珠江船务(00560) - 2025 - 中期业绩

Chairman's Report Business Review In H1 2025, the Group faced external challenges from global trade friction, geopolitical conflicts, a sluggish Hong Kong shipping industry, and a deteriorating mainland real estate market, impacting its freight logistics and cross-boundary passenger transport businesses. The Group actively responded by deepening market potential, strengthening collaboration, and enhancing service capabilities, achieving counter-trend growth in container and bulk cargo throughput and improving passenger transport competitiveness - Global trade tariff wars, geopolitical conflicts, and increased world economic uncertainty made global trade recovery difficult, leading to a multi-year low in Hong Kong's shipping industry and container throughput[4] - The continuous downturn in China's mainland real estate market worsened the sand and gravel bulk cargo market, and the opening of the Shenzhen-Zhongshan Link diverted cross-boundary passenger traffic in the Greater Bay Area, significantly impacting the Group's freight logistics and cross-boundary passenger transport businesses[4] - The Group actively responded by exploring market potential, strengthening cooperation with major manufacturing clients, developing engineering logistics business, optimizing port terminal layouts, and accelerating the cultivation of freight forwarding outlets in Vietnam, a Belt and Road country[5] - For passenger transport, the Group launched combined packages for cross-boundary water transport, Hong Kong local ferry, and Victoria Harbour tours, enhancing online and offline marketing to increase market share and marine tourism brand influence[5] - Through strengthened collaboration, the Group's business developed steadily, with container throughput increasing by 7.1% year-on-year and bulk cargo throughput increasing by 2.7% year-on-year, both against the trend[6] - Pearl River Passenger Transport enhanced brand awareness and customer experience through joint marketing; Oriental Pearl achieved significant growth in Victoria Harbour tour passengers through e-commerce platform cooperation and live streaming promotions; New World First Ferry continued to improve service capabilities and promote vessel renewal[7] - Sun Kong Petroleum commissioned its newly built lubricating oil tanker "Xin Hu" and acquired three diesel tankers, enhancing its influence in the local Hong Kong market[7] - The Group's investment in the Hong Kong-Zhuhai-Macao Bridge Shuttle Bus project also achieved good results, benefiting from increased passenger volume[7] Future Outlook For H2, the Group will focus on 'seeking progress while maintaining stability, expanding scale, innovation-driven, and overseas extension,' adhering to 'project-driven, capital-driven, and innovation-driven' strategies, with a focus on Hong Kong, Macau, and overseas markets. It will accelerate integrated operations, expand logistics business, transform cross-boundary passenger transport, and deepen local business development - H2 work guidelines: seeking progress while maintaining stability, expanding scale, innovation-driven, overseas extension[9] - Development strategies: project-driven, capital-driven, innovation-driven, with a focus on breaking into Hong Kong, Macau, and overseas markets[9] - Accelerate integrated operations, establish a contract logistics business unit, build a modern integrated logistics service platform, and deepen the integrated reform of cross-boundary water passenger transport business[10] - Intensify logistics business development, deeply cultivate Hong Kong airport engineering and Macau reclamation projects, vigorously develop MIC transport projects, strategically plan duty-free, e-commerce, and air freight logistics, and improve the "Belt and Road" network business layout[11] - Accelerate investment and construction of Sanbu New Port Terminal and Longtouzhai Terminal, continuously strengthen digital terminal construction, and explore expanding "Belt and Road" overseas markets through mergers and acquisitions[11] - Accelerate the transformation of cross-boundary passenger transport business, optimize route layouts, deeply integrate into the Hong Kong International Airport ecosystem, strive for more high-quality service projects, and create "cross-boundary transport + tourism" combined products[12] - Strengthen the depth of local business development, actively participate in municipal project bidding, vigorously develop Victoria Harbour tour projects, expand non-ticket revenue, orderly advance vessel renewal, and promote a "water + land" integrated fuel supply model[13] Unaudited Consolidated Financial Statements Unaudited Consolidated Income Statement For the six months ended June 30, 2025, the Group's turnover decreased by 5.3% to HK$1,315,108 thousand, and profit for the period significantly dropped by 54.5% to HK$32,532 thousand, primarily due to reduced gross profit and lower finance income Consolidated Income Statement Key Data (For the six months ended June 30) | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Turnover | 1,315,108 | 1,388,711 | -5.3% | | Cost of sales/services | (1,243,338) | (1,280,558) | -2.9% | | Gross profit | 71,770 | 108,153 | -33.6% | | Other income | 115,095 | 94,038 | 22.4% | | General and administrative expenses | (155,950) | (141,772) | 10.0% | | Profit from operations | 32,777 | 64,723 | -49.3% | | Finance income | 4,444 | 11,927 | -62.8% | | Finance costs | (9,179) | (12,867) | -28.6% | | Profit before income tax | 41,613 | 85,107 | -51.1% | | Income tax expense | (9,081) | (13,601) | -33.2% | | Profit for the period | 32,532 | 71,506 | -54.5% | | Profit attributable to equity holders of the Company | 26,662 | 67,115 | -60.3% | | Non-controlling interests | 5,870 | 4,391 | 33.7% | | Basic and diluted earnings per share (HK cents) | 2.38 | 5.99 | -60.3% | Unaudited Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the Group's total comprehensive income for the period was HK$70,122 thousand, a 31.3% increase from HK$53,391 thousand in the prior year, mainly due to a shift from loss to gain in currency translation differences Consolidated Comprehensive Income Statement Key Data (For the six months ended June 30) | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Profit for the period | 32,532 | 71,506 | -54.5% | | Currency translation differences – subsidiaries | 30,579 | (15,845) | N/A | | Currency translation differences – joint ventures and associates | 7,011 | (2,270) | N/A | | Other comprehensive income for the period, net of tax | 37,590 | (18,115) | N/A | | Total comprehensive income for the period | 70,122 | 53,391 | 31.3% | | Attributable to equity holders of the Company | 58,717 | 51,252 | 14.6% | | Non-controlling interests | 11,405 | 2,139 | 433.2% | Unaudited Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets increased to HK$5,750,991 thousand, and total liabilities rose to HK$2,126,025 thousand. The current ratio decreased from 1.5 to 1.3, the gearing ratio increased from 8.1% to 11.9%, and the debt ratio rose from 34.6% to 37.0%, indicating reduced liquidity and increased leverage Consolidated Statement of Financial Position Key Data (As of June 30) | Metric | 2025 June 30 (HK$ thousand) | 2024 Dec 31 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Assets | | | | | Non-current assets | 4,275,355 | 4,039,170 | 5.8% | | Current assets | 1,475,636 | 1,465,987 | 0.7% | | Total assets | 5,750,991 | 5,505,157 | 4.5% | | Equity | | | | | Total equity | 3,624,966 | 3,599,691 | 0.7% | | Liabilities | | | | | Non-current liabilities | 981,669 | 938,293 | 4.6% | | Current liabilities | 1,144,356 | 967,173 | 18.3% | | Total liabilities | 2,126,025 | 1,905,466 | 11.6% | | Net current assets | 331,280 | 498,814 | -33.6% | | Total assets less current liabilities | 4,606,635 | 4,537,984 | 1.5% | Liquidity and Capital Structure Metrics (As of June 30) | Metric | 2025 June 30 | 2024 Dec 31 | Change | | :--- | :--- | :--- | :--- | | Current ratio | 1.3 | 1.5 | Decrease | | Gearing ratio | 11.9% | 8.1% | Increase | | Debt ratio | 37.0% | 34.6% | Increase | Notes to the Financial Statements 1. Compliance Statement The comparative financial information in the interim financial report is extracted from the statutory annual consolidated financial statements for FY2024, filed in accordance with the Hong Kong Companies Ordinance and accompanied by an unqualified auditor's report - The statutory annual consolidated financial statements for the 2024 financial year were submitted to the Registrar of Companies in accordance with section 662(3) and Part 3 of Schedule 6 to the Hong Kong Companies Ordinance[23] - The Company's auditor issued an unqualified report on these financial statements[24] 2. Basis of Preparation The interim financial report is prepared in accordance with the applicable disclosure provisions of the Hong Kong Stock Exchange Listing Rules and HKAS 34 'Interim Financial Reporting,' using the same accounting policies as the 2024 annual financial statements, except for anticipated changes - The interim financial report is prepared in accordance with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, including compliance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants[25] - The interim financial report has been prepared in accordance with the same accounting policies adopted in the 2024 annual financial statements, except for changes in accounting policies expected to be reflected in the 2025 annual financial statements[25] 3. Changes in Accounting Policies The Group has applied amendments to HKAS 21 'The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability,' but these had no material impact on the interim financial report as the Group did not engage in non-exchangeable foreign currency transactions - The Group has applied the amendments to Hong Kong Accounting Standard 21 "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability"[26] - As the Group did not engage in any foreign currency transactions that are not exchangeable into other currencies, these amendments had no material impact on the interim financial report[26] 4. Segment Information The Group's operations are divided into five main segments: cargo transportation, cargo handling and warehousing, passenger transport, fuel supply, and corporate and other businesses. For the six months ended June 30, 2025, profit before tax significantly decreased in cargo transportation and passenger transport segments, while cargo handling and warehousing remained relatively stable - The Group's operating segments include: cargo transportation, cargo handling and warehousing, passenger transport, fuel supply, and corporate and other businesses[29] Segment Turnover and Profit Before Tax (For the six months ended June 30) | Segment | 2025 Turnover (HK$ thousand) | 2024 Turnover (HK$ thousand) | 2025 Profit Before Tax (HK$ thousand) | 2024 Profit Before Tax (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Cargo Transportation | 775,279 | 830,052 | 4,784 | 12,494 | | Cargo Handling and Warehousing | 188,329 | 177,994 | 15,784 | 27,076 | | Passenger Transport | 173,871 | 171,319 | 9,866 | 22,298 | | Fuel Supply | 166,827 | 201,154 | 2,000 | 4,738 | | Corporate and Other Businesses | 10,802 | 8,192 | 9,179 | 18,501 | | Total | 1,315,108 | 1,388,711 | 41,613 | 85,107 | 5. Trade and Other Receivables As of June 30, 2025, the Group's total trade receivables were HK$485,509 thousand, a 32.2% increase from HK$367,092 thousand on December 31, 2024, with the largest portion due within three months Trade Receivables Ageing Analysis (As of June 30) | Ageing | 2025 June 30 (HK$ thousand) | 2024 Dec 31 (HK$ thousand) | | :--- | :--- | :--- | | Within 3 months | 305,647 | 250,939 | | 4 to 6 months | 72,514 | 39,925 | | 7 to 12 months | 37,974 | 23,130 | | Over 12 months | 69,374 | 53,098 | | Total | 485,509 | 367,092 | | Less: Loss allowance | (18,098) | (10,516) | | Net | 467,411 | 356,576 | 6. Trade Payables, Accruals and Other Payables As of June 30, 2025, the Group's total trade payables were HK$265,069 thousand, a 9.9% increase from HK$240,946 thousand on December 31, 2024, primarily due within three months Trade Payables Ageing Analysis (As of June 30) | Ageing | 2025 June 30 (HK$ thousand) | 2024 Dec 31 (HK$ thousand) | | :--- | :--- | :--- | | Within 3 months | 222,206 | 226,052 | | 4 to 6 months | 30,082 | 8,116 | | 7 to 12 months | 9,157 | 1,633 | | Over 12 months | 3,624 | 5,145 | | Total | 265,069 | 240,946 | 7. Profit Before Income Tax For the six months ended June 30, 2025, the Group's total depreciation and amortization expenses were HK$96,598 thousand, a 31.7% increase from HK$73,348 thousand in the prior year, with a significant rise in depreciation of right-of-use assets. Staff costs also saw a slight increase Profit Before Income Tax Deductions (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Amortisation of land use rights | 5,114 | 6,769 | | Amortisation of intangible assets | 1,935 | 841 | | Depreciation of property, plant and equipment | 54,825 | 52,204 | | Depreciation of investment properties | 296 | 585 | | Depreciation of right-of-use assets | 34,428 | 12,949 | | Rental expenses for short-term leases – vessels and barges | 66,156 | 75,339 | | Rental expenses for short-term leases – buildings | 4,758 | 4,923 | | Staff costs (including directors' emoluments) | 288,852 | 282,487 | 8. Other Income – Net For the six months ended June 30, 2025, the Group's other income – net was HK$1,862 thousand, a 56.7% decrease from HK$4,304 thousand in the prior year, mainly due to reduced gain on deemed disposal of interest in a joint venture and a significant increase in impairment provision for trade receivables Other Income – Net (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Exchange gain, net | 651 | 683 | | Gain on deemed disposal of interest in a joint venture | 3,360 | 6,042 | | Gain on bargain purchase of a subsidiary | 5,052 | - | | Gain on disposal of property, plant and equipment | 381 | 1,570 | | Impairment provision for trade receivables | (7,582) | (991) | | Impairment loss on investment in an associate | - | (3,000) | | Total | 1,862 | 4,304 | 9. Income Tax Expense For the six months ended June 30, 2025, the Group's income tax expense was HK$9,081 thousand, a 33.2% decrease from HK$13,601 thousand in the prior year. Hong Kong, PRC, and Macau income taxes all decreased, and deferred income tax shifted from an expense to a credit - Hong Kong income tax is calculated at 16.5%, China corporate income tax at 25%, and Macau income tax at 12%[37] Income Tax Expense (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Current income tax – Hong Kong income tax | 349 | 3,744 | | Current income tax – China corporate income tax | 8,825 | 8,538 | | Current income tax – Macau income tax | 613 | 757 | | Deferred income tax (credit)/expense | (706) | 562 | | Total | 9,081 | 13,601 | 10. Dividends The Board declared an interim dividend of HK 1 cent per ordinary share for the year ending December 31, 2025, a reduction from HK 2 cents in 2024 - The Board declared an interim dividend of HK 1 cent per ordinary share for the year ending December 31, 2025 (2024: HK 2 cents)[40] 11. Earnings Per Share For the six months ended June 30, 2025, basic earnings per share were HK 2.38 cents, a significant 60.3% decrease from HK 5.99 cents in the prior year. Diluted earnings per share were the same as basic earnings per share due to the absence of potential dilutive ordinary shares Earnings Per Share (For the six months ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Profit attributable to equity holders of the Company (HK$ thousand) | 26,662 | 67,115 | | Weighted average number of ordinary shares in issue (thousand shares) | 1,121,167 | 1,121,167 | | Basic earnings per share (HK cents) | 2.38 | 5.99 | - As there were no potential dilutive ordinary shares in issue for the six months ended June 30, 2025 and 2024, the diluted earnings per share for these periods were equal to the basic earnings per share[42] Management Discussion and Analysis Overall Business Review In H1 2025, the Group's consolidated turnover decreased by 5.3%, and profit attributable to equity holders of the Company significantly dropped by 60.3%, primarily due to a deteriorating international trade environment, a sluggish Hong Kong shipping industry, a weak mainland real estate market, and passenger diversion from the opening of the Shenzhen-Zhongshan Link 2025 H1 Overall Financial Performance | Metric | 2025 H1 | 2024 H1 | Year-on-year Change | | :--- | :--- | :--- | :--- | | Consolidated Turnover | HK$1,315,108,000 | HK$1,388,711,000 | -5.3% | | Profit attributable to equity holders of the Company | HK$26,662,000 | HK$67,115,000 | -60.3% | - Repeated adjustments in international tariff policies, escalating geopolitical conflicts, a sluggish Hong Kong shipping industry, and a continuous downturn in China's mainland real estate market significantly impacted the Group's freight business[43] - The opening of the Shenzhen-Zhongshan Link improved the comprehensive multi-modal transportation in the Greater Bay Area, creating greater operational pressure on the Group's cross-boundary water passenger transport and related auxiliary businesses[43] Port, Shipping and Logistics Key Business Volumes (For the six months ended June 30) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Container transport volume (TEU) | 600,000 | 667,000 | -10.0% | | Bulk cargo transport volume (tons) | 145,000 | 614,000 | -76.4% | | Terminal container throughput (TEU) | 540,000 | 504,000 | 7.1% | | Terminal bulk cargo throughput (tons) | 4,348,000 | 4,234,000 | 2.7% | | Container land haulage volume (TEU) | 80,000 | 92,000 | -13.0% | Passenger Transport Business Volumes (For the six months ended June 30) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Total agency passenger volume (passengers) | 802,000 | 877,000 | -8.6% | | Total terminal service passenger volume (passengers) | 573,000 | 586,000 | -2.2% | | Local ferry passenger volume (passengers) | 5,743,000 | 5,751,000 | -0.1% | I. Port, Shipping and Logistics Business The Port, Shipping and Logistics business faced severe challenges in H1 2025, with a significant decline in cargo transport volume (especially bulk cargo), yet terminal throughput grew against the trend. Subsidiaries actively responded by strengthening collaboration, expanding new businesses, and optimizing cooperation models Cargo Transport Business Metrics (For the six months ended June 30) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Container transport volume (TEU) | 600,000 | 667,000 | -10.0% | | Bulk cargo transport volume (billing tons) | 145,000 | 614,000 | -76.4% | | Container land haulage volume (TEU) | 80,000 | 92,000 | -13.0% | - Pearl River Transit successfully advanced the Hong Kong University MIC project by forming a professional project team, leveraging resource advantages, and improving operational efficiency, also winning bids for several small and medium-sized transitional housing and resettlement projects, and expanding international transport services for new energy buses[47] Cargo Handling and Warehousing Business Metrics (For the six months ended June 30) | Metric | 2025 | 2024 (Restated) | Change | | :--- | :--- | :--- | :--- | | Container throughput (TEU) | 540,000 | 504,000 | 7.1% | | Bulk cargo throughput (billing tons) | 4,348,000 | 4,234,000 | 2.7% | - Zhaoqing area's container throughput increased by 26.7% year-on-year, and bulk cargo throughput increased by 6.1% year-on-year, primarily due to coordinated port development and expanded domestic trade market share[50] - Foshan area's bulk cargo throughput significantly increased by 72.7% year-on-year, with Gaoming Port successfully expanding multiple MIC transport projects and stone transport projects, and Beicun Terminal resuming rice import business and adding rice bran imports[51] - Qingyuan Port's container business grew significantly by 19.1%, mainly by strengthening cooperation with new freight forwarding companies and developing ceramic export business[52] - Zhongshan Huangpu Port's container throughput increased by 61.9% year-on-year, primarily by providing excellent service to key home appliance clients, ensuring supply, and conducting joint marketing[54] - Hong Kong area's container throughput slightly increased by 0.8%, and Pearl River Transit seized opportunities in the restructuring warehousing market to expand rebar and milk powder warehousing businesses, also becoming a primary agent for some airlines[55] - Among joint ventures and associates, Sanbu Port's bulk cargo throughput increased by 54.0% year-on-year, mainly by stabilizing existing grain bulk cargo sources and developing new ones[56] II. Passenger Transport Business Passenger transport business saw a decline in cross-boundary passenger volume due to the opening of the Shenzhen-Zhongshan Link and the relocation of Zhongshan Passenger Terminal, but local ferry services remained stable, and marine tourism business achieved substantial growth. The Group enhanced competitiveness through new media promotion, bundled products, and vessel upgrades Passenger Transport Business Metrics (For the six months ended June 30) | Metric | 2025 (thousand passengers) | 2024 (thousand passengers) | Change | | :--- | :--- | :--- | :--- | | Total agency passenger volume | 802 | 877 | -8.6% | | Total terminal service passenger volume | 573 | 586 | -2.2% | | Local ferry passenger volume | 5,743 | 5,751 | -0.1% | - Pearl River Passenger Transport's total agency passenger volume and terminal service passenger volume both decreased, but it resumed agency for the Zhuhai-Hong Kong China Ferry Terminal route and used new media to release promotional videos, launching "Cross-boundary Passenger Transport +" combined products with subsidiaries[59] - Local ferry business passenger volume slightly decreased by 0.1%, with New World First Ferry continuously strengthening digitalization, launching WeChat mini-program ticketing services, and orderly advancing vessel renewal[60] - In marine tourism, Oriental Pearl's cumulative passenger volume increased by 106.5% year-on-year, achieved through enhanced marketing, joint airline live streaming, and cooperation with popular Hong Kong attractions to promote tourism packages[60] - Hong Kong-Zhuhai-Macao Bridge Shuttle Bus business passenger volume increased by 4.3% year-on-year, benefiting from the recovery of air traffic at Hong Kong International Airport[61] III. Fuel Supply Business Fuel supply business experienced a decrease in diesel and lubricating oil sales due to adjustments in cross-boundary passenger transport routes, but lubricating oil agency transport volume significantly increased. Sun Kong Petroleum commissioned its newly built lubricating oil tanker 'Xin Hu' and acquired three diesel tankers to enhance market influence Fuel Supply Business Metrics (For the six months ended June 30) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Diesel sales volume | 42,000 tons | 47,000 tons | -10.6% | | Lubricating oil sales volume | 91,000 liters | 102,000 liters | -10.8% | | Lubricating oil agency transport volume | 5,950,000 liters | 4,890,000 liters | 21.7% | - Sun Kong Petroleum's newly built lubricating oil tanker "Xin Hu" was successfully commissioned, and efforts were intensified to develop the marine lubricating oil supply chain business, further increasing its market share in local Hong Kong[62] - Sun Kong Petroleum seized opportunities in the restructuring market landscape, completing the acquisition of three diesel tankers to further enhance its influence in the local Hong Kong market[62] IV. Corporate and Other Businesses Zhuhai-Macau Engineering Technology Co., Ltd. saw reduced revenue and profit compared to the prior year, mainly due to decreased workload from the Sands Group water supply pipeline project. Zhuhai-Macau Engineering will continue to leverage its technical advantages and actively explore new projects to enhance sustainable profitability - Zhuhai-Macau Engineering Technology Co., Ltd.'s revenue and profit for the period both decreased compared to the prior year, primarily due to a year-on-year reduction in workload for the Sands Group water supply pipeline project[63] - Zhuhai-Macau Engineering will continue to leverage its technical advantages, closely monitor bidding projects from various Macau government agencies and enterprises, and actively explore new long-term stable projects to enhance sustainable profitability[63] Liquidity, Financial Resources and Capital Structure As of June 30, 2025, the Group's current ratio was 1.3, down from 1.5 at year-end; the gearing ratio increased to 11.9%, and the debt ratio rose to 37.0%. Despite some deterioration in liquidity indicators, the Group maintains sufficient bank credit facilities and cash to meet future funding needs Liquidity and Capital Structure Metrics | Metric | 2025 June 30 | 2024 Dec 31 | | :--- | :--- | :--- | | Total bank credit facilities (HKD) | 1,335,000,000 | 1,185,000,000 | | Total bank credit facilities (RMB) | 507,949,000 (approx. HK$556,961,000) | 109,571,000 (approx. HK$118,327,000) | | Current ratio | 1.3 | 1.5 | | Cash and cash equivalents (HK$ thousand) | 764,173 | 845,459 | | Cash as % of total assets | 13.3% | 15.4% | | Gearing ratio | 11.9% | 8.1% | | Debt ratio | 37.0% | 34.6% | - The Group has sufficient funds to meet its future business operations, expansion, and general development needs, including current cash holdings, cash generated from operations, and available bank credit facilities[66] - During the period, the Group did not use any other financial instruments for hedging purposes[67] Bank Borrowings and Pledged Assets As of June 30, 2025, the Group's bank borrowings in Hong Kong included unsecured HKD and fixed-rate RMB loans. Bank borrowings in mainland China were floating-rate, with some secured by land use rights, investment properties, and property, plant and equipment Bank Borrowings (As of June 30) | Bank Location | Currency | Collateral Status | 2025 June 30 (HK$ thousand) | 2024 Dec 31 (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Hong Kong | HKD | Unsecured | 200,000 | 200,000 | | Hong Kong | RMB | Unsecured | 164,475 | - | | Mainland China | RMB | Secured | 120,402 | 118,327 | | Mainland China | RMB | Unsecured | 5,483 | - | - HKD bank borrowings in Hong Kong are floating-rate and unsecured; RMB bank borrowings are fixed-rate and unsecured[71] - Bank borrowings in mainland China are floating-rate, with some secured by the Group's land use rights, investment properties, and property, plant and equipment; the remainder are unsecured[71] Currency Structure The Group's cash and cash equivalents are primarily held in HKD, RMB, and USD, with small amounts in MOP and EUR, deposited with various reputable banks - The Group's cash and cash equivalents are primarily held in Hong Kong Dollars, Renminbi, and US Dollars, with small amounts in Macau Pataca and Euros, deposited with various reputable banks[69] Capital Commitments As of June 30, 2025, the Group's outstanding capital commitments were HK$251,434 thousand, a significant decrease from HK$501,178 thousand at year-end. The Group has sufficient financial resources to meet these commitments Capital Commitments (As of June 30) | Metric | 2025 June 30 (HK$ thousand) | 2024 Dec 31 (HK$ thousand) | | :--- | :--- | :--- | | Outstanding capital commitments | 251,434 | 501,178 | - The Group has sufficient financial resources, including existing cash and cash equivalents, cash generated from operations, and available bank credit facilities, to meet capital commitment expenditures[70] Significant Acquisitions and Disposals of Subsidiaries, Joint Ventures and Associates The Group entered an agreement with Baowu Group Zhongnan Iron & Steel Co., Ltd. to establish Shaoguan Zhongnan Port & Shipping Co., Ltd., investing RMB166,600,000 for a 49% equity stake, with Shaoguan Zhongnan recognized as an associate. No other significant acquisitions or disposals occurred during the period - The Group entered into an agreement with Baowu Group Zhongnan Iron & Steel Co., Ltd. to establish Shaoguan Zhongnan Port & Shipping Co., Ltd., with a registered capital of RMB340,000,000[72] - The Group invested RMB166,600,000 for a 49% equity stake in Shaoguan Zhongnan, which is recognized as an associate of the Group[72] - For the six months ended June 30, 2025, the Group did not undertake any other significant acquisitions or disposals of subsidiaries, joint ventures, or associates[73] Material Investments Except for the disclosed investment in Shaoguan Zhongnan Port & Shipping Co., Ltd., the Group held no other material investments for the six months ended June 30, 2025 - Except as disclosed in this announcement, the Group held no other material investments for the six months ended June 30, 2025[74] Contingent Liabilities As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[75] Foreign Exchange Risk The Group's operations and investments are concentrated in Guangdong-Hong Kong-Macau, with revenue and expenses primarily in HKD, supplemented by RMB and USD. Given the stable Hong Kong Linked Exchange Rate System, the Group does not anticipate significant short-term foreign exchange risk - The Group's daily operations and investment activities are concentrated in Guangdong-Hong Kong-Macau, with revenue and expenses primarily in Hong Kong Dollars, supplemented by Renminbi and US Dollars[76] - Given the stable Hong Kong Linked Exchange Rate System, the Group will not bear significant foreign exchange risk in the short term[76] Purchase, Redemption or Sale of the Company's Listed Securities During the period, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities - During the period, neither the Company nor any of its subsidiaries purchased or sold any of the Company's listed securities[77] - The Company did not redeem any of its shares[77] Other Information Adoption of the Model Code for Securities Transactions by Directors The Company has adopted a standard of conduct for directors' securities transactions no less exacting than the Model Code set out in Appendix C3 of the Listing Rules, and all directors have complied with it throughout the reporting period - The Company has adopted a standard of conduct for directors' securities transactions no less exacting than the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules[78] - All directors of the Company have complied with the relevant code of conduct throughout the accounting period covered by the 2025 interim report[78] Publication of Interim Report on the HKEX Website The Company's interim report for the six months ended June 30, 2025, will be published later on the HKEX website and the Company's website - The Company's interim report for the six months ended June 30, 2025, will be published later on the HKEX website (www.hkexnews.hk) and the Company's website (www.cksd.com)[79](index=79&type=chunk) Interim Dividend The Board declared an interim dividend of HK 1 cent per ordinary share for the year ending December 31, 2025, totaling approximately HK$11,212,000, payable in cash to shareholders registered on September 26, 2025 - The Board declared an interim dividend of HK 1 cent per ordinary share for the year ending December 31, 2025 (2024: HK 2 cents), totaling approximately HK$11,212,000[80] - The interim dividend is expected to be paid in cash to shareholders whose names appear on the register of members on Friday, September 26, 2025[80] Closure of Register of Members To qualify for the interim dividend, the Company will close its register of members from September 23 to September 26, 2025. Shareholders must lodge all transfer documents with the share registrar by 4:30 p.m. on September 22, 2025 - The Company will close its register of members from Tuesday, September 23, 2025, to Friday, September 26, 2025 (both days inclusive)[81] - To qualify for the interim dividend, all transfer documents, together with the relevant share certificates, must be lodged with the Company's share registrar, Tricor Investor Services Limited, for registration by 4:30 p.m. (Hong Kong time) on Monday, September 22, 2025[81] Review by Audit Committee The Company's Audit Committee has reviewed the unaudited consolidated interim financial information for the six months ended June 30, 2025. The report was prepared in accordance with HKAS 34 and reviewed by the Company's independent external auditor, KPMG - The Company's Audit Committee has reviewed the unaudited consolidated interim financial information of the Group for the six months ended June 30, 2025[82] - The interim financial report was prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and reviewed by the Company's independent external auditor, KPMG, in accordance with Hong Kong Standard on Review Engagements 2410[82] Corporate Governance The Company's directors have adopted and complied with policies ensuring adherence to the Corporate Governance Code in Appendix C1 of the Listing Rules throughout the reporting period. Independent Non-executive Directors Mr. Chan Ki-cheong and Ms. Yau Lai-man, having served over nine years, were re-appointed via independent shareholder resolution after their independence was confirmed - The Company's directors have adopted various policies to ensure compliance with the Corporate Governance Code set out in Appendix C1 of the Listing Rules and have complied with it throughout the reporting period[83] - Independent Non-executive Directors Mr. Chan Ki-cheong and Ms. Yau Lai-man, having served for more than nine years, were re-appointed through independent shareholder resolutions after their independence was confirmed following assessment and review by the Nomination Committee[84][85] Directors Mr. Tang Yee-ha was appointed as an independent non-executive director for Bamboos Health Care Holdings Limited and JD Logistics, Inc. in August 2025. As of the announcement date, the Board comprises Executive Directors Mr. Liu Guanghui, Mr. Zhou Jun, and Mr. Liu Wuwei; Non-executive Director Ms. Zhong Yan; and Independent Non-executive Directors Mr. Chan Ki-cheong, Ms. Yau Lai-man, Mr. Chan Chung-nin, and Mr. Tang Yee-ha - Mr. Tang Yee-ha was appointed as an independent non-executive director of Bamboos Health Care Holdings Limited on August 1, 2025, for a term of two years[86] - Mr. Tang Yee-ha was appointed as an independent non-executive director of JD Logistics, Inc. on August 14, 2025, for a term of three years[86] - As of the announcement date, the Executive Directors are Mr. Liu Guanghui, Mr. Zhou Jun, and Mr. Liu Wuwei; the Non-executive Director is Ms. Zhong Yan; and the Independent Non-executive Directors are Mr. Chan Ki-cheong, Ms. Yau Lai-man, Mr. Chan Chung-nin, and Mr. Tang Yee-ha[86]