CORPORATE INFORMATION Directors The report details the company's Board of Directors, including executive, non-executive, and independent non-executive directors, along with the composition of its audit, remuneration, and nomination committees - The Board of Directors comprises Executive Directors Mr. Sang Kangqiao (Chairman) and Mr. Xu Wenze, Non-executive Director Ms. Chen Wenting, and Independent Non-executive Directors Mr. Lam Ka Tak, Mr. Xu Zhihao, and Mr. Huang Chengs34 - The Audit Committee is chaired by Mr. Lam Ka Tak, the Remuneration Committee by Mr. Huang Chengs, and the Nomination Committee by Mr. Sang Kangqiao34 Registered Office and Principal Place of Business The company is registered in the Cayman Islands with its principal place of business located in Far East Finance Centre, Harcourt Road, Hong Kong - The company's registered office is in the Cayman Islands, with its principal place of business in Hong Kong at Unit 25B03, 25/F, Far East Finance Centre, 16 Harcourt Road56 Principal Bankers and Auditor The company's principal bankers include Hang Seng Bank, CITIC Bank International, and ICBC (Asia), with Deloitte Touche Tohmatsu as its auditor - Principal bankers include Hang Seng Bank, CITIC Bank International, and Industrial and Commercial Bank of China (Asia)67 - The auditor is Deloitte Touche Tohmatsu, Certified Public Accountants and Registered Public Interest Entity Auditor67 Stock Code and Company's Website The company's stock code is 1483, and its official website is www.netago.hk - The company's stock code is 148367 - The company's website is www.netago.hk[6](index=6&type=chunk)7 FINANCIAL HIGHLIGHTS For the six months ended June 30, 2025, the company's revenue grew 73.0% to HK$181 million, achieving a turnaround to profit from continuing operations and a significant increase in profit attributable to equity holders to HK$47.535 million from a loss in the prior period, with no dividends declared 2025 Interim Financial Highlights | Metric | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 180,697 | 104,428 | +73.0% | | Profit from Continuing Operations (Attributable to Shareholders) | 22,670 | (4,225) | Turnaround to profit | | Profit Attributable to Equity Holders | 47,535 | (4,811) | Turnaround to profit | | Basic and Diluted EPS from Continuing Operations | 3.1 HK cents | - | - | | Basic and Diluted EPS | 6.4 HK cents | - | - | | Dividend | None | None | - | INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2025 CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the six months ended June 30, 2025, the company's revenue surged 73.0% to HK$181 million, gross profit increased nearly fourfold, continuing operations achieved a HK$22.67 million profit, and discontinued operations recorded a HK$24.865 million profit primarily from subsidiary disposal gains, resulting in a HK$47.349 million total comprehensive income attributable to equity holders, a turnaround from loss Condensed Consolidated Statement of Comprehensive Income (Six Months Ended June 30) | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 180,697 | 104,428 | +73.0% | | Cost of Revenue | (147,258) | (97,334) | +51.3% | | Gross Profit | 33,439 | 7,094 | +371.4% | | General and Administrative Expenses | (27,564) | (12,113) | +127.5% | | Selling and Marketing Expenses | (9,834) | - | New | | Gain/(Loss) on Disposal of Financial Assets at Fair Value Through Profit or Loss | 21,033 | (1,041) | Turnaround to profit | | Fair Value Gain/(Loss) on Financial Assets at Fair Value Through Profit or Loss | 3,696 | 616 | +500.0% | | Operating Profit/(Loss) | 20,940 | (5,801) | Turnaround to profit | | Finance Income – Net | (1,742) | 902 | Loss widened | | Profit/(Loss) Before Income Tax | 19,198 | (4,899) | Turnaround to profit | | Income Tax Expense | (808) | (2,179) | -62.9% | | Profit/(Loss) from Continuing Operations | 18,390 | (7,078) | Turnaround to profit | | Profit/(Loss) from Discontinued Operations | 24,865 | (586) | Turnaround to profit | | Profit/(Loss) for the Period | 43,255 | (7,664) | Turnaround to profit | | Profit/(Loss) Attributable to Owners of the Company | 47,535 | (4,811) | Turnaround to profit | | Non-controlling Interests | (4,280) | (2,853) | +50.0% | | Total Comprehensive Income/(Expense) Attributable to Owners of the Company | 47,349 | (9,957) | Turnaround to profit | CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION As of June 30, 2025, total assets slightly increased, non-current assets decreased due to reduced intangible and deferred tax assets, while current assets significantly grew, driven by trade receivables and cash and cash equivalents, leading to an increase in total equity and a slight decrease in total liabilities from reduced non-current liabilities Condensed Consolidated Statement of Financial Position (As of June 30) | Metric | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | ASSETS | | | | | Total Non-current Assets | 307,164 | 388,820 | -21.0% | | Property, Plant and Equipment | 2,160 | 4,585 | -52.9% | | Deferred Tax Assets | - | 6,137 | -100.0% | | Intangible Assets | 282,985 | 356,714 | -20.7% | | Total Current Assets | 675,068 | 588,688 | +14.7% | | Trade Receivables | 209,080 | 140,731 | +48.6% | | Financial Assets at Fair Value Through Profit or Loss | 35,275 | 94,707 | -62.8% | | Cash and Cash Equivalents | 324,702 | 210,486 | +54.3% | | TOTAL ASSETS | 982,232 | 977,508 | +0.5% | | EQUITY | | | | | Equity Attributable to Owners of the Company | 346,746 | 317,820 | +9.1% | | Non-controlling Interests | 26,314 | 30,594 | -14.0% | | TOTAL EQUITY | 373,060 | 348,414 | +7.1% | | LIABILITIES | | | | | Total Non-current Liabilities | 83,418 | 182,244 | -54.2% | | Total Current Liabilities | 525,754 | 446,850 | +17.7% | | Trade Payables | 40,013 | 14,425 | +177.4% | | Shareholder Loans | 122,016 | 119,085 | +2.5% | | Related Party Loans | 3,512 | 11,277 | -68.9% | | TOTAL LIABILITIES | 609,172 | 629,094 | -3.2% | | TOTAL EQUITY AND LIABILITIES | 982,232 | 977,508 | +0.5% | CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the six months ended June 30, 2025, equity attributable to owners increased from HK$318 million at the beginning of the period to HK$347 million, primarily due to profit contributions, despite share repurchases and currency translation differences Condensed Consolidated Statement of Changes in Equity (Six Months Ended June 30) | Metric | June 30, 2025 (HK$ thousand) | Jan 1, 2024 (HK$ thousand) | Change (HK$ thousand) | | :--- | :--- | :--- | :--- | | Equity Attributable to Owners of the Company | | | | | Share Capital | 7,395 | 7,950 | (555) | | Share Premium | 559,440 | 628,837 | (69,397) | | Reserves | (220,089) | (318,967) | 98,878 | | Subtotal | 346,746 | 317,820 | 28,926 | | Non-controlling Interests | 26,314 | 30,594 | (4,280) | | Total Equity | 373,060 | 348,414 | 24,646 | | Profit/(Loss) for the Period | 47,535 | (4,811) | 52,346 | | Currency Translation Differences | (186) | (5,146) | 4,960 | | Shares Repurchased | (69,952) | - | (69,952) | | Disposal of Subsidiaries | 52,404 | - | 52,404 | CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS For the six months ended June 30, 2025, net cash outflow from operating activities decreased, net cash inflow from investing activities significantly increased, and net cash flow from financing activities shifted from inflow to outflow, with cash and cash equivalents notably rising 54.3% to HK$325 million at period-end Condensed Consolidated Statement of Cash Flows (Six Months Ended June 30) | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | | :--- | :--- | :--- | :--- | | Net Cash (Outflow)/Inflow from Operating Activities | (23,561) | (71,205) | 47,644 | | Net Cash Inflow from Investing Activities | 139,967 | 13,472 | 126,495 | | Net Cash Inflow/(Outflow) from Financing Activities | (10,848) | 115,889 | (126,737) | | Increase/(Decrease) in Cash and Cash Equivalents | 105,558 | 58,156 | 47,402 | | Cash and Cash Equivalents at Beginning of Period | 210,486 | 245,234 | (34,748) | | Currency Translation Differences | 8,658 | (1,874) | 10,532 | | Cash and Cash Equivalents at End of Period | 324,702 | 301,516 | 23,206 | NOTES TO THE INTERIM FINANCIAL INFORMATION 1. GENERAL INFORMATION The company was incorporated in the Cayman Islands in 2013 and listed on the Main Board of the Hong Kong Stock Exchange, primarily engaged in investment holding, with subsidiaries in media advertising and marketing, environmental maintenance, and trading businesses - The company was incorporated in the Cayman Islands on June 20, 2013, and listed on the Main Board of The Stock Exchange of Hong Kong404143 - Its principal business is investment holding, with subsidiaries engaged in media advertising and marketing, environmental maintenance, and trading businesses4143 2. BASIS OF PREPARATION AND MATERIAL ACCOUNTING POLICIES The interim financial information is prepared in accordance with HKAS 34 and the historical cost convention, with accounting policies consistent with the 2024 annual consolidated financial statements, except for new HKFRS amendments effective this period - The interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' and on a historical cost basis444546 - This period, the Group first applied amendments to Hong Kong Financial Reporting Standards issued by the HKICPA, which had no significant impact on the financial position and performance4849 3. SEGMENT INFORMATION The company's continuing operations are segmented into environmental maintenance, media advertising and marketing, and trading, with media advertising and marketing revenue significantly increasing this period while environmental maintenance revenue declined, and property leasing and medical device sales businesses were disposed of and classified as discontinued operations - The Group's continuing operations are divided into three segments: environmental maintenance, media advertising and marketing, and trading businesses5455 - The property leasing business was disposed of during
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