澳能建设(01183) - 2025 - 中期业绩

Financial Highlights Aoneng Construction Holdings Limited's unaudited condensed consolidated results for the six months ended June 30, 2025, show significant growth in revenue, gross profit, and net profit, primarily driven by increased gross profit contributions from the construction and smart manufacturing businesses, despite a slight decrease in outstanding contract value, overall financial performance is strong Financial Highlights for H1 2025 | Metric | June 30, 2025 (million MOP) | June 30, 2024 (million MOP) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 803.2 | 746.2 | +7.6% | | Gross Profit | 71.9 | 47.5 | +51.5% | | Net Profit | 20.4 | 8.0 | +155.3% | | Construction Business Outstanding Contract Value | 595.3 | 682.1 (Dec 31, 2024) | -12.7% | | Smart Manufacturing Business Outstanding Contract Value | 567.0 | 618.1 (Dec 31, 2024) | -8.3% | Condensed Consolidated Financial Statements The condensed consolidated financial statements provide a detailed overview of the Group's financial performance and position for the period Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the Group's revenue increased by 7.6% year-on-year, gross profit surged by 51.5%, and profit for the period soared by 155.3%, driven by increased other income and gains, and reduced finance costs Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Metric | 2025 (thousand MOP) | 2024 (thousand MOP) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 803,167 | 746,164 | +7.6% | | Cost of Goods and Services | (731,248) | (698,687) | +4.7% | | Gross Profit | 71,919 | 47,477 | +51.5% | | Other Income | 8,581 | 1,343 | +538.9% | | Other Gains and Losses | 4,169 | 1,792 | +132.7% | | Distribution Costs | (15,098) | (12,002) | +25.8% | | Net Impairment Losses | (2,631) | 6,153 | -142.8% | | Administrative Expenses | (37,813) | (35,108) | +7.7% | | Finance Costs | (4,444) | (5,388) | -17.5% | | Profit Before Tax | 24,689 | 9,598 | +157.2% | | Income Tax Expense | (4,311) | (1,616) | +166.8% | | Profit for the Period | 20,378 | 7,982 | +155.3% | | Total Comprehensive Income for the Period | 28,232 | 1,522 | +1754.9% | | Basic Earnings Per Share (MOP cents) | 0.40 | 0.17 | +135.3% | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's net assets and total equity increased, with net current assets remaining robust, while a significant rise in cash and cash equivalents and a reduction in bank borrowings indicate improved liquidity and lower financial leverage Condensed Consolidated Statement of Financial Position (As of June 30) | Metric | 2025 (thousand MOP) | Dec 31, 2024 (thousand MOP) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current Assets | 341,866 | 346,808 | -1.4% | | Current Assets | 815,497 | 792,296 | +2.9% | | Current Liabilities | 573,506 | 563,170 | +1.8% | | Net Current Assets | 241,991 | 229,126 | +5.6% | | Total Assets Less Current Liabilities | 583,857 | 575,934 | +1.4% | | Non-current Liabilities | 73,848 | 94,019 | -21.5% | | Net Assets | 510,009 | 481,915 | +5.8% | | Total Equity | 510,009 | 481,915 | +5.8% | | Cash and Cash Equivalents | 116,632 | 61,315 | +90.2% | | Bank Borrowings (Current + Non-current) | 240,507 | 257,697 | -6.7% | Notes These notes provide detailed explanations and disclosures regarding the accounting policies, financial performance, and position presented in the financial statements Basis of Preparation The condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' and the disclosure requirements of the HKEX Listing Rules - The financial statements are prepared in compliance with International Accounting Standard 34 'Interim Financial Reporting' and the HKEX Listing Rules[6] Significant Accounting Policies The condensed consolidated financial statements are primarily prepared on a historical cost basis, adopting the same accounting policies and methods of computation as presented in the consolidated financial statements for the year ended December 31, 2024 - The financial statements are prepared on a historical cost basis, with accounting policies consistent with the 2024 annual consolidated financial statements[7] Application of Amendments to International Financial Reporting Standards International Accounting Standard 21 (Amendment) 'Lack of Exchangeability' was first applied in this interim period, with no significant impact on the Group's financial position or performance - International Accounting Standard 21 (Amendment) 'Lack of Exchangeability' was first applied, with no significant impact on financial position or performance[8] Revenue and Segment Information The Group's operating segments include construction, electric vehicle, and smart manufacturing businesses, with smart manufacturing remaining the primary revenue source, though construction revenue grew significantly, the Group operates across Macau, China, Hong Kong, Singapore, and Cyprus, with Macau as the largest market and notable growth in Hong Kong and Singapore Operating Segments The Group is segmented into construction, electric vehicle, and smart manufacturing businesses (formerly steel structure business) in accordance with IFRS 8 'Operating Segments' - The Group's operating segments include: Construction Business (construction and renovation, high-voltage substations, E&M engineering, facility management), Electric Vehicle Business (charging services, distribution, design and production, battery pack manufacturing, charging/swapping solutions), and Smart Manufacturing Business (sales and processing of new building materials, steel structure leasing)[9][10] Total Revenue from Customer Contracts (For the six months ended June 30) | Business Segment | 2025 (thousand MOP) | 2024 (thousand MOP) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Construction Business | 273,157 | 189,846 | +43.9% | | Electric Vehicle Business | 332 | 1,452 | -77.1% | | Smart Manufacturing Business | 529,678 | 554,866 | -4.5% | | Steel Structure Leasing Income | 11,756 | – | N/A | | Total Revenue | 803,167 | 746,164 | +7.6% | Segment Results Profit before tax for the construction and smart manufacturing businesses grew significantly, while the electric vehicle business continued to incur losses, central administrative expenses remained stable, and the share of results of associates contributed minimally to overall profit Segment Results (For the six months ended June 30) | Segment | 2025 (thousand MOP) | 2024 (thousand MOP) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Construction Business | 16,014 | 3,203 | +399.9% | | Electric Vehicle Business | (182) | (1,690) | +89.2% (Loss narrowed) | | Smart Manufacturing Business | 10,245 | 3,734 | +174.4% | | Total Segment Results | 26,077 | 5,247 | +397.0% | | Central Administrative Expenses | (1,394) | (1,454) | -4.1% | | Share of Results of Associates | 6 | 7,213 | -99.9% | | Impairment Loss on an Associate | – | (1,408) | N/A | | Profit Before Tax | 24,689 | 9,598 | +157.2% | Geographical Information Macau remains the Group's largest revenue source, but revenue contributions from China, Hong Kong, and Singapore markets grew significantly, demonstrating effective market expansion strategies, with non-current assets primarily concentrated in China and Macau Revenue from External Customers (For the six months ended June 30) | Region | 2025 (thousand MOP) | 2024 (thousand MOP) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Macau | 500,933 | 587,798 | -14.8% | | China | 98,942 | 60,692 | +63.0% | | Hong Kong | 164,592 | 81,187 | +102.7% | | Singapore | 20,899 | 1,986 | +952.3% | | Cyprus | 17,801 | 14,501 | +22.8% | | Total | 803,167 | 746,164 | +7.6% | Non-current Assets (As of June 30) | Region | 2025 (thousand MOP) | Dec 31, 2024 (thousand MOP) | Change (%) | | :--- | :--- | :--- | :--- | | Macau | 88,664 | 97,048 | -8.6% | | China | 252,464 | 248,921 | +1.4% | | Hong Kong | – | – | N/A | | Singapore | – | – | N/A | | Cyprus | 738 | 839 | -12.1% | | Total | 341,866 | 346,808 | -1.4% | Income Tax Expense Income tax expense for the period significantly increased by 166.8%, primarily due to higher gross profit, with the Group subject to varying tax rates across jurisdictions and holding unutilized tax losses for which no deferred tax assets are recognized Income Tax Expense (For the six months ended June 30) | Tax Category | 2025 (thousand MOP) | 2024 (thousand MOP) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Current Tax | 3,500 | 2,645 | +32.3% | | Under-provision (Over-provision) in Prior Years | 811 | (1,029) | -178.8% | | Total Income Tax Expense | 4,311 | 1,616 | +166.8% | - Macau subsidiaries are subject to a tax rate of 12% (for assessable profits exceeding MOP 600,000), China subsidiaries to 25%, Cyprus subsidiaries to 12.5%, Hong Kong subsidiaries to 8.25% (first HKD 2 million) / 16.5% (above), and Singapore subsidiaries to 17%[16][17][18] - As of June 30, 2025, the Group had unutilized tax losses of MOP 44,473 thousand (December 31, 2024: MOP 40,189 thousand), for which no deferred tax assets were recognized[18] Earnings Per Share For the six months ended June 30, 2025, basic and diluted earnings per share attributable to owners of the Company were 0.40 MOP cents, representing a significant increase from the prior period Earnings Per Share (For the six months ended June 30) | Metric | June 30, 2025 | June 30, 2024 | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Profit for the Period Attributable to Owners of the Company (thousand MOP) | 15,867 | 6,949 | +128.3% | | Weighted Average Number of Ordinary Shares (thousand shares) | 3,980,817 | 3,986,007 | -0.1% | | Basic Earnings Per Share (MOP cents) | 0.40 | 0.17 | +135.3% | | Diluted Earnings Per Share (MOP cents) | 0.40 | 0.17 | +135.3% | - For the six months ended June 30, 2025, there were no bonus warrants issued or outstanding[19] Contract Assets The Group's contract assets, primarily comprising unbilled revenue and retention receivables, decreased in total, with the aging analysis of retention money indicating that most will be due after one year, and some overdue retention money is still considered recoverable Contract Assets (As of June 30) | Metric | 2025 (thousand MOP) | Dec 31, 2024 (thousand MOP) | Change (%) | | :--- | :--- | :--- | :--- | | Contract Assets from Customer Contracts | 59,479 | 67,581 | -11.9% | | Less: Provision for Credit Losses | (5,101) | (5,516) | -7.5% | | Total Contract Assets | 54,378 | 62,065 | -12.4% | | Unbilled Revenue | 14,035 | 21,125 | -33.6% | | Retention Receivables | 40,343 | 40,940 | -1.5% | Aging Analysis of Retention Receivables (As of June 30) | Aging | 2025 (thousand MOP) | Dec 31, 2024 (thousand MOP) | | :--- | :--- | :--- | | Within 1 year | 11,811 | 12,810 | | After 1 year | 28,532 | 28,130 | | Total | 40,343 | 40,940 | - As of June 30, 2025, retention receivables with a carrying amount of MOP 11,194 thousand were overdue but not impaired, as there was no significant change in credit quality[23] Trade and Other Receivables Total trade and other receivables decreased, with a reduction in trade receivables from customer contracts, while the Group grants credit terms of 0 to 90 days, and some overdue receivables are still considered recoverable Trade and Other Receivables (As of June 30) | Metric | 2025 (thousand MOP) | Dec 31, 2024 (thousand MOP) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Receivables from Customer Contracts | 318,930 | 401,582 | -20.6% | | Less: Provision for Credit Losses | (31,945) | (29,413) | +8.6% | | Net Trade Receivables | 286,985 | 372,169 | -22.8% | | Other Receivables, Deposits and Prepayments | 168,633 | 160,295 | +5.2% | | Less: Provision for Credit Losses | (814) | (651) | +25.0% | | Total Trade and Other Receivables | 454,804 | 531,813 | -14.5% | Aging Analysis of Trade Receivables (As of June 30) | Aging | 2025 (thousand MOP) | Dec 31, 2024 (thousand MOP) | | :--- | :--- | :--- | | 0 to 90 days | 187,572 | 270,702 | | 91 to 365 days | 80,154 | 72,765 | | 1 to 2 years | 13,954 | 21,178 | | Over 2 years | 5,305 | 7,524 | | Total | 286,985 | 372,169 | - As of June 30, 2025, trade receivables of MOP 147,640 thousand were overdue, of which MOP 63,600 thousand were overdue for more than 90 days but not considered in default[24] Amounts Due from an Associate Amounts due from an associate (trade nature) decreased, but some overdue amounts are still considered recoverable Aging Analysis of Amounts Due from an Associate (Trade Nature) (As of June 30) | Aging | 2025 (thousand MOP) | Dec 31, 2024 (thousand MOP) | | :--- | :--- | :--- | | 0 to 90 days | – | 1,117 | | 91 to 365 days | 1,130 | – | | Total | 1,130 | 1,117 | - As of June 30, 2025, amounts due from an associate of MOP 1,130 thousand were overdue but not impaired[26] Trade Payables and Accruals Total trade payables and accruals slightly decreased, with trade payables having credit terms of 0 to 90 days, and most retention payables expected to be settled within one year Trade Payables and Accruals (As of June 30) | Metric | 2025 (thousand MOP) | Dec 31, 2024 (thousand MOP) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Payables | 155,159 | 172,627 | -10.2% | | Retention Payables | 22,438 | 24,338 | -7.8% | | Bills Payable | 6,733 | 963 | +599.2% | | Other Payables and Accruals | 115,303 | 112,677 | +2.3% | | Total | 299,683 | 310,605 | -3.5% | Aging Analysis of Trade Payables (As of June 30) | Aging | 2025 (thousand MOP) | Dec 31, 2024 (thousand MOP) | | :--- | :--- | :--- | | 0 to 90 days | 116,029 | 132,378 | | 91 to 365 days | 38,606 | 37,507 | | 1 to 2 years | 122 | 2,692 | | Over 2 years | 402 | 50 | | Total | 155,159 | 172,627 | Aging Analysis of Retention Payables (As of June 30) | Aging | 2025 (thousand MOP) | Dec 31, 2024 (thousand MOP) | | :--- | :--- | :--- | | On demand or within 1 year | 18,381 | 21,077 | | After 1 year | 4,057 | 3,261 | | Total | 22,438 | 24,338 | Dividends The Board did not declare an interim dividend for the six months ended June 30, 2025 - The Board did not declare dividends for either period[32] Company Profile Aoneng Construction Holdings Limited is an integrated construction enterprise operating across Macau, Hong Kong, Singapore, and Australia, primarily engaged in smart manufacturing, construction, and electric vehicle-related services, focusing on complex construction projects, substations, and steel structure engineering - The Group's business scope includes: Smart Manufacturing Business (R&D and sales of new building materials, production and sales of smart machinery), Construction Business (construction and renovation, high-voltage substations, E&M engineering, facility management and operations), and Electric Vehicle-related services[33][34][35][36] - Business operations cover high-potential growth regions including Macau, Hong Kong, Singapore, and Australia[33] Business Review and Analysis This section provides an in-depth review and analysis of the Group's operational performance, market environment, and strategic initiatives across its key business segments Macroeconomic and Market Environment Increased global economic uncertainty is offset by growth opportunities from AI technology innovation and government smart strategies in smart machinery R&D and regional construction, with Macau, Hong Kong, and Singapore markets showing positive growth signals, particularly in infrastructure and emerging industries - Global economic uncertainty is increasing, but AI technology innovation and smart strategies present growth opportunities[37] - Macau's GDP increased by 1.8% year-on-year, with tourist arrivals up 14.9%, actively promoting economic diversification focusing on modern finance, data centers, and technological innovation, and launching several large-scale infrastructure projects[37] - Hong Kong's GDP is projected to grow by 3.1% in Q2 2025, with the budget emphasizing infrastructure development, particularly the 'Northern Metropolis', driving smart infrastructure[38] - Singapore's GDP grew by 4.2% in H1 2025, with public sector initiatives driving social construction and a recovery in the construction industry, alongside increased manufacturing output[38] Overall Financial Performance The Group's overall revenue grew by 7.6% to MOP 803.2 million, gross profit surged by 51.5% to MOP 71.9 million, and gross margin improved to 9.0%, while net profit increased by 155.3% to MOP 20.4 million, with net profit margin improving to 2.5%, and Hong Kong market revenue doubling, alongside rapid growth in Singapore Overall Financial Performance (For the six months ended June 30) | Metric | 2025 (million MOP) | 2024 (million MOP) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 803.2 | 746.2 | +7.6% | | Gross Profit | 71.9 | 47.5 | +51.5% | | Gross Profit Margin | 9.0% | 6.4% | +2.6 percentage points | | Net Profit | 20.4 | 8.0 | +155.3% | | Net Profit Margin | 2.5% | 1.1% | +1.4 percentage points | - Hong Kong market revenue contribution more than doubled from the previous period, becoming the second-largest market; Singapore market contribution grew from 0.4% to 3.9%[39] - Outstanding contract values for the construction business and smart manufacturing business were MOP 595.3 million and MOP 567.0 million, respectively[39] Smart Manufacturing Business The smart manufacturing business contributed 65.9% of total revenue, with gross profit and gross margin increasing despite a slight revenue decrease due to lower sales volume, as the Group actively expands into high-value new building materials and smart machinery manufacturing, and has strategically partnered with Beijing Institute of Architectural Mechanization to produce smart window cleaning equipment - The smart manufacturing business contributed 65.9% of total revenue, delivering approximately 102,180 tons of new building materials orders[40] - The gross profit margin for the smart manufacturing business improved to 8.8% (previous period: 5.4%), primarily due to higher gross profit margins from sales orders in Hong Kong and Singapore[40][48] - A strategic partnership with Beijing Institute of Architectural Mechanization was established to jointly research, develop, and promote green energy, new materials, and complete sets of smart equipment, with smart window cleaning equipment already in production[41] - The Jiangmen production plant in Guangdong increased capacity, participating in major infrastructure projects such as the Hong Kong Northern Metropolis, Macau New Urban Zone reclamation project, and Singapore intercity rail[41] Construction Business Construction business revenue significantly increased by 43.9% year-on-year, primarily due to the completion and delivery of key milestones for major projects, including civil construction works for the Macau Government Data Center and Ma Kok Substation, with the Group successfully undertaking a series of large-scale construction and renovation, E&M engineering, and facility management service contracts - Construction business revenue increased significantly by approximately 43.9% compared to the same period in 2024[42] - Key projects include the Macau Government Data Center renovation project and equipment procurement services, and casino renovation and improvement projects, with new project contracts totaling approximately MOP 158.6 million[42] - The construction business maintained a stable gross profit margin with sufficient outstanding contracts, and several key projects are expected to advance in the second half of the year[42] Electric Vehicle Business The electric vehicle business continues to provide EV charging services to various high-end integrated entertainment and resorts, premium residential areas, and commercial buildings, diversifying the Group's revenue, while the Group explores the market and seeks strategic collaborations with industry leaders to optimize its business layout - Indirect wholly-owned subsidiary Free Charge (Macau) Limited continues to provide electric vehicle charging services to multiple high-end venues[43] - The Group is exploring the market and strategic collaborations with industry-leading enterprises to optimize its electric vehicle business layout[43] Revenue Analysis The Group's total revenue increased by 7.6%, with construction business revenue surging by 43.9%, primarily driven by certified progress in the Ma Kok Substation civil construction and Macau Government Data Center construction projects, while smart manufacturing business revenue decreased by 4.5% due to lower sales volume Revenue Breakdown (For the six months ended June 30) | Business Segment | 2025 (thousand MOP) | Proportion (%) | 2024 (thousand MOP) | Proportion (%) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Construction Business | 273,157 | 34.0 | 189,846 | 25.4 | +43.9% | | Electric Vehicle Business | 332 | 0.1 | 1,452 | 0.2 | -77.1% | | Smart Manufacturing Business | 529,678 | 65.9 | 554,866 | 74.4 | -4.5% | | Total | 803,167 | 100.0 | 746,164 | 100.0 | +7.6% | - Construction business revenue increased by MOP 83.3 million, primarily due to certified progress in the Macau Ma Kok Substation civil construction project (MOP 49.1 million) and the Macau Government Data Center construction project (MOP 44.8 million)[46][49] - Smart manufacturing business revenue decreased by MOP 25.2 million, mainly due to lower sales volume of new building materials[45] Gross Profit Analysis The Group's total gross profit increased by 51.5%, with gross profit margin improving from 6.4% to 9.0%, driven by significant improvement in smart manufacturing gross margin due to high-margin orders in Hong Kong and Singapore, while construction and renovation engineering gross loss margin narrowed, facility management services gross margin declined, and the electric vehicle business continued to incur gross losses Gross Profit and Gross Profit Margin Breakdown (For the six months ended June 30) | Business Segment | 2025 Gross Profit (thousand MOP) | 2025 Gross Profit Margin (%) | 2024 Gross Profit (thousand MOP) | 2024 Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Construction and Renovation Engineering | (6,077) | (7.1) | (10,273) | (16.0) | | High-voltage Substation Construction and System Installation Engineering | 3,467 | 6.8 | 140 | 1.5 | | E&M Engineering Services | 507 | 4.4 | 152 | 0.4 | | Facility Management Services | 27,643 | 22.1 | 28,323 | 34.5 | | Total Construction Business | 25,540 | 9.3 | 18,342 | 9.7 | | Electric Vehicle Business | (33) | (10.1) | (1,008) | (69.4) | | Smart Manufacturing Business | 46,412 | 8.8 | 30,143 | 5.4 | | Total | 71,919 | 9.0 | 47,477 | 6.4 | - Smart manufacturing business gross profit margin improved from 5.4% to 8.8%, primarily due to higher gross profit margins obtained from sales orders in Hong Kong and Singapore[48] - Construction and renovation engineering gross loss margin improved from 16.0% to 7.1%, but facility management services gross profit margin decreased from 34.5% to 22.1%, mainly due to inflation and reduced service scope by casino operators[50] - The electric vehicle business recorded a gross loss of MOP 33 thousand due to continuous investment to expand market share[50] Other Income Other income for the period increased by MOP 7.2 million, primarily due to the recognition of MOP 5.8 million in insurance claims - Other income increased by MOP 7.2 million, mainly from MOP 5.8 million in insurance claims[51] Other Gains and Losses Other gains and losses increased by MOP 2.4 million during the period, primarily due to exchange gains from China operations - Other gains and losses increased by MOP 2.4 million, mainly from exchange gains of MOP 4.2 million from China operations[52] Distribution Costs Distribution costs for the period increased to MOP 14.0 million, primarily due to higher transportation costs from selling new building materials - Distribution costs increased to MOP 14.0 million (previous period: MOP 10.6 million), mainly due to transportation costs for new building materials[53] Impairment Losses Reversal (Recognition) under Expected Credit Loss Model Impairment losses of MOP 2.6 million were recognized in the current period, while MOP 6.2 million in impairment losses were reversed in the prior period, primarily due to customer recoveries - Impairment losses of MOP 2.6 million were recognized on trade receivables, amounts due from an associate, contract assets, and other receivables in the current period[54] - Impairment losses of MOP 6.2 million were reversed in the prior period, mainly due to recoveries from customers[54] Administrative Expenses Administrative expenses increased by 7.7%, primarily due to higher salaries, staff costs, and depreciation resulting from the expansion of China's production facilities - Administrative expenses increased by MOP 2.7 million or 7.7%, mainly due to higher salaries, staff costs, and depreciation from the expansion of China's production facilities[55] Finance Costs Finance costs decreased by 17.5%, primarily due to a reduction in bank borrowings during the period - Finance costs decreased by MOP 0.9 million or 17.5%, mainly due to a reduction in bank borrowings[56] Income Tax Expense Income tax expense increased by 166.8%, primarily due to higher gross profit during the period - Income tax expense increased by MOP 2.7 million or 166.8%, mainly due to higher gross profit[57] Profit for the Period Profit for the period increased by 155.3%, with the net profit margin improving from 1.1% to 2.5%, reflecting the combined positive impact of the aforementioned factors - Profit for the period increased by MOP 12.4 million or 155.3%, with the net profit margin improving from 1.1% to 2.5%[58] Liquidity and Financial Resources The Group adopts a prudent cash management approach, maintaining robust net current assets and current ratio, with a significant increase in cash and bank balances, reduced bank borrowings, and a lower gearing ratio, indicating a healthy financial position Liquidity and Financial Resources (As of June 30) | Metric | 2025 (million MOP) | Dec 31, 2024 (million MOP) | Change (%) | | :--- | :--- | :--- | :--- | | Net Current Assets | 242.0 | 229.1 | +5.6% | | Current Ratio | 1.4 times | 1.4 times | 0.0% | | Total Cash and Bank Balances | 116.6 | 61.3 | +90.2% | | Outstanding Bank Borrowings | 240.5 | 257.7 | -6.7% | | Unutilized Credit Facilities | 132.5 | 121.6 | +8.9% | | Gearing Ratio | 47.2% | 53.5% | -6.3 percentage points | Capital Structure As of June 30, 2025, the Company's share capital and total equity both increased Capital Structure (As of June 30) | Metric | 2025 (million MOP) | Dec 31, 2024 (million MOP) | Change (%) | | :--- | :--- | :--- | :--- | | Share Capital | 41.0 | 41.0 | 0.0% | | Total Equity | 510.0 | 481.9 | +5.8% | Currency Risk The Group primarily faces currency risk from RMB-denominated purchases and HKD-denominated sales, which management will continue to monitor and manage - Major currency risks arise from steel material purchases denominated in RMB and sales denominated in HKD[61] Material Investments, Acquisitions or Disposals and Future Plans During the period, the Group did not undertake any material investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures, nor does it have future plans for other material investments or capital assets - No material investments, acquisitions, or disposals occurred during the period, nor are there future plans for other material investments or capital assets[62] Pledge of Assets As of June 30, 2025, the Group has pledged bank deposits and property, plant and equipment as collateral for credit facilities Pledge of Assets (As of June 30) | Pledged Assets | 2025 (million MOP) | Dec 31, 2024 (million MOP) | | :--- | :--- | :--- | | Bank Deposits | 45.3 | 27.9 | | Property, Plant and Equipment (including right-of-use assets) | 258.1 | 258.9 | 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[64] Commitments As of June 30, 2025, the Group had no material capital commitments - As of June 30, 2025, the Group had no material capital commitments (December 31, 2024: MOP 4,530 thousand)[65] Employees and Remuneration Policy As of June 30, 2025, the Group's employee count increased to 507, with remuneration packages including salaries, allowances, benefits, and bonuses determined by performance, qualifications, position, and industry practice, and no share options were granted or exercised under the share option scheme during the period - As of June 30, 2025, the Group had 507 employees (December 31, 2024: 405 employees)[66] - Employee remuneration packages include salaries, allowances, benefits in kind, and bonuses, determined based on performance, qualifications, position, and industry practice[66] - No share options were granted, agreed to be granted, exercised, cancelled, or lapsed under the share option scheme during the period[66] Outlook The Group will seize market opportunities from new quality productive forces and computing network construction, deepen strategic cooperation with national R&D institutions, and expand into smart machinery manufacturing, including intelligent rebar production lines and smart window cleaning equipment, concurrently, it will actively pursue data center operation and maintenance orders and explore emerging overseas markets like Singapore to build a more balanced and resilient development model - Responding to the central government's call for new quality productive forces, the Group will advance the expansion of fully intelligent rebar production lines to enhance production efficiency and reduce costs[67] - In collaboration with Beijing Institute of Architectural Mechanization, the Group entered the production and sales of smart window cleaning machines, with plans to develop high-complexity smart window cleaning machines and promote them in South China, the Middle East, and Africa[68] - Seizing the demand for computing network construction driven by the popularization of AI and cloud services, the Group aims to secure more public and private data center operation and maintenance orders[69] - The Group will continue to invest in technological innovation, focusing on new material processing and mechanical products, and actively explore emerging overseas markets like Singapore to reduce reliance on a few markets[70] Other Information This section provides additional disclosures on corporate governance, securities transactions, dividends, share repurchases, audit committee activities, and post-reporting period events Corporate Governance Practices The Company is committed to maintaining good corporate governance practices and has complied with all code provisions of the Corporate Governance Code under Appendix C1 of the HKEX Listing Rules throughout the period - The Company has complied with all code provisions in Part 2 of the Corporate Governance Code throughout the period[72] Standard Code for Securities Transactions The Company has adopted the Standard Code as set out in Appendix C3 of the Listing Rules as the code of conduct for directors' securities transactions, and all directors have confirmed compliance throughout the period - All Directors have confirmed compliance with the required standards set out in the Standard Code throughout the period[73] Interim Dividend The Board did not recommend the payment of an interim dividend for the period - The Board did not recommend the payment of an interim dividend for the period[74] Purchase, Redemption or Sale of the Company's Listed Securities During the period, the Company repurchased and cancelled 680,000 shares on the HKEX for a total consideration of approximately HKD 134,000, which the Board believes enhanced earnings per share Share Repurchase Details (January 2025) | Month | Number of Shares Repurchased | Highest Price Paid Per Share (HKD) | Lowest Price Paid Per Share (HKD) | Total Consideration (HKD) | | :--- | :--- | :--- | :--- | :--- | | January 2025 | 680,000 | 0.170 | 0.148 | 134,000 | - All repurchased shares were cancelled during the period, and the Board believes the repurchases enhanced earnings per share[75] Audit Committee The Audit Committee comprises three independent non-executive directors, chaired by Ms. Chan Po Yee, and its primary responsibility is to assist the Board in providing independent opinions on financial reporting, internal controls, and risk management - The Audit Committee comprises three independent non-executive directors: Ms. Chan Po Yee (Chairperson), Mr. Cheung Kiu Chor, and Mr. Liu Wing Tung[76] - Its primary responsibilities include providing independent opinions on financial reporting processes, internal control, and risk management systems effectiveness[76] Review of Interim Financial Information The Audit Committee and external auditor Deloitte Touche Tohmatsu have reviewed the Group's condensed consolidated financial statements for the six months ended June 30, 2025 - The Audit Committee and external auditor Deloitte Touche Tohmatsu have reviewed the interim financial statements[77] Events After Reporting Period As of the date of this announcement, no other significant events affecting the Group have occurred after the reporting period - No other significant events affecting the Group have occurred after the reporting period and up to the date of this announcement[78] Publication of Interim Results and Interim Report on the Company's and HKEX Websites This announcement has been published on the Company's and HKEX websites, and the 2025 interim report will be available on these websites in due course - This announcement and the 2025 interim report will be published on the Company's website www.mecommacau.com and the HKEX website www.hkexnews.hk[79](index=79&type=chunk) Acknowledgement The Board expresses gratitude for the support from the Group's management, all employees, shareholders, business partners, and other professionals - The Board expresses gratitude for the support from the Group's management, all employees, shareholders, business partners, and other professionals[80] Board of Directors As of the announcement date, the Board of Directors comprises two executive directors and three independent non-executive directors - The executive directors are Mr. Kwok Lam Sik and Mr. Sou Kun Tou, and the independent non-executive directors are Ms. Chan Po Yee, Mr. Cheung Kiu Chor, and Mr. Liu Wing Tung[81]