廖创兴企业(00194) - 2025 - 中期财报

Company Information Board of Directors and Committees This section lists the members of the company's Board of Directors, Executive Management Committee, Audit Committee, Nomination Committee, Remuneration Committee, and Corporate Governance Committee - Mr. Liu Lit Chi serves as Chairman and Chief Executive[2] - Mr. Cheng Yuk Wo chairs the Audit Committee[2] - Dr. Cheng Mo Chi chairs the Remuneration Committee[3] - Mr. Liu Kam Fai chairs the Corporate Governance Committee[3] Legal Advisors, Auditors, Banks, and Offices This section provides the company's legal advisors, auditors, partner banks, and registered and office addresses in Hong Kong, Guangzhou, Shanghai, and Foshan Nanhai and Sanshui Districts - Auditor is Deloitte Touche Tohmatsu[4] - Key partner banks include Bangkok Bank, BNP Paribas, CITIC Bank International, Chong Hing Bank, Dah Sing Bank, DBS Bank (Hong Kong), Hang Seng Bank, MUFG Bank, O-Bank, OCBC Wing Hang Bank, Standard Chartered Bank (Hong Kong), and The Hongkong and Shanghai Banking Corporation[4] - The company has a registered office in Hong Kong and offices in Guangzhou, Shanghai, Foshan Nanhai District, and Sanshui District in mainland China[5] Shareholder Information Financial Calendar and Dividends This section discloses the company's financial calendar, including the Annual General Meeting, interim results announcement, interim cash dividend payment details, and share transfer registration arrangements - Interim cash dividend: HK$0.11 per share, payable on September 12, 2025[7] - Share transfer registration will be suspended from September 2 to September 4, 2025[7] - The company's shares are listed and traded on the Hong Kong Stock Exchange, stock code 00194, trading unit 2,000 shares[7] Condensed Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, the company achieved a profit of HK$13,717 thousand, a significant improvement from a loss of HK$418,486 thousand in the prior period, driven by substantial revenue growth and a turnaround to pre-tax profit Key Data from Condensed Consolidated Statement of Profit or Loss (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | 551,917 | 363,686 | 188,231 | 51.76% | | Direct Costs | (266,177) | (126,828) | (139,349) | 109.87% | | Other Income and Losses | (66,309) | (362,123) | 295,814 | -81.69% | | Finance Costs | (70,966) | (98,229) | 27,263 | -27.75% | | Share of results of joint ventures | 65,059 | (47,052) | 112,111 | -238.27% | | Profit (Loss) before tax | 1,637 | (439,061) | 440,698 | -100.37% | | Profit (Loss) for the period | 13,717 | (418,486) | 432,203 | -103.28% | | Basic earnings (loss) per share | HK$0.04 | HK$(1.10) | | Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, total comprehensive income was HK$90,829 thousand, a significant improvement from a loss of HK$467,737 thousand in the prior period, primarily due to a profit for the period and a reversal of exchange differences from foreign operations Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Profit (Loss) for the period | 13,717 | (418,486) | 432,203 | -103.28% | | Fair value loss on equity instruments at fair value through other comprehensive income | (5,894) | (2,633) | (3,261) | 123.85% | | Exchange differences arising on translation of foreign operations | 78,600 | (45,154) | 123,754 | -274.09% | | Share of other comprehensive income (expense) of joint ventures (after tax) | 4,406 | (1,464) | 5,870 | -400.96% | | Other comprehensive income (expense) for the period (after tax) | 77,112 | (49,251) | 126,363 | -256.57% | | Total comprehensive income (expense) for the period | 90,829 | (467,737) | 558,566 | -119.43% | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the company's total assets less current liabilities slightly increased, net current assets slightly decreased, and total equity marginally grew, indicating stable financial health Key Data from Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | Change (HK$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Non-current Assets | 11,332,516 | 11,313,017 | 19,499 | 0.17% | | Current Assets | 3,333,765 | 3,578,557 | (244,792) | -6.84% | | Current Liabilities | 1,635,901 | 1,862,116 | (226,215) | -12.15% | | Net Current Assets | 1,697,864 | 1,716,441 | (18,577) | -1.08% | | Total Assets Less Current Liabilities | 13,030,380 | 13,029,458 | 922 | 0.01% | | Non-current Liabilities | 2,466,296 | 2,491,844 | (25,548) | -1.02% | | Total Equity | 10,564,084 | 10,537,614 | 26,470 | 0.25% | Condensed Consolidated Statement of Changes in Equity For the six months ended June 30, 2025, total equity attributable to shareholders increased from HK$10,506,524 thousand on January 1, 2025, to HK$10,527,063 thousand, primarily influenced by profit for the period and increased exchange reserves Key Data from Condensed Consolidated Statement of Changes in Equity (Attributable to Company Shareholders) | Indicator | Jan 1, 2025 (HK$ thousand) | June 30, 2025 (HK$ thousand) | Change (HK$ thousand) | | :--- | :--- | :--- | :--- | | Share Capital | 381,535 | 381,535 | 0 | | Special Reserve | (23,763) | (23,763) | 0 | | Property Revaluation Reserve | 2,956,817 | 2,956,817 | 0 | | Investment Revaluation Reserve | (23,495) | (12,854) | 10,641 | | Exchange Reserve | (92,726) | (18,534) | 74,192 | | Statutory Surplus Reserve | 90,378 | 90,394 | 16 | | Accumulated Profits | 7,217,778 | 7,153,468 | (64,310) | | Total attributable to company shareholders | 10,506,524 | 10,527,063 | 20,539 | - In H1 2025, profit for the period was HK$16,600 thousand, a significant improvement from a loss of HK$416,720 thousand in H1 2024[13][12] - Exchange differences from foreign operations turned from an expense of HK$43,908 thousand in H1 2024 to income of HK$69,786 thousand in H1 2025[13][12] Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2025, net cash from operating activities significantly increased, but net cash from financing activities shifted from inflow to outflow, resulting in a net decrease in cash and cash equivalents Key Data from Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Net cash from operating activities | 137,708 | 84,290 | 53,418 | 63.37% | | Net cash used in investing activities | (4,127) | (92,273) | 88,146 | -95.53% | | Net cash (used in) from financing activities | (251,577) | 881,277 | (1,132,854) | -128.54% | | Net (decrease) increase in cash and cash equivalents | (117,996) | 873,294 | (991,290) | -113.51% | | Cash and cash equivalents at end of period | 1,919,202 | 2,022,422 | (103,220) | -5.10% | - New borrowings of HK$380,000 thousand were obtained in H1 2025, a significant decrease from HK$1,297,000 thousand in H1 2024[14] - Repayment of borrowings amounted to HK$495,320 thousand in H1 2025, an increase from HK$263,376 thousand in H1 2024[14] Notes to the Condensed Consolidated Financial Statements Basis of Preparation and Accounting Policies The condensed consolidated financial statements are prepared in accordance with HKAS 34 Interim Financial Reporting and the HKEX Listing Rules, based on historical cost and consistent accounting policies with the prior year - The condensed consolidated financial statements are presented in HK$ and prepared in accordance with HKAS 34 and the Listing Rules[15][16] - Accounting policies applied in the current period are consistent with those in the consolidated financial statements for the year ended December 31, 2024[17] - The application of HKFRS accounting standard amendments (e.g., HKAS 21 amendment 'Lack of Exchangeability') had no material impact on the Group's financial performance and position[18] Revenue Breakdown For the six months ended June 30, 2025, total revenue significantly grew by 51.76% to HK$551,917 thousand, primarily driven by substantial property development revenue, while hotel operations revenue decreased Revenue Breakdown (For the six months ended June 30) | Revenue Source | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Property Development | 215,096 | 8,978 | 206,118 | 2295.97% | | Property Management | 17,047 | 16,794 | 253 | 1.51% | | Trading and Manufacturing | 40,179 | 43,637 | (3,458) | -7.92% | | Hotel Operations | 77,772 | 101,124 | (23,352) | -23.09% | | Revenue from contracts with customers | 350,094 | 170,533 | 179,561 | 105.30% | | Property Investment (Rental Income) | 159,088 | 155,005 | 4,083 | 2.63% | | Financial Investment (Interest and Dividend Income) | 42,735 | 38,148 | 4,587 | 12.03% | | Total Revenue | 551,917 | 363,686 | 188,231 | 51.76% | - In H1 2025, property development revenue from mainland China was HK$215,096 thousand, while property management revenue from Hong Kong was HK$17,047 thousand[20] - Hotel operations revenue primarily from Thailand was HK$72,263 thousand in H1 2025[20] Segment Information The company reports revenue and results across six operating segments: property investment, property development, property management, financial investment, trading and manufacturing, and hotel operations; segment profit totaled HK$7,544 thousand in H1 2025, a significant improvement from a HK$293,780 thousand loss in H1 2024, mainly due to a substantial reduction in fair value losses on investment properties - The Group's six reportable segments are: property investment, property development, property management, financial investment, trading and manufacturing, and hotel operations[23] Segment Revenue and Profit (Loss) (For the six months ended June 30) | Segment | 2025 Segment Revenue (HK$ thousand) | 2025 Segment (Loss) Profit (HK$ thousand) | 2024 Segment Revenue (HK$ thousand) | 2024 Segment (Loss) Profit (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Property Investment | 159,952 | (5,477) | 156,099 | (258,753) | | Property Development | 215,096 | (31,480) | 8,978 | (16,074) | | Property Management | 24,412 | 4,881 | 24,278 | 7,334 | | Financial Investment | 42,735 | 35,746 | 38,148 | (6,517) | | Trading and Manufacturing | 40,179 | 2,631 | 43,637 | 2,821 | | Hotel Operations | 77,795 | 1,243 | 101,271 | (22,591) | | Segment Total | 560,169 | 7,544 | 372,411 | (293,780) | - In H1 2025, fair value losses on investment properties significantly decreased to HK$77,320 thousand, compared to HK$334,301 thousand in H1 2024[24][27][31] - The financial investment segment turned from a loss in H1 2024 to a profit in H1 2025, primarily due to fair value gains on financial assets at fair value through profit or loss and net exchange gains[24][27][31] Other Income and Losses For the six months ended June 30, 2025, net other income and losses were a deficit of HK$66,309 thousand, a significant reduction from a HK$362,123 thousand loss in the prior period, primarily due to a substantial decrease in fair value losses on investment properties Other Income and Losses (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Fair value loss on investment properties | (77,320) | (334,301) | 256,981 | -76.87% | | Fair value gain (loss) on financial instruments at fair value through profit or loss | 3,502 | (3,150) | 6,652 | -211.17% | | Fair value loss on derivative financial instruments | (4,661) | – | (4,661) | N/A | | Net exchange gain (loss) | 12,307 | (24,456) | 36,763 | -150.32% | | Loss on disposal of property, plant and equipment | (137) | (216) | 79 | -36.57% | | Total | (66,309) | (362,123) | 295,814 | -81.69% | Income Tax Credit For the six months ended June 30, 2025, the company recorded an income tax credit of HK$12,080 thousand, a decrease from HK$20,575 thousand in the prior period, mainly due to reduced deferred tax credits and increased PRC Land Appreciation Tax Income Tax Credit (Expense) (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Current tax (expense) | 4,233 | 4,896 | (663) | -13.54% | | Over-provision in prior years (credit) | (6) | (3) | (3) | 100.00% | | PRC Land Appreciation Tax (expense) | 3,682 | 630 | 3,052 | 484.44% | | Deferred tax (credit) | (19,989) | (26,098) | 6,109 | -23.41% | | Total (credit) | (12,080) | (20,575) | 8,495 | -41.29% | - Hong Kong profits tax is calculated at 16.5%, PRC subsidiaries' corporate income tax rate is 25%, and UK corporate tax rate is 25%[35][36] Profit (Loss) for the Period For the six months ended June 30, 2025, profit for the period was HK$13,717 thousand, after deducting staff costs, depreciation of property, plant and equipment, depreciation of right-of-use assets, and short-term lease expenses Profit (Loss) for the Period Deducted Items (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Staff Costs | 78,522 | 82,283 | (3,761) | -4.57% | | Depreciation of property, plant and equipment | 26,228 | 51,514 | (25,286) | -49.09% | | Depreciation of right-of-use assets | 2,902 | 531 | 2,371 | 446.52% | | Expenses relating to short-term leases | 554 | 1,894 | (1,340) | -70.75% | Basic Earnings (Loss) Per Share For the six months ended June 30, 2025, basic earnings per share were HK$0.04, a significant improvement from a loss of HK$1.10 per share in the prior period, reflecting a substantial increase in the company's profitability Basic Earnings (Loss) Per Share (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit (Loss) attributable to company shareholders | HK$16,600,000 | HK$(416,720,000) | | Number of ordinary shares issued | 378,583,440 shares | 378,583,440 shares | | Basic earnings (loss) per share | HK$0.04 | HK$(1.10) | - There were no potential ordinary shares in either period, thus diluted earnings per share are not presented[39] Dividends For the six months ended June 30, 2025, the company recognized a final dividend of HK$0.17 per share for 2024 and declared an interim dividend of HK$0.11 per share for 2025, consistent with the prior period Dividends Recognized and Declared (For the six months ended June 30) | Dividend Type | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Final dividend declared and paid for 2024 (HK$0.17 per share) | 64,359 | 64,359 | | Interim dividend declared for 2025 (HK$0.11 per share) | 41,644 | 41,644 | - The Board approved an interim cash dividend of HK$0.11 per share on August 7, 2025, payable to shareholders on the register as of September 4, 2025[40] Property, Plant and Equipment and Investment Properties For the six months ended June 30, 2025, the company disposed of some property, plant and equipment and investment properties, made new acquisitions, significantly narrowed fair value losses on investment properties, and recognized no impairment for Thailand hotel operation assets - Disposal of property, plant and equipment resulted in a loss of HK$137 thousand (H1 2024: HK$216 thousand)[41] - Cash proceeds from disposal of investment properties were HK$4,109 thousand (H1 2024: HK$5,798 thousand)[41] - Fair value losses on investment properties from valuation were approximately HK$77,320 thousand, a significant reduction from HK$334,301 thousand in H1 2024[42] - For the six months ended June 30, 2025, no impairment was recognized after assessing property, plant and equipment related to Thailand hotel operations[43] Equity Instruments at Fair Value Through Other Comprehensive Income and Financial Assets at Fair Value Through Profit or Loss As of June 30, 2025, the company held financial assets measured at fair value totaling HK$241,192 thousand, with unlisted equity securities forming the major portion, and most classified as non-current assets Classification of Financial Assets Measured at Fair Value (As of June 30) | Type | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Listed equity securities (FVPL) | 23,354 | 15,065 | | Listed equity securities (FVOCI) | 329 | 247 | | Unlisted equity securities (FVOCI) | 194,280 | 211,067 | | Perpetual capital securities (FVOCI) | 23,229 | 23,211 | | Total | 241,192 | 249,590 | - As of June 30, 2025, unlisted equity securities constituted the vast majority of equity instruments at fair value through other comprehensive income, amounting to HK$194,280 thousand[44] - Most financial assets measured at fair value are classified as non-current assets (HK$217,838 thousand)[44] Trade and Other Receivables As of June 30, 2025, total trade and other receivables were HK$226,015 thousand, a slight increase from December 31, 2024, with prepayments and other receivables being the main components Trade and Other Receivables (As of June 30) | Item | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade receivables | 27,690 | 34,115 | | Lease receivables | 7,871 | 4,902 | | Deposits paid | 4,237 | 5,271 | | Prepayments and other receivables | 134,856 | 126,993 | | VAT recoverable | 51,361 | 50,053 | | Total | 226,015 | 221,334 | - The average credit period for trade receivables is 30 to 90 days[46] - As of June 30, 2025, trade receivables overdue by more than 90 days amounted to HK$5,309 thousand[46] Trade and Other Payables As of June 30, 2025, total trade and other payables were HK$456,624 thousand, a decrease from December 31, 2024, with construction costs payable, retention money, and deposits received for investment properties being the main components Trade and Other Payables (As of June 30) | Item | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade payables | 8,810 | 9,158 | | Construction costs payable and retention money | 82,358 | 143,607 | | Deposits received for investment properties | 118,908 | 121,321 | | Rental received in advance | 8,502 | 9,351 | | Deposits received | 148,486 | 147,444 | | Other payables | 89,560 | 107,016 | | Total | 456,624 | 537,897 | - As of June 30, 2025, all trade payables were due within 30 days[48] Borrowings As of June 30, 2025, total company borrowings were HK$3,267,384 thousand, a slight decrease from December 31, 2024, primarily comprising secured and unsecured bank borrowings Composition of Borrowings (As of June 30) | Item | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Secured bank borrowings | 2,427,746 | 2,421,955 | | Unsecured bank borrowings | 830,000 | 930,000 | | Amounts due to non-controlling shareholders | 9,638 | 9,612 | | Total | 3,267,384 | 3,361,567 | - In H1 2025, the company obtained bank loans of approximately HK$380,000 thousand and repaid bank loans of approximately HK$495,320 thousand[49] Capital Commitments As of June 30, 2025, the company's contracted capital commitments not provided for in the condensed consolidated financial statements totaled HK$16,636 thousand, primarily for property, plant and equipment/investment properties Capital Commitments (As of June 30) | Item | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Property, plant and equipment/investment properties | 16,636 | 22,761 | Fair Value Measurement of Financial Instruments The company regularly reviews fair value measurements and valuation processes for financial instruments, classifying financial assets into three levels based on the fair value hierarchy; as of June 30, 2025, most financial assets are valued using active market quotes or observable market data, with unlisted equity securities valuations sensitive to assumptions Fair Value Hierarchy Classification of Financial Assets (As of June 30) | Fair Value Hierarchy | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Level 1 (Quoted prices in active markets) | 23,683 | 15,312 | | Level 2 (Observable inputs) | 23,229 | 23,211 | | Level 3 (Unobservable inputs) | 194,280 | 211,067 | | Total | 241,192 | 249,590 | - The fair value of unlisted equity securities is referenced to the market value of underlying assets, primarily Hong Kong investment properties held by the invested companies, with a discount applied for lack of marketability[55] - A small portion (approximately 1.3%) of the Group's total assets are financial assets measured and accounted for under Level 3 investments, and this valuation is highly sensitive to estimation assumptions[57] Related Party Disclosures For the six months ended June 30, 2025, the company's primary related party transactions involved rental expenses paid to directors or their affiliates, with key management personnel compensation also disclosed Related Party Transactions and Key Management Personnel Remuneration (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Rental expenses paid and payable to directors or their affiliates | 2,520 | 1,504 | | Key management personnel short-term benefits | 38,096 | 31,214 | | Key management personnel employee retirement benefits | 2,106 | 2,071 | | Total key management personnel remuneration | 40,202 | 33,285 | Pledged Assets As of June 30, 2025, the company has pledged hotel land and buildings, other equipment, leasehold land and buildings, and investment properties to banks to secure general banking facilities Pledged Assets (As of June 30) | Pledged Asset Type | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Hotel land and buildings and other equipment | 483,960 | 468,678 | | Leasehold land and buildings | 50,476 | 51,223 | | Investment properties | 4,495,739 | 4,520,251 | Review Report on Condensed Consolidated Financial Statements Conclusion of Review Deloitte Touche Tohmatsu has reviewed Liao's Consolidated Financial Statements and found no matters suggesting they are not prepared in all material respects in accordance with HKAS 34 - Auditor is Deloitte Touche Tohmatsu[66] - The scope of review is substantially less than an audit, thus no audit opinion is expressed[64] - The auditor found no matters suggesting the condensed consolidated financial statements are not prepared in all material respects in accordance with HKAS 34[65] Management Discussion and Analysis Interim Dividend and Share Transfer Registration The Board resolved to declare an interim cash dividend of HK$0.11 per share for 2025 and announced specific dates and times for the suspension of share transfer registration - The 2025 interim cash dividend is HK$0.11 per share, consistent with 2024[67] - Dividends will be paid on September 12, 2025, to shareholders on the register as of September 4, 2025[67] - Share transfer registration will be suspended from September 2 to September 4, 2025[68] Financial Performance Overview For the period ended June 30, 2025, the Group's unaudited consolidated profit was approximately HK$13,700,000, a significant increase from a loss in the prior period, primarily due to reduced fair value losses on investment properties and improved joint venture results - Consolidated profit for the period was approximately HK$13,700,000, an increase of approximately HK$432,200,000 from a loss of approximately HK$418,500,000 in the prior period[69] - Revenue primarily derived from property investment, property development, property management, financial investment, trading and manufacturing, and hotel operations[69] - Other income and losses primarily include fair value losses on investment properties and net exchange (losses) gains[71] Property Investment For the period ended June 30, 2025, the Group's gross rental income increased by 3% year-on-year to HK$159,100,000, with an overall occupancy rate of 83.6%; Hong Kong, China, and UK investment properties showed mixed performance, with Shanghai Chong Hing Financial Center's rental income decreasing while London Barratt House's increased Property Investment Rental Income (For the period ended June 30) | Property | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Chong Hing Square (Hong Kong) | 30,400 | 29,300 | 1,100 | 3.75% | | Chong Hing Bank Centre (Hong Kong) | 36,500 | 39,600 | (3,100) | -7.83% | | Shek Tong Tsui Square (Hong Kong) | 6,800 | 8,100 | (1,300) | -16.05% | | Fu Wai Court (Hong Kong) | 2,000 | 1,600 | 400 | 25.00% | | 181–183 Connaught Road West (Hong Kong) | 13,200 | N/A | N/A | N/A | | Shanghai Chong Hing Financial Center (China) | 50,800 | 57,800 | (7,000) | -12.11% | | Barratt House, London (UK) | 13,000 | 12,400 | 600 | 4.84% | | Total Gross Rental Income | 159,100 | 155,000 | 4,100 | 2.65% | - Overall occupancy rate maintained at 83.6%[73] - Chong Hing Bank Centre's rental income decreased by 7.8% due to reduced rent upon renewal[75] - Shanghai Chong Hing Financial Center's office occupancy rate is approximately 75%, retail unit occupancy is 83%, and management is implementing strategies to enhance occupancy and rental income[79] - London Barratt House occupancy rate is 86%[80] Property Development For the period ended June 30, 2025, property development sales revenue surged by 2,290% to HK$215,100,000, primarily due to new sales recognition from Sanshui Xuanlong Yayuan; Foshan Cuihu Green Oasis Garden is largely sold out, and Sanshui Xuanlong Yayuan shows strong sales performance Property Development Sales Revenue (For the period ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Sales Revenue | 215,100 | 9,000 | 206,100 | 2290.00% | - Foshan Cuihu Green Oasis Garden project has sold all 5,264 residential units and 2,457 (53%) of 4,670 parking spaces, with cumulative sales revenue of approximately HK$6 billion[84] - Sanshui Xuanlong Yayuan has publicly sold 483 (81%) of 600 residential units, with total sales revenue of approximately RMB497,200,000[87] - The remaining 484 residential units are scheduled for sale in H2 2025[88] Hotel Operations For the period ended June 30, 2025, total revenue for Kimpton Kitalay Samui Hotel in Thailand grew to HK$72,300,000, with EBITDA of approximately HK$24,700,000, demonstrating strong performance exceeding budget Hotel Operations Performance (For the period ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | 72,300 | 58,400 | 13,900 | 23.80% | | EBITDA | 24,700 | N/A | N/A | N/A | - Kimpton Kitalay Samui Hotel has been fully operational since January 2022 and is one of the highest-rated Kimpton hotels in Asia Pacific[89][90] - Hotel management will continue to implement effective strategies to maintain and enhance growth momentum[90] Share of Results of Joint Ventures For the period ended June 30, 2025, share of results of joint ventures turned from a HK$47,100,000 loss in the prior period to a HK$65,100,000 profit, primarily due to the disposal of Japanese warehouses and partial beneficial interests in Australian property trusts Share of Results of Joint Ventures (For the period ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Share of results of joint ventures | 65,100 | (47,100) | 112,200 | -238.22% | - The Group co-invests with Value Partners Group Limited in logistics centers and commercial buildings in Japan, Australia, and Italy, which maintain stable rental income and high occupancy rates[91] - The Group successfully disposed of three warehouses in Hokkaido, Higashimatsuyama, and Hadano, Japan, generating proceeds of JPY9,660,000,000 (approximately HK$511,000,000)[91] - The sale of the remaining Japanese warehouse is expected to be completed in Q3 2025[91] Outlook Despite challenging global economic conditions, management will maintain a prudent and disciplined strategy, focusing on operational resilience, risk management, and long-term value creation, continuously optimizing business operations and enhancing asset performance to strengthen the Group's competitive position in future recovery - The global economic environment remains challenging, but interest rate reductions offer some relief[92] - Management will maintain a prudent strategy, focusing on operational resilience, risk management, and long-term value creation[92] - Will continue to optimize business operations, enhance asset performance, and safeguard stakeholders' interests[92] Other Information Directors' and Major Shareholders' Interests As of June 30, 2025, Mr. Liu Lit Chi holds 58.77% of the company's shares, and Mr. Liu Kam Fai holds 0.73%; Liu's Group Limited and Aibao Group Limited are major shareholders, holding 34.95% and 23.81% respectively Directors' Equity Interests in the Company and its Associated Corporations (As of June 30, 2025) | Director Name | Total Interests (Number of ordinary shares) | Approximate % of issued share capital | | :--- | :--- | :--- | | Mr. Liu Lit Chi | 222,499,000 | 58.77% | | Mr. Liu Kam Fai | 2,756,867 | 0.73% | - Mr. Liu Lit Chi's interests are primarily held through Liu's Group Limited and Aibao Group Limited[93] Major Shareholders' Interests (As of June 30, 2025) | Major Shareholder Name | Number of ordinary shares held | % of issued share capital | | :--- | :--- | :--- | | Liu's Group Limited | 132,326,710 | 34.95% | | Aibao Group Limited | 90,148,290 | 23.81% | - The interests of Liu's Group Limited and Aibao Group Limited are both related to Mr. Liu Lit Chi and his associates[95] Employees and Remuneration Policy As of June 30, 2025, the Group employed 529 staff with total employee costs of approximately HK$78,500,000; the remuneration policy is reasonable and competitive, including basic salaries and performance-linked bonuses Employees and Remuneration Costs (As of June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Number of Employees | 529 persons | 602 persons | | Total Employee Costs | HK$78,500,000 | HK$82,300,000 | - The remuneration policy, considered and recommended by the Remuneration Committee, aims to be reasonable and competitive, linked to performance[96] Corporate Governance Code The company substantially complied with Appendix C1 of the Listing Rules' Corporate Governance Code during the review period, though the roles of Chairman and Chief Executive are not separated, which the Board believes is in the company's best interest - The company substantially complied with the Corporate Governance Code[97] - The roles of Chairman and Chief Executive are not separated, which the Board believes is in the company's best interest, given Mr. Liu Lit Chi's extensive experience in the property and banking sectors[98] Changes in Directors' Information Dr. Cheng Mo Chi, an Independent Non-executive Director, was appointed Chairman of the Hong Kong Maritime and Port Board on July 1, 2025 - Dr. Cheng Mo Chi was appointed Chairman of the Hong Kong Maritime and Port Board on July 1, 2025[99] Model Code for Securities Transactions by Directors of Listed Issuers During the review period, all Directors confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules - All Directors confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers[101] Purchase, Sale or Redemption of Shares For the six months ended June 30, 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's shares - Neither the company nor its subsidiaries purchased, sold, or redeemed shares during the reporting period[102] Review of Unaudited Interim Financial Report The Audit Committee reviewed the Group's accounting policies, internal controls, and financial reporting with management, and Deloitte Touche Tohmatsu issued an unmodified review report in accordance with Hong Kong Standard on Review Engagements 2410 - The Audit Committee reviewed accounting policies, internal controls, and financial reporting[103] - Auditor Deloitte Touche Tohmatsu issued an unmodified review report[103] Publication of Results on Website The results announcement has been published on the HKEXnews website and the company's website, and the interim results report will be dispatched to shareholders and published on the website on August 29, 2025 - The results announcement has been published on the HKEXnews website and the company's website[104] - The interim results report will be dispatched to shareholders and published on the website on August 29, 2025[104] Board of Directors As of the interim report date, the Board of Directors includes Executive Directors, Non-executive Directors, and Independent Non-executive Directors, with Mr. Liu Lit Chi serving as Chairman and Chief Executive - The Board of Directors includes Mr. Liu Lit Chi (Chairman and Chief Executive), Mr. Liu Kam Fai (Vice Chairman) as Executive Directors, Mr. Hui Wing Chuen as a Non-executive Director, and several Independent Non-executive Directors[105]