弘阳地产(01996) - 2025 - 中期业绩

2025 Interim Results Summary Hongyang Group Co., Ltd. announced its unaudited interim results for the six months ended June 30, 2025, showing the company faces severe challenges with significant declines in contracted sales and revenue, and a substantial net loss, with the board not recommending an interim dividend 2025 Interim Key Financial Data | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Contracted Sales | 2,870.0 | 4,812.0 | -40.4 | | Revenue | 2,712.3 | 6,006.4 | -54.8 | | Commercial and Hotel Operation Revenue | 167.0 | 283.3 | -41.1 | | Gross Loss / Gross Profit | (222.1) | 532.0 | -141.7 | | Net Loss | (2,320.6) | (1,710.3) | +35.7 | | Interim Dividend | Nil | Nil | - | Condensed Consolidated Financial Statements This section presents the Group's condensed consolidated financial statements, including the statement of profit or loss and other comprehensive income, and the statement of financial position, reflecting significant declines in revenue and profitability, and worsening liquidity Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the company's revenue significantly decreased by 54.8% to RMB 2,712.3 million, turning from a gross profit to a gross loss of RMB 222.1 million, with net loss expanding to RMB 2,320.6 million due to increased cost of sales, fair value losses on investment properties, and increased share of losses from joint ventures/associates Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 2,712,287 | 6,006,436 | | Cost of sales | (2,934,402) | (5,474,410) | | Gross (loss) / profit | (222,115) | 532,026 | | Other income and gains | 232,607 | 8,324 | | Selling and distribution expenses | (76,281) | (157,605) | | Administrative expenses | (61,253) | (140,810) | | Other expenses | (53,980) | (258,508) | | Net fair value loss on investment properties | (19,660) | (412,136) | | Finance costs | (540,165) | (826,715) | | Share of profits and losses of joint ventures | (624,754) | (119,925) | | Share of profits and losses of associates | (610,003) | (209,519) | | Loss before tax | (1,975,604) | (1,584,868) | | Tax | (344,977) | (125,446) | | Loss and total comprehensive loss for the period | (2,320,581) | (1,710,314) | | Loss attributable to owners of the parent | (1,883,732) | (1,784,029) | | Loss attributable to non-controlling interests | (436,849) | 73,715 | | Basic and diluted loss per share (RMB cents) | (56) | (53) | Condensed Consolidated Statement of Financial Position As of June 30, 2025, total assets and liabilities decreased, but net current liabilities expanded to RMB 6,771.1 million, indicating persistent liquidity pressure, with total equity significantly reduced due to the period's losses Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current assets | | | | Investment properties | 10,497,665 | 10,748,460 | | Investments in joint ventures | 1,965,649 | 2,666,125 | | Investments in associates | 5,025,990 | 5,673,189 | | Total non-current assets | 17,764,215 | 19,394,843 | | Current assets | | | | Properties under development | 6,387,735 | 10,244,722 | | Completed properties held for sale | 8,844,852 | 7,569,461 | | Cash and bank balances | 824,297 | 1,242,346 | | Total current assets | 36,539,876 | 40,610,531 | | Current liabilities | | | | Trade and bills payables | 6,845,023 | 6,952,638 | | Contract liabilities | 3,455,470 | 5,645,521 | | Interest-bearing bank and other borrowings (current) | 6,049,473 | 6,852,939 | | Senior notes (current) | 10,566,954 | 10,609,906 | | Total current liabilities | 43,310,979 | 46,866,126 | | Net current liabilities | (6,771,103) | (6,255,595) | | Non-current liabilities | | | | Interest-bearing bank and other borrowings (non-current) | 4,073,222 | 3,683,716 | | Total non-current liabilities | 6,199,127 | 5,965,534 | | Net assets | 4,793,985 | 7,173,714 | | Total equity | 4,793,985 | 7,173,714 | Notes to the Condensed Consolidated Financial Information This section provides detailed notes to the condensed consolidated financial information, covering company background, accounting policies, segment data, revenue breakdown, finance costs, taxation, dividends, loss per share, and trade receivables/payables Company Information Hongyang Group Co., Ltd. was incorporated in the Cayman Islands, listed on the HKEX main board on July 12, 2018, primarily engaging in property development and management, commercial property investment and operation, and hotel operation, with Mr. Zeng Huansha as the ultimate controlling party - The company is an investment holding company, with principal activities including property development and management services, commercial property investment and operation, and hotel operation[6] - The ultimate controlling party is Mr. Zeng Huansha, an executive director of the company[6] Basis of Preparation and Going Concern The condensed consolidated financial information is prepared in accordance with IAS 34; the company faces severe going concern uncertainties, including net loss, current liabilities exceeding current assets by approximately RMB 6.77 billion, and defaults on interest-bearing bank borrowings and senior notes, with management's liquidity improvement plans subject to significant uncertainty - The Group recorded a net loss of approximately RMB 2.32 billion for the period ended June 30, 2025[8] - As of June 30, 2025, the Group's current liabilities exceeded its current assets by approximately RMB 6.77 billion[8] - Interest-bearing bank and other borrowings of approximately RMB 2.52 billion and senior notes and accrued interest of approximately RMB 13.48 billion were in default, entitling lenders to demand immediate repayment[8] - The company has formulated several plans to improve liquidity, including negotiating repayment extensions with banks, seeking new loans, accelerating property sales, expediting sales proceeds collection, controlling costs, and disposing of equity interests, but the successful implementation of these plans is subject to significant uncertainty[9][10] Changes in Accounting Policies and Disclosures Revised IFRS accounting standards, including IAS 21 amendments on lack of exchangeability, were first adopted this period; these amendments have no material impact on the condensed consolidated financial statements as the Group's transaction currencies are all exchangeable - The amendments to IAS 21, concerning the assessment of currency exchangeability and estimation of spot exchange rates, were first adopted[13] - These amendments have no material impact on the condensed consolidated financial statements as the Group's transaction currencies are all exchangeable[13] Operating Segment Information The Group has three reportable operating segments: property development and management services, commercial property investment and operation, and hotel operation, with all revenue and major non-current assets derived from mainland China; property development and management services saw significant declines in both revenue and results, commercial property investment and operation revenue also decreased, and hotel operation generated no revenue - The Group has three reportable operating segments: property development and management services, commercial property investment and operation, and hotel operation[14] - All revenue from external customers and major non-current assets are derived from mainland China, with no reportable geographical segments[15] Segment Revenue and Results (For the six months ended June 30) | Segment | 2025 Revenue (RMB thousand) | 2024 Revenue (RMB thousand) | 2025 Results (RMB thousand) | 2024 Results (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Property development and management services | 2,545,316 | 5,723,157 | (1,384,283) | (439,503) | | Commercial property investment and operation | 166,971 | 270,104 | (62,500) | (290,603) | | Hotel operation | – | 13,175 | (902) | 1,408 | | Total | 2,712,287 | 6,006,436 | (1,447,685) | (728,698) | Segment Assets and Liabilities (As of June 30) | Segment | June 30, 2025 Assets (RMB thousand) | December 31, 2024 Assets (RMB thousand) | June 30, 2025 Liabilities (RMB thousand) | December 31, 2024 Liabilities (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Property development and management services | 45,873,971 | 46,368,219 | 47,736,659 | 51,162,038 | | Commercial property investment and operation | 8,217,834 | 13,308,555 | 1,701,293 | 1,604,175 | | Hotel operation | 95,294 | – | 5,583 | – | | Total | 54,304,091 | 60,005,374 | 49,510,106 | 52,831,660 | Revenue, Other Income and Gains The Group's total revenue decreased by 54.8% year-on-year to RMB 2,712.3 million, primarily due to a significant 55.5% drop in property sales revenue, while other income and gains increased substantially, mainly from net reversal of impairment losses on financial assets and gain on settlement of borrowings Revenue Analysis (For the six months ended June 30) | Revenue Source | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue from contracts with customers | 2,548,408 | 5,746,877 | | Gross rental income | 163,879 | 259,559 | | Total | 2,712,287 | 6,006,436 | Revenue from Contracts with Customers Breakdown (H1 2025) | Type of Goods or Services | Property Development and Management Services (RMB thousand) | Commercial Property Investment and Operation (RMB thousand) | Hotel Operation (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Property sales | 2,533,070 | – | – | 2,533,070 | | Project management services | 12,246 | – | – | 12,246 | | Others | – | 3,092 | – | 3,092 | | Total | 2,545,316 | 3,092 | – | 2,548,408 | Other Income and Gains Analysis (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Bank interest income | 994 | 4,200 | | Net reversal of impairment losses on financial assets | 143,375 | – | | Gain on settlement of borrowings | 83,435 | – | | Total | 232,607 | 8,324 | - Gain on settlement of borrowings of RMB 83.4 million was primarily due to pledged investment properties used to settle defaulted borrowings[23] Items Deducted From / (Credited to) Loss Before Tax (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of inventories sold | 2,521,297 | 5,043,536 | | Net impairment losses recognized on properties under development and completed properties held for sale | 354,683 | 300,339 | | Net (reversal of) / impairment losses recognized on financial assets | (143,375) | 201,597 | | Net fair value loss on investment properties | 19,660 | 412,136 | | Share of profits and losses of joint ventures | 624,754 | 119,925 | | Share of profits and losses of associates | 610,003 | 209,519 | | Employee benefit expenses | 62,928 | 87,041 | Finance Costs For the six months ended June 30, 2025, finance costs decreased by 34.7% year-on-year to RMB 540.2 million, primarily due to reduced exchange losses on USD borrowings and a decrease in total borrowings Finance Costs Analysis (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest on bank and other borrowings and senior notes | 757,291 | 923,372 | | Interest expense on contract liabilities | 20,625 | 147,946 | | Less: Net foreign exchange (gain) / loss on financing activities | (48,384) | 77,559 | | Less: Interest capitalized | (204,953) | (347,631) | | Total | 540,165 | 826,715 | Taxation The Group's taxation includes corporate income tax and land appreciation tax; while income tax slightly decreased, a significant increase in land appreciation tax provision and additional expenses from prior year's insufficient land appreciation tax provision led to a substantial rise in total tax expenses - Mainland China subsidiaries are subject to corporate income tax at a rate of 25%, and land appreciation tax is levied at progressive rates from 30% to 60%[26][27] Taxation Analysis (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current tax: Corporate income tax | 32,274 | 62,537 | | Current tax: Land appreciation tax | 68,598 | 45,956 | | Under-provision in prior years: Land appreciation tax | 201,026 | – | | Deferred tax | 43,079 | 16,953 | | Total tax expense for the period | 344,977 | 125,446 | Dividends The Board has resolved not to declare any interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025[28] Loss Per Share Attributable to Owners of the Parent For the six months ended June 30, 2025, basic and diluted loss per share attributable to owners of the parent expanded to RMB 56 cents, up from RMB 53 cents in the prior period, with diluted loss per share being the same as basic loss per share due to the anti-dilutive effect of share options Loss Per Share Calculation (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss attributable to owners of the parent (RMB thousand) | (1,883,732) | (1,784,029) | | Weighted average number of ordinary shares in issue (shares) | 3,338,898,000 | 3,338,614,000 | | Basic and diluted loss per share (RMB cents) | (56) | (53) | - The share option scheme expired and terminated in the second half of the year ended December 31, 2024, with no outstanding share options thereafter[31] Trade and Bills Receivables As of June 30, 2025, total trade and bills receivables significantly decreased to RMB 2,891 thousand from RMB 9,180 thousand on December 31, 2024, with the company's directors considering expected credit losses immaterial and no loss allowance recognized Ageing Analysis of Trade and Bills Receivables (RMB thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 month | – | 8,885 | | 6 to 12 months | 2,891 | 220 | | Total | 2,891 | 9,180 | - The company applies the simplified approach to provide for expected credit losses and considers the expected credit losses on these balances to be immaterial[32] Trade and Bills Payables As of June 30, 2025, total trade and bills payables slightly decreased to RMB 6,845,023 thousand from December 31, 2024, with over 80% of payables due in more than one year Ageing Analysis of Trade and Bills Payables (RMB thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 year | 1,255,974 | 1,573,609 | | Over 1 year | 5,589,049 | 5,379,029 | | Total | 6,845,023 | 6,952,638 | - Trade payables are unsecured and interest-free, generally settled based on construction progress[33] Management Discussion and Analysis This section provides management's review of the Group's performance and financial position for the period, including an overview of the operating environment, business segment performance, financial results, and liquidity, along with future outlook and strategies H1 2025 Review and Outlook In H1 2025, China's economy remained stable, with the real estate market moving towards stabilization under policy adjustments, yet showing divergence as first-tier cities stabilized while third- and fourth-tier cities remained weak; the company adhered to its "preserve assets, reduce debt, control risks" strategy, successfully delivering 12 batches of new homes, and anticipates continued loose real estate policies in H2, focusing on destocking, accelerating cash collection, debt resolution, and ensuring delivery - In H1 2025, China's GDP grew by 5.3% year-on-year, and the real estate market progressed towards stabilization under policy adjustments, though market differentiation persisted, with first-tier cities showing stability while third- and fourth-tier cities had not yet bottomed out[34][35] H1 2025 Real Estate Market Data | Indicator | H1 2025 | YoY Change (%) | | :--- | :--- | :--- | | Sales area of new commercial housing | 458.51 million sq.m. | -3.5 | | Sales area of residential housing | - | -3.7 | | Sales value of new commercial housing | RMB 4.42 trillion | -5.5 | | Sales value of residential housing | - | -5.2 | | Commercial housing for sale at end of June | 769.48 million sq.m. | Decreased by 4.79 million sq.m. from end of May | - The company adhered to its "preserve assets, reduce debt, control risks" operating strategy, focusing on dynamic project cash flow and asset management, and successfully delivered 12 batches totaling 2,453 new homes, covering over 380,000 sq.m.[36] - Looking ahead to H2 2025, the real estate policy environment is expected to remain loose, and the company will actively respond to policies, focusing on destocking, accelerating cash collection, debt resolution, and ensuring delivery, while deepening asset optimization and debt restructuring[37][38][39] Business Review The Group's real estate sales decreased by 40.4% year-on-year in the first half, with total land reserve GFA of approximately 7.475 million sq.m.; commercial operation revenue declined by 38.2%, and hotel operation generated no revenue due to business suspension Property Sales For the six months ended June 30, 2025, the Group achieved contracted sales of approximately RMB 2.87 billion, a 40.4% decrease from the prior period Contracted Sales Details (For the six months ended June 30, 2025) | Region | Total Contracted Sales GFA (sq.m.) | Contracted Sales Value (RMB thousand) | Average Contracted Sales Price (RMB/sq.m.) | | :--- | :--- | :--- | :--- | | Nanjing | 39,946 | 919,286 | 23,013 | | Xuzhou | 33,601 | 230,542 | 6,861 | | Ningbo | 16,548 | 291,603 | 17,622 | | Suzhou | 16,057 | 227,175 | 14,148 | | Total | 213,600 | 2,870,445 | 13,438 | Land Reserve As of June 30, 2025, the Group's total land reserve GFA was approximately 7,475,064 sq.m., comprising 2,542,866 sq.m. of completed properties, 1,025,377 sq.m. of leasable area held for investment, and 3,906,821 sq.m. of properties under development Land Reserve Overview (As of June 30, 2025) | Category | Total GFA (sq.m.) | | :--- | :--- | | Completed properties | 2,542,866 | | Leasable area held for investment | 1,025,377 | | Properties under development | 3,906,821 | | Total Land Reserve | 7,475,064 | - Land reserves are distributed across multiple cities, including Nanjing, Changzhou, Chengdu, Foshan, Hefei, Nanchang, Nantong, Suzhou, Wuhan, Xuzhou, and Chongqing[43][44][45][46][47][48][49][50][51][52][53][54][55] Commercial Operations For the six months ended June 30, 2025, the Group's commercial operation revenue was approximately RMB 167.0 million, a 38.2% decrease year-on-year, primarily due to the closure of some stores - Commercial operation revenue decreased by 38.2% year-on-year to RMB 167.0 million[56] - The decrease in revenue was primarily due to the closure of some stores[57] Hotel Operations For the six months ended June 30, 2025, the Group had no hotel operation revenue due to the suspension of hotel operations during the period - There was no hotel operation revenue during the period due to the suspension of hotel operations[58][59] Financial Review The Group experienced a significant revenue decline, a shift from gross profit to gross loss, and an expanded net loss; while selling and administrative expenses decreased notably, share of losses from joint ventures and associates increased substantially, finance costs decreased, and tax expenses rose due to increased land appreciation tax provisions Recognized Revenue Details (For the six months ended June 30) | Revenue Source | 2025 (RMB thousand) | % of Total | 2024 (RMB thousand) | % of Total | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Property sales | 2,545,316 | 93.8 | 5,723,157 | 95.3 | -55.5 | | Commercial operations | 166,971 | 6.2 | 270,104 | 4.5 | -38.2 | | Hotel operations | – | – | 13,175 | 0.2 | -100.0 | | Total | 2,712,287 | 100.0 | 6,006,436 | 100.0 | -54.8 | - Cost of sales decreased by 46.4% year-on-year to RMB 2,934.4 million, primarily due to a reduction in the number of projects delivered during the period[62] - A gross loss of RMB 222.1 million was recorded, with a gross loss margin of 8.2%, turning from a profit to a loss, mainly due to market factors leading to a decrease in selling prices[63][64] - Fair value loss on investment properties was approximately RMB 19.7 million, primarily due to a decline in overall capital value[65] - Selling and distribution expenses decreased by 51.6% to RMB 76.3 million, and administrative expenses decreased by 56.5% to RMB 61.3 million, mainly due to fewer new property projects and enhanced cost control[66][67] - Share of losses from joint ventures and associates expanded to RMB 1,234.8 million, primarily due to increased losses from these entities[68] - Finance costs decreased by 34.7% to RMB 540.2 million, mainly due to reduced exchange losses on USD borrowings and a decrease in total borrowings[69] - Total tax expense for the period was RMB 344.977 million, a significant increase from RMB 125.446 million in the prior period, primarily due to land appreciation tax provisions and under-provision in prior years[70][28] - The Group's loss before tax was RMB 1,975.6 million, an increase from RMB 1,584.9 million in the prior period[71] Liquidity, Financial Resources and Capital As of June 30, 2025, the Group's cash and bank balances decreased, and total borrowings slightly declined but remained high; both net gearing ratio and debt-to-asset ratio worsened, while current ratio and cash-to-short-term debt ratio remained low, indicating significant liquidity pressure Cash Position (As of June 30) | Indicator | June 30, 2025 (RMB billion) | December 31, 2024 (RMB billion) | | :--- | :--- | :--- | | Cash and bank balances | 0.82 | 1.24 | | Restricted cash | 0.48 | 0.58 | | Pledged deposits | 0.02 | 0.02 | Total Borrowings Repayment (As of June 30) | Borrowing Type | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest-bearing bank and other borrowings (total) | 10,122,695 | 10,536,655 | | Senior notes (repayable on demand) | 10,566,954 | 10,609,906 | | Total Borrowings | 20,689,649 | 21,146,561 | - Approximately RMB 12.06 billion of borrowings were denominated in USD, with the remainder in RMB, and most bank and other borrowings bore interest at floating rates[75] - Assets of approximately RMB 14.62 billion were pledged to banks and other financial institutions[75] Debt Ratios (As of June 30) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net gearing ratio | 414.4% | 277.5% | | Debt-to-asset ratio | 91.2% | 88.0% | | Current ratio | 0.84 times | 0.87 times | | Cash to short-term debt ratio | 0.05 times | 0.07 times | - Capital and property development expenditure commitments amounted to approximately RMB 2.71 billion[77] Corporate Governance and Other Information This section details the Group's corporate governance practices, including material acquisitions and disposals, employee and remuneration policies, post-reporting period events, dividend policy, securities transactions, foreign currency risk, legal matters, and audit committee review Material Acquisitions and Disposals During the reporting period, the Group undertook several material disposals, including the sale of parking space titles or usage rights to Hongyang Services Group Co., Ltd., and the disposal of equity interests in three target companies, all approved by shareholders - The company entered into a framework agreement with Hongyang Services Group Co., Ltd. for the transfer of parking space titles or usage rights, with a total consideration of approximately RMB 230.92 million[78] - Equity interests in target companies A, B, and C held by Chengdu Hongyang Jinxing, Xuzhou Hongqi, and Nanjing Hongtai Puyang were disposed of for total considerations of approximately RMB 142.4 million, RMB 73.95 million, and RMB 41.34 million, respectively[79] - These disposals were approved at an extraordinary general meeting of shareholders on May 21, 2025[80] Employees and Remuneration Policy As of June 30, 2025, the Group had 588 employees, with 514 in property development and 74 in commercial property operations; remuneration policy is based on market levels, individual performance, and experience, offering career development, medical benefits, and specialized training Employee Distribution (As of June 30, 2025) | Business | Number of Employees | | :--- | :--- | | Property development | 514 | | Commercial property operations | 74 | | Total | 588 | - Remuneration is primarily determined by prevailing market salary levels, individual employee performance, and work experience, with career development opportunities, medical benefits, and specialized training programs also provided[82] Events After Reporting Period The Company did not undertake any significant events after June 30, 2025 - The Company did not undertake any significant events after June 30, 2025[83] Interim Dividend The Board has resolved that the Company will not declare any interim dividend for the reporting period - The Board has resolved that the Company will not declare any interim dividend for the reporting period[84] Purchase, Sale or Redemption of the Company's Listed Securities During the reporting period, the Group neither purchased, sold, nor redeemed any of the Company's listed securities, and as of the end of the reporting period, the Company held no treasury shares - During the reporting period, the Group neither purchased, sold, nor redeemed any of the Company's listed securities[85] - As of the end of the reporting period, the Company held no treasury shares[85] Foreign Currency Risk The Group primarily operates in China, with the vast majority of transactions denominated and settled in RMB - The Group primarily operates in China, with the vast majority of transactions denominated and settled in RMB[86] Material Legal and Litigation Matters A winding-up petition was filed against the Company on February 14, 2024, involving financial obligations of no less than USD 228.5 million, with the hearing adjourned to September 22, 2025; the company is actively pursuing restructuring and appreciates creditor support - A winding-up petition was filed against the Company on February 14, 2024, involving financial obligations of no less than USD 228.5 million[87] - The hearing for the petition has been adjourned to September 22, 2025[87] - The High Court has not yet issued a winding-up order against the Company, which will continue to advance its restructuring in an orderly manner[87] Corporate Governance The Group has adopted the HKEX Corporate Governance Code and complied with all applicable code provisions during the reporting period, except for the unseparated roles of Chairman and Chief Executive Officer; the Board believes Mr. Zeng Huansha's dual role aids business planning and will be regularly reviewed - The Company has adopted the Corporate Governance Code of the HKEX[88] - During the reporting period, the Company complied with all applicable code provisions, except for the unseparated roles of Chairman and Chief Executive Officer[88][89] - Mr. Zeng Huansha serves as both the Chairman of the Board and the Chief Executive Officer, an arrangement the Board believes facilitates business planning and will be regularly reviewed[89] Standard Securities Dealing Code for Directors of Listed Issuers The Company has adopted the Standard Securities Dealing Code for Directors of Listed Issuers, and following inquiry, directors confirmed compliance with the code throughout the reporting period - The Company has adopted the Standard Securities Dealing Code for Directors of Listed Issuers[90] - Directors confirmed compliance with the required standards set out in the Standard Code throughout the reporting period[90] Audit Committee Review of Interim Results The Audit Committee reviewed the Company's unaudited condensed consolidated interim results for the six months ended June 30, 2025, confirming compliance with all applicable accounting principles, standards, and requirements, and adequate disclosures - The Audit Committee has reviewed the Company's unaudited condensed consolidated interim results for the six months ended June 30, 2025[91] - The Audit Committee confirmed compliance with all applicable accounting principles, standards, and requirements, and that adequate disclosures have been made[91] Publication of Interim Results and Interim Report This announcement has been published on the HKEX and Company websites; the Company's interim report for the six months ended June 30, 2025, will be made available to shareholders and published on the aforementioned websites in due course - This announcement has been published on the HKEX website (www.hkexnews.hk) and the Company's website (www.rsunproperty.hk)[92](index=92&type=chunk) - The interim report will be made available to shareholders and published on the aforementioned websites in due course[92]