长盈集团(控股)(00689) - 2025 - 中期业绩

Interim Results Announcement Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income The Group's revenue for the first half of 2025 increased by 3.57% to HK$38,158 thousand, with profit for the period significantly growing to HK$11,117 thousand, primarily influenced by exchange gains and increased income tax expense Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (HK$ Thousand) | Indicator | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 38,158 | 36,841 | 3.57% | | Profit before tax | 12,612 | 1,446 | 772.20% | | Income tax expense | (1,495) | (412) | 262.86% | | Profit for the period | 11,117 | 1,034 | 975.05% | | Other comprehensive income (expense), net of tax | 4,790 | (2,423) | N/A | | Total comprehensive income (expense) for the period attributable to owners of the Company | 15,907 | (1,389) | N/A | | Basic earnings per share | 1.86 HK cents | 0.20 HK cents | 830.00% | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets increased to HK$471,835 thousand, net assets rose to HK$428,507 thousand, and net current assets significantly improved, indicating a robust financial position Condensed Consolidated Statement of Financial Position (HK$ Thousand) | Indicator | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total non-current assets | 210,137 | 209,602 | 0.25% | | Total current assets | 261,698 | 227,382 | 15.10% | | Total current liabilities | 10,592 | 10,572 | 0.19% | | Net current assets | 251,106 | 216,810 | 15.82% | | Total assets less current liabilities | 461,243 | 426,412 | 8.17% | | Total non-current liabilities | 32,736 | 29,565 | 10.72% | | Net assets | 428,507 | 396,847 | 8.00% | | Share capital | 6,192 | 52,403 | -88.20% | | Reserves | 422,317 | 344,446 | 22.61% | | Total equity | 428,507 | 396,847 | 8.00% | 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 Appendix D2 of the Listing Rules, using the historical cost convention, and the first-time application of HKAS 21 amendments had no significant impact on financial position or performance - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and Appendix D2 of the Listing Rules, presented in Hong Kong dollars, and rounded to the nearest thousand[6] - The financial statements are primarily prepared on a historical cost basis, except for certain financial instruments measured at fair value[7] - The first-time application of HKAS 21 amendments "Lack of Exchangeability" had no significant impact on the financial position and performance for the current and prior periods[8] Revenue Analysis The Group's revenue primarily derives from oil exploration and production, solar energy, money lending, and investment securities businesses, with total revenue of HK$38,158 thousand in H1 2025, where oil sales net of royalties contributed the most and solar sales revenue grew significantly - The Group's revenue sources include oil exploration and production, solar energy, money lending, and investment securities businesses[9] Revenue by Source (HK$ Thousand) | Revenue Source | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Sales of oil, net of royalties | 33,458 | 32,605 | 2.62% | | Sales of electricity | 4,343 | 3,759 | 15.54% | | Interest income from money lending business | 315 | 477 | -33.96% | | Interest income from debt instruments (FVOCI) | 42 | – | N/A | | Total Revenue | 38,158 | 36,841 | 3.57% | - Revenue from oil sales is recognized when control of the crude oil is transferred to the customer, and revenue from electricity sales is recognized when electricity is received and purchased by the power company[10][11] Segment Information The Group's operations are categorized into four segments: oil exploration and production, solar energy, money lending, and investment securities, with H1 2025 segment results showing growth in oil and solar businesses, while money lending and investment securities recorded losses - The Group's operating segments include oil exploration and production, solar energy, money lending, and investment securities[13][15] H1 2025 Segment Revenue and Results (HK$ Thousand) | Segment | External Sales/Source | Segment Results before Impairment Allowance | Impairment Allowance | Segment Results | | :--- | :--- | :--- | :--- | :--- | | Oil Exploration and Production | 33,458 | 7,990 | – | 7,990 | | Solar Energy | 4,343 | 1,634 | – | 1,634 | | Money Lending | 315 | 318 | (527) | (209) | | Investment Securities | 42 | 23 | (308) | (285) | | Total | 38,158 | 9,965 | (835) | 9,130 | H1 2024 Segment Revenue and Results (HK$ Thousand) | Segment | External Sales/Source | Segment Results before Impairment Allowance | Impairment Allowance | Segment Results | | :--- | :--- | :--- | :--- | :--- | | Oil Exploration and Production | 32,605 | 7,182 | – | 7,182 | | Solar Energy | 3,759 | 998 | – | 998 | | Money Lending | 477 | 381 | (395) | (14) | | Investment Securities | – | (182) | (350) | (532) | | Total | 36,841 | 8,379 | (745) | 7,634 | Other Income and Losses, Net Other income and losses, net, significantly increased to HK$11,488 thousand in H1 2025, primarily driven by exchange gains of HK$8,136 thousand, contrasting with exchange losses in the prior period Other Income and Losses, Net (HK$ Thousand) | Item | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Bank and other interest income | 3,232 | 3,610 | | Exchange gains (losses), net | 8,136 | (3,753) | | Others | 120 | 167 | | Total | 11,488 | 24 | Net Loss on Financial Assets at Fair Value Through Profit or Loss (FVTPL) Net loss on financial assets at FVTPL for H1 2025 was HK$3 thousand, a significant reduction from HK$181 thousand in the prior period, mainly due to unrealized gains offsetting realized losses Net Loss on Financial Assets at FVTPL (HK$ Thousand) | Item | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Realized losses | (25) | – | | Unrealized gains (losses) | 22 | (181) | | Net Loss | (3) | (181) | Finance Costs Finance costs for H1 2025 were HK$853 thousand, a decrease from the prior period, primarily due to reduced expenses from the increase in decommissioning obligations Finance Costs (HK$ Thousand) | Item | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Increase in decommissioning obligations expense | 772 | 967 | | Interest on lease liabilities | 81 | 72 | | Total | 853 | 1,039 | Income Tax Expense Income tax expense increased to HK$1,495 thousand in H1 2025, mainly due to a HK$1,101 thousand increase in deferred tax, with the Group applying different tax policies in Hong Kong and Canada Income Tax Expense (HK$ Thousand) | Item | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Current tax - Canadian withholding tax | 394 | 412 | | Deferred tax | 1,101 | – | | Total | 1,495 | 412 | - Hong Kong profits tax adopts a two-tiered system, with a tax rate of 8.25% for the first HK$2 million of assessable profits and 16.5% for the remainder[18] - Canadian subsidiary corporate tax rate is 23% (15% federal, 8% provincial), with withholding tax rates of 10% for interest income and 5% for distributable profits[19][20] Profit for the Period Profit for the period in H1 2025 was HK$11,117 thousand, primarily influenced by factors such as staff costs, depreciation, and professional and consulting fees Profit for the Period (HK$ Thousand) | Item | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Total staff costs | 6,661 | 6,393 | | Total depreciation | 13,646 | 13,989 | | Professional and consulting fees | 2,683 | 1,934 | Dividends For the six months ended June 30, 2025, the company neither paid, declared, nor proposed any dividends - For the six months ended June 30, 2025, the company neither paid, declared, nor proposed any interim dividends[22][33] Earnings Per Share Basic earnings per share for H1 2025 were 1.86 HK cents, a significant increase from 0.20 HK cents (restated) in the prior period, mainly due to increased profit and adjustments to weighted average ordinary shares from share consolidation Earnings Per Share | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company (HK$ Thousand) | 11,117 | 1,034 | | Weighted average number of ordinary shares (thousand shares) | 597,151 | 524,034 (restated) | | Basic Earnings Per Share (HK cents) | 1.86 | 0.20 | - The weighted average number of ordinary shares for earnings per share has been adjusted for the new share placement completed on February 12, 2025, and the share consolidation effective April 1, 2025[26] Property, Plant and Equipment and Right-of-use Assets In H1 2025, the Group added HK$1,867 thousand in construction in progress related to oil and gas assets and recognized HK$2,214 thousand in right-of-use assets from new lease agreements - In H1 2025, new construction in progress related to oil and gas assets amounted to HK$1,867 thousand and other office equipment to HK$9 thousand[24] - A new two-year lease agreement was entered into, recognizing right-of-use assets and lease liabilities of HK$2,214 thousand each[24] Deposits and Prepayments, Trade and Other Receivables As of June 30, 2025, trade and other receivables and prepayments increased to HK$22,429 thousand, primarily due to higher deposits and prepayments, with all trade receivables aged within 60 days and neither overdue nor impaired Deposits and Prepayments, Trade and Other Receivables (HK$ Thousand) | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Deposits paid for decommissioning obligations | 9,253 | 8,540 | | Trade receivables | 7,308 | 8,999 | | Deposits and prepayments | 12,822 | 3,397 | | Others | 2,299 | 1,017 | | Total | 22,429 | 13,413 | - Trade receivables of HK$7,308 thousand are all aged within 60 days, neither overdue nor impaired[28] Debt Instruments at Fair Value Through Other Comprehensive Income (FVOCI) As of June 30, 2025, the portfolio value of debt instruments at FVOCI was HK$3,039 thousand, with an expected credit loss provision of HK$308 thousand recognized Debt Instruments at FVOCI (HK$ Thousand) | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Listed debt securities (FVOCI) | 3,039 | 3,347 | - An expected credit loss provision of HK$308 thousand was recognized in H1 2025 (H1 2024: HK$350 thousand)[29] Loans and Interest Receivables As of June 30, 2025, net loans and interest receivables increased to HK$18,528 thousand, with an expected credit loss provision of HK$13,819 thousand recognized Loans and Interest Receivables (HK$ Thousand) | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Fixed-rate loans receivable | 32,323 | 28,500 | | Interest receivable | 24 | 8 | | Less: Impairment allowance | (13,819) | (13,292) | | Net Amount | 18,528 | 15,216 | - An expected credit loss provision of HK$527 thousand for loans and interest receivables was recognized in profit or loss in H1 2025 (H1 2024: HK$395 thousand)[30] Financial Assets at FVTPL (Note 16) As of June 30, 2025, the portfolio value of financial assets at FVTPL was HK$1,518 thousand, primarily consisting of Hong Kong-listed equity securities Financial Assets at FVTPL (HK$ Thousand) | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Hong Kong-listed equity securities | 1,518 | 1,999 | Other Payables (Note 17) As of June 30, 2025, total other payables were HK$6,655 thousand, a decrease from year-end 2024, primarily comprising payables for property, plant, and equipment additions and operating expenses Other Payables (HK$ Thousand) | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Accrued professional fees | 293 | 411 | | Payables for additions to property, plant and equipment | 1,813 | – | | Other payables and accrued expenses | 4,549 | 7,781 | | Total | 6,655 | 8,192 | - Payables for additions to property, plant and equipment of HK$1,813 thousand are related to new oil and gas assets, with a credit period of 60 days[31] Share Capital As of June 30, 2025, the company's share capital was HK$6,192 thousand, with significant changes in issued ordinary shares due to new share placement, share consolidation, and capital reduction Share Capital | Item | Number of Ordinary Shares (thousand shares) | Share Capital (HK$ Thousand) | | :--- | :--- | :--- | | January 1, 2024 | 5,240,344 | 52,403 | | New shares issued under placement | 952,095 | 9,521 | | Share consolidation | (5,573,195) | – | | Capital reduction | – | (55,732) | | June 30, 2025 | 619,244 | 6,192 | - A new share placement was completed on February 12, 2025, issuing 952,095 thousand shares with net proceeds of HK$15,753 thousand[32] - A capital reorganization became effective on April 1, 2025, involving a 10-to-1 share consolidation and a reduction of par value per share from HK$0.10 to HK$0.01, with HK$55,732 thousand from share capital transferred to the contributed surplus reserve[32] Management Discussion and Analysis Business Review In H1 2025, the Group continued its primary businesses in oil exploration and production, solar energy, money lending, and investment securities, with total revenue growing 4% to HK$38,158 thousand and profit attributable to owners significantly increasing to HK$11,117 thousand, mainly due to exchange gains and higher income tax expense - The Group's main businesses include oil exploration and production, solar energy, money lending, and investment securities[34] - Total revenue for H1 2025 increased by 4% to HK$38,158 thousand, and profit attributable to owners of the Company significantly increased to HK$11,117 thousand[37] - The increase in profit was mainly due to exchange gains of HK$8,136 thousand from the appreciation of Canadian dollars and New Zealand dollars against Hong Kong dollars (compared to a loss of HK$3,753 thousand in the prior period)[37] - Income tax expense increased to HK$1,495 thousand, primarily related to the oil exploration and production business[37] - Earnings per share significantly improved to 1.86 HK cents from 0.20 HK cents (restated) in the prior period[37] Oil Exploration and Production The Group's oil exploration and production business in the Windy Lake area of Alberta, Canada, continues to develop, with H1 2025 revenue growing to HK$33,458 thousand and operating profit increasing to HK$7,990 thousand, alongside plans to expand new wells through participation and operating agreements - The Group continues to develop its oilfield business in the Windy Lake area of Alberta, Canada[35][38] Oil Exploration and Production Performance (HK$ Thousand) | Indicator | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 33,458 | 32,605 | 2.62% | | EBITDA | 19,215 | 18,865 | 1.86% | | Operating Profit | 7,990 | 7,182 | 11.25% | Oil Production and Sales | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Crude oil production (barrels) | 84,500 | 76,600 | | Crude oil sales volume (barrels) | 84,500 | 75,800 | | Average selling price (CAD/barrel) | 79.7 | 86.1 | - The Group entered into a participation and operating agreement with BRW Petroleum Corp. to acquire interests in oil wells, with drilling operations commencing in July 2025[39] Solar Energy The Group's solar energy business continues to grow, with H1 2025 revenue increasing 16% to HK$4,343 thousand, primarily due to increased sunshine hours, and the Group has invested HK$58,265 thousand in 50 operational solar photovoltaic systems - The Group diversifies its energy business by investing in renewable energy assets, including solar projects[36][40] Solar Energy Performance (HK$ Thousand) | Indicator | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 4,343 | 3,759 | 15.54% | | EBITDA | 4,271 | 3,638 | 17.41% | | Operating Profit | 1,634 | 998 | 63.73% | - Revenue growth was primarily due to a 29% increase in sunshine hours reported by the Hong Kong Observatory, from approximately 700 hours in H1 2024 to approximately 900 hours[41] - As of June 30, 2025, the Group owned 50 operational solar photovoltaic systems with a total investment of HK$58,265 thousand and a total grid-connected generation capacity of approximately 3,200 kW[36][41] Money Lending Business The Group's money lending business saw H1 2025 revenue decline 34% to HK$315 thousand and operating profit (before impairment allowance) decrease 17% to HK$318 thousand, mainly due to lower average performing loan amounts, with an expected credit loss provision of HK$527 thousand recognized due to reduced Hong Kong property market values, and the Group expanded its money lending business into New Zealand, increasing its loan portfolio by 22% to HK$18,528 thousand Money Lending Business Performance (HK$ Thousand) | Indicator | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 315 | 477 | -33.96% | | Operating Profit (before impairment allowance) | 318 | 381 | -16.54% | | Expected Credit Loss Provision | 527 | 395 | 33.42% | - The decrease in revenue and operating profit was primarily due to lower average performing loan amounts granted to borrowers in H1 2025[42] - An expected credit loss provision of HK$527 thousand was recognized, mainly due to a decrease in the market value of Hong Kong properties pledged by borrowers to the Group[42] - The Group commenced its money lending business in New Zealand in June 2025, increasing its loan portfolio size by 22% to HK$18,528 thousand (net of impairment allowance)[42][43] Investment Securities Business The Group's investment securities business recorded revenue of HK$42 thousand and a loss (after impairment allowance) of HK$285 thousand in H1 2025, with its portfolio comprising Hong Kong-listed equity securities and Singapore-listed debt securities - The Group's securities investments include Hong Kong-listed equity securities and Singapore-listed debt securities[44][45] Investment Securities Business Performance (HK$ Thousand) | Indicator | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Revenue | 42 | – | | Loss (after impairment allowance) | (285) | (532) | Financial Assets at FVTPL (Investment Securities) As of June 30, 2025, the portfolio value was HK$1,518 thousand, with a net loss of HK$3 thousand recorded in H1 2025, a significant reduction from the prior period, mainly due to unrealized gains offsetting realized losses Financial Assets at FVTPL Portfolio Value (HK$ Thousand) | Indicator | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Portfolio Value | 1,518 | 1,999 | Financial Assets at FVTPL Net Loss (HK$ Thousand) | Indicator | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Net Loss | (3) | (181) | | Realized losses | (25) | – | | Unrealized gains (losses) | 22 | (181) | - The Group adopted a prudent management approach, making no new investments during the period, and the portfolio includes equity securities of a property company listed on the Hong Kong Stock Exchange[47] Debt Instruments at FVOCI (Investment Securities) As of June 30, 2025, the portfolio value was HK$3,039 thousand, generating HK$42 thousand in interest income in H1 2025, with a fair value loss of HK$308 thousand and an expected credit loss provision of HK$308 thousand recognized, primarily due to market value decline and increased credit risk Debt Instruments at FVOCI Portfolio Value (HK$ Thousand) | Indicator | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Portfolio Value | 3,039 | 3,347 | - Interest income of HK$42 thousand was generated in H1 2025[48] - A fair value loss of HK$308 thousand was recognized (H1 2024: HK$350 thousand), mainly due to the decline in market value of debt securities and increased credit risk[48] - An expected credit loss provision of HK$308 thousand was recognized (H1 2024: HK$350 thousand) due to further increased credit risk of the held debt instruments (Mainland property company bonds)[49] Overall Results In H1 2025, oil exploration and production and solar energy businesses contributed profits, while money lending and investment securities recorded losses, with the Group reporting profit attributable to owners of HK$11,117 thousand and total comprehensive income of HK$15,907 thousand, primarily influenced by exchange gains H1 2025 Profit/Loss by Business Segment (HK$ Thousand) | Business Segment | H1 2025 Profit/Loss (HK$ Thousand) | H1 2024 Profit/Loss (HK$ Thousand) | | :--- | :--- | :--- | | Oil Exploration and Production | 7,990 (Profit) | 7,182 (Profit) | | Solar Energy | 1,634 (Profit) | 998 (Profit) | | Money Lending | (209) (Loss) | (14) (Loss) | | Investment Securities | (285) (Loss) | (532) (Loss) | Overall Financial Performance (HK$ Thousand) | Indicator | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Profit attributable to owners of the Company | 11,117 | 1,034 | | Total comprehensive income (expense) attributable to owners of the Company | 15,907 | (1,389) | | Exchange gains (losses) | 4,790 | (2,423) | Financial Review The Group funds its operations through business activities and shareholder capital, with H1 2025 showing increases in both current and quick assets, a high current ratio of 24.7, and a low gearing ratio of 9%, indicating a very robust financial position - The Group primarily finances its operations through cash generated from business activities and shareholder funds[55] Liquidity, Financial Resources and Capital Structure In H1 2025, the Group raised HK$15,753 thousand net from a new share placement for new well drilling, general working capital, and New Zealand money lending, while a capital reorganization (share consolidation and capital reduction) effective April 2025 reduced share capital from HK$61,924 thousand to HK$6,192 thousand, resulting in strong liquidity with a current ratio of approximately 24.7 and a gearing ratio of approximately 9% - A new share placement completed on February 12, 2025, generated net proceeds of HK$15,753 thousand, intended for drilling Canadian oil assets, general working capital, and investment opportunities[52] - The placement proceeds have been partially utilized for new well drilling, general working capital, and the New Zealand money lending business, with plans for land interest acquisition in the oil exploration and production business[53] - A capital reorganization became effective on April 1, 2025, involving a 10-to-1 share consolidation and a reduction of par value per share from HK$0.10 to HK$0.01, with HK$55,732 thousand from share capital transferred to the contributed surplus reserve[54] Liquidity and Capital Structure (HK$ Thousand) | Indicator | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Current assets | 261,698 | 227,382 | | Quick assets | 217,391 | 195,314 | | Current liabilities | 10,592 | 10,572 | | Current ratio | 24.7 | 21.5 | | Total assets | 471,835 | 436,984 | | Total liabilities | 43,328 | 40,137 | | Gearing ratio | 9% | 9% | - Bank and other interest income decreased by 10% to HK$3,232 thousand, mainly due to a general decline in fixed deposit interest rates[56] - Equity attributable to owners of the Company increased by HK$31,660 thousand to HK$428,509 thousand, primarily due to the combined effect of profit, exchange gains, and net proceeds from the placement[56] Outlook The Group's business strategy is to continue developing oil exploration and production and diversify into renewable energy projects to create sustainable value, anticipating long-term stable income from Canadian oil operations and Hong Kong's solar 'Feed-in Tariff' scheme, while managing business conservatively and prudently amidst international oil price volatility and other uncertainties - The Group's strategy is to develop its oil exploration and production business and diversify into renewable energy projects to achieve sustainable business development and shareholder value creation[57][58] - The Canadian oil assets are located in a politically stable region with mature oil regulations, offering significant business opportunities[57] - The solar energy business benefits from the Hong Kong government's "Feed-in Tariff Scheme," which can provide long-term stable income until the end of 2033[57] - Facing uncertainties such as international oil price fluctuations, the Group will manage its business in a conservative and prudent manner[59] Corporate Governance Compliance with Corporate Governance Code For the six months ended June 30, 2025, the company complied with all applicable provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules, with deviations noted for the vacant Chairman and Chief Executive Officer positions and the appointment of an executive director as Chairman of the AGM - The company has complied with all applicable provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules, with two deviations[60] Chairman and Chief Executive Officer The Group deviates from Corporate Governance Code provision C.2.1 due to vacant Chairman and Chief Executive Officer positions, with daily management responsibilities shared by executive directors, overall direction determined by the Board, and independent non-executive directors providing independent perspectives to ensure power balance - There is a deviation from Code Provision C.2.1 due to the vacant positions of Chairman and Chief Executive Officer[60][61] - Daily management responsibilities are shared by executive directors, overall direction is determined by the Board, and three independent non-executive directors provide independent perspectives to ensure a balance of power[61] Shareholders' Meeting The Group deviates from Corporate Governance Code provision F.2.2 due to the vacant Chairman position, with Executive Director Mr. Chan Shui Yuen serving as Chairman of the Annual General Meeting on June 27, 2025 - There is a deviation from Code Provision F.2.2 because the Chairman position is vacant, and Executive Director Mr. Chan Shui Yuen served as the Chairman of the Annual General Meeting on June 27, 2025[62][63] Audit Committee The condensed consolidated financial statements for the six months ended June 30, 2025, were not reviewed but have been reviewed by the Audit Committee and approved by the Board - The condensed consolidated financial statements were not reviewed but have been reviewed by the Audit Committee and approved by the Board[64] 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, sold, or redeemed any of the company's listed securities - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[65]