贸易通(00536) - 2025 - 中期财报

HIGHLIGHTS OF 2025 INTERIM RESULTS This section provides a concise overview of the company's key financial performance indicators for the first half of 2025 2025 Interim Results Highlights | Indicator | H1 2025 (HK$ million) | H1 2024 (HK$ million) | | :--- | :--- | :--- | | Revenue | 121.0 | 122.7 | | Operating Profit | 34.3 | 34.0 | | Profit for the Period | 41.8 | 40.7 | | Basic Earnings Per Share (HK cents) | 5.26 | 5.12 | | Interim Dividend Per Share (HK cents) | 3.7 | 3.7 | Financial Highlights This section presents a detailed summary of the company's financial performance and position for the first half of 2025 Financial Highlights (For the six months ended June 30, 2025) | Indicator | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 121,045 | 122,652 | | Operating Profit | 34,251 | 33,952 | | Profit Before Tax | 47,366 | 46,003 | | Profit for the Period | 41,773 | 40,693 | | Profit Attributable to Ordinary Equity Holders of the Company | 41,773 | 40,693 | | Earnings Per Share (HK cents) Basic | 5.26 | 5.12 | | Earnings Per Share (HK cents) Diluted | 5.26 | 5.12 | | Interim Dividend Per Share (HK cents) | 3.7 | 3.7 | | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Total Assets | 530,471 | 536,137 | | Net Assets | 369,808 | 378,795 | - Basic earnings per share for H1 2025 was 5.26 HK cents, an increase of 0.14 HK cents from 5.12 HK cents in the same period of 2024[6][7] - The interim dividend per share for 2025 was 3.7 HK cents, consistent with 2024, representing a payout ratio of 70.4% of profit attributable to ordinary equity holders of the Company[6][7] Chairman's Statement The Chairman's statement provides an overview of the company's performance, market conditions, and future outlook Overall Performance and Market Outlook Despite market uncertainties from US tariff policy changes and geopolitical tensions, the Group achieved relatively good results in H1 2025, with increased pre-tax and after-tax profit due to higher-than-budgeted interest income and strict cost control - In H1 2025, the Group's turnover was HK$121.0 million (2024: HK$122.7 million), and operating profit was HK$34.3 million (2024: HK$34.0 million)[9][11] - Higher-than-budgeted interest income was generated due to a slower-than-expected reduction in interest rates[9][11] - Through continuous stringent cost control, profit before tax reached HK$47.4 million (2024: HK$46.0 million), and profit after tax was HK$41.8 million (2024: HK$40.7 million)[9][11] - Hong Kong's external trade performance is expected to remain positive, with continued growth momentum in the GETS and GETS-related services sub-segments[15][18] - The Identity Management segment is anticipated to rebound, and the Supply Chain Solutions sub-segment has a series of potential new projects to be implemented in the second half of the year[15][18] - An interim dividend of 3.7 HK cents per share for H1 2025 is recommended, consistent with the previous year[20][22] Management Discussion and Analysis This section provides an in-depth analysis of the company's operational and financial performance during the reporting period Business Review This section reviews the Group's business segment performance in H1 2025, noting slight revenue decline in e-commerce but profit growth, slower recovery in identity management with new opportunities, and improved overall other services driven by GETS-related services E-Commerce Business Review E-commerce revenue slightly decreased by 1.5% to HK$84.0 million, but segment profit grew by 1.5% to HK$27.6 million, driven by GETS price premium despite lower transaction volume, while the Group develops a new digital platform 'T+' for value-added services E-Commerce Business Performance (H1 2025) | Indicator | H1 2025 (HK$ million) | H1 2024 (HK$ million) | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | 84.0 | 85.2 | -1.5% | | GETS Sub-segment Revenue | 74.8 | 74.6 | +0.3% | | Supply Chain Solutions Sub-segment Revenue | 9.2 | 10.6 | -13.8% | | Segment Profit | 27.6 | 27.1 | +1.5% | - The total number of import and export trade declarations in Hong Kong decreased by 3.7% year-on-year, and GETS transaction volume declined by 7.4%, primarily due to geopolitical tensions and uncertainties surrounding US tariff policies[26][29] - The GETS sub-segment achieved sustained revenue growth through premium pricing for quality services and a market-leading customer base, offsetting the impact of declining transaction volume[26][29] - Revenue from Supply Chain Solutions sub-segment projects decreased by HK$1.4 million year-on-year, attributed to a subdued market sentiment and longer lead times for customer order confirmation[26][29] - The Group is developing a new generation digital platform, "T+", aiming to transform from a GETS provider to a comprehensive value-added service provider for Hong Kong's trade community[31][36] - The GETS sub-segment is expected to perform stably, and the Supply Chain Solutions sub-segment is anticipated to improve due to new orders[27][30] Identity Management ("IDM") Business Review Identity Management revenue declined 2.7% to HK$21.6 million and segment profit dropped 59.9% to HK$1.0 million, but new digital certificate solutions and government contracts lay a foundation for future growth, with improved product features expected in Q3 Identity Management Business Performance (H1 2025) | Indicator | H1 2025 (HK$ million) | H1 2024 (HK$ million) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 21.6 | 22.2 | -2.7% | | Segment Profit | 1.0 | 2.4 | -59.9% | - Recurring maintenance and support service revenue decreased by HK$1.1 million, while project revenue increased by HK$0.5 million[34][37] - A digital certificate solution has been officially recognized by a major financial regulator in Hong Kong for remote account opening[35][37] - A significant multi-year commercial arrangement has been established with a Hong Kong government department to design, implement, and issue a new type of digital certificate[35][37] - Significant progress has been made in digital account opening and mobile security solutions, based on 2024 R&D investments, with new product enhancements expected to be launched in Q3 2025[38][41] - The Identity Management business is expected to show clear signs of improvement starting from H2 2025[39][41] Other Services Business Review Other Services revenue increased 1.9% to HK$15.5 million and segment profit grew 6.6% to HK$9.7 million, driven by strong GETS-related services, particularly PAObank referral income, despite continued pressure on smart POS business due to local retail downturn Other Services Business Performance (H1 2025) | Indicator | H1 2025 (HK$ million) | H1 2024 (HK$ million) | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | 15.5 | 15.2 | +1.9% | | Segment Profit | 9.7 | 9.1 | +6.6% | | Smart POS and Related Business Revenue | 4.1 | 4.8 | -14.6% | | GETS-related Services Revenue | 11.4 | 10.4 | +10.0% | - Smart POS and related business performance declined by approximately 16% year-on-year, primarily due to ongoing disruptions in the local retail sector, the US-China tariff war, and changes in consumer spending patterns[43][46] - The Group has implemented restructuring and cost control measures to mitigate adverse impacts on profitability[43][46] - Revenue from the GETS-related services sub-segment increased, mainly driven by a 73.9% rise in referral income from the partnership with PAObank[45][47] - GETS-related services are expected to continue achieving stable results, with referral income from PAObank steadily increasing, leading to an overall improvement in other services business in the second half of the year[48][53] Financial Review This section reviews the Group's H1 2025 financial performance, covering revenue, operating expenses, profit, dividends, liquidity, financial position, capital commitments, and employee information, highlighting slight revenue decline but operating profit growth through cost control and stable interim dividend Revenue and Operating Expenses Group revenue decreased by 1.3% to HK$121.0 million, while operating expenses before depreciation also fell by 1.3% to HK$82.9 million due to stringent cost control, resulting in a slight 0.9% increase in operating profit to HK$34.3 million Revenue and Operating Expenses (H1 2025) | Indicator | H1 2025 (HK$ million) | H1 2024 (HK$ million) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 121.0 | 122.7 | -1.3% | | Operating Expenses Before Depreciation | 82.9 | 84.0 | -1.3% | | Employee Costs | 54.3 | 55.8 | -2.7% | | Other Operating Expenses | 17.6 | 18.0 | -1.8% | | Procurement Costs | 10.9 | 10.2 | +7.2% | | Depreciation Expense | 3.9 | 4.7 | -17.0% | | Operating Profit | 34.3 | 34.0 | +0.9% | Other Net Income and Profit Net other income rose 9.3% to HK$12.9 million, primarily due to a foreign exchange gain reversal, partially offset by a 20.2% decrease in interest income, leading to a 2.7% increase in after-tax profit to HK$41.8 million and basic/diluted EPS of 5.26 HK cents Other Net Income and Profit (H1 2025) | Indicator | H1 2025 (HK$ million) | H1 2024 (HK$ million) | YoY Change | | :--- | :--- | :--- | :--- | | Other Net Income | 12.9 | 11.8 | +9.3% | | Foreign Exchange Gain/(Loss) | 3.4 (Gain) | (0.1) (Loss) | Reversal from Loss to Gain | | Interest Income | 9.5 | 11.9 | -20.2% | | Share of Profit of an Associate | 0.2 | 0.3 | -33.3% | | Profit Before Tax | 47.4 | 46.0 | +3.0% | | Tax | (5.6) | (5.3) | +5.7% | | Profit After Tax | 41.8 | 40.7 | +2.7% | | Basic Earnings Per Share (HK cents) | 5.26 | 5.12 | +0.14 | | Diluted Earnings Per Share (HK cents) | 5.26 | 5.12 | +0.14 | Dividend The Board declared an interim dividend of 3.7 HK cents per share for H1 2025, consistent with 2024, representing a payout ratio of 70.4% of profit attributable to ordinary equity holders - An interim dividend of 3.7 HK cents per share for H1 2025 was declared, consistent with 2024[57][62] - The interim dividend payout ratio was 70.4% of the profit attributable to ordinary equity holders of the Company[57][62] Liquidity and Financial Position As of June 30, 2025, the Group maintained strong liquidity with total cash and bank deposits of HK$453.3 million and no borrowings, despite a slight decrease in total assets and net assets primarily due to the 2024 final dividend distribution Liquidity and Financial Position (As of June 30, 2025) | Indicator | June 30, 2025 (HK$ million) | December 31, 2024 (HK$ million) | | :--- | :--- | :--- | | Total Cash and Bank Deposits | 453.3 | 453.1 | | Total Assets | 530.5 | 536.1 | | Net Assets | 369.8 | 378.8 | | Borrowings | None | None | - The decrease in net assets was primarily due to the distribution of the 2024 final dividend of HK$50.9 million[59][63] - No financial instruments were invested during the period, and surplus cash reserves were placed in bank deposits to enhance returns[58][63] Material Acquisitions or Disposals During the six months ended June 30, 2025, the Group did not undertake any material acquisitions or disposals related to subsidiaries or associated companies - No material acquisitions or disposals of subsidiaries or associated companies occurred during the period[60][64] Capital and Reserves As of June 30, 2025, the Group's capital and reserves attributable to shareholders totaled HK$369.8 million, a decrease of HK$9.0 million from year-end 2024, primarily due to the distribution of the 2024 final dividend Capital and Reserves (As of June 30, 2025) | Indicator | June 30, 2025 (HK$ million) | December 31, 2024 (HK$ million) | YoY Change | | :--- | :--- | :--- | :--- | | Capital and Reserves Attributable to Shareholders | 369.8 | 378.8 | -9.0 | Charges on Assets and Contingent Liabilities As of June 30, 2025, the Group held two bank guarantees totaling HK$2.2 million issued to the government, secured by deposit charges, with no other asset charges or contingent liabilities - Two bank guarantees totaling HK$2.2 million are secured by deposit charges to ensure the Group's performance[66][72] - Other than the above, the Group has no other asset charges[67][73] Capital Commitments As of June 30, 2025, outstanding capital commitments not provided for in the financial statements amounted to HK$0.4 million, primarily for computer equipment procurement, a significant reduction from HK$1.9 million at year-end 2024 Capital Commitments (As of June 30, 2025) | Indicator | June 30, 2025 (HK$ million) | December 31, 2024 (HK$ million) | | :--- | :--- | :--- | | Capital Commitments | 0.4 | 1.9 | - Capital commitments are primarily related to the Group's procurement of computer equipment[68][74] Employees and Remuneration Policy As of June 30, 2025, the Group had 222 employees with related costs of HK$54.3 million, maintaining a remuneration policy based on market levels, offering benefits like medical insurance and MPF, and incentive schemes including commissions, awards, and bonuses Employees and Remuneration (H1 2025) | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Number of Employees | 222 | 233 | | Employee-related Costs (HK$ million) | 54.3 | 55.8 | - The remuneration policy is determined based on market levels and offers various benefits and incentive schemes[69][75] Exposure to Fluctuation in Exchange Rates and Related Hedges As of June 30, 2025, the Group had no foreign exchange exposure or related hedging instruments, except for investments in entities incorporated in China and Macau and cash and bank deposits denominated in USD - No other foreign exchange risks or hedging instruments exist, apart from investments in China and Macau entities and USD-denominated cash[70][76] Disclosure of Directors' Interests This section details the interests and short positions of the company's directors and chief executives in shares, underlying shares, and debentures Directors' and Chief Executives' Interests and Short Positions in Shares, Underlying Shares and Debentures This section discloses the long positions of the company's directors and chief executives in shares, underlying shares, and debentures of the company or its associated corporations as of June 30, 2025, including personal, corporate, and share option interests Aggregate Long Positions of Directors and Chief Executives in Shares and Underlying Shares (As of June 30, 2025) | Director's Name | Personal Interests | Corporate Interests | Sub-total | Number of Underlying Shares | Total | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Dr. Lee Nai Hsi | – | 196,798,000 (1) | 196,798,000 | 100,000 | 196,898,000 | 24.78% | | Dr. Lee Kwok Bun | – | 101,125,000 (2) | 101,125,000 | 100,000 | 101,225,000 | 12.74% | | Mr. Zhai Diqiang | – | – | – | 100,000 | 100,000 | 0.01% | | Mr. Chow Tak Hee (4) | – | – | – | 100,000 | 100,000 | 0.01% | | Mr. Cheng Chun Chung | 2,755,843 | – | 2,755,843 | 8,300,000 | 11,055,843 | 1.39% | - Dr. Lee Nai Hsi indirectly holds a significant number of shares through TAL Apparel Limited and Eastex (HK) Limited[82] - Interests in underlying shares represent share options granted to directors under the company's share option scheme[82] - Mr. Chow Tak Hee retired as an Independent Non-executive Director after the Annual General Meeting on May 16, 2025[82] Share Option Scheme The 2014 Share Option Scheme expired on May 8, 2024, but granted unexercised options remain valid, aiming to attract and retain talent and incentivize employees to contribute to the Group's success, with no changes in options during H1 2025 and 43,700,000 options outstanding - The 2014 Share Option Scheme expired on May 8, 2024, but granted unexercised share options remain valid[83][86] - The scheme's purpose is to attract and retain the best employees and provide additional incentives to promote the Group's success[85][88] - As of the date of this interim report, the total number of shares that may be issued under the 2014 Share Option Scheme is 34,875,000 shares, representing approximately 4.39% of the issued shares[90][92] Movements in Share Options (For the six months ended June 30, 2025) | Category | Number of Share Options Outstanding as at January 1, 2025 | Number of Share Options Granted During the Period | Number of Share Options Exercised During the Period | Number of Share Options Cancelled During the Period | Number of Share Options Lapsed Due to Termination of Employment/Expiry of Ten-year Exercise Period During the Period | Number of Share Options Outstanding as at June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Directors | 8,300,000 | – | – | – | – | 8,300,000 | | Employees | 11,400,000 | – | – | – | – | 11,400,000 | | Former Employees | 24,000,000 | – | – | – | – | 24,000,000 | | Total | 43,700,000 | – | – | – | – | 43,700,000 | - No new share options were granted during the period[95][96][97] Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares This section discloses the long positions of substantial shareholders, excluding directors and chief executives, in the company's shares as of June 30, 2025, including Pine Tree Holdings Ltd., TAL Apparel Limited, and Eastex (HK) Limited Aggregate Long Positions of Substantial Shareholders in Shares (As of June 30, 2025) | Substantial Shareholder | Registered Shareholder | Corporate Interests | Number of Shares | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | :--- | | Pine Tree Holdings Ltd. | – | 101,125,000 | 101,125,000 | 12.73% | | TAL Apparel Limited | 101,125,000 | – | 101,125,000 | 12.73% | | Eastex (HK) Limited | 95,673,000 | – | 95,673,000 | 12.04% | - The interest disclosed by Pine Tree Holdings Ltd. pertains to the same batch of shares disclosed by its wholly-owned subsidiary, TAL Apparel Limited[108] - Dr. Lee Nai Hsi is the sole shareholder and director of Eastex (HK) Limited and is therefore deemed to have an interest in the shares held by Eastex[108] Corporate Governance This section outlines the company's commitment to maintaining high standards of corporate governance and compliance with relevant codes Compliance with the Corporate Governance Code The company is committed to maintaining high corporate governance standards and confirms full compliance with all applicable code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules for the six months ended June 30, 2025 - The Company is committed to maintaining high standards of corporate governance and confirms compliance with all applicable code provisions[109][112] The Board The Board comprises two executive, three non-executive (including Chairman), and three independent non-executive directors, responsible for overseeing the company's overall management and operations, with all directors maintaining high attendance at two meetings held during H1 2025 - The Board consists of 2 executive directors, 3 non-executive directors, and 3 independent non-executive directors[110][113] - The Company has entered into employment contracts with executive directors and service contracts with non-executive and independent non-executive directors, each for a term of three years[111][113] Board Meeting Attendance (For the six months ended June 30, 2025) | Director's Name | Meetings Attended/Eligible to Attend | | :--- | :--- | | Dr. Lee Nai Hsi | 2/2 | | Dr. Lee Kwok Bun | 2/2 | | Mr. Yuen Wing Sang | 2/2 | | Mr. Zhai Diqiang | 2/2 | | Mr. Chow Tak Hee (1) | 1/1 | | Ms. Cheung Ho Ling | 2/2 | | Mr. Lam Suen Wu | 2/2 | | Mr. Yuen Man Chung | 2/2 | | Mr. Cheng Chun Chung | 2/2 | - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all directors have confirmed compliance[116] Audit and Governance Committee The unaudited interim results and report for the six months ended June 30, 2025, have been reviewed by the company's external auditor, KPMG, and the Board's Audit and Governance Committee - The interim results and report have been reviewed by external auditor KPMG and the Audit and Governance Committee[118][119] Changes of Directors' and Chief Executives' Information Pursuant to Rule 13.51B(1) of the Listing Rules Changes in directors' and chief executives' information since the 2024 annual report include Mr. Chow Tak Hee's retirement as independent non-executive director, Mr. Zhai Diqiang's appointment as Remuneration Committee Chairman and other external roles, Mr. Cheng Chun Chung's appointment to the Enterprise Support Scheme Vetting Committee, and Dr. Lee Nai Hsi's stepping down as Chairman of the Board of Trustees of Lee Woo Sing College, CUHK - Mr. Chow Tak Hee retired as an Independent Non-executive Director, effective after the 2025 Annual General Meeting[120] - Mr. Zhai Diqiang was appointed as Chairman of the Remuneration Committee and as an Independent Non-executive Director of Capital Strategic Investment Limited[120] - Mr. Cheng Chun Chung was appointed as a member of the Enterprise Support Scheme Vetting Committee under the Innovation and Technology Fund[120] - Dr. Lee Nai Hsi stepped down as Chairman of the Board of Trustees of Lee Woo Sing College, The Chinese University of Hong Kong[120] Other Information This section provides additional information on interim dividends, securities transactions, and share registrar closure dates Interim Dividend The Board declared an interim dividend of 3.7 HK cents per share for the six months ended June 30, 2025, consistent with the previous year, payable on October 8, 2025, to shareholders on record as of September 22, 2025, representing a 70.4% payout ratio of profit attributable to shareholders - An interim dividend of 3.7 HK cents per share for H1 2025 was declared, consistent with 2024[121][124] - The interim dividend is expected to be paid on October 8, 2025, with a payout ratio of 70.4%[121][124] Purchase, Sale or Redemption 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 its listed securities - Neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities during the period[122][125] Closure of Register of Members The company's share transfer registration will be suspended from September 22 to September 24, 2025, to determine eligibility for the interim dividend, with all transfer forms due by 4:30 p.m. on September 19, 2025 - Share transfer registration will be suspended from September 22 to September 24, 2025, to determine eligibility for the interim dividend[123][126] - The deadline for share transfer registration is 4:30 p.m. on September 19, 2025[123][126] Independent Review Report This section presents the independent review report on the interim financial information, confirming compliance with accounting standards Introduction KPMG has reviewed Tradelink Electronic Commerce Limited's interim financial report for the six months ended June 30, 2025, confirming its compliance with the Listing Rules of The Stock Exchange of Hong Kong Limited and HKAS 34 'Interim Financial Reporting' issued by the HKICPA, with directors responsible for its preparation and presentation - KPMG has reviewed the interim financial report[129][131] - The interim financial report complies with the Listing Rules and HKAS 34 'Interim Financial Reporting'[129][131] - Directors are responsible for the preparation and presentation of the interim financial report[129][131] Scope of review The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410, primarily involving inquiries of personnel responsible for financial and accounting matters, and analytical and other review procedures, with a scope significantly smaller than an audit, thus no audit opinion is expressed - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410[133][135] - The scope of the review is smaller than an audit, therefore no audit opinion is expressed[133][135] Conclusion Based on the review, KPMG found no matters suggesting that the interim financial report for the six months ended June 30, 2025, is not prepared, in all material respects, in accordance with HKAS 34 'Interim Financial Reporting' - No matters were found to suggest that the interim financial report was not prepared in material respects according to HKAS 34[134][136] Consolidated Statement of Profit or Loss (Unaudited) This section presents the unaudited consolidated statement of profit or loss, detailing the company's revenues, expenses, and net profit for the six months ended June 30, 2025 Consolidated Statement of Profit or Loss (Unaudited) (For the six months ended June 30, 2025) | Indicator | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 121,045 | 122,652 | | Procurement Costs | (10,938) | (10,202) | | Employee Costs | (54,306) | (55,832) | | Depreciation | (3,915) | (4,710) | | Other Operating Expenses | (17,635) | (17,956) | | Operating Profit | 34,251 | 33,952 | | Other Net Income | 12,887 | 11,793 | | Share of Results of an Associate | 228 | 258 | | Profit Before Tax | 47,366 | 46,003 | | Tax | (5,593) | (5,310) | | Profit for the Period | 41,773 | 40,693 | | Basic Earnings Per Share (HK cents) | 5.26 | 5.12 | | Diluted Earnings Per Share (HK cents) | 5.26 | 5.12 | Consolidated Statement of Profit or Loss and Other Comprehensive Income (Unaudited) This section provides the unaudited consolidated statement of profit or loss and other comprehensive income, showing the total comprehensive income for the six months ended June 30, 2025 Consolidated Statement of Profit or Loss and Other Comprehensive Income (Unaudited) (For the six months ended June 30, 2025) | Indicator | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Profit for the Period | 41,773 | 40,693 | | Exchange Differences on Translation of Financial Statements of Operations Outside Hong Kong | 25 | 14 | | Total Comprehensive Income for the Period | 41,798 | 40,707 | Consolidated Statement of Financial Position (Unaudited) This section presents the unaudited consolidated statement of financial position, outlining the company's assets, liabilities, and equity as of June 30, 2025 Consolidated Statement of Financial Position (Unaudited) (As of June 30, 2025) | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Non-current Assets | | | | Property, Plant and Equipment | 26,582 | 25,583 | | Goodwill | 9,976 | 9,976 | | Interests in an Associate | 5,502 | 5,274 | | Deferred Tax Assets | 639 | 606 | | Current Assets | | | | Trade Receivables and Contract Assets | 14,009 | 23,872 | | Other Receivables, Prepayments and Other Contract Costs | 20,229 | 17,265 | | Tax Recoverable | 191 | 509 | | Bank Deposits | 402,207 | 376,767 | | Cash and Cash Equivalents | 51,136 | 76,285 | | Current Liabilities | | | | Trade Creditors, Contract Liabilities and Other Payables | 150,600 | 150,170 | | Tax Payable | 5,048 | 2,401 | | Non-current Liabilities | | | | Provision for Long Service Payments | 2,104 | 2,104 | | Deferred Tax Liabilities | 2,611 | 2,275 | | Other Payables | 300 | 392 | | Net Assets | 369,808 | 378,795 | | Total Equity | 369,808 | 378,795 | Consolidated Statement of Changes in Equity (Unaudited) This section provides the unaudited consolidated statement of changes in equity, detailing movements in share capital, reserves, and retained earnings for the six months ended June 30, 2025 Consolidated Statement of Changes in Equity (Unaudited) (For the six months ended June 30, 2025) | Indicator | Share Capital (HK$ thousand) | Capital Reserve (HK$ thousand) | Exchange Reserve (HK$ thousand) | Other Reserve (HK$ thousand) | Retained Profits (HK$ thousand) | Total Equity (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | As at January 1, 2025 | 296,093 | 4,439 | (113) | 12 | 78,364 | 378,795 | | Dividends Approved in Prior Year | – | – | – | – | (50,857) | (50,857) | | Equity-settled Share-based Transactions | – | 72 | – | – | – | 72 | | Profit for the Period | – | – | – | – | 41,773 | 41,773 | | Other Comprehensive Income for the Period | – | – | 25 | – | – | 25 | | As at June 30, 2025 | 296,093 | 4,511 | (88) | 12 | 69,280 | 369,808 | Condensed Consolidated Cash Flow Statement (Unaudited) This section presents the unaudited condensed consolidated cash flow statement, summarizing cash flows from operating, investing, and financing activities for the six months ended June 30, 2025 Condensed Consolidated Cash Flow Statement (Unaudited) (For the six months ended June 30, 2025) | Indicator | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 43,359 | 37,093 | | Net Cash Used in Investing Activities | (17,052) | (95,972) | | Net Cash Used in Financing Activities | (51,456) | (50,660) | | Net Decrease in Cash and Cash Equivalents | (25,149) | (109,539) | | Cash and Cash Equivalents at January 1 | 76,285 | 276,335 | | Cash and Cash Equivalents at June 30 | 51,136 | 166,796 | | Analysis of Cash and Cash Equivalents | | | | Bank Deposits Maturing Within Three Months | 39,969 | 156,015 | | Cash and Bank Balances | 11,167 | 10,781 | Notes to the Unaudited Interim Financial Report This section provides detailed notes and explanations supporting the unaudited interim financial statements, covering accounting policies, segment information, and financial position details 1 Basis of preparation This interim financial report is prepared in accordance with applicable disclosure provisions of the Listing Rules of The Stock Exchange of Hong Kong Limited and HKAS 34 'Interim Financial Reporting' issued by the HKICPA, is unaudited but reviewed by KPMG, and adopts consistent accounting policies with the 2024 annual financial statements - The interim financial report complies with the Listing Rules and HKAS 34 'Interim Financial Reporting'[149][153] - The report is unaudited but has been reviewed by KPMG[154][159] - The accounting policies adopted in preparing the interim financial report are consistent with those used in the 2024 annual financial statements[150][153] 2 Changes in accounting policies The Group applied HKAS 21 (Revised) 'The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability' during the period, but these amendments had no material impact as the Group did not engage in foreign currency transactions where the currency was not exchangeable, and no new standards or interpretations not yet effective were adopted - HKAS 21 (Revised) was applied, but with no material impact[157][160] - No new standards or interpretations not yet effective were adopted during the period[158][161] 3 Revenue The Group's principal business involves providing Government Electronic Trading Services (GETS) for processing trade-related official documents, with all revenue falling within the scope of HKFRS 15 'Revenue from Contracts with Customers' - The principal business is providing Government Electronic Trading Services (GETS)[162][165] - All revenue falls within the scope of HKFRS 15 'Revenue from Contracts with Customers'[163][165] 4 Segment reporting The Group identifies three reportable segments: E-Commerce, Identity Management, and Other Services, with this section presenting revenue and segment profit by recognition timing and segment for the periods ended June 30, 2025 and 2024, and no geographical information is presented as the vast majority of revenue and operating profit are derived from Hong Kong operations - The Group has three reportable segments: E-Commerce, Identity Management, and Other Services[164][166][167] Revenue and Profit by Timing of Revenue Recognition and Segment (For the six months ended June 30, 2025) | Segment | Revenue at a Point in Time (HK$ thousand) | Revenue Over Time (HK$ thousand) | Revenue from External Customers (HK$ thousand) | Segment Profit (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | E-Commerce | 67,600 | 16,351 | 83,951 | 27,554 | | Identity Management | 4,413 | 17,218 | 21,631 | 960 | | Other Services | 8,204 | 7,259 | 15,463 | 9,652 | | Total | 80,217 | 40,828 | 121,045 | 38,166 | Revenue and Profit by Timing of Revenue Recognition and Segment (For the six months ended June 30, 2024) | Segment | Revenue at a Point in Time (HK$ thousand) | Revenue Over Time (HK$ thousand) | Revenue from External Customers (HK$ thousand) | Segment Profit (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | E-Commerce | 67,113 | 18,098 | 85,211 | 27,140 | | Identity Management | 3,157 | 19,085 | 22,242 | 2,393 | | Other Services | 8,326 | 6,873 | 15,199 | 9,129 | | Total | 78,596 | 44,056 | 122,652 | 38,662 | - The vast majority of the Group's revenue and operating profit are derived from Hong Kong operations, so no geographical information is presented[173] 5 Profit before taxation This section details the composition of profit before taxation for the six months ended June 30, 2025, including a breakdown of employee costs, depreciation, and other operating expenses Profit Before Taxation Components (For the six months ended June 30, 2025) | Item | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Employee Costs | | | | Defined Contribution Retirement Plan Contributions | 1,463 | 1,527 | | Equity-settled Share-based Payment Expenses | 72 | 38 | | Salaries, Wages and Other Benefits | 52,771 | 54,267 | | Total Employee Costs | 54,306 | 55,832 | | Depreciation | | | | Owned Property, Plant and Equipment | 2,868 | 3,244 | | Right-of-use Assets | 1,047 | 1,466 | | Total Depreciation | 3,915 | 4,710 | | Other Operating Expenses | | | | Auditor's Remuneration | 669 | 657 | | Directors' Fees and Emoluments | 800 | 1,067 | | Equipment Management Fees | 2,460 | 2,451 | | Repair and Maintenance Expenses | 2,889 | 2,728 | | Office Lease and Utilities | 1,880 | 1,845 | | Consulting Fees | 2,140 | 1,436 | | Telecommunication Costs | 869 | 856 | | Promotion and Marketing Expenses | 322 | 260 | | Listing Expenses | 523 | 539 | | Legal and Professional Fees | 950 | 1,099 | | Service Fees Paid to Business Partners | 1,223 | 993 | | Impairment Loss on Trade Receivables and Contract Assets | 824 | 2,129 | | Others | 2,086 | 1,896 | | Total Other Operating Expenses | 17,635 | 17,956 | 6 Other net income This section outlines the components of other net income for the six months ended June 30, 2025, primarily comprising interest income and net foreign exchange gains/losses, with a positive impact from the reversal of foreign exchange losses to gains during the period Other Net Income (For the six months ended June 30, 2025) | Item | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Interest Income | 9,478 | 11,883 | | Net Foreign Exchange Gain/(Loss) | 3,409 | (90) | | Total | 12,887 | 11,793 | 7 Taxation This section details the tax components for the six months ended June 30, 2025, including current tax (Hong Kong Profits Tax) and deferred tax, with Hong Kong Profits Tax provision calculated at an estimated annual effective rate of 16.5% under the two-tiered profits tax regime Taxation (For the six months ended June 30, 2025) | Item | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Current Tax – Hong Kong Profits Tax | 5,290 | 5,346 | | Deferred Tax | 303 | (36) | | Income Tax Expense | 5,593 | 5,310 | - Hong Kong Profits Tax provision is calculated at an estimated annual effective tax rate of 16.5%[182][184] - The Company is subject to a two-tiered profits tax regime, with the first HK$2 million of assessable profits taxed at 8.25% and the remainder at 16.5%[183][184] 8 Dividends This section detailed dividends payable to ordinary equity holders for the six months ended June 30, 2025, including the declared interim dividend and the final dividend approved and paid for the previous financial year Dividends (For the six months ended June 30, 2025) | Item | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Interim Dividend of 3.7 HK cents per share Declared After the Interim Period | 29,401 | 29,401 | | Final Dividend of 6.4 HK cents per share for the Financial Year Ended December 31, 2024, Approved and Paid in the Subsequent Interim Period | 50,857 | 50,062 | - The interim dividend was not recognized as a liability at the end of the reporting period[186] 9 Earnings per share This section explains the calculation of basic and diluted earnings per share, which are identical at 5.26 HK cents due to the absence of potential dilutive shares - Basic earnings per share is calculated based on profit attributable to ordinary equity holders of the Company of HK$41,773,000 and the weighted average number of ordinary shares outstanding during the period of 794,634,000 shares[188][190] - As the Company has no potential dilutive shares, basic earnings per share is the same as diluted earnings per share, both at 5.26 HK cents[188][190] 10 Property, plant and equipment This section presents the net book value and movements of property, plant, and equipment as of June 30, 2025, including additions, disposals, and depreciation, with major items comprising leasehold improvements, platform hardware and software, and computer and office equipment Movements in Net Book Value of Property, Plant and Equipment (As of June 30, 2025) | Item | Property, Plant and Equipment (HK$ thousand) | Ownership Interests in Land and Buildings Held for Own Use (HK$ thousand) | Other Properties Leased for Own Use (HK$ thousand) | Total (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Net Book Value as at January 1, 2025 | 20,577 | 3,619 | 1,387 | 25,583 | | Additions | 4,960 | – | – | 4,960 | | Disposals | (46) | – | – | (46) | | Depreciation | (2,921) | (487) | (507) | (3,915) | | Net Book Value as at June 30, 2025 | 22,570 | 3,132 | 880 | 26,582 | 11 Deferred taxation This section discloses the components and movements of deferred tax assets and liabilities recognized in the consolidated statement of financial position, primarily arising from depreciation allowances in excess of related depreciation and credit loss provisions Movements in Deferred Tax Assets/(Liabilities) (As of June 30, 2025) | Item | Depreciation Allowances in Excess of Related Depreciation (HK$ thousand) | Credit Loss Provision (HK$ thousand) | Total (HK$ thousand) | | :--- | :--- | :--- | :--- | | As at January 1, 2025 | (2,275) | 606 | (1,669) | | (Charged to)/Credited to Profit or Loss | (336) | 33 | (303) | | As at June 30, 2025 | (2,611) | 639 | (1,972) | Deferred Tax Assets and Liabilities (As of June 30, 2025) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Deferred Tax Assets | 639 | 606 | | Deferred Tax Liabilities | (2,611) | (2,275) | | Net | (1,972) | (1,669) | 12 Trade receivables and contract assets This section provides details on trade receivables and contract assets as of June 30, 2025, including amounts net of loss allowance and an aging analysis of trade receivables, with all expected to be recovered within one year Trade Receivables and Contract Assets (As of June 30, 2025) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade Receivables, Net of Loss Allowance | 11,383 | 21,259 | | Contract Assets, Net of Loss Allowance | 2,626 | 2,613 | | Total | 14,009 | 23,872 | Aging Analysis of Trade Receivables (As of June 30, 2025) | Aging | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Less than One Month | 4,531 | 10,854 | | One to Three Months | 3,754 | 5,096 | | Three to Twelve Months | 3,098 | 5,309 | | Total | 11,383 | 21,259 | - All trade receivables and contract assets are expected to be recovered within one year[200][202] 13 Other receivables, prepayments and other contract costs This section states that all other receivables, prepayments, and other contract costs are expected to be recovered or recognized as expenses within one year - All other receivables, prepayments, and other contract costs are expected to be recovered or recognized as expenses within one year[203][207] 14 Trade creditors, contract liabilities and other payables This section details the composition of trade creditors, contract liabilities, and other payables as of June 30, 2025, including customer deposits, accrued expenses, and lease liabilities, with an aging analysis showing most trade creditors are due within one month Trade Creditors, Contract Liabilities and Other Payables (As of June 30, 2025) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade Creditors | 6,855 | 7,065 | | Customer Deposits Received | 97,763 | 100,151 | | Accrued Expenses and Other Payables | 23,774 | 31,289 | | Contract Liabilities | 21,315 | 10,551 | | Lease Liabilities | 1,193 | 1,506 | | Total | 150,900 | 150,562 | | – Non-current | 300 | 392 | | – Current | 150,600 | 150,170 | Aging Analysis of Trade Creditors (As of June 30, 2025) | Aging | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Less than One Month | 6,627 | 6,944 | | One to Three Months | 161 | 121 | | Over Three Months | 67 | – | | Total | 6,855 | 7,065 | - Customer deposits received are refundable on demand[212][215] 15 Equity-settled share-based transactions This section details the terms and conditions of the 2014 Share Option Scheme, including the number of options granted to directors, employees, and former employees, vesting conditions, and contractual life, with fair value calculated using the Black-Scholes model, and no new options granted during H1 2025 - The 2014 Share Option Scheme expired on May 8, 2024, but granted share options remain valid[214][216] - Share options typically vest over 12 months (25%), 24 months (50%), 36 months (75%), and 48 months (100%) from the grant date[219][223][227][231][235][239] - The fair value of share options is calculated using the Black-Scholes model, referencing historical volatility and expected dividends[240][243] - No new share options were granted during the six months ended June 30, 2025[242][244] 16 Share capital This section presents the issued and fully paid ordinary share capital as of June 30, 2025, noting that the company's ordinary shares have no par value under Section 135 of the Hong Kong Companies Ordinance and all ordinary shares have equal interests in the company's residual assets Share Capital (As of June 30, 2025) | Item | June 30, 2025 (thousand shares) | June 30, 2025 (HK$ thousand) | December 31, 2024 (thousand shares) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Ordinary Shares, Issued and Fully Paid | 794,634 | 296,093 | 794,634 | 296,093 | - The Company's ordinary shares have no par value, and all ordinary shares have equal interests in the Company's residual assets[248][252] 17 Capital commitments As of June 30, 2025, outstanding capital commitments not provided for in the financial statements amounted to HK$416,000, primarily for computer equipment procurement, a significant reduction from HK$1,936,000 at year-end 2024 Capital Commitments (As of June 30, 2025) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Capital Commitments | 416 | 1,936 | - Capital commitments are primarily related to the Group's procurement of computer equipment[249][253] 18 Charges on assets and contingent liabilities Under contract terms with the government, the Group obtained two bank guarantees totaling HK$2,176,000 for proper contract performance, secured by deposit charges, with no other asset charges - Two bank guarantees totaling HK$2,176,000 are secured by deposit charges to ensure the Group's performance[250][254] 19 Non-adjusting events after the reporting period Subsequent to the reporting period, the directors recommended an interim dividend of 3.7 HK cents per share for the six months ended June 30, 2025, amounting to HK$29,401,000, which was not recognized as a liability at the reporting period end - The directors recommended an interim dividend of 3.7 HK cents per share for the six months ended June 30, 2025, amounting to HK$29,401,000[251][255] - This dividend was not recognized as a liability at the end of the reporting period[251][255] Property Held for Own Use This section lists the property held by the company for its own use, including its address and approximate gross floor area Property Held for Own Use (As of June 30, 2025) | Address | Approximate Gross Floor Area (square feet) | | :--- | :--- | | 11th and 12th Floors, Block B, Regent Centre, 63 Wo Yi Hop Road, Kwai Chung, Hong Kong | 44,532 | Investor Relations and Key Dates This section provides important dates for investors, company listing information, and contact details for investor relations Financial Calendar This section provides key financial dates, including the period for suspension of share transfer registration and the interim dividend payment date Financial Calendar | Item | Date | | :--- | :--- | | Suspension of Register of Members | September 22, 2025 – September 24, 2025 (both days inclusive) | | Interim Dividend Payment Date | Expected to be paid on October 8, 2025 | Listings The company's shares have been listed on the Main Board of The Stock Exchange of Hong Kong Limited since October 28, 2005 - The Company's shares have been listed on the Main Board of The Stock Exchange of Hong Kong since October 28, 2005[262][264] 2025 Interim Report Printed English and Chinese versions of the 2025 Interim Report are available and can also be downloaded from the company's website and HKEXnews website - The 2025 Interim Report is available in English and Chinese versions for download on the company's website and HKEXnews website[263][265] Stock Code The company's stock code on The Stock Exchange of Hong Kong Limited is 536 - The Company's stock code is 536[264][266] Investor Relations The company encourages two-way communication with institutional and individual investors, providing detailed contact information for Ms. Winnie Wong, Vice President (Marketing & Corporate Communications) - The Investor Relations contact person is Ms. Winnie Wong, Vice President (Marketing & Corporate Communications)[264][266] Corporate Information This section provides essential corporate details, including the Board of Directors, Board Committees, senior management, and contact information Board of Directors This section lists the members of the company's Board of Directors, including the Chairman and Non-executive Directors, Non-executive Directors, Independent Non-executive Directors, and Executive Directors - The Board of Directors includes Dr. Lee Nai Hsi (Chairman and Non-executive Director), Dr. Lee Kwok Bun (Non-executive Director), Mr. Yuen Wing Sang (Non-executive Director), Mr. Zhai Diqiang (Independent Non-executive Director), Ms. Cheung Ho Ling (Independent Non-executive Director), Mr. Lam Suen Wu (Independent Non-executive Director), Mr. Yuen Man Chung (Executive Director and Chief Executive Officer), and Mr. Cheng Chun Chung (Executive Director and Chief Operating Officer)[267][268][269][270] - Mr. Chow Tak Hee retired as an Independent Non-executive Director on May 16, 2025[268][270] Board Committees This section lists the Board's committees and their members, including the Audit and Governance Committee, Remuneration Committee, and Nomination Committee, noting the dissolution of the Investment Committee on May 16, 2025 - Board committees include the Audit and Governance Committee, Remuneration Committee, and Nomination Committee[268][270] - The Investment Committee was dissolved on May 16, 2025[269][270] - Mr. Zhai Diqiang was appointed as Chairman of the Remuneration Committee[269][270] Senior Management This section lists the company's senior management, including Mr. Yuen Man Chung (Chief Executive Officer), Mr. Cheng Chun Chung (Chief Operating Officer) and Ms. Pang Kit Fong (Chief Financial Officer) - Senior management includes Mr. Yuen Man Chung (Chief Executive Officer), Mr. Cheng Chun Chung (Chief Operating Officer), and Ms. Pang Kit Fong (Chief Financial Officer)[271][272] Company Secretary The company secretary is Mr. Ho Kai Tak - The Company Secretary is Mr. Ho Kai Tak[271][272] Auditor The company's auditor is KPMG, a registered Public Interest Entity Auditor under the Accounting and Financial Reporting Council Ordinance - The auditor is KPMG[271][272] Bankers The company's bankers are Dah Sing Bank Limited and The Hongkong and Shanghai Banking Corporation Limited - The bankers are Dah Sing Bank Limited and The Hongkong and Shanghai Banking Corporation Limited[271][272] Registered Office The company's registered office is located at 11th and 12th Floors, Block B, Regent Centre, 63 Wo Yi Hop Road, Kwai Chung, Hong Kong - The registered office is located at 11th and 12th Floors, Block B, Regent Centre, 63 Wo Yi Hop Road, Kwai Chung, Hong Kong[272][273] Share Registrar The company's share registrar is Hong Kong Central Share Registry Limited, located at Rooms 1712–1716, 17th Floor, Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kong - The share registrar is Hong Kong Central Share Registry Limited[272][273]