中国光大绿色环保(01257) - 2025 - 中期财报

Corporate Information This section provides fundamental details about the company's governance, including board members, auditors, and stock exchange listing information Corporate Information This chapter provides basic information about the company's board members, company secretary, registered office, headquarters and principal place of business in Hong Kong, major banks, lawyers, auditors, share registrar, website, public relations consultant, and share information - Executive Directors include Zhu Fugang (Chairman), Liang Haidong (CEO), and Huang Chaoxiong[4] - The company's auditor is KPMG[8] - The company's shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited, stock code 1257[11] Financial Highlights This section summarizes the key financial performance and position for the six months ended June 30, 2025, showing a decrease in revenue and EBITDA, but a significant increase in profit attributable to equity holders of the company, along with increases in total assets, shareholders' equity, and cash and bank balances Financial Highlights This chapter summarizes the key financial performance and financial position for the six months ended June 30, 2025, showing a decrease in revenue and EBITDA, but a significant increase in profit attributable to equity holders of the company, along with increases in total assets, shareholders' equity, and cash and bank balances 1H 2025 Financial Highlights | Metric | 1H 2025 (HKD thousands) | 1H 2024 (HKD thousands) | Change % | | :--- | :--- | :--- | :--- | | Revenue | 3,400,122 | 3,505,577 | -3% | | EBITDA | 974,366 | 1,100,415 | -11% | | Profit attributable to equity holders of the company | 190,791 | 143,925 | 33% | | Return on shareholders' funds — half-year (%) | 1.93 | 1.27 | 0.66 ppt | | Basic earnings per share (HK cents) | 9.23 | 6.97 | 33% | | Financial Position (as of June 30) | 2025 (HKD thousands) | 2024 (HKD thousands) | Change % | | Total assets | 37,739,969 | 36,331,601 | 4% | | Total liabilities | 25,302,524 | 24,669,301 | 3% | | Equity attributable to equity holders of the company | 10,142,825 | 9,609,839 | 6% | | Net asset value per share (HKD) | 4.91 | 4.65 | 6% | | Cash and bank balances | 2,610,492 | 1,673,716 | 56% | | Gearing ratio (%) | 67.04 | 67.90 | -0.86 ppt | | Current ratio (%) | 129.32 | 125.40 | 3.92 ppt | Management Discussion and Analysis This section provides an in-depth analysis of the Group's operational performance, market expansion, technological innovation, operational management, risk management, ESG initiatives, financial performance, financing activities, and business outlook for the period Operating Results Despite the complex and volatile international economic environment, the Group achieved stable and improving operating results in the first half of 2025, actively responding to the national "dual carbon" strategy and "new quality productive forces" development direction, deepening its "second entrepreneurship" to transform into a technology-led environmental enterprise, and achieving both quality and efficiency through optimizing operational efficiency and exploring the "environmental protection + clean energy" model - The Group firmly implements the national "dual carbon" strategy and ecological civilization construction arrangements, fully promoting its transformation into a technology-led environmental enterprise[14] - As of June 30, 2025, the Group has implemented 142 environmental investment projects with a total investment of approximately RMB 30.65 billion; it has cumulatively undertaken 70 light-asset projects such as environmental remediation, involving a total contract value of approximately RMB 1.855 billion[16][18] Market Expansion The Group actively promotes its "second entrepreneurship" around the core development strategy of "technological, international, and ecological," focusing on "clean energy" as its primary business, strengthening the coordinated development of traditional advantageous businesses and emerging business demonstrations, and achieving significant progress in heating, bio-natural gas, environmental remediation, and power sales businesses, with continuous expansion of installed capacity for photovoltaic and wind power projects - Added annual heating capacity of 520,000 tons, expanded the first bio-natural gas project, adding an annual bio-natural gas production capacity of 10 million cubic meters[19][20] - Added environmental remediation business contract value of approximately RMB 128 million, and power sales business completed contracted electricity volume of 750 million kWh for the year[19][20] - As of June 30, 2025, the total installed capacity of photovoltaic power generation projects reached 176.12 MW (including 13 projects in Hong Kong with a total designed installed capacity of 3.60 MW), and the total installed capacity of wind power generation projects was 96 MW[19][20] Technological Innovation The Group firmly takes technological innovation as its core development engine, focusing on key areas such as bio-natural gas, biomass gasification for heating, and biomass-to-green methanol, collaborating with universities and research institutes like the Chinese Academy of Sciences to successfully develop and apply multiple cutting-edge technologies, and partnering with Alibaba Cloud to build a "Virtual Power Plant and Power Trading Auxiliary Decision Platform," continuously building core technological barriers and an industrial ecosystem - Key focus areas include bio-natural gas, biomass gasification for heating, biomass-to-green methanol, biomass-to-sugar, efficient and clean combustion of biomass boilers, and "virtual power plant + zero-carbon industrial park"[21][22] - Developed efficient anaerobic fermentation technology for biomass to produce natural gas, achieving the first bio-natural gas project, and jointly built a "Virtual Power Plant and Power Trading Auxiliary Decision Platform" based on AI algorithm technology with Alibaba Cloud[21][22] - As of June 30, 2025, the Group held a total of 128 authorized patents (including 58 invention patents and 70 utility model patents), and 5 software copyrights[21][22] Operations Management The Group continuously strengthens its refined operational management capabilities, deepens cost reduction and efficiency improvement, actively expands the heating market and green certificate trading channels in biomass comprehensive utilization, optimizes fuel quality and procurement costs; in hazardous and solid waste treatment, it adopts a strategy of both quality improvement and efficiency enhancement and asset optimization to strengthen project risk resistance; and actively promotes centralized digital operation and maintenance management of zero-carbon photovoltaic projects to ensure safe production and compliance with emission standards - In biomass comprehensive utilization, actively expanded the heating market, continuously explored green certificate trading channels, and optimized both fuel quality and procurement costs by tapping into local fuel resources and strengthening quality control[23][24] - In hazardous and solid waste treatment, adopted a strategy of both quality improvement and efficiency enhancement and asset optimization, strengthening the risk resistance of operating projects through organizational optimization, implementing "one enterprise, one policy," and promoting the disposal of inefficient and ineffective assets[23][24] - Zero-carbon photovoltaic projects achieved centralized operation and maintenance management for 7 centralized and 72 distributed sites, continuously improving photovoltaic operation and maintenance efficiency[23][24] Risk Management and ESG The Group integrates comprehensive risk management into its development strategy, systematically addressing international political and economic changes and domestic transformation challenges, and incorporating ESG-related risks into key controls. During the review period, the Group deepened climate-related risk management, advanced TCFD work, and received multiple honors for its excellent ESG performance, while continuously deepening its social responsibility of opening environmental facilities to the public - Integrated comprehensive risk management into its development strategy, revised the "Risk Factor List" based on risk assessment results, and defined the scope of "key controlled risks"[25][26] - Deepened climate-related risk management, advanced TCFD work, identified and assessed climate-related risks and opportunities through scenario analysis, and established a TCFD working group[27][28] - Awarded "2025 ESG Model Enterprise Award," received the "Plan Partner" award from Plan International for the fourth time, and achieved improved ESG ratings from both Wind and China Securities Index[29] - As of June 30, 2025, the company had officially opened 47 projects to the public, cumulatively held 79 offline public open-day events, and received a total of 1,635 person-times[30][31] Overview of Financial Performance In the first half of 2025, the Group's revenue was approximately HKD 3.40 billion, a year-on-year decrease of 3%; EBITDA was approximately HKD 974 million, a year-on-year decrease of 11%. However, profit attributable to equity holders of the company significantly increased by 33% year-on-year to approximately HKD 191 million, primarily due to cost reduction and efficiency improvement measures. The Group's financial indicators remained robust, with ample cash and bank balances 1H 2025 Financial Performance | Metric | 1H 2025 (HKD thousands) | 1H 2024 (HKD thousands) | Change % | | :--- | :--- | :--- | :--- | | Revenue | 3,400,122 | 3,505,577 | -3% | | EBITDA | 974,366 | 1,100,415 | -11% | | Profit attributable to equity holders of the company | 190,791 | 143,925 | 33% | | Basic earnings per share (HK cents) | 9.23 | 6.97 | 33% | - The decrease in revenue was mainly due to reduced construction service revenue, as well as the slower-than-expected recovery of the domestic hazardous and solid waste treatment market and intense industry competition leading to continuous decline in treatment unit prices[33][35] - The increase in profit attributable to equity holders of the company was due to the Group's efforts to tap into cost reduction potential during the period, resulting in reduced operating costs[33][35] - As of June 30, 2025, cash and bank balances were approximately HKD 2.61 billion, with available cash and unused bank loan facilities totaling approximately HKD 9.692 billion[32][34] Financing Activities In the first half of 2025, the Group actively engaged in financing activities, successfully issuing the first phase of carbon-neutral green asset-backed special plans (ABS) and two tranches of green medium-term notes, raising a total of RMB 2 billion, with proceeds primarily used to supplement working capital, repay interest-bearing loans, and invest in environmental projects, further optimizing its capital structure and liquidity - In January 2025, the first phase of the carbon-neutral green asset-backed special plan for renewable energy electricity price surcharge subsidies was established, with a priority asset-backed securities issuance size of RMB 630 million and a coupon rate of 1.79%[37][38] - In February 2025, the first tranche of 2025 green medium-term notes totaling RMB 1 billion was issued, with a maturity of 3+N years and a fixed annual coupon rate of 2.39% for the first three interest-bearing years[39][41] - In May 2025, the second tranche of 2025 green medium-term notes totaling RMB 1 billion was issued, with a maturity of 3+2 years and a coupon rate of 1.98% per annum[40][42] Business Review The Group's total revenue in the first half of 2025 was approximately HKD 3.40 billion, with operating service revenue accounting for 94% and construction service revenue significantly decreasing by 74%. This chapter provides a detailed review of the operating conditions, financial performance, and key operating data for the four core business segments: biomass comprehensive utilization, hazardous and solid waste treatment, environmental remediation, and photovoltaic and wind power generation 1H 2025 Revenue Composition | Type of Revenue | 1H 2025 (HKD thousands) | 1H 2024 (HKD thousands) | Change % | % of Total Revenue (2025) | | :--- | :--- | :--- | :--- | :--- | | Construction Services | 46,488 | 178,507 | -74% | 1% | | Operating Services | 3,189,611 | 3,158,989 | 1% | 94% | | Finance Income | 164,023 | 168,081 | -2% | 5% | | Total Revenue | 3,400,122 | 3,505,577 | -3% | 100% | Biomass Integrated Utilization The Group's biomass integrated utilization business performed strongly in the first half of 2025, with EBITDA increasing by 15% year-on-year and net profit increasing by 31% year-on-year, primarily due to the focused development of heating business, improved fuel quality, and reduced operating costs. As of the end of the period, this segment had 57 projects, with a total designed installed power generation capacity of 1,069 MW, and a significant increase in steam supply - As of June 30, 2025, the Group had 57 biomass integrated utilization projects, with a total investment of approximately RMB 17.354 billion and a total designed installed power generation capacity of 1,069 MW[53] - In the first half of 2025, biomass integrated utilization projects contributed approximately HKD 1.022 billion in EBITDA (a year-on-year increase of 15%) and approximately HKD 626 million in net profit (a year-on-year increase of 31%)[54][55] Biomass Integrated Utilization Key Operating Data | Metric | 1H 2025 | 1H 2024 | Change % | | :--- | :--- | :--- | :--- | | On-grid electricity (MWh) | 3,265,205 | 3,176,136 | 3% | | Biomass raw material processing volume (tons) | 3,742,000 | 3,883,000 | -4% | | Household waste processing volume (tons) | 2,074,000 | 2,057,000 | 1% | | Steam supply volume (tons) | 1,773,000 | 1,328,000 | 34% | Hazardous and Solid Waste Treatment The Group's hazardous and solid waste treatment business faced a severe market situation in the first half of 2025, with EBITDA decreasing by 76% year-on-year and net loss increasing by 28% year-on-year, mainly due to weak market recovery, intensified industry competition, continuous pressure on treatment unit prices, and losses from the disposal of some inefficient assets. Despite these challenges, the Group continued to tap into potential for cost reduction and efficiency improvement, with a significant decrease in unit costs - As of June 30, 2025, the Group had 48 hazardous and solid waste treatment projects, with a total investment of approximately RMB 11.257 billion and a total designed treatment capacity of approximately 2,334,876 tons per annum[61] - In the first half of 2025, hazardous and solid waste treatment projects contributed approximately HKD 26.738 million in EBITDA (a year-on-year decrease of 76%) and recorded a net loss of approximately HKD 175 million (an increase of 28% compared to the loss in the same period last year)[62][63] - The increase in loss was mainly due to the weak recovery of the domestic hazardous and solid waste treatment market, intensified industry competition, continuous pressure on treatment unit prices, sustained operating losses for some projects, and losses incurred from the disposal of inefficient and ineffective assets during the period[62][63] Hazardous and Solid Waste Treatment Key Operating Data | Metric | 1H 2025 | 1H 2024 | Change % | | :--- | :--- | :--- | :--- | | Hazardous and solid waste treatment volume (tons) — harmless disposal | 212,000 | 217,000 | -2% | | Hazardous and solid waste treatment volume (tons) — resource comprehensive utilization | 27,300 | 30,200 | -10% | | Sales volume of resource utilization products (tons) | 7,300 | 6,500 | 12% | | On-grid electricity (MWh) | 13,039 | 14,023 | -7% | | Steam supply volume (tons) | 403,000 | 379,000 | 6% | Environmental Remediation The Group's environmental remediation business recorded a loss before interest, tax, depreciation, and amortization (LBITDA) that increased by 820% year-on-year and a net loss that increased by 2,732% year-on-year in the first half of 2025, primarily due to slower-than-expected market development and goodwill impairment. Despite the challenges, the Group seized policy opportunities, actively expanded quality projects, and achieved year-on-year growth in contract value - As of June 30, 2025, the Group had 19 ongoing environmental remediation projects, involving a total contract value of approximately RMB 814 million[69][71] - In the first half of 2025, environmental remediation projects recorded an LBITDA of approximately HKD 59.052 million (an increase in loss of 820% compared to the same period last year) and a net loss of approximately HKD 68.064 million (an increase in loss of 2,732% compared to the same period last year)[70][72] - The increase in loss was mainly due to slower-than-expected development of the environmental remediation market, sustained operating losses for projects, leading to goodwill impairment losses[70][72] - During the review period, the Group seized policy opportunities, strengthened market layout and technological innovation, actively expanded quality projects, and achieved year-on-year growth in environmental remediation contract value[70][72] Photovoltaic and Wind Power Generation The Group's photovoltaic and wind power generation business saw both EBITDA and net profit decrease by 2% year-on-year in the first half of 2025, primarily due to reduced on-grid electricity from wind power projects affected by difficulties in electricity consumption in Shanxi Province, and increased maintenance costs. As of the end of the period, this segment had 33 photovoltaic projects and 2 wind power projects, with a total designed installed power generation capacity of 246.66 MW - As of June 30, 2025, the Group had 33 operational and completed photovoltaic power generation projects and 2 operational wind power projects, with a total designed installed power generation capacity of 246.66 MW[73][75] - In the first half of 2025, photovoltaic and wind power projects contributed approximately HKD 86.761 million in EBITDA (a year-on-year decrease of 2%) and approximately HKD 34.208 million in net profit (a year-on-year decrease of 2%)[74][75] - The decrease in profit was mainly due to reduced on-grid electricity from wind power projects affected by difficulties in electricity consumption in Shanxi Province, and increased maintenance costs[74][75] Photovoltaic and Wind Power Generation Key Operating Data | Metric | 1H 2025 | 1H 2024 | Change % | | :--- | :--- | :--- | :--- | | On-grid electricity (MWh) | 145,970 | 144,832 | 1% | Business Outlook Looking ahead, the Group will adhere to the operating principle of "seeking progress while maintaining stability, and promoting stability through practical efforts," focusing on the "clean energy" strategy to build a dual-driven pattern of "strengthening traditional businesses + breakthroughs in emerging fields." The Group will accelerate the expansion of heating users, promote the implementation of high-value biomass utilization projects, and aim to become a leading enterprise in China's biomass energy industry during the "15th Five-Year Plan" period, forming a new multi-energy complementary pattern of "green electricity + green steam + green hydrogen + green methanol," while strengthening regional coordination and cost reduction and efficiency improvement, to achieve high-quality development driven by innovation - The Group will adhere to the operating principle of "seeking progress while maintaining stability, and promoting stability through practical efforts," focusing on "clean energy" as its primary business, and consolidating and deepening the achievements of the first half of the year[78][79] - To address changes in renewable energy electricity price subsidy policies, the Group will build a dual-driven pattern of "strengthening traditional businesses + breakthroughs in emerging fields," with "cogeneration + green empowerment" as its core direction[82][84] - Actively accelerate the expansion of heating users, promote the implementation of high-value utilization projects such as biomass-to-sugar, biomass-to-carbon, and bio-natural gas, breaking the single profit model[82][84] - During the "15th Five-Year Plan" period, the Group will focus on the "clean energy" strategy, aiming to become a leading enterprise in China's biomass energy industry, forming a new multi-energy complementary pattern of "green electricity + green steam + green hydrogen + green methanol"[85][87] Financial Review This chapter provides a detailed review of the Group's financial position, financial resources, indebtedness, foreign exchange risk, asset pledges, commitments, and contingent liabilities as of June 30, 2025. The Group's total assets and net assets both increased, the gearing ratio remained stable, cash flow was ample, and various financial risks were actively managed Financial Position As of June 30, 2025, the Group's total assets were approximately HKD 37.74 billion, and net assets were approximately HKD 12.44 billion, representing increases of 4% and 7% respectively compared to the end of 2024. Net asset value per share increased by 6% to HKD 4.91. The gearing ratio remained stable at 67.04%, and the current ratio increased to 129.32%, reflecting a prudent investment strategy and good liquidity June 30, 2025 Financial Position | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change % | | :--- | :--- | :--- | :--- | | Total Assets | 37,739,969 | 36,331,601 | 4% | | Net Assets | 12,437,445 | 11,662,300 | 7% | | Net Asset Value per Share (HKD) | 4.91 | 4.65 | 6% | | Gearing Ratio (%) | 67.04 | 67.90 | -0.86 ppt | | Current Ratio (%) | 129.32 | 125.40 | 3.92 ppt | Financial Resources The Group adopts a prudent approach to cash and financial management, primarily funding operations through the issuance of medium-term notes, internal cash flow, and bank loans. As of June 30, 2025, cash and bank balances were approximately HKD 2.61 billion, a significant increase of approximately HKD 937 million compared to the end of 2024, indicating ample funds - As of June 30, 2025, the Group held cash and bank balances of approximately HKD 2.61 billion, an increase of approximately HKD 937 million (56% growth) compared to the end of 2024[89][91] - Working capital primarily came from proceeds from the issuance of medium-term notes, internal cash flow, and bank loans[89][91] Indebtedness As of June 30, 2025, the Group's total outstanding loans were approximately HKD 21.914 billion, an increase of approximately HKD 913 million compared to the end of 2024. Loans were primarily denominated in RMB (98%), with fixed-rate and floating-rate loans accounting for 52% and 48% respectively. The Group had ample bank financing facilities, with approximately HKD 7.081 billion remaining undrawn June 30, 2025 Interest-Bearing Bank and Other Borrowings Maturity Profile | Maturity Period | June 30, 2025 (HKD millions) | December 31, 2024 (HKD millions) | | :--- | :--- | :--- | | Within 1 year | 8,901 | 7,718 | | 2nd year | 4,702 | 4,787 | | 3rd to 5th year | 5,782 | 5,571 | | After 5th year | 2,529 | 2,924 | | Total | 21,914 | 21,000 | - As of June 30, 2025, the Group's total outstanding loans were approximately HKD 21.914 billion, an increase of approximately HKD 913 million (4% growth) compared to the end of 2024[92][93] - Loans were denominated in RMB and HKD, accounting for 98% and 2% of the total respectively; fixed-rate and floating-rate loans accounted for 52% and 48% respectively[92][93] - Total bank loan facilities were HKD 21.086 billion, of which approximately HKD 7.081 billion remained undrawn[92][93] Foreign Exchange Risk The company's presentation and functional currency is HKD, but as the Group's main business is in mainland China, over 95% of total investment and revenue are denominated in RMB, creating a natural hedge. The Group closely manages foreign exchange risk by reasonably matching various currency loans and employing appropriate financial instruments - The company's presentation and functional currency are HKD, but China is the Group's main business location, accounting for over 95% of total investment and revenue, with most assets, loans, and major transactions denominated in RMB, essentially forming a natural hedge[96][97] - The Group closely manages foreign exchange risk by reasonably matching various currency loans, appropriately controlling non-local currency loans, and employing suitable financial instruments[96][97] Pledge of Assets As of June 30, 2025, certain bank financing and other loans of the Group were secured by revenue rights under service concession arrangements, contract assets, intangible assets and receivables, bank deposits, property, plant and equipment, and right-of-use assets. The total net book value of pledged assets was approximately HKD 17.888 billion - As of June 30, 2025, the total net book value of pledged assets was approximately HKD 17.888 billion, used to secure certain bank financing and other loans of the Group[98][103] Commitments As of June 30, 2025, the Group had contractual purchase commitments for construction contracts of approximately HKD 36.885 million, and capital commitments related to capital injections into joint ventures, associates, and financial asset entities of HKD 45.558 million June 30, 2025 Commitments | Type of Commitment | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Contractual purchase commitments for construction contracts | 36,885 | 50,834 | | Capital commitments for capital injections into joint ventures, associates, and financial asset entities | 45,558 | 26,760 | Contingent Liabilities As of June 30, 2025, the Group had no contingent liabilities - As of June 30, 2025, the Group had no contingent liabilities[100][105] Human Resources As of June 30, 2025, the Group employed over 3,200 staff in Hong Kong and mainland China. Total staff costs for the six months ended June 30, 2025, were approximately HKD 294 million, a decrease from the same period last year. The Group determines remuneration based on qualifications, experience, job nature, and performance, and provides continuous training and other benefits - As of June 30, 2025, the Group employed over 3,200 staff in Hong Kong and mainland China[102][107] - Total staff costs for the six months ended June 30, 2025, were approximately HKD 294 million, a decrease from HKD 352 million in the same period last year[102][107] Disclosure of Interests This section details the interests and short positions in shares, underlying shares, and debentures held by the Company's directors, chief executive, and major shareholders as of June 30, 2025 Interests of Directors and Chief Executive As of June 30, 2025, Mr. Song Jian (through his spouse) held 3,000 shares in the Company and 7,851 shares in Everbright Environment, the Company's listed intermediate holding company. Other than this, no other directors or chief executives had any disclosable interests or short positions in shares, underlying shares, and debentures Directors' Long Positions in the Company's Shares (as of June 30, 2025) | Name of Director | Capacity | Nature of Interest | Number of Shares Held | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | :--- | | SONG Jian (Note (i)) | Spouse's Interest | Family Interest (Note (ii)) | 3,000 | 0.0001% | Directors' Long Positions in Everbright Environment Shares (as of June 30, 2025) | Name of Director | Capacity | Nature of Interest | Number of Shares Held | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | :--- | | SONG Jian (Note (i)) | Spouse's Interest | Family Interest (Note (ii)) | 7,851 | 0.0001% | Shareholders' Interests As of June 30, 2025, major shareholders included China Everbright Green Holdings Co., Ltd., Everbright Environment, China Everbright Group, Central Huijin Investment Ltd., Ningbo Ningdian Investment Development Co., Ltd., Ningbo Energy Group Co., Ltd., and Ningbo Development Investment Group Co., Ltd., all holding long positions in the Company's shares, with China Everbright Group and Central Huijin Investment Ltd. holding over 70% of the shares Major Shareholders' Long Positions in the Company's Shares (as of June 30, 2025) | Name of Major Shareholder | Capacity | Nature of Interest | Long Position in Ordinary Shares and Approximate Percentage | | :--- | :--- | :--- | :--- | | China Everbright Green Holdings Co., Ltd. | Beneficial Owner | - | 1,440,000,000 (69.70%) | | Everbright Environment | Interest of Controlled Corporation | Corporate Interest | 1,440,000,000 (69.70%) | | China Everbright Group Limited | Interest of Controlled Corporation | Corporate Interest | 1,462,912,986 (70.81%) | | Guildford Limited | Interest of Controlled Corporation | Corporate Interest | 1,461,706,369 (70.75%) | | China Everbright Group | Interest of Controlled Corporation | Corporate Interest | 1,462,912,986 (70.81%) | | Central Huijin Investment Ltd. | Interest of Controlled Corporation | Corporate Interest | 1,462,912,986 (70.81%) | | Central Huijin Investment Ltd. | Interest of Controlled Corporation | Corporate Interest | 100,550,000 (4.87%) | | Ningbo Ningdian Investment Development Co., Ltd. | Beneficial Owner | - | 122,127,000 (5.91%) | | Ningbo Energy Group Co., Ltd. | Interest of Controlled Corporation | Corporate Interest | 191,554,000 (9.27%) | | Ningbo Development Investment Group Co., Ltd. | Interest of Controlled Corporation | Corporate Interest | 191,554,000 (9.27%) | Corporate Governance and Other Information This section covers changes in directors' information, compliance with corporate governance codes, interim dividend declarations, share transfer registration, dealings in listed securities, and the review of interim financial results Changes in Directors' Information Effective July 25, 2025, Mr. Zhu Fugang was re-designated as Executive Director and Chairman of the Board, and Mr. Liang Haidong was appointed as Executive Director and Chief Executive Officer. Mr. Wang Silian, Mr. Wang Dianer, and Mr. Song Jian resigned from their directorships. Ms. Mao Jing's duties were changed, and she was appointed as a member of the Nomination Committee - Mr. Zhu Fugang was re-designated as Executive Director and Chairman of the Board and appointed as Chairman of the Nomination Committee on July 25, 2025[130] - Mr. Liang Haidong was appointed as Executive Director and Chief Executive Officer and a member of the Sustainability Committee on July 25, 2025[130] - Mr. Wang Silian, Mr. Wang Dianer, and Mr. Song Jian resigned from their directorships on July 25, 2025[130] Compliance with Corporate Governance Code The Company confirms that it has complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules for the six months ended June 30, 2025 - For the six months ended June 30, 2025, the Company has complied with all applicable code provisions set out in Part 2 of the Corporate Governance Code[131][134] Compliance with Model Code The Company has adopted the Model Code as its code of conduct for directors' securities transactions and confirms that all directors have complied with the required standards set out in the Model Code throughout the review period - After specific inquiries with all directors, the Company confirmed that they have consistently complied with the required standards set out in the Model Code throughout the review period[132][135] Interim Dividend The Board declared an interim dividend of 2.8 HK cents per share for the six months ended June 30, 2025, a twofold increase from the same period last year. The interim dividend payout ratio is 30.32% and will be paid in cash on or about October 14, 2025 Interim Dividend Distribution | Metric | 1H 2025 | 1H 2024 | Change | | :--- | :--- | :--- | :--- | | Interim Dividend per Share (HK cents) | 2.8 | 1.4 | 100% | | Interim Dividend Payout Ratio (%) | 30.32 | 20.1 | 10.22 ppt | Closure of Register of Members The Company's register of members will be closed from September 19 to September 23, 2025 (both days inclusive). To qualify for the interim dividend, all share transfer documents and relevant share certificates must be lodged with the Company's Hong Kong Share Registrar by 4:30 p.m. on September 18, 2025 - The Company's register of members will be closed from September 19 to September 23, 2025[137][139] - To qualify for the interim dividend, all share transfer documents must be lodged by 4:30 p.m. on September 18, 2025[137][139] Dealings in Listed Securities During 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 - During 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[138][140] Review of Interim Financial Results The unaudited interim financial results of the Group for the six months ended June 30, 2025, have been reviewed by KPMG, the Company's auditor, in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants, and have also been reviewed by the Company's Audit and Risk Management Committee - The Group's unaudited interim financial results for the six months ended June 30, 2025, have been reviewed by KPMG[141][142] - The results have also been reviewed by the Company's Audit and Risk Management Committee[141][142] Interim Financial Report This section presents the Group's unaudited interim financial statements, including the consolidated statement of profit or loss, comprehensive income, financial position, changes in equity, cash flows, and detailed notes on accounting policies and key financial items Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, the Group's revenue decreased by 3% year-on-year to HKD 3.40 billion, but gross profit significantly increased due to reduced direct costs and operating expenses. Despite substantial impairment losses on goodwill and property, plant and equipment, profit attributable to equity holders of the company still grew by 33% year-on-year to HKD 191 million 1H 2025 Consolidated Statement of Profit or Loss Summary | Metric | 1H 2025 (HKD thousands) | 1H 2024 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 3,400,122 | 3,505,577 | | Direct costs and operating expenses | (2,543,344) | (2,824,475) | | Gross profit | 856,778 | 681,102 | | Other income | 208,605 | 161,295 | | Impairment loss on goodwill and property, plant and equipment | (178,379) | – | | Administrative expenses | (316,569) | (222,428) | | Finance costs | (294,302) | (410,491) | | Profit before tax | 244,429 | 207,087 | | Profit attributable to equity holders of the company | 190,791 | 143,925 | | Basic earnings per share (HK cents) | 9.23 | 6.97 | Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, the Group's total comprehensive income significantly increased to HKD 453 million, primarily driven by the positive impact of exchange differences arising from the translation of overseas operations (HKD 337 million), despite a negative fair value change in receivables measured at fair value through other comprehensive income 1H 2025 Consolidated Statement of Comprehensive Income Summary | Metric | 1H 2025 (HKD thousands) | 1H 2024 (HKD thousands) | | :--- | :--- | :--- | | Profit for the period | 163,859 | 136,718 | | Exchange differences arising from translation of overseas operations | 336,716 | (159,132) | | Fair value change in receivables measured at fair value through other comprehensive income | (48,046) | 160,775 | | Total comprehensive income for the period | 452,529 | 138,361 | | Total comprehensive income attributable to equity holders of the company | 468,284 | 146,567 | Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets increased to HKD 37.74 billion, primarily driven by an increase in current assets, especially trade and other receivables and contract assets. Goodwill has been fully impaired. Total equity attributable to equity holders of the company increased to HKD 10.143 billion, and the issuance of perpetual medium-term notes further strengthened the equity base June 30, 2025 Consolidated Statement of Financial Position Summary | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Total non-current assets | 23,280,840 | 23,414,866 | | Goodwill | – | 65,681 | | Intangible assets | 11,645,842 | 11,636,066 | | Contract assets (non-current) | 6,135,361 | 6,114,112 | | Total current assets | 14,459,129 | 12,916,735 | | Trade and other receivables, deposits and prepayments (current) | 7,145,987 | 6,984,231 | | Contract assets (current) | 4,346,731 | 3,878,841 | | Cash and cash equivalents | 2,556,964 | 1,635,651 | | Total current liabilities | 11,180,745 | 10,298,028 | | Total non-current liabilities | 14,121,779 | 14,371,273 | | Net assets | 12,437,445 | 11,662,300 | | Total equity attributable to equity holders of the company | 10,142,825 | 9,609,839 | | Perpetual medium-term notes | 2,179,788 | 1,900,700 | Consolidated Statement of Changes in Equity As of June 30, 2025, the Group's total equity increased to HKD 12.437 billion, a growth of approximately 6.6% compared to January 1, 2025. This increase was primarily driven by profit for the period, exchange differences arising from the translation of overseas operations, and the issuance of perpetual medium-term notes, partially offset by the repayment of perpetual medium-term notes and changes in non-controlling interests 1H 2025 Consolidated Statement of Changes in Equity Summary | Metric | January 1, 2025 (HKD thousands) | June 30, 2025 (HKD thousands) | | :--- | :--- | :--- | | Total equity attributable to equity holders of the company | 9,609,839 | 10,142,825 | | Perpetual medium-term notes | 1,900,700 | 2,179,788 | | Non-controlling interests | 151,761 | 114,832 | | Total equity | 11,662,300 | 12,437,445 | | Profit for the period | 190,791 | – | | Exchange differences arising from translation of overseas operations | 325,539 | – | | Fair value change in receivables measured at fair value through other comprehensive income | (48,046) | – | | Issuance of perpetual medium-term notes during the period | – | 1,064,896 | | Repayment of perpetual medium-term notes during the period | – | (806,982) | Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2025, the Group's net cash flow from operating activities was HKD 806 million, and net cash flow used in investing activities was HKD 260 million. Net cash flow from financing activities significantly improved to HKD 325 million, primarily due to new bank loans and the issuance of medium-term notes, ultimately leading to a net increase in cash and cash equivalents of HKD 871 million 1H 2025 Condensed Consolidated Statement of Cash Flows Summary | Type of Cash Flow | 1H 2025 (HKD thousands) | 1H 2024 (HKD thousands) | | :--- | :--- | :--- | | Net cash flows from operating activities | 805,777 | 1,001,916 | | Net cash flows used in investing activities | (259,692) | (331,000) | | Net cash flows from financing activities | 325,291 | (975,031) | | Net increase in cash and cash equivalents | 871,376 | (304,115) | | Cash and cash equivalents at end of period | 2,556,964 | 1,984,880 | Notes to the Unaudited Interim Financial Report This section provides detailed notes to the unaudited interim financial report, covering accounting policies, segment information, revenue, finance costs, profit before tax, income tax, dividends, earnings per share, intangible assets and goodwill, trade and other receivables, contract assets, cash and deposits, trade and other payables, share capital, perpetual medium-term notes, commitments, related party transactions, bank financing and pledge of assets, and fair value of financial instruments, offering detailed explanations and analysis of key financial information General Information and Accounting Policies The Group's principal activities are construction, operation of biomass integrated utilization projects, hazardous and solid waste treatment projects, environmental remediation projects, and photovoltaic and wind power generation projects. The unaudited interim financial report is prepared in accordance with Hong Kong Accounting Standard 34 and the applicable disclosure requirements of the Listing Rules, and is consistent with the accounting policies adopted in the annual financial statements for the year ended December 31, 2024, except for changes in accounting policies expected to be reflected in the full-year financial statements for 2025 - The Group's principal activities are construction, operation of biomass integrated utilization projects, hazardous and solid waste treatment projects, environmental remediation projects, and photovoltaic and wind power generation projects[168][170] - The interim financial report is prepared in accordance with Hong Kong Accounting Standard 34 and the Listing Rules, with accounting policies consistent with the 2024 annual financial statements, except for changes described in Note 2[169][170][171] Changes in Accounting Policies The Group has applied the amendments to Hong Kong Accounting Standard 21 "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability" issued by the Hong Kong Institute of Certified Public Accountants in the interim financial report for this accounting period, but these amendments had no significant impact on this interim report as the Group did not undertake any transactions denominated in a foreign currency that cannot be exchanged into another currency. The Group has not applied any new standards or interpretations that are not yet effective for this accounting period - The Group has applied the amendments to Hong Kong Accounting Standard 21 "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability," but with no significant impact[175][178] - The Group has not applied any new standards or interpretations that are not yet effective for this accounting period[176][178] Operating Segment Information The Group is divided into four reportable segments based on business scope: biomass integrated utilization, hazardous and solid waste treatment, environmental remediation, and photovoltaic and wind power generation. Segment performance is primarily assessed based on "Adjusted EBITDA (non-GAAP measure)." This section provides revenue, assets, liabilities, and other key financial information for each segment, and indicates that revenue from local Chinese government authorities accounts for a larger proportion - The Group is divided into four reportable segments by business line: biomass integrated utilization, hazardous and solid waste treatment, environmental remediation, and photovoltaic and wind power generation[177][179][182] - Segment results are measured by "Adjusted EBITDA (non-GAAP measure)"[186][188] 1H 2025 Segment Revenue and Results Summary | Segment | 1H 2025 Revenue (HKD thousands) | 1H 2024 Revenue (HKD thousands) | 1H 2025 Adjusted EBITDA (HKD thousands) | 1H 2024 Adjusted EBITDA (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | | Biomass Integrated Utilization | 2,711,473 | 2,780,873 | 1,021,719 | 888,872 | | Hazardous and Solid Waste Treatment | 515,235 | 564,358 | 26,738 | 109,247 | | Environmental Remediation | 72,680 | 63,026 | (59,052) | 8,201 | | Photovoltaic and Wind Power Generation | 100,734 | 97,320 | 86,761 | 88,401 | | Total | 3,400,122 | 3,505,577 | 1,076,166 | 1,094,721 | - For the six months ended June 30, 2025, the Group transacted with two Chinese local government authorities, with each transaction individually accounting for more than 10% of the Group's revenue[192] Revenue The Group's total revenue for the first half of 2025 was HKD 3.40 billion,同比減少3%。其中，建造服務收益大幅減少74%，而運營服務收益則微增1%。按地區市場劃分，中國內地仍是主要收益來源，香港和德國亦有少量貢獻 1H 2025 Revenue Analysis | Source of Revenue | 1H 2025 (HKD thousands) | 1H 2024 (HKD thousands) | | :--- | :--- | :--- | | Biomass integrated utilization project construction services | 46,488 | 178,507 | | Biomass integrated utilization project operating services | 2,502,922 | 2,436,265 | | Hazardous and solid waste treatment project operating services | 513,275 | 562,378 | | Environmental remediation project operating services | 72,680 | 63,026 | | Photovoltaic and wind power generation project operating services | 100,734 | 97,320 | | Total revenue from contracts with customers | 3,236,099 | 3,337,496 | | Finance income from service concession arrangements | 164,023 | 168,081 | | Total Revenue | 3,400,122 | 3,505,577 | - For the six months ended June 30, 2025, total construction service revenue, operating service revenue, and finance income from Chinese local government authorities amounted to HKD 2.49 billion[196] - By geographical market, mainland China was the primary source of revenue, with Hong Kong and Germany also contributing small amounts of revenue[198] Finance Costs The Group's total finance costs for the first half of 2025 amounted to HKD 294 million, a year-on-year decrease of 28%. This was primarily due to a significant reduction in interest on bank and other borrowings, despite an increase in interest on medium-term notes and the incurrence of asset-backed securities right maintenance fees 1H 2025 Finance Costs Analysis | Type of Finance Costs | 1H 2025 (HKD thousands) | 1H 2024 (HKD thousands) | | :--- | :--- | :--- | | Interest on bank and other borrowings | 186,021 | 334,442 | | Interest on lease liabilities | 282 | 473 | | Interest on medium-term notes | 88,954 | 78,172 | | Asset-backed securities right maintenance fees | 19,307 | – | | Interest capitalized | (262) | (2,596) | | Total | 294,302 | 410,491 | - For the six months ended June 30, 2025, borrowing costs were capitalized at an annual interest rate ranging from 2.13% to 3.50%[204] Profit Before Tax The Group's profit before tax increased by 18% to HKD 244 million in the first half of 2025. Despite recognizing impairment losses on goodwill and property, plant and equipment totaling HKD 178 million, and an increase in employee benefit expenses, an increase in VAT refunds also had a positive impact on profit 1H 2025 Profit Before Tax Composition | Item | 1H 2025 (HKD thousands) | 1H 2024 (HKD thousands) | | :--- | :--- | :--- | | Amortization of intangible assets | 291,759 | 317,678 | | Depreciation of property, plant and equipment | 131,558 | 153,787 | | Interest income | (5,087) | (13,813) | | Government grants | (9,140) | (8,904) | | VAT refunds | (150,010) | (106,251) | | Cost of inventories consumed | 1,186,532 | 1,336,409 | | Credit losses | 13,000 | – | | Impairment loss on goodwill and property, plant and equipment | 178,379 | – | | Employee benefit expenses | 294,243 | 351,890 | - Due to poor operating performance and challenging market conditions, a full impairment loss of HKD 65.816 million was recognized for the goodwill of Everbright Ecological Remediation (Jiangsu) Co., Ltd[209][210] - For certain hazardous and solid waste treatment projects that ceased operations, an impairment loss of HKD 113 million on property, plant and equipment was recognized[209][210] Income Tax The Group's total income tax expense for the first half of 2025 was HKD 80.57 million, an increase from the same period last year. Chinese operations are taxed at a statutory rate of 25%, with some Chinese subsidiaries enjoying tax incentives. Management assessed that the global minimum tax reform (Pillar Two) currently poses no significant tax risk to the Group 1H 2025 Income Tax Analysis | Item | 1H 2025 (HKD thousands) | 1H 2024 (HKD thousands) | | :--- | :--- | :--- | | Current － Other locations | 100,758 | 66,004 | | Under/(over) provision in prior periods | 2,675 | (442) | | Deferred | (22,863) | 4,807 | | Total tax expense for the period | 80,570 | 70,369 | - Taxes on Chinese operations are calculated at a statutory rate of 25% on taxable profits according to Chinese tax laws and regulations, with certain Chinese subsidiaries enjoying tax incentives[214][215] - Based on management's assessment, the global minimum tax reform (Pillar Two) currently poses no significant tax risk to the Group[218] Dividends The Board declared an interim dividend of 2.8 HK cents per ordinary share for the six months ended June 30, 2025, totaling approximately HKD 57.85 million, a twofold increase from 1.4 HK cents per share in the same period last year 1H 2025 Dividend Distribution | Type of Dividend | 1H 2025 (HKD thousands) | 1H 2024 (HKD thousands) | | :--- | :--- | :--- | | Interim dividend (per ordinary share) | 2.8 HK cents | 1.4 HK cents | | Total | 57,850 | 28,925 | Earnings Per Share For the six months ended June 30, 2025, basic earnings per share attributable to equity holders of the company was 9.23 HK cents, a 33% increase from the same period last year. The earnings per share amount is calculated based on profit attributable to equity holders of the company of HKD 191 million and a weighted average number of ordinary shares of 2.066 billion. As there were no potentially dilutive ordinary shares during the period, basic and diluted earnings per share are the same 1H 2025 Earnings Per Share | Metric | 1H 2025 | 1H 2024 | Change % | | :--- | :--- | :--- | :--- | | Basic earnings per share (HK cents) | 9.23 | 6.97 | 33% | - No adjustments were made to the basic earnings per share amounts presented for the six months ended June 30, 2025 and 2024 when calculating diluted earnings per share, as there were no potentially dilutive ordinary shares for those periods[224][225] Intangible Assets and Goodwill As of June 30, 2025, the net book value of intangible assets was HKD 11.646 billion, a slight increase from the end of 2024. Goodwill was fully impaired in the first half of 2025, with a net book value of zero, primarily due to poor operating performance and challenging market conditions June 30, 2025 Net Book Value of Intangible Assets and Goodwill | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Total intangible assets | 11,645,842 | 11,636,066 | | Goodwill | – | 65,681 | - In the first half of 2025, a full impairment loss of HKD 65.816 million was recognized for the goodwill of Everbright Ecological Remediation (Jiangsu) Co., Ltd., resulting in a zero net book value for goodwill[226] Trade and Other Receivables, Deposits and Prepayments As of June 30, 2025, the current portion of trade and other receivables, deposits, and prepayments increased to HKD 7.146 billion. Trade receivables are primarily due within 90 days from the invoice date. The loss allowance for trade receivables increased to HKD 208 million June 30, 2025 Trade and Other Receivables, Deposits and Prepayments Summary | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Trade receivables, net of loss allowance | 6,663,649 | 6,458,757 | | Other receivables, deposits and prepayments | 781,229 | 852,386 | | Amounts due from fellow subsidiaries | 3,357 | 3,838 | | Amounts due from joint ventures | 17,339 | 17,787 | | Current portion | 7,145,987 | 6,984,231 | - As of June 30, 2025, the loss allowance for trade receivables was HKD 208 million, an increase from the beginning of the year[233][234] Contract Assets As of June 30, 2025, the Group's contract assets (net of impairment) increased to HKD 10.482 billion, primarily comprising service concession arrangement assets, unbilled renewable energy electricity price subsidies, and environmental remediation contract assets. Service concession arrangement assets accrue interest at an annual rate of 4.65% to 6.60%, and unbilled renewable energy electricity price subsidies will be recovered after government administrative procedures are completed June 30, 2025 Contract Assets Summary | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Service concession arrangement assets | 6,525,979 | 6,494,201 | | Unbilled renewable energy electricity price subsidies | 3,530,348 | 3,106,104 | | Environmental remediation contract assets | 442,695 | 402,969 | | Impairment | (16,930) | (10,321) | | Total (net of impairment) | 10,482,092 | 9,992,953 | - Service concession arrangement assets accrue interest at an annual rate ranging from 4.65% to 6.60%[237][243] - Unbilled renewable energy electricity price subsidies will be invoiced and recovered after government administrative procedures are completed in accordance with notices jointly issued by the Ministry of Finance, the National Development and Reform Commission, and the National Energy Administration of the People's Republic of China[244][246] Cash and Cash Equivalents and Pledged Deposits As of June 30, 2025, the Group's cash and bank balances increased to HKD 2.538 billion. After deducting pledged bank deposits and time deposits with maturities over three months, total cash and cash equivalents amounted to HKD 2.557 billion. Pledged bank deposits are primarily used to secure bank loans and performance guarantees June 30, 2025 Cash and Cash Equivalents and Pledged Deposits Summary | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Cash and bank balances | 2,538,295 | 1,602,969 | | Time deposits and pledged bank deposits | 72,197 | 70,747 | | Subtotal | 2,610,492 | 1,673,716 | | Less: Pledged bank deposits | (28,717) | (13,981) | | Less: Time deposits with maturities over three months | (24,811) | (24,084) | | Cash and cash equivalents | 2,556,964 | 1,635,651 | - Pledged bank deposits are primarily pledged as collateral for certain bank loans of the Group and for guarantees issued by certain banks to grantors regarding the Group's specific performance obligations under certain service concession agreements[250] Trade and Other Payables and Accrued Expenses As of June 30, 2025, the current portion of trade and other payables and accrued expenses decreased to HKD 2.190 billion. Trade payables primarily include amounts due to third parties and fellow subsidiaries, with approximately HKD 378 million being construction payables for BOT and BOO arrangements June 30, 2025 Trade and Other Payables and Accrued Expenses Summary | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Trade payables - Third parties | 1,112,755 | 1,310,870 | | Trade payables - Fellow subsidiaries | 40,840 | 21,841 | | Other payables and accrued expenses | 1,060,140 | 1,187,301 | | Deferred income - Government grants | 187,759 | 167,948 | | Current portion | 2,190,254 | 2,497,415 | - As of June 30, 2025, total trade payables of HKD 378 million were construction payables for the Group's BOT and certain BOO arrangements[255][256] Share Capital As of June 30, 2025, the Company's authorized share capital was 5 billion ordinary shares with a par value of USD 0.10 each, totaling HKD 3.892 billion. The issued and fully paid share capital was 2.066 billion ordinary shares, totaling HKD 1.608 billion, remaining unchanged from the end of 2024 June 30, 2025 Share Capital | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Authorized share capital (5 billion shares, USD 0.10 par value each) | 3,891,500 | 3,891,500 | | Issued and fully paid share capital (2.066 billion shares) | 1,608,029 | 1,608,029 | Perpetual Medium-Term Notes As of June 30, 2025, the total perpetual medium-term notes increased to HKD 2.180 billion. During the period, the Company issued perpetual medium-term notes with a principal amount of RMB 1 billion (approximately HKD 1.068 billion) and repaid HKD 807 million. These notes have no maturity date, are redeemable at the Company's option, and distributions can be deferred at discretion June 30, 2025 Perpetual Medium-Term Notes Movement | Item | January 1, 2025 (HKD thousands) | June 30, 2025 (HKD thousands) | | :--- | :--- | :--- | | Total perpetual medium-term notes | 1,900,700 | 2,179,788 | | Issuance of perpetual medium-term notes during the period | – | 1,064,896 | | Repayment of perpetual medium-term notes during the period | – | (806,982) | - For the period ended June 30, 2025, the Company issued perpetual medium-term notes with a principal amount of RMB 1 billion (equivalent to approximately HKD 1.068 billion), with a distribution rate of 2.39% per annum (for the first 3 years)[264] - Perpetual medium-term notes have no maturity date, are redeemable solely at the Company's option, and distributions can be deferred at discretion[264] Commitments As of June 30, 2025, the Group had contractual purcha