恒都集团(00725) - 2025 - 中期财报

Unaudited Interim Condensed Consolidated Financial Information This section presents the unaudited interim condensed consolidated financial statements for the period ended June 30, 2025 Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, Hendu Group's revenue grew significantly by 37.4% to HKD 221,708 thousand, with profit for the period increasing by 126.8% to HKD 17,691 thousand, and basic earnings per share rising to 8.9 HK cents Condensed Consolidated Statement of Profit or Loss Key Data | Indicator | June 30, 2025 (Thousand HKD) | June 30, 2024 (Thousand HKD) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 221,708 | 161,393 | +37.4% | | Gross Profit | 64,271 | 43,401 | +48.1% | | Operating Profit | 21,682 | 8,570 | +153.0% | | Profit Before Tax | 21,682 | 8,564 | +153.2% | | Profit for the Period Attributable to Company Shareholders | 17,691 | 7,800 | +126.8% | | Basic and Diluted Earnings Per Share (HK cents) | 8.9 | 3.9 | +128.2% | Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, profit for the period was HKD 17,691 thousand, and with exchange differences from foreign operations, total comprehensive income attributable to company shareholders reached HKD 21,364 thousand, a substantial increase from HKD 3,219 thousand in the prior year Condensed Consolidated Statement of Comprehensive Income Key Data | Indicator | June 30, 2025 (Thousand HKD) | June 30, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Profit for the Period | 17,691 | 7,800 | | Exchange Differences on Translation of Financial Statements of Foreign Operations | 3,673 | (4,581) | | Total Comprehensive Income for the Period Attributable to Company Shareholders | 21,364 | 3,219 | - In the first half of 2025, exchange gains from translating financial statements of foreign operations were HKD 3,673 thousand, compared to an exchange loss of HKD 4,581 thousand in the prior period, primarily due to the appreciation of RMB against HKD[6][50] Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets increased to HKD 514,900 thousand, and shareholders' equity rose to HKD 447,045 thousand, with a significant increase in trade and bills receivables within current assets, while total liabilities remained low Condensed Consolidated Statement of Financial Position Key Data | Indicator | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Total Assets | 514,900 | 495,982 | | Non-current Assets | 210,313 | 218,479 | | Current Assets | 304,587 | 277,503 | | Total Equity | 447,045 | 431,650 | | Total Liabilities | 67,855 | 64,332 | | Current Liabilities | 59,746 | 56,226 | | Non-current Liabilities | 8,109 | 8,106 | - Trade and bills receivables significantly increased from HKD 80,903 thousand as of December 31, 2024, to HKD 131,991 thousand as of June 30, 2025[7] Condensed Consolidated Statement of Changes in Equity For the six months ended June 30, 2025, total equity attributable to company shareholders increased from HKD 431,650 thousand at the beginning of the year to HKD 447,045 thousand, mainly driven by total comprehensive income of HKD 21,364 thousand, partially offset by dividends paid of HKD 5,969 thousand Condensed Consolidated Statement of Changes in Equity Key Data | Indicator | January 1, 2025 (Thousand HKD) | Total Comprehensive Income for the Period (Thousand HKD) | Dividends Paid (Thousand HKD) | June 30, 2025 (Thousand HKD) | | :--- | :--- | :--- | :--- | :--- | | Total Equity | 431,650 | 21,364 | (5,969) | 447,045 | | Other Reserves | 13,997 | 3,673 | – | 17,670 | | Retained Earnings | 397,757 | 17,691 | (5,969) | 409,479 | Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2025, net cash used in operating activities was HKD 11,215 thousand, compared to a net inflow of HKD 20,185 thousand in the prior year, with net cash from investing activities of HKD 6,627 thousand and net cash used in financing activities of HKD 6,055 thousand, resulting in a net decrease in cash and cash equivalents of HKD 10,643 thousand Condensed Consolidated Statement of Cash Flows Key Data | Indicator | June 30, 2025 (Thousand HKD) | June 30, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Net Cash (Used in) Generated from Operating Activities | (11,215) | 20,185 | | Net Cash Generated from (Used in) Investing Activities | 6,627 | (7,197) | | Net Cash Used in Financing Activities | (6,055) | (225) | | Net (Decrease) Increase in Cash and Cash Equivalents | (10,643) | 12,763 | | Cash and Cash Equivalents at June 30 | 42,785 | 51,443 | - Operating cash flow shifted from a net inflow of HKD 20,185 thousand in the prior period of 2024 to a net outflow of HKD 11,215 thousand in the same period of 2025[10] - Investing cash flow shifted from a net outflow of HKD 7,197 thousand in the prior period of 2024 to a net inflow of HKD 6,627 thousand in the same period of 2025, primarily due to increased proceeds from the disposal of financial assets at fair value through profit or loss[10] Notes to Unaudited Interim Condensed Consolidated Financial Information This section provides detailed notes to the unaudited interim condensed consolidated financial information, covering general information, basis of preparation, accounting policies, estimates, and specific financial statement line items General Information The Company is an investment holding company primarily engaged in manufacturing and trading wire and cable products, incorporated in Bermuda, with financial information presented in Hong Kong Dollars - The Group is primarily engaged in the manufacturing and trading of wire and cable products[11] Basis of Preparation The unaudited interim condensed consolidated financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants - The financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[12] Accounting Policies The accounting policies adopted are consistent with the 2024 consolidated financial statements, except for income tax estimates and the adoption of new/revised HKFRSs, where the "Lack of Exchangeability" amendment has no significant impact on past or future periods - Accounting policies are consistent with the 2024 consolidated financial statements, except for income tax estimates and the adoption of new/revised Hong Kong Financial Reporting Standards[13] - The Group first applied HKAS 21 and HKFRS 1 (Amendments) "Lack of Exchangeability" on January 1, 2025, with no significant impact expected[14] - Management is evaluating several new/revised standards effective in 2026 and 2027, which are not expected to impact operating results or financial position[15][16] Estimates The preparation of interim financial information involves management's judgments, estimates, and assumptions, consistent with those used in the 2024 consolidated financial statements, with carrying amounts of financial assets and liabilities approximating fair value due to their short-term maturity - Significant judgments made by management in applying accounting policies and estimating uncertainties are consistent with the 2024 consolidated financial statements[17] - The carrying amounts of financial assets and liabilities approximate their fair values due to their short-term maturity[18] Revenue and Segment Information The Group primarily manufactures and trades wire and cable products, with revenue of HKD 221,708 thousand in the first half of 2025, where the Americas segment contributed the most with HKD 174,528 thousand, accounting for 78.7% of total revenue, and two major customers contributed HKD 156,837 thousand, both from the Americas segment Revenue and Segment Results by Region for H1 2025 | Region | Revenue (Thousand HKD) | Segment Results (Thousand HKD) | Total Segment Assets (Thousand HKD) | | :--- | :--- | :--- | :--- | | Hong Kong | 11,631 | 3,545 | 51,493 | | China (excluding Hong Kong) | 17,965 | (3,564) | 86,693 | | Americas | 174,528 | 20,163 | 179,972 | | Vietnam | 9,877 | 1,706 | 103,868 | | Japan | 7,224 | 1,248 | 2,314 | | Other Countries | 483 | 83 | 199 | | Total Reported Segments | 221,708 | 23,181 | 424,539 | - Revenue from the Americas segment increased by 53.7% year-on-year to HKD 174,528 thousand, accounting for 78.7% of total revenue, making it the Group's primary income source[20][55] Major Customer Revenue Contribution | Customer | June 30, 2025 (Thousand HKD) | June 30, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Customer A | 114,714 | 60,359 | | Customer B | 42,123 | 40,705 | | Total | 156,837 | 101,064 | - Two major customers (Customer A and Customer B) contributed HKD 156,837 thousand in revenue, representing 70.7% of total revenue, both from the Americas segment[22][23] Other Income For the six months ended June 30, 2025, total other income was HKD 6,070 thousand, an increase from HKD 4,803 thousand in the prior period, mainly due to a net gain of HKD 3,252 thousand from fair value changes of financial assets at fair value through profit or loss Other Income Details | Item | June 30, 2025 (Thousand HKD) | June 30, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Scrap Sales | 698 | 2,001 | | Rental Income from Investment Properties | 865 | 1,715 | | Net Gain from Fair Value Changes of Financial Assets at Fair Value Through Profit or Loss | 3,252 | – | | Interest Income | 489 | 458 | | Government Grants | 12 | 35 | | Freight Costs Received from Customers | 72 | 385 | | Miscellaneous Income | 682 | 209 | | Total | 6,070 | 4,803 | - A net gain of HKD 3,252 thousand from fair value changes of financial assets at fair value through profit or loss was the primary driver of other income growth in the first half of 2025[24] Operating Profit Operating profit is stated after deducting or including various expenses, with significant increases in cost of inventories and staff costs, and a rise in revaluation loss on investment properties Operating Profit Deductions/Inclusions | Item | June 30, 2025 (Thousand HKD) | June 30, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Depreciation | 4,278 | 4,500 | | Cost of Inventories | 111,325 | 83,155 | | Revaluation Loss on Investment Properties | 9,128 | 4,926 | | Staff Costs (including Directors' Emoluments) | 50,500 | 44,709 | | Provision for Inventories (included in Cost of Inventories) | 10,348 | 2,929 | - Cost of inventories同比增長33.9%至HKD 111,325 thousand, and staff costs increased by 12.9% to HKD 50,500 thousand[25] - Revaluation loss on investment properties increased from HKD 4,926 thousand in the prior period of 2024 to HKD 9,128 thousand in the same period of 2025[25] Finance Costs For the six months ended June 30, 2025, the Group incurred no finance costs, compared to HKD 6 thousand in interest expense on lease liabilities in the prior period - No finance costs were incurred in the first half of 2025, indicating no borrowing or lease liability interest expenses for the Group[26] Taxation For the six months ended June 30, 2025, total taxation was HKD 3,991 thousand, a significant increase from HKD 764 thousand in the prior period, primarily due to a substantial rise in Hong Kong profits tax Taxation Details | Item | June 30, 2025 (Thousand HKD) | June 30, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Hong Kong Profits Tax | 7,290 | 1,257 | | Overseas Tax | 1,125 | 1,416 | | Deferred Tax Arising from and Reversal of Temporary Differences | (4,424) | (1,909) | | Total | 3,991 | 764 | - Hong Kong profits tax significantly increased from HKD 1,257 thousand in the prior period of 2024 to HKD 7,290 thousand in the same period of 2025[29] - Hong Kong profits tax is calculated at a two-tiered rate, with 8.25% for the first HKD 2,000,000 and 16.5% for the remainder[27] Staff Costs For the six months ended June 30, 2025, total staff costs were HKD 50,500 thousand, an increase from the prior period, mainly due to growth in wages, salaries, and allowances, as well as social security costs, with directors' and key management personnel's remuneration also rising Staff Costs Details | Item | June 30, 2025 (Thousand HKD) | June 30, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Wages, Salaries and Allowances | 42,403 | 41,789 | | Social Security Costs | 7,160 | 1,850 | | Retirement Benefit Costs – MPF Scheme Contributions | 200 | 210 | | Others | 737 | 860 | | Total | 50,500 | 44,709 | - Social security costs significantly increased from HKD 1,850 thousand in the prior period of 2024 to HKD 7,160 thousand in the same period of 2025[30] Directors' and Key Management Personnel's Remuneration | Item | June 30, 2025 (Thousand HKD) | June 30, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Directors' Emoluments | 8,685 | 7,522 | | Key Management Personnel's Remuneration | 10,123 | 8,947 | Earnings Per Share For the six months ended June 30, 2025, basic earnings per share were 8.9 HK cents, a significant increase from 3.9 HK cents in the prior period, with diluted earnings per share being the same as basic earnings per share due to no potential dilutive ordinary shares at period-end - Basic earnings per share increased from 3.9 HK cents in the prior period of 2024 to 8.9 HK cents in the same period of 2025[31] - Earnings per share are calculated based on the weighted average of 198,958,000 ordinary shares outstanding during the period[31] Dividends The Board resolved to declare an interim dividend of HKD 0.02 per ordinary share for the six months ended June 30, 2025, consistent with the prior period, and a final dividend of HKD 5,969 thousand for the year ended December 31, 2024, was also paid - An interim dividend of HKD 0.02 per share was declared, consistent with the same period in 2024[32] - A final dividend of HKD 5,969 thousand for the year ended December 31, 2024, was paid on June 6, 2025[32] Property, Plant and Equipment As of June 30, 2025, the net book value of property, plant and equipment was HKD 119,707 thousand, a decrease from HKD 123,874 thousand at the beginning of the year, primarily affected by depreciation and exchange adjustments, despite new additions during the period Changes in Net Book Value of Property, Plant and Equipment | Item | January 1, 2025 (Thousand HKD) | Additions (Thousand HKD) | Depreciation (Thousand HKD) | Exchange Adjustments (Thousand HKD) | June 30, 2025 (Thousand HKD) | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Book Value | 123,874 | 511 | (4,278) | (390) | 119,707 | - Additions to property, plant and equipment amounted to HKD 511 thousand, with depreciation expense of HKD 4,278 thousand during the period[33] - As of June 30, 2025, and December 31, 2024, no property, plant or equipment was pledged as collateral for the Group's bank financing[34] Investment Properties As of June 30, 2025, investment properties were measured at fair value of HKD 74,821 thousand, a decrease from HKD 83,391 thousand as of December 31, 2024, with fair value determined by the directors using the direct comparison method Fair Value of Investment Properties | Indicator | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | At Fair Value | 74,821 | 83,391 | - The fair value of investment properties decreased, with directors determining fair value based on open market value using the direct comparison method[35] - As of June 30, 2025, and December 31, 2024, no investment properties were pledged as collateral for the Group's bank financing[35] Inventories As of June 30, 2025, net inventories were HKD 118,998 thousand, a decrease from December 31, 2024, primarily due to an increase in inventory provision, despite an increase in raw materials Inventories Details | Item | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Raw Materials | 69,504 | 65,522 | | Work-in-progress | 6,388 | 8,101 | | Finished Goods | 71,856 | 74,144 | | Less: Provision for Inventories | (28,750) | (18,402) | | Net | 118,998 | 129,365 | - Inventory provision increased from HKD 18,402 thousand as of December 31, 2024, to HKD 28,750 thousand as of June 30, 2025[36] Trade and Other Receivables As of June 30, 2025, net trade and other receivables were HKD 131,991 thousand, a significant increase from December 31, 2024, mainly due to growth in current to three-month receivables, with a net increase in loss allowance of HKD 1,697 thousand during the period Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Current to Three Months | 102,344 | 67,663 | | Four to Six Months | 29,424 | 11,687 | | Over Six Months | 533 | 420 | | Total Trade Receivables | 132,301 | 79,770 | | Less: Loss Allowance | (2,042) | (345) | | Net Trade Receivables | 130,259 | 79,425 | | Bills Receivables | 1,732 | 1,478 | | Total | 131,991 | 80,903 | - Total trade receivables increased from HKD 79,770 thousand as of December 31, 2024, to HKD 132,301 thousand as of June 30, 2025[37] - Net loss allowance increased by approximately HKD 1,697 thousand during the period, compared to a decrease of HKD 72 thousand in the prior period[38] Financial Assets at Fair Value Through Profit or Loss As of June 30, 2025, financial assets at fair value through profit or loss amounted to HKD 4,830 thousand, primarily equity securities listed in Hong Kong, a decrease from HKD 8,240 thousand as of December 31, 2024 Financial Assets at Fair Value Through Profit or Loss | Item | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Equity Securities Listed in Hong Kong | 4,830 | 8,240 | Share Capital As of June 30, 2025, and December 31, 2024, the Company's authorized share capital was HKD 50,000 thousand, and issued and fully paid share capital was HKD 19,896 thousand, both consisting of ordinary shares with a par value of HKD 0.10 each Share Capital Structure | Item | Number of Shares | Amount (Thousand HKD) | | :--- | :--- | :--- | | Authorized Share Capital (Ordinary Shares of HKD 0.10 each) | 500,000,000 | 50,000 | | Issued and Fully Paid Share Capital (Ordinary Shares of HKD 0.10 each) | 198,958,000 | 19,896 | Other Reserves As of June 30, 2025, total other reserves were HKD 17,670 thousand, an increase from HKD 13,997 thousand at the beginning of the year, primarily due to exchange differences of HKD 3,673 thousand arising from the translation of financial statements of subsidiaries Changes in Other Reserves | Item | January 1, 2025 (Thousand HKD) | Exchange Differences (Thousand HKD) | June 30, 2025 (Thousand HKD) | | :--- | :--- | :--- | | Total Other Reserves | 13,997 | 3,673 | 17,670 | | Exchange Fluctuation Reserve | (23,397) | 3,673 | (19,724) | - Exchange differences of HKD 3,673 thousand arising from the translation of financial statements of subsidiaries significantly impacted other reserves[40] Trade and Other Payables As of June 30, 2025, total trade and other payables were HKD 48,374 thousand, a decrease from December 31, 2024, mainly due to a decline in trade payables, while employee benefit provisions increased Trade and Other Payables Details | Item | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Trade Payables | 12,549 | 20,999 | | Other Payables and Accruals | 14,652 | 14,918 | | Employee Benefit Provisions | 21,173 | 15,431 | | Total | 48,374 | 51,348 | - Trade payables decreased from HKD 20,999 thousand as of December 31, 2024, to HKD 12,549 thousand as of June 30, 2025[41] - Employee benefit provisions increased from HKD 15,431 thousand as of December 31, 2024, to HKD 21,173 thousand as of June 30, 2025[41] Financial Guarantees and Pledges As of June 30, 2025, the Group's bank facilities included trade and loan facilities of HKD 69,300 thousand and forward foreign exchange contract limits of HKD 94,200 thousand, all secured by limited guarantees provided by the Company and certain subsidiaries Bank Facilities | Item | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Trade and Loan Facilities | 69,300 | 72,300 | | Forward Foreign Exchange Contract Limits | 94,200 | 93,192 | - All bank facilities are secured by limited guarantees provided by the Company and certain subsidiaries[42] Commitments As of June 30, 2025, the Group's total minimum future lease payments under non-cancellable operating leases amounted to HKD 3,392 thousand, a decrease from December 31, 2024, and the Group had no capital commitments Non-cancellable Operating Lease Commitments | Term | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | One Year | 1,730 | 1,730 | | Two Years | 1,380 | 1,689 | | Three Years | 282 | 878 | | Total | 3,392 | 4,297 | - The Group had no capital commitments as of June 30, 2025, and December 31, 2024[46] Approval of Unaudited Interim Condensed Consolidated Financial Information The unaudited interim condensed consolidated financial information was approved by the Board of Directors on August 19, 2025 - The financial information was approved by the Board of Directors on August 19, 2025[45] Management Discussion and Analysis This section provides management's perspective on the Group's financial performance, liquidity, business operations, and future outlook for the period Financial Review Despite complex global geopolitical and economic conditions, US President Trump's tariff policies stimulated early shipments from customers, leading to a 37.4% year-on-year revenue growth to HKD 221,700 thousand and a 126.8% increase in profit attributable to shareholders to HKD 17,691 thousand for the first half of 2025, while the Group maintained a zero-debt and net cash position and declared an interim dividend of HKD 0.02 per share - Revenue for the first half of 2025 reached HKD 221,700 thousand, a 37.4% increase compared to the prior period of 2024[48] - Unaudited consolidated profit attributable to company shareholders was HKD 17,691 thousand, a 126.8% increase from HKD 7,800 thousand in the prior period of 2024[49] - Earnings per share were HKD 0.089, a 128.2% increase from HKD 0.039 in the prior period of 2024[49] - Due to the appreciation of RMB against HKD, other comprehensive income was HKD 3,673 thousand, resulting in unaudited total comprehensive income of HKD 21,364 thousand for the period[50] - The Board approved an interim dividend of HKD 0.02 per share, consistent with the prior period[48][51] Liquidity, Financial Resources and Capital Structure The Group maintains a prudent financial management strategy with a zero gearing ratio and no borrowings, reporting bank balances and cash of HKD 42,785 thousand and shareholders' equity of HKD 447,045 thousand as of June 30, 2025, with working capital of HKD 244,841 thousand and a high current ratio of 510% - The gearing ratio remained at zero, with the Group having no borrowings[52] - As of June 30, 2025, bank balances and cash amounted to HKD 42,785 thousand, and shareholders' equity was HKD 447,045 thousand[52] - Working capital was HKD 244,841 thousand, and the current ratio was 510%[52] Exchange Rate Risk All foreseeable exchange rate risks faced by the Group are appropriately managed, with hedging arrangements utilized when necessary - All foreseeable exchange rate risks are appropriately managed, with hedging arrangements used as needed[53] Business Review Despite global economic challenges, the uncertainty of US tariff policies prompted early customer shipments, leading to a 37.4% revenue growth for the Group, with Vietnam's shipments significantly increasing to 74% of turnover while China's factory deliveries decreased, harness sales accounting for 57% of revenue and power cords 41%, Americas business turnover growing by 53.7% to 78.7% of total turnover, gross profit margin improving to 29.0%, inventory turnover accelerating, and net profit margin rising to 8.0% - The Group's revenue increased from HKD 161,393 thousand in the prior period of 2024 to HKD 221,708 thousand in the same period of 2025, a 37.4% increase, primarily due to increased orders from US customers[55] - Shipments from Vietnam accounted for 74% of the Group's turnover (2024: 68%), while deliveries from China factories decreased to 26% (2024: 32%)[54] Product Sales Contribution | Product Category | H1 2025 Contribution (%) | H1 2024 Contribution (%) | | :--- | :--- | :--- | | Harness Sales | 57% | 43% | | Power Cords | 41% | 56% | | Cables, Wires and Plastic Resins | 2% | 1% | - Americas business turnover increased by 53.7% year-on-year to HKD 174,528 thousand, accounting for approximately 78.7% of the Group's total turnover[55] - Gross profit margin increased from 26.9% in the prior period of 2024 to 29.0% in the same period of 2025, mainly due to a weaker Vietnamese Dong, cost control, and efficient production equipment[56] - Inventory levels decreased by 8.0% to HKD 118,998 thousand, and inventory turnover reduced from 187 days to 144 days[57] - Net profit margin improved from 4.8% in the first half of 2024 to 8.0% in the first half of 2025, primarily due to higher investment gains and interest income[57] Outlook The global geopolitical and economic landscape remains unpredictable, but tariff disputes show signs of easing, with the US reaching tariff reduction agreements with countries including Vietnam, and potential for future interest rate cuts; despite challenges from high US tariffs on Chinese goods, the Group will continue to expand Vietnamese production capacity, strategically utilize surplus land and factory buildings in China, and strengthen inventory and working capital management to navigate market changes and achieve stable growth - The global geopolitical and economic landscape remains unpredictable, but tariff disputes show signs of easing, with the US reaching tariff reduction agreements with several countries, including Vietnam[58] - News reports from major monetary authorities, including the US Federal Reserve and the European Central Bank, indicate potential for future interest rate cuts[58] - Goods from China are subject to a 30% tariff, while imported products from Vietnam face a 20% tariff, complicating pricing structures[59] - US President Trump extended the tariff war with China by 90 days, temporarily suspending triple-digit tariffs on Chinese goods, which is positive news[59] - Management will continue to focus on expanding Vietnamese production facilities, developing strategies to more effectively utilize surplus land and factory buildings in China, inventory control, working capital management, and ensuring appropriate recurring expenses[61] Employees and Remuneration Policy As of June 30, 2025, the Group employed 875 full-time personnel globally, with a male-to-female ratio of 1:2.1, and remuneration packages are market-driven, reviewed annually based on performance, experience, and industry practice, with the Group encouraging employees to pursue external courses for continuous learning - As of June 30, 2025, the Group employed 875 full-time personnel globally, with a male-to-female ratio of 1:2.1[62] - Remuneration packages are market-driven, with senior management remuneration reviewed and determined annually based on employee performance, experience, and industry practice[62] - The Group encourages employees to pursue external courses for continuous learning[62] Directors' and Chief Executive's Interests in Shares, Underlying Shares and Debentures As of June 30, 2025, Mr. Meng Chun Hung and Ms. Koo Tik On (Mr. Meng's wife) were both deemed to have interests in 147,810,000 shares held by Spector Holdings Limited, representing 74.29% of the issued share capital, while Mr. Lau Chun Ki held 138,000 shares, representing 0.07% Directors' Long Positions in Shares | Name | Personal Interest | Family Interest | Corporate Interest | Total Interest | Total Interest as % of Issued Share Capital | | :--- | :--- | :--- | :--- | :--- | :--- | | Meng Chun Hung | – | – | 147,810,000 | 147,810,000 | 74.29% | | Koo Tik On | – | 147,810,000 | – | 147,810,000 | 74.29% | | Lau Chun Ki | 138,000 | – | – | 138,000 | 0.07% | - Mr. Meng Chun Hung beneficially owns 99.9% of Spector Holdings Limited, and Ms. Koo Tik On, being Mr. Meng's wife, is therefore deemed to have an interest in the shares held by Spector Holdings[63][64] Substantial Shareholders' Interests in the Share Capital of the Company As of June 30, 2025, Spector Holdings Limited held 147,810,000 shares, representing 74.29% of the issued share capital, making it a substantial shareholder of the Company Substantial Shareholders' Interests in the Share Capital of the Company | Name | Corporate Interest | Total Interest | Total Interest as % of Issued Share Capital | | :--- | :--- | :--- | :--- | | Spector Holdings | 147,810,000 | 147,810,000 | 74.29% | - Spector Holdings is 99.9% owned by Mr. Meng and the remaining 0.1% by Ms. Koo[67] Public Float As of August 19, 2025, over 25% of the Company's issued share capital was held by the public, complying with listing rule requirements - As of August 19, 2025, over 25% of the Company's issued share capital was held by the public[69] Corporate Governance and Social Responsibility The Group is committed to protecting shareholders' interests and enhancing corporate governance, having established a Supervisory Committee, Audit Committee, Remuneration Committee, and Nomination Committee, with the Audit Committee having reviewed the financial information, and the Group actively participates in social activities in Hong Kong, China, and Vietnam, while adhering to the Corporate Governance Code and the Model Code for Securities Transactions - The Group has established a Supervisory Committee, Audit Committee, Remuneration Committee, and Nomination Committee to enhance its corporate governance standards[71] - The Audit Committee has reviewed the Group's adopted accounting principles and practices with management, and discussed risk management, internal controls, and financial reporting matters[70] - The Group continues to participate in and support social activities in Hong Kong, China (excluding Hong Kong), and Vietnam[72] - For the six months ended June 30, 2025, the Company has complied with the provisions of the Corporate Governance Code set out in Appendix C1 to the Listing Rules[73] - Following specific inquiries with all Directors, they have complied with the Model Code for Securities Transactions for the six months ended June 30, 2025[74] Other Matters During the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, redeemed, or sold any of the Company's shares, no significant events occurred after the reporting period, this interim report has been published on the HKEX and Company websites, and the Board expresses gratitude to shareholders, partners, customers, and employees - During the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, redeemed, or sold any of the Company's shares[75] - No significant events occurred after the reporting period up to the date of this report[76] - This interim report and interim results announcement have been published on the HKEX website and the Company's website[77] - The Board sincerely thanks shareholders, partners, customers, and employees for their strong support and hard work[78] Company Information This section provides detailed company information for Hendu Group Limited, including Board members (executive, non-executive, independent non-executive directors), committee members (Audit, Remuneration, Nomination, Supervisory Committees), authorized representatives, company secretary, registered office, principal place of business in Hong Kong, stock code, legal advisors, principal bankers, auditors, share registrars, and company website - The Board of Directors includes 5 executive directors (including Meng Chun Hung as CEO and Vice Chairman), 1 non-executive director (Koo Tik On as Chairman), and 3 independent non-executive directors[79][80] - The Company has an Audit Committee, Remuneration Committee, Nomination Committee, and Supervisory Committee, with Mr. Lau Chun Ki chairing the first three and Ms. Koo Tik On chairing the Supervisory Committee[80] - The Company's stock code is 00725, and its auditor is Fuyima Ze Certified Public Accountants Limited[81]