闽信集团(00222) - 2025 - 中期业绩

Financial Highlights The Group achieved significant performance growth in the first half of 2025, with profit attributable to shareholders increasing by 94.9% year-on-year, alongside robust growth in total assets and total equity attributable to shareholders | Indicator | H1 2025 (HKD) | H1 2024 (HKD) | YoY Change | | :--- | :--- | :--- | :--- | | Profit attributable to shareholders | HKD 64.87 million | HKD 33.29 million | +94.9% | | Basic earnings per share | 10.86 HK cents | 5.57 HK cents | +94.9% | | Total assets | HKD 9.34 billion | HKD 8.92 billion (End of 2024) | +4.7% | | Total equity attributable to shareholders | HKD 8.22 billion | HKD 7.82 billion (End of 2024) | +5.1% | Condensed Consolidated Financial Statements This section presents the Group's unaudited condensed consolidated statement of profit or loss, statement of comprehensive income, and statement of financial position for the six months ended June 30, 2025, comprehensively illustrating the Group's financial performance and position during the period Condensed Consolidated Statement of Profit or Loss The Group's total revenue increased to HKD 109,988 thousand in H1 2025, with operating profit turning from a loss to a profit of HKD 23,776 thousand, and profit for the period significantly growing by 94.9% to HKD 64,868 thousand | Indicator | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | | :--- | :--- | :--- | | Total revenue | 109,988 | 103,301 | | Operating income | 124,357 | 121,948 | | Operating profit/(loss) | 23,776 | (13,851) | | Profit before tax | 69,140 | 36,629 | | Profit for the period | 64,868 | 33,292 | | Basic and diluted earnings per share | 10.86 HK cents | 5.57 HK cents | Condensed Consolidated Statement of Comprehensive Income The Group's total comprehensive income significantly increased to HKD 399,226 thousand in H1 2025, primarily due to a substantial positive change in foreign currency translation reserve, reversing the negative value from the prior period | Indicator | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | | :--- | :--- | :--- | | Profit for the period | 64,868 | 33,292 | | Fair value reserve changes, net of tax | 51,382 | 127,490 | | Foreign currency translation reserve changes | 213,484 | (150,686) | | Other comprehensive income for the period, net of tax | 334,358 | (16,373) | | Total comprehensive income for the period | 399,226 | 16,919 | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets increased by 4.7% to HKD 9,344,397 thousand compared to the end of 2024, with total equity attributable to shareholders rising by 5.1% to HKD 8,217,373 thousand, and total liabilities also slightly increasing | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Total assets | 9,344,397 | 8,915,071 | | Investments in associates | 6,679,582 | 6,360,035 | | Total equity attributable to shareholders | 8,217,373 | 7,818,147 | | Total liabilities | 1,127,024 | 1,096,924 | Notes This section elaborates on the basis of preparation, accounting policies, segment information, and specific components and changes of various financial items in the Group's interim financial statements, providing necessary supplementary information for understanding the financial statements Basis of Preparation of the Condensed Consolidated Financial Statements and Significant Accounting Policies Information The Group's interim financial statements are prepared in accordance with HKAS 34 and consistent with the accounting policies in the 2024 annual report, with only the adoption of HKAS 21 amendments on lack of exchangeability, which had no significant impact - Financial statements are prepared in accordance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants[11] - The adoption of amendments to HKAS 21 "Lack of Exchangeability" had no significant impact on the results and financial position for the current or prior periods[13] Segment Information The Group's business is segmented into financial services, insurance, property investment, and strategic investments based on internal reporting to the chief operating decision maker, with detailed disclosures on each segment's performance, assets, liabilities, and geographical distribution Segment Results, Assets and Liabilities The financial services segment's operating profit significantly increased to HKD 7,839 thousand (H1 2024: loss of HKD 21,412 thousand), and the insurance segment's operating profit rose to HKD 10,309 thousand, with changes in total assets and liabilities across all segments | Segment | H1 2025 Operating Profit/(Loss) (HKD thousands) | H1 2024 Operating Profit/(Loss) (HKD thousands) | June 30, 2025 Total Assets (HKD thousands) | December 31, 2024 Total Assets (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | | Financial Services | 7,839 | (21,412) | 6,702,131 | 6,376,712 | | Insurance | 10,309 | 5,578 | 618,575 | 534,400 | | Property Investment | 548 | (1,440) | 40,624 | 41,047 | | Strategic Investments | 4,901 | 4,879 | 711,970 | 664,880 | | Corporate Activities | 224 | (1,406) | 1,273,934 | 1,301,749 | | Consolidated | 23,776 | (13,851) | 9,344,397 | 8,915,071 | Geographical Information In H1 2025, the Group's external customer revenue primarily originated from Hong Kong (HKD 47,615 thousand) and Macau (HKD 55,138 thousand), with Mainland China contributing HKD 7,235 thousand, and designated non-current assets mainly concentrated in Mainland China, totaling HKD 6,735,256 thousand | Region | H1 2025 External Customer Revenue (HKD thousands) | H1 2024 External Customer Revenue (HKD thousands) | June 30, 2025 Designated Non-current Assets (HKD thousands) | December 31, 2024 Designated Non-current Assets (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | | Hong Kong | 47,615 | 43,456 | 132,220 | 134,816 | | Mainland China | 7,235 | 2,326 | 6,735,256 | 6,416,312 | | Macau | 55,138 | 57,519 | 434 | 876 | | Consolidated | 109,988 | 103,301 | 6,867,910 | 6,552,004 | - The Group's principal reportable segments include financial services (banking, micro-credit), insurance, property investment, and strategic investments[16] - Inter-segment transactions are priced at market terms, with revenues and expenses eliminated in the consolidated accounts[17] Other Income The Group's total other income for H1 2025 was HKD 14,369 thousand, a decrease from HKD 18,647 thousand in the prior period, mainly due to lower interest income from bank deposits | Income Source | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | | :--- | :--- | :--- | | Interest income from bank deposits | 14,079 | 18,509 | | Dividend income from financial assets at fair value through profit or loss | 114 | 18 | | Total other income | 14,369 | 18,647 | Other Gains/(Losses) – Net The Group's net other gains for H1 2025 amounted to HKD 9,430 thousand, a significant improvement from a loss of HKD 24,264 thousand in the prior period, primarily driven by a substantial contribution from net exchange gains | Item | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | | :--- | :--- | :--- | | Realised and unrealised net gains from financial assets at fair value through profit or loss | 2,113 | 5,880 | | Fair value loss on investment properties | (2,368) | (2,297) | | Net exchange gains/(losses) | 9,653 | (28,072) | | Other gains/(losses) – Net | 9,430 | (24,264) | Operating Profit/(Loss) The Group's operating profit for H1 2025 was HKD 23,776 thousand, primarily contributed by net exchange gains of HKD 9,653 thousand, while staff costs (including directors' emoluments) increased to HKD 26,322 thousand | Item | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | | :--- | :--- | :--- | | Net exchange gains | 9,653 | – | | Rental income from investment properties | 4,310 | 3,476 | | Staff costs (including directors' emoluments) | 26,322 | 17,362 | | Depreciation and amortisation | 1,424 | 1,356 | Finance Costs The Group's total finance costs for H1 2025 amounted to HKD 20,137 thousand, a decrease from HKD 22,561 thousand in the prior period, mainly due to reduced interest expense on bank borrowings | Item | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | | :--- | :--- | :--- | | Interest expense on bank borrowings | 17,971 | 22,520 | | Interest expense on loans from controlling shareholder | 2,115 | – | | Total finance costs | 20,137 | 22,561 | Income Tax Expense The Group's income tax expense for H1 2025 was HKD 4,272 thousand, an increase from HKD 3,337 thousand in the prior period, primarily comprising Mainland China corporate income tax and Macau taxes | Tax Type | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | | :--- | :--- | :--- | | Hong Kong profits tax | 115 | 142 | | Mainland China corporate income tax | 2,053 | 2,639 | | Mainland China withholding income tax | 747 | – | | Macau taxes | 1,414 | 1,609 | | Total income tax expense | 4,272 | 3,337 | Earnings Per Share The Group's basic earnings per share for H1 2025 was 10.86 HK cents, a significant increase from 5.57 HK cents in the prior period, primarily based on profit attributable to shareholders of HKD 64.868 million | Indicator | H1 2025 | H1 2024 | | :--- | :--- | | Basic earnings per share | 10.86 HK cents | 5.57 HK cents | | Profit attributable to shareholders | HKD 64.868 million | HKD 33.292 million | | Weighted average number of ordinary shares in issue | 597,257,252 shares | 597,257,252 shares | Dividends The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Board of Directors resolved not to declare an interim dividend for H1 2025[31] Credit-Impaired Customer Loans and Interest Receivables As of June 30, 2025, net credit-impaired customer loans and interest receivables amounted to HKD 9,042 thousand, a decrease from HKD 11,257 thousand at the end of 2024, with the Group having initiated legal proceedings and obtained effective legal documents for all impaired loan items | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Credit-impaired customer loans | 151,378 | 152,285 | | Credit-impaired interest receivables | 6,934 | 6,986 | | Impairment allowance | (149,270) | (148,014) | | Net amount | 9,042 | 11,257 | - The Group has initiated legal proceedings against borrowers for all credit-impaired loan items and obtained effective legal documents[32] Chairman's Statement The Chairman's Statement highlights the Group's significant performance growth in a challenging macroeconomic environment through prudent operations and diversified income strategies, summarizes the performance of key business segments (financial services and insurance), and expresses optimism for future growth prospects Macroeconomic Environment and Group Strategy Facing global economic volatility and geopolitical tensions, the Group adheres to prudent business development and diversified income sources to enhance core competitiveness and navigate uncertainties - Global economy remains volatile, with geopolitical tensions and complex trade environments impacting global markets[33] - The Group focuses on key strategic actions, prudently developing businesses and diversifying income sources to pursue performance growth[33] Overall Performance The Group's profit attributable to shareholders for H1 2025 significantly increased by 94.9% year-on-year to HKD 64.87 million, primarily due to exchange gains from RMB appreciation against HKD and the elimination of a one-off exchange loss in the prior period, with total assets growing by 4.7% to HKD 9.34 billion | Indicator | H1 2025 (HKD) | H1 2024 (HKD) | YoY Change | | :--- | :--- | :--- | :--- | | Profit attributable to shareholders | HKD 64.87 million | HKD 33.29 million | +94.9% | | Basic earnings per share | 10.86 HK cents | 5.57 HK cents | +94.9% | | Total assets (Period-end) | HKD 9.34 billion | HKD 8.92 billion (End of 2024) | +4.7% | - Profit growth was mainly due to exchange gains from the appreciation of RMB against HKD, and the non-recurrence of a one-off exchange loss of approximately HKD 21.93 million in H1 2024 due to the reduction of paid-up capital by Sanyuan Micro-Credit[34] Business Review Xiamen International Bank Group contributed 97% of the Group's performance, despite a 13.4% year-on-year decrease in its profit after tax, while Minxin Insurance's insurance service results significantly grew by 157.8% and received additional capital injection to support long-term development Financial Services Xiamen International Bank Group, the Group's most significant financial investment, contributed approximately 97% of the Group's performance, though its share of profit after tax decreased by 13.4% year-on-year, while Xiamen Bank Group's total assets grew steadily by 1% and continued to advance its overseas Chinese financial strategy, ranking among the top 200 global banks - Xiamen International Bank Group contributed approximately 97% of the Group's performance[35] | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Share of Xiamen Bank Group's profit after tax | HKD 62.92 million | HKD 72.66 million | -13.4% | - Xiamen Bank Group's total assets increased by 1% to RMB 1,152.53 billion as of June 30, 2025[35] - Xiamen Bank Group ranked 160th (by total assets) and 181st (by Tier 1 capital) in the "2025 Top 1000 World Banks" ranking, continuously strengthening its overseas Chinese financial strategy[36] Insurance Business Minxin Insurance Company Limited maintained a B++ (Good) financial strength rating, with its insurance service results significantly increasing by 157.8% year-on-year to HKD 13.43 million, primarily due to reduced claims costs, and the Group has injected HKD 60 million in additional capital, with plans for another HKD 60 million in 2026 to support business development - Minxin Insurance maintained a B++ (Good) financial strength rating and bbb+ (Good) long-term issuer credit rating from A.M. Best, with a stable outlook[37] | Indicator | H1 2025 (HKD) | H1 2024 (HKD) | YoY Change | | :--- | :--- | :--- | :--- | | Insurance service results | HKD 13.43 million | HKD 5.21 million | +157.8% | | Insurance finance expenses | HKD 3.67 million | HKD 0.59 million | +522% | - An additional capital injection of HKD 60 million has been made, with another HKD 60 million expected in 2026 to support the long-term development of the insurance business[37] Outlook The Group is optimistic about long-term growth prospects, committed to prudent risk management, strengthening core competitiveness, integrating resources, leveraging growth opportunities in Greater China, and enhancing profitability and shareholder value - The Group is optimistic about long-term growth prospects and will continue to strengthen core competitiveness and enhance risk management[39] - The Group will integrate resources, fully leverage continuous growth opportunities in Greater China, enhance profitability, and create maximum shareholder value[39] Management Discussion and Analysis This section provides a detailed analysis of the Group's operating results for H1 2025 and an in-depth discussion of the performance of key business segments, including financial services (banking and micro-credit), insurance, strategic investments (Huaneng A shares), and property investment, explaining the key drivers and financial changes for each business Business Review The Group's performance benefited from the appreciation of RMB against HKD and the elimination of a one-off exchange loss in the prior period, while the overall economic outlook remains uncertain - The Group's performance benefited from the appreciation of RMB against HKD and the reduction of a one-off exchange loss recognized in the prior period[40] Operating Results The Group's profit attributable to shareholders for H1 2025 significantly increased by 94.9% year-on-year to HKD 64.87 million, with basic earnings per share rising to 10.86 HK cents, primarily attributed to exchange gains and the elimination of a one-off loss in the prior period | Indicator | H1 2025 (HKD) | H1 2024 (HKD) | YoY Change | | :--- | :--- | :--- | :--- | | Profit attributable to shareholders | HKD 64.87 million | HKD 33.29 million | +94.9% | | Basic earnings per share | 10.86 HK cents | 5.57 HK cents | +5.29 HK cents | - Profit growth was mainly due to exchange gains from the appreciation of RMB against HKD, and the non-recurrence of a one-off exchange loss of approximately HKD 21.93 million in H1 2024 due to the reduction of paid-up capital by Sanyuan Micro-Credit[41] Segment Business Analysis This section provides a detailed analysis of the Group's key business segments, including financial services (banking and micro-credit), insurance, strategic investments (Huaneng A shares), and property investment, revealing changes in revenue, profit, assets, liabilities, and key operating indicators for each business Financial Services Financial services business profit after tax increased by 38.1% to HKD 70.75 million in H1 2025, primarily due to the reduction of a one-off exchange loss in the prior period | Indicator | H1 2025 (HKD) | H1 2024 (HKD) | YoY Change | | :--- | :--- | :--- | :--- | | Profit after tax | HKD 70.75 million | HKD 51.24 million | +38.1% | - Profit increase was mainly due to the reduction of a one-off exchange loss recognized in the prior period[42] Banking Business Xiamen International Bank Group's profit after tax decreased by 12.8% year-on-year to RMB 671.32 million in H1 2025, but net interest income slightly increased by 0.4%, and non-interest income significantly rose by 67.2%, with total assets growing steadily by 1%, customer loans slightly decreasing by 0.7%, and the ratio of total impaired loans to total customer loans decreasing by 0.05 percentage points to 2.31% | Indicator | H1 2025 (RMB) | H1 2024 (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Profit after tax | RMB 671.32 million | RMB 769.59 million | -12.8% | | Net interest income | Increased by 0.4% | | | | Non-interest income | Increased by 67.2% | | | - Xiamen Bank Group's total assets increased by 1% to RMB 1,152.53 billion; customer loans decreased by 0.7% to RMB 590.47 billion[44] - The ratio of total impaired loans to total customer loans decreased by 0.05 percentage points to 2.31%[44] Micro-Credit Business Sanyuan Micro-Credit's profit after tax significantly increased to RMB 7.28 million in H1 2025, with the balance of impaired loans decreasing by 3.4% to RMB 138.37 million, and the company actively recovering impaired loans, having also applied for a further reduction in paid-up capital | Indicator | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | | Profit after tax | RMB 7.28 million | RMB 0.48 million | | Balance of impaired loans (Period-end) | RMB 138.37 million | RMB 143.24 million (End of 2024) | - Sanyuan Micro-Credit recovered RMB 4.87 million in principal and RMB 5.10 million in interest income from impaired loans[45] - An application has been submitted for a further reduction in paid-up capital of RMB 40 million[45] Insurance Business Minxin Insurance's insurance service results significantly grew by 157.8% to HKD 13.43 million in H1 2025, with profit after tax increasing by 120.1% to HKD 8.76 million, primarily due to reduced claims costs, and the company has received an additional capital injection of HKD 60 million | Indicator | H1 2025 (HKD) | H1 2024 (HKD) | YoY Change | | :--- | :--- | :--- | :--- | | Insurance revenue | HKD 90.46 million | HKD 91.91 million | -1.6% | | Insurance service results | HKD 13.43 million | HKD 5.21 million | +157.8% | | Profit after tax | HKD 8.76 million | HKD 3.98 million | +120.1% | - Profit growth was mainly due to reduced claims costs[46] - An additional capital injection of HKD 60 million has been made to support business development[46] Strategic Investments The fair value of the Group's Huaneng A shares increased, with a net fair value change gain of HKD 41.70 million recognized in other comprehensive income in H1 2025, and Huaneng International Power Co., Ltd. itself achieved a 24.3% growth in profit attributable to shareholders - The closing bid price of Huaneng A shares increased, with fair value reaching HKD 530.78 million[48] | Indicator | H1 2025 (HKD) | H1 2024 (HKD) | | :--- | :--- | | Net fair value change gain on Huaneng A shares | HKD 41.70 million | HKD 127.82 million | - Huaneng International Power Co., Ltd.'s profit attributable to shareholders increased by 24.3% to RMB 9.26 billion in H1 2025[49] Huaneng A Shares The fair value of Huaneng A shares increased, with the Group recognizing a net fair value change gain of HKD 41.70 million in other comprehensive income, and Huaneng's own performance was strong, with profit attributable to shareholders growing by 24.3% year-on-year, primarily due to reduced fuel costs and growth in new energy business - The closing bid price of Huaneng A shares increased from RMB 6.77 per share at the end of 2024 to RMB 7.14 per share as of June 30, 2025[48] - Huaneng International Power Co., Ltd.'s profit attributable to shareholders was RMB 9.26 billion in H1 2025, a year-on-year increase of 24.3%[49] - Huaneng's performance growth was mainly due to reduced fuel costs and orderly expansion of new energy scale[49] Property Investment Property investment business achieved a profit after tax of HKD 0.70 million in H1 2025, reversing the loss from the prior period, with Fuzhou property's occupancy rate significantly improving and rental income growing by 26.4%, though fair value slightly decreased | Indicator | H1 2025 (HKD) | H1 2024 (HKD) | | :--- | :--- | | Profit after tax | HKD 0.70 million | (HKD 0.34 million) | - Fuzhou property office occupancy rate increased to 86.4% (End of 2024: 79.2%), and parking space occupancy rate increased to 91.8% (End of 2024: 50.4%)[50] - Rental income increased by 26.4% to RMB 1.15 million[50] - Fuzhou property fair value decreased by 1% to HKD 40.61 million[50] Financial Review This section outlines the Group's financial management strategies, detailing net asset value per share, borrowings, gearing ratios, cash position, exchange rate risk management, capital commitments, and contingent liabilities, along with employee and remuneration policies Net Asset Value Per Share As of June 30, 2025, the Group's net asset value per share was HKD 13.76, an increase from HKD 13.09 as of December 31, 2024 | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net asset value per share | HKD 13.76 | HKD 13.09 | | Ordinary shares in issue | 597,257,252 shares | 597,257,252 shares | Borrowings and Pledged Assets The Group's total borrowings increased to HKD 847.63 million, with effective annual interest rates ranging from 1.8% to 4.6%, and certain revolving bank borrowings are secured by the Group's self-occupied office property in Hong Kong, with an additional HKD 15 million in bank deposits pledged as collateral for standby letters of credit | Indicator | June 30, 2025 (HKD) | December 31, 2024 (HKD) | | :--- | :--- | :--- | | Total borrowings | HKD 847.63 million | HKD 836.50 million | | Effective annual interest rate range | 1.8% to 4.6% | 2.7% to 6.3% | | Available revolving bank borrowing facilities | Approx. HKD 192.37 million | | | Available controlling shareholder loan facilities | Approx. HKD 140 million | | - Certain revolving bank borrowings (HKD 229.63 million) are secured by the Group's self-occupied office property in Hong Kong, with a fair value of HKD 180 million[54] - HKD 15 million in bank deposits are pledged as collateral for standby letters of credit[55] Total Liabilities to Equity Ratio and Gearing Ratio As of June 30, 2025, the Group's total liabilities were HKD 1,127.02 million, with a total liabilities to total equity attributable to shareholders ratio of 13.7% and a gearing ratio of 10.3%, both decreasing from the end of 2024, indicating a healthy financial leverage level | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total liabilities | HKD 1,127.02 million | HKD 1,096.92 million | | Total liabilities to total equity attributable to shareholders ratio | 13.7% | 14% | | Gearing ratio | 10.3% | 10.7% | Cash Position As of June 30, 2025, the Group's total bank balances amounted to HKD 1,150.26 million, with RMB deposits accounting for 70.9% and HKD deposits for 20.1%, and Minxin Insurance maintained MOP 18.41 million and HKD 69.45 million in bank deposits to comply with regulatory requirements | Indicator | June 30, 2025 (HKD) | December 31, 2024 (HKD) | | :--- | :--- | :--- | | Total bank balances | HKD 1,150.26 million | HKD 1,337.36 million | | HKD deposits percentage | 20.1% | 14.6% | | RMB deposits percentage | 70.9% | 79.3% | - Minxin Insurance maintained MOP 18.41 million and HKD 69.45 million in bank deposits to comply with the Macau Legal Framework for Insurance Business[57] Exchange Rate Fluctuation Risk The Group faces exchange rate fluctuation risks between HKD and RMB, which are managed through regular review and monitoring, but no derivative contracts aimed at mitigating foreign exchange risks were entered into during the review period - The Group faces exchange rate fluctuation risks between HKD and RMB, which are regularly reviewed and monitored[58] - No derivative contracts aimed at mitigating foreign exchange risks were entered into during the review period[58] Capital Commitments As of June 30, 2025, the Group's total capital commitments amounted to HKD 0.18 million (for property, plant and equipment and investment properties), and it has committed to subscribe for capital in two limited partnerships totaling RMB 97.99 million | Item | June 30, 2025 (HKD) | December 31, 2024 (HKD) | | :--- | :--- | :--- | | Capital commitments for property, plant and equipment and investment properties | HKD 0.18 million | HKD 0.18 million | - Committed to subscribe for capital in two limited partnerships totaling RMB 97.99 million (approximately HKD 107.20 million)[59] Contingent Liabilities As of June 30, 2025, and December 31, 2024, the Group had no significant contingent liabilities - The Group had no significant contingent liabilities[60] Employees and Remuneration Policy As of June 30, 2025, the Group had 68 employees, with remuneration determined based on performance and qualifications, offering retirement and medical benefits, and on-the-job training, recognizing human resources as valuable assets | Indicator | June 30, 2025 | | :--- | :--- | | Total number of employees | 68 | - Remuneration is determined based on individual performance and qualifications, with retirement, medical benefits, and on-the-job training provided[61] Other Information This section covers information on the Group's corporate governance, directors' securities transactions, share movements, public float compliance, and audit committee review, as well as arrangements for the publication of interim results announcement and report Compliance with the Corporate Governance Code The Board believes that the Group has complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited for the six months ended June 30, 2025 - The Group has complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules[62] Compliance with the Model Code for Securities Transactions by Directors of Listed Issuers The Company has adopted a Code of Conduct no less exacting than the Model Code in Appendix C3 of the Listing Rules, and all Directors confirmed compliance with the relevant provisions for H1 2025 - The Company has adopted its own Code of Conduct for directors' securities transactions, and all directors confirmed compliance[63] Purchase, Sale or Redemption of Shares Neither the Group nor its subsidiaries purchased, sold, or redeemed any of the Company's issued shares during the review period - Neither the Group nor its subsidiaries purchased, sold, or redeemed any of the Company's issued shares during the review period[64] Public Float The Group's public float had fallen below the minimum 25% required by the Listing Rules but was restored to approximately 25.03% on July 16, 2025, through the sale of shares by Citychamp Watch & Jewellery Group Limited, thus complying with Listing Rules requirements - As of June 30, 2025, the public float was approximately 24.40%, below the minimum 25% required by Rule 8.08(1)(a) of the Listing Rules[65] - On July 16, 2025, through the sale of 3,800,000 shares, the public float was restored to approximately 25.03%, complying with Listing Rules requirements[66] Review by the Audit Committee The Audit Committee has reviewed the accounting principles and methods adopted by the Group and discussed matters related to risk management, internal control, and financial reporting, including the financial statements contained in this interim results announcement - The Audit Committee has reviewed the Group's accounting principles, risk management, internal control, and financial reporting matters, including this interim results announcement[67] Publication of Interim Results Announcement and 2025 Interim Report The interim results announcement for the six months ended June 30, 2025, has been published on the HKEX and the Company's website, and printed copies of the 2025 Interim Report will be dispatched to shareholders in due course - The interim results announcement has been published on the HKEX website (www.hkexnews.hk) and the Company's website (www.minxin.com.hk)[68](index=68&type=chunk) - Printed copies of the 2025 Interim Report will be dispatched to shareholders in due course[68]