中国船舶租赁(03877) - 2025 - 中期业绩

Financial Summary Summary of Condensed Consolidated Statement of Profit or Loss For H1 2025, revenue grew 2.7% YoY to HKD 2.02 billion, while profit for the period declined 14.1% to HKD 1.15 billion due to increased tax expenses Summary of Condensed Consolidated Statement of Profit or Loss (For the six months ended June 30) | Metric | H1 2025 (HKD in thousands) | H1 2024 (HKD in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 2,017,965 | 1,965,771 | 2.7% | | Total Expenses | (833,297) | (1,095,844) | (24.0%) | | Operating Profit | 1,167,050 | 1,105,081 | 5.6% | | Profit for the Period | 1,151,157 | 1,339,860 | (14.1%) | | Basic Earnings Per Share | 0.179 | 0.216 | (17.1%) | | Diluted Earnings Per Share | 0.178 | 0.216 | (17.6%) | Summary of Condensed Consolidated Statement of Financial Position As of June 30, 2025, the company's balance sheet strengthened with total assets at HKD 42.2 billion and an improved debt-to-asset ratio Summary of Condensed Consolidated Statement of Financial Position (As of) | Metric | June 30, 2025 (HKD in thousands) | December 31, 2024 (HKD in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 42,200,612 | 43,920,995 | (3.9%) | | Total Liabilities | 27,496,286 | 29,622,959 | (7.2%) | | Total Equity | 14,704,326 | 14,298,036 | 2.8% | Selected Financial Ratios Profitability metrics such as ROA and net profit margin improved, while liquidity indicators showed a healthier balance sheet and lower leverage Selected Financial Ratios | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Return on Average Assets (ROA) | 5.4% | 4.8% | +0.6% | | Return on Average Equity (ROE) | 15.4% | 15.7% | -0.3% | | Average Cost of Interest-bearing Debt | 3.1% | 3.5% | -0.4% | | Net Profit Margin | 57.0% | 53.4% | +3.6% | | Debt-to-Asset Ratio | 65.2% | 67.5% | -2.3% | | Gearing Ratio | 1.7 times | 1.9 times | -0.2 times | - S&P Global Ratings and Fitch Ratings were both downgraded from A to A-, while Dagong Global Credit Rating maintained its AAA rating[5] Management Discussion and Analysis Industry Environment The international shipping market experienced an upward trend in H1 2025, though uncertainty looms for H2 amid expanding fleet capacity - In H1 2025, the international shipping market showed an upward trend, with the Clarkson Sea Index rising 17.7% from 21,621 USD/day in January to 25,453 USD/day in June[7] - The oil tanker market saw a slow rise, with the average Baltic Dirty Tanker Index (BDTI) for H1 decreasing by 21.3% year-over-year[7] - The bulk carrier market saw the average Baltic Dry Index (BDI) for H1 at 1,290 points, a year-over-year decrease of 29.7%[9] - LNG carrier freight rates were exceptionally weak, with the average spot freight for a 145,000 cubic meter LNG carrier declining by 86.2% year-over-year in H1[11] - Looking ahead to H2, global seaborne trade volume and turnover are projected to grow by 0.1% and 0.3% respectively, while fleet capacity is expected to increase by 4.3%[14] - The International Maritime Organization (IMO) has introduced the first mandatory "dual-track" emission reduction agreement to achieve net-zero emissions by 2050[16] - The Maritime Autonomous Surface Ships (MASS) Code will enter a voluntary implementation phase in 2025 and is scheduled to become mandatory in 2028[17] Review of Operations for the First Half of the Year The company adhered to its counter-cyclical strategy, achieving revenue growth but saw a profit decline due to new tax rules under OECD Pillar Two - The company adhered to its cross-cycle strategy of "investing counter-cyclically and operating pro-cyclically" to enhance the operational efficiency of its shipping business[18] - The decline in net profit was primarily due to the retrospective application of the OECD Pillar Two model rules, resulting in a tax expense of HKD 137.7 million[18] Key Financial Performance for H1 2025 | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Operating Revenue | HKD 2.018 billion | HKD 1.966 billion | +2.7% | | Net Profit | HKD 1.151 billion | HKD 1.340 billion | -14.1% | | Annualized ROE | 15.4% | 15.7% | -0.3% | | Annualized ROA | 5.4% | 4.8% | +0.6% | Maintaining Overall Fleet Size Stability and Enhancing Operational Attributes and High Value-Added Features - In H1, new shipbuilding orders for 6 vessels were signed with a contract value of USD 308 million, with 100% being mid-to-high-end models[19] - As of June 30, 2025, the fleet size was 143 vessels (121 in operation, 22 under construction), with an average age of approximately 4.13 years for operating vessels[20] - The average remaining lease term for charters of one year or more was 7.64 years, indicating a shift towards a higher-value, younger fleet structure[20] Further Strengthening Capital Management to Maintain Favorable Funding Costs and Balance Sheet Structure - As of the end of June 2025, the company's comprehensive financing cost was controlled at 3.1%, a reduction of 40 basis points from the beginning of the year[21] - As of June 30, 2025, the debt-to-asset ratio was 65.2%, a decrease of 2.3% from the end of last year[21] - The scale of interest-bearing borrowings was approximately HKD 25.55 billion, a decrease of 7.4% from the end of 2024[21] - Actively promoted the RMB 10 billion credit framework agreement with CSSC Finance Company Limited[22] Driving Quality and Efficiency Improvements Through Lean Management - Further improved the comprehensive risk management system by re-evaluating, refining, and expanding the three categories of risks[23] - Successfully selected for the S&P Global Sustainability Yearbook (China Edition) 2025 and listed on the Fortune China ESG Influence List for the third consecutive year[23] Outlook for the Second Half of the Year The company will focus on expanding its ship leasing business, managing asset risks, and controlling financing costs through new funding initiatives - The focus for H2 will be on expanding the ship leasing business, securing new ship orders, and enlarging the high-quality vessel asset portfolio[24] - Strengthen vessel asset monitoring, strictly control incremental risks, and proactively develop risk response plans[24] - Complete the establishment of a USD 3 billion Medium Term Note program and implement the RMB 10 billion credit agreement with CSSC Finance[24] - Continue to implement cross-currency financing and reduce comprehensive financing costs through measures like replacing high-interest loans and optimizing cash management[24] Seizing Opportunities to Continue Expanding the Ship Leasing Business - Continue to strive for new ship orders to expand the company's high-quality vessel asset portfolio, in line with market trends and company strategy[24] Strengthening Asset Risk Disposal Efforts - Prioritize risk control, enhance vessel asset monitoring, manage incremental risks, and prepare response plans for policy-related risks[24] Enhancing Control Over Comprehensive Financing Costs - Complete the establishment of a USD 3 billion Medium Term Note program and implement the RMB 10 billion credit agreement with CSSC Finance to secure project funding[24] - Continue to implement cross-currency financing and reduce comprehensive financing costs through various measures like replacing high-interest loans and optimizing cash management[24] Financial Review This section details the H1 2025 financial performance, explaining the decline in profit for the period while highlighting the stability of core business operations - The 14.1% year-over-year decline in profit for H1 2025 to HKD 1.15 billion was due to a combination of increased tax costs, non-recurring items, and lower results from joint ventures[38][39] - Operating profit excluding non-recurring items remained stable, at HKD 1.01 billion in 2025 compared to HKD 1.00 billion in 2024[38] Analysis of the Condensed Consolidated Statement of Profit or Loss - Total revenue increased by 2.7% year-over-year to HKD 2.02 billion, primarily driven by higher income from operating lease services[25] - Total expenses decreased by 24.0% year-over-year to HKD 833 million, mainly due to a 19.3% reduction in finance costs and bank charges[31] Revenue Revenue Breakdown (For the six months ended June 30) | Revenue Source | H1 2025 (HKD in thousands) | H1 2024 (HKD in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Shipping Integrated Services | 1,231,338 | 1,069,465 | 15.1% | | - Operating Lease Services | 1,208,824 | 1,047,123 | 15.4% | | - Ship Broking Services | 22,514 | 22,342 | 0.8% | | Financial Services | 786,627 | 896,306 | (12.2%) | | - Finance Lease Services | 549,995 | 619,906 | (11.3%) | | - Loan and Borrowing Services | 236,632 | 276,400 | (14.4%) | | Total | 2,017,965 | 1,965,771 | 2.7% | - Operating lease service revenue grew by 15.4%, mainly due to income generated from three new container ships added in H2 2024[27] - Financial services revenue decreased by 12.2%, primarily because finance lease and loan projects concluded in H2 2024 and H1 2025[28] Other Income and Other Net (Losses)/Gains - In H1 2025, other net losses amounted to HKD 17.6 million, mainly due to net foreign exchange losses[29] - In the same period of 2024, other net income was HKD 235.2 million, primarily from a HKD 150.7 million fee for early termination of a finance lease project and a HKD 56.4 million gain on the sale of vessels[29] Expenses Expense Breakdown (For the six months ended June 30) | Expense Item | H1 2025 (HKD in thousands) | H1 2024 (HKD in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs and Bank Charges | 416,021 | 515,642 | (19.3%) | | Depreciation | 297,993 | 280,936 | 6.1% | | Vessel Operating Costs | 188,209 | 136,582 | 37.8% | | Employee Benefit Expenses | 28,669 | 31,022 | (7.6%) | | Other Operating Expenses | 34,728 | 25,998 | 33.6% | | Impairment (Reversal)/Provision for Loans and Lease Receivables, net | (132,323) | 105,664 | (225.2%) | | Total | 833,297 | 1,095,844 | (24.0%) | - Finance costs and bank charges decreased by 19.3% year-over-year, with the average cost of interest-bearing debt dropping from 3.5% to 3.1%, reflecting an efficient financing strategy[32] - Vessel operating costs increased by 37.8%, mainly due to higher vessel repair and maintenance costs[34] - A net impairment reversal of HKD 132.3 million for loans and lease receivables was recorded, mainly from the reversal of provisions recognized in previous years upon project completion or early termination[36] Share of Results of Joint Ventures - The share of results of joint ventures decreased by 50.2%, from HKD 264 million to HKD 131 million[36] - The decrease was mainly due to the sale of two chemical MR tankers in H2 2024 and lower daily charter rates for product oil and chemical tankers[36] Income Tax Expense - Income tax expense increased from HKD 20.2 million to HKD 137.7 million[36] - The increase was primarily due to the retrospective application of the OECD Pillar Two model rules (GloBE rules) from January 1, 2025, which led to higher Hong Kong profits tax[37] Analysis of the Condensed Consolidated Statement of Financial Position - Total assets decreased by 3.9% to HKD 42.20 billion, mainly due to a reduction in loans and lease receivables[40] - Total liabilities decreased by 7.2% to HKD 27.50 billion, primarily due to the repayment of a matured USD bond[40] - Total equity increased by 2.8% to HKD 14.70 billion, and the debt-to-asset ratio improved by 2.3 percentage points to 65.2%[40] Loans and Lease Receivables Loans and Lease Receivables (As of) | Receivable Item | June 30, 2025 (HKD in thousands) | December 31, 2024 (HKD in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Lease Receivables | 14,002,469 | 14,331,654 | (2.3%) | | Loan Borrowings | 5,982,268 | 6,118,321 | (2.2%) | | Loans to Joint Ventures | 216,631 | 264,858 | (18.2%) | | Total | 20,201,368 | 20,714,833 | (2.5%) | - Lease receivables decreased by 2.3%, mainly because some finance lease projects were completed according to their lease terms during the period[45] Property, Plant and Equipment - Property, plant and equipment decreased by 1.8%, mainly due to the sale of two bulk carriers in H2 2024 and depreciation of leased vessels[46] Financial Assets at Fair Value - The total value of financial assets at fair value was HKD 2.16 billion, with the company continuing to diversify risks by investing in a portfolio of listed bonds and wealth management products[47] Liabilities Total Liabilities (As of) | Liability Item | June 30, 2025 (HKD in thousands) | December 31, 2024 (HKD in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Borrowings - Bank Loans | 13,889,083 | 12,829,276 | 8.3% | | Borrowings - Bonds | 10,369,790 | 13,432,257 | (22.8%) | | Borrowings - Others | 1,289,195 | 1,325,622 | (2.7%) | | Other Liabilities | 1,948,218 | 2,035,804 | (4.3%) | | Total | 27,496,286 | 29,622,959 | (7.2%) | - Bank borrowings increased by 8.3%, mainly by using new low-cost bank loans to repay matured USD guaranteed bonds[50] Borrowings - Bonds - The company holds two USD guaranteed bonds of USD 400 million and USD 500 million, maturing in 2030 and 2026, respectively[51] - The full issuance of the RMB 3 billion "Panda Bond" framework in the domestic inter-bank market has been completed to support domestic equipment upgrades and green ship development[51] Asset Quality The company did not write off any loans and lease receivables during H1 2025, indicating stable asset quality - For the six months ended June 30, 2025, the Group did not write off any loans and lease receivables[52] Liquidity and Working Capital The company maintains robust liquidity through operating cash flow, bank loans, and bond issuance, ensuring sufficient resources for operations and debt servicing - The company ensures sufficient funding for debt repayment and business development through a reasonable level of liquid assets and adequate funding sources[53] - Maintained a AAA rating from Dagong Global Credit Rating, and international ratings of A- from S&P and A- from Fitch[55] - Net cash generated from operating activities was HKD 1.32 billion, mainly from receipts from concluded finance lease projects and operating profit[57] - Net cash generated from investing activities was HKD 287 million, primarily from dividends received from joint ventures[57] - Net cash used in financing activities was HKD 2.35 billion, mainly for the repayment of matured bonds[57] Summary of Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Cash Flow Item | H1 2025 (HKD in thousands) | H1 2024 (HKD in thousands) | | :--- | :--- | :--- | | Net cash generated from operating activities | 1,320,276 | 4,273,137 | | Net cash generated from/(used in) investing activities | 286,880 | (997,327) | | Net cash used in financing activities | (2,345,639) | (2,812,250) | | Net (decrease)/increase in cash and cash equivalents | (738,483) | 463,560 | | Cash and cash equivalents at end of period | 1,052,669 | 1,401,173 | Capital Management The company effectively managed financing costs through a cross-currency strategy and expanded its funding channels while hedging interest and currency risks - The comprehensive financing cost decreased from 3.5% at the end of 2024 to 3.1% in H1 2025[59] - Signed a financial services framework agreement with CSSC Finance to obtain a RMB 10 billion loan facility, valid until December 31, 2027[60] - As of June 30, 2025, unused bank loan facilities amounted to approximately HKD 19.66 billion (about USD 2.53 billion), ensuring sufficient credit availability[61] Bank Loans and Capital Structure - Opportunistically used low-interest RMB and HKD borrowings to replace some high-interest USD borrowings, effectively controlling the rapid growth of financing costs[58][59] - As of June 30, 2025, the gearing ratio was 1.7 times, maintaining a healthy balance sheet[61] Interest Rate Risk - Used financial instruments such as interest rate swaps to hedge interest rate risk exposure, with a notional principal of approximately HKD 3.34 billion as of June 30, 2025[62] - The locked-in average long-term fixed USD interest rate was approximately 1.58%, effectively mitigating the negative impact of high USD interest rates[62] - Continuously improved the matching of interest rate structures between assets and liabilities by issuing fixed-rate bonds, securing fixed-rate loans, and using interest rate swaps[64] Foreign Exchange Risk - Vessels under finance and operating leases are purchased in USD, with corresponding receivables and fixed assets also denominated in USD, mitigating significant currency risk exposure[65] - For existing RMB exchange rate exposure, the company effectively hedged risks by using foreign exchange swaps, cross-currency swaps, and replacing RMB financing with HKD financing[65] Risk Management The company employs a comprehensive risk management system with a prudent risk appetite, focusing on mature business models and high-quality clients - Established a comprehensive risk management system with a prudent risk appetite, favoring industries with mature business models, scale effects, and excellent asset quality[66] - In client selection, the company prefers large enterprises, industry leaders, or high-quality listed companies[66] - Continuously improved the risk management system, processes, tools, internal controls, and compliance to enhance the company's risk management capabilities[69] Human Resources As of June 30, 2025, the company had 79 employees, with a highly educated workforce and a total compensation of HKD 28.7 million for H1 - As of June 30, 2025, the Group had a total of 79 employees, a decrease from 84 on December 31, 2024[35][70] - Approximately 94.9% of employees hold a bachelor's degree or higher, indicating a high-quality talent pool[70] - For the six months ended June 30, 2025, total employee compensation was approximately HKD 28.7 million[70] Pledge of Assets A significant portion of the company's assets, including receivables and equipment, are pledged as collateral for bank loans - As of June 30, 2025, approximately HKD 9.28 billion of loans and lease receivables, HKD 242 million of floating charge deposits, and HKD 2.82 billion of property, plant and equipment were pledged to banks to secure bank loans[71] Financial Statements and Significant Notes Condensed Consolidated Statement of Profit or Loss This section presents the unaudited condensed consolidated statement of profit or loss for the six months ended June 30, 2025 Condensed Consolidated Statement of Profit or Loss (For the six months ended June 30) | Metric | H1 2025 (HKD in thousands) | H1 2024 (HKD in thousands) | | :--- | :--- | :--- | | Revenue | 2,017,965 | 1,965,771 | | Other income and other net (losses)/gains | (17,618) | 235,154 | | Total expenses | (833,297) | (1,095,844) | | Operating profit | 1,167,050 | 1,105,081 | | Share of results of joint ventures | 131,328 | 263,789 | | Profit before income tax | 1,288,887 | 1,360,021 | | Income tax expense | (137,730) | (20,161) | | Profit for the period | 1,151,157 | 1,339,860 | | Profit attributable to equity holders of the Company | 1,105,585 | 1,327,318 | | Non-controlling interests | 45,572 | 12,542 | | Basic earnings per share (HKD) | 0.179 | 0.216 | | Diluted earnings per share (HKD) | 0.178 | 0.216 | Condensed Consolidated Statement of Comprehensive Income This section presents the unaudited condensed consolidated statement of comprehensive income for the six months ended June 30, 2025 Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Metric | H1 2025 (HKD in thousands) | H1 2024 (HKD in thousands) | | :--- | :--- | :--- | | Profit for the period | 1,151,157 | 1,339,860 | | Total other comprehensive (expense)/income for the period | (97,737) | 28,212 | | Total comprehensive income for the period | 1,053,420 | 1,368,072 | | Total comprehensive income for the period attributable to equity holders of the Company | 1,007,830 | 1,355,421 | | Non-controlling interests | 45,590 | 12,651 | Condensed Consolidated Statement of Financial Position This section provides the unaudited condensed consolidated statement of financial position as of June 30, 2025, reflecting the company's financial health Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Metric | June 30, 2025 (HKD in thousands) | December 31, 2024 (HKD in thousands) | | :--- | :--- | :--- | | Total Assets | 42,200,612 | 43,920,995 | | Property, plant and equipment | 16,099,700 | 16,394,376 | | Loans and lease receivables | 20,201,368 | 20,714,833 | | Cash and cash equivalents | 1,052,669 | 1,773,896 | | Total Liabilities | 27,496,286 | 29,622,959 | | Borrowings | 25,548,068 | 27,587,155 | | Total Equity | 14,704,326 | 14,298,036 | | Share capital | 6,713,880 | 6,695,690 | Notes to the Interim Financial Information This section provides detailed notes explaining the basis of preparation, accounting policies, segment information, and other key financial statement components - The interim financial information is prepared in accordance with HKAS 34 "Interim Financial Reporting" and the disclosure requirements of the Hong Kong Stock Exchange Listing Rules[76] - The adoption of the amended HKAS 21 "Lack of Exchangeability," effective January 1, 2025, had no material impact on the interim financial information[79][80] Basis of Preparation - The interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the HKICPA and the disclosure requirements of the Hong Kong Stock Exchange Listing Rules[76] - The interim financial information is unaudited but has been reviewed by Grant Thornton Hong Kong Limited in accordance with HKSRE 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity"[76] Adoption of Amended Hong Kong Financial Reporting Standards - Adopted the amended Hong Kong Accounting Standard 21 "Lack of Exchangeability," effective from January 1, 2025[79] - The adoption of these amendments had no material impact on the Group's interim financial information[80] Segment Information and Revenue - The main operating segments are Shipping Integrated Services (operating lease, ship broking) and Financial Services (finance lease, loan and borrowing)[81][82][83] Segment Revenue (For the six months ended June 30) | Segment | H1 2025 (HKD in thousands) | H1 2024 (HKD in thousands) | | :--- | :--- | :--- | | Shipping Integrated Services | 1,231,338 | 1,069,465 | | Financial Services | 786,627 | 896,306 | | Total | 2,017,965 | 1,965,771 | Finance Costs and Bank Charges Finance Costs and Bank Charges (For the six months ended June 30) | Item | H1 2025 (HKD in thousands) | H1 2024 (HKD in thousands) | | :--- | :--- | :--- | | Interest and fees on bonds | 145,577 | 167,770 | | Interest and fees on bank borrowings | 220,066 | 345,114 | | Interest and fees on other borrowings | 39,593 | 17,833 | | Interest on lease liabilities | 9,686 | 519 | | Bank charges | 1,099 | 1,224 | | Total | 416,021 | 515,642 | Operating Profit Items Included in Operating Profit (For the six months ended June 30) | Item | H1 2025 (HKD in thousands) | H1 2024 (HKD in thousands) | | :--- | :--- | :--- | | Interest income from financial assets at FVTOCI | 31,880 | 9,491 | | Net gain on disposal of property, plant and equipment | – | 56,405 | | Net unrealised gain on fair value changes of financial assets at FVTPL | 16,226 | 14,189 | | Net gain on derecognition of finance lease receivables | 21,560 | 150,719 | Income Tax Expense - Income tax expense increased to HKD 137.7 million, mainly due to the retrospective application of the OECD Pillar Two model rules from January 1, 2025[90][91] Income Tax Expense Breakdown (For the six months ended June 30) | Tax Item | H1 2025 (HKD in thousands) | H1 2024 (HKD in thousands) | | :--- | :--- | :--- | | Current tax - Hong Kong Profits Tax | 125,444 | 5,238 | | Current tax - Overseas tax | 10,849 | 15,147 | | Under/(over) provision in prior years | 2,013 | (918) | | Deferred tax | (576) | 694 | | Income tax expense | 137,730 | 20,161 | Earnings Per Share Earnings Per Share Calculation (For the six months ended June 30) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit attributable to equity holders of the Company (HKD in thousands) | 1,105,585 | 1,327,318 | | Weighted average number of ordinary shares (in thousands) | 6,191,104 | 6,142,907 | | Basic earnings per share (HKD) | 0.179 | 0.216 | | Diluted earnings per share (HKD) | 0.178 | 0.216 | Dividends - The Board has declared an interim dividend of HKD 0.05 per share (2024: HKD 0.03 per share)[95] Loans and Lease Receivables - Loan borrowings are secured, bear interest at annual rates ranging from 5.8% to 8.3%, and are repayable between 2025 and 2033[101] - Finance lease receivables are secured and bear interest at annual rates ranging from 5.0% to 10.3%[103] - Loans to joint ventures are unsecured, bear interest at an annual rate of 8.4%, and are repayable on demand[104] Net Loans and Lease Receivables (As of) | Receivable Item | June 30, 2025 (HKD in thousands) | December 31, 2024 (HKD in thousands) | | :--- | :--- | :--- | | Loan borrowings | 5,982,268 | 6,118,321 | | Lease receivables | 14,002,469 | 14,331,654 | | Loans to joint ventures | 216,631 | 264,858 | | Total | 20,201,368 | 20,714,833 | Share Capital - The number of issued ordinary shares increased by 11,475,995 due to the exercise of share options, with a total consideration of approximately HKD 14.70 million credited to share capital[105] Share Capital Movement (As of) | Item | Number of shares (in thousands) | Share Capital (HKD in thousands) | | :--- | :--- | :--- | | As at December 31, 2024 | 6,186,890 | 6,695,690 | | Shares issued under share option scheme | 11,476 | 18,190 | | As at June 30, 2025 | 6,198,366 | 6,713,880 | Other Information Corporate Governance Practices The company is committed to high standards of corporate governance and complies with the Corporate Governance Code - The company has adopted the Corporate Governance Code as set out in Appendix C1 of the Listing Rules of The Stock Exchange of Hong Kong Limited and has complied with all applicable code provisions[106] - The roles of Chairman and Chief Executive Officer are both held by Mr. Li Hongtao, which the Board believes facilitates the execution of business strategies and enhances operational efficiency[107] Interim Dividend The Board declared an interim dividend of HKD 0.05 per share for H1 2025, an increase from the prior year - The Board declared an interim dividend of HKD 0.05 per share for the six months ended June 30, 2025 (2024: HKD 0.03 per share)[108] - The interim dividend will be paid on or before November 14, 2025, and shareholders may elect to receive it in RMB[108] Model Code for Securities Transactions by Directors The company has adopted the Model Code for securities transactions by directors and all directors have confirmed compliance - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules, and all directors have confirmed compliance[110] Purchase, Sale or Redemption of the Company's Listed Securities Neither the company nor its subsidiaries engaged in any purchase, sale, or redemption of the company's listed securities during the period - 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[111] - As of June 30, 2025, the company did not hold any treasury shares[111] Review of Interim Results The Audit Committee has reviewed the unaudited condensed consolidated interim results for the six months ended June 30, 2025 - The Audit Committee has reviewed the unaudited condensed consolidated interim results for the six months ended June 30, 2025, with the company's senior management and external auditors[113] Events After the Reporting Period Subsequent to the reporting period, the company entered into shipbuilding agreements with a fellow subsidiary for approximately HKD 1.15 billion - After the reporting period, the Group entered into shipbuilding agreements with a fellow subsidiary for a total consideration of approximately HKD 1.15 billion (RMB 1.056 billion)[114] Publication of Interim Report The interim report for the six months ended June 30, 2025, will be dispatched to shareholders and published on relevant websites in due course - The interim report for the six months ended June 30, 2025, will be sent to shareholders and published on the company's website and the Hong Kong Stock Exchange's website in due course[116]