香港生力啤(00236) - 2025 - 中期财报

Company Overview This section provides an overview of the company's fundamental information, board structure, and administrative details Basic Company Information This chapter provides the stock code of San Miguel Brewery Hong Kong Limited and the reporting period of this interim report - Company Name: San Miguel Brewery Hong Kong Limited[1] - Stock Code: 0236[2] - Reporting Period: January to June 2025[2] Board of Directors and Committees This chapter details the board composition, including appointments and resignations, and outlines committee memberships and chair changes - Board Chairman is Ramon S. Ang (Non-executive Director), Vice Chairman is Carlos Antonio M. Berba (Non-executive Director), and Executive Director is Chan Weng Kheong[3][5] - Aurora T. Calderon was appointed Non-executive Director on February 24, 2025[3][5] - Alonzo Q. Ancheta resigned as Independent Non-executive Director on July 28, 2025, and Maria Aileen A. Sazon was appointed on the same day[3][5] - Audit Committee Chairman is David K.P. Li, with Reynato S. Puno appointed on July 28, 2025, to replace Alonzo Q. Ancheta[4][5] - Remuneration Committee Chairman is Reynato S. Puno[4][5] - Nomination Committee Chairman is Thelmo Luis O. Cunanan, replacing Alonzo Q. Ancheta on July 28, 2025[4][6] Company Administrative Information This chapter provides details on the company secretary, auditor, legal counsel, registered office, share registrar, and principal bankers - Company Secretary: Lo Chi Yip[5][6] - Auditor: KPMG[8][10] - Principal Bankers include Agricultural Bank of China, ANZ Bank, Bank of China (Hong Kong), and The Hongkong and Shanghai Banking Corporation[9][10] - Mr. Yoshinori Inazumi resigned as Non-executive Director effective September 1, 2025, and Mr. Tatsuya Nagafuji was appointed as his successor[9][10] Chairman's Statement This section presents the Chairman's review of the company's financial performance, business operations, and future outlook Financial Results The company reported a consolidated profit of HKD 51.1 million for H1 2025, a 33% increase, with revenue growing 3.2% to HKD 390 million Key Financial Data for H1 2025 (HKD million) | Metric | H1 2025 (HKD million) | H1 2024 (HKD million) | YoY Growth (%) | | :--- | :--- | :--- | :--- | | Consolidated Profit | 51.1 | 38.5 | 32.7% | | Profit Attributable to Equity Holders | 49.6 | 37.6 | 31.9% | | Consolidated Revenue | 390.3 | 378.1 | 3.2% | | Gross Profit | 155.7 | 139.5 | 11.6% | | Gross Profit Margin | 39.9% | 36.9% | +3.0pp | | Cash and Bank Balances (as of June 30) | 249.6 | 216.5 (as of Dec 31) | 15.3% | | Total Loans (as of June 30) | 3.6 | 3.5 (as of Dec 31) | 2.9% | | Total Net Assets (as of June 30) | 668.6 | 634.8 (as of Dec 31) | 5.3% | | Gearing Ratio (as of June 30) | 0.01 | 0.01 (as of Dec 31) | 0% | - The Board resolved not to declare a dividend for the six months ended June 30, 2025[15][17] Business Review This chapter reviews business performance in Hong Kong and South China, highlighting sales trends, operational profitability, and marketing efforts Hong Kong Operations Hong Kong operations saw strong export growth and improved operating profit despite local market challenges and declining private consumption - Hong Kong's economy grew by 3% in real GDP in Q1 2025, but private consumption contracted by 1%, and retail sales decreased by 4%[18][23] - The company's total local sales fell by 4% in H1, mirroring the overall beer industry's 4% decline; however, export sales grew significantly, leading to a 14% increase in total sales[19][23] - Operating profit significantly increased, benefiting from higher sales volume, improved export margins, reduced fixed costs, and increased rental income[19][23] - Launched "Strong Hong Kong, Strong San Miguel" TV advertisements and conducted promotions in convenience stores, Chinese restaurants, grocery stores, and supermarkets, including purchase-with-gift offers and limited-edition canned products[20][21][22][23][24] South China Operations South China operations saw local sales growth and improved operating profit despite a decline in exports, supported by marketing activities - China's economy grew by 5% in Q1 2025, driven by recovering domestic consumption, increased local government investment, and strong export performance[25][31] - San Miguel (Guangdong) Brewery Co., Ltd. (SMGB) recorded a 3% increase in local sales in H1 2025, but export volume decreased by 3%[26][31] - SMGB achieved an operating profit of RMB 16.9 million, a 23% year-on-year increase, primarily due to higher local sales, improved margins from a more favorable local sales mix, and reduced variable costs[26][31] - Launched San Miguel Beer large bottle gift redemption, full-market promotional campaigns for San Miguel Beer and San Miguel Light, Lunar New Year themed activities, and market launches for Dragon Beer Yue X 500ml cans and locally produced Red Horse Beer 500ml 12-can gift boxes[27][28][29][30][31][32] Outlook The company maintains cautious optimism for market growth while addressing financial conditions, consumer shifts, and geopolitical uncertainties - Maintains cautious optimism for sustained growth in key markets, but remains mindful of tightening financial conditions, evolving consumer behavior, and geopolitical uncertainties[34][37] - Strategic focus will continue on strengthening brand equity, enhancing operational efficiency, and deepening consumer engagement through targeted sales and marketing activities[35][37] - Will continue to closely monitor market dynamics and implement strategies to support sales recovery in Hong Kong, maintain local sales growth in South China, effectively manage costs, and drive overall performance[35][37] Additional Information Required by Main Board Listing Rules This section provides additional disclosures mandated by the Listing Rules, covering dividends, directors' interests, and corporate governance Interim Dividend The Board resolved not to declare an interim dividend for 2025, consistent with the prior year - The Board resolved not to declare an interim dividend for 2025 (2024: nil)[39][42] Interim Results Review The interim results for the six months ended June 30, 2025, were unaudited but reviewed by the Audit Committee - The interim results for the six months ended June 30, 2025, were unaudited but reviewed by the company's Audit Committee on July 28, 2025[40][43] Directors' Interests This section discloses directors' interests in the company's and its associated companies' issued shares as of June 30, 2025 Directors' Interests in the Company's Issued Shares (as of June 30, 2025) | Name | Number of Shares Held | Percentage of Total Issued Shares (%) | | :--- | :--- | :--- | | David K. P. Li | 12,936,264 | 3.46% | Directors' Interests in Top Frontier Investment Holdings, Inc. Issued Shares (as of June 30, 2025) | Name | Share Class | Par Value (Philippine Peso) | Directly Held (shares) | Indirectly Held (shares) | Total Shares Held | Percentage of Total Issued Shares (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Ramon S. Ang | Ordinary Share | 1.00 | 75,887 | 131,658,451 | 131,734,338 | 34.860852% | | Carlos Antonio M. Berba | Ordinary Share | 1.00 | 364 | — | 364 | 0.000096% | | Aurora T. Calderon | Ordinary Share | 1.00 | 2,360 | — | 2,360 | 0.000625% | Directors' Interests in San Miguel Corporation Issued Shares (as of June 30, 2025) | Name | Share Class | Par Value (Philippine Peso) | Directly Held (shares) | Indirectly Held (shares) | Total Shares Held | Percentage of Total Issued Shares (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Ramon S. Ang | Ordinary Share | 5.00 | 1,345,429 | 373,623,796 | 374,969,225 | 9.729852% | | Carlos Antonio M. Berba | Ordinary Share | 5.00 | 2,600 | — | 2,600 | 0.000067% | | Aurora T. Calderon | Ordinary Share | 5.00 | 22,600 | — | 22,600 | 0.000586% | | Reynato S. Puno | Ordinary Share | 5.00 | 5,000 | — | 5,000 | 0.000130% | - As of June 30, 2025, no director held any interests in the relevant shares of the Company and its associated corporations as defined under Part XV of the Securities and Futures Ordinance. All interests in the shares of the Company and its associated corporations were long positions[62][63][64][65] Substantial Shareholders' Interests in Shares and Underlying Shares This section discloses substantial shareholders holding 5% or more of the company's issued ordinary shares as of June 30, 2025 Substantial Shareholders' Interests in the Company's Issued Ordinary Shares (as of June 30, 2025) | Substantial Shareholder | Number of Ordinary Shares Held | Percentage of Total Issued Shares (%) | | :--- | :--- | :--- | | Iñigo Zobel | 245,720,800 | 65.78% | | Top Frontier Investment Holdings, Inc. | 245,720,800 | 65.78% | | San Miguel Corporation | 245,720,800 | 65.78% | | Kirin Holdings Company, Limited | 245,720,800 | 65.78% | | San Miguel Food and Beverage, Inc. | 245,720,800 | 65.78% | | San Miguel Brewery Inc. | 245,720,800 | 65.78% | | San Miguel Brewing International Limited | 245,720,800 | 65.78% | | Neptunia Corporation Limited | 245,720,800 | 65.78% | | Cheung Kong (Holdings) Limited | 23,703,000 | 6.34% | | CK Hutchison Holdings Limited | 23,703,000 | 6.34% | - Iñigo Zobel, Top Frontier, San Miguel Corporation, SMFB, Kirin, San Miguel Brewery, and San Miguel Brewing International are all deemed to hold interests in the Company indirectly through Neptunia Corporation Limited[72] - Cheung Kong (Holdings) Limited and CK Hutchison Holdings Limited are deemed to have interests in the Company's shares held by Conroy Assets Limited and Hamstar Profits Limited[70][72] Purchase, Sale or Redemption of the Company's Listed Securities Neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities during 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 during the six months ended June 30, 2025[73][76] Corporate Governance The company complied with the Corporate Governance Code, with one deviation, and adopted a code of conduct for securities transactions - The Company has adopted the provisions of the Corporate Governance Code set out in Appendix C1 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited for the six months ended June 30, 2025, with the following deviation: the Company will arrange board and other meetings in accordance with Code Provisions C.5.1 and C.2.7 during the current year[74][77] - The Company has adopted a code of conduct regarding securities transactions and dealings based on the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules, and directors have confirmed their compliance in writing[74][75][77][78] Audit Committee The Audit Committee, comprising three independent non-executive directors, assists the Board in financial reporting, risk management, and compliance - As of the report date, the Audit Committee comprises three independent non-executive directors: Mr. Reynato S. Puno (appointed effective July 28, 2025, to replace Mr. Alonzo Q. Ancheta), Mr. Thelmo Luis O. Cunanan, and the Audit Committee Chairman, Sir David K.P. Li[80][84] - The Committee assists the Board in fulfilling its corporate governance and oversight responsibilities regarding financial reporting systems, risk management and internal control systems, internal and external audit functions, and compliance with tax, legal, and regulatory requirements[81][84] - The Committee is authorized by the Board to investigate any activity within its terms of reference, with unrestricted access to appropriate individuals, records, internal and external auditors, risk assessments and commitments, and senior management[81][84] Remuneration Committee The Remuneration Committee, chaired by Reynato S. Puno, advises the Board on compensation policies to attract and retain executives and directors - As of the report date, the Remuneration Committee comprises three independent non-executive directors and two non-executive directors, chaired by Independent Non-executive Director Mr. Reynato S. Puno[83][86] - The Committee's primary purpose is to support and advise the Board in ensuring the company has coherent, formal, and transparent remuneration policies and practices to fairly and responsibly reward executives for the benefit of shareholders[86] Nomination Committee The Nomination Committee, chaired by Thelmo Luis O. Cunanan, supports the Board in ensuring optimal composition by evaluating skills and identifying candidates - As of the report date, the Nomination Committee comprises four independent non-executive directors and one non-executive director, chaired by Independent Non-executive Director Mr. Thelmo Luis O. Cunanan (appointed effective July 28, 2025, to replace Mr. Alonzo Q. Ancheta)[88][91] - The Committee's primary purpose is to support the Board in fulfilling its duties by assessing required skills, evaluating the extent to which those skills are represented, establishing procedures for reviewing individual and overall board performance, and identifying suitable candidates for board appointment[92] Consolidated Income Statement — Unaudited The company reported H1 2025 consolidated revenue of HKD 390.29 million, a 3.22% increase, with profit for the period rising 32.66% to HKD 51.09 million Consolidated Income Statement Summary (for the six months ended June 30, 2025) | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 390,286 | 378,094 | 3.22% | | Cost of sales | (234,559) | (238,560) | -1.68% | | Gross profit | 155,727 | 139,534 | 11.59% | | Other net income | 33,530 | 31,743 | 5.63% | | Selling and distribution expenses | (86,553) | (84,583) | 2.33% | | Administrative expenses | (35,748) | (39,971) | -10.56% | | Other operating expenses | (5,207) | (4,354) | 19.60% | | Operating profit | 61,749 | 42,369 | 45.76% | | Finance costs | (185) | (231) | -19.91% | | Profit before taxation | 61,564 | 42,138 | 46.11% | | Income tax expense | (10,475) | (3,628) | 188.73% | | Profit for the period | 51,089 | 38,510 | 32.66% | | Profit attributable to equity holders of the Company | 49,644 | 37,618 | 31.95% | | Non-controlling interests | 1,445 | 892 | 62.00% | | Basic earnings per share (Cents) | 13.3 | 10.1 | 31.68% | Consolidated Statement of Comprehensive Income — Unaudited Profit for the period was HKD 51.09 million, with total comprehensive income increasing 38.84% to HKD 52.48 million, driven by foreign exchange differences Consolidated Statement of Comprehensive Income Summary (for the six months ended June 30, 2025) | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Profit for the period | 51,089 | 38,510 | 32.66% | | Other comprehensive income (after tax) | 1,391 | (711) | -295.64% | | Total comprehensive income for the period | 52,480 | 37,799 | 38.84% | | Attributable to equity holders of the Company | 51,396 | 36,745 | 39.86% | | Non-controlling interests | 1,084 | 1,054 | 2.85% | - Other comprehensive income was primarily affected by exchange differences arising from the translation of financial statements of overseas subsidiaries and monetary items forming the Group's investment in subsidiaries, resulting in a positive income of HKD 1,391 thousand in 2025, compared to a negative income of HKD 711 thousand in 2024[98] Consolidated Statement of Financial Position — Unaudited Total net assets increased by 5.32% to HKD 669 million as of June 30, 2025, driven by higher cash and receivables from related parties Consolidated Statement of Financial Position Summary (as of June 30, 2025) | Metric | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | | | | | Property, plant and equipment | 250,719 | 247,963 | 1.11% | | Investment properties | 96,897 | 98,748 | -1.87% | | Intangible assets | 4,771 | 4,771 | 0.00% | | Other receivables | 22,266 | 18,378 | 21.16% | | Deferred tax assets | 28,969 | 34,742 | -16.62% | | Current assets | | | | | Inventories | 70,443 | 82,077 | -14.17% | | Trade and other receivables | 36,852 | 40,222 | -8.38% | | Amounts due from holding company and fellow subsidiaries | 37,141 | 14,228 | 161.05% | | Cash and bank balances | 249,598 | 216,520 | 15.28% | | Current liabilities | | | | | Trade and other payables | (71,261) | (70,409) | 1.21% | | Loans from related companies | (3,557) | (3,503) | 1.54% | | Lease liabilities (current) | (678) | (416) | 63.00% | | Non-current liabilities | | | | | Retirement benefit obligations | (9,631) | (11,524) | -16.59% | | Other payables (non-current) | (25,040) | (23,772) | 5.33% | | Lease liabilities (non-current) | (1,784) | (2,154) | -17.27% | | Total net assets | 668,595 | 634,794 | 5.32% | | Total equity | 668,595 | 634,794 | 5.32% | Consolidated Statement of Changes in Equity — Unaudited Total equity was HKD 669 million as of June 30, 2025, with profit attributable to equity holders at HKD 49.64 million Consolidated Statement of Changes in Equity Summary (as of June 30, 2025) | Metric | June 30, 2025 (HKD thousand) | January 1, 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Share capital | 252,524 | 252,524 | 0.00% | | Capital reserve | 112,970 | 112,970 | 0.00% | | Exchange fluctuation reserve | 68,929 | 69,229 | -0.43% | | Retained earnings | 255,493 | 261,849 | -2.43% | | Total equity attributable to equity holders of the Company | 689,916 | 696,572 | -0.96% | | Non-controlling interests | (21,321) | (24,100) | -11.53% | | Total equity | 668,595 | 672,472 | -0.58% | - For the six months ended June 30, 2025, profit for the period was HKD 49,644 thousand, and other comprehensive income was HKD 1,752 thousand, resulting in a total comprehensive income attributable to equity holders of the Company of HKD 51,396 thousand[104] - Dividends of HKD 18,679 thousand for the previous financial year were distributed in both 2025 and 2024[104] Condensed Consolidated Cash Flow Statement — Unaudited Net cash inflow from operating activities increased by 54.21% to HKD 57.06 million, with cash and cash equivalents at period-end reaching HKD 249.6 million Condensed Consolidated Cash Flow Statement Summary (for the six months ended June 30, 2025) | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Cash inflow from operating activities | 58,968 | 39,499 | 49.30% | | PRC enterprise income tax paid | (1,905) | (2,496) | -23.76% | | Net cash inflow from operating activities | 57,063 | 37,003 | 54.21% | | Net cash outflow from investing activities | (8,114) | (1,799) | 351.03% | | Net cash outflow from financing activities | (18,850) | (19,270) | -2.18% | | Net increase in cash and cash equivalents | 30,099 | 15,934 | 88.90% | | Effect of exchange rate changes | 2,979 | 1,390 | 114.32% | | Cash and cash equivalents at end of period | 249,598 | 197,303 | 26.50% | - Net cash inflow from operating activities significantly increased by 54.21%, reaching HKD 57,063 thousand[106] - Net cash outflow from investing activities substantially increased by 351.03%, to HKD 8,114 thousand[106] Notes to the Unaudited Interim Financial Report This section provides detailed notes to the unaudited interim financial report, covering accounting policies, segment information, and financial disclosures Basis of Preparation The interim financial report is prepared in accordance with HKAS 34 and Listing Rules, using consistent accounting policies, and has been reviewed by the Audit Committee - The interim financial report is prepared in accordance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants[109][114] - The report adopts accounting policies consistent with the 2024 annual financial statements, except for changes in accounting policies expected to be reflected in the 2025 annual financial statements[110][114] - This interim financial report is unaudited but has been reviewed by the Company's Audit Committee[113][115] Changes in Accounting Policies New and revised HKFRSs effective this period had no impact on the Group's accounting policies, and no early adoption of new standards occurred - The Hong Kong Institute of Certified Public Accountants has issued several new and revised Hong Kong Financial Reporting Standards that are effective for the Group's current accounting period, none of which have had an impact on the Group's accounting policies[119] - The Group has not early adopted any new standards or interpretations that are not yet effective for the current accounting period[119] Revenue and Segment Reporting All group revenue is from beer manufacturing and distribution, with Hong Kong segment revenue up 6.23% and China segment operating profit up 20.51% - The Group's principal business is the manufacture and distribution of bottled, canned, and draught beer, with all revenue derived from this business[117][120] Segment Revenue and Operating Profit (for the six months ended June 30, 2025) | Segment | 2025 Revenue (HKD thousand) | 2024 Revenue (HKD thousand) | Revenue Change (%) | 2025 Operating Profit (HKD thousand) | 2024 Operating Profit (HKD thousand) | Operating Profit Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Hong Kong | 250,054 | 235,383 | 6.23% | 37,357 | 21,755 | 71.72% | | Mainland China | 140,232 | 142,711 | -1.74% | 18,277 | 15,167 | 20.51% | | Total | 390,286 | 378,094 | 3.22% | 55,634 | 36,922 | 50.68% | Revenue by Geographical Location (for the six months ended June 30, 2025) | Region | 2025 Revenue (HKD thousand) | 2024 Revenue (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Hong Kong (place of incorporation) | 112,136 | 118,620 | -5.47% | | Mainland China | 32,045 | 30,902 | 3.69% | | Philippines | 240,960 | 222,454 | 8.32% | | Others | 5,145 | 6,118 | -15.90% | | Total | 390,286 | 378,094 | 3.22% | Profit before Taxation Profit before taxation for H1 2025 increased by 46.11% to HKD 61.56 million, with key expense items disclosed Components of Profit before Taxation (for the six months ended June 30, 2025) | Item | 2025 (HKD thousand) | 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Finance costs | 185 | 231 | -19.91% | | Staff costs | 77,714 | 74,853 | 3.82% | | Depreciation (property, plant and equipment) | 3,468 | 3,968 | -12.61% | | Depreciation (right-of-use assets) | 6,871 | 8,155 | -15.75% | | Cost of inventories | 233,419 | 237,896 | -1.88% | | Impairment losses on trade and other receivables | 150 | 186 | -19.35% | - For the six months ended June 30, 2025, profit before taxation was HKD 61,564 thousand, representing a 46.11% increase from HKD 42,138 thousand in the same period of 2024[94] Income Tax Income tax expense significantly increased to HKD 10.48 million due to deferred tax movements, with PRC operations taxed at 25% Components of Income Tax (for the six months ended June 30, 2025) | Item | 2025 (HKD thousand) | 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Current tax — Mainland China | 4,601 | 3,628 | 26.82% | | Deferred tax — origination and reversal of temporary differences | 5,874 | — | N/A | | Total Income Tax | 10,475 | 3,628 | 188.73% | - For both 2025 and 2024, no provision for Hong Kong Profits Tax was made for the Company and other Hong Kong subsidiaries, as accumulated tax losses exceeded estimated assessable profits or entities incurred losses[139][141] - The Group's operations in the People's Republic of China are subject to the Enterprise Income Tax Law of the People's Republic of China, with a standard tax rate of 25%[140][141] Dividends The Board resolved not to declare an interim dividend for 2025, while the final dividend for the previous fiscal year was HKD 18.68 million - The Board resolved not to declare an interim dividend for 2025 (2024: nil)[144][145] Dividends Paid (for the six months ended June 30, 2025) | Dividend Type | 2025 (HKD thousand) | 2024 (HKD thousand) | | :--- | :--- | :--- | | Final dividend for previous financial year (HKD 0.05 per ordinary share) | 18,679 | 18,679 | Earnings per Share Basic earnings per share for H1 2025 increased to 13.3 cents, with no diluted earnings per share presented due to the absence of dilutive potential ordinary shares Earnings per Share (for the six months ended June 30, 2025) | Metric | 2025 (Cents) | 2024 (Cents) | Change (%) | | :--- | :--- | :--- | :--- | | Basic earnings per share | 13.3 | 10.1 | 31.68% | - Diluted earnings per share are not presented as there are no dilutive potential ordinary shares in issue for the Company[148][149] Non-current Assets Total net book value of property, plant, and equipment and investment properties was HKD 347.62 million as of June 30, 2025 Net Book Value of Non-current Assets (as of June 30, 2025) | Item | June 30, 2025 (HKD thousand) | January 1, 2025 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Property, plant and equipment | 250,719 | 247,963 | 1.11% | | Investment properties | 96,897 | 98,748 | -1.87% | | Total | 347,616 | 346,711 | 0.26% | - In H1 2025, additions to property, plant and equipment amounted to HKD 11,292 thousand, and additions to investment properties amounted to HKD 514 thousand[153] Inventories Total inventories decreased by 14.17% to HKD 70.44 million as of June 30, 2025, with reductions in finished goods, work-in-progress, and materials Components of Inventories (as of June 30, 2025) | Item | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Finished goods and work-in-progress | 37,340 | 45,985 | -18.80% | | Materials and supplies | 33,103 | 36,092 | -8.28% | | Total | 70,443 | 82,077 | -14.17% | Trade and Other Receivables Total trade and other receivables slightly increased to HKD 59.12 million as of June 30, 2025, with most trade receivables being current Trade and Other Receivables (as of June 30, 2025) | Item | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade receivables (net of loss allowance) | 29,974 | 29,749 | 0.76% | | Other trade receivables, deposits and prepayments | 29,144 | 28,851 | 1.02% | | Total | 59,118 | 58,600 | 0.89% | Aging of Trade Receivables (as of June 30, 2025) | Aging | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Not yet due | 27,873 | 26,942 | 3.46% | | Less than one month overdue | 1,249 | 1,857 | -32.74% | | 1 to 3 months overdue | 446 | 412 | 8.25% | | 3 to 12 months overdue | 406 | 538 | -24.49% | | Total | 29,974 | 29,749 | 0.76% | - Management maintains a credit policy and continuously monitors credit risk, with credit terms determined based on individual customer's financial standing[161][162] Cash and Cash Balances Total cash and bank balances increased by 15.28% to HKD 249.6 million as of June 30, 2025, primarily due to a significant rise in bank balances and cash Components of Cash and Bank Balances (as of June 30, 2025) | Item | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Bank deposits with original maturity within three months | 121,813 | 145,378 | -16.21% | | Bank deposits with original maturity greater than three months | — | 10,800 | -100.00% | | Bank balances and cash | 127,785 | 60,342 | 111.77% | | Total | 249,598 | 216,520 | 15.28% | Trade and Other Payables Total trade and other payables slightly increased to HKD 96.3 million as of June 30, 2025, with most trade payables due within two to three months Components of Trade and Other Payables (as of June 30, 2025) | Item | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade payables | 28,745 | 36,166 | -20.52% | | Other payables and accrued expenses | 67,556 | 58,015 | 16.45% | | Total | 96,301 | 94,181 | 2.25% | Aging of Trade Payables (as of June 30, 2025) | Aging | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Not yet due and less than one month overdue | 28,731 | 36,144 | -20.51% | | 1 to 3 months overdue | 6 | 15 | -60.00% | | 3 to 6 months overdue | 6 | 7 | -14.29% | | More than 6 months overdue | 2 | — | N/A | | Total | 28,745 | 36,166 | -20.52% | - The Group's general credit terms from suppliers are due within one to two months from the invoice date[169] Capital Commitments Total capital commitments not provided for in the interim financial report amounted to HKD 29.52 million as of June 30, 2025 Capital Commitments (as of June 30, 2025) | Item | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Contracted | 13,803 | 2,836 | 386.64% | | Approved but not contracted | 15,720 | 27,555 | -42.95% | | Total | 29,523 | 30,391 | -2.86% | Material Related Party Transactions The Group engaged in various material related party transactions, including purchases, sales, royalty fees, and interest expenses, conducted on agreed terms Material Related Party Transactions (for the six months ended June 30, 2025) | Transaction Type | 2025 (HKD thousand) | 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Purchases from intermediate holding company | 585 | 467 | 25.27% | | Purchases from fellow subsidiaries | 478 | 2,161 | -77.97% | | Purchases from related companies | 11,607 | 10,640 | 9.09% | | Sales to intermediate holding company | 240,960 | 222,454 | 8.32% | | Sales to fellow subsidiaries | — | 9 | -100.00% | | Royalty fees paid to intermediate holding company | 1,362 | 664 | 105.12% | | Interest expense on loans from related companies | 77 | 135 | -42.96% | | Late payment charges paid to related companies | 133 | 131 | 1.53% | | Service fees received from intermediate holding company | 947 | 898 | 5.46% | - These transactions were conducted on terms agreed between the parties. Under the Listing Rules, these transactions (except for purchases from related companies) constitute related party transactions or continuing connected transactions[177][178][179]