励时集团(01327) - 2025 - 中期业绩

Management Discussion and Analysis Financial Review The Group's revenue slightly decreased, but gross profit significantly increased due to higher average selling prices of branded watches, while other income and losses turned profitable, and the loss for the period narrowed substantially Revenue - Revenue slightly decreased by 3.2%, primarily due to intense industry competition leading to fewer sales orders, partially offset by increased exhibition income and higher average selling prices of branded watches[6] Revenue Overview | Indicator | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Change (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 21.4 | 22.1 | (0.7) | (3.2%) | Cost of Sales - Cost of sales decreased by 21.7%, consistent with the reduction in revenue from branded watch sales during the period[7] Cost of Sales Overview | Indicator | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Change (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Cost of sales | 12.6 | 16.1 | (3.5) | (21.7%) | Gross Profit and Gross Margin - Gross profit significantly increased by 49.2%, primarily due to higher average selling prices of branded watches[8] - Overall gross margin improved from 26.9% to 41.1%[8] Gross Profit and Gross Margin Overview | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Gross profit (RMB million) | 8.8 | 5.9 | 49.2% increase | | Gross margin | 41.1% | 26.9% | 14.2 percentage points increase | Other Income and Losses - Other income and losses turned from a loss of RMB 5.7 million in the prior period to an income of RMB 1.2 million, mainly due to unrealized fair value changes of financial assets at fair value through profit or loss[9] Other Income and Losses Overview | Indicator | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Other income and losses | 1.2 (income) | (5.7) (loss) | Turnaround to profit | Selling and Distribution Expenses - Selling and distribution expenses remained stable at approximately RMB 2.8 million[10] Selling and Distribution Expenses Overview | Indicator | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Selling and distribution expenses | 2.8 | 2.8 | Stable | Administrative Expenses - Administrative expenses increased by RMB 4.7 million to RMB 11.4 million, primarily due to higher depreciation and staff costs[11] Administrative Expenses Overview | Indicator | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Administrative expenses | 11.4 | 6.7 | 4.7 increase | Finance Costs - Finance costs slightly decreased to RMB 1.3 million[12] Finance Costs Overview | Indicator | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Finance costs | 1.3 | 1.5 | (0.2) decrease | Loss Before Tax - Loss before tax decreased from RMB 10.7 million in the prior period to RMB 5.6 million[14] Loss Before Tax Overview | Indicator | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Loss before tax | (5.6) | (10.7) | 5.1 decrease | Loss for the Period - Loss for the period decreased from RMB 10.7 million in the prior period to RMB 5.6 million, influenced by increased gross profit, higher administrative expenses, and the turnaround in other income and losses[15] Loss for the Period Overview | Indicator | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Loss for the period | (5.6) | (10.7) | 5.1 decrease | Prospects and Future Outlook The Group plans to enhance watch and jewelry design capabilities by strengthening its design team and recruiting talent to navigate the challenging economic environment of 2025, focusing on luxury high-end watches and jewelry and considering collaborations with renowned designers - The Group aims to enhance watch and jewelry design and development capabilities and strengthen core competitiveness by improving the design and artistic literacy of its design team and recruiting more talent[16] - Anticipating a challenging year in 2025, the Group will closely monitor market responses and re-strategize its business and product portfolio to adapt to market demands[16] - The Group remains optimistic about the luxury high-end watch, luxury jewelry, and accessories consumer markets in the long term, especially driven by the rising middle class and increased disposable income of Chinese women[16] - Consideration is given to collaborating with renowned designers for fashionable, reasonably priced watches and jewelry suitable for professional wear[16] Financial Position The Group's cash and bank balances significantly increased, liquidity ratio substantially improved, and gearing ratio significantly decreased, indicating improved liquidity and reduced financial leverage - Total cash and bank balances increased to approximately RMB 2.4 million (December 31, 2024: approximately RMB 1.0 million)[18] - Current ratio increased from 5.7 times as of December 31, 2024, to 15.5 times as of June 30, 2025[18] - Gearing ratio decreased from approximately 86.2% as of December 31, 2024, to approximately 52.0% as of June 30, 2025[18] Financial Position Key Indicators | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Cash and bank balances (RMB million) | 2.4 | 1.0 | 1.4 increase | | Current ratio | 15.5 times | 5.7 times | 9.8 times increase | | Gearing ratio | 52.0% | 86.2% | 34.2 percentage points decrease | Debts and Asset Pledges As of June 30, 2025, the Group had not pledged any assets to secure loans - As of June 30, 2025, the Group had not pledged any assets to obtain any loans[19] Capital Commitments As of June 30, 2025, the Group had no significant capital commitments - As of June 30, 2025, the Group had no significant capital commitments (December 31, 2024: RMB zero)[21] Foreign Exchange Risk The Group primarily operates in China, facing foreign exchange risks related to RMB and USD, with no hedging arrangements in place during the period, but management will monitor and hedge as necessary - The Group primarily operates in China and is exposed to foreign exchange risks related to RMB and USD[22] - For the six months ended June 30, 2025, the Group had not entered into any hedging arrangements[22] - Management will continue to closely monitor foreign currency risks and make hedging arrangements when necessary[22] Capital Structure Details of changes in the Company's share capital are provided in Note 12 to the condensed consolidated interim financial statements - Details of changes in the Company's share capital are set out in Note 12 to the condensed consolidated interim financial statements[23] Contingent Liabilities As of June 30, 2025, and December 31, 2024, the Group had no significant contingent liabilities - The Group had no significant contingent liabilities as of June 30, 2025, and December 31, 2024[24] Dividend Payment The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025[25] Significant Acquisitions or Disposals For the six months ended June 30, 2025, there were no significant acquisitions or disposals of subsidiaries and associates - For the six months ended June 30, 2025, there were no significant acquisitions or disposals of subsidiaries and associates[26] Significant Investments The Group holds significant investments in listed securities, including Caixin Media Group Co., Ltd. and Juntai Holdings Limited, totaling RMB 15.853 million, representing 22.7% of total assets, with a strategy to maximize sustainable long-term returns - As of June 30, 2025, significant investments totaled RMB 15.853 million, representing 22.7% of the Group's total assets[27] - The investment strategy aims to build a diversified and flexible investment portfolio to maximize sustainable long-term returns and strive for high growth[28] Significant Investment Details | Investee Company Name | Fair Value Gain/(Loss) (RMB thousand) | Fair Value as of June 30, 2025 (RMB thousand) | Percentage of Group's Total Assets (%) | Number of Shares Held | Percentage of Equity Held (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Caixin Media Group Co., Ltd. (205.HK) | 2,278 | 4,437 | 6.4% | 11,620,000 | 1.58% | | Juntai Holdings Limited (630.HK) | 4,076 | 7,337 | 10.5% | 29,890,000 | 3.09% | | Other listed securities | (5,204) | 4,079 | 5.8% | - | - | | Total | 1,150 | 15,853 | 22.7% | - | - | Employees and Remuneration Policy As of June 30, 2025, the Group maintained 56 employees, with total remuneration costs increasing to approximately RMB 4.7 million, and annual performance reviews determine salaries and promotions to attract and retain valuable employees - As of June 30, 2025, the Group employed 56 employees, consistent with the end of last year[30] - Total remuneration costs increased to approximately RMB 4.7 million (prior period 2024: approximately RMB 3.5 million)[30] - Employee performance is assessed annually, with results used to determine annual salaries and promotions to attract and retain talent[30] Remuneration Costs Overview | Indicator | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Total remuneration costs | 4.7 | 3.5 | 1.2 increase | Purchase, Sale or Redemption of the Company's Listed Securities For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities[31] Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company As of June 30, 2025, no directors or chief executives held any interests or short positions in the Company's or its associated corporations' shares, underlying shares, or debentures requiring disclosure under the SFO or the Model Code - As of June 30, 2025, no directors or chief executives of the Company held any interests or short positions in the shares, underlying shares, or debentures of the Company or any of its associated corporations that are required to be notified to the Company and the Stock Exchange under the Securities and Futures Ordinance or the Model Code[34] Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares of the Company As of June 30, 2025, no other persons (excluding directors and chief executives) held or were deemed to hold any disclosable interests or short positions of 5% or more in the shares or underlying shares - As of June 30, 2025, no other persons (excluding directors and chief executives of the Company) held or were deemed to hold any interests or short positions of 5% or more in the shares or underlying shares that are required to be disclosed under the Securities and Futures Ordinance[35] Directors' Rights to Acquire Shares or Debentures For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries was a party to any arrangement enabling directors or their associates to acquire benefits by purchasing shares or debt securities of the Company or any associated corporation - For the six months ended June 30, 2025, no rights were granted to any director or their respective spouses or children under 18 years of age to acquire benefits through the acquisition of shares or debentures of the Company or any other body corporate[36] Directors' Interests in Competing Businesses For the six months ended June 30, 2025, the directors were unaware of any business or interest of any director or their respective associates that competed or might compete with the Group's business, or any other conflict of interest - For the six months ended June 30, 2025, the directors were unaware of any business or interest that competed with or had a conflict of interest with the Group's business[37] Corporate Governance Code For the six months ended June 30, 2025, the Group adopted and complied with the code provisions set out in Appendix 14 to the Listing Rules, the Corporate Governance Code, and Corporate Governance Report - The Group has adopted and complied with the code provisions set out in Appendix 14 to the Listing Rules, the Corporate Governance Code, and Corporate Governance Report[38] Standard Securities Dealing Code for Directors The Company has adopted the Standard Securities Dealing Code for Directors of Listed Issuers as set out in Appendix 10 to the Listing Rules, and all directors confirmed compliance after inquiry - The Company has adopted the Standard Securities Dealing Code for Directors of Listed Issuers as set out in Appendix 10 to the Listing Rules[39] - All directors confirmed compliance with the required standards set out in the Standard Code for the six months ended June 30, 2025[39] Audit Committee The Audit Committee, comprising three independent non-executive directors, reviewed the Company's accounting principles and practices, discussed audit, internal control, and financial reporting matters, and reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025 - The Audit Committee has reviewed the Company's adopted accounting principles and practices and discussed audit, internal control, and financial reporting matters[40] - The Audit Committee has reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025[40] Compliance with the Standard Code The Company has adopted a code of conduct for directors' securities transactions, with terms no less exacting than the required standards set out in Appendix 10 to the Listing Rules, and confirmed all directors have complied with it - The Company has adopted a code of conduct with terms no less exacting than the Standard Code set out in Appendix 10 to the Listing Rules[41] - All directors have complied with the Standard Code[41] Board of Directors As of June 30, 2025, the Board of Directors comprised two executive directors (Mr. Liang Yanhuan, Mr. Yang Xi) and three independent non-executive directors (Mr. Yu Junmin, Ms. Duan Baili, Mr. Zhong Weili) - The Board of Directors comprises two executive directors (Mr. Liang Yanhuan, Mr. Yang Xi) and three independent non-executive directors (Mr. Yu Junmin, Ms. Duan Baili, Mr. Zhong Weili)[42] Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the Group recorded a loss for the period of RMB 5.591 million, a significant reduction from RMB 10.729 million in the prior period, with basic and diluted loss per share improving to RMB 3.5 cents Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Six Months Ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 21,366 | 22,090 | | Cost of sales | (12,577) | (16,144) | | Gross profit | 8,789 | 5,946 | | Other income and losses | 1,150 | (5,733) | | Selling and distribution expenses | (2,785) | (2,762) | | Administrative expenses | (11,442) | (6,680) | | Finance costs | (1,303) | (1,500) | | Loss before tax | (5,591) | (10,729) | | Tax | – | – | | Loss for the period | (5,591) | (10,729) | | Exchange differences on translation of overseas operations | (2,136) | 136 | | Total comprehensive loss for the period | (7,727) | (10,593) | | Loss per share attributable to owners of the Company (RMB cents) | (3.5) | (9.6) | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's net current assets and total equity both increased, indicating an improved financial position, with non-current assets and current liabilities decreasing, while current assets and non-current liabilities remained relatively stable Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Assets | | | | Non-current assets | 9,198 | 13,877 | | Current assets | 60,572 | 59,874 | | Liabilities | | | | Current liabilities | 3,898 | 10,569 | | Non-current liabilities | 24,711 | 29,286 | | Equity | | | | Share capital | 1,911 | 45,286 | | Reserves | 39,250 | (11,390) | | Total equity | 41,161 | 33,896 | | Net current assets | 56,674 | 49,305 | | Total assets less current liabilities | 65,872 | 63,182 | Condensed Consolidated Statement of Changes in Equity As of June 30, 2025, total equity attributable to owners of the Company increased to RMB 41.161 million, with changes primarily influenced by share capital reduction and rights issue, offsetting the loss for the period and decrease in foreign currency translation reserve Condensed Consolidated Statement of Changes in Equity (Six Months Ended June 30, 2025) | Indicator | Share Capital (RMB thousand) | Share Premium (RMB thousand) | Foreign Currency Translation Reserve (RMB thousand) | Share Option Reserve (RMB thousand) | Accumulated Losses (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | January 1, 2025 (Audited) | 45,286 | 473,246 | 8,917 | 5,919 | (499,472) | 33,896 | | Loss for the period | – | – | – | – | (5,591) | (5,591) | | Other comprehensive income for the period | – | – | (2,136) | – | – | (2,136) | | Share capital reduction | (44,381) | – | – | – | 44,381 | – | | Shares issued under rights issue | 1,006 | 13,986 | – | – | – | 14,992 | | June 30, 2025 (Unaudited) | 1,911 | 487,232 | 6,781 | 5,919 | (460,682) | 41,161 | Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2025, the Group's net increase in cash and cash equivalents was RMB 1.409 million, primarily driven by net cash from financing activities, despite net cash outflow from operating activities Condensed Consolidated Statement of Cash Flows (Six Months Ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net cash used in operating activities | (2,824) | (235) | | Net cash used in investing activities | – | – | | Net cash from/(used in) financing activities | 4,233 | (410) | | Net increase/(decrease) in cash and cash equivalents | 1,409 | (645) | | Effect of exchange rate changes | (57) | 28 | | Cash and cash equivalents at beginning of period | 1,030 | 1,998 | | Cash and cash equivalents at end of period | 2,382 | 1,381 | Notes to the Condensed Consolidated Interim Financial Statements 1. Basis of Preparation These interim financial statements are prepared in accordance with HKAS 34 and the Listing Rules, with the Group primarily engaged in manufacturing, trading, and retailing of own-brand watches and jewelry, OEM watches, and assisting clients with exhibitions, using HKD as functional currency and RMB as presentation currency - Interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the Listing Rules[56] - The Group's principal activities include manufacturing, trading, and retailing of own-brand watches and jewelry, OEM watches, and assisting clients with exhibitions[56] - The Company's functional currency is HKD, and the presentation currency is RMB[56] 2. Application of New and Revised Hong Kong Financial Reporting Standards The condensed consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value, and the Group has initially applied amendments to HKAS 21, which are not expected to have a significant impact on operating results and financial position - The condensed consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value[57] - The Group has initially applied the amendments to Hong Kong Accounting Standard 21 "The Effects of Changes in Foreign Exchange Rates—Lack of Exchangeability," effective from January 1, 2025[58] - The adoption of new and revised Hong Kong Financial Reporting Standards is not expected to have a significant impact on the Group's operating results and financial position[58] 3. Operating Segments The Group operates two business segments: watch manufacturing, trading, and retail, and assisting clients with exhibitions, with no separate reportable segments due to a single management team overseeing the entire business - The Group operates two business segments: watch manufacturing, trading, and retail, and assisting clients with exhibitions[60] - Due to a single management team, the Group has no separate reportable segments[60] Principal Product Turnover Principal Product Turnover (Six Months Ended June 30) | Product Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Branded watches | 16,655 | 19,080 | | Exhibition income | 4,711 | 3,010 | | Total | 21,366 | 22,090 | Geographical Information - The Group's operations and non-current assets are primarily located in the People's Republic of China and Hong Kong[62] External Customer Revenue by Customer Location (Six Months Ended June 30) | Customer Location | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Hong Kong, China | 4,711 | 3,010 | | China (excluding Hong Kong) | 16,655 | 19,080 | | Total | 21,366 | 22,090 | Major Customer Information - For the six months ended June 30, 2025, and 2024, no individual customer contributed more than 10% of the Group's total revenue[64] 4. Other Income and Losses During the period, financial assets at fair value through profit or loss generated an unrealized fair value gain of RMB 1.150 million, a significant improvement from a loss of RMB 5.733 million in the prior period Other Income and Losses (Six Months Ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Unrealized fair value loss on financial assets at fair value through profit or loss | 1,150 | (5,733) | | Total | 1,150 | (5,733) | 5. Finance Costs Finance costs, primarily from interest on bonds payable and lease liabilities, decreased to RMB 1.303 million during the period Finance Costs (Six Months Ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest on bonds payable and lease liabilities | 1,303 | 1,500 | 6. Taxation No Hong Kong profits tax was provided for the period due to no estimated assessable profits, while Chinese subsidiaries are subject to corporate income tax at a rate of 25% - For the six months ended June 30, 2025, and 2024, no Hong Kong profits tax was provided as there were no estimated assessable profits arising in or derived from Hong Kong[69] - Chinese subsidiaries are subject to a tax rate of 25%[70] Taxation (Six Months Ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Hong Kong profits tax | – | – | | Deferred tax reversed in Hong Kong | – | – | | Total | – | – | 7. Loss for the Period Loss for the period is stated after deducting employee expenses, advertising expenses, cost of inventories recognized as expense, and depreciation, with employee expenses and depreciation showing increases Loss for the Period Deductions (Six Months Ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Total employee expenses (including directors' emoluments) | 4,716 | 3,530 | | Advertising expenses | 2,785 | 962 | | Cost of inventories recognized as expense | 12,577 | 16,144 | | Depreciation | 4,291 | 3,870 | 8. Loss Per Share Attributable to Owners of the Company For the six months ended June 30, 2025, basic and diluted loss per share attributable to owners of the Company was RMB 3.5 cents, an improvement from RMB 9.6 cents in the prior period, with weighted average ordinary shares adjusted for capital reorganization and rights issue, and diluted loss per share being the same as basic due to anti-dilutive share options - Basic and diluted loss per share attributable to owners of the Company was RMB 3.5 cents (2024: RMB 9.6 cents)[74] - The weighted average number of ordinary shares has been adjusted for the share consolidation under the capital reorganization effective March 14, 2025, and the rights issue completed on April 30, 2025[74] - Diluted loss per share is the same as basic loss per share because the exercise of share options had an anti-dilutive effect[79] Loss Per Share Calculation Data (Six Months Ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss for the period attributable to owners of the Company (RMB thousand) | (5,591) | (10,729) | | Weighted average number of ordinary shares (thousand shares) | 158,580 | 111,305 | | Basic and diluted loss per share (RMB cents) | (3.5) | (9.6) | 9. Interim Dividend The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[76] 10. Property, Plant and Equipment For the six months ended June 30, 2025, the Group did not acquire any property, plant, and equipment - For the six months ended June 30, 2025, the Group did not acquire any property, plant, and equipment[77] 11. Trade Receivables As of June 30, 2025, net trade receivables decreased to RMB 11.682 million, with a significant reduction in receivables aged over 180 days, and the Group generally grants credit terms of 0 to 180 days to trade customers - Net trade receivables decreased to RMB 11.682 million (December 31, 2024: RMB 13.986 million)[78] - The Group generally grants credit terms of 0 to 180 days to its trade customers[78] Trade Receivables Ageing Analysis (Presented by Invoice Date at End of Reporting Period) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 30 days | 3,091 | 1,083 | | 31 to 60 days | 3,026 | 735 | | 61 to 90 days | – | 553 | | 91 to 180 days | 1,838 | 498 | | Over 180 days | 3,727 | 11,117 | | Total | 11,682 | 13,986 | 12. Share Capital The Company completed a capital reorganization on March 14, 2025, involving share consolidation, capital reduction, and share subdivision, followed by a rights issue on April 30, 2025, issuing 107,827,200 new shares and raising approximately HKD 16.2 million (before expenses), increasing issued share capital - The Company completed a capital reorganization on March 14, 2025, involving share consolidation, capital reduction, and share subdivision[80][81][83] - Share consolidation: every five (5) existing shares of HKD 0.10 each were consolidated into one (1) consolidated share of HKD 0.50 each[81] - Capital reduction: the par value of each issued consolidated share was reduced from HKD 0.50 to HKD 0.01, with the credit arising used to offset accumulated losses[81] - Rights issue: completed on April 30, 2025, issuing 107,827,200 rights shares on the basis of one rights share for every one issued share, raising a maximum of approximately HKD 16.2 million (before expenses)[83] Issued and Fully Paid Share Capital Overview | Indicator | June 30, 2025 (thousand shares) | December 31, 2024 (thousand shares) | | :--- | :--- | :--- | | Number of issued and fully paid ordinary shares | 215,654 | 539,136 | | Par value of issued and fully paid ordinary shares (RMB thousand) | 1,911 | 45,286 | 13. Share Option Scheme The Company's share option scheme was adopted on December 19, 2014, for a 10-year term, with no share options granted during the six months ended June 30, 2025, and the number of share options decreased due to adjustments - The share option scheme was adopted on December 19, 2014, with a term of 10 years[84] - For the six months ended June 30, 2025, no share options were granted under the share option scheme[84] Details of Changes in Number of Share Options Under Share Option Scheme | Indicator | Outstanding as of January 1, 2025 (thousand options) | Granted during the period (thousand options) | Exercised during the period (thousand options) | Adjusted during the period (thousand options) | Outstanding as of June 30, 2025 (thousand options) | | :--- | :--- | :--- | :--- | :--- | :--- | | Employee share options | 29,376 | – | – | (23,311) | 6,065 | 14. Events After the Reporting Period No significant events affecting the Group have occurred since the end of the reporting period - No significant events affecting the Group have occurred since the end of the reporting period[86]