天津发展(00882) - 2025 - 中期业绩

Financial Summary The Group's unaudited consolidated results for the six months ended June 30, 2025, show a year-on-year decrease in revenue, but an increase in profit attributable to owners and basic earnings per share, with interim dividends remaining unchanged Financial Summary for H1 2025 | Metric | H1 2025 (HKD thousand) | H1 2024 (HKD thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 1,718,589 | 1,820,260 | -5.69% | | Profit attributable to owners of the Company | 344,455 | 288,077 | +19.57% | | Basic earnings per share (HK cents) | 32.11 | 26.85 | +19.59% | | Interim dividend (HK cents per share) | 5.18 | 5.18 | 0.00% | Condensed Consolidated Financial Statements This section presents the Group's condensed consolidated statement of profit or loss, statement of profit or loss and other comprehensive income, and statement of financial position for the six months ended June 30, 2025, illustrating financial performance and period-end financial position Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, Group revenue slightly decreased, but profit before tax and profit for the period significantly increased due to substantial growth in other income and a turnaround from loss to gain in other gains Key Data from Condensed Consolidated Statement of Profit or Loss (Six Months Ended June 30) | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 1,718,589 | 1,820,260 | -5.69% | | Gross profit | 547,900 | 588,491 | -6.90% | | Other income | 474,910 | 149,223 | +218.26% | | Other gains and losses, net | 26,669 | (30,201) | From loss to gain | | Profit before tax | 691,500 | 416,795 | +65.91% | | Profit for the period | 614,996 | 384,330 | +59.99% | | Profit attributable to owners of the Company | 344,455 | 288,077 | +19.57% | Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, Group profit for the period grew significantly, with total comprehensive income turning from loss to profit, despite a negative impact from fair value changes of equity instruments at fair value through other comprehensive income, as currency translation differences shifted from negative to positive Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Six Months Ended June 30) | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Profit for the period | 614,996 | 384,330 | +59.99% | | Fair value changes of equity instruments at fair value through other comprehensive income | (434,692) | (473,760) | Loss narrowed | | Currency translation differences – Group | 127,667 | (72,289) | From loss to gain | | Total comprehensive income (expense) for the period | 454,494 | (134,905) | From loss to gain | | Total comprehensive income (expense) attributable to owners of the Company | 354,123 | 64,717 | +447.19% | Condensed Consolidated Statement of Financial Position As of June 30, 2025, Group total assets slightly increased, with significant growth in non-current assets like investments accounted for using the equity method and fixed deposits maturing over three months, while current assets such as cash and cash equivalents and fixed deposits maturing over three months decreased; total equity and total liabilities maintained steady growth Key Data from Condensed Consolidated Statement of Financial Position (As of June 30) | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | Change | | :--- | :--- | :--- | :--- | | Total assets | 22,449,648 | 22,192,849 | +1.16% | | Non-current assets | 12,875,509 | 11,701,178 | +10.04% | | Current assets | 9,574,139 | 10,491,671 | -8.75% | | Total equity | 17,687,865 | 17,455,293 | +1.33% | | Total liabilities | 4,761,783 | 4,737,556 | +0.51% | | Net current assets | 4,994,846 | 5,997,598 | -16.72% | - Among non-current assets, investments accounted for using the equity method increased to HKD 6.34 billion (December 31, 2024: HKD 6.06 billion), and fixed deposits maturing over three months significantly increased to HKD 1.62 billion (December 31, 2024: HKD 238.7 million)[6] - Among current assets, cash and cash equivalents decreased to HKD 2.44 billion (December 31, 2024: HKD 3.54 billion), and fixed deposits maturing over three months decreased to HKD 1.79 billion (December 31, 2024: HKD 2.38 billion)[6] Notes to the Condensed Consolidated Financial Statements This section details the basis of preparation, significant accounting policies, segment financial performance, other income and gains, tax expenses, earnings per share calculation, dividend policy, and specifics of various investments and receivables/payables for the condensed consolidated financial statements Basis of Preparation The condensed consolidated financial statements are prepared in accordance with HKAS 34 "Interim Financial Reporting" and Appendix D2 of the Listing Rules, consistent with the statutory annual consolidated financial statements - The financial statements are prepared in accordance with HKAS 34 "Interim Financial Reporting" and Appendix D2 of the Listing Rules[8] - Comparative financial information for the year ended December 31, 2024, is derived from the statutory annual consolidated financial statements filed with the Registrar of Companies, with an unqualified auditor's report[8] Significant Accounting Policies The condensed consolidated financial statements are primarily prepared on a historical cost basis, with certain financial instruments measured at fair value, and accounting policies are consistent with the prior year, except for the application of revised HKFRSs - The financial statements are primarily prepared on a historical cost basis, with investment properties and certain financial instruments measured at fair value[9] - Except for the application of revised HKFRSs, accounting policies are consistent with the prior year's financial statements[9] Application of Revised HKFRSs Revised HKFRSs, including HKAS 21 (Amendment) "Lack of Exchangeability," were first applied in this interim period, with no significant impact on the Group's financial position or performance - The Group first applied revised HKFRSs, including HKAS 21 (Amendment) "Lack of Exchangeability"[10] - The application of new standards had no significant impact on the Group's financial position or performance[10] Segment Information The Group has six reportable operating segments: utilities, pharmaceuticals, hotels, electromechanical, port services, and elevators and escalators, each managed independently with performance assessed by after-tax profit; accounting for the pharmaceutical segment's research institute was adjusted due to equity changes - The Group has six operating segments: utilities, pharmaceuticals, hotels, electromechanical, port services, and elevators and escalators[11] - In the pharmaceutical segment, due to equity changes, Yaoyan Institute is no longer recognized as an investment accounted for using the equity method since December 25, 2024, but as an equity instrument at fair value through other comprehensive income, with no profit or loss recognized in this interim period[11] Operating Segment Revenue and Profit (Six Months Ended June 30) | Segment | 2025 Segment Revenue (HKD thousand) | 2024 Segment Revenue (HKD thousand) | 2025 Profit (Loss) attributable to owners of the Company (HKD thousand) | 2024 Profit (Loss) attributable to owners of the Company (HKD thousand) | | :--- | :--- | :--- | :--- | :--- | | Utilities | 712,786 | 768,660 | 78,360 | 82,369 | | Pharmaceuticals | 863,280 | 895,352 | 132,166 | 5,576 | | Hotels | 63,047 | 66,555 | 15,592 | 15,175 | | Electromechanical | 79,476 | 89,693 | (42,296) | (47,982) | | Port Services | ‒ | ‒ | 72,456 | 87,882 | | Elevators and Escalators | ‒ | ‒ | 121,918 | 155,067 | | Total | 1,718,589 | 1,820,260 | 378,196 | 298,087 | Other Income For the six months ended June 30, 2025, Group other income surged by 218.26%, primarily driven by a significant increase in dividend income from equity instruments at fair value through other comprehensive income Composition of Other Income (Six Months Ended June 30) | Item | 2025 (HKD thousand) | 2024 (HKD thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Interest income | 124,656 | 131,845 | -5.45% | | Government grants | 3,645 | 2,268 | +60.71% | | Dividend income from equity instruments at fair value through other comprehensive income | 334,488 | 2,433 | +13655.77% | | Total | 474,910 | 149,223 | +218.26% | - Operating profit of the pharmaceutical segment includes dividend income from Tasly Group of approximately HKD 329.4 million (six months ended June 30, 2024: nil)[16] Other Gains and Losses, Net For the six months ended June 30, 2025, Group other gains and losses, net, turned from a loss to a gain, primarily due to reversal of impairment losses on trade receivables, fair value gains on financial assets held for trading, and exchange gains Other Gains and Losses, Net (Six Months Ended June 30) | Item | 2025 (HKD thousand) | 2024 (HKD thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Reversal of (provision for) impairment losses – trade receivables | 21,591 | (21,963) | From provision to reversal | | Net fair value gains (losses) on financial assets held for trading – listed | 3,320 | 1,162 | +185.71% | | Net fair value gains (losses) on financial assets held for trading – unlisted | 5,113 | (6,118) | From loss to gain | | Net exchange gains (losses) | 4,552 | (1,111) | From loss to gain | | Total | 26,669 | (30,201) | From loss to gain | Tax Expense For the six months ended June 30, 2025, Group tax expense significantly increased, mainly due to higher PRC corporate income tax and under-provision in prior years; some PRC subsidiaries qualify for a preferential 15% corporate income tax rate as high-tech enterprises Tax Expense (Six Months Ended June 30) | Item | 2025 (HKD thousand) | 2024 (HKD thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | PRC corporate income tax | 52,301 | 21,529 | +142.94% | | Under-provision in prior years | 24,413 | ‒ | New | | Deferred tax | (210) | 10,936 | From expense to credit | | Total | 76,504 | 32,465 | +135.66% | - Some PRC subsidiaries qualify as high-tech enterprises and are subject to a preferential corporate income tax rate of 15%[18] Profit for the Period is Arrived at After Charging Profit for the period is derived after deducting employee benefit expenses, cost of inventories, depreciation and amortization, short-term lease expenses, and research and development costs; employee benefit expenses and cost of inventories increased, while depreciation and amortization decreased Items Deducted in Arriving at Profit for the Period (Six Months Ended June 30) | Item | 2025 (HKD thousand) | 2024 (HKD thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Employee benefit expenses | 304,443 | 298,463 | +2.00% | | Cost of inventories recognized as expense | 955,188 | 900,853 | +6.03% | | Depreciation of property, plant and equipment | 94,521 | 102,026 | -7.36% | | Depreciation of land use rights | 4,220 | 3,071 | +37.40% | | Amortization of intangible assets | 2,506 | 4,339 | -42.24% | | Research and development costs included in other operating expenses | 79,370 | 74,400 | +6.68% | Earnings Per Share For the six months ended June 30, 2025, basic and diluted earnings per share attributable to owners were 32.11 HK cents, up from 26.85 HK cents in the prior year, primarily due to increased profit attributable to owners with no change in ordinary shares outstanding Earnings Per Share (Six Months Ended June 30) | Metric | 2025 (HK cents) | 2024 (HK cents) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Basic earnings per share | 32.11 | 26.85 | +19.59% | | Diluted earnings per share | 32.11 | 26.85 | +19.59% | - The number of ordinary shares used for calculating basic and diluted earnings per share was 1,072,770 thousand shares, with no dilutive effect in either interim period[20] Dividends The Board declared an interim dividend of 5.18 HK cents per ordinary share for the six months ended June 30, 2025, consistent with the prior year, totaling approximately HKD 55,569,500 Interim Dividend (Six Months Ended June 30) | Metric | 2025 (HK cents per share) | 2024 (HK cents per share) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Interim dividend | 5.18 | 5.18 | 0.00% | | Total amount (HKD thousand) | 55,569.5 | 55,569.5 | 0.00% | Investments Accounted for Using the Equity Method As of June 30, 2025, the Group's total investments accounted for using the equity method increased to HKD 6,339,761 thousand, primarily comprising interests in Tianjin Port Development, Otis China, and TEDA Electric Power Investments Accounted for Using the Equity Method (As of June 30) | Investment Item | 2025 (HKD thousand) | 2024 (HKD thousand) | Change | | :--- | :--- | :--- | :--- | | Tianjin Port Development | 3,776,179 | 3,716,230 | +1.61% | | Otis China | 1,092,146 | 928,920 | +17.57% | | TEDA Electric Power | 1,471,436 | 1,419,839 | +3.63% | | Total | 6,339,761 | 6,064,989 | +4.53% | - The interest in Tianjin Port Development includes goodwill of HKD 820.7 million (net of impairment losses), which remained unchanged from December 31, 2024[23] Equity Instruments at Fair Value Through Other Comprehensive Income As of June 30, 2025, the Group's total equity instruments at fair value through other comprehensive income amounted to HKD 1,847,310 thousand, a decrease from December 31, 2024, primarily due to a decline in the fair value of unlisted equity securities, including interests in Tasly Group and Yaoyan Institute Equity Instruments at Fair Value Through Other Comprehensive Income (As of June 30) | Item | 2025 (HKD thousand) | 2024 (HKD thousand) | Change | | :--- | :--- | :--- | :--- | | Listed equity securities | 77,236 | 84,228 | -8.29% | | Unlisted equity securities | 1,770,074 | 2,181,392 | -18.86% | | Total | 1,847,310 | 2,265,620 | -18.46% | - Unlisted equity securities primarily include a 12.15% interest in Tasly Group and a 31.05% interest in Yaoyan Institute[24] - The equity interest in Binhai Investment had a market value of HKD 59.8 million, with an unrealized fair value loss of HKD 7.0 million recognized in other comprehensive income[24] Trade and Other Receivables, Deposits and Prepayments As of June 30, 2025, the Group's total trade and other receivables, deposits, and prepayments increased to HKD 2,284,586 thousand, primarily due to higher trade receivables and other receivables, with the latter mainly from dividend income due from Tasly Group Trade and Other Receivables (As of June 30) | Item | 2025 (HKD thousand) | 2024 (HKD thousand) | Change | | :--- | :--- | :--- | :--- | | Total trade receivables | 1,546,595 | 1,401,862 | +10.32% | | Other receivables, deposits and prepayments | 737,991 | 426,410 | +72.90% | | Total | 2,284,586 | 1,828,272 | +25.07% | - The increase in other receivables, deposits, and prepayments primarily stemmed from dividend income due from Tasly Group[25] Trade Receivables Ageing Analysis (As of June 30) | Ageing | 2025 (HKD thousand) | 2024 (HKD thousand) | | :--- | :--- | :--- | | Within 30 days | 319,261 | 196,441 | | 31 to 90 days | 175,127 | 293,212 | | 91 to 180 days | 293,002 | 236,725 | | 181 to 365 days | 315,566 | 393,547 | | Over 1 year | 443,639 | 281,937 | Structured Deposits As of June 30, 2025, the Group's structured deposits increased to HKD 775,603 thousand, with maturities up to six months and expected annual interest rates ranging from 0.8% to 3.4% Structured Deposits (As of June 30) | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | Change | | :--- | :--- | :--- | :--- | | Structured deposits | 775,603 | 347,394 | +123.26% | - Deposit terms are up to six months, with expected annual interest rates ranging from 0.8% to 3.4% (December 31, 2024: 1.1% to 2.6%)[26] Trust Deposits As of June 30, 2025, the Group's trust deposits slightly increased to HKD 1,064,449 thousand, with maturities of six to twelve months and an expected annualized return of 4.0% Trust Deposits (As of June 30) | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | Change | | :--- | :--- | :--- | :--- | | Trust deposits | 1,064,449 | 1,036,909 | +2.66% | - Deposit terms are six to twelve months, with an expected annualized return of 4.0%[27] Trade Payables As of June 30, 2025, the Group's total trade payables increased to HKD 480,988 thousand, with significant increases in payables aged 31 to 90 days and 91 to 180 days Trade Payables Ageing Analysis (As of June 30) | Ageing | 2025 (HKD thousand) | 2024 (HKD thousand) | Change | | :--- | :--- | :--- | :--- | | Within 30 days | 108,329 | 144,080 | -24.81% | | 31 to 90 days | 94,362 | 39,073 | +141.50% | | 91 to 180 days | 62,600 | 35,765 | +75.04% | | Over 180 days | 215,697 | 225,719 | -4.30% | | Total | 480,988 | 444,637 | +8.17% | Management Discussion and Analysis This section provides an operational review of the Group's business segments, outlook on the future economic environment, liquidity, capital sources, key financial risk management strategies, and details on staff remuneration, asset pledges, litigation, dividend distribution, share registration, securities trading, and corporate governance Business Review The Group's diverse businesses include utilities, pharmaceuticals, hotels, electromechanical, and strategic investments, with varied performance: water utilities grew, while heat and power revenues slightly declined; pharmaceutical profit surged due to special dividends; hotel revenue decreased but profit slightly rose; electromechanical revenue fell but losses narrowed; and strategic investments in port services and elevators/escalators contributed less profit Utilities The utilities business primarily operates water, heat, and power supply in Tianjin Development Area; water business revenue and profit grew, heat business revenue and profit declined, and power business revenue slightly decreased but contributed more profit - The utilities business primarily provides water, heat, and power to commercial and residential users in the Tianjin Economic-Technological Development Area, China[30] Water Supply Water supply company revenue was approximately HKD 144 million, up 1.2% year-on-year, with profit of approximately HKD 22 million, increasing 19.6%, primarily due to reduced operating expenses and a 3.6% increase in total sales volume Water Supply Business Performance (Six Months Ended June 30) | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 144,000 | 142,305 | +1.2% | | Profit | 22,000 | 18,400 | +19.6% | | Total sales volume (tonnes) | 22,563,000 | 21,779,000 | +3.6% | - Profit growth was primarily attributable to successful implementation of operating expense reduction measures, leading to improved operating margins[31] Heat Energy Heat and power company revenue was approximately HKD 568.8 million, down 9.2% year-on-year, with profit of approximately HKD 31.1 million, a decrease from HKD 40.4 million in the prior year, mainly due to a 10.2% drop in steam sales volume, partially offset by reduced operating expenses Heat Energy Business Performance (Six Months Ended June 30) | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 568,800 | 626,400 | -9.2% | | Profit | 31,100 | 40,400 | -22.9% | | Total steam sales volume (tonnes) | 1,714,000 | 1,908,000 | -10.2% | - The decrease in revenue and profit was mainly due to a decline in steam sales volume, partially offset by reduced operating expenses[32] Electric Power TEDA Electric Power revenue was approximately HKD 1,140.9 million, a 0.2% year-on-year decrease, contributing approximately HKD 29.5 million in profit to the Group, an increase of HKD 1.2 million from the prior year Electric Power Business Performance (Six Months Ended June 30) | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 1,140,900 | 1,143,281 | -0.2% | | Profit contribution | 29,500 | 28,300 | +4.24% | - TEDA Electric Power primarily operates power supply services in the Tianjin Development Area, also offering services related to new and renewable energy technology applications[33] Pharmaceuticals Pharmaceutical segment revenue was approximately HKD 863.3 million, a 3.6% year-on-year decrease; however, profit surged to HKD 377.9 million due to a special dividend of HKD 303.1 million from Tasly Group, or HKD 74.8 million excluding the dividend, primarily driven by increased interest income Pharmaceutical Business Performance (Six Months Ended June 30) | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 863,300 | 895,400 | -3.6% | | Profit | 377,900 | 62,300 | +506.58% | | Revenue from production and sales of chemical drugs, proprietary Chinese medicines, and other healthcare products | 787,400 | 811,750 | -3.0% | | Revenue from sales of packaging materials | 75,900 | 84,000 | -9.64% | - The significant increase in pharmaceutical segment profit was primarily due to a special dividend of HKD 303.1 million declared by Tasly Group[35] - Excluding the special dividend, pharmaceutical segment profit was approximately HKD 74.8 million, an increase of HKD 12.5 million from the prior year, mainly due to increased interest income and the Group no longer sharing in Yaoyan Institute's results[35] - Lisheng Pharmaceutical intends to subscribe RMB 173.75 million to establish a limited partnership fund, representing 34.75% of the proposed total subscribed capital[36] Hotels Courtyard by Marriott revenue was approximately HKD 63 million, down 5.4% year-on-year, but profit slightly increased to HKD 15.6 million, with average occupancy rising 2 percentage points to 89.7% despite a 6.4% drop in average room rate Hotel Business Performance (Six Months Ended June 30) | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 63,000 | 66,600 | -5.4% | | Profit | 15,600 | 15,200 | +2.63% | | Average occupancy rate | 89.7% | 87.7% | +2.0 ppts | | Average room rate | -6.4% | N/A | -6.4% | Electromechanical Electromechanical segment revenue was approximately HKD 79.5 million, down 11.4% year-on-year; losses narrowed to approximately HKD 51.1 million, an 11.9% improvement from the prior year, but still impacted by slower hydropower industry development and lower contract gross margins Electromechanical Business Performance (Six Months Ended June 30) | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 79,500 | 89,693 | -11.4% | | Loss | (51,100) | (58,000) | Loss narrowed 11.9% | - Operating loss was primarily due to the slowing development of the hydropower industry and lower gross margins on completed contract works[38] Strategic and Other Investments The Group's strategic and other investments include port services, elevators and escalators, Binhai Investment, and Tasly Group; profit contributions from port services and elevators/escalators decreased, Binhai Investment's equity market value declined with unrealized fair value losses, and Tasly Group's investment fair value decreased but provided substantial dividend income Port Services Tianjin Port Development revenue grew 2.9% to approximately HKD 6,942.2 million, but profit attributable to its owners decreased by 17.6%; the Group's profit contribution from Tianjin Port Development was approximately HKD 72.5 million, a 17.5% year-on-year decrease Port Services Business Performance (Six Months Ended June 30) | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Tianjin Port Development revenue | 6,942,200 | 6,746,550 | +2.9% | | Profit attributable to owners of Tianjin Port Development | 345,000 | 418,600 | -17.6% | | Group's profit contribution | 72,500 | 87,882 | -17.5% | Elevators and Escalators Otis China revenue was approximately HKD 6,740.8 million, a 23.3% year-on-year decrease; the Group's profit contribution from Otis China was approximately HKD 121.9 million, down 21.4% year-on-year Elevators and Escalators Business Performance (Six Months Ended June 30) | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Otis China revenue | 6,740,800 | 8,786,000 | -23.3% | | Group's profit contribution | 121,900 | 155,067 | -21.4% | Investment in Binhai Investment Company Limited The Group holds a 4.2% equity interest in Binhai Investment, with a market value of approximately HKD 59.8 million as of June 30, 2025, and recognized an unrealized fair value loss of approximately HKD 7 million Binhai Investment Company Limited Investment Status (As of June 30) | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | Change | | :--- | :--- | :--- | :--- | | Equity market value | 59,800 | 66,800 | -10.48% | | Unrealized fair value loss | 7,000 | N/A | New | - The Group holds a 4.2% equity interest in Binhai Investment, which is listed on the Main Board of the Stock Exchange[42] Investment in Tasly Pharmaceutical Group Co., Ltd. The Group holds a 12.15% non-core passive equity interest in Tasly Group, with a fair value of approximately HKD 852.3 million as of June 30, 2025, a decrease from December 31, 2024, recognizing approximately HKD 420.4 million in unrealized fair value losses and exchange differences, while receiving approximately HKD 329.4 million in dividend income during the review period Tasly Group Investment Status (As of June 30) | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | Change | | :--- | :--- | :--- | :--- | | Fair value | 852,300 | 1,272,700 | -33.03% | | Unrealized fair value loss and exchange differences | 420,400 | N/A | New | | Dividend income (H1) | 329,400 | 4,000 (Full Year) | Substantially increased | - The Group holds a 12.15% equity interest in Tasly Group, which is a non-core passive investment and will not be sold in the foreseeable future[43][44] Outlook For the second half of 2025, the global economy faces high uncertainty with ongoing geopolitical conflicts and international trade frictions; China's economy is expected to achieve its targets through policy synergy, and the Company will actively promote stable business development, deepen integration, focus on shareholder value, adhere to prudent financial management, and enhance core competitiveness - The global economy is expected to face high uncertainty in the second half of 2025, with ongoing geopolitical conflicts and international trade frictions[45] - China's economy is projected to achieve its targets through policy synergy[45] - The Company will actively promote stable business development, deepen integration, focus on shareholder value, strengthen its foundation, and enhance core competitiveness[45] Liquidity, Capital Resources and Key Risks As of June 30, 2025, the Group's total cash on hand and bank loans both decreased, with a slight improvement in the gearing ratio; funding primarily comes from operating cash flow and loan financing, with close monitoring of interest rate, exchange rate, and credit risks, and no derivative contracts entered Liquidity Status (As of June 30) | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | Change | | :--- | :--- | :--- | :--- | | Total cash on hand | 5,909,600 | 6,272,100 | -5.89% | | Total bank loans | 1,972,800 | 1,989,800 | -0.85% | | Gearing ratio | 15.3% | 15.8% | -0.5 ppts | - HKD 1.94 billion in bank loans will mature within one year[46] - Of the outstanding bank loans, HKD 1.92 billion bears floating interest rates, with HKD 1.72 billion linked to environmental, social, and governance (ESG) performance indicators[47] - The Group has not entered into any derivative contracts or hedging transactions and closely monitors foreign currency exchange rate fluctuations[48] Employees and Remuneration Policy The Group employs approximately 2,735 staff, contributing to pension schemes for both PRC and Hong Kong employees, with some PRC subsidiary employees participating in restricted share incentive plans - The Group employs approximately 2,735 staff, including management, technical, and production personnel[49] - Contributions are made to government-established pension schemes for PRC employees and to the Mandatory Provident Fund Scheme for Hong Kong employees[49] - Some employees of PRC subsidiaries participate in relevant restricted share incentive plans[49] Pledge of Assets As of June 30, 2025, the Group pledged restricted bank deposits of HKD 59.4 million and property, plant and equipment with a carrying amount of HKD 55.6 million to financial institutions as collateral for general banking facilities Asset Pledge Status (As of June 30) | Pledged Assets | Amount (HKD thousand) | | :--- | :--- | | Restricted bank deposits | 59,400 | | Property, plant and equipment | 55,600 | - Pledged assets serve as collateral for general banking facilities[50] Litigation The Tianjin Higher People's Court dismissed the appeal by Zhongyang Pharmaceutical and its agent, upholding the first-instance judgment; Group management believes this litigation will not have a material adverse impact on the Group's financial position - The Tianjin Higher People's Court dismissed the appeal by Zhongyang Pharmaceutical and its agent, with the first-instance judgment upheld and final[51] - Management believes the litigation will not have a material adverse impact on the Group's financial position[51] Interim Dividend The Board declared an interim dividend of 5.18 HK cents per share for the six months ended June 30, 2025, payable on October 31, 2025 - The Board declared an interim dividend of 5.18 HK cents per share, consistent with the prior year[52] - The interim dividend will be paid on October 31, 2025[52] Closure of Register of Members To determine eligibility for the interim dividend, the Company's register of members will be closed from September 24 to September 26, 2025 - The register of members will be closed from September 24 to September 26, 2025, to determine eligibility for the interim dividend[53] Purchase, Sale or Redemption of the Company's Listed Securities For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - Neither the Company nor its subsidiaries engaged in any purchase, sale, or redemption of listed securities during the review period[54] Compliance with Corporate Governance Code For the six months ended June 30, 2025, the Company complied with the Corporate Governance Code provisions in Appendix C1 Part 2 of the Listing Rules and will continue to monitor and review its corporate governance practices - The Company consistently complied with the Corporate Governance Code in Appendix C1 Part 2 of the Listing Rules during the review period[55] - The Board will continue to monitor and review corporate governance practices and procedures[56] Compliance with the Standard Securities Dealing Code for Directors of Listed Issuers All Directors confirmed compliance with the Standard Securities Dealing Code in Appendix C3 of the Listing Rules during the review period, and the Company has established written guidelines for senior management and specific individuals regarding securities transactions, no less exacting than the Standard Code - All Directors confirmed compliance with the Standard Securities Dealing Code for Directors of Listed Issuers during the review period[57] - The Company has established strict written guidelines for securities transactions for senior management and specific individuals who may have access to price-sensitive information[57] Review by Audit Committee The Audit Committee engaged independent auditors to review the unaudited condensed consolidated financial statements and discussed accounting principles, risk management (including ESG risks), internal control system effectiveness, auditing, and financial reporting with management - The Audit Committee engaged independent auditors to review the unaudited condensed consolidated financial statements[58] - The Audit Committee reviewed accounting principles, risk management (including ESG risks), the effectiveness of internal control systems, auditing, and financial reporting matters[58]