恒达集团控股(03616) - 2025 - 中期业绩

Interim Results Announcement This report presents the Group's unaudited condensed consolidated financial performance and position for the six months ended June 30, 2025, along with management's discussion and other relevant information Unaudited Condensed Consolidated Income Statement For the six months ended June 30, 2025, the company's revenue increased by 8.0% to RMB 1,585.4 million year-on-year, achieving a net profit of RMB 3.4 million, reversing a loss of RMB 36.1 million in the prior period Condensed Consolidated Income Statement Key Data | Indicator | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,585,416 | 1,467,599 | +8.0% | | Cost of sales | (1,467,772) | (1,328,548) | +10.5% | | Gross profit | 117,644 | 139,051 | -15.4% | | Operating profit | 33,423 | 13,216 | +152.9% | | Profit/(Loss) for the period | 3,396 | (36,099) | Turnaround to profit | | Profit/(Loss) attributable to owners of the Company | 8,937 | (50,718) | Turnaround to profit | | Basic and diluted earnings/(loss) per share (RMB cents) | 0.74 | (4.23) | Turnaround to profit | Unaudited Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, the Group recorded a total comprehensive income of RMB 3.4 million, a significant improvement from a total comprehensive expense of RMB 36.1 million in the prior period Condensed Consolidated Statement of Comprehensive Income Key Data | Indicator | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit/(Loss) and total comprehensive income/(expense) for the period | 3,396 | (36,099) | | Total comprehensive income/(expense) for the period attributable to owners of the Company | 8,937 | (50,718) | | Total comprehensive income/(expense) for the period attributable to non-controlling interests | (5,541) | 14,619 | Unaudited Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets were RMB 6,973.7 million, a decrease of 11.7% from the end of 2024, with a slight increase in net current assets and a small decrease in total equity Condensed Consolidated Statement of Financial Position Key Data | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total assets | 6,973,711 | 7,896,525 | -11.7% | | Total non-current assets | 341,313 | 362,344 | -5.8% | | Total current assets | 6,632,398 | 7,534,181 | -11.9% | | Total equity | 1,584,647 | 1,594,070 | -0.6% | | Total liabilities | 5,389,064 | 6,302,455 | -14.5% | | Total current liabilities | 4,950,881 | 5,860,145 | -15.5% | | Net current assets | 1,681,517 | 1,674,036 | +0.4% | Notes to the Unaudited Condensed Consolidated Interim Financial Information This section provides detailed notes and explanations for the unaudited condensed consolidated interim financial information, covering general information, basis of preparation, accounting policy changes, and specific financial items General Information The Company is incorporated in the Cayman Islands, listed on the Hong Kong Stock Exchange, primarily engaged in property development in China, with financial information presented in RMB thousands and unaudited - The Company is an investment holding company primarily engaged in property development in China[9] - The Group's unaudited condensed consolidated interim financial information is presented in RMB thousands and has not been audited or reviewed by the auditor[10][11] Basis of Preparation This interim financial information is prepared in accordance with HKAS 34 and consistent with 2024 annual financial statements, with the directors deeming the going concern basis appropriate despite significant uncertainties - The Group's unaudited condensed consolidated interim financial information for the six months ended June 30, 2025, is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the HKICPA and the applicable disclosure requirements of the Listing Rules of the Stock Exchange[12] - The Group faces significant going concern uncertainties, including low cash balances, large short-term liabilities, and potential cash outflows from financial guarantees[14] - The Board has reviewed cash flow forecasts and adopted several measures to ensure going concern, including adjusting sales activities, negotiating with contractors, seeking bank financing, and obtaining related party financial support[14][15] Adoption of Amendments to HKFRSs Amendments to HKFRSs effective January 1, 2025, were first applied in this interim period, with no significant impact on the Group's consolidated financial position or performance - The amendments to HKAS 21 and HKFRS 1 "Lack of Exchangeability" were first applied in this interim period[16] - These amendments had no significant impact on the Group's consolidated financial position and financial performance and/or disclosures in the unaudited condensed consolidated interim financial information[16] Revenue The Group's revenue primarily derives from property sales, service income, and rental income, with total revenue increasing by 8.0% year-on-year for the six months ended June 30, 2025, and property sales accounting for 99.4% Revenue Source Analysis | Revenue Category | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Sales of properties | 1,576,457 | 1,457,879 | +8.1% | | Service income | 2,789 | 4,951 | -43.7% | | Rental income | 6,170 | 4,769 | +29.4% | | Total Revenue | 1,585,416 | 1,467,599 | +8.0% | - All revenue is generated from China and primarily recognized at a point in time (property sales)[19] Segment Information The Group primarily engages in property development in China, and management assesses business operating results as a single segment, thus no segment information is presented - The Group is primarily engaged in property development in China, and the chief operating decision-maker views the operating results of the business as a single segment[20] - All of the Group's revenue and non-current assets are located in China, and no single external customer accounts for more than 10% of revenue[20] Other Gains/(Losses), Net For the six months ended June 30, 2025, the Group recorded net other gains of RMB 0.3 million, an improvement from a net loss of RMB 0.5 million in the prior period, mainly due to gains from interest not payable on overdue borrowings Other Gains/(Losses), Net | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Gains from interest not payable on overdue borrowings | 1,004 | — | | Fines, penalties and compensation | (807) | (537) | | Donations | (123) | (186) | | Loss on disposal of property, plant and equipment | (2) | (3) | | Others | 253 | 187 | | Total | 325 | (539) | Finance Income and Costs For the six months ended June 30, 2025, the Group's net finance costs increased to RMB 0.138 million from RMB 0.043 million in the prior period, primarily due to decreased interest income from bank deposits Net Finance Income and Costs | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Finance income — Interest income from bank deposits | 166 | 427 | | Finance costs — Interest on bank and other long-term borrowings | (23,736) | (27,911) | | Finance costs — Interest on lease liabilities | (304) | (470) | | Less: Amount capitalized | 23,736 | 27,911 | | Net finance costs | (138) | (43) | Profit Before Income Tax For the six months ended June 30, 2025, profit before income tax was RMB 33.2 million, mainly influenced by lower staff costs and a significant reduction in provisions for properties held for sale or under development for sale Profit Before Income Tax Components | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Staff costs (including directors' emoluments) | 28,568 | 36,037 | -20.7% | | Depreciation expense for property, plant and equipment | 2,710 | 3,692 | -26.6% | | Cost of properties recognized as expense | 1,462,119 | 1,265,154 | +15.6% | | Provision for properties held for sale or under development for sale | — | 57,671 | -100% | Income Tax Expense For the six months ended June 30, 2025, income tax expense decreased by 39.4% year-on-year to RMB 29.8 million, primarily due to a significant reduction in China corporate income tax despite a notable increase in land appreciation tax Income Tax Expense Analysis | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | China Land Appreciation Tax | 7,266 | 915 | +694.1% | | China Corporate Income Tax | 6,389 | 31,460 | -79.7% | | Deferred income tax | 16,175 | 16,843 | -4.0% | | Total Income Tax Expense | 29,830 | 49,218 | -39.4% | Earnings/(Loss) Per Share For the six months ended June 30, 2025, basic and diluted earnings per share were RMB 0.74 cents, a turnaround from a loss of RMB 4.23 cents per share in the prior period Earnings/(Loss) Per Share | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit/(Loss) attributable to owners of the Company | 8,937 | (50,718) | | Weighted average number of ordinary shares in issue (thousands) | 1,200,000 | 1,200,000 | | Basic and diluted earnings/(loss) per share (RMB cents) | 0.74 | (4.23) | - Diluted earnings/(loss) per share is the same as basic earnings/(loss) per share as there are no dilutive potential ordinary shares in issue[26] Dividends No dividends were paid or proposed by the Company for the six months ended June 30, 2025 - No dividends were paid or proposed for the six months ended June 30, 2025, and no dividends have been proposed since the end of the reporting period[27] Properties Held for Sale or Under Development for Sale As of June 30, 2025, net properties held for sale or under development for sale amounted to RMB 5,773.6 million, a 12.5% decrease from the end of 2024, mainly due to a reduction in properties held for sale Properties Held for Sale or Under Development for Sale Balance | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Properties under development for sale | 3,820,881 | 3,960,468 | -3.5% | | Properties held for sale | 2,324,335 | 3,008,812 | -22.7% | | Less: Provision | (371,581) | (371,581) | 0% | | Total | 5,773,635 | 6,597,699 | -12.5% | Other Receivables and Prepayments As of June 30, 2025, net other receivables and prepayments were RMB 419.6 million, a slight increase of 4.8% from the end of 2024, with an increase in amounts due from third parties for temporary funding Other Receivables and Prepayments Balance | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Prepayments for construction costs | 21,215 | 12,683 | +67.3% | | Amounts due from third parties for temporary funding | 123,600 | 109,050 | +13.3% | | Amounts due from a related party | 41,506 | 41,506 | 0% | | Less: Impairment provision | (60,507) | (58,768) | +3.0% | | Total | 419,575 | 400,500 | +4.8% | Trade and Other Payables As of June 30, 2025, total trade and other payables were RMB 1,667.4 million, a 4.4% decrease from the end of 2024, with a slight reduction in trade payables Trade and Other Payables Balance | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Trade payables | 1,309,106 | 1,330,603 | -1.6% | | VAT and other taxes payable | 103,614 | 145,692 | -28.9% | | Amounts due to non-controlling shareholders | 25,735 | 25,735 | 0% | | Amounts due to related parties | 25,357 | 21,385 | +18.6% | | Total | 1,667,383 | 1,741,056 | -4.4% | Contract Liabilities As of June 30, 2025, contract liabilities were RMB 2,344.6 million, a significant decrease of 25.2% from the end of 2024, primarily representing prepayments for property sales Contract Liabilities Balance | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Contract liabilities | 2,344,623 | 3,136,395 | -25.2% | - Contract liabilities primarily represent amounts received in advance from customers for property sales, which will be recognized as revenue when control of the property is transferred to the customer[33] Commitments As of June 30, 2025, capital expenditure commitments for properties under development for sale were RMB 712.5 million, a 15.4% decrease from the end of 2024 Capital Expenditure Commitments | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Properties under development for sale | 712,523 | 841,904 | -15.4% | Management Discussion and Analysis This section provides an overview of the Group's performance, financial position, and future outlook, including industry review, business operations, and financial analysis Industry Review In the first half of 2025, China's real estate market saw a narrowing decline, with investment, completion, and sales data all decreasing but at a slower pace, as policy adjustments began to show effects, though structural challenges remain H1 2025 National Real Estate Market Key Data | Indicator | Year-on-Year Change (%) | | :--- | :--- | | Real estate development investment | -11.2% | | Residential investment | -10.4% | | Completed housing area | -14.8% | | Completed residential area | -15.5% | | Sales area of new commercial housing | -3.5% | | Sales area of residential housing | -3.7% | | Sales value of new commercial housing | -5.5% | | Sales value of residential housing | -5.2% | H1 2025 Henan Province Real Estate Market Key Data | Indicator | Year-on-Year Change (%) | | :--- | :--- | | Real estate development investment | -8.5% | | Residential investment | -10.2% | | Completed housing area | -37.3% | | Completed residential area | -36.7% | | Sales area of new commercial housing | -1.9% | | Sales area of residential housing | -2.2% | | Sales value of new commercial housing | -1.3% | | Sales value of residential housing | -1.8% | - Since the second half of 2024, the state has continuously promoted "stabilize the market" and "reduce inventory" policies, including optimizing purchase restrictions and lowering mortgage interest rates, with further measures to stimulate demand for improved housing in early 2025[38] Business Overview In the first half of 2025, the Group focused on "ensuring project delivery" and "inventory reduction," achieving significant progress in a challenging market through optimized construction, increased promotions, and innovative sales models, while leveraging Henan Province's policy benefits - The Group prioritized "ensuring project delivery" and "inventory reduction" as core tasks, striving to ensure timely project delivery and adopting diversified strategies to address inventory pressure[40][41] H1 2025 Contract Sales Value | Property Type | Contract Sales Value (RMB millions) | | :--- | :--- | | Residential properties | 574.2 | | Commercial properties | 144.4 | | Total | 755.8 | - The Group completed deliveries of approximately 62.2 thousand square meters in Xuchang urban area, 106.7 thousand square meters in Changge area, and 78.3 thousand square meters in Yuzhou area[40] Land Bank This section details the Group's land reserve as of the reporting period - As of June 30, 2025, the Group's land bank had a gross floor area of approximately 2.8 million square meters[43] Contract Sales This section provides a breakdown of the Group's contract sales and average selling prices for different property types Contract Sales and Average Selling Price Details | Indicator | 2025 (RMB millions/sqm/units) | 2024 (RMB millions/sqm/units) | Change (%) | | :--- | :--- | :--- | :--- | | Contract Sales Value | | | | | Residential units | 574.2 | 673.4 | -14.7% | | Commercial units | 144.4 | 138.4 | +4.3% | | Parking spaces | 29.8 | 21.1 | +41.2% | | Others | 7.4 | 6.5 | +13.8% | | Total | 755.8 | 839.4 | -10.0% | | Contracted Saleable GFA/Number of Units | | | | | Saleable GFA (square meters) | 134,111 | 144,293 | -7.1% | | Parking spaces (units) | 835 | 553 | +51.0% | | Contract Average Selling Price | | | | | Saleable GFA (RMB per square meter) | 5,414 | 5,671 | -4.5% | | Parking spaces (RMB per unit) | 35,709 | 38,114 | -6.3% | - The contract average selling price per square meter for saleable GFA decreased by 4.5% to RMB 5,414, primarily due to the decline in property prices in Henan Province[45] Financial Review The Group's revenue increased by 8.0% year-on-year in H1 2025, but gross profit decreased by 15.4%, with gross margin falling to 7.4%, achieving a net profit of RMB 3.4 million, mainly due to effective control over selling and marketing and administrative expenses Financial Performance Overview | Indicator | Six Months Ended June 30, 2025 (RMB millions) | Six Months Ended June 30, 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,585.4 | 1,467.6 | +8.0% | | Gross profit | 117.6 | 139.1 | -15.4% | | Gross profit margin | 7.4% | 9.5% | -2.1 percentage points | | Net result for the period | 3.4 (Profit) | (36.1) (Loss) | Turnaround to profit (+39.5 million) | Revenue Analysis This section analyzes the Group's revenue by property type, including recognized area and average selling price Property Sales Revenue and Average Selling Price by Property Type | Property Type | 2025 Revenue (RMB thousands) | 2025 Recognized GFA (square meters) | 2025 Average Selling Price per sqm (RMB) | 2024 Revenue (RMB thousands) | 2024 Recognized GFA (square meters) | 2024 Average Selling Price per sqm (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Residential | 1,382,088 | 268,537 | 5,147 | 1,269,581 | 244,648 | 5,189 | | Commercial | 174,661 | 37,263 | 4,687 | 144,798 | 18,749 | 7,723 | | Storerooms | 2,397 | 1,654 | 1,449 | 5,521 | 2,972 | 1,858 | | Subtotal | 1,559,146 | 307,454 | 5,071 | 1,419,900 | 266,369 | 5,331 | | Parking spaces | 17,311 | 545 (units) | 31,763 (per unit) | 37,979 | 592 (units) | 64,154 (per unit) | - Property sales accounted for approximately 99.4% of total revenue, primarily from residential and commercial property sales[48] Gross Profit and Margin This section details the Group's gross profit and gross profit margin by category Gross Profit and Margin by Category | Category | 2025 Gross Profit (RMB thousands) | 2025 Gross Profit Margin (%) | 2024 Gross Profit (RMB thousands) | 2024 Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Residential property sales | 90,729 | 6.6 | 107,520 | 8.5 | | Commercial property sales | 19,621 | 11.2 | 10,845 | 7.5 | | Parking spaces and storerooms sales | 4,005 | 20.3 | 14,699 | 33.8 | | Rental income | 2,789 | 100.0 | 4,735 | 99.3 | | Service income | 500 | 8.1 | 1,252 | 25.3 | | Total | 117,644 | 7.4 | 139,051 | 9.5 | - The gross profit margin for commercial property sales increased from 7.5% to 11.2%, mainly due to reduced costs of commercial properties delivered[50] Fair Value Loss on Investment Properties This section discusses the fair value loss on the Group's investment properties - The Group's investment properties were valued by an independent qualified valuer, Brightway Surveyors & Valuers Limited, as of June 30, 2025[52] Selling and Marketing Expenses This section provides an overview of the Group's selling and marketing expenses Selling and Marketing Expenses | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Selling and marketing expenses | 37.8 | 58.1 | -35.0% | - The decrease in selling and marketing expenses was primarily due to reduced advertising and promotion costs and sales agent commissions[53] Administrative Expenses This section provides an overview of the Group's administrative expenses Administrative Expenses | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Administrative expenses | 42.9 | 56.6 | -24.2% | Other Gains/(Losses), Net (Financial Review) This section summarizes the Group's other net gains or losses - For the six months ended June 30, 2025, the Group's other net gains were approximately RMB 0.3 million (2024: other net losses of RMB 0.5 million)[55] Finance Costs — Net (Financial Review) This section outlines the components of the Group's net finance costs - Net finance costs primarily include interest expense on bank deposits, interest expense on borrowings, and interest and finance charges payable on lease liabilities, net of capitalized interest expense[56] Income Tax Expense (Financial Review) This section provides an overview of the Group's income tax expense Income Tax Expense | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Income tax expense | 29.8 | 49.2 | -39.4% | - The decrease in income tax expense was mainly due to a reduction in gross profit during the period[57] Liquidity, Financial Resources and Capital Resources As of June 30, 2025, the Group's cash and cash equivalents decreased by 38.5%, and total borrowings decreased by 6.6%, with a slight increase in net current assets but decreases in total assets and total liabilities, while maintaining a stable current ratio and a declining gearing ratio amidst contingent liabilities Liquidity and Borrowings Overview | Indicator | June 30, 2025 (RMB millions) | December 31, 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | 155.7 | 253.3 | -38.5% | | Restricted bank deposits | 132.1 | 156.9 | -15.8% | | Total borrowings | 995.4 | 1,064.5 | -6.6% | | Borrowings in current liabilities | 580.5 | 647.4 | -10.3% | | Proportion of fixed-rate borrowings | 46.1% | 87.7% | -41.6 percentage points | Current Assets, Total Assets and Net Assets | Indicator | June 30, 2025 (RMB millions) | December 31, 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Current assets | 6,632.4 | 7,534.2 | -11.9% | | Current liabilities | 4,950.9 | 5,860.1 | -15.5% | | Net current assets | 1,681.5 | 1,674.0 | +0.4% | | Total assets | 6,973.7 | 7,896.5 | -11.7% | | Total liabilities | 5,389.1 | 6,302.5 | -14.5% | | Net assets or total equity | 1,584.6 | 1,594.1 | -0.6% | Pledge of Assets This section describes the assets pledged by the Group for its borrowings - Some of the Group's borrowings are secured by property, plant and equipment, investment properties, shares of subsidiaries, and properties held for sale or under development for sale[62] Contingent Liabilities This section outlines the Group's contingent liabilities - The Group has arranged bank financing for certain property purchasers and provided guarantees, with directors believing the likelihood of purchasers defaulting on payments is minimal[63] - A subsidiary of the Group provided a guarantee for a shareholder loan of approximately RMB 229.5 million to an associate and may be required to compensate for all losses of the investee under specific circumstances, but the risk is considered low[63][64] - As of June 30, 2025, guarantees and pledges provided for certain third-party borrowings for properties held for sale or under development for sale amounted to RMB 107.3 million[64] Key Financial Ratios This section presents the Group's key financial ratios Key Financial Ratios | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current ratio | 1.3 | 1.3 | | Gearing ratio | 62.8% | 66.8% | | Debt-to-equity ratio | 53.0% | 50.9% | - The gearing ratio decreased by 4.0 percentage points to 62.8%, primarily due to repayment of borrowings during the period[70] Key Risk Factors This section identifies the primary risks affecting the Group's business operations - The Group's business is highly dependent on the performance of the property market in Henan Province, China, influenced by economic conditions, supply and demand, government policies, and interest rates[67] - The real estate market is highly competitive, with the Group competing with large national and regional property developers in various aspects[68] - Business operations are affected by force majeure events, natural disasters, or epidemic outbreaks, which may cause damage to the economy and society in the operating regions[68] - The Group is exposed to interest rate fluctuation risk but does not hedge its cash flow or fair value interest rate risk; foreign currency risk is not significant, and there is no hedging policy[68][69] Treasury Policy and Capital Structure The Group's capital management aims to ensure continuous operation, generate shareholder returns, and maintain an optimal capital structure to minimize funding costs, with capital monitored based on the gearing ratio - The Group's capital management objectives are to ensure continuous operation, generate returns for shareholders, and maintain an optimal capital structure to minimize funding costs[72] - The Group monitors its capital based on the gearing ratio[73] Human Resources and Employee Remuneration As of June 30, 2025, the Group's total number of employees was 453, a 17.3% decrease year-on-year, with the company offering diversified compensation, benefits, and training programs, and adopting a share option scheme to attract and retain talent Employee Headcount | Indicator | June 30, 2025 | June 30, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total number of employees | 453 | 548 | -17.3% | - The Group provides basic salaries, medical insurance, social insurance contribution schemes, and other in-kind benefits, and promotes employee development and talent retention through training programs and a share option scheme[74] Outlook For the second half of the year, the decline in national new home sales is expected to continue to narrow, but the market remains in a deep adjustment period, requiring time for confidence to recover; the Group will continue to focus on "ensuring project delivery" and "inventory reduction," optimize product portfolios, strengthen cash flow monitoring, and promote product quality upgrades and brand building to address opportunities and challenges - In the second half of the year, the decline in national new home sales is expected to continue to narrow, but the market recovery process still faces many uncertainties, with a differentiated pattern expected: "first-tier cities and some core second-tier cities stabilizing and recovering, while third- and fourth-tier cities continue to adjust"[75][76] - The Group will continue to prioritize "ensuring project delivery" in the second half of the year and deepen diversified "inventory reduction" strategies, including precisely understanding market demand, optimizing product portfolios, and increasing marketing innovation efforts[76] - The Group will continue its prudent strategy, strengthen cash flow monitoring, and continuously promote product quality upgrades and brand building around the "good housing" strategy[76][77] Other Information This section covers additional disclosures including post-reporting period events, corporate governance, compliance with securities trading standards, and publication details Events After Reporting Period No significant events occurred after June 30, 2025, other than those disclosed in this interim results announcement - No significant events occurred after June 30, 2025[78] Corporate Governance The Company is committed to high standards of corporate governance and has complied with all applicable code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules for the six months ended June 30, 2025, except for code provision B.2.2 (rotation of directors) - The Company has complied with all applicable code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules, except for code provision B.2.2 (all directors should retire by rotation at least once every three years)[79] Compliance with Standard Code for Securities Transactions The Company has adopted the Standard Code as set out in Appendix C3 of the Listing Rules as the code of conduct for directors' securities transactions, and all directors have confirmed compliance with it - The Company has adopted the Standard Code as set out in Appendix C3 of the Listing Rules, and all directors confirmed compliance with the Standard Code for the six months ended June 30, 2025[80] Purchase, Sale or Redemption of Securities 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 for the six months ended June 30, 2025[81] Review by Audit Committee The unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025, have been reviewed by the Board's Audit Committee - The unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025, have been reviewed by the Board's Audit Committee, which includes three independent non-executive directors[82] Audit or Review of Financial Results The Company's auditor has not audited or reviewed the Group's unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025 - The Company's auditor has not audited or reviewed the Group's unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025[83] Publication of Interim Results and Interim Report This interim results announcement will be published on the Company's and the Stock Exchange's websites, and the interim report will be dispatched to shareholders and posted on relevant websites in due course - This interim results announcement will be published on the Company's website (www.everreachgroup.com) and the Stock Exchange's website (www.hkexnews.hk)[84](index=84&type=chunk) Forward-Looking Statements This announcement contains forward-looking statements regarding the Group's financial condition, results, and business, which involve known and unknown risks and uncertainties that could cause actual results to differ materially from expectations - This announcement contains certain forward-looking statements regarding the Group's financial condition, results, and business, which involve known and unknown risks and uncertainties that could cause actual results to differ materially from expectations[85] Continued Suspension of Trading The Company's shares have been suspended from trading on the Stock Exchange since April 2, 2024, and will remain suspended until further notice, advising shareholders and potential investors to exercise caution - The Company's shares have been suspended from trading on the Stock Exchange since 9:00 a.m. on April 2, 2024, and will remain suspended until further notice[86] - Shareholders and potential investors of the Company are advised to exercise caution when dealing in the Company's securities[87]