expenses | 10,987 | 12,202 | | Amortisation of Intangible Assets | 25 | 25 | - Employee benefit expenses (including directors' emoluments) decreased from HK$12,202 thousand to HK$10,987 thousand[20] Income Tax Expense The Group's income tax expense is calculated based on Hong Kong's two-tiered profits tax regime, with the first HK$2,000,000 of assessable profits taxed at 8.25% and the remainder at 16.5%, resulting in an expense of HK$218 thousand for the period, up from HK$87 thousand in the prior period - Hong Kong's two-tiered profits tax regime: the first HK$2,000,000 of assessable profits is taxed at 8.25%, and the remainder at 16.5%[21] Income Tax Expense (For the six months ended June 30) | Type of Tax | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Hong Kong Profits Tax | 218 | 87 | Trade and Loan Receivables and Other Receivables As of June 30, 2025, the Group's trade and loan receivables and other receivables increased to HK$938,827 thousand, driven by margin client and loan growth, while impairment provisions decreased Trade and Loan Receivables and Other Receivables (As of June 30) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade receivables arising from securities brokerage business (net of loss allowance) | 636,296 | 543,203 | | Trade receivables arising from corporate advisory, financial advisory and asset management services (net of loss allowance) | 7,738 | 9,450 | | Loan receivables and interest (net of loss allowance) | 232,782 | 181,313 | | Other receivables (net of loss allowance) | 62,011 | 169,278 | | Total | 938,827 | 903,244 | - Trade receivables from margin clients amounted to HK$549,743 thousand, with 26% of total outstanding margin loans from the largest margin client and 81% from the top five margin clients[27][29] - Loan receivables and interest increased from HK$181,313 thousand to HK$232,782 thousand, with the largest borrower and top five borrowers accounting for 22% and 67% of the total, respectively[28][35] - Impairment loss allowance for margin loan receivables significantly decreased from HK$36,905 thousand to HK$435 thousand[27] Trade and Other Payables As of June 30, 2025, the Group's total trade and other payables significantly increased to HK$59,681 thousand from HK$24,883 thousand on December 31, 2024, primarily due to a substantial rise in trade payables to cash and margin clients from securities brokerage business Trade and Other Payables (As of June 30) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade payables arising from securities brokerage business – cash clients | 37,167 | 4,676 | | Trade payables arising from securities brokerage business – margin clients | 13,813 | 607 | | Trade payables arising from options brokerage business | 209 | 209 | | Trade payables arising from futures contract trading business | 1,407 | 1,404 | | Secured margin loans for securities brokerage | – | 12,201 | | Other payables and accrued charges | 7,085 | 5,786 | | Rental deposits received | 1,616 | 2,896 | | Total Current Portion | 59,681 | 24,883 | - Trade payables to cash clients increased from HK$4,676 thousand to HK$37,167 thousand[36] - Trade payables to margin clients increased from HK$607 thousand to HK$13,813 thousand[36] Share Capital As of June 30, 2025, the company's issued and fully paid share capital increased to HK$96,053 thousand, primarily due to the issuance of 15,000,000 consideration shares for the acquisition of Warpdrive Technology Limited Share Capital Movement (As of June 30) | Item | Number of Shares | Share Capital (HK$ thousand) | | :--- | :--- | :--- | | January 1, 2024, December 31, 2024 and January 1, 2025 | 945,527,675 | 94,553 | | Issue of consideration shares for acquisition of subsidiary | 15,000,000 | 1,500 | | June 30, 2025 | 960,527,675 | 96,053 | - On June 26, 2025, the company issued 15,000,000 ordinary shares for the acquisition of Warpdrive Technology Limited, totaling HK$29,850,000[39] - The acquisition was completed in July 2025[39] Management Discussion and Analysis Overall Performance Review The Group achieved a turnaround to profit in H1 2025, recording a profit before tax of HK$104,600 thousand, driven by net fair value gains on financial assets at fair value through profit or loss, reversal of impairment loss on margin loan receivables, and share of profits from associates, despite negative impact from fair value loss on investment properties - Total revenue for the period was approximately HK$45,300 thousand, a 15.2% decrease from the previous period[41] - The Group recorded a consolidated profit before tax of approximately HK$104,600 thousand (2024: loss of approximately HK$94,200 thousand)[41] - Profit attributable to owners of the company was approximately HK$107,700 thousand (2024: loss of approximately HK$91,100 thousand)[41] - Profit primarily derived from: net fair value gain on financial assets at fair value through profit or loss of approximately HK$79,100 thousand; reversal of impairment loss on margin loan receivables of approximately HK$36,500 thousand; and share of profits from associates of approximately HK$44,400 thousand[44] - Net fair value loss on investment properties of approximately HK$67,000 thousand negatively impacted performance[44] Business Segment Review The Group's business segments showed varied performance in H1 2025: financial services saw profit growth despite revenue decline due to impairment reversal; credit and lending revenue and profit increased with loan growth; other financial services recorded a loss due to increased competition and costs; property investment and leasing's loss widened from fair value loss; and tactical and strategic investments achieved significant profit from associate profits and financial asset fair value gains Financial Services — Licensed under Securities and Futures Ordinance Segment revenue decreased by 64.5% to HK$13,900 thousand, mainly due to a drop in margin loan interest income from HK$35,600 thousand to HK$6,000 thousand, but segment profit increased from HK$22,600 thousand to HK$46,600 thousand due to reversal of impairment loss on margin loan receivables, and the company expanded its license scope by obtaining a Type 3 (leveraged foreign exchange trading) license - Interest income from margin loans decreased from approximately HK$35,600 thousand to approximately HK$6,000 thousand, primarily due to a reduction in margin loan interest rates from 8% to 2%[46] - Revenue from institutional financing advisory services increased to approximately HK$3,600 thousand (2024: approximately HK$1,800 thousand), mainly driven by stock market recovery[46] - Segment revenue was approximately HK$13,900 thousand, a 64.5% decrease from approximately HK$39,100 thousand in the previous period[47] - Segment profit increased from HK$22,600 thousand to HK$46,600 thousand, primarily due to the reversal of impairment loss on margin loan receivables[47] - Successfully applied for and obtained a Type 3 (leveraged foreign exchange trading) license to further expand this segment[47] Credit and Lending Services — Licensed under Money Lenders Ordinance Segment revenue increased from HK$1,600 thousand to HK$2,300 thousand, driven by increased lending in a low-interest environment, with segment profit rising from HK$400 thousand to HK$2,400 thousand; total loan receivables grew to HK$232,800 thousand, while impairment provisions decreased to HK$600 thousand - Segment revenue increased from approximately HK$1,600 thousand to approximately HK$2,300 thousand, primarily due to increased lending driven by a low-interest rate environment[49] - Segment profit increased from approximately HK$400 thousand to approximately HK$2,400 thousand[49] - As of June 30, 2025, total principal and accrued interest were approximately HK$232,800 thousand, a significant increase from approximately HK$119,000 thousand as of June 30, 2024[49] - Impairment provision for outstanding loan receivables was approximately HK$600 thousand (June 30, 2024: approximately HK$2,000 thousand)[50] Other Financial Services Segment revenue decreased from HK$7,200 thousand to HK$6,300 thousand, resulting in a loss of approximately HK$1,000 thousand (2024: profit of approximately HK$2,000 thousand), mainly due to intensified market competition, extended case processing times, and increased operating and staff costs - Segment revenue was approximately HK$6,300 thousand (2024: approximately HK$7,200 thousand)[51] - The segment recorded a loss of approximately HK$1,000 thousand (2024: profit of approximately HK$2,000 thousand)[51] - The decrease in consulting service income primarily reflects intensified competition and extended case processing times[51] - Administrative expenses increased due to higher operating and staff costs[51] Property Investment and Leasing Segment revenue slightly decreased to HK$5,500 thousand, and segment loss significantly widened from HK$11,600 thousand to HK$67,800 thousand, primarily due to an increase of HK$67,000 thousand in fair value loss on investment properties amidst a weak local property market; the Group holds four commercial properties with a total fair value of HK$340,500 thousand - Segment revenue was approximately HK$5,500 thousand (2024: approximately HK$5,700 thousand), a slight decrease mainly due to financial difficulties of a tenant[52] - Segment loss was approximately HK$67,800 thousand (2024: approximately HK$11,600 thousand), with the increase primarily due to an increase of HK$67,000 thousand in fair value loss on investment properties[52] - As of June 30, 2025, the Group held 4 commercial properties with a total fair value of HK$340,500 thousand (June 30, 2024: approximately HK$495,800 thousand)[52] Tactical and Strategic Investments Segment revenue was approximately HK$97,000 thousand, and segment profit turned from a loss of HK$88,200 thousand to a profit of HK$140,400 thousand, primarily driven by a share of profits from associates of approximately HK$44,400 thousand (prior period loss of HK$46,400 thousand) and net fair value gains on financial assets at fair value through profit or loss of approximately HK$79,100 thousand (prior period loss of HK$39,900 thousand) - Resources allocated to this segment (financial assets at fair value through profit or loss) for the period were approximately HK$189,500 thousand (December 31, 2024: approximately HK$110,300 thousand)[53] - Segment revenue was approximately HK$97,000 thousand (2024: approximately HK$1,000 thousand)[53] - Segment profit was approximately HK$140,400 thousand (2024: loss of approximately HK$88,200 thousand)[53] - Primarily due to share of profits from associates of approximately HK$44,400 thousand (2024: loss of approximately HK$46,400 thousand) and net fair value gain on financial assets at fair value through profit or loss of approximately HK$79,100 thousand (2024: loss of approximately HK$39,900 thousand)[53] Future Outlook and Strategies The company is actively exploring investment opportunities for long-term growth and higher shareholder returns, including venturing into AI chip and semiconductor business through the acquisition of Warpdrive Technology Limited, while also consolidating its integrated financial services and expanding into innovative technology-driven financial services like cryptocurrency financing, investment, and trading to capitalize on Hong Kong's fintech opportunities - The company acquired Warpdrive Technology Limited, venturing into the AI chip and semiconductor business development sector[54] - Integrating Warpdrive's AI chip R&D and commercialization capabilities will help the Group diversify beyond financial services[54] - Committed to consolidating integrated financial services and expanding into innovative technology-driven financial services, such as cryptocurrency financing, investment, and trading[54] - The Board believes that focusing on AI chip business development and fintech-related services will create significant long-term value for shareholders[54] Financial Review The Group's financial performance significantly improved in H1 2025, with substantial growth in net assets and cash and cash equivalents, and a decrease in the gearing ratio, indicating stronger financial health and liquidity, despite a decline in total revenue, which was offset by a significant increase in other comprehensive income Revenue Overall revenue for the period was approximately HK$45,300 thousand, a decrease of approximately HK$8,100 thousand from the prior period; financial services income (including other financial services) totaled approximately HK$19,700 thousand, lending business interest income increased to HK$2,300 thousand, rental income slightly decreased, and tactical and strategic business revenue reached HK$17,900 thousand due to disposal of financial assets - Overall revenue for the period was approximately HK$45,300 thousand, a decrease of approximately HK$8,100 thousand from the previous period[55] - Financial services income (including other financial services) totaled approximately HK$19,700 thousand (2024: approximately HK$46,200 thousand)[55] - Lending business interest income increased to approximately HK$2,300 thousand (2024: approximately HK$1,600 thousand)[55] - Tactical and strategic business revenue was approximately HK$17,900 thousand (2024: zero), mainly due to the disposal of certain financial assets[55] Other Comprehensive Income The Group recorded other comprehensive income of approximately HK$35,100 thousand for the period, a significant improvement from a loss of approximately HK$67,300 thousand in the prior year, primarily due to the share of other comprehensive income recognized by an associate of approximately HK$26,800 thousand - Other comprehensive income for the period was approximately HK$35,100 thousand (2024: loss of approximately HK$67,300 thousand)[56] - Primarily due to the share of other comprehensive income recognized by an associate of approximately HK$26,800 thousand (2024: expense of approximately HK$900 thousand)[56] Net Assets As of June 30, 2025, the Group's unaudited consolidated net assets were approximately HK$1,762,400 thousand, an increase of approximately HK$165,500 thousand from the end of the previous financial year, with unaudited consolidated net assets per share at approximately HK$1.83 - As of June 30, 2025, unaudited consolidated net assets were approximately HK$1,762,400 thousand, an increase of approximately HK$165,500 thousand from the end of the previous financial year[57] - Unaudited consolidated net assets per share were approximately HK$1.83[57] Capital Structure The Group's capital expenditures and investments are primarily funded by cash on hand, internally generated funds, and bank loans, maintaining a conservative financial policy with cash mostly held in short-term HKD deposits and no hedging instruments used - Capital expenditures and investments are primarily funded by cash on hand, internally generated funds, and bank loans[58] - The Group has consistently adopted a conservative financial policy in cash and financial management[58] - Cash is generally held in short-term deposits, with the majority denominated in HKD[58] - The Group does not use any financial instruments for hedging purposes[58] Liquidity and Capital Resources As of June 30, 2025, the Group's cash and cash equivalents (excluding trust and segregated accounts) increased to approximately HK$100,100 thousand, with total cash and cash equivalents and financial assets at fair value through profit or loss (current) amounting to approximately HK$184,900 thousand; the liquidity ratio of 3.7 indicates strong liquidity, and total bank loans decreased - As of June 30, 2025, cash and cash equivalents (excluding trust and segregated accounts) were approximately HK$100,100 thousand (December 31, 2024: approximately HK$39,300 thousand)[59] - Total cash and cash equivalents and financial assets at fair value through profit or loss (classified as current assets) amounted to approximately HK$184,900 thousand (December 31, 2024: approximately HK$100,200 thousand)[59] - The current ratio was 3.7 (December 31, 2024: 3.9), indicating very strong liquidity[59] - Total bank loans amounted to approximately HK$218,300 thousand (December 31, 2024: approximately HK$227,900 thousand)[59] Exchange Rate Fluctuation Risk and Related Hedging Due to the Group's primary income, expenses, assets, and bank deposits being denominated in HKD and USD, and the USD peg, exchange rate fluctuation risk is extremely low, and no hedging instruments are employed - The Group's primary sources of income, expenses, major assets, and bank deposits are denominated in HKD and USD[60] - Due to the USD peg, the Group's exchange rate fluctuation risk is very low[60] - The Group does not have any related hedging instruments[60] Gearing Ratio As of June 30, 2025, the Group's gearing ratio decreased to 12.8% from 14.9% on December 31, 2024, primarily due to an increase in shareholders' equity - As of June 30, 2025, the gearing ratio was 12.8% (December 31, 2024: 14.9%)[61] - The decrease in gearing ratio was primarily due to an increase in shareholders' equity[61] - Net debt is calculated as interest-bearing loans plus other payables and accrued charges, less cash and cash equivalents[61] Contingent Liabilities As of June 30, 2025, the Group had no significant contingent liabilities, consistent with the prior period - As of June 30, 2025, the Group had no significant contingent liabilities (December 31, 2024: nil)[62] Pledge of Group Assets As of June 30, 2025, the Group pledged investment properties with a carrying value of approximately HK$308,500 thousand as collateral for general banking facilities, a decrease from HK$359,800 thousand on December 31, 2024 - As of June 30, 2025, the Group pledged investment properties with a carrying value of approximately HK$308,500 thousand (December 31, 2024: approximately HK$359,800 thousand) as collateral for general banking facilities granted to the Group[63] Significant Investments The Group's significant investments include equity stakes in Green River Associates Limited and HEC Securities Company Limited, both associates aimed at long-term value creation, with Green River Marshall primarily engaged in securities investment and HEC Securities in investment holding and securities investment for credit financing; Green River Marshall contributed significant profit, while HEC Securities recorded a loss during the period - Green River Marshall: The Group holds approximately 47.8% of its total issued share capital, with a carrying value of approximately HK$215,500 thousand, accounting for approximately 10.5% of total assets; share of profit for the period was approximately HK$44,500 thousand[64][67] - HEC Securities: The Group holds approximately 33.0% of its total issued share capital, with a carrying value of approximately HK$102,800 thousand, accounting for approximately 5% of total assets; share of loss for the period was approximately HK$100 thousand[65][67] - These investments aim to create long-term value, providing stability and diversification[66] - The Group also holds a diversified portfolio of financial assets at fair value through profit or loss (including equity investments in 14 Hong Kong listed companies) with a total carrying value of HK$196,000 thousand, but each investment is less than 5% of total assets and not considered significant[68] Significant Events After Reporting Period After the reporting period, the company completed the acquisition of all equity in Warpdrive Technology Limited by issuing 15,000,000 ordinary shares, aiming to enter the AI chip and semiconductor business, and Mr. Dai Bin and Mr. Wong Kin Chun were appointed as executive directors - On May 8, 2025, Planetree Lavie Limited, a wholly-owned subsidiary of the company, entered into a sale and purchase agreement with Mr. Dai Bin to acquire the entire equity interest in Warpdrive Technology Limited[69] - The acquisition was completed in July 2025 through the allotment and issue of 15,000,000 ordinary shares of the company as consideration[69] - Mr. Dai Bin and Mr. Wong Kin Chun were appointed as executive directors of the company effective July 21, 2025, and August 22, 2025, respectively[69] Additional Information Review of Financial Statements The Group's unaudited condensed consolidated financial statements for the period have been reviewed by the auditor, RSM Hong Kong, in accordance with HKSRE 2410, and also reviewed and discussed by the company's audit committee - The unaudited condensed consolidated financial statements for the period have been reviewed by the company's auditor, RSM Hong Kong, in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants[70] - The company's audit committee has reviewed the accounting principles and practices adopted by the Group and discussed financial reporting matters[70] Human Resources Practices The Group's remuneration policy aims to provide fair and competitive treatment to attract and retain talent, determined by business needs, industry practices, market and economic conditions, and individual performance; as of June 30, 2025, the Group had 36 staff members and offered benefits including MPF, medical insurance, and discretionary training subsidies - Remuneration policy ensures fair and competitive treatment based on business needs and industry practices[71] - Remuneration is determined considering factors such as market and economic conditions, inflation, employment terms for other positions within the Group, and remuneration paid by comparable companies[71] - As of June 30, 2025, the Group had 36 staff members (including all directors)[71] - Other employee benefits provided include MPF, medical insurance, and discretionary training subsidies[71] Compliance with Corporate Governance Code The company is committed to maintaining high standards of corporate governance practices and complied with all code provisions of Appendix C1 Part 2 of the Listing Rules' Corporate Governance Code during the period - The company is committed to achieving and maintaining high standards of corporate governance practices[72] - During the period, the company complied with all code provisions contained in Appendix C1 Part 2 of the Corporate Governance Code under the Listing Rules of the Stock Exchange[72] Compliance with Model Code The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules, and each director confirmed compliance with the code during the period after specific inquiry - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[73] - Each director confirmed that they have complied with the required standards set out in the Model Code during the period[73] Purchase, Sale or Redemption of the Company's Listed Securities During the period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[74] Publication of Interim Results Announcement and Interim Report This results announcement has been published on the company's website and the Stock Exchange's designated issuer website, and the 2025 interim report will be dispatched to shareholders and published on these websites in September 2025 - This results announcement is published on the company's website (www.planetreeintl.com) and the Stock Exchange's designated issuer website (www.hkexnews.hk)[75](index=75&type=chunk) - The 2025 interim report will be dispatched to the company's shareholders and published on the aforementioned websites in September 2025[75] Acknowledgement The Board extends its sincere gratitude and appreciation to the management and all staff for their efforts and contributions to the company during the period - The Board extends its sincere gratitude and appreciation to the management and all staff for their efforts and contributions to the company during the period[76]