喆丽控股(02209) - 2025 - 中期财报

Company Information The company's board comprises executive, non-executive, and independent non-executive directors, with key management including the CEO and Chairperson Board of Directors and Management The company's board consists of executive, non-executive, and independent non-executive directors, supported by audit, remuneration, and nomination committees - Executive Directors include Mr. Lau Kwok Chu (CEO), Ms. Chu Lai Kuen (Chairperson), and Mr. Chu Kin Hang[4] - The Audit Committee is chaired by Mr. Wong Tsz Chung, the Remuneration Committee by Mr. Chan Yu Cheong, and the Nomination Committee by Mr. Sin Pak Cheung[4] Company Basic Information The company is registered in Hong Kong with stock code 2209 and operates several e-commerce websites including YesStyle.com and AsianBeautyWholesale.com - The company's stock code is 2209[5] - Key shopping websites include www.yesstyle.com, www.asianbeautywholesale.com, and **www.yesasia.com**[5](index=5&type=chunk) Definitions and Glossary This section defines key terms and abbreviations used in the report, ensuring a clear understanding of company entities, business platforms, geographical regions, technical terms, and financial periods - "The Group" refers to the Company and its subsidiaries[7] - "ABW" refers to the Group's wholesale beauty product business conducted through online platforms and offline channels[7] - "Reporting Period" or "First Half of 2025" refers to the six months ended June 30, 2025[10] - "Mapletree Smart Robotic Warehouse" refers to the smart warehouse located at Mapletree Tsing Yi Logistics Centre, equipped with autonomous mobile robots[9] Key Highlights The company achieved significant financial and operational growth in the first half of 2025, with revenue up 49.3% and net profit up 26.7%, driven by strong beauty product sales, especially on the ABW platform, and notable performance in European markets Key Financial Indicators for H1 2025 | Indicator | H1 2025 (US$ thousand) | H1 2024 (US$ thousand) | Change | | :--- | :--- | :--- | :--- | | Revenue | 243,932 | 163,348 | 49.3%▲ | | Gross Profit | 73,262 | 50,192 | 46.0%▲ | | Gross Margin | 30.0% | 30.7% | ▲ 0.7 percentage points | | Operating Profit | 18,679 | 14,164 | 31.9%▲ | | Profit for the Period | 14,075 | 11,107 | 26.7%▲ | | Net Margin | 5.8% | 6.8% | ▲ 1.0 percentage points | Operational Indicators for H1 2025 | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | YesStyle Platform Customer Count | 1,728,000 | 1,292,000 | 33.7%▲ | | ABW Online Customer Count | 4,100 | 3,900 | 5.1%▲ | | YesStyle Platform Average Order Value (US$) | 65.0 | 65.0 | – | | ABW Online Average Order Value (US$) | 2,590.8 | 1,976.8 | 31.1%▲ | | YesStyle Platform Cost Per New Customer (US$) | 13.5 | 10.5 | 28.6%▲ | | Beauty Product Revenue (US$ thousand) | 235,342 | 149,361 | 57.6%▲ | | YesStyle Mobile App Downloads | 2,538,000 | 2,264,000 | 12.1%▲ | | KOL Program Expenses (US$ thousand) | 3,814 | 2,293 | 66.3%▲ | | Revenue Generated by KOL Referrals (US$ thousand) | 44,644 | 33,934 | 31.6%▲ | Revenue by Region for H1 2025 (US$ thousand) | Region | H1 2025 (US$ thousand) | H1 2024 (US$ thousand) | Change | | :--- | :--- | :--- | :--- | | United States | 65,270 | 57,803 | 12.9%▲ | | Europe and Related Countries | 93,948 | 63,608 | 47.7%▲ | | Oceania | 18,089 | 9,747 | 85.6%▲ | | Latin America | 6,674 | 6,070 | 10.0%▲ | | Middle East | 14,614 | 5,201 | 181.0%▲ | | Rest of World | 45,337 | 20,919 | 116.7%▲ | Management Discussion and Analysis This section provides an in-depth analysis of the company's financial performance, operational highlights, strategic initiatives, and future outlook for the reporting period Business Overview The Group achieved strong revenue growth in the first half of 2025, primarily driven by increased retail and wholesale beauty product sales on YesStyle and AsianBeautyWholesale (ABW) platforms, with K-Beauty remaining a key revenue source and ABW revenue more than doubling - Revenue increased by approximately 49.3% to approximately US$243,932 thousand (prior period: US$163,348 thousand)[34] - Net profit increased by over a quarter to approximately US$14,075 thousand from approximately US$11,107 thousand in the prior period[34] - Beauty products accounted for approximately 96.5% of the Group's revenue (prior period: 91.4%), with ABW revenue more than doubling to approximately US$77,944 thousand[34] - YesStyle platform revenue surged by approximately 31.7% to approximately US$164,857 thousand, driven by double-digit growth in non-core markets[34] Rapid Growth in Global B2B Market and Offline Presence ABW business achieved rapid growth in the first half of 2025, actively expanding its global B2B market and offline retail network through the appointment of a new CEO, establishment of a Korean office and warehouse, and its debut at an international beauty exhibition - Mr. Song Ho Won was appointed as the new CEO of ABW in January 2025, driving expansion in international wholesale markets and offline retail networks[38] - A 147,000 sq. ft. warehouse was established in South Korea, operational since April 2025, supporting rapid growth in the B2B segment[38] - ABW debuted at the 2025 Cosmoprof Bologna exhibition, engaging with over 800 global B2B buyers[38] - ABW has established a retail channel distribution network across North America, Europe, Latin America, and other regions worldwide[36] Non-Core Markets Continue to Perform Strongly Non-core markets continue to contribute significantly to the Group's revenue and achieve remarkable growth, with the EU, Latin America, and Middle East regions showing particularly strong performance, and the company plans to launch more European language websites for further market expansion - Non-core markets contributed approximately 80.8% of total revenue, an increase of approximately 58.4%[39] - The EU market grew by approximately 51.5%, accounting for 30.9% of the Group's revenue[39] - Latin America and the Middle East regions grew by approximately 181.0% and 85.6%, respectively[39] - A Polish language website is planned for launch in July 2025 to expand the European market[39] Social Media Marketing Initiatives The Group continues to increase its investment in social media marketing, expanding its marketing team and significantly enhancing brand influence and referral revenue through its Key Opinion Leader (KOL) program, particularly with a substantial increase in KOLs on TikTok - YesStyle's TikTok KOL count increased to approximately 132,000 by the end of June 2025 (prior period: 87,000), representing a growth rate of approximately 51.7%[43] - Revenue generated by KOL referrals was US$44,644 thousand (prior period: US$33,934 thousand), a growth rate of approximately 31.6%[43] - The Euro Supporter program was launched in collaboration with COSRX to recruit European creators to share their K-beauty skincare journeys[41] Latest Logistics Development: Opening of Second AMR Warehouse in Hong Kong The Group opened its second Autonomous Mobile Robot (AMR) warehouse in Hong Kong, significantly enhancing its e-commerce logistics network to meet growing global demand for the K-beauty industry, with a total investment of approximately US$10,909 thousand - A second AMR warehouse, with a gross floor area of approximately 147,000 sq. ft. and equipped with 240 AMRs, was opened at Mapletree Smart Robotic Warehouse in Tsing Yi, Hong Kong, in May 2025[42] - Over 400 AMRs are deployed across both AMR warehouses, supporting the surge in global K-beauty market demand[42] - The total investment for establishing the Mapletree Smart Robotic Warehouse was approximately US$10,909 thousand, including capital expenditure of approximately US$8,391 thousand and pre-operating expenses of approximately US$2,518 thousand[42] Outlook The company is optimistic about the global expansion prospects of YesStyle and ABW, as K-Beauty, a significant player in the global beauty industry, still has substantial room for growth, laying the foundation for the company's retail and wholesale businesses - K-Beauty is increasingly becoming mainstream in the global beauty industry and still has significant room for growth[45] - The Group remains optimistic about the prospects of YesStyle and ABW and will continue to advance their retail and wholesale global expansion[46] - The Group's net margin for the reporting period was 5.8% (prior period: 6.8%), which is still higher than the net margins for the second half and full year of 2024 (4.4% and 5.5% respectively)[44] Global Momentum of K-Beauty K-Beauty has become a prominent player in the global beauty industry, with South Korea's cosmetics exports surpassing the United States for the first time to rank second globally, showing significant growth particularly in non-English speaking markets in Europe and the Middle East - South Korean cosmetics exports have risen to second globally, surpassing the United States for the first time, trailing only France[47] - From January to April 2025, South Korea exported US$3.61 billion worth of cosmetics, exceeding the United States' US$3.57 billion[47] - Exports to Poland surged by 121% year-on-year to US$111.8 million, and exports to the United Arab Emirates increased by 74% year-on-year to US$99.3 million[48] K-Beauty's Offline Store Expansion K-Beauty products' strong online presence is gradually expanding into global offline retail stores, including major high streets in the US, UK, Europe, and Latin America, with the Group actively establishing partnerships with large retailers through ABW - K-Beauty's offline presence is expanding in major high streets globally, such as Ulta in the US, Primark and Superdrug in the UK, OVS in Italy, MiiN in Spain, Pichara in Chile, and 7-Eleven in Thailand[51] - The Group, through ABW, has established partnerships with TJX and Burlington (collectively over 2,400 stores in the US) to curate K-Beauty products[52] The Power of Storytelling: Social Media Marketing Social media marketing plays a crucial role in promoting the K-Beauty narrative, with the Group continuously investing in influencer programs, inviting international KOLs to create local content, and leveraging data to drive consumer engagement - Social media marketing plays a crucial role in promoting the K-Beauty narrative to resonate with target audiences and strengthen connections[53] - The Group is committed to investing in influencer programs, inviting international KOLs to create stories about K-Beauty[53] - Data and consumer feedback collected through social media platforms are highly valuable for AI and data-driven consumer engagement[54] Business Flexibility: Supply Chain Management and Warehousing Capabilities The Group provides a one-stop solution for K-Beauty brands, combining community marketing capabilities with flexible supply chain and warehousing solutions, significantly enhancing logistics efficiency and scalability with its second AMR warehouse in Hong Kong and additional global warehouses - The Group offers a one-stop solution for K-Beauty brands, combining community marketing capabilities with flexible supply chain and warehousing solutions[55] - With its second Autonomous Mobile Robot warehouse in Hong Kong, the Group possesses one of Asia's most advanced e-commerce logistics networks[55] - Additional warehouses in Hong Kong, the US, South Korea, the UK, and Germany support B2B expansion, helping to shorten delivery times, reduce shipping costs, and improve scalability[55] Financial Review The Group achieved strong revenue growth during the reporting period, but gross and net margins slightly decreased due to increased cost of sales and operating expenses, with continuous investment in business expansion and logistics infrastructure leading to significant increases in capital expenditure and finance costs Revenue The Group's revenue increased by 49.3% year-on-year to US$243,932 thousand, primarily driven by significant growth in YesStyle platform and ABW online sales, as well as the launch of ABW's offline business Revenue Breakdown by Business Segment | Business Segment | 2025 (US$ thousand) | % of Total Revenue | 2024 (US$ thousand) | % of Total Revenue | Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Business-to-Consumer (B2C) - YesStyle Platform | 164,857 | 67.6 | 125,132 | 76.6 | 31.7%▲ | | Business-to-Consumer (B2C) - YesAsia Platform | 890 | 0.3 | 1,020 | 0.6 | ▲ 12.7% | | Business-to-Business (B2B) - ABW Online | 56,283 | 23.1 | 36,951 | 22.6 | 52.3%▲ | | Business-to-Business (B2B) - ABW Offline | 21,661 | 8.9 | – | – | N.M. | | Logistics Services | 241 | 0.1 | 245 | 0.2 | ▲ 1.6% | | Total | 243,932 | 100.0 | 163,348 | 100.0 | 49.3%▲ | Cost of Sales Cost of sales increased by 50.8% year-on-year to US$170,670 thousand, primarily due to a 2.9 percentage point increase in product costs as a percentage of revenue, reflecting a higher proportion of wholesale business with lower mark-ups Cost of Sales Breakdown | Item | 2025 (US$ thousand) | % of Revenue | 2024 (US$ thousand) | % of Revenue | Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Product Costs | 122,574 | 50.2 | 77,296 | 47.3 | 58.6%▲ | | Freight Expenses | 46,867 | 19.2 | 35,104 | 21.5 | 33.5%▲ | | Packaging Materials | 1,161 | 0.5 | 696 | 0.4 | 66.8%▲ | | Direct Labor Costs | 68 | 0.1 | 60 | 0.1 | 13.3%▲ | | Total | 170,670 | 70.0 | 113,156 | 69.3 | 50.8%▲ | - Product costs as a percentage of revenue increased by approximately 2.9 percentage points to approximately 50.2% in the reporting period (prior period: approximately 47.3%), mainly due to the increased revenue contribution from AsianBeautyWholesale, which is a wholesale business with lower mark-ups[58] Gross Profit and Gross Margin Gross profit increased by 46.0% year-on-year to US$73,262 thousand, but gross margin decreased by 0.7 percentage points to 30.0%, primarily impacted by the increased proportion of wholesale business Gross Profit Breakdown by Business Segment | Business Segment | 2025 (US$ thousand) | Gross Margin (%) | 2024 (US$ thousand) | Gross Margin (%) | Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Business-to-Consumer (B2C) - YesStyle Platform | 58,405 | 35.4 | 43,190 | 34.5 | 35.2%▲ | | Business-to-Consumer (B2C) - YesAsia Platform | 214 | 24.0 | 230 | 22.5 | ▲ 7.0% | | Business-to-Business (B2B) - ABW Online | 11,279 | 20.0 | 6,590 | 17.8 | 71.2%▲ | | Business-to-Business (B2B) - ABW Offline | 3,193 | 14.7 | – | – | N.M. | | Logistics Services | 171 | 71.0 | 182 | 74.3 | ▲ 6.0% | | Total | 73,262 | 30.0 | 50,192 | 30.7 | 46.0%▲ | - Gross margin decreased by approximately 0.7 percentage points to approximately 30.0% (prior period: 30.7%)[61] Other Income and Other Gains and Losses Other income and other gains and losses decreased by 49.5% year-on-year to US$359 thousand, primarily due to increased fair value losses on financial assets at fair value through profit or loss and reduced marketing income - Fair value losses on financial assets at fair value through profit or loss increased by approximately US$243 thousand[63] - Marketing income decreased by approximately US$108 thousand or 13.1% to US$717 thousand in the reporting period from US$825 thousand in the prior period[63] Selling Expenses Selling expenses increased by 54.0% year-on-year to US$28,703 thousand, mainly due to significant growth in marketing and promotion expenses, outsourced warehouse labor fees, payment gateway expenses, and customs duties, supporting increased revenue and sales order volume Selling Expenses Breakdown | Item | 2025 (US$ thousand) | % of Total Revenue | 2024 (US$ thousand) | % of Total Revenue | Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Marketing and Promotion Expenses | 13,360 | 5.5 | 8,088 | 5.0 | 65.2%▲ | | Payment Gateway Expenses | 5,364 | 2.2 | 4,080 | 2.5 | 31.5%▲ | | Outsourced Warehouse Labor Fees | 5,168 | 2.1 | 2,938 | 1.8 | 75.9%▲ | | Warehouse Wages | 2,538 | 1.0 | 2,213 | 1.4 | 14.7%▲ | | Customs Duties | 1,218 | 0.5 | 533 | 0.3 | 128.5%▲ | | IT Network Fees | 823 | 0.3 | 696 | 0.4 | 18.2%▲ | | Outsourced Fulfillment Fees | 170 | 0.1 | 26 | – | 553.8%▲ | | Web Content and Translation Fees | 62 | 0.1 | 68 | – | ▲ 8.8% | | Total | 28,703 | 11.8 | 18,642 | 11.4 | 54.0%▲ | - Marketing and promotion expenses increased by approximately US$5,272 thousand or 65.2%, including expenses of approximately US$426 thousand for participating in Cosmoprof Bologna[67] - Customs duties increased by approximately US$685 thousand or 128.5%, mainly due to increased sales in Mexico and the Middle East, as well as duties for transporting inventory to US warehouses[67] Administrative Expenses Administrative expenses increased by 45.8% year-on-year to US$26,585 thousand, primarily due to higher staff costs, depreciation of right-of-use assets, net exchange losses, and rates and management fees, despite a decrease as a percentage of revenue Administrative Expenses Breakdown | Item | 2025 (US$ thousand) | % of Total Revenue | 2024 (US$ thousand) | % of Total Revenue | Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Staff Costs | 14,627 | 6.0 | 10,584 | 6.5 | 38.2%▲ | | Depreciation of Right-of-Use Assets | 4,149 | 1.7 | 2,407 | 1.5 | 72.4%▲ | | Net Exchange Losses | 2,170 | 0.9 | 1,369 | 0.8 | 58.5%▲ | | Rates and Management Fees | 1,207 | 0.5 | 660 | 0.4 | 82.9%▲ | | Depreciation of Property, Plant and Equipment | 927 | 0.4 | 770 | 0.5 | 20.4%▲ | | Legal and Professional Fees | 676 | 0.3 | 494 | 0.3 | 36.8%▲ | | Utility Expenses | 638 | 0.2 | 492 | 0.3 | 29.7%▲ | | Customer Service Expenses | 476 | 0.2 | 317 | 0.2 | 50.2%▲ | | Directors' Remuneration | 465 | 0.2 | 565 | 0.3 | 17.7%▼ | | Operating Lease Expenses | 251 | 0.1 | 7 | – | 3,485.7%▲ | | Staff Training and Recruitment Expenses | 178 | 0.1 | 155 | 0.1 | 14.8%▲ | | Auditor's Remuneration | 124 | – | 85 | 0.1 | 45.9%▲ | | Others | 697 | 0.3 | 329 | 0.2 | 111.9%▲ | | Total | 26,585 | 10.9 | 18,234 | 11.2 | 45.8%▲ | - Staff costs increased by approximately US$4,043 thousand or 38.2%, mainly due to an increase in administrative employees and share option expenses of approximately US$1,950 thousand[68] - Depreciation of right-of-use assets increased by approximately US$1,742 thousand or 72.4%, due to the new lease of the Mapletree Smart Robotic Warehouse[68] Finance Costs Finance costs increased by 63.9% year-on-year to US$826 thousand, primarily reflecting higher interest on lease liabilities, provision for restoration costs for the new Mapletree Smart Robotic Warehouse lease, and increased interest on bank borrowings - Finance costs for the reporting period were approximately US$826 thousand (prior period: US$504 thousand), an increase of approximately 63.9% from the prior period[71] - The increase reflects higher interest on lease liabilities, provision for restoration costs for the new Mapletree Smart Robotic Warehouse lease, and increased interest on bank borrowings[71] Income Tax Expense Income tax expense increased by 41.0% year-on-year to US$3,407 thousand, primarily due to higher taxable profit during the reporting period - Income tax expense for the reporting period was approximately US$3,407 thousand (prior period: US$2,416 thousand), an increase of approximately US$991 thousand or 41.0% from the prior period[72] - The increase was mainly due to higher taxable profit generated during the reporting period[72] Profit for the Period Profit for the period increased to US$14,075 thousand, primarily attributed to enhanced marketing efforts on the YesStyle platform driving beauty product sales and the expansion of AsianBeautyWholesale serving more B2B customers - Profit for the reporting period was approximately US$14,075 thousand (prior period: US$11,107 thousand)[73] - The increase in profit was mainly attributable to enhanced marketing efforts on the YesStyle platform and the expansion of AsianBeautyWholesale[73] Capital Expenditure Capital expenditure significantly increased by 5,022.0% to US$8,605 thousand during the reporting period, primarily for new equipment, computer hardware, and software procurement for the Mapletree Smart Robotic Warehouse - During the reporting period, the Group acquired property, plant and equipment of approximately US$8,605 thousand (prior period: US$168 thousand), an increase of approximately US$8,437 thousand or 5,022.0% from the prior period[74] - Capital expenditure was primarily attributable to the procurement of new equipment, computer hardware, and software for the Mapletree Smart Robotic Warehouse[74] Liquidity and Capital Resources The Group's bank and cash balances decreased, primarily due to net cash outflows from operating and investing activities, partially offset by net cash inflows from financing activities, with new bank borrowings supporting business expansion - As of June 30, 2025, bank and cash balances and unutilized bank facilities were approximately US$28,492 thousand (December 31, 2024: US$39,817 thousand)[75] - The decrease in bank and cash balances was mainly due to net cash used in operating activities of approximately US$1,485 thousand and net cash used in investing activities of approximately US$12,250 thousand[75] - Net cash from financing activities was approximately US$12,332 thousand, primarily from borrowings raised of approximately US$17,637 thousand[76] - As of June 30, 2025, the Group's bank borrowings were US$17,416 thousand (December 31, 2024: nil), used for the establishment of the Mapletree Smart Robotic Warehouse, purchase of life insurance policies, and increased working capital[77] Treasury and Foreign Exchange Policy The Group maintains a conservative treasury management policy, avoiding high-leverage or speculative derivative investments, and monitors foreign exchange risks, although it currently has no formal foreign currency hedging policy - The Group's treasury management policy is to maintain a conservative approach, avoiding any investments in high-leverage or speculative derivative products[79] - Major business transactions are denominated in US dollars, Hong Kong dollars, Korean Won, Japanese Yen, and Euros, exposing the Group to certain foreign exchange risks[79] - There is currently no formal foreign currency hedging policy, but management monitors foreign exchange risks and considers hedging measures[79] Gearing Ratio The gearing ratio increased from 43.0% as of December 31, 2024, to 59.9% as of June 30, 2025, primarily due to increased bank borrowings and lease liabilities for the Mapletree Smart Robotic Warehouse - The gearing ratio increased from approximately 43.0% as of December 31, 2024, to approximately 59.9% as of June 30, 2025[80] - The increase was mainly due to increased bank borrowings and lease liabilities for the Mapletree Smart Robotic Warehouse[80] Contingent Liabilities As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[81] Capital Commitments Details of the Group's capital commitments are disclosed in Note 21 to the condensed consolidated interim financial information - As of June 30, 2025, the Group had no significant capital commitments, other than those disclosed in Note 21 to the condensed consolidated interim financial information[82] Significant Investments Held The Group holds shares in Grand Cargo Transportation Holdings Limited as a strategic logistics partner and has entered into life insurance policies as financial assets, with both investments incurring fair value losses - The Group holds 1,100,000 shares in Grand Cargo Transportation Holdings Limited, representing approximately 0.4% of its issued share capital, with a fair value of approximately US$485 thousand[83] - Grand Cargo Transportation Holdings Limited is a strategic logistics partner responsible for shipping products to the US, Europe, and other overseas markets[83] - The investment in Grand Cargo Transportation Holdings Limited resulted in an unrealized fair value loss of approximately US$4 thousand and recognized dividends of approximately US$2 thousand[84] - Life insurance policies were entered into with a total insured amount of approximately US$4,447 thousand and a fair value of approximately US$4,004 thousand, pledged to banks to obtain bank financing[84] Interim Dividend The Board of Directors has resolved not to declare any interim dividend for the six months ended June 30, 2025 - The Board of Directors has resolved not to declare any interim dividend for the six months ended June 30, 2025[86] Future Plans for Material Investments and Capital Assets As of the date of this report, the Group has no immediate future plans for any material investments or capital assets - As of the date of this report, the Group has no immediate future plans for any material investments or capital assets[87] Other Information This section covers corporate governance, shareholding structures, employee policies, and other statutory disclosures relevant to the company's operations Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares, and Debentures As of June 30, 2025, the company's directors and chief executive held interests in the company's shares and underlying shares, with Mr. Lau Kwok Chu and Ms. Chu Lai Kuen being major shareholders, jointly holding a significant number of shares through spousal interests Directors' and Chief Executive's Interests in Shares | Director Name | Capacity | Nature of Interest | Number of Shares and Underlying Shares | Approximate Percentage of Company's Issued Share Capital (%) | | :--- | :--- | :--- | :--- | :--- | | Mr. Lau Kwok Chu | Beneficial Owner | Long Position | 124,670,980 | 30.25% | | | Spouse's Interest | Long Position | 28,939,550 | 7.02% | | Ms. Chu Lai Kuen | Beneficial Owner | Long Position | 28,939,550 | 7.02% | | | Spouse's Interest | Long Position | 124,670,980 | 30.25% | | Mr. Chu Kin Hang | Beneficial Owner | Long Position | 4,692,120 | 1.14% | | Mr. Lui Pak Shing | Beneficial Owner | Long Position | 31,456,210 | 7.63% | | Mr. Hui Yat Sun | Beneficial Owner | Long Position | 600,000 | 0.15% | | Mr. Poon Chi Ho | Beneficial Owner | Long Position | 100,000 | 0.02% | | Mr. Chan Yu Cheong | Beneficial Owner | Long Position | 100,000 | 0.02% | | Mr. Sin Pak Cheung | Beneficial Owner | Long Position | 100,000 | 0.02% | | Mr. Wong Tsz Chung | Beneficial Owner | Long Position | 100,000 | 0.02% | - Mr. Lau Kwok Chu and Ms. Chu Lai Kuen are each deemed to have an interest in the combined number of shares (153,610,530 shares, representing approximately 37.27% of the issued share capital) due to their spousal relationship[89] Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares As of June 30, 2025, PCCW e-Ventures Limited and its associated companies, along with Stonepath Group, Inc., were substantial shareholders of the Company, holding a significant proportion of shares Substantial Shareholders' Interests in Shares | Shareholder Name | Capacity | Nature of Interest | Number of Shares | Approximate Percentage of Company's Issued Share Capital (%) | | :--- | :--- | :--- | :--- | :--- | | PCCW e-Ventures Limited | Beneficial Owner | Long Position | 39,704,030 | 9.63% | | CyberWorks Ventures Limited | Interest of Controlled Corporation | Long Position | 39,704,030 | 9.63% | | PCCW Limited | Interest of Controlled Corporation | Long Position | 39,704,030 | 9.63% | | Stonepath Group, Inc. | Beneficial Owner | Long Position | 26,000,000 | 6.31% | - Non-executive Director Mr. Poon Chi Ho holds various positions within the PCCW Group[92] Share Option Schemes The company has a 2016 Share Option Scheme and a Post-IPO Share Option Scheme, designed to attract and retain talent and provide opportunities to invest in company shares; during the reporting period, options under both schemes were exercised and granted, incurring corresponding expenses 2016 Share Option Scheme The 2016 Share Option Scheme aims to attract and retain employees, with no new options granted since the company's listing, but previously granted options remain valid; during the reporting period, 178,382 options were exercised under this scheme, generating approximately US$334 thousand in proceeds - No further share options can be granted under the 2016 Share Option Scheme since the listing on July 9, 2021[93] - As of June 30, 2025, a total of 5,078,760 shares could be issued upon exercise of outstanding share options under the 2016 Share Option Scheme, representing approximately 1.23% of the total issued shares[96] - Total proceeds of approximately US$334 thousand received from the exercise of share options under the 2016 Share Option Scheme during the reporting period were used as general working capital of the Company[96] 2016 Share Option Scheme Movement (H1 2025) | Item | Outstanding as of January 1, 2025 | Exercised during the Period | Outstanding as of June 30, 2025 | | :--- | :--- | :--- | :--- | | Total | 686,258 | (178,382) | 507,876 | Post-IPO Share Option Scheme The Post-IPO Share Option Scheme became effective on July 9, 2021, to attract and retain eligible employees or directors; during the reporting period, 2,482,000 options were granted and 60,750 options were exercised, incurring total expenses of US$7,997 thousand - The Post-IPO Share Option Scheme will expire on July 8, 2031[101] - The total number of shares that may be issued upon exercise of all options granted under the scheme is 39,539,079 shares, representing a maximum of 10% of the issued shares on the listing date[102] - During the reporting period, the Company granted 2,482,000 share options under the Post-IPO Share Option Scheme, with an estimated total fair value of US$7,997 thousand[106][178] - As of June 30, 2025, a total of 32,131,440 shares could be issued upon exercise of outstanding share options under the Post-IPO Share Option Scheme, representing approximately 7.80% of the total issued shares[111] - Total proceeds of US$65,500 received from the exercise of share options under the Post-IPO Share Option Scheme during the reporting period were used as general working capital of the Company[111] Post-IPO Share Option Scheme Movement (H1 2025) | Item | Outstanding as of January 1, 2025 | Granted during the Period | Exercised during the Period | Cancelled during the Period | Outstanding as of June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | Total | 801,894 | 2,482,000 | (60,750) | (10,000) | 3,213,144 | Major Litigation During the reporting period, the Group was not involved in any major litigation or arbitration, and the directors are unaware of any pending or potential major litigation or claims against the Group - During the reporting period, the Group was not involved in any major litigation or arbitration[115] Audit Committee The Audit Committee, composed of three independent non-executive directors, is responsible for reviewing and overseeing financial reporting procedures and internal control systems, and has reviewed the condensed consolidated interim financial information for the six months ended June 30, 2025 - The Audit Committee currently comprises three independent non-executive directors: Mr. Wong Tsz Chung (Chairman), Mr. Sin Pak Cheung, and Mr. Chan Yu Cheong[116] - Its primary responsibilities are to review and oversee the financial reporting procedures and the Group's internal control system[116] - The condensed consolidated interim financial information for the six months ended June 30, 2025, has not been audited by the auditor but has been reviewed by the Audit Committee[116] Purchase, Sale or Redemption of the Company's Listed Securities During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, with the exception of share options granted under the Post-IPO Share Option Scheme - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[117] - Exceptions include the granting of 2,000,000, 432,000, and 50,000 share options, respectively, under the Post-IPO Share Option Scheme[117] Corporate Governance Practices The company has complied with the Corporate Governance Code, with one deviation: currently, no internal audit function is established, and the Board of Directors is directly responsible for internal control work and conducts annual reviews - The Company has complied with the Corporate Governance Code, except for a deviation from Code Provision D.2.5[118] - The Group currently has no internal audit function, and the Board of Directors is directly responsible for internal control work and reviews its effectiveness[119] Standard Code for Securities Transactions by Directors The company has adopted the Standard Code as its code of conduct for directors' securities transactions, and all directors have confirmed compliance with the code during the reporting period - The Company has adopted the Standard Code as its own code of conduct for directors' securities transactions[120] - All Directors have confirmed their compliance with the required standards set out in the Standard Code throughout the reporting period[121] Employees and Remuneration Policy As of June 30, 2025, the Group had 577 employees and offers competitive remuneration packages, on-the-job training, and talent development programs to attract, retain, and motivate qualified personnel - As of June 30, 2025, the Group had 577 employees (December 31, 2024: 520 employees) located in Hong Kong, Japan, South Korea, the UK, and Germany[122] - Competitive remuneration packages are provided to employees and directors, including basic salary, variable pay, bonuses, and other benefits[122] - Technical and operational on-the-job training and talent development programs are offered to employees, with the possibility of granting Post-IPO share options[122] Transactions in Fully Sanctioned Countries or with Sanctioned Persons The Group has implemented appropriate internal controls and risk management measures, conducted no transactions in fully sanctioned countries or with sanctioned persons during the reporting period, and regularly screens business counterparties - The Group has implemented appropriate internal controls and risk management measures and has not conducted any transactions in fully sanctioned countries or with sanctioned persons[123] - Business counterparties are screened using international sanctions databases, and screening results are regularly updated[123] - Sales revenue from non-sanctioned customers: Afghanistan, Balkans, and other regions approximately US$4,084 thousand (prior period: US$2,413 thousand); Hong Kong approximately US$16,254 thousand (prior period: US$8,591 thousand)[124] Major Acquisitions, Disposals, and Future Plans for Subsidiaries During the reporting period and up to the date of this interim report, the Group had no major acquisitions or disposals of subsidiaries, associates, and joint ventures, and no future plans - During the reporting period and up to the date of this interim report, the Group had no major acquisitions or disposals of subsidiaries, associates, and joint ventures, and no future plans[125] Pledges of Assets As of June 30, 2025, the Group's bank facilities were primarily secured by pledged bank deposits of approximately US$3,567 thousand - As of June 30, 2025, the Group's bank facilities were secured by the Group's pledged bank deposits of approximately US$3,567 thousand (December 31, 2024: US$2,931 thousand)[126] Events After the Reporting Period Events after the reporting period are disclosed in Note 22 to the condensed consolidated interim financial information - Events after the reporting period are disclosed in Note 22 to the condensed consolidated interim financial information[127] Directors' Information Non-executive Director Mr. Hui Yat Sun was appointed as an independent non-executive director of UOB-Kay Hian Holdings Limited effective May 2, 2025 - Non-executive Director Mr. Hui Yat Sun was appointed as an independent non-executive director of UOB-Kay Hian Holdings Limited effective May 2, 2025[128] Acknowledgement The Board of Directors extends its gratitude to employees, shareholders, customers, and business partners for their contributions and support to the Group - The Board of Directors extends its gratitude to employees, shareholders, customers, and business partners[129] Condensed Consolidated Interim Statement of Profit or Loss The Group achieved revenue of US$243,932 thousand and a profit for the period of US$14,075 thousand in the first half of 2025, with basic earnings per share of 3.43 US cents Condensed Consolidated Interim Statement of Profit or Loss Summary | Item | 2025 (US$ thousand) | 2024 (US$ thousand) | | :--- | :--- | :--- | | Revenue | 243,932 | 163,348 | | Cost of Sales | (170,670) | (113,156) | | Gross Profit | 73,262 | 50,192 | | Operating Profit | 18,308 | 14,027 | | Profit for the Period | 14,075 | 11,107 | | Basic Earnings Per Share (US cents) | 3.43 | 2.80 | | Diluted Earnings Per Share (US cents) | 3.36 | 2.78 | Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income The Group recorded a profit for the period of US$14,075 thousand in the first half of 2025, and with the positive impact of exchange differences on translation of foreign operations, total comprehensive income for the period reached US$15,010 thousand Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income Summary | Item | 2025 (US$ thousand) | 2024 (US$ thousand) | | :--- | :--- | :--- | | Profit for the Period | 14,075 | 11,107 | | Exchange Differences on Translation of Foreign Operations | 935 | (185) | | Total Comprehensive Income for the Period | 15,010 | 10,922 | Condensed Consolidated Interim Statement of Financial Position As of June 30, 2025, the Group's total assets less current liabilities were US$82,002 thousand, and net assets were US$66,377 thousand, with increases in both non-current assets and current liabilities Condensed Consolidated Interim Statement of Financial Position Summary | Item | June 30, 2025 (US$ thousand) | December 31, 2024 (US$ thousand) | | :--- | :--- | :--- | | Total Non-Current Assets | 39,800 | 31,066 | | Total Current Assets | 117,842 | 89,503 | | Total Current Liabilities | 75,640 | 50,982 | | Net Current Assets | 42,202 | 38,521 | | Total Assets Less Current Liabilities | 82,002 | 69,587 | | Total Non-Current Liabilities | 15,625 | 16,597 | | Net Assets | 66,377 | 52,990 | | Total Equity | 66,377 | 52,990 | - Property, plant and equipment increased from US$3,143 thousand to US$10,831 thousand, primarily reflecting capital expenditure[133] - Bank borrowings increased from nil to US$17,416 thousand[133] Condensed Consolidated Interim Statement of Changes in Equity For the six months ended June 30, 2025, equity attributable to owners of the company increased from US$53,004 thousand to US$66,439 thousand, primarily influenced by profit for the period, an increase in foreign currency translation reserve, and shares issued under share option schemes Condensed Consolidated Interim Statement of Changes in Equity Summary | Item | January 1, 2025 (US$ thousand) | Profit for the Period (US$ thousand) | Other Comprehensive Income (US$ thousand) | Shares Issued under Share Option Schemes (US$ thousand) | Dividends (US$ thousand) | Share-based Payments Recognized (US$ thousand) | June 30, 2025 (US$ thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Subtotal Attributable to Company Shareholders | 53,004 | 14,123 | 935 | 400 | (3,989) | 1,966 | 66,439 | - Foreign currency translation reserve changed from (US$831) thousand at the beginning of the period to US$104 thousand at the end of the period, reflecting a positive exchange impact[135] Condensed Consolidated Interim Statement of Cash Flows The Group's net cash used in operating activities was US$1,485 thousand, net cash used in investing activities was US$12,250 thousand, and net cash from financing activities was US$12,332 thousand in the first half of 2025, with cash and cash equivalents at period-end totaling US$15,137 thousand Condensed Consolidated Interim Statement of Cash Flows Summary | Item | 2025 (US$ thousand) | 2024 (US$ thousand) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (1,485) | (15,198) | | Net Cash Used in Investing Activities | (12,250) | (33) | | Net Cash From / (Used in) Financing Activities | 12,332 | (2,850) | | Net Decrease in Cash and Cash Equivalents | (1,403) | (18,081) | | Cash and Cash Equivalents at End of Period | 15,137 | 6,759 | - Net cash used in investing activities significantly increased, primarily due to the acquisition of property, plant and equipment of US$8,605 thousand and an increase in financial assets at fair value through profit or loss of US$3,539 thousand[136] - Net cash from financing activities mainly resulted from borrowings raised of US$17,637 thousand[136] Notes to the Condensed Consolidated Interim Financial Information This section provides detailed notes to the condensed consolidated interim financial information, covering accounting policies, fair value measurements, and specific financial statement items 1 Company and Group Information The Company, incorporated in Hong Kong, primarily engages in the trading of fashion apparel, beauty, and entertainment products through e-commerce platforms and offline wholesale channels, with Mr. Lau Kwok Chu and Ms. Chu Lai Kuen as ultimate controlling shareholders - The Company is incorporated as a limited company in Hong Kong, primarily engaged in the trading of fashion apparel, beauty and accessories, and entertainment products[137] - The Company's ultimate controlling shareholders are Mr. Lau Kwok Chu and Ms. Chu Lai Kuen, respectively[138] - The condensed consolidated interim financial information is presented in US dollars and includes comparative data for the year ended December 31, 2024[139] 2 Basis of Preparation and Changes in the Group's Accounting Policies The unaudited condensed interim financial information for the six months ended June 30, 2025, is prepared in accordance with HKAS 34 and the Listing Rules, with accounting policies consistent with the prior year's consolidated financial statements, and newly adopted standards having no significant impact - The condensed interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of the Listing Rules[140] - The accounting policies adopted in the preparation are consistent with those applied in the preparation of the consolidated financial statements for the year ended December 31, 2024[140] - All new and revised Hong Kong Financial Reporting Standards adopted during the period have not had a significant impact on the Group's financial statements[140] 3 Fair Value Measurement The Group's fair value measurements utilize a three-level input hierarchy, with investments in life insurance policies categorized as Level 2 and equity securities listed in Hong Kong as Level 1 - Fair value measurements use three levels of input data: Level 1 (quoted prices in active markets), Level 2 (observable input data), and Level 3 (unobservable input data)[142][145] Financial Assets by Fair Value Hierarchy | Overview | Level 1 (US$ thousand) | Level 2 (US$ thousand) | Level 3 (US$ thousand) | Total (US$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Investment in a Life Insurance Policy | – | 4,004 | – | 4,004 | | Equity Securities Listed in Hong Kong | 485 | – | – | 485 | | Total (June 30, 2025) | 485 | 4,004 | – | 4,489 | - The fair value of the investment in a life insurance policy is determined by reference to the cash surrender value provided by the insurance company[144] 4 Revenue The Group achieved total revenue of US$243,392 thousand during the reporting period, primarily from goods sold at a point in time and shipping revenue recognized over time Revenue Breakdown from Contracts with Customers by Major Product or Service Line | Item | 2025 (US$ thousand) | 2024 (US$ thousand) | | :--- | :--- | :--- | | Sale of Goods Recognized at a Point in Time | 219,489 | 145,778 | | Shipping Revenue Recognized Over Time | 23,661 | 17,324 | | Logistics Income Recognized Over Time | 241 | 245 | | Consignment Sales Recognized at a Point in Time | 1 | 1 | | Total | 243,392 | 163,348 | 5 Other Income and Other Gains and Losses The Group's other income and other gains and losses for the reporting period amounted to US$359 thousand, a decrease from the prior period, mainly due to increased fair value losses on financial assets and reduced marketing income Other Income and Other Gains and Losses Breakdown | Item | 2025 (US$ thousand) | 2024 (US$ thousand) | | :--- | :--- | :--- | | Cash Rebates | 7 | 15 | | Dividend Income | 2 | 2 | | Fair Value Loss on Financial Assets at FVTPL | (554) | (311) | | Marketing Income | 717 | 825 | | Interest Income | 181 | 172 | | Sublease Income | 4 | – | | Miscellaneous Income | 2 | 8 | | Total | 359 | 711 | 6 Segment Information The Group's operating segments primarily include fashion and lifestyle and beauty products, and entertainment products, with fashion and lifestyle and beauty products contributing the vast majority of revenue and segment results; geographically, the United States, European Union countries, and Hong Kong are the main revenue sources Revenue from External Customers by Operating Segment (H1 2025) | Segment | Revenue from External Customers (US$ thousand) | | :--- | :--- | | Fashion and Lifestyle and Beauty Products | 242,801 | | Entertainment Products | 890 | | Unallocated (Logistics Services) | 241 | | Total | 243,932 | Revenue from External Customers by Destination Port (H1 2025) | Region | Revenue (US$ thousand) | | :--- | :--- | | United States | 65,270 | | European Union Countries | 70,102 | | United Kingdom | 15,640 | | Hong Kong | 16,254 | | Canada | 14,884 | | United Arab Emirates | 8,258 | | Mexico | 7,527 | | Australia | 5,771 | | Others | 34,926 | | Consolidated Total | 243,932 | - As of June 30, 2025 and 2024, 86.6% and 95.2%, respectively, of the Group's non-current assets were located in Hong Kong[151] - No revenue from a single customer accounted for more than 10% of the Group's total revenue[152] 7 Income Tax Expense The Group's income tax expense for the reporting period was US$3,407 thousand, primarily comprising Hong Kong profits tax and overseas corporate income tax, with rates calculated according to local tax laws Income Tax Expense Breakdown | Item | 2025 (US$ thousand) | 2024 (US$ thousand) | | :--- | :--- | :--- | | Hong Kong Profits Tax | 2,278 | 1,758 | | Overseas Corporate Income Tax | 1,129 | 658 | | Total | 3,407 | 2,416 | - Hong Kong profits tax is levied at a two-tiered rate: 8.25% on the first HK$2 million of assessable profits and 16.5% on the remaining profits[153] - Korean corporate income tax is levied at progressive rates ranging from 9.9% to 26.4% on estimated taxable profits[153] 8 Profit for the Period The Group's profit for the period is presented after deducting various expenses, including cost of inventories sold, depreciation, employee benefit expenses, and net exchange losses Profit for the Period Deductions | Item | 2025 (US$ thousand) | 2024 (US$ thousand) | | :--- | :--- | :--- | | Auditor's Remuneration | 124 | 85 | | Cost of Inventories Sold | 122,574 | 77,296 | | Depreciation (Property, Plant and Equipment and Right-of-Use Assets) | 5,076 | 3,177 | | Employee Benefit Expenses (including Directors' Remuneration) | 17,630 | 13,362 | | Net Exchange Losses | 2,170 | 1,369 | | Expenses Related to Short-Term Leases | 251 | 7 | | Net Write-down of Inventories | 287 | 98 | 9 Dividends The Board of Directors has resolved not to declare any interim dividend for the six months ended June 30, 2025, while the final dividend for the 2024 financial year was paid in July 2025 - The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025[156] - The final dividend of 7.5 HK cents per share (totaling approximately US$3,989 thousand) for the year ended December 31, 2024, was approved on June 20, 2025, and paid on July 14, 2025[156] 10 Earnings Per Share The Group's basic earnings per share for the first half of 2025 was 3.43 US cents, and diluted earnings per share was 3.36 US cents, with the dilutive effect of share options considered in the calculation Earnings Per Share Calculation Details | Item | 2025 (US$ thousand) | 2024 (US$ thousand) | | :--- | :--- | :--- | | Profit for Calculation of Basic and Diluted Earnings Per Share | 14,123 | 11,110 | | Weighted Average Number of Ordinary Shares for Basic EPS (thousand shares) | 410,874 | 397,269 | | Dilutive Effect of Potential Ordinary Shares from Company Share Options (thousand shares) | 8,415 | 2,617 | | Weighted Average Number of Ordinary Shares for Diluted EPS (thousand shares) | 419,289 | 399,886 | - For the six months ended June 30, 2025, the calculation of diluted earnings per share did not assume the exercise of the Company's unexercised share options because the exercise price of these options was higher than the average market price of the shares[157] 11 Property, Plant and Equipment The Group acquired approximately US$8,605 thousand in property, plant and equipment during the reporting period, a significant increase from the prior period - During the reporting period, the Group acquired property, plant and equipment of approximately US$8,605 thousand (prior period: US$168 thousand)[158] 12 Trade and Other Receivables As of June 30, 2025, the Group's total trade and other receivables amounted to US$23,093 thousand, a significant increase from December 31, 2024, primarily from trade receivables from customers Trade and Other Receivables Breakdown | Item | June 30, 2025 (US$ thousand) | December 31, 2024 (US$ thousand) | | :--- | :--- | :--- | | Trade Receivables from Third-Party Payment Platforms | 3,466 | 1,624 | | Trade Receivables from Customers | 12,680 | 935 | | Less: Impairment Losses | (26) | (1) | | Other Receivables | 6,973 | 7,413 | | Total | 23,093 | 9,971 | Ageing Analysis of Trade Receivables (Net of Provision) | Ageing | June 30, 2025 (US$ thousand) | December 31, 2024 (US$ thousand) | | :--- | :--- | :--- | | 0 to 30 Days | 15,217 | 2,112 | | 31 to 60 Days | 429 | 171 | | 61 to 90 Days | 235 | 215 | | Over 90 Days | 239 | 60 | | Total | 16,120 | 2,558 | - E-commerce sales typically have no credit period, while offline wholesale and logistics services offer credit periods of up to 180 days[160] 13 Prepayments and Deposits As of June 30, 2025, the Group's total prepayments and deposits amounted to US$9,391 thousand, with prepayments primarily for payments to suppliers and deposits mainly comprising lease deposits Prepayments and Deposits Breakdown | Item | June 30, 2025 (US$ thousand) | December 31, 2024 (US$ thousand) | | :--- | :--- | :--- | | Total Prepayments | 5,856 | 5,423 | | Total Deposits | 3,535 | 5,403 | | Total | 9,391 | 10,826 | | Analyzed as: Current Assets | 6,443 | 5,969 | | Analyzed as: Non-Current Assets | 2,948 | 4,857 | - Deposits paid for property, plant and equipment decreased from US$2,933 thousand to US$95 thousand[162] 14 Trade and Other Payables and Accruals As of June 30, 2025, the Group's total trade and other payables and accruals amounted to US$32,074 thousand, a significant increase from December 31, 2024, primarily due to increases in trade payables and dividends payable Trade and Other Payables and Accruals Breakdown | Item | June 30, 2025 (US$ thousand) | December 31, 2024 (US$ thousand) | | :--- | :--- | :--- | | Trade Payables | 15,137 | 9,930 | | Other Payables | 8,657 | 4,753 | | Accruals | 8,280 | 7,982 | | Total | 32,074 | 22,665 | Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (US$ thousand) | December 31, 2024 (US$ thousand) | | :--- | :--- | :--- | | 0 to 30 Days | 12,748 | 9,597 | | 31 to 60 Days | 2,309 | 328 | | 61 to 90 Days | 72 | 1 | | Over 90 Days | 8 | 4 | | Total | 15,137 | 9,930 | 15 Contract Liabilities As of June 30, 2025, the Group's contract liabilities amounted to US$10,958 thousand, a decrease from December 31, 2024, primarily due to improved delivery efficiency from the operational Mapletree Smart Robotic Warehouse Contract Liabilities Breakdown | Item | June 30, 2025 (US$ thousand) | December 31, 2024 (US$ thousand) | | :--- | :--- | :--- | | Sale of Goods Through Online Platforms | 6,879 | 12,338 | | Deferred Revenue from Customer Loyalty Programs | 1,864 | 1,914 | | Shopping Credits | 2,215 | 2,010 | | Total | 10,958 | 16,262 | - The decrease in contract liabilities balance is mainly due to the Group's Mapletree Smart Robotic Warehouse becoming operational, improving delivery efficiency and allowing more orders to be delivered[164] - All remaining contract liabilities are expected to be recognized as revenue within one year, except for shopping credits which are valid for two years from the date of grant[165] 16 Lease Liabilities As of June 30, 2025, the Group's total lease liabilities amounted to US$22,366 thousand, primarily from leased properties, with repayment scheduled over various terms Lease Liabilities Breakdown | Item | June 30, 2025 (US$ thousand) | December 31, 2024 (US$ thousand) | | :--- | :--- | :--- | | Leased Properties | 22,122 | 22,707 | | Office and Warehouse Equipment | 244 | 97 | | Total | 22,366 | 22,804 | Present Value of Lease Commitments | Term | June 30, 2025 (US$ thousand) | December 31, 2024 (US$ thousand) | | :--- | :--- | :--- | | Within One Year | 9,002 | 8,146 | | Over One Year but Not Exceeding Two Years | 5,035 | 8,863 | | Over Two Years but Not Exceeding Five Years | 8,329 | 5,795 | | Total | 22,366 | 22,804 | - The incremental borrowing rates applied to lease liabilities ranged from 1.96% to 17.81%[168] 17 Bank Borrowings As of June 30, 2025, the Group's total bank borrowings amounted to US$17,416 thousand, primarily secured bank loans bearing floating annual interest rates and collateralized by bank deposits, life insurance policies, and company guarantees Bank Borrowings Breakdown | Item | June 30, 2025 (US$ thousand) | December 31, 2024 (US$ thousand) | | :--- | :--- | :--- | | Secured Bank Loans - HKD Denominated | 14,422 | – | | Secured Bank Loans - USD Denominated | 2,994 | – | | Total | 17,416 | – | Carrying Amount of Bank Borrowings Repayable | Term | June 30, 2025 (US$ thousand) | December 31, 2024 (US$ thousand) | | :--- | :--- | :--- | | Within One Year | 12,252 | – | | Over One Year but Not Exceeding Two Years | 2,480 | – | | Over Two Years but Not Exceeding Five Years | 464 | – | | Over Five Years | 2,220 | – | | Total | 17,416 | – | - Secured bank borrowings bear floating annual interest rates ranging from approximately 2.47% to 4.93%[169] - Bank borrowings are secured by bank deposits of approximately US$733 thousand, life insurance policies with a carrying value of approximately US$4,004 thousand, and guarantees executed by the Company[171] - Unutilized bank facilities as of June 30, 2025, amounted to US$13,244 thousand[171] 18 Share Capital As of June 30, 2025, the Company's issued and fully paid share capital was US$24,911 thousand, with 412,103,784 shares, an increase from the beginning of the period, primarily due to shares issued under share option schemes Sha