TEAMWAY INTL GP(01239) - 2025 - 中期业绩

Interim Results Announcement Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, revenue decreased by 60.2% to RMB 56,667 thousand, gross profit turned positive, and loss per share narrowed to RMB (5.34) cents Condensed Consolidated Statement of Profit or Loss Summary | Metric | June 30, 2025 (RMB '000) | June 30, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 56,667 | 142,483 | -60.2% | | Cost of sales | (55,909) | (146,380) | -61.8% | | Gross profit/(loss) | 758 | (3,897) | N/A (turned from loss to profit) | | Loss before tax | (22,369) | (45,436) | -50.7% | | Loss for the period | (22,311) | (44,648) | -50.0% | | Loss per share attributable to owners of the Company (basic and diluted) | RMB (5.34) cents | RMB (16.47) cents | -67.6% | Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, total comprehensive loss significantly narrowed to RMB 11,747 thousand, primarily due to foreign exchange differences from overseas operations turning into a gain Condensed Consolidated Statement of Comprehensive Income Summary | Metric | June 30, 2025 (RMB '000) | June 30, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Loss for the period | (22,311) | (44,648) | -50.0% | | Exchange differences on translation of foreign operations | 10,564 | (10,769) | N/A (turned from loss to profit) | | Total comprehensive loss for the period | (11,747) | (55,417) | -78.8% | Condensed Consolidated Statement of Financial Position As of June 30, 2025, total non-current assets slightly increased, but total current assets significantly decreased, expanding net current liabilities and increasing net liabilities and total deficit, indicating sustained financial pressure Condensed Consolidated Statement of Financial Position Summary | Metric | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Total non-current assets | 108,257 | 102,202 | +5.9% | | Total current assets | 130,119 | 169,401 | -23.2% | | Total current liabilities | 380,721 | 397,209 | -4.2% | | Net current liabilities | (250,602) | (227,808) | +10.0% (loss expanded) | | Net liabilities | (315,051) | (306,194) | +2.9% (loss expanded) | | Total deficit | (315,051) | (306,194) | +2.9% (loss expanded) | Notes to the Condensed Consolidated Financial Statements This section details company information, financial statement preparation basis, accounting policies, segment revenue and results, income and expense breakdowns, share capital changes, related party transactions, and post-reporting period events, addressing significant going concern uncertainties and mitigation plans Company and Group Information - The Company is an investment holding company incorporated in the Cayman Islands, with shares listed on the Hong Kong Stock Exchange[8] - Principal activities include the design, manufacture, and sale of packaging products and structural components; trading of air purification gaseous filtration media, equipment, and related accessories; design, manufacture, sale, and marketing of mahogany furniture; and property investment[9][10] Basis of Preparation - The Group recorded a net loss of approximately RMB 22,311,000 for the period ended June 30, 2025[9] - As of June 30, 2025, the Group had net liabilities of approximately RMB 315,051,000, with current liabilities exceeding current assets by approximately RMB 250,602,000[9] - Current liabilities include interest-bearing bank and other borrowings of RMB 298,339,000, of which RMB 229,189,000 are overdue[9] - Significant uncertainty exists regarding going concern, which management plans to address through continuous financial support from major shareholders, the sale of Singapore investment property (expected proceeds of RMB 62,000,000), and exploring other potential financing options[11][13] Significant Accounting Policies and Changes in Accounting Policies and Disclosures - Financial statements are prepared on a historical cost basis, except for investment properties and financial assets measured at fair value through profit or loss[14] - Revisions to Hong Kong Financial Reporting Standards were first applied this period, with no significant impact on financial position or performance[15] Revenue and Segment Information - The Group is divided into four reporting segments: design, manufacture, and sale of packaging products and structural components; trading of air purification gaseous filtration media, equipment, and related accessories; design, manufacture, sale, and marketing of mahogany furniture; and property investment[16][18] Revenue and Segment Information Summary | Segment | June 30, 2025 Revenue (RMB '000) | June 30, 2024 Revenue (RMB '000) | Change (%) | June 30, 2025 Segment Results (RMB '000) | June 30, 2024 Segment Results (RMB '000) | | :--- | :--- | :--- | :--- | :--- | :--- | | Sale of packaging products and structural components | 55,809 | 141,112 | -60.5% | (11,032) | (32,072) | | Trading of air purification gaseous filtration media | 103 | 815 | -87.4% | (550) | (1,070) | | Sale of mahogany furniture | 262 | — | N/A | (117) | (805) | | Property investment | 493 | 556 | -11.4% | 1,322 | (1,399) | | Total | 56,667 | 142,483 | -60.2% | (10,377) | (35,346) | Revenue and Segment Information Summary | Segment | June 30, 2025 Segment Assets (RMB '000) | December 31, 2024 Segment Assets (RMB '000) | June 30, 2025 Segment Liabilities (RMB '000) | December 31, 2024 Segment Liabilities (RMB '000) | | :--- | :--- | :--- | :--- | :--- | | Sale of packaging products and structural components | 136,462 | 159,238 | 66,429 | 97,434 | | Trading of air purification gaseous filtration media | 8,216 | 8,746 | 3,904 | 3,432 | | Sale of mahogany furniture | 8,602 | 8,810 | 4,473 | 1,476 | | Property investment | 65,748 | 86,594 | 294 | 34 | | Total | 219,028 | 263,388 | 75,100 | 102,376 | Other Income and (Losses), Net Other Income and (Losses), Net Summary | Metric | June 30, 2025 (RMB '000) | June 30, 2024 (RMB '000) | Change | | :--- | :--- | :--- | :--- | | Interest income | 76 | 123 | -38.2% | | Exchange differences, net | 2,645 | (1,832) | N/A (turned from loss to profit) | | Impairment of trade and bills receivables | (2,336) | (188) | +1142.6% (impairment expanded) | | Others | (479) | 131 | N/A (turned from profit to loss) | | Total | (94) | (1,766) | -94.7% (loss narrowed) | Finance Costs Finance Costs Summary | Metric | June 30, 2025 (RMB '000) | June 30, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Interest on bank borrowings | 557 | 1,315 | -57.7% | | Interest on other borrowings | 2,569 | 1,518 | +69.2% | | Interest on lease liabilities | 92 | 92 | 0.0% | | Finance costs arising from discounted trade and bills receivables | 312 | 375 | -16.8% | | Total | 3,530 | 3,300 | +6.9% | Loss Before Tax Loss Before Tax Summary | Metric | June 30, 2025 (RMB '000) | June 30, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Cost of inventories sold | 37,024 | 111,805 | -66.9% | | Employee benefit expenses | 17,440 | 24,221 | -28.0% | | Depreciation of property, plant and equipment | 3,343 | 3,005 | +11.2% | | Gross rental income from investment properties | (493) | (556) | -11.4% | Income Tax Credit - The Company is not subject to income tax in the Cayman Islands[25] - Mainland China subsidiaries are subject to enterprise income tax at a rate of 25%, and Singapore subsidiaries are subject to enterprise income tax provision at a rate of 17%[25] Income Tax Credit Summary | Metric | June 30, 2025 (RMB '000) | June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | Current tax - Mainland China | — | — | | Current tax - Singapore | 23 | 28 | | Over-provision in prior years | (30) | — | | Deferred tax | (51) | (816) | | Total | (58) | (788) | Dividends - The Board did not recommend the payment of any dividend for the period[29] Loss Per Share Attributable to Owners of the Company Loss Per Share Attributable to Owners of the Company Summary | Metric | June 30, 2025 | June 30, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Loss attributable to owners of the Company (RMB '000) | (21,085) | (43,695) | -51.7% | | Weighted average number of ordinary shares in issue for basic loss per share (thousands) | 394,562 | 265,290 | +48.7% | | Basic and diluted loss per share | RMB (5.34) cents | RMB (16.47) cents | -67.6% | - The Group had no potentially dilutive ordinary shares in issue for the periods ended June 30, 2025 and 2024[31] Trade and Bills Receivables Trade and Bills Receivables Summary | Metric | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Trade receivables | 39,229 | 65,969 | -40.5% | | Bills receivables | 40,174 | 23,868 | +68.3% | | Impairment | (5,977) | (3,641) | +64.1% (impairment expanded) | | Net | 73,426 | 86,196 | -14.8% | Trade and Bills Receivables Summary | Aging | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 3 months | 32,159 | 57,793 | | 4 to 6 months | 938 | 3,575 | | 7 months to 1 year | 1,099 | 1,521 | | Total | 34,196 | 62,889 | Trade Payables Trade Payables Summary | Aging | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Within 3 months | 37,834 | 55,393 | -31.7% | | 4 to 6 months | 24,240 | 11,127 | +117.9% | | Over 6 months | 1,639 | 1,440 | +13.8% | | Total | 63,713 | 67,960 | -6.3% | - Trade payables are non-interest bearing and generally settled within thirty to ninety days[34] Share Capital Share Capital Summary | Metric | June 30, 2025 (thousands of shares) | January 1, 2024 (thousands of shares) | | :--- | :--- | :--- | | Authorised ordinary shares | 20,000,000 | 1,250,000 | | Issued and fully paid shares | 394,562 | 197,283 | - On March 14, 2024, the Company completed a capital reorganisation, including a capital reduction (par value per share reduced from HKD 0.16 to HKD 0.01) and share subdivision (each HKD 0.16 share subdivided into 16 new HKD 0.01 shares)[35] - On June 4, 2024, the Company completed a rights issue and share placement, issuing 197,279,000 shares with net proceeds of HKD 14,667,000[35] Related Party Transactions Related Party Transactions Summary | Related Party | Transaction Type | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | Interest Rate | Remarks | | :--- | :--- | :--- | :--- | :--- | :--- | | Mr. Tsang Man Yau, Director | Amount due from a director | 1,426 | — | 12% | Unsecured, repayable on demand | | E-Invest (China) Co., Ltd. | Outstanding loan balance | 137,787 | 145,697 | 2% | Controlling shareholder company | Events After Reporting Period - Subsidiary Sichuan Hejing Packaging Products Co., Ltd. was claimed for RMB 5,977,785.32 by Deyang Rural Commercial Bank due to overdue borrowings, and its four properties were auctioned for RMB 11,700,000 on August 12, 2025[38] - Hejing Packaging was also claimed for RMB 5,958,811.20 by Industrial and Commercial Bank of China, with its land and buildings ordered for auction sale[38][39] - The SFC petition against the company is ongoing, with no resolution expected before June 30, 2026[39] Management Discussion and Analysis This section reviews the Group's business performance, market outlook, and financial position; packaging products and structural components revenue significantly declined, property investment business is planned for sale, and the company faces ongoing operational challenges, adopting defensive strategies and seeking new business opportunities; financially, revenue decreased but loss narrowed, liquidity is constrained, gearing ratio increased, and the company plans equity fundraising to improve liquidity Business Review - The Company primarily engages in the design, manufacturing, and sale of packaging products and structural components, air purification gaseous filtration media, mahogany furniture, and property investment through its subsidiaries[40] Packaging Products and Structural Components Business For the six months ended June 30, 2025, packaging products and structural components revenue decreased by 60.5% to RMB 55,809 thousand due to intense competition, with sales costs also down 61.8% and gross margin slightly up due to cost controls Packaging Products and Structural Components Business Summary | Product | June 30, 2025 Revenue (RMB '000) | Percentage (%) | June 30, 2024 Revenue (RMB '000) | Percentage (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Air conditioners (packaging products) | 29,628 | 53.1 | 31,350 | 22.2 | -5.5% | | Televisions | 22,901 | 41.0 | 39,224 | 27.8 | -41.6% | | Washing machines | 894 | 1.6 | 36,038 | 25.5 | -97.5% | | Refrigerators | 527 | 0.9 | 26,931 | 19.1 | -98.0% | | Air conditioners (structural components) | 1,466 | 2.7 | 2,280 | 1.6 | -35.7% | | Total | 55,809 | 100.0 | 141,112 | 100.0 | -60.5% | - Revenue decline primarily due to intense competition, resulting in failure to secure certain business tenders as expected[44] - Slight increase in gross profit margin mainly due to cost control measures, including reductions in labor and transportation costs[44] Packaging Products and Structural Components Business Summary | Cost of Sales Breakdown | June 30, 2025 (RMB '000) | Percentage (%) | June 30, 2024 (RMB '000) | Percentage (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Raw materials | 37,024 | 66.6 | 111,805 | 76.8 | -66.9% | | Direct labor costs | 5,122 | 9.2 | 7,963 | 5.5 | -35.7% | | Manufacturing overheads | 13,424 | 24.2 | 25,845 | 17.7 | -48.1% | | Total | 55,570 | 100.0 | 145,613 | 100.0 | -61.8% | Property Investment Business For the six months ended June 30, 2025, Singapore investment property generated RMB 493 thousand in rental income, and the company has listed it for sale to enhance liquidity, which is expected to be a discloseable transaction - Singapore investment property recorded rental income of RMB 493 thousand[47] - To enhance liquidity, the company has listed the investment property for sale, which is expected to constitute a discloseable/announceable transaction[47] Update on Petition The SFC petition against the company is ongoing, with the second case management conference held and the third scheduled after October 27, 2025, with no resolution expected before June 30, 2026 - The SFC petition against the company is ongoing, with no resolution expected before June 30, 2026[48] Outlook - Management believes the global environmental landscape will remain uncertain and challenging[51] - The Group will continue defensive strategies, enhancing efficiency, streamlining operations, reducing costs, and actively exploring new business potential and opportunities[51] Packaging Products and Structural Components Business Outlook China's 2025 GDP growth is projected at 4.6%, but weak domestic consumption, high local government debt, and global economic uncertainty persist; the Group will seek new clients, enhance cost management, and remain cautiously optimistic - China's full-year GDP is projected to reach 4.6% in 2025, but weak domestic consumption, high local government debt, and global economic uncertainty remain concerns[49] - The Group will continue to focus on identifying new customers and prudently seizing suitable business opportunities, while continuously improving efficiency and strengthening cost management[49] Property Investment Business Outlook Singapore's real estate market is influenced by global trends and currency strength, with a strong Singapore Dollar boosting investor confidence; Q3 2025 is expected to remain cautiously optimistic, showing stable and sustained growth - Singapore's real estate market is influenced by global economic trends and currency strength, with a strong Singapore Dollar boosting investor confidence[50] - The market is expected to remain cautiously optimistic in Q3 2025, with key indicators showing stable and sustained growth[50] Conclusion Management anticipates a challenging global environment, and the Group will respond by improving efficiency, streamlining operations, reducing costs, and actively pursuing new business opportunities for profitable growth and enhanced shareholder value - Management believes the global environmental landscape will remain uncertain and challenging, and the Group will continuously improve efficiency, streamline operations, and reduce operating costs[51] - The Company will continue to prudently develop and maximize the potential of new businesses and seek new business opportunities, aiming for profitable growth and enhanced long-term stakeholder value[51] Financial Review - The Group generally funds its operations through internally generated cash flows, bank borrowings, and loans from shareholders and independent third parties[53] Financial Results For the six months ended June 30, 2025, Group revenue decreased by 60.2% to RMB 56,667 thousand, loss attributable to owners narrowed by 51.7% to RMB 21,085 thousand, and basic and diluted loss per share was RMB 5.34 cents Financial Results Summary | Metric | June 30, 2025 (RMB '000) | June 30, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 56,667 | 142,483 | -60.2% | | Loss attributable to owners of the Company | (21,085) | (43,695) | -51.7% | | Basic and diluted loss per share | RMB 5.34 cents | RMB 16.47 cents | -67.6% | Liquidity and Financial Resources As of June 30, 2025, cash and bank balances significantly decreased to RMB 16,584 thousand from RMB 39,922 thousand, with total borrowings at RMB 469,786 thousand, mostly short-term; the company will actively seek external financing and equity fundraising to improve liquidity Liquidity and Financial Resources Summary | Metric | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and bank balances | 16,584 | 39,922 | -58.5% | | Total borrowings | 469,786 | 485,570 | -3.2% | | Short-term borrowings (repayable within one year) | 298,339 | 307,070 | -2.8% | | Long-term borrowings (repayable after two years but within five years) | 171,447 | 178,500 | -4.0% | - Cash and bank balances are primarily denominated in HKD (71.4%), SGD (18.0%), RMB (10.0%), and USD (0.6%)[53] - The Company will take proactive steps to improve the Group's liquidity and financial position through equity fundraising activities[54] Capital Structure and Capital Management As of June 30, 2025, issued share capital was RMB 3,520 thousand, comprising 394,561,751 ordinary shares of HKD 0.01 each; the Group aims to safeguard going concern and maintain a sound capital ratio, with no changes to capital management objectives, policies, or procedures during the period - As of June 30, 2025, issued share capital was approximately RMB 3,520,000, divided into 394,561,751 ordinary shares of HKD 0.01 each[55] - Capital management objectives are to safeguard going concern ability and maintain a sound capital ratio, with no changes to objectives, policies, or procedures during the reporting period[55] Capital Expenditure Capital expenditure for the period was approximately RMB 7,091 thousand, primarily for property, plant, and equipment and right-of-use assets, a significant decrease from December 31, 2024 Capital Expenditure Summary | Metric | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Capital expenditure | 7,091 | 21,087 | -66.3% | Capital Commitments As of June 30, 2025, the Group had no capital commitments - As of June 30, 2025, the Group had no capital commitments[57] Contingent Liabilities As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[58] Pledged Assets The Group pledged buildings and right-of-use assets of approximately RMB 17,863 thousand to banks, and the entire issued share capital of a wholly-owned subsidiary and Singapore investment property to financial institutions - As of June 30, 2025, the Group pledged buildings and right-of-use assets of approximately RMB 17,863 thousand to banks[59] - The entire issued share capital of a wholly-owned subsidiary and Singapore investment property have been pledged to lenders/financial institutions[59] Gearing Ratio As of June 30, 2025, the gearing ratio increased to 1.97 from 1.79 as of December 31, 2024 Gearing Ratio Summary | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Gearing ratio | 1.97 | 1.79 | +0.18 | Foreign Exchange Risk The Group's business transactions are primarily denominated in HKD and RMB, with directors deeming no significant foreign currency risk; currently, there is no foreign currency hedging policy, but management monitors risks and considers hedging when necessary - The Group's business transactions are primarily denominated in HKD and RMB, with directors deeming no significant foreign currency risk[61] - The Group currently has no foreign currency hedging policy, but management monitors foreign exchange risks and considers hedging when necessary[61] Use of Proceeds from Placing and Public Offer The Company fully utilized net proceeds of approximately HKD 44,500,000 from placing and public offer for bank loan repayment, general working capital, acquisition and upgrade of plant and machinery, and acquisition and modification of molds - Net proceeds of approximately HKD 44,500,000 from placing and public offer have been fully utilized[62] - Uses include repayment of bank loans (HKD 2,700,000), general working capital (HKD 2,900,000), acquisition, modification, and upgrade of plant and machinery (HKD 29,000,000), and acquisition and modification of molds (HKD 9,900,000)[62] Use of Proceeds from Rights Issue The Company fully utilized net proceeds of approximately HKD 14.67 million from the rights issue on June 4, 2024, for repayment of outstanding borrowings and general working capital - Net proceeds of approximately HKD 14.67 million from the rights issue on June 4, 2024, have been fully utilized[63] - Proceeds were used for repayment of the Group's outstanding borrowings and general working capital[63] Other Information This section covers the company's securities transactions, acquisitions, disposals, dividend policy, segment information disclosure, compliance with the Standard Code for Securities Transactions and Corporate Governance Code, and the Audit Committee's responsibilities Purchase, Sale or Redemption of the Company's Listed Securities - During the period, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities[64] Acquisitions, Disposals and Material Investments - Except as disclosed in this announcement, the Group did not undertake any significant acquisitions, disposals, or investments during the period[65] Dividends (Other Information) - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025[66] Segment Information - Details of segment information are set out in Note 4 to the unaudited condensed consolidated financial statements[67] Compliance with Standard Code for Securities Transactions - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 to the Listing Rules[68] - All current directors confirmed compliance with the Model Code throughout the period[68] Corporate Governance Code - The Company has fully complied with all applicable code provisions of the Corporate Governance Code as set out in Appendix 14 to the Listing Rules throughout the period[69] Audit Committee - The Audit Committee has reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2025[70] - The Committee discussed accounting principles, accounting standards, methods, and internal control matters[70]