Business Review Overall Performance Overview The Group's revenue for the first half of 2025 decreased by 8.6% year-on-year to HKD 9.476 billion, and profit attributable to owners of the Company decreased by 13.2% year-on-year to HKD 1.042 billion, primarily due to reduced property deliveries, inventory impairment provisions, and fair value losses on investment properties Key Financial Indicators for H1 2025 | Indicator | H1 2025 (HKD) | Year-on-year change | | :--- | :--- | :--- | | Revenue | HKD 9.476 billion | -8.6% | | Profit Attributable to Owners of the Company | HKD 1.042 billion | -13.2% | - The decline in revenue and profit was primarily due to reduced sales recognition from property deliveries, significant impairment provisions for real estate inventories, and fair value losses on investment properties3 - The Board resolved to declare an interim dividend of 42 HK cents per share for 2025, consistent with 2024, payable on or about October 15, 20254 Infrastructure and Environmental Protection The Infrastructure and Environmental Protection segment reported a profit of HKD 933 million for the first half, a year-on-year decrease of 11.6%, accounting for approximately 92.2% of the Group's net profit, with stable cash flow from toll roads and active market expansion in water and environmental businesses Profit Contribution from Infrastructure and Environmental Protection Segment | Indicator | H1 2025 (HKD) | Year-on-year change | | :--- | :--- | :--- | | Profit | HKD 933 million | -11.6% | | Percentage of Group's Net Profit | 92.2% | - | - The decline in profit was mainly due to no longer sharing profits from the sale of Hangzhou Bay Bridge equity at the end of last year and losses from the sale of Canvest Environmental Protection Group equity, partially offset by compensation from early redemption of Canvest's exchangeable bonds59 - Toll road business saw stable growth in traffic volume and toll revenue, primarily benefiting from increased travel during holidays6 Toll Roads The Group's three toll roads achieved growth in total traffic volume and toll revenue in H1 2025, with specific highways showing increases, while the Group actively addresses inspections and plans for operational enhancements and digital transformation Toll Road Operating Data for H1 2025 | Toll Road | Net Profit (HKD) | YoY Change in Net Profit | Toll Revenue (HKD) | YoY Change in Toll Revenue | Traffic Volume (Vehicles) | YoY Change in Traffic Volume | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shanghai-Beijing Expressway (Shanghai Section) | HKD 186 million | -2.6% | HKD 305 million | +8.4% | 21.85 million | +6.0% | | Shanghai-Kunming Expressway (Shanghai Section) | HKD 287 million | +2.8% | HKD 458 million | +2.9% | 36.52 million | -1.9% | | Shanghai-Chongqing Expressway (Shanghai Section) | HKD 75 million | -0.6% | HKD 256 million | +5.4% | 18.95 million | +6.2% | | Total | HKD 548 million | +0.5% | HKD 1.019 billion | +5.1% | 77.32 million | +2.1% | - In the second half, the company will strengthen holiday traffic management, advance maintenance projects, implement flood and typhoon prevention measures, and promote intelligent transportation and digital transformation6 Water/Clean Energy The Group continues to expand its water and solid waste businesses, with SIIC Environment achieving 7.1% net profit growth through optimized financing, CEWC growing revenue by 2.5% and adding projects, Canvest Environmental completing privatization, and Everbright Greentech's waste-to-energy projects showing increased processing and power generation Performance of Key Water/Environmental Subsidiaries | Company | Revenue (RMB/HKD) | YoY Change in Revenue | Net Profit (RMB/HKD) | YoY Change in Net Profit | | :--- | :--- | :--- | :--- | :--- | | SIIC Environment | RMB 3.177 billion | -4.4% | RMB 344 million | +7.1% | | CEWC | HKD 980 million | +2.5% | HKD 120 million | -8.0% | | Canvest Environmental (Waste Input Volume) | 8.6175 million tons | +4.3% | On-grid Power Generation 3.093 billion kWh | +9.1% | - SIIC Environment's net profit growth was mainly due to optimized financing structure, leading to a 12.5% year-on-year decrease in finance costs9 - Canvest Environmental Protection Group delisted from the Stock Exchange on June 2, 2025, with the Company recovering approximately HKD 2.329 billion from share proceeds and approximately HKD 1.7 billion from exchangeable bonds through privatization12 Healthcare The Healthcare segment reported a profit of HKD 141 million for the first half, a significant year-on-year increase of 118.4%, accounting for approximately 14.0% of the Group's net profit, primarily driven by a one-off gain recognized by Shanghai Pharmaceuticals Holding Co., Ltd Profit Contribution from Healthcare Segment | Indicator | H1 2025 (HKD) | Year-on-year change | | :--- | :--- | :--- | | Profit | HKD 141 million | +118.4% | | Percentage of Group's Net Profit | 14.0% | - | - Shanghai Pharmaceuticals Holding Co., Ltd. reported a 1.61% increase in revenue to RMB 141.901 billion and a 39.5% increase in net profit to RMB 834 million, mainly due to a one-off gain recognized by Shanghai Pharmaceuticals14 New Frontier Business The New Frontier Business, primarily photovoltaic power plants, had a capacity of 740 MW as of June 2025, with on-grid power generation decreasing by 8.9% year-on-year due to increased curtailment, prompting the team to focus on power trading and project acquisitions Photovoltaic Power Plant Business Data | Indicator | H1 2025 | | :--- | :--- | | Photovoltaic Power Plant Asset Scale | 740 MW | | On-grid Power Generation | 472,489,600 kWh | | YoY Change in On-grid Power Generation | -8.9% | - The decrease in on-grid power generation was primarily due to increased power curtailment15 Real Estate The Real Estate segment incurred a loss of HKD 465 million in the first half, a 2.56-fold increase in loss year-on-year, representing negative 46.0% of the Group's net profit, mainly due to reduced property deliveries, inventory impairment provisions, and investment property valuation write-downs Loss Contribution from Real Estate Segment | Indicator | H1 2025 (HKD) | Year-on-year change | | :--- | :--- | :--- | | Loss | HKD 465 million | Increased by approximately 2.56 times | | Percentage of Group's Net Profit | -46.0% | - | - The increased loss was primarily due to reduced sales recognition from property deliveries, significant impairment of inventories for some projects, and fair value losses on investment properties31659 Shanghai Industrial Development Shanghai Industrial Development's H1 revenue increased by 19.7% to RMB 1.232 billion, but reported a loss attributable to owners of RMB 754 million, mainly due to significant inventory impairment from the real estate downturn, with signed sales of RMB 290 million and rental income of RMB 200 million Shanghai Industrial Development Operating Data for H1 2025 | Indicator | Amount (RMB) | YoY Change | | :--- | :--- | :--- | | Revenue | RMB 1.232 billion | +19.7% | | Loss Attributable to Owners | RMB 754 million | - | | Contracted Sales | RMB 290 million | - | | Property Delivery and Sales Recognition | RMB 284 million | - | | Rental Income | RMB 200 million | - | - The loss was mainly due to the real estate industry still being in a stabilization phase, with significant impairment indicators for inventories of some company projects17 SIIC Urban Development SIIC Urban Development's H1 revenue decreased by 38.7% to HKD 1.828 billion, resulting in a loss attributable to owners of HKD 492 million, primarily due to reduced gross profit from property sales and lower delivery sales across multiple projects, with contracted sales of RMB 689 million and rental income of HKD 365 million SIIC Urban Development Operating Data for H1 2025 | Indicator | Amount (HKD/RMB) | YoY Change | | :--- | :--- | :--- | | Revenue | HKD 1.828 billion | -38.7% | | Loss Attributable to Owners | HKD 492 million | - | | Contracted Sales | RMB 689 million | -69.8% | | Property Delivery Amount | HKD 1.349 billion | - | | Rental Income | HKD 365 million | - | - The decline in revenue was mainly due to reduced delivery sales across multiple projects compared to the same period last year, and the loss was primarily due to lower gross profit from property sales revenue18 Consumer Goods The Consumer Goods segment reported a profit of HKD 403 million for the first half, a year-on-year increase of 26.0%, accounting for approximately 39.8% of the Group's net profit, with Nanyang Tobacco and Wing Fat Printing achieving steady growth, the latter benefiting significantly from business structure optimization and cost reduction Profit Contribution from Consumer Goods Segment | Indicator | H1 2025 (HKD) | Year-on-year change | | :--- | :--- | :--- | | Profit | HKD 403 million | +26.0% | | Percentage of Group's Net Profit | 39.8% | - | - Nanyang Tobacco actively responded to market changes, achieving steady improvement in operating performance; Wing Fat Printing, despite a decline in alcohol packaging sales, saw overall stable growth driven by tobacco, pharmaceutical, and e-cigarette packaging businesses20 Tobacco Nanyang Tobacco's H1 revenue increased by 16.4% to HKD 1.273 billion, with net profit up 20.0% to HKD 337 million and sales volume growing by 31.1% to over 746,000 cases, despite a decline in Hong Kong and Macau duty-paid markets due to tax hikes, offset by strong overseas sales Nanyang Tobacco Operating Data for H1 2025 | Indicator | Amount (HKD) | YoY Change | | :--- | :--- | :--- | | Revenue | HKD 1.273 billion | +16.4% | | Net Profit | HKD 337 million | +20.0% | | Sales Volume | 746,000 cases | +31.1% | - Sales in the Hong Kong and Macau duty-paid markets decreased year-on-year, primarily due to significant tobacco tax increases in Hong Kong for two consecutive years21 - The company will continue to deepen its market orientation, systematically launch new products, enhance product structure and brand influence, and accelerate the implementation of intelligent technologies22 Printing Wing Fat Printing's H1 revenue increased by 1.1% to HKD 759 million, with net profit surging by 46.7% to HKD 69.94 million, primarily driven by stable growth in tobacco and pharmaceutical packaging and molded pulp businesses, alongside optimized business structure and cost reduction at core factories Wing Fat Printing Operating Data for H1 2025 | Indicator | Amount (HKD) | YoY Change | | :--- | :--- | :--- | | Revenue | HKD 759 million | +1.1% | | Net Profit | HKD 69.94 million | +46.7% | - The significant increase in net profit was primarily due to optimized business structure and cost reduction and efficiency improvements at core factories, substantially enhancing overall profitability23 - In the second half, the company will continue to implement the strategy of "expanding markets through external collaboration and improving efficiency through internal cost reduction" to ensure the achievement of full-year performance targets24 Outlook Outlook For H2 2025, the Group anticipates uncertainties from geopolitical tensions and trade unilateralism, alongside opportunities from China's economic stabilization and policy support, committing to prudent operations, innovation-driven development, business transformation, integrated finance and industry, comprehensive risk management, and asset structure optimization to enhance competitiveness and shareholder value - The Infrastructure and Environmental Protection segment will continue to optimize its business layout, expand market share, and consolidate its leading position; toll roads will further enhance operational efficiency26 - The Real Estate segment will closely monitor policy developments, optimize operating strategies, revitalize existing assets, accelerate destocking and cash collection, and anticipates marginal improvement in the industry26 - Nanyang Tobacco will implement a high-quality development strategy, improve operational efficiency, and accelerate the application of intelligent technologies; Wing Fat Printing will continue its strategy of "expanding markets through external collaboration and improving efficiency through internal cost reduction"27 Interim Dividend Interim Dividend The Board resolved to declare an interim dividend of 42 HK cents per share for 2025, consistent with 2024, payable on or about October 15, 2025, to shareholders registered on September 26, 2025 Interim Dividend Information | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Interim Dividend (per share) | 42 HK cents | 42 HK cents | | Record Date | September 26, 2025 | - | | Payment Date | On or about October 15, 2025 | - | Other Corporate Governance and Reporting Information Closure of Register of Members To determine eligibility for the interim dividend, the company will close its register of members on September 26, 2025, requiring all transfer documents to be submitted by 4:30 p.m. on September 25, 2025 - The register of members will be closed on September 26, 2025, with the deadline for submitting transfer documents being 4:30 p.m. on September 25, 202530 Review of Interim Results The Company's Audit Committee has reviewed the unaudited condensed consolidated interim results for the six months ended June 30, 2025 - The interim results have been reviewed by the Audit Committee31 Corporate Governance For the six months ended June 30, 2025, the Company has complied with all applicable code provisions of Part 2 of the Corporate Governance Code in Appendix C1 to the Listing Rules of the Stock Exchange - The Company has complied with all applicable provisions of the Stock Exchange's Corporate Governance Code32 Purchase, Sale or Redemption of Listed Securities For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed their respective listed securities - Neither the Company nor its subsidiaries engaged in the purchase, sale, or redemption of listed securities during this period33 Publication of Interim Report The 2025 Interim Report will be dispatched to shareholders in mid-September 2025 and published on the Stock Exchange's "Disclosure of Interests" website and the Company's website - The interim report will be published in mid-September 202534 Board of Directors As of the announcement date, the Board of Directors comprises four Executive Directors (Ms. Leng Weiqing, Mr. Zhang Qian, Mr. Yao Jiayong, and Mr. Xu Youli) and two Independent Non-executive Directors (Mr. Leung Pak To, Peter and Mr. Yuan Tianfan) - The Board of Directors consists of four Executive Directors and two Independent Non-executive Directors35 Interim Results Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, the Group's revenue decreased by 8.6% to HKD 9.476 billion, gross profit decreased by 24.1% to HKD 2.512 billion, profit for the period decreased by 44.0% to HKD 788.169 million, and profit attributable to owners of the Company decreased by 13.2% to HKD 1.042 billion, with basic and diluted earnings per share at HKD 0.958 Key Data from Condensed Consolidated Statement of Profit or Loss | Indicator | H1 2025 (HKD '000) | H1 2024 (HKD '000) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 9,476,025 | 10,369,131 | -8.6% | | Gross Profit | 2,511,966 | 3,307,543 | -24.1% | | Profit Before Tax | 1,164,894 | 2,059,388 | -43.4% | | Profit for the Period | 788,169 | 1,408,494 | -44.0% | | Profit Attributable to Owners of the Company | 1,041,797 | 1,200,896 | -13.2% | | Basic Earnings Per Share | HKD 0.958 | HKD 1.105 | -13.2% | Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, total comprehensive income for the period was HKD 2.728 billion, a significant improvement from a loss of HKD 319.074 million in the prior year, with total comprehensive income attributable to owners of the Company reaching HKD 2.150 billion, primarily due to positive foreign exchange differences from overseas operations Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | H1 2025 (HKD '000) | H1 2024 (HKD '000) | | :--- | :--- | :--- | | Profit for the Period | 788,169 | 1,408,494 | | Other Comprehensive Income (Expense) for the Period | 1,940,159 | (1,727,568) | | Total Comprehensive Income (Expense) for the Period | 2,728,328 | (319,074) | | Total Comprehensive Income Attributable to Owners of the Company | 2,149,733 | 243,740 | - Other comprehensive income shifted from an expense in the prior period to income in the current period, primarily due to a positive change in foreign exchange differences on translation of overseas operations38 Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets less current liabilities increased to HKD 131.37 billion from HKD 128.344 billion at year-end 2024, with total equity growing to HKD 80.331 billion, reflecting a slight decrease in non-current assets and a significant increase in net current assets Key Data from Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (HKD '000) | December 31, 2024 (HKD '000) | | :--- | :--- | :--- | | Non-current Assets | 99,737,201 | 102,522,625 | | Current Assets | 65,831,814 | 65,990,068 | | Current Liabilities | 34,199,030 | 40,168,739 | | Net Current Assets | 31,632,784 | 25,821,329 | | Total Assets Less Current Liabilities | 131,369,985 | 128,343,954 | | Total Equity | 80,330,557 | 78,293,330 | - Net current assets increased from HKD 25.821 billion to HKD 31.633 billion, indicating improved liquidity40 - Equity attributable to owners of the Company increased from HKD 47.571 billion to HKD 49.155 billion40 Notes This section provides detailed explanations for the interim financial statements, covering review status, basis of preparation, significant accounting policies, segment information, taxation, items deducted/included in profit for the period, dividends, earnings per share, and aging analysis of trade receivables/payables - The condensed consolidated financial statements have been reviewed by Deloitte Touche Tohmatsu41 - The amendments to HKFRS "Lack of Exchangeability" were applied for the first time in this period, but had no material impact on the financial position and performance44 Segment Information Segment information reveals that Infrastructure and Environmental Protection remains the primary source of revenue and profit, despite a profit decline; Real Estate shifted from profit to an expanded loss; Consumer Goods and Healthcare segments showed significant profit growth, while asset and liability structures across segments remained relatively stable H1 2025 Segment Revenue and Segment Profit (Loss) Attributable to Owners of the Company After Tax | Segment | Revenue (HKD '000) | Segment Profit (Loss) Attributable to Owners of the Company After Tax (HKD '000) | | :--- | :--- | :--- | | Infrastructure and Environmental Protection | 4,432,900 | 933,312 | | Real Estate | 3,142,524 | (465,432) | | Consumer Goods | 1,900,601 | 403,315 | | Healthcare | - | 141,477 | | Consolidated Total | 9,476,025 | 1,041,797 | - The Real Estate segment shifted from a profit in the prior period to a loss in the current period, with a significant increase in the loss amount4546 - Consumer Goods and Healthcare segments showed significant growth in their contribution to profit attributable to owners of the Company4546 Taxation Total taxation for the period was HKD 377 million, down from HKD 651 million in the prior year, primarily comprising Hong Kong profits tax, China land appreciation tax, and China corporate income tax, which included HKD 99.132 million in withholding tax Taxation Components | Tax Type | H1 2025 (HKD '000) | H1 2024 (HKD '000) | | :--- | :--- | :--- | | Hong Kong Profits Tax | 52,164 | 52,259 | | China Land Appreciation Tax | 50,039 | 67,743 | | China Corporate Income Tax | 511,363 | 561,739 | | Under (Over) Provision in Prior Periods | (31,433) | (35,999) | | Deferred Tax for the Period | (205,408) | 5,152 | | Total | 376,725 | 650,894 | - China corporate income tax included HKD 99.132 million in China withholding tax, an increase from the prior period49 - Some PRC subsidiaries enjoy a preferential tax rate of 15% or corporate income tax exemptions/reductions50 Profit for the Period Deducted (Included) the Following Items Profit for the period was adjusted by deducting various expenses, including amortization of intangible assets, toll road operating rights, depreciation of property, plant and equipment, right-of-use assets, impairment losses on trade receivables, and net fair value losses on investment properties, while including dividend income, government compensation, fair value gains on financial assets, and net exchange gains Key Items Deducted (Included) in Profit for the Period | Item | H1 2025 (HKD '000) | H1 2024 (HKD '000) | | :--- | :--- | :--- | | Amortisation of other intangible assets | 412,663 | 259,869 | | Amortisation of toll road operating rights | 377,815 | 339,570 | | Net fair value loss on investment properties | 454,542 | 36,804 | | Impairment loss on trade receivables | 122,567 | 8,159 | | Dividend income from investments | (51,690) | (3,762) | | Government compensation for toll road operating rights | (212,244) | (190,740) | | Net exchange (gain) loss | (54,340) | 26,869 | - Net fair value loss on investment properties significantly increased from HKD 36.804 million to HKD 454.542 million51 - Impairment loss on trade receivables significantly increased from HKD 8.159 million to HKD 122.567 million51 Earnings Per Share Basic and diluted earnings per share attributable to owners of the Company decreased to HKD 0.958 from HKD 1.105 in the prior year, with the weighted average number of ordinary shares used in the calculation remaining unchanged Earnings Per Share Data | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit for the Period Attributable to Owners of the Company (HKD '000) | 1,041,797 | 1,200,896 | | Basic and Diluted Earnings Per Share (HKD) | 0.958 | 1.105 | | Weighted Average Number of Ordinary Shares | 1,087,211,600 | 1,087,211,600 | Trade and Other Receivables As of June 30, 2025, total trade receivables increased to HKD 7.342 billion from HKD 6.763 billion at year-end 2024, with a notable increase in receivables outstanding for more than 365 days Aging Analysis of Trade Receivables | Aging | June 30, 2025 (HKD '000) | December 31, 2024 (HKD '000) | | :--- | :--- | :--- | | Within 30 days | 1,385,407 | 1,192,689 | | 31-60 days | 508,161 | 548,503 | | 61-90 days | 497,875 | 504,205 | | 91-180 days | 1,095,094 | 1,180,031 | | 181-365 days | 1,625,943 | 1,601,723 | | Over 365 days | 2,229,101 | 1,735,593 | | Total | 7,341,581 | 6,762,744 | - Trade receivables outstanding for more than 365 days increased from HKD 1.736 billion to HKD 2.229 billion, a growth of approximately 28.4%55 Trade and Other Payables As of June 30, 2025, total trade payables decreased to HKD 4.791 billion from HKD 5.729 billion at year-end 2024, with a significant reduction in payables due within 30 days Aging Analysis of Trade Payables | Aging | June 30, 2025 (HKD '000) | December 31, 2024 (HKD '000) | | :--- | :--- | :--- | | Within 30 days | 1,216,434 | 3,071,754 | | 31-60 days | 180,706 | 272,984 | | 61-90 days | 159,068 | 125,802 | | 91-180 days | 279,244 | 340,136 | | 181-365 days | 1,096,814 | 447,631 | | Over 365 days | 1,858,966 | 1,470,550 | | Total | 4,791,232 | 5,728,857 | - Trade payables due within 30 days significantly decreased from HKD 3.072 billion to HKD 1.216 billion, a reduction of approximately 60.4%57 Financial Review Financial Performance Analysis Revenue decreased by 8.6% year-on-year, primarily due to reduced property deliveries and lower construction revenue from SIIC Environment, partially offset by increased cigarette sales from consumer goods, while the Group's gross margin declined by 5.4 percentage points due to real estate inventory impairment provisions, and segment profit contributions diverged - The decline in revenue was mainly due to reduced sales recognition from real estate property deliveries and a year-on-year decrease in SIIC Environment's construction revenue, though partially offset by increased cigarette sales from the consumer goods segment58 - The overall gross profit margin decreased by 5.4 percentage points year-on-year, primarily due to impairment provisions for real estate inventories61 - Other income, profits, and losses decreased, mainly due to increased losses recorded from fair value changes of investment properties61 - The disposal of interests in associates/a subsidiary shifted from a profit in the prior period to a loss in the current period, primarily due to losses incurred from the disposal of Canvest Environmental Protection Group63 Group Financial Position As of June 30, 2025, equity attributable to owners of the Company increased to HKD 49.155 billion from year-end 2024, with total loans at approximately HKD 58.513 billion, 65.3% of which are unsecured, and the Group maintains robust liquidity with ample bank balances and short-term investments, committed to optimizing its capital structure Key Data on Group Financial Position | Indicator | June 30, 2025 (HKD) | December 31, 2024 (HKD) | | :--- | :--- | :--- | | Equity Attributable to Owners of the Company | HKD 49.155 billion | HKD 47.571 billion | | Total Loans | HKD 58.513 billion | HKD 59.492 billion | | Percentage of Unsecured Loans | 65.3% | 65.6% | | Bank Balances and Short-term Investments | HKD 28.534 billion | HKD 28.514 billion | | Contracted Capital Commitments | HKD 2.968 billion | HKD 3.338 billion | - Total loans slightly decreased, with loan proportions in USD and other currencies, RMB, and HKD being 0.1%, 96.1%, and 3.8%, respectively66 - The Group provided bank credit facility guarantees for property buyers, associates, and joint ventures, totaling approximately HKD 2.831 billion68 - The Group maintains ample liquidity and a robust interest coverage ratio, and will periodically review market conditions to optimize its capital structure69
上海实业控股(00363) - 2025 - 中期业绩