中星集团控股(00055) - 2025 - 中期业绩

Condensed Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Total revenue for the period was 174,000 thousand HKD, a 12.6% decrease, with gross profit at 35,904 thousand HKD and a 20.6% margin, and loss significantly narrowed to 22,834 thousand HKD | Metric | June 30, 2025 (thousand HKD) | June 30, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 174,000 | 199,197 | -12.6% | | Cost of Sales and Services | (138,096) | (155,729) | -11.3% | | Gross Profit | 35,904 | 43,468 | -17.4% | | Loss Before Tax | (24,629) | (39,534) | -37.7% | | Loss for the Period | (22,834) | (40,109) | -43.1% | | Loss for the Period Attributable to Owners of the Company | (22,602) | (40,056) | -43.6% | | Basic Loss Per Share (HK cents) | (8.9) | (15.8) | -43.7% | Condensed Consolidated Statement of Financial Position As of June 30, 2025, total assets were 1,066,906 thousand HKD, a slight decrease from December 31, 2024, with net current assets at 366,099 thousand HKD and net assets at 613,523 thousand HKD | Metric | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current Assets | 330,861 | 331,485 | -0.2% | | Current Assets | 736,045 | 745,608 | -1.3% | | Current Liabilities | 369,946 | 367,337 | +0.7% | | Net Current Assets | 366,099 | 378,271 | -3.2% | | Net Assets | 613,523 | 625,790 | -1.96% | Condensed Consolidated Statement of Changes in Equity Total equity attributable to owners of the company decreased from 629,607 thousand HKD to 617,685 thousand HKD, primarily due to the 22,602 thousand HKD loss for the period, partially offset by exchange differences from translating overseas operations | Metric | June 30, 2025 (thousand HKD) | January 1, 2024 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | Total Attributable to Owners of the Company (End of Period) | 617,685 | 629,607 | -11,922 | | Loss for the Period | (22,602) | (40,056) | +17,454 | | Exchange Differences Arising from Translating Overseas Operations | 10,680 | (8,380) | +19,060 | Notes to the Condensed Consolidated Financial Statements Basis of Preparation and Principal Accounting Policies The condensed consolidated financial statements are prepared in accordance with HKAS 34 and Listing Rules, using historical cost basis, with investment properties and certain financial instruments measured at fair value - The condensed consolidated financial statements are prepared in accordance with HKAS 34 and the Listing Rules, adopting a historical cost basis, except for investment properties and certain financial instruments measured at fair value[10][11] - Revisions to Hong Kong Financial Reporting Standards adopted for the first time in the current period, such as amendments to HKAS 21, have no significant impact on the Group's financial position or performance[12] Revenue Analysis The Group's total revenue was 174,000 thousand HKD, primarily from manufacturing and sales, which saw a decline, with China being the largest market and Europe showing significant growth, while several segments continued to report losses - The Group's total revenue was 174,000 thousand HKD, a 12.6% decrease from the prior period, mainly due to a decline in manufacturing and sales business revenue[4][55] - China was the largest source of revenue, and revenue from Europe increased by 36.5% to 16,960 thousand HKD[16] - Manufacturing and sales, property development, and property investment businesses continued to record segment losses, while the securities trading business turned from loss to profit[20][55] Revenue from Goods and Services Total revenue from goods and services was 169,206 thousand HKD, a 12.4% decrease year-on-year, with printing and other product manufacturing and sales being the largest component but declining, and China as the primary market with notable growth in Europe | Type of Goods or Services | June 30, 2025 (thousand HKD) | June 30, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Printing and Other Product Manufacturing and Sales | 157,785 | 177,671 | -11.2% | | Music Works Licensing Income | 1,513 | 1,408 | +7.5% | | Record Sales | 152 | 217 | -29.9% | | Sales of Printing and Other Products (Trading) | 9,755 | 13,523 | -27.9% | | Total | 169,206 | 193,008 | -12.4% | | Timing of Revenue Recognition | June 30, 2025 (thousand HKD) | June 30, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Over Time | 157,785 | 177,671 | -11.2% | | At a Point in Time | 11,421 | 15,337 | -25.6% | Segment Information The Group operates seven business segments, with manufacturing and sales remaining the largest revenue contributor, and overall segment losses narrowing due to improved performance in property investment - The Group operates seven business segments: money lending, manufacturing and sales, music and entertainment, property development, property investment, securities trading, and trading businesses[19] - Manufacturing and sales business remains the largest source of revenue, accounting for 90.7% of total revenue[20] - Total segment loss narrowed from 32,175 thousand HKD in the prior period to 15,239 thousand HKD in the current period, primarily due to a significant reduction in property investment business losses[20] Revenue by Source | Revenue Source | June 30, 2025 (thousand HKD) | June 30, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | From Goods and Services | 169,206 | 193,008 | -12.4% | | Rental Income | 3,914 | 3,827 | +2.3% | | Interest Income from Money Lending Business | 880 | 2,362 | -62.7% | | Total Revenue | 174,000 | 199,197 | -12.6% | Revenue by Geographical Market | Geographical Market | June 30, 2025 (thousand HKD) | June 30, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Hong Kong | 39,149 | 70,384 | -44.4% | | China | 90,774 | 88,989 | +2.0% | | Europe | 16,960 | 12,421 | +36.5% | | United States | 17,603 | 20,108 | -12.4% | | Other | 4,720 | 1,106 | +326.8% | Segment Profit/Loss | Business Segment | June 30, 2025 (thousand HKD) | June 30, 2024 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | Money Lending Business (Loss) | (337) | 1,266 | -1,603 | | Manufacturing and Sales Business (Loss) | (5,095) | (8,617) | +3,522 | | Music and Entertainment Business (Loss) | (52) | (1,409) | +1,357 | | Property Development Business (Loss) | (5,902) | (6,977) | +1,075 | | Property Investment Business (Loss) | (4,199) | (12,193) | +7,994 | | Securities Trading Business (Profit) | 1,109 | (3,835) | +4,944 | | Trading Business (Loss) | (763) | (410) | -353 | | Total (Loss) | (15,239) | (32,175) | +16,936 | Segment Assets and Liabilities | Business Segment | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Total Segment Assets | 852,308 | 860,636 | -0.97% | | Total Segment Liabilities | 433,064 | 427,330 | +1.34% | Finance Costs and Taxation Total finance costs for the period increased to 3,597 thousand HKD, mainly from bank borrowing interest, while the Group recorded a 1,795 thousand HKD tax credit primarily due to deferred tax credits | Finance Cost Item | June 30, 2025 (thousand HKD) | June 30, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Interest Expense on Lease Liabilities | 1,129 | 946 | +19.3% | | Interest Expense on Bank Borrowings | 2,468 | 2,202 | +12.1% | | Total Finance Costs | 3,597 | 3,148 | +14.3% | | Tax Item | June 30, 2025 (thousand HKD) | June 30, 2024 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | China Corporate Income Tax Expense | (764) | (575) | -189 | | Deferred Tax Credit | 2,559 | – | +2,559 | | Tax Credit (Expense) | 1,795 | (575) | +2,370 | - Hong Kong profits tax is calculated at 16.5%, while the tax rate for PRC subsidiaries is 25%[26] Loss for the Period and Loss Per Share The loss for the period significantly narrowed to 22,834 thousand HKD, after accounting for depreciation, net foreign exchange gains, fair value changes in financial assets, and investment properties, with no dividends declared and a basic loss per share of 8.9 HK cents | Item | June 30, 2025 (thousand HKD) | June 30, 2024 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | Depreciation of Property, Plant and Equipment | 13,158 | 15,794 | -2,636 | | Net Foreign Exchange Gains | (400) | (147) | -253 | | Fair Value (Increase) Decrease in Financial Assets at FVTPL | (1,358) | 3,683 | -5,041 | | Fair Value Decrease in Investment Properties | 4,021 | 12,684 | -8,663 | - The Directors do not recommend the payment of an interim dividend for the current interim period[30] | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Loss for the Period Attributable to Owners of the Company (thousand HKD) | (22,602) | (40,056) | | Number of Shares in Issue | 253,359,456 | 253,359,456 | | Basic Loss Per Share (HK cents) | (8.9) | (15.8) | Changes in Assets and Liabilities Property, plant and equipment acquisitions increased, investment property fair value decrease narrowed, and additions to properties under development for sale significantly decreased, while the Qingyuan land freezing order was extended, listed equity investments increased, trade receivables decreased, and contract liabilities significantly rose - Acquisitions of property, plant and equipment increased to 1,892 thousand HKD (prior period: 546 thousand HKD)[34] - The fair value decrease in investment properties narrowed to 4,021 thousand HKD from 12,684 thousand HKD in the prior period, mainly due to reduced market rental transactions for comparable properties[35] - Total additions to properties under development for sale were approximately 8,512 thousand HKD, a significant decrease from 81,625 thousand HKD in the prior period[40] - The freezing order for the Qingyuan land was extended again to May 12, 2028[40] Financial Assets | Financial Asset Type | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Equity Instruments at FVTOCI | 13,176 | 13,088 | +0.7% | | Financial Assets at FVTPL (Listed Equity Investments) | 10,984 | 9,488 | +15.8% | Receivables | Receivable Type | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Total Trade Receivables | 107,346 | 129,733 | -17.3% | | Total Trade and Other Receivables, Prepayments and Deposits | 159,514 | 176,194 | -9.5% | Liabilities | Liability Type | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Total Trade Payables | 52,148 | 57,556 | -9.3% | | Accrued Construction Costs for Properties Under Development for Sale | 85,459 | 102,352 | -16.5% | | Total Contract Liabilities | 61,793 | 20,519 | +201.2% | Financial Guarantees The Group provides stage guarantees for mortgage loans to purchasers of properties under development for sale, increasing contingent liabilities, but management assesses the fair value and expected credit losses of these guarantees as not material - The Group provides stage guarantees for mortgage loans to purchasers of properties under development for sale, with guaranteed amounts of approximately 56,930 thousand HKD (December 31, 2024: 18,020 thousand HKD)[52] - Management assesses that the fair value and expected credit losses of the financial guarantees at initial recognition are not material[52] Management Discussion and Analysis Overall Financial Performance Review Total revenue for the period was approximately 174,000 thousand HKD, a 12.6% decrease, with gross profit at 35,900 thousand HKD and a 20.6% margin, while loss significantly narrowed to 22,800 thousand HKD due to reduced segment losses | Metric | June 30, 2025 (thousand HKD) | June 30, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 174,000 | 199,200 | -12.6% | | Gross Profit | 35,900 | 43,500 | -17.5% | | Gross Profit Margin | 20.6% | 21.8% | -1.2 percentage points | | Loss for the Period | 22,800 | 40,100 | -43.1% | - The narrowing of the loss for the period was primarily attributable to reduced segment losses in the manufacturing and sales, property development, and property investment businesses[55] Operations Review and Outlook The Group's diverse business segments showed varied performance, with money lending experiencing a significant decline, manufacturing and sales improving due to bad debt recovery, property development progressing on Zhongxing Industrial Park, property investment seeing slight rental growth, securities trading turning profitable, and trading business facing increased losses - Money lending business interest income decreased by 62.7%, resulting in a segment loss, mainly due to a reduction in the loan portfolio and suspension of interest accrual on some loans[59] - Manufacturing and sales business revenue decreased by 11.2%, but segment loss narrowed, primarily benefiting from a one-time recovery of approximately 5,000 thousand HKD in bad debt[63][65] - In property development, approximately 70% of Zhongxing Industrial Park's construction is complete, with sales agreements signed for approximately 3,300 square meters and 24,000 square meters expected for delivery in the second half of the year[74][75] - Securities trading business recorded fair value gains of approximately 1,400 thousand HKD and realized gains of approximately 387 thousand HKD, turning from loss to profit[83] Money Lending Business The Group's money lending business, operated by Huatai Financial International Limited, saw new loans totaling 6,100 thousand HKD at an average annual interest rate of 18%, but interest income decreased by 62.7% to 880 thousand HKD, resulting in a 337 thousand HKD segment loss, with legal actions initiated for 27,200 thousand HKD in receivables - The money lending business is operated by the wholly-owned subsidiary, Huatai Financial International Limited, with all loan applications subject to internal guideline approval[56] | Metric | June 30, 2025 | June 30, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total New Loans Granted | 6,100 thousand HKD | N/A | N/A | | Average Annual Interest Rate | 18% | N/A | N/A | | Loan Interest Income | 880 thousand HKD | 2,400 thousand HKD | -62.7% | | Segment Loss (Prior Period Profit) | (337 thousand HKD) | 1,300 thousand HKD | -125.9% | - Legal actions have been initiated for outstanding loans with a principal amount of approximately 27,200 thousand HKD, of which approximately 24,200 thousand HKD has been impaired[60] - The Group plans to continue collaborating with other lending companies to offer more borrowing and collateral options, while prudently expanding its loan portfolio[62] Manufacturing and Sales Business Segment revenue decreased by 11.2% to 157,800 thousand HKD, primarily due to reduced orders for packaging and labeling products from overseas and domestic clients, impacted by US tariffs, domestic competition, and decreased consumer purchasing power, but segment loss narrowed to 5,100 thousand HKD due to a 5,000 thousand HKD bad debt recovery | Metric | June 30, 2025 (thousand HKD) | June 30, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Segment Revenue | 157,800 | 177,700 | -11.2% | | Segment Loss | (5,100) | (8,600) | +40.7% | | Segment Gross Profit Margin | 17.0% | 17.9% | -0.9 percentage points | - The revenue decrease was mainly affected by US reciprocal tariffs, intensified domestic competition in China's printing market, and reduced consumer purchasing power[63] - The primary driver for improved performance is a one-time recovery of approximately 5,000 thousand HKD in bad debt from a US customer[65] - The Group is implementing measures to enhance production efficiency, reduce operating costs, strengthen procurement capabilities, streamline workflows, and expand its sales team to address market challenges[65][66] Music and Entertainment Business Segment revenue decreased by 8.2% to 1,700 thousand HKD, mainly due to reduced record sales and event income, but segment loss significantly narrowed to 52 thousand HKD due to increased gross profit margin and cost-cutting measures | Metric | June 30, 2025 (thousand HKD) | June 30, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Segment Revenue | 1,700 | 1,800 | -8.2% | | Segment Loss | (52) | (1,400) | +96.3% | - The revenue decrease was primarily due to reduced record sales and income from organizing events[67] - The significant reduction in loss was mainly due to an increase in gross profit margin and the adoption of cost-cutting measures[67] - The Group plans to continue allocating resources to expand its music works licensing business and organize events in Hong Kong and the Greater Bay Area of China[67] Property Development Business The Group's property development business includes Qingyuan Land and Zhongxing Industrial Park, with the former's auction postponed due to market downturn and the latter's construction approximately 70% complete, with sales agreements signed and further deliveries expected - The Group owns two property development projects: Qingyuan Land and Zhongxing Industrial Park[68] - The compulsory auction of Qingyuan Land was postponed due to the downturn in China's property market, and the freezing order has been extended to May 12, 2028[70][69] - Approximately 70% of Zhongxing Industrial Park's construction is complete, with an additional 7% expected to be completed in 2025[74] - Sales agreements have been signed for approximately 3,300 square meters at Zhongxing Industrial Park, with approximately 24,000 square meters of industrial buildings and dormitories expected for delivery in the second half of 2025[75] - The Group will continue to invest resources in sales and marketing activities for Zhongxing Industrial Park and introduce more retail shops[77] Qingyuan Land The land use rights for Qingyuan Land, held by Zhongqing, have been frozen since 2014 due to shareholder loan disputes, with the freezing order extended to May 12, 2028, and despite shareholder approval for a compulsory auction, the company has decided to postpone the auction due to the depressed Chinese property market - Qingyuan Land has been frozen due to shareholder loan disputes, with the freezing order extended to May 12, 2028[69][70] - Shareholders approved a compulsory auction for Qingyuan Land, but the company decided to postpone further action due to the depressed property development market in China[70] Zhongda Qingyuan Zhongda Qingyuan is developing Zhongxing Industrial Park, with approximately 70% of the 183,000 square meters total construction area completed, sales agreements signed for 3,300 square meters, and 24,000 square meters expected for delivery in the second half of 2025, with property certificates issued for 56,000 square meters and related stage guarantees released - Zhongda Qingyuan is developing Zhongxing Industrial Park, with a total construction area of approximately 183,000 square meters, of which approximately 70% has been completed[73][74] - Sales agreements have been signed for approximately 3,300 square meters during the period, with approximately 24,000 square meters of industrial buildings and dormitories expected for delivery in the second half of 2025[75] - Property certificates for approximately 56,000 square meters have been issued, and related stage guarantees have been released[77] - The Group will continue to invest resources in sales and marketing activities for Zhongxing Industrial Park and introduce more retail shops[77] Property Investment Business The property investment business involves four properties in Hong Kong, Beijing, Shenzhen, and Qingyuan, generating approximately 3,900 thousand HKD in rental income, a slight increase, but recorded a fair value loss of 4,000 thousand HKD primarily due to declining market and rental values of Qingyuan properties - The property investment business involves four properties located in Yuen Long, Hong Kong, Beijing, Shenzhen, and Zhongxing Industrial Park in Qingyuan, China[80] | Metric | June 30, 2025 (thousand HKD) | June 30, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Total Rental Income | 3,900 | 3,800 | +2.6% | | Fair Value Loss | (4,000) | (12,700) | +68.5% | - The increase in rental income primarily came from Qingyuan properties, partially offset by rental concessions for Shenzhen and Yuen Long properties[80] - The fair value loss was mainly due to a decrease in the market value and rental value of Qingyuan properties and surrounding areas[81] Securities Trading and Equity Investment Business Total securities trading and equity investments amounted to approximately 24,200 thousand HKD, with the Group recording fair value gains of 1,400 thousand HKD and realized gains of 387 thousand HKD, reversing the prior period's loss, and the largest investment being in Zhong Wei Capital L.P. | Metric | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Total Equity Instruments and Financial Assets | 24,200 | 22,600 | +7.1% | | Fair Value Gain (Prior Period Loss) | 1,400 | (3,700) | +137.8% | | Realized Gain | 387 | 0 | N/A | - The largest investment is in the offshore investment fund Zhong Wei Capital L.P., accounting for 1.33% of total equity, with a fair value of approximately 8,500 thousand HKD[84] - The Group will prudently research the market and potential investment targets, closely monitor investment performance, and adjust its investment strategy accordingly[86] Trading Business Trading business revenue decreased to 9,800 thousand HKD, and segment loss increased to 763 thousand HKD, primarily due to reduced revenue and gross profit margin from Hong Kong customers, with plans to expand the sales team, optimize product portfolio, and offer value-added services | Metric | June 30, 2025 (thousand HKD) | June 30, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 9,800 | 13,500 | -27.4% | | Segment Loss | (763) | (410) | +86.1% | - The increased loss was mainly attributable to a decrease in revenue and gross profit margin from Hong Kong customers compared to the prior period[87] - The Group will continue to allocate more resources to expand and develop its sales team in Hong Kong, overseas, and China, broaden its customer base, optimize its product portfolio, and provide more value-added services[87] Liquidity, Capital Resources, and Capital Structure As of June 30, 2025, the Group's cash and cash equivalents, pledged bank deposits, and short-term bank deposits totaled approximately 180,900 thousand HKD, with current and quick ratios maintained at 2.0x and 1.1x, and total borrowings at 199,200 thousand HKD, leading to a reduced gearing ratio of 32.5% due to decreased bank borrowings | Metric | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents, Pledged Bank Deposits, and Short-term Bank Deposits | 180,900 | 182,100 | -0.7% | | Current Ratio | 2.0x | 2.0x | No Change | | Quick Ratio | 1.1x | 1.1x | No Change | | Total Borrowings | 199,200 | 213,400 | -6.7% | | Gearing Ratio | 32.5% | 34.1% | -1.6 percentage points | - The decrease in the gearing ratio was primarily due to a reduction in the Group's bank borrowings[90] - Total borrowings include amounts due to non-controlling shareholders, secured bank borrowings, unsecured bank borrowings, and lease liabilities[90] - The Group will utilize internally generated cash flows and bank borrowings as working capital, adhering to a prudent financial management policy[93] Foreign Exchange Risk The Group's transactions are primarily denominated in RMB, HKD, and USD, and management will closely monitor RMB exchange rate risk, considering appropriate hedging solutions if necessary, with no hedging activities undertaken during the period - The Group's transactions are primarily denominated in RMB, HKD, and USD[94] - Management will closely monitor RMB exchange rate risk and consider adopting appropriate hedging solutions when necessary[94] - No hedging activities using financial instruments were undertaken during the period, and there were no outstanding hedging instruments[94] Capital Expenditure and Commitments Capital expenditure for the period was approximately 10,400 thousand HKD, significantly lower than the prior period, mainly for machinery and Zhongxing Industrial Park construction, with contracted but unprovided capital commitments of 95,800 thousand HKD expected to be funded by internal resources and bank borrowings | Metric | June 30, 2025 (thousand HKD) | June 30, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Capital Expenditure | 10,400 | 82,200 | -87.4% | - Capital expenditure primarily arose from the acquisition of machinery for production in China and construction work for Zhongxing Industrial Park[95] | Metric | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Contracted but Unprovided Capital Commitments | 95,800 | 111,100 | -13.8% | - Capital commitments are expected to be funded by internal resources and bank borrowings[97] Contingent Liabilities and Pledged Assets As of June 30, 2025, the Group's contingent liabilities were approximately 56,900 thousand HKD, mainly related to stage guarantees for Zhongxing Industrial Park property mortgage loans, and assets with a total carrying value of 204,400 thousand HKD were pledged as security for various bank borrowings and financing | Metric | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Contingent Liabilities | 56,900 | 18,000 | +216.1% | - Contingent liabilities primarily relate to stage guarantees provided by Zhongda Qingyuan for mortgage loans to purchasers of industrial buildings in Zhongxing Industrial Park, with the mortgage bank as beneficiary[98] | Metric | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Total Carrying Value of Pledged Assets | 204,400 | 199,800 | +2.3% | - Pledged assets include pledged bank deposits, investment properties, and properties under development for sale/properties held for sale, serving as security for construction loans, mortgage loans, and general banking facilities[99] Share Capital and Capital Structure There were no changes in the company's share capital and capital structure during the period, and no treasury shares were held - There were no changes in the company's share capital and capital structure during the current period[100] - As of June 30, 2025, the company held no treasury shares[101] Other Information Human Resources As of June 30, 2025, the Group had approximately 930 full-time employees, with total staff costs of 75,500 thousand HKD, and compensation plans are determined by market conditions and qualifications, including share option schemes, medical insurance, and training | Metric | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Number of Full-time Employees | 930 | 940 | -1.1% | | Total Staff Costs (thousand HKD) | 75,500 | 74,900 | +0.8% | - Compensation plans are determined with reference to market conditions and employee qualifications, offering share option schemes, medical insurance, and training[102] Events After Reporting Period No significant events have occurred from the end of the reporting period up to the date of this announcement - No significant events have occurred from the end of the reporting period up to the date of this announcement[103] Corporate Governance and Compliance The company has adopted the Listing Rules' Model Code and Corporate Governance Code, confirming compliance with all code provisions during the period, and the Board believes the Chairman and Chief Executive Officer being the same person enhances strategic synergy and streamlines decision-making - The company has adopted the Model Code set out in Appendix C3 of the Listing Rules and confirms that its directors have complied with it throughout the period[104] - The company has complied with all code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules during the current period[107] - Mr. Sit Ka Lun serves as both Chairman and Chief Executive Officer, an arrangement the Board believes enhances strategic synergy, streamlines decision-making, and accelerates key growth initiatives[107][108] Standard Code for Securities Transactions The company has adopted the Model Code for securities transactions by directors as set out in Appendix C3 of the Listing Rules, and directors confirmed compliance throughout the period - The company has adopted the Model Code set out in Appendix C3 of the Listing Rules, and all directors confirmed compliance throughout the current period[104] - The company has also adopted securities dealing procedures for employees who may possess unpublished inside information, with terms no less stringent than the Model Code[104] Audit Committee The Audit Committee, comprising one non-executive director and two independent non-executive directors, has reviewed accounting policies, internal controls, risk management, financial reporting matters, and the interim results for the period - The Audit Committee comprises one non-executive director and two independent non-executive directors[105] - The Audit Committee has reviewed accounting policies, internal controls, risk management, financial reporting matters, and the Group's interim results for the current period[105] Purchase, Sale or Redemption of the Company's Listed Securities Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the period - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the current period[106] Corporate Governance The Board believes the company has complied with all code provisions of the Corporate Governance Code during the period, and the combined roles of Chairman and Chief Executive Officer are seen to enhance strategic synergy and decision-making efficiency - The Board believes the company has complied with all code provisions of the Corporate Governance Code during the current period[107] - Mr. Sit Ka Lun serves concurrently as Chairman of the Board and Chief Executive Officer, an arrangement the Board believes enhances strategic synergy, streamlines decision-making processes, and accelerates key growth initiatives[107][108] - Former Chief Executive Officer, Mr. Sit Chai Kwong, will continue as an Executive Director, focusing on providing strategic guidance[108] Review and Publication of Interim Report The Group's interim results for the period are unaudited but have been reviewed by the Audit Committee and Deloitte Touche Tohmatsu, with the detailed interim report to be published in September 2025 on the HKEXnews and company websites - The Group's interim results for the current period are unaudited but have been reviewed by the Audit Committee and the auditor, Deloitte Touche Tohmatsu[109] - The detailed interim report will be published in September 2025 on the HKEXnews website (www.hkexnews.hk) and the company's website (www.newaygroup.com.hk)[110](index=110&type=chunk)