未来世界控股(00572) - 2025 - 中期业绩

Announcement Information Disclaimer HKEX and HKSE disclaim responsibility for this announcement's content, accuracy, completeness, and any related losses - Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited are not responsible for the content of this announcement, make no statement as to its accuracy or completeness, and expressly disclaim any liability for any loss arising from or in reliance upon the whole or any part of the contents of this announcement[1] Company Information and Reporting Period FUTURE WORLD HOLDINGS LIMITED reports unaudited condensed consolidated interim results for the six months ended 30 June 2025 - Company Name: FUTURE WORLD HOLDINGS LIMITED, Stock Code: 572[2] - Reporting Period: Unaudited condensed consolidated interim results for the six months ended 30 June 2025[2][3] Condensed Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Revenue, net profit, and comprehensive income rose significantly, primarily from financial asset fair value gains and reduced credit loss provisions, despite increased investment property fair value losses Key Financial Performance Indicators | Indicator | Six Months Ended 30 June 2025 (HK$ Thousand) | Six Months Ended 30 June 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Revenue | 58,254 | 23,598 | Increased 146.9% | | Gross Profit | 25,557 | 14,729 | Increased 73.5% | | Operating Profit | 36,368 | 26,529 | Increased 37.1% | | Profit Before Income Tax | 16,550 | 17,325 | Decreased 4.5% | | Profit for the Period | 17,703 | 12,276 | Increased 44.2% | | Total Comprehensive Income for the Period | 22,537 | 7,081 | Increased 218.3% | | Profit for the Period Attributable to Owners of the Company | 17,703 | 13,089 | Increased 35.2% | | Basic Earnings Per Share Attributable to Owners of the Company | HK$0.06 | HK$0.06 | Unchanged | Condensed Consolidated Statement of Financial Position As of 30 June 2025, the company's total assets and net assets grew, non-current investment properties increased, current loans decreased, and current trade/other payables rose significantly Key Financial Position Indicators | Indicator | 30 June 2025 (HK$ Thousand) | 31 December 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Non-current Assets | | | | | Investment Properties | 1,091,585 | 971,414 | Increased 12.4% | | Current Assets | | | | | Loans and Interest Receivables | 130,034 | 163,831 | Decreased 20.7% | | Financial Assets at Fair Value Through Profit or Loss | 144,462 | 115,321 | Increased 25.3% | | Cash and Bank Balances | 57,144 | 99,275 | Decreased 42.5% | | Current Liabilities | | | | | Trade Payables, Accruals and Other Payables | 86,097 | 38,453 | Increased 123.9% | | Bank Borrowings | 182,304 | 217,368 | Decreased 16.1% | | Net Assets | 892,635 | 848,030 | Increased 5.3% | | Total Equity | 892,635 | 848,030 | Increased 5.3% | Notes to the Condensed Consolidated Interim Financial Statements 1. General Information The company, incorporated in the Cayman Islands and listed on the Main Board of HKEX, primarily engages in hotel operations, property investment and management, financing services, securities trading and investment, securities brokerage, and asset management services - The company is incorporated in the Cayman Islands, with its shares listed on the Main Board of The Stock Exchange of Hong Kong Limited[8] - The Group's principal activities include hotel operations, property investment management and agency, provision of financing services, securities trading and investment, securities brokerage business, and asset management services[8] 2. Basis of Preparation The interim financial statements are prepared in accordance with HKAS 34 and Appendix D2 of the Listing Rules, primarily on a historical cost basis, with investment properties and financial assets at fair value through profit or loss/other comprehensive income measured at fair value, and are unaudited - The interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and Appendix D2 of the Listing Rules[11] - The statements are prepared primarily on a historical cost basis, except for investment properties, financial assets at fair value through profit or loss, and financial assets at fair value through other comprehensive income, which are measured at fair value[12] - The interim financial statements are unaudited[13] 3. Adoption of New and Revised Hong Kong Financial Reporting Standards During the period, the Group first applied amendments to HKFRSs issued by the HKICPA, which had no material impact on financial position or performance, while the Board assessed new standards issued but not yet effective, expecting some, like HKFRS 18, to affect future financial statement presentation (a) Amendments to Hong Kong Financial Reporting Standards – Effective 1 January 2025 - The Group first applied HKAS 21 (Amendments) "Lack of Exchangeability" during the period, which had no material impact on its financial position and performance[14] (b) New and Revised Hong Kong Financial Reporting Standards Issued But Not Yet Effective - HKFRS 18 "Presentation and Disclosure in Financial Statements" will be effective for annual periods beginning on or after 1 January 2027, and is expected to impact the presentation of the condensed consolidated statement of profit or loss and other comprehensive income and future financial statement disclosures, with the Group currently assessing its impact[20][21] - HKFRS 9 and HKFRS 7 (Amendments) "Classification and Measurement of Financial Instruments" will be effective for annual periods beginning on or after 1 January 2026, and are not expected to have a significant impact on the Group's financial position and performance[16][19] 4. Revenue During the period, the Group's revenue significantly increased by 146.9% to HK$58,254 thousand, primarily driven by substantial increases in income from hotel operations and related businesses, property agency services, and property management services Revenue by Source | Revenue Source | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Food and Beverage and Other Services Income from Hotel Operations and Related Businesses | 21,209 | 10,203 | Increased 107.9% | | Commission Income from Property Agency Services | 9,788 | 4,066 | Increased 140.7% | | Hotel Room Rental and Hostel Cleaning Services Income from Hotel Operations and Related Businesses | 14,679 | – | New | | Income from Property Management Services | 3,962 | 1,284 | Increased 208.6% | | Management Fee Income from Asset Management Services | 1,626 | – | New | | Rental Income from Property Investment | 3,199 | 3,615 | Decreased 11.5% | | Interest Income from Provision of Financing Services | 3,791 | 4,430 | Decreased 14.4% | | Total Revenue | 58,254 | 23,598 | Increased 146.9% | 5. Segment Information The Group's operating segments include hotel operations and related businesses, property investment management and agency services, provision of financing services, securities trading and investment, securities brokerage business, asset management services, and trading business and related services; asset management services were added this period, while high-tech business is no longer a separately reportable segment Segment Revenue and Financial Performance | Segment | 2025 Revenue (HK$ Thousand) | 2024 Revenue (HK$ Thousand) | 2025 Segment Financial Performance (HK$ Thousand) | 2024 Segment Financial Performance (HK$ Thousand) | | :--- | :--- | :--- | :--- | | Hotel Operations and Related Businesses | 35,888 | 10,203 | (7,348) | (1,318) | | Property Investment, Management and Agency Services | 16,949 | 8,965 | (42,295) | (18,251) | | Provision of Financing Services | 3,791 | 4,430 | 3,582 | 28,413 | | Securities Trading and Investment | – | – | 73,601 | (161) | | Securities Brokerage Business | – | – | (597) | (608) | | Asset Management Services | 1,626 | – | (147) | – | | Trading Business and Related Services | – | – | (28) | (57) | | High-tech Business | – | – | – | – | | Total | 58,254 | 23,598 | 26,796 | 7,990 | - Asset management services commenced during the period following the acquisition of a subsidiary and are considered a new operating and reportable segment[27] - High-tech business is no longer a separate operating and reportable segment after the disposal of a subsidiary[27] Segment Assets and Liabilities | Segment | 2025 Assets (HK$ Thousand) | 2024 Assets (HK$ Thousand) | 2025 Liabilities (HK$ Thousand) | 2024 Liabilities (HK$ Thousand) | | :--- | :--- | :--- | :--- | | Hotel Operations and Related Businesses | 198,001 | 197,529 | 138,391 | 133,864 | | Property Investment, Management and Agency Services | 1,138,922 | 1,011,795 | 496,109 | 458,112 | | Provision of Financing Services | 135,802 | 203,710 | – | – | | Securities Trading and Investment | 160,385 | 88,077 | 83,934 | 116,029 | | Securities Brokerage Business | 4,750 | 4,348 | 85 | – | | Asset Management Services | 2,895 | – | 724 | – | | Trading Business and Related Services | 1,085 | 1,063 | 334 | 1,828 | | High-tech Business | – | 436 | – | 2,236 | | Total Segment Assets | 1,641,840 | 1,506,958 | 719,577 | 712,069 | | Unallocated Corporate Assets/Liabilities | 81,544 | 160,575 | 111,172 | 107,434 | | Consolidated Assets/Liabilities | 1,723,384 | 1,667,533 | 830,749 | 819,503 | 6. Finance Costs Finance costs for the period significantly increased to HK$19,818 thousand, primarily due to substantial growth in interest expenses on other borrowings, lease liabilities, and a loan from a director Finance Costs Breakdown | Finance Cost Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Interest Expense on Bank Borrowings | 3,521 | 6,457 | Decreased 45.4% | | Interest Expense on Other Borrowings | 11,717 | 841 | Increased 1293.2% | | Interest Expense on Lease Liabilities | 1,005 | 46 | Increased 2084.8% | | Interest Expense on Promissory Notes | 223 | – | New | | Interest Expense on Loan from a Director | 2,013 | – | New | | Total Finance Costs | 19,818 | 9,204 | Increased 115.3% | 7. Profit Before Income Tax Profit before income tax is arrived at after deducting various expenses such as staff costs, depreciation, cost of inventories, and operating expenses for investment properties, with total staff costs significantly increasing during the period Selected Expenses | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Total Staff Costs | 20,130 | 4,051 | Increased 396.9% | | Cost of Inventories Recognized as Expense | 19,830 | 8,869 | Increased 123.6% | | Depreciation of Property, Plant and Equipment | 5,902 | 1,200 | Increased 391.8% | | Depreciation of Right-of-Use Assets | 1,599 | 1,378 | Increased 16.0% | 8. Income Tax (Credit) / Expense Income tax for the period shifted from an expense to a credit, primarily due to a deferred tax credit, with the Group's Chinese subsidiaries accruing enterprise income tax at a 25% rate, while no Hong Kong profits tax was provided due to the absence of assessable profits Income Tax (Credit) / Expense Breakdown | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | China Enterprise Income Tax | 1,736 | 1,019 | Increased 70.4% | | Deferred Tax | (2,889) | 4,030 | Shifted from expense to credit | | Income Tax (Credit) / Expense | (1,153) | 5,049 | Shifted from expense to credit | - No provision for Hong Kong profits tax was made as no assessable profits arose in Hong Kong[32] - Provision for enterprise income tax for Chinese subsidiaries is calculated at a rate of 25%[32] 9. Dividends The Board of Directors does not recommend the payment of any dividend for the current period - The Board of Directors does not recommend the payment of any dividend for the six months ended 30 June 2025[33] 10. Earnings Per Share Basic earnings per share attributable to owners of the company remained at HK$0.06 for the period, consistent with the prior year, as the increase in profit was offset by a corresponding increase in the weighted average number of ordinary shares, and diluted earnings per share were the same as basic earnings per share due to the absence of dilutive potential ordinary shares Earnings Per Share Calculation | Indicator | 2025 (HK$ Thousand / Thousand Shares) | 2024 (HK$ Thousand / Thousand Shares) | | :--- | :--- | :--- | | Profit for the Period Attributable to Owners of the Company | 17,703 | 13,089 | | Weighted Average Number of Ordinary Shares | 283,325 | 232,191 | | Basic Earnings Per Share | HK$0.06 | HK$0.06 | - Diluted earnings per share are the same as basic earnings per share because there were no dilutive potential ordinary shares outstanding or to be issued for the six months ended 30 June 2025 and 30 June 2024[35] 11. Movements in Property, Plant and Equipment, Right-of-Use Assets and Investment Properties During the period, the Group made additions to property, plant and equipment, right-of-use assets, and investment properties, with a significant increase in investment property additions primarily through subsidiary acquisitions and property transfers from a director; fair value losses on investment properties expanded, and some investment properties are pledged Additions to Assets | Asset Type | 2025 Additions (HK$ Thousand) | 2024 Additions (HK$ Thousand) | | :--- | :--- | :--- | | Property, Plant and Equipment | 849 | 2,691 | | Right-of-Use Assets | 292 | 327 | | Investment Properties | 146,851 | 103,033 | - Investment property additions include approximately HK$54,769 thousand from the acquisition of a subsidiary and approximately HK$88,000 thousand from the transfer of property from a director[37] - Fair value losses on investment properties expanded to HK$38,572 thousand (2024: HK$17,106 thousand)[38] - As of 30 June 2025, investment properties with a carrying amount of approximately HK$549,000 thousand were pledged as collateral for bank borrowings and other borrowings[39][54] 12. Financial Assets at Fair Value Through Other Comprehensive Income As of 30 June 2025, financial assets at fair value through other comprehensive income primarily consisted of Hong Kong listed equity securities, showing a slight increase in market value, with some assets pledged Financial Assets at Fair Value Through Other Comprehensive Income | Item | 30 June 2025 (HK$ Thousand) | 31 December 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Hong Kong Listed Equity Securities | 10,406 | 9,909 | - As of 30 June 2025, financial assets at fair value through other comprehensive income with a carrying amount of approximately HK$3,590 thousand were pledged as collateral for other borrowings granted to the Group[42] 13. Financial Assets at Fair Value Through Profit or Loss As of 30 June 2025, financial assets at fair value through profit or loss, primarily Hong Kong listed equity securities, increased to a total of HK$144,462 thousand, generating a fair value gain of HK$58,639 thousand for the period, following the redemption of an unlisted Cayman Islands investment fund Financial Assets at Fair Value Through Profit or Loss | Item | 30 June 2025 (HK$ Thousand) | 31 December 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Hong Kong Listed Equity Securities | 144,032 | 76,233 | | Cayman Islands Unlisted Investment Fund | – | 38,720 | | China Financial Products | 430 | 368 | | Total | 144,462 | 115,321 | - Fair value changes resulted in a gain of HK$58,639 thousand for the period[43] - The Cayman Fund was redeemed for a consideration of approximately HK$22,892 thousand during the period[45] 14. Loans and Interest Receivables As of 30 June 2025, total loans and interest receivables decreased to HK$130,034 thousand, primarily from the money lending business, with the loan to "Xiaoyu" remaining the largest portion, secured by shares of a Hong Kong listed company, and some receivables transferred to a director Loans and Interest Receivables | Item | 30 June 2025 (HK$ Thousand) | 31 December 2024 (HK$ Thousand) | | :--- | :--- | :--- | | From Money Lending Business (net of provision) | 130,034 | 154,011 | | Bills Receivable (net of provision) | – | 9,820 | | Total | 130,034 | 163,831 | - Loans receivable from "Xiaoyu" (net of provision) amounted to approximately HK$94,277 thousand, secured by shares of a Hong Kong listed company with a fair value of approximately HK$1,035,239 thousand[46] - Certain loans and interest receivables totaling approximately HK$13,571 thousand were transferred to one of the Company's directors[46] - As of 30 June 2025, the credit loss provision for loans and interest receivables was approximately HK$17,050 thousand, with an additional provision of HK$198 thousand recognized during the period[103][106] 15. Trade and Other Receivables As of 30 June 2025, net trade receivables decreased, while net other receivables significantly increased, primarily due to growth in deposits and prepayments, and a reversal of credit loss provision for trade receivables was recognized during the period Trade and Other Receivables | Item | 30 June 2025 (HK$ Thousand) | 31 December 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Net Trade Receivables | 8,763 | 11,864 | | Other Receivables | 30,377 | 8,793 | | Deposits and Prepayments | 21,912 | 2,237 | | Other Recoverable Taxes | 12,276 | 12,351 | | Total | 73,328 | 35,245 | - A reversal of credit loss provision for trade receivables of HK$1,469 thousand was recognized in the consolidated statement of profit or loss during the period[50] - The balance of other receivables primarily includes approximately HK$3,281 thousand in gross rental income receivable related to investment properties in China[50] 16. Trade Payables, Accruals and Other Payables As of 30 June 2025, total trade payables, accruals, and other payables significantly increased to HK$86,097 thousand, primarily driven by substantial growth in other payables and rental income received in advance Trade Payables, Accruals and Other Payables | Item | 30 June 2025 (HK$ Thousand) | 31 December 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Trade Payables | 5,073 | 4,651 | | Other Payables | 67,856 | 19,798 | | Accruals | 3,549 | 8,993 | | Rental Income Received in Advance | 3,744 | 933 | | Total | 86,097 | 38,453 | - Approximately HK$2,857 thousand of other payables represent borrowings from independent third parties, bearing interest at an annual rate of 3%[52] 17. Bank Borrowings As of 30 June 2025, total bank borrowings decreased to HK$182,304 thousand, with the majority being long-term, secured by investment properties and bearing floating interest rates Bank Borrowings by Repayment Term | Repayment Term | 30 June 2025 (HK$ Thousand) | 31 December 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Within One Year | 10,088 | 40,089 | | Over One Year, But Less Than Two Years | 10,382 | 10,406 | | Over Two Years, But Less Than Five Years | 33,116 | 33,243 | | Over Five Years | 128,718 | 133,630 | | Total | 182,304 | 217,368 | - Bank borrowings are secured by investment properties with a carrying amount of approximately HK$549,000 thousand[54] 18. Other Borrowings As of 30 June 2025, total other borrowings increased to HK$399,661 thousand, with most classified as non-current liabilities, and these borrowings are secured by investment properties and financial assets at fair value through other comprehensive income Other Borrowings | Item | 30 June 2025 (HK$ Thousand) | 31 December 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Current Liabilities | 92,931 | 87,653 | | Non-current Liabilities | 306,730 | 293,784 | | Total | 399,661 | 381,437 | - Other borrowings are secured by investment properties with a carrying amount of approximately HK$246,000 thousand and equity investments at fair value through other comprehensive income of approximately HK$3,590 thousand[55] 19. Promissory Notes During the period, the Group issued new promissory notes to settle part of the consideration for asset acquisitions and repaid some existing promissory notes by issuing shares, resulting in a gain on early redemption - The Group issued promissory notes with a principal amount of HK$15,778 thousand to settle part of the consideration for the acquisition of assets as described in note 23(b), maturing on 31 March 2028 and bearing interest at an annual rate of 5%[56] - Promissory notes with a principal amount of HK$13,600 thousand were settled by issuing 23,188,310 shares of the Company with a fair value of approximately HK$11,594 thousand, resulting in a gain on early redemption of approximately HK$2,319 thousand[56] 20. Bonds Payable During the period, the Group partially repaid bonds payable and extended their maturity date to 4 July 2025; after the reporting period, the remaining bonds payable were fully repaid - The Group partially repaid bonds payable amounting to approximately HK$22,890 thousand during the period[58] - After the reporting period, the remaining outstanding bonds payable of approximately HK$23,363 thousand were repaid on 16 July 2025[58] 21. Amount Due from a Director and Loan from a Director As of 30 June 2025, the net amount due from a director (Mr. Lai Long Wai) was HK$1,137 thousand, primarily offset by property acquisition and receivable transfers, while the Group also obtained loans from Mr. Lai, mostly interest-free long-term loans Amounts Due from/to a Director | Item | 30 June 2025 (HK$ Thousand) | 31 December 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Amount Due from Mr. Lai Long Wai | 1,137 | 65,746 | | Loan from Mr. Lai (Total) | 74,669 | 70,608 | | - Non-current Liabilities | 52,779 | 49,324 | | - Current Liabilities | 21,890 | 21,284 | - The amount due from Mr. Lai was a net of HK$1,137 thousand after offsetting property acquisition (HK$88,000 thousand) and transfer of receivables (HK$23,391 thousand)[59] - Mr. Lai provided interest-free loans totaling approximately HK$73,430 thousand to the Group, maturing on 31 December 2029[60] 22. Share Capital As of 30 June 2025, the company's issued ordinary shares increased to 301,507,892 shares, primarily due to the allotment and issuance of new shares to settle promissory notes and acquire subsidiaries Share Capital Movements | Date | Number of Ordinary Shares (Thousand Shares) | Amount (HK$ Thousand) | | :--- | :--- | :--- | | 1 January 2024 | 232,190,982 | 92,876 | | Shares Issued (2024) | 21,700,000 | 8,680 | | 31 December 2024 and 1 January 2025 | 253,890,982 | 101,556 | | Shares Issued (H1 2025) | 47,616,910 | 19,047 | | 30 June 2025 | 301,507,892 | 120,603 | - In the first half of 2025, 47,616,910 ordinary shares were issued to settle promissory notes and acquire subsidiaries[61] 23. Acquisition of Subsidiaries During the period, the Group completed the acquisitions of Top Smart Fund Management Limited and Aspire Holding Limited, with Top Smart aiming to expand asset management services and Aspire Holding to extend property management services and diversify the property investment portfolio (a) Acquisition of Assets Through Acquisition of a Subsidiary – Top Smart Fund Management Limited ("Top Smart") - The acquisition of the entire equity interest in Top Smart was completed on 28 January 2025 for a consideration of HK$2,000 thousand (HK$1,000 thousand in cash and HK$1,000 thousand by issuing shares)[62][63] - Top Smart and its subsidiaries engage in Type 9 (asset management) regulated activities, and this acquisition provides a platform for the Group to expand its asset management services in Hong Kong[63] Fair Value of Identifiable Net Assets Acquired (Top Smart) | Item | Fair Value (HK$ Thousand) | | :--- | :--- | | Total Identifiable Net Assets | 972 | | Goodwill | 842 | | Total Consideration to be Settled | 1,814 | (b) Acquisition of Assets Through Acquisition of a Subsidiary – Aspire Holding Limited ("Aspire Holding") - The acquisition of the entire equity interest and shareholder loans in Aspire Holding was completed on 1 April 2025 for a total consideration of HK$27,738 thousand, paid by issuing shares and promissory notes[66][67] - Aspire Holding holds two properties in Shenzhen, China, and this acquisition is considered an asset acquisition aimed at expanding property management services and diversifying the China property investment portfolio[67] Fair Value of Identifiable Net Assets Acquired (Aspire Holding) | Item | Fair Value (HK$ Thousand) | | :--- | :--- | | Investment Properties | 54,769 | | Net Liabilities Acquired by the Group | (1,333) | | Add: Transferred Shareholder Loans | 26,771 | | Total Consideration to be Settled | 25,438 | 24. Disposal of a Subsidiary During the period, the Group disposed of its entire equity interest in Jiangsu Weilai Dongnan Technology Co., Ltd., a wholly-owned subsidiary, for a cash consideration of HK$1, recognizing a gain on disposal of HK$1,970 thousand - The disposal of the entire equity interest in Jiangsu Weilai Dongnan Technology Co., Ltd., a wholly-owned subsidiary, was completed on 13 June 2025 for a cash consideration of HK$1[69] - A gain on disposal of a subsidiary of HK$1,970 thousand and a release of exchange reserve of HK$568 thousand were recognized[69] 25. Events After the Reporting Period After the reporting period, the Group redeemed all its corporate bond investments - On 11 July 2025, the Group redeemed all its corporate bond investments, totaling approximately HK$23,713 thousand, including a principal amount of HK$20,000 thousand and accrued interest of approximately HK$3,713 thousand[70] Management Discussion and Analysis Financial Performance During the period, the Group's revenue significantly increased by 146.9% to HK$58,254 thousand, and net profit attributable to owners of the company rose to HK$17,703 thousand, primarily driven by increased revenue, reversal of credit loss provision for corporate bonds, and fair value gains on financial assets, partially offset by expanded fair value losses on investment properties - Revenue for the period was HK$58,254 thousand, representing a 146.9% increase from HK$23,598 thousand in the prior period[71] - Net profit attributable to owners of the company was approximately HK$17,703 thousand (prior period: HK$13,089 thousand)[72] - The increase in net profit was primarily attributable to increased revenue, a reversal of credit loss provision for corporate bond investments of HK$8,000 thousand, and an increase in fair value of financial assets at fair value through profit or loss of approximately HK$58,600 thousand[72] - Fair value losses on investment properties amounted to approximately HK$38,600 thousand (prior period: approximately HK$17,100 thousand)[72] Business Review The Group's businesses encompass property investment, hotel operations, securities trading and investment, financing services, securities brokerage, and asset management, having expanded its presence in the hotel and property sectors through acquisitions and launched its asset management business during the period Property Investment, Management and Agency - As of 30 June 2025, the Group's investment property portfolio had a market value of approximately HK$1,091,585 thousand, covering residential and commercial properties in various cities in Hong Kong and China[74][75] - The acquisition of Aspire Holding Limited, which owns and manages two properties in Shenzhen, China, was completed during the period[76] - Rental income of approximately HK$3,199 thousand (prior period: HK$3,615 thousand) and fair value losses on investment properties of approximately HK$38,572 thousand were recorded during the period[77] - Property agency services commission income was HK$9,788 thousand (2024: HK$4,066 thousand) and property management services income was HK$3,962 thousand (2024: HK$1,284 thousand)[77] Hotel Operations and Related Businesses - The Group operates and manages Hampton by Hilton Changzhi Luzhou and Junting Hotel Ronghuitong, and provides food and beverage and cleaning services[78] - The segment recorded revenue of approximately HK$35,888 thousand (prior period: HK$10,203 thousand) and a segment loss of approximately HK$7,348 thousand (prior period: HK$1,318 thousand) during the period[78] Securities Trading and Investment Business - The Group's securities trading portfolio includes equity securities of seven companies listed on the Stock Exchange of Hong Kong, primarily classified as financial assets at fair value through other comprehensive income or at fair value through profit or loss[79][80] Securities Trading and Investment Portfolio | Classification | 2025 Market Value (HK$ Thousand) | 31 December 2024 Market Value (HK$ Thousand) | Fair Value Gain/(Loss) for the Period (HK$ Thousand) | | :--- | :--- | :--- | :--- | | At Fair Value Through Other Comprehensive Income | 10,406 | 9,909 | 497 | | At Fair Value Through Profit or Loss | 144,462 | 115,321 | 58,639 | | Total | 154,868 | 125,230 | 59,136 | Performance and Prospects of Major Investee Companies Shankao Holdings Group - Shankao Holdings Group's revenue increased by 11.7% to HK$5,580.9 million in FY2024, with profit after tax increasing by 39.9% to HK$692.8 million[83] - As of 30 June 2025, the closing price was HK$15.84 (31 December 2024: HK$6.49)[83] Shanghai Optics - Shanghai Optics Group's revenue increased by 11.1% to RMB1,084.2 million in the first half of 2025, with profit after tax increasing by 30.7% to RMB272.9 million[84] - As of 30 June 2025, the closing price was HK$37.4 (31 December 2024: HK$24.90)[85] Provision of Financing Services - The Group provides secured and unsecured loan financing services through its wholly-owned subsidiary, World Finance, primarily to Hong Kong listed companies and merchants engaged in property investment[86][87] - Interest income from the money lending business for the period was approximately HK$3,791 thousand, a 14.4% decrease from the prior period[88] - As of 30 June 2025, total loans and interest receivables amounted to HK$147,084 thousand, with loans granted to five borrowers at annual interest rates ranging from 5.0% to 7.7%[89] Top 5 Borrowers by Loans and Interest Receivables | Rank | Borrower | Carrying Amount of Loans and Interest Receivables (HK$ Million) | Percentage of Total (%) | | :--- | :--- | :--- | :--- | | 1. | Corporate Borrower A | 94.3 | 72.5 | | 2. | Individual Borrower A | 17.1 | 13.1 | | 3. | Individual Borrower C | 10.1 | 7.8 | | 4. | Individual Borrower B | 8.5 | 6.6 | | 5. | Corporate Borrower B | – | – | - The Group has adopted a credit policy and procedures manual providing clear guidelines for credit assessment and loan granting, and regularly assesses borrowers' repayment ability and default risk[97][102] - As of 30 June 2025, the credit loss provision for loans and interest receivables was approximately HK$17,050 thousand, with an additional provision of HK$198 thousand recognized during the period[103][106] Securities Brokerage Business - The Group conducts securities brokerage business through Future World Securities, engaging in Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities[107] - No revenue was generated from securities brokerage business during the period, and a loss of approximately HK$597 thousand (prior period: HK$608 thousand) was recorded[107] Asset Management - The Group completed the acquisition of Top Smart Investment Holdings on 28 January 2025, holding the entire equity interest in Top Smart Fund Management, which engages in Type 9 (asset management) regulated activities[108] - As of 30 June 2025, Top Smart Fund Management had approximately HK$208,900 thousand in assets under management[108] - The asset management segment generated revenue of approximately HK$1,626 thousand and recorded a segment loss of approximately HK$147 thousand during the period[108] Liquidity, Financial Resources and Capital As of 30 June 2025, the Group's cash and bank balances decreased, total borrowings slightly declined, and the gearing ratio improved, while the current ratio slightly decreased Liquidity and Financial Ratios | Indicator | 30 June 2025 (HK$ Thousand) | 31 December 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 57,144 | 99,275 | Decreased 42.5% | | Total Borrowings | 695,904 | 728,157 | Decreased 4.4% | | Gearing Ratio | 77.96% | 85.86% | Improved | | Net Assets | 892,635 | 848,030 | Increased 5.3% | | Total Current Assets | 430,801 | 495,388 | Decreased 13.0% | | Total Current Liabilities | 417,408 | 436,277 | Decreased 4.3% | | Current Ratio | 1.03 | 1.14 | Decreased | | Finance Costs | 19,818 | 9,204 | Increased 115.3% | Pledge of Assets As of 30 June 2025, the Group had pledged investment properties and certain financial assets as collateral for bank borrowings and other borrowings - Investment properties with a carrying amount of HK$549,000 thousand were pledged as collateral for bank borrowings[113] - Investment properties with a carrying amount of HK$246,000 thousand and equity investments at fair value through other comprehensive income of approximately HK$3,590 thousand were pledged as collateral for other borrowings[113] Treasury Policy The Group adopts a prudent treasury policy, with the Board closely managing risks and ensuring sufficient financial resources to support business activities - The Group adopts a prudent treasury policy, with the Board closely managing business-related risks and ensuring sufficient financial resources[114] Capital Structure As of 30 June 2025, the company's issued ordinary shares increased to 301,507,892 shares, primarily used to settle promissory notes and acquire subsidiaries - As of 30 June 2025, the company had 301,507,892 issued ordinary shares (31 December 2024: 253,890,982 shares)[115] - A total of 47,616,910 ordinary shares were allotted during the period to settle promissory notes and acquire Aspire Holding and Top Smart Investment Holdings Limited[115] Foreign Exchange Management The Group's foreign currency risk is minimal as most business transactions, assets, and liabilities are denominated in Hong Kong dollars; currently, no foreign currency hedging policy is in place, but it will be closely monitored, and hedging considered if necessary - The Group's foreign currency risk is minimal, as most business transactions, assets, and liabilities are denominated in Hong Kong dollars[116] - No foreign currency hedging policy is currently in place, but it will be closely monitored, and hedging considered if necessary[116] Significant Acquisitions and Disposals During the period, the Group completed a property acquisition and receivable transfer, as well as the acquisition of Aspire Holding Acquisition of Property and Transfer of Receivables - The acquisition of the property at Flat B, 28th Floor, Scenic Garden, 20 Lyttelton Road, Hong Kong, for a consideration of HK$88,000 thousand, and the transfer of certain receivables of HK$23,391 thousand, were completed on 30 June 2025[117][118] Acquisition of Aspire Holding - An agreement was entered into on 27 February 2025 to acquire the entire equity interest and shareholder loans in Aspire Holding for considerations of HK$1,142 thousand and HK$26,596 thousand, respectively[119] Future Plans for Material Investments and Capital Assets Other than what is disclosed in this announcement, the Group had no future plans for material investments and capital assets as of 30 June 2025 - Other than what is disclosed in this announcement, the Group had no future plans for material investments and capital assets as of 30 June 2025[120] Material Investments Held Other than what is disclosed in this announcement, the Group had no other material investments requiring disclosure during the period - Other than what is disclosed in this announcement, the Group had no other material investments requiring disclosure during the period[121] Litigation and Contingent Liabilities As of 30 June 2025, the Group had no material litigation or contingent liabilities - As of 30 June 2025, the Group had no material litigation or contingent liabilities[122] Events After Reporting Period Other than what is disclosed in Note 25 to the Condensed Consolidated Interim Financial Statements, there were no other significant events after the period - Other than what is disclosed in Note 25 to the Condensed Consolidated Interim Financial Statements, there were no other significant events after the period[123] Employees and Remuneration Policy As of 30 June 2025, the Group had 594 employees, with total staff costs significantly increasing, and remuneration policy based on industry practice and individual performance - As of 30 June 2025, the Group had 594 employees in Hong Kong and China (31 December 2024: 597 employees)[124] - Total staff costs (including directors' and chief executive's emoluments) for the period were approximately HK$10,183 thousand (2024: HK$4,051 thousand)[124] Interim Dividends The Board of Directors has resolved not to declare any interim dividend for the current period - The Board of Directors has resolved not to declare any interim dividend for the current period[125] Prospects The Group maintains cautious optimism regarding the hotel and property market prospects, anticipating recovery in domestic tourism and first- and second-tier city real estate markets, with asset management business synergies accelerating its transformation into a comprehensive financial services provider, committed to diversifying revenue streams for sustainable growth - The Group has significantly expanded its hotel presence in Shanxi through the operation of two hotels, expecting increased occupancy rates in second-tier city hotels[126] - Through subsidiary acquisitions, the property investment portfolio has expanded to key regions in China, and the Group will continue to explore opportunities for stable rental income and capital appreciation[127] - Government stimulus measures and accommodative monetary policies are expected to support China's real estate sector, while Hong Kong's luxury residential prices are stabilizing, and the leasing market remains competitive[127][128] - The acquisition of Top Smart Investment Holdings is expected to generate synergies with existing securities and financial services businesses, accelerating the Group's transformation into a comprehensive financial services provider in Hong Kong[129] Standard Code for Securities Transactions by Directors The company has adopted the Standard Code for Securities Transactions by Directors as set out in Appendix C3 of the Listing Rules, and directors have confirmed compliance throughout the period - The company has adopted the Standard Code for Securities Transactions by Directors as set out in Appendix C3 of the Listing Rules, and directors have confirmed compliance throughout the period[130] Corporate Governance The Board is committed to maintaining high standards of corporate governance practices and confirms compliance with the code provisions of the Corporate Governance Code throughout the period - The Board is committed to maintaining high standards of corporate governance practices and confirms compliance with the code provisions of the Corporate Governance Code throughout the period[131] Purchase, Sale or Redemption of Listed Securities Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the period - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the period[132] Audit Committee The Audit Committee has reviewed the unaudited interim results for the period - The Audit Committee has reviewed the unaudited interim results for the period in accordance with the relevant code provisions of the Listing Rules[133] By Order of the Board The Board of Directors comprises five executive directors and three independent non-executive directors - The Board of Directors comprises five executive directors (Ms. Wang Qian, Mr. Liang Jian, Mr. Yu Qingrui, Mr. Su Wei and Mr. Lai Long Wai) and three independent non-executive directors (Mr. He Yi, Mr. Guo Yaoli and Mr. Huang Zhengzhong)[134]