金泰丰国际控股(09689) - 2025 - 中期财报

Company Information Company Overview This section outlines the company's basic information, including board members, committee structures, and registered locations - The Board of Directors comprises four executive directors and three independent non-executive directors, with audit, remuneration, and nomination committees established[2] - The company is incorporated in the Cayman Islands, with its headquarters and principal place of business in China located in Guangzhou, Guangdong Province, and its principal place of business in Hong Kong in Tsim Sha Tsui, Kowloon[2] - The auditor is RSM Hong Kong, and the Hong Kong share registrar is Tricor Investor Services Limited[3] Unaudited Condensed Consolidated Statement of Comprehensive Income Financial Performance Overview This section reports the unaudited condensed consolidated comprehensive income, showing a significant revenue decrease, a shift from profit to loss, and increased loss per share 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) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 393,097 | 770,418 | -49.0% | | Cost of sales | (382,257) | (759,053) | -49.6% | | Gross profit | 10,840 | 11,365 | -4.6% | | Other (losses)/gains, net | (6,737) | 60 | N/A | | Operating loss | (6,707) | (574) | +1068.5% | | Loss before income tax | (7,442) | (33) | +22451.5% | | Loss and total comprehensive expense for the period | (5,300) | (747) | +609.5% | | Basic and diluted loss per share (RMB) | (0.6 cents) | (0.1 cents) | +500.0% | Unaudited Condensed Consolidated Statement of Financial Position Assets and Liabilities Overview This section discloses the unaudited condensed consolidated financial position, showing increased total and current assets, slightly decreased total equity, and significantly increased total liabilities Condensed Consolidated Statement of Financial Position Key Data | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Assets | | | | | Non-current assets | 18,058 | 25,105 | -28.1% | | Current assets | 519,930 | 437,953 | +18.7% | | Total assets | 537,988 | 463,058 | +16.2% | | Equity | | | | | Total equity | 417,357 | 422,657 | -1.25% | | Liabilities | | | | | Non-current liabilities | 23,304 | 23,829 | -2.2% | | Current liabilities | 97,327 | 16,572 | +487.3% | | Total liabilities | 120,631 | 40,401 | +198.6% | - Current liabilities significantly increased, primarily due to contract liabilities rising from RMB 88 thousand to RMB 73,792 thousand, and an increase in trade and other payables[6] Unaudited Condensed Consolidated Statement of Changes in Equity Equity Changes Overview This section details changes in equity components, reflecting the impact of loss on retained earnings and the utilization of safety reserves Condensed Consolidated Statement of Changes in Equity Key Data | Indicator | June 30, 2025 (RMB thousands) | January 1, 2024 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Share capital | 7,980 | 7,980 | 0 | | Other reserves | 306,851 | 306,924 | -73 | | Retained earnings | 102,526 | 116,595 | -14,069 | | Total equity | 417,357 | 431,499 | -14,142 | - For the six months ended June 30, 2025, the loss and total comprehensive expense for the period was RMB 5,300 thousand, leading to a decrease in retained earnings[7] - Safety reserves utilized RMB 62 thousand in the first half of 2025 and RMB 2 thousand in the first half of 2024[7] Unaudited Condensed Consolidated Statement of Cash Flows Cash Flow Overview This section reports unaudited condensed consolidated cash flows, showing a shift to positive operating cash flow, stable investing cash flow, and negative financing cash flow, resulting in a net cash increase Condensed Consolidated Statement of Cash Flows Key Data | Indicator | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Net cash generated from/(used in) operating activities | 144,357 | (118,996) | | Net cash generated from investing activities | 719 | 571 | | Net cash (used in)/generated from financing activities | (1,439) | 14,444 | | Net increase/(decrease) in cash and cash equivalents | 143,637 | (103,981) | | Cash and cash equivalents at end of period | 176,895 | 85,779 | - Cash flow from operating activities shifted from a net outflow of RMB 118,996 thousand in the same period of 2024 to a net inflow of RMB 144,357 thousand in the same period of 2025[10] - Cash flow from financing activities shifted from a net inflow of RMB 14,444 thousand in the same period of 2024 to a net outflow of RMB 1,439 thousand in the same period of 2025, primarily due to lease payments and interest paid[10] Notes to the Unaudited Condensed Consolidated Interim Financial Statements 1. General Information This section introduces the company's place of incorporation, principal activities, listing information, and ultimate controlling parties - The company is incorporated in the Cayman Islands and primarily engaged in the sale of refined oil products, other petrochemical products, and the blending and sale of fuel oil in China[11] - The company's shares are listed on the Main Board of the Hong Kong Stock Exchange, with Mr. Xu Ziming and Ms. Huang Sizhen as the ultimate controlling parties[12] 2. Basis of Preparation and Accounting Policies This section outlines the basis of preparation and accounting policies adopted for interim financial statements, emphasizing consistency and new standard impact - The financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and should be read in conjunction with the 2024 annual financial statements[13] - Newly issued Hong Kong Financial Reporting Standards, new standards, and amendments have no significant impact on the Group's results or financial position for the current or prior periods[14] 3. Estimates This section highlights management's judgments, estimates, and assumptions in financial statement preparation, noting potential differences from actual results - Significant judgments and estimates made by management in preparing the condensed consolidated interim financial statements are consistent with those in the 2024 annual consolidated financial statements[15] 4. Financial Risk Management This section outlines the Group's financial risks, including market, credit, and liquidity risks, noting no significant changes in risk management policies since 2024 - The Group faces market risks (foreign exchange, interest rates), credit risk, and liquidity risk, with no changes in risk management since the year ended December 31, 2024[16] - Contractual undiscounted cash outflows for financial liabilities show no significant changes compared to the year ended December 31, 2024[17] 5. Revenue and Segment Information This section clarifies the Group's revenue sources and operating segments, noting management reviews the business as a single operating segment - The Group is primarily engaged in the sale of refined oil products, other petrochemical products, and the blending and sale of fuel oil in China, with management reviewing the business as a single operating segment[18] Revenue Analysis | Revenue Source | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Sales of goods | 385,907 | 746,381 | | Service income | 7,190 | 24,037 | | Total revenue | 393,097 | 770,418 | 6. Other (Losses)/Gains, Net This section explains the main components of other net losses for the period, including write-offs of prepayments and property, plant and equipment Other (Losses)/Gains, Net Details | Item | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Write-off of prepayments | (4,194) | – | | Write-off of property, plant and equipment | (1,750) | – | | Others | (793) | 60 | | Other (losses)/gains, net | (6,737) | 60 | 7. Expenses by Nature This section lists expenses by nature, including changes in inventories, purchase costs, and staff costs, reflecting total cost of sales, distribution, and administrative expenses Expenses by Nature Details | Item | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Changes in inventories | 112,723 | (98,090) | | Purchases of refined oil products, fuel oil and other petrochemical products and transportation costs | 269,229 | 856,434 | | Staff costs | 3,133 | 2,727 | | Total cost of sales, distribution and administrative expenses | 393,067 | 771,052 | 8. Finance (Costs)/Income, Net This section discloses net finance costs and income, showing a shift from income to costs, primarily due to increased interest expense on discounted bills Finance (Costs)/Income, Net Details | Item | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest income from bank deposits | 719 | 571 | | Interest expense on lease liabilities | (89) | (84) | | Interest expense on discounted bills | (1,213) | – | | Exchange (losses)/gains, net on cash and cash equivalents | (152) | 54 | | Finance (costs)/income, net | (735) | 541 | 9. Income Tax (Credit)/Expense This section explains the shift from income tax expense to credit for the period, primarily due to the reversal of over-provision for China corporate income tax in prior years Income Tax (Credit)/Expense Details | Item | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Current income tax | (2,249) | 577 | | Deferred income tax | 107 | 137 | | Income tax (credit)/expense | (2,142) | 714 | - The income tax credit is primarily due to the reversal of over-provision for China corporate income tax in prior years[24] - The standard corporate income tax rate for PRC entities is 25%, and the withholding income tax rate for dividends from PRC direct holding companies is 10%[24][25] 10. Loss Per Share This section reports the basic and diluted loss per share for the period and explains the calculation method Loss Per Share Data | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Loss for the period (RMB thousands) | 5,300 | 747 | | Weighted average number of ordinary shares in issue | 930,000,000 | 930,000,000 | | Basic loss per share (RMB) | 0.6 cents | 0.1 cents | - As there were no potential dilutive ordinary shares outstanding during the reporting period, diluted loss per share is the same as basic loss per share[27] 11. Dividends This section states that the company neither paid nor declared any dividends during the reporting period - For the six months ended June 30, 2025, no dividends were paid or declared by the company[27] 12. Property, Plant and Equipment This section reports changes in property, plant and equipment for the period, primarily involving write-offs - For the six months ended June 30, 2025, the Group neither acquired nor disposed of any property, plant and equipment[28] - Property, plant and equipment with a net book value of approximately RMB 1,750,000 was written off during the period[28] 13. Trade and Other Receivables This section provides details and aging analysis of trade and other receivables, showing a significant increase in trade receivables Trade and Other Receivables Details | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Trade receivables, net | 100,360 | 19,099 | +425.5% | | Recoverable value-added tax | 20,677 | 34,440 | -40.0% | | Deposits and others | 12,894 | 12,716 | +1.4% | | Total trade and other receivables | 133,931 | 66,255 | +102.1% | - Trade receivables, net, significantly increased from RMB 19,099 thousand at the end of 2024 to RMB 100,360 thousand as of June 30, 2025[29] - The credit period for trade receivables is generally 0 to 30 days[29] 14. Trade and Other Payables This section provides details and aging analysis of trade and other payables, showing an increase in the total amount Trade and Other Payables Details | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Trade payables | 2,513 | 1,091 | +130.3% | | Accrued staff costs and benefits | 3,635 | 5,775 | -37.1% | | Other taxes payable | 10,180 | 272 | +3642.6% | | Total trade and other payables | 23,243 | 14,730 | +57.8% | - Other taxes payable significantly increased from RMB 272 thousand at the end of 2024 to RMB 10,180 thousand as of June 30, 2025[30] 15. Share Capital This section discloses the company's authorized and issued share capital information, indicating an unchanged share capital structure Share Capital Structure | Indicator | Number of Shares | Equivalent Par Value (HKD) | Equivalent Par Value (RMB) | | :--- | :--- | :--- | :--- | | Authorized ordinary shares (HKD 0.01 each) | 2,000,000,000 | 20,000,000 | 17,161,310 | | Issued and fully paid ordinary shares | 930,000,000 | 9,300,000 | 7,980,009 | - As of June 30, 2025, the company's authorized and issued share capital quantity and par value remained consistent with January 1, 2024[32][33] 16. Capital Commitments This section reports significant capital expenditure commitments at period-end, showing zero capital commitments for property, plant and equipment Capital Commitments | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Property, plant and equipment | – | 8,483 | - As of June 30, 2025, the Group had no significant capital commitments, compared to RMB 8,483 thousand as of December 31, 2024[34] 17. Related Party Transactions This section discloses the Group's transactions and related balances with related parties, as well as key management personnel compensation - Related parties include controlling shareholders Mr. Xu Ziming and Ms. Huang Sizhen, and directors Mr. Xu Xiaoping and Ms. Xu Yayee[35] - The Group entered into a lease agreement with the controlling shareholders, with an annual lease expense of RMB 360,000[35] Balances with Related Parties | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Lease liabilities — controlling shareholders | 3,194 | 3,294 | | Amounts due to a related party — director | 87 | 87 | Key Management Personnel Compensation | Key Management Personnel Compensation | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Salaries, wages, benefits and other emoluments | 1,969 | 1,730 | | Contributions to employee social security schemes | 41 | 89 | | Total | 2,010 | 1,819 | 18. Contingent Liabilities This section refers to litigation matters disclosed in the annual report and assesses the likelihood of compensation liability - Management believes there have been no significant developments in the litigation disclosed in the 2024 annual report, and compensation liability cannot be reliably estimated and is considered low or remote[40] - The Group has not made any provision for the litigation, other than for related legal and other costs incurred[40] Management Discussion and Analysis Business Review This section reviews the Group's business nature, operating environment, and strategies, noting market changes and expansion into other petrochemical products and fuel oil sales - The Group is a wholesaler of oil products and other petrochemical products in Guangdong Province, China, with products including refined oil products, other petrochemical products, and fuel oil[41] - Rising international and local oil prices and new energy alternatives led to refined oil product trade concentrating on naphtha, which later saw reduced competitiveness due to consumption tax policy adjustments[41] - The Group reduced naphtha sales and expanded into other chemical products like C6 fractions and fuel oil sales, but C6 fractions recorded a gross loss of approximately RMB 3,997 thousand due to price fluctuations[41] - For the six months ended June 30, 2025, refined oil product sales recorded a gross profit of approximately RMB 6,488 thousand, and service income of approximately RMB 7,190 thousand was recognized from offshore transactions[41][42] Operating Results This section analyzes the Group's revenue, cost of sales, gross profit, other (losses)/gains, expenses, finance (costs)/income, loss before tax, income tax, and loss for the period Revenue Total revenue significantly decreased by 49.0% year-on-year, primarily due to reduced sales of refined oil products Total Revenue by Product Type | Product Type | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Refined oil product sales | 204,726 | 746,381 | -72.5% | | Fuel oil sales | 36,831 | – | N/A | | Other petrochemical product sales | 144,350 | – | N/A | | Service income | 7,190 | 24,037 | -70.1% | | Total revenue | 393,097 | 770,418 | -49.0% | - Total revenue decreased by approximately 49.0%, primarily due to reduced sales of refined oil products[43] Cost of Sales Cost of sales decreased year-on-year, consistent with the revenue reduction, primarily influenced by purchase costs Cost of Sales by Product Type | Product Type | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Refined oil products | 198,238 | 759,053 | -73.9% | | Fuel oil | 35,672 | – | N/A | | Other petrochemical products | 148,347 | – | N/A | | Total | 382,257 | 759,053 | -49.6% | - The decrease in cost of sales is consistent with the decrease in revenue for the period, with purchase costs influenced by market oil prices[45] Gross Profit and Gross Margin Overall gross margin shifted from negative to positive, primarily benefiting from improved refined oil product gross margin, though other petrochemical products recorded a gross loss Gross Profit and Gross Margin Details | Product Type | Six Months Ended June 30, 2025 Gross profit/(loss) (RMB thousands) | Six Months Ended June 30, 2025 Gross margin | Six Months Ended June 30, 2024 Gross profit/(loss) (RMB thousands) | Six Months Ended June 30, 2024 Gross margin | | :--- | :--- | :--- | :--- | :--- | | Refined oil products | 6,488 | 3.2% | (12,672) | (1.7%) | | Fuel oil | 1,159 | 3.1% | – | Not applicable | | Other petrochemical products | (3,997) | (2.8%) | – | Not applicable | | Sales of goods — Subtotal | 3,650 | 0.9% | (12,672) | (1.7%) | | Service income | 7,190 | Not applicable | 24,037 | Not applicable | | Total | 10,840 | 2.8% | 11,365 | 1.5% | - Overall gross margin (excluding service income) increased from negative 1.7% in the same period of 2024 to 0.9% in the same period of 2025[46] Other (Losses)/Gains, Net Other net losses for the period were primarily due to the write-off of prepayments and assets under construction after the suspension of a terminal enhancement project - Other net losses were primarily due to the write-off of prepayments to the main contractor and assets under construction, following the suspension of the project to enhance the berth capacity of Zengcheng Oil Depot Terminal[47] Distribution Expenses Distribution expenses decreased by 5.4% year-on-year, primarily due to reduced short-term lease expenses and handling charges - Distribution expenses decreased by approximately RMB 277 thousand (5.4%) to RMB 4,883 thousand, primarily due to reduced short-term lease expenses and handling charges[48] Administrative Expenses Administrative expenses decreased by 13.3% year-on-year, primarily due to reduced professional fees and PRC stamp duty, partially offset by increased staff costs - Administrative expenses decreased by approximately RMB 912 thousand (13.3%) to RMB 5,927 thousand, primarily due to reduced professional fees and PRC stamp duty[49] Finance (Costs)/Income, Net Net finance shifted from income to costs, primarily due to increased interest expense on discounted bills - Net finance shifted from an income of RMB 541 thousand in the same period of 2024 to a cost of RMB 735 thousand in the same period of 2025, primarily due to increased interest expense on discounted bills[50] Loss Before Income Tax Loss before income tax significantly increased, primarily due to the write-off of prepayments and assets under construction, and increased interest expenses - Loss before income tax increased from RMB 33 thousand in the same period of 2024 to RMB 7,442 thousand in the same period of 2025[51] - The increase in loss was primarily due to the write-off of prepayments and assets under construction related to the Zengcheng Oil Depot Terminal Berth Capacity Enhancement Project, and increased interest expenses[51] Income Tax Credit/(Expense) Income tax for the period was a credit, primarily due to the reversal of over-provision for China corporate income tax in prior years - The income tax credit for the six months ended June 30, 2025, was primarily due to the reversal of over-provision for China corporate income tax in prior years[52] Loss for the Period Loss for the period significantly increased, primarily affected by asset write-offs and increased interest expenses, partially offset by income tax credit - Loss for the period increased from RMB 747 thousand in the same period of 2024 to RMB 5,300 thousand in the same period of 2025[53] - The increase in loss was primarily due to the write-off of prepayments and assets under construction related to the Zengcheng Oil Depot Terminal Berth Capacity Enhancement Project, and increased interest expenses, partially offset by the reversal of over-provision for China corporate income tax in prior years[53] Liquidity and Financial Resources This section outlines the Group's cash flows, net current assets, borrowings, capital commitments, significant investments, capital structure, pledged assets, contingent liabilities, and foreign exchange risk management Cash Flows Operating cash flow shifted from negative to positive, financing cash flow shifted from positive to negative, and cash and cash equivalents at period-end significantly increased Cash Flow Overview | Item | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Net cash generated from/(used in) operating activities | 144,357 | (118,996) | | Net cash generated from investing activities | 719 | 571 | | Net cash (used in)/generated from financing activities | (1,439) | 14,444 | | Net increase/(decrease) in cash and cash equivalents | 143,637 | (103,981) | - Net cash from operating activities turned positive, primarily attributable to a decrease in net working capital generated from operations[54] - Cash and cash equivalents at period-end increased from RMB 33,410 thousand at the end of 2024 to RMB 176,895 thousand as of June 30, 2025[55] Net Current Assets Net current assets slightly increased - As of June 30, 2025, net current assets were approximately RMB 422,603 thousand, an increase of approximately RMB 1,222 thousand compared to December 31, 2024[56] Borrowings and Gearing Ratio The Group had no borrowings at the end of the reporting period, thus no gearing ratio is presented - As of June 30, 2025, the Group had no borrowings, and therefore no gearing ratio is presented[57] Capital Commitments No capital expenditures were incurred during the period, and there were no significant capital commitments at the end of the reporting period - For the six months ended June 30, 2025, the Group incurred no capital expenditures[58] - As of June 30, 2025, the Group had no significant capital commitments (December 31, 2024: RMB 8,483 thousand)[58] Significant Investments, Material Acquisitions and Disposals of Subsidiaries and Associates There were no significant investments, material acquisitions, or disposals of subsidiaries and associates during the period - For the six months ended June 30, 2025, the Group had no significant investments, material acquisitions, or disposals of subsidiaries and associates[59] Capital Structure The company's capital structure, comprising issued share capital and reserves, remained unchanged at the end of the reporting period - As of June 30, 2025, and December 31, 2024, the company's capital structure comprised its issued share capital and reserves[60] Pledged Assets The Group had no pledged assets at the end of the reporting period - As of June 30, 2025, and December 31, 2024, the Group had no pledged assets[61] Contingent Liabilities Reaffirms that litigation matters disclosed in the annual report have no significant developments, with low likelihood of compensation liability - Management believes there have been no significant developments in the litigation disclosed in the 2024 annual report, and compensation liability cannot be reliably estimated and is considered low or remote[62] Foreign Exchange Risk The Group primarily settles in RMB, but some transactions are in foreign currencies; foreign exchange risk is managed by closely monitoring exchange rate movements, with no hedging policy currently - Most of the Group's transactions are settled in RMB, but some are settled in foreign currencies, primarily HKD-denominated assets and liabilities[63] - The Group currently has no foreign currency hedging policy, manages foreign exchange risk by closely monitoring exchange rate movements, and the Directors consider foreign exchange risk not significant[64] Human Resources This section describes the Group's employee count, staff costs, recruitment and remuneration policies, and welfare programs - As of June 30, 2025, the Group had 18 full-time employees in China[65] Total Staff Costs | Indicator | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total staff costs (including directors' emoluments) | 3,133 | 2,727 | +14.9% | - Remuneration is determined based on qualifications, position, and experience, with annual performance reviews for salary increments, bonuses, and promotions[65] - Welfare programs include basic medical insurance, unemployment insurance, and mandatory provident fund contributions for Hong Kong employees[65] Future Plans and Prospects This section outlines the Group's market opportunities in energy security and safety, noting no specific plans for significant investments or capital assets currently - Guangdong Energy Bureau's plan emphasizes energy security and safety, positioning the Group to play a greater role in the local supply chain with its experience in the refined oil market and customer network[66] - As of June 30, 2025, the Group had no specific plans for significant investments or capital assets for the coming year[67] Use of Net Proceeds from the Company's Initial Public Offering IPO Proceeds Usage and Adjustments This section discloses the use of net proceeds from the initial public offering and explains adjustments to the use of unutilized funds - The company's GEM listing net proceeds of approximately RMB 20,803 thousand were successfully transferred to the Main Board of the Stock Exchange on May 17, 2023[68] - The Board has resolved to re-designate the unutilized net proceeds of approximately RMB 3,474 thousand for working capital and general corporate purposes[68] Share Offer Net Proceeds Usage | Purpose | Allocated as per prospectus (RMB thousands) | Amount utilized after re-allocation (RMB thousands) | Unutilized as of June 30, 2025 (RMB thousands) | | :--- | :--- | :--- | :--- | | Enhancing berth capacity of Zengcheng Oil Depot Terminal | 11,038 | 7,564 | – | | Renovating oil tanks, pipelines and other depot facilities at Zengcheng Oil Depot | 9,765 | 9,765 | – | | Working capital and general corporate purposes | – | – | 3,474 | | Total | 20,803 | 17,329 | 3,474 | - The remaining unutilized net proceeds are deposited in licensed bank accounts in Hong Kong and China, expected to be fully utilized by December 31, 2025[69] Interim Dividends Interim Dividend Policy This section states that the Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Directors do not recommend the payment of any dividend for the six months ended June 30, 2025[71] Purchase, Sale or Redemption of the Company's Listed Securities Listed Securities Transaction Status This section states that neither the company nor any of its subsidiaries purchased, sold, or redeemed any listed securities during the reporting period - 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[72] Directors' Interests and Short Positions in Shares, Underlying Shares and Debentures Directors' Shareholding Status This section discloses the interests of directors and chief executives in the company's shares as of June 30, 2025 Directors and Chief Executives Shareholding Status | Name/Designation | Nature of interest | Number of shares | Percentage of shareholding | | :--- | :--- | :--- | :--- | | Xingming Limited | Beneficial owner | 480,150,000 | 51.63% | | Mr. Xu Ziming | Interest in controlled corporation | 480,150,000 | 51.63% | | Ms. Huang Sizhen | Spouse's interest | 480,150,000 | 51.63% | | Kangshi Investment Limited | Beneficial owner | 130,140,000 | 13.99% | | Ms. Xu Yayee | Interest in controlled corporation | 130,140,000 | 13.99% | - Mr. Xu Ziming and Ms. Huang Sizhen jointly hold 51.63% of the shares through Xingming Limited[73] - Ms. Xu Yayee holds 13.99% of the shares through Kangshi Investment Limited[73] Share Option Scheme Share Option Scheme Details This section introduces the company's share option scheme adopted in 2019, aimed at attracting and retaining talent, but no share options have been granted as of the reporting date - The company adopted a share option scheme on May 28, 2019, to attract and retain quality employees and other individuals[75] - The maximum number of shares that may be issued under the share option scheme is 42,000,000 shares, representing approximately 4.52% of the company's share capital[75] - As of the date of this report, the company has not granted any share options since the adoption of the share option scheme[76] Major Shareholders Major Shareholder Information This section states that, apart from the disclosed directors and chief executives, no other person holds significant share interests requiring disclosure - As of June 30, 2025, no person other than the disclosed directors or chief executives held any interests required to be recorded in the register kept under Section 336 of the Securities and Futures Ordinance[77] Corporate Governance Practices Compliance with Corporate Governance Code This section confirms the company's continuous compliance with all code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules during the reporting period - The company has complied with all code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules for the six months ended June 30, 2025[78] Directors' Compliance with Standard of Dealings Directors' Securities Dealing Conduct This section states that all directors confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules during the reporting period - All Directors confirmed that for the six months ended June 30, 2025, they complied with the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules[79] Competing Interests No Competing Interests Statement This section states that controlling shareholders, directors, and their close associates have no interests in any business that competes with the Group's business - For the six months ended June 30, 2025, and up to the date of this report, none of the controlling shareholders, Directors, or their respective close associates had any interests in any business that competes with the Group's business[80] Audit Committee Audit Committee Responsibilities and Review This section describes the Audit Committee's main responsibilities and confirms its review of this interim report - The Audit Committee's primary responsibilities include reviewing and overseeing financial reporting, internal control, and risk management systems, and communicating with external auditors[81] - The Audit Committee has reviewed the unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025, and this interim report[81] By Order of the Board Board Statement This section reports the release by Mr. Xu Ziming, Chairman of the Board, on behalf of the Board, and lists the Board members as of the report date - This report was issued by Mr. Xu Ziming, Chairman and Executive Director, on behalf of the Board on August 22, 2025[82][83] - Executive Directors as of the report date include Mr. Xu Ziming, Ms. Huang Sizhen, Mr. Xu Xiaoping, and Ms. Xu Yayee; Independent Non-executive Directors include Mr. Xu Xingshan, Mr. Jin Shaocong, and Ms. E Hongda[83]