盐城港(08310) - 2025 - 中期财报

Introduction and Definitions This section provides an overview of the GEM market characteristics and disclaimers, along with definitions of key terms used throughout the report to ensure clarity GEM Market Characteristics and Disclaimer This section outlines the characteristics of the GEM market, highlighting its role as a listing platform for SMEs, the associated higher investment risks, and disclaimers from HKEX and the Stock Exchange, while affirming directors' full responsibility for the report's accuracy - The GEM market serves as a listing platform for small and medium-sized enterprises, entailing relatively higher investment risks and potential for significant market volatility in securities[3] - Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited bear no responsibility for the contents of this report and explicitly disclaim liability for any loss arising from its contents[3] - The Company's directors jointly and individually assume full responsibility for this report, confirming that the information contained herein is accurate and complete in all material respects, without misleading or fraudulent elements[3] Definitions of Terms This section defines key terms used in the report, including company entities, committees, geographical regions, currencies, and relevant regulations, to ensure clear understanding of the content - The report defines 'the Company' as Yancheng Port International Co., Limited and 'the Group' as the Company and its subsidiaries[4] - 'The Period' refers to January 1, 2025, to June 30, 2025[5] - 'China/Mainland China' for the purpose of this report excludes Hong Kong, Macau Special Administrative Regions, and Taiwan[5] Financial Summary and Condensed Consolidated Financial Statements This section presents the Group's financial highlights and condensed consolidated financial statements, including comprehensive income, financial position, equity changes, and cash flows for the period Financial Highlights The Group faced significant challenges in the first half of 2025, with total revenue decreasing by 25.47% year-on-year, and both loss before tax and loss attributable to owners of the Company increasing substantially, leading to an expanded loss per share Financial Highlights for H1 2025 | Indicator | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 514,700 | 690,500 | -25.47% | | Loss Before Tax | (26,800) | (18,100) | +48.00% | | Loss Attributable to Owners of the Company | (26,900) | (17,800) | +51.71% | | Loss Per Share (HK Cents) | (2.09) | (1.38) | +51.45% | Condensed Consolidated Statement of Comprehensive Income The Group's revenue decreased by 25.47% year-on-year in H1 2025, with gross profit slightly increasing, but higher other losses and administrative expenses led to a 48.00% increase in loss before tax to HK$26,780 thousand, resulting in a loss for the period of HK$26,877 thousand Key Data from Condensed Consolidated Statement of Comprehensive Income | Indicator | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 514,654 | 690,507 | -25.47% | | Cost of Revenue | (513,268) | (689,223) | -25.53% | | Gross Profit | 1,386 | 1,284 | +7.94% | | Other (Losses)/Income | (4,354) | 1,802 | -341.62% | | Administrative Expenses | (13,742) | (9,929) | +38.40% | | Finance Costs | (10,070) | (11,251) | -10.49% | | Loss Before Tax | (26,780) | (18,094) | +48.00% | | Loss for the Period | (26,877) | (18,094) | +48.54% | | Loss Attributable to Owners of the Company | (26,941) | (17,758) | +51.71% | | Basic and Diluted Loss Per Share (HK Cents) | (2.09) | (1.38) | +51.45% | - Other (losses)/income shifted from a gain of HK$1,802 thousand in H1 2024 to a loss of HK$(4,354) thousand in H1 2025, primarily due to exchange losses[9][34] Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's current assets significantly increased, driven by higher trade and other receivables, but current liabilities also rose substantially, further expanding net current liabilities, while total assets less current liabilities and net liabilities both increased, reflecting challenging financial conditions Key Data from Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current Assets | 143,906 | 143,022 | +0.62% | | Current Assets | 516,003 | 174,486 | +195.73% | | Trade and Other Receivables | 510,337 | 169,518 | +201.05% | | Bank Balances and Cash | 5,666 | 4,968 | +14.05% | | Current Liabilities | 890,701 | 519,241 | +71.54% | | Trade and Other Payables | 763,815 | 365,829 | +108.80% | | Current Portion of Bank and Other Borrowings | 124,418 | 151,946 | -18.12% | | Net Current Liabilities | (374,698) | (344,755) | +8.68% | | Total Assets Less Current Liabilities | (230,792) | (201,733) | +14.40% | | Net Liabilities | (519,669) | (494,149) | +5.16% | | Total Deficit Attributable to Owners of the Company | (537,053) | (510,711) | +5.16% | - Trade and other receivables significantly increased from HK$169,518 thousand as of December 31, 2024, to HK$510,337 thousand as of June 30, 2025[12][14] - Trade and other payables substantially increased from HK$365,829 thousand as of December 31, 2024, to HK$763,815 thousand as of June 30, 2025[14] Condensed Consolidated Statement of Changes in Equity The Group's total deficit attributable to owners of the Company further expanded as of June 30, 2025, primarily due to the loss for the period and changes in exchange fluctuation reserve, increasing from HK$(510,711) thousand as of December 31, 2024, to HK$(537,053) thousand Key Data from Condensed Consolidated Statement of Changes in Equity | Indicator | June 30, 2025 (HK$ Thousand) | January 1, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Share Capital | 12,880 | 12,880 | | Share Premium | 201,419 | 201,419 | | Capital Reserve | (7,337) | (7,337) | | Exchange Fluctuation Reserve | (7,668) | (8,229) | | Statutory Reserve | 1,720 | 1,720 | | Other Reserves | (9,151) | (9,151) | | Accumulated Losses | (728,916) | (656,885) | | Total Deficit Attributable to Owners of the Company | (537,053) | (465,583) | | Non-controlling Interests | 17,384 | 18,600 | | Total Deficit | (519,669) | (446,983) | - The loss attributable to owners of the Company for the period was HK$26,941 thousand, leading to a further increase in accumulated losses[15] - Exchange differences arising from translation of overseas operations resulted in a HK$1,357 thousand gain in H1 2025, compared to a HK$4,484 thousand loss in H1 2024[15] Condensed Consolidated Statement of Cash Flows The Group's net cash used in operating activities significantly increased in H1 2025, while net cash used in investing activities slightly decreased, and financing activities shifted from a net outflow to a net inflow, primarily due to new advances from related companies, resulting in an increase in cash and cash equivalents at the end of the period Key Data from Condensed Consolidated Statement of Cash Flows | Indicator | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (75,537) | (40,409) | +86.93% | | Net Cash Used in Investing Activities | (610) | (1,990) | -69.35% | | Net Cash Generated From/(Used In) Financing Activities | 76,730 | (91,681) | +183.69% | | Net Increase/(Decrease) in Cash and Cash Equivalents | 583 | (134,080) | +100.43% | | Cash and Cash Equivalents at End of Period | 5,666 | 21,838 | -74.06% | - Net cash used in operating activities increased from HK$(40,409) thousand in H1 2024 to HK$(75,537) thousand in H1 2025, indicating increased pressure on operating cash flow[17] - Financing activities shifted from a net outflow of HK$(91,681) thousand in H1 2024 to a net inflow of HK$76,730 thousand in H1 2025, primarily due to new advances from related companies totaling HK$116,283 thousand[17] Notes to the Unaudited Interim Financial Statements This section provides detailed notes to the unaudited interim financial statements, covering company information, basis of preparation, segment details, revenue, expenses, and other financial disclosures Company Information The Company was incorporated in the Cayman Islands as an exempted limited liability company on September 13, 2011, with its principal place of business located in Kowloon, Hong Kong - The Company was incorporated in the Cayman Islands on September 13, 2011[18] - Its principal place of business is located at Unit 1009, International Trade Centre, 33 Wang Chiu Road, Kowloon Bay, Kowloon, Hong Kong[18] Basis of Preparation The interim financial statements are prepared in accordance with HKAS 34 "Interim Financial Reporting" issued by the HKICPA and applicable disclosure requirements of the GEM Listing Rules, applying the same accounting policies as the 2024 annual financial statements - The interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' and the GEM Listing Rules[19] - The accounting policies and methods of computation applied are consistent with those used in the audited annual financial statements for the year ended December 31, 2024[19] Adoption of New/Revised HKFRSs The adoption of new/revised HKFRSs had no significant impact on the Group's results and financial position for current and prior accounting periods, and no early adoption of standards not yet effective occurred - The adoption of new/revised HKFRSs had no significant impact on the Group's results and financial position for the current and prior accounting periods[20] - The Group has not early adopted any new/revised HKFRSs that have been issued but are not yet effective for the current period[20] Segment Information The Group is primarily divided into two operating segments: trading business and petrochemical products storage business, based on which resources are allocated and performance is assessed. In H1 2025, trading business revenue significantly decreased but segment results turned profitable, while storage business revenue slightly declined and losses expanded - The Group's principal operating segments are trading business (trading of petrochemical products and soybean products, provision of supply chain management services) and petrochemical products storage business (provision of petrochemical products storage services)[23] Operating Segments In H1 2025, trading business revenue decreased by 25.75% year-on-year, but segment results turned from loss to profit; petrochemical products storage business revenue decreased by 3.15% year-on-year, and segment losses expanded Operating Segment Revenue and Results | Indicator | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Trading Business | | | | | Revenue (from external customers) | 506,156 | 681,724 | -25.75% | | Segment Results | 709 | (1,435) | +149.41% | | Storage Business | | | | | Revenue (from external customers) | 8,498 | 8,783 | -3.25% | | Segment Results | (6,904) | (6,554) | +5.34% | | Total | | | | | Total Revenue | 514,654 | 690,507 | -25.47% | | Loss Before Tax | (26,780) | (18,094) | +48.00% | - As of June 30, 2025, trading business segment assets were HK$503,558 thousand, and storage business segment assets were HK$151,290 thousand[28] - As of June 30, 2025, trading business segment liabilities were HK$(570,149) thousand, and storage business segment liabilities were HK$(134,019) thousand[28] Geographical Segments The Group primarily operates in China, thus no geographical segment information is presented, with all revenue from external customers attributed to China - The Group primarily operates in China, and all revenue from external customers is attributable to China[31] Revenue The Group's revenue primarily derives from trading business and petrochemical products storage business, with trading business revenue decreasing by 25.75% year-on-year in H1 2025, while petrochemical products storage business revenue slightly declined by 3.25% Revenue by Category Analysis | Revenue Category | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue from Trading Business | 506,156 | 681,724 | -25.75% | | Revenue from Petrochemical Products Storage Business | 8,498 | 8,783 | -3.25% | | Total | 514,654 | 690,507 | -25.47% | Other (Losses)/Income The Group's other income turned from profit to loss in H1 2025, mainly due to exchange gains shifting to exchange losses, offsetting meager bank interest income and miscellaneous income Other (Losses)/Income Analysis | Item | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Bank Interest Income | 4 | 46 | -91.30% | | Exchange (Losses)/Gains | (4,362) | 1,753 | -348.89% | | Miscellaneous Income | 4 | 3 | +33.33% | | Total | (4,354) | 1,802 | -341.62% | - Exchange differences shifted from a HK$1,753 thousand gain in H1 2024 to a HK$4,362 thousand loss in H1 2025, which is the primary reason for the change from positive to negative in other (losses)/income[34] Loss Before Tax The Group's loss before tax for H1 2025 was HK$26,780 thousand, primarily impacted by cost of revenue, administrative expenses, and finance costs, with finance costs slightly decreasing but staff costs significantly increasing Key Components of Loss Before Tax | Item | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs | | | | | Interest on Borrowings (repayable within five years) | 2,049 | 2,368 | -13.47% | | Interest on Listed Credit-Enhanced Guaranteed Bonds | 7,041 | 8,876 | -20.67% | | Interest on Lease Liabilities | 35 | 7 | +400.00% | | Interest on Loan from Former Associate | 945 | – | N/A | | Total Finance Costs | 10,070 | 11,251 | -10.49% | | Other Items | | | | | Cost of Inventories | 505,552 | 681,436 | -25.81% | | Depreciation of Property, Plant and Equipment | 5,982 | 6,044 | -1.03% | | Depreciation of Right-of-Use Assets | 501 | 534 | -6.20% | | Staff Costs | | | | | Salaries, Allowances and Other Short-Term Benefits | 7,588 | 5,802 | +30.78% | | Contributions to Defined Contribution Plans | 2,073 | 1,457 | +42.28% | | Total Staff Costs | 9,661 | 7,259 | +33.09% | - Total staff costs increased by 33.09% from HK$7,259 thousand in H1 2024 to HK$9,661 thousand in H1 2025[35] Taxation The Group incurred an income tax expense of HK$97 thousand in H1 2025, mainly due to under-provision for PRC enterprise income tax in prior periods, with no income tax arising in Hong Kong and Cayman Islands jurisdictions - Hong Kong profits tax is calculated under a two-tiered profits tax regime, but no assessable profits were derived by the Company or its Hong Kong subsidiaries, thus no income tax arose[36] - PRC enterprise income tax is calculated at the prevailing rate of 25%[36] Income Tax Expense | Item | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | | :--- | :--- | :--- | | PRC Enterprise Income Tax - Under-provision in prior periods | 97 | – | | Total Income Tax Expense Recognized in Profit or Loss | 97 | – | Dividends The Board of Directors does not recommend the payment of any interim dividend for the current period, consistent with the prior corresponding period - The Board does not recommend the payment of any interim dividend for the period (2024: nil)[40] Loss Per Share The Group's basic loss per share for H1 2025 was 2.09 HK cents, an increase from 1.38 HK cents in H1 2024, with basic and diluted loss per share being the same due to the absence of potential dilutive ordinary shares Loss Per Share Calculation | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Loss Attributable to Owners of the Company (HK$ Thousand) | (26,941) | (17,758) | | Weighted Average Number of Ordinary Shares in Issue | 1,288,000,000 | 1,288,000,000 | | Basic Loss Per Share (HK Cents) | (2.09) | (1.38) | - Basic and diluted loss per share are the same as the Company had no potential dilutive ordinary shares during the period[42] Property, Plant and Equipment The Group acquired property, plant and equipment items at a cost of approximately HK$640,000 in H1 2025, an increase from the prior corresponding period, with no related assets disposed of during the period - During the period, the Group acquired property, plant and equipment at a cost of approximately HK$640,000, an increase from approximately HK$300,000 in H1 2024[43] - The Group did not dispose of any property, plant and equipment during the period or in H1 2024[43] Trade and Other Receivables As of June 30, 2025, the Group's trade and other receivables significantly increased by 201.05% to HK$510,337 thousand, primarily driven by third-party trade receivables; despite overdue amounts, management believes credit quality remains unchanged and amounts are fully recoverable Trade and Other Receivables | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Receivables - Third Parties | 456,851 | 117,029 | +290.37% | | Less: Loss Allowance | (3,514) | (3,514) | 0% | | Total Other Receivables | 57,000 | 56,003 | +1.78% | | Total | 510,337 | 169,518 | +201.05% | Ageing Analysis of Trade Receivables As of June 30, 2025, the vast majority of the Group's trade receivables were within 90 days, though some amounts remained overdue for over 365 days Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Not Credit Impaired - Within 90 days | 449,373 | 107,727 | | Not Credit Impaired - Over 365 days | 3,964 | 5,788 | | Credit Impaired - Over 365 days | 3,514 | 3,514 | | Total | 456,851 | 117,029 | - The Group grants a maximum credit period of 90 days to its trade debtors[46] Credit Risk of Trade Receivables As of June 30, 2025, the Group had HK$3,964 thousand in trade receivables overdue for over 365 days but not impaired, which management believes are fully recoverable, and no collateral is held Summary of Trade Receivables Credit Risk | Status | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Not Credit Impaired - Not Past Due | 449,373 | 107,727 | | Not Credit Impaired - Past Due Over 365 days | 3,964 | 5,788 | | Credit Impaired - Past Due Over 365 days | 3,514 | 3,514 | | Total | 456,851 | 117,029 | - The Group had approximately HK$3,964 thousand (December 31, 2024: approximately HK$5,788 thousand) of trade receivables that were past due but not impaired, which management believes are fully recoverable[49] - The Group does not hold any collateral for these past due but not impaired balances[49] Amounts Due from a Related Company As of June 30, 2025, amounts due from related company Smart Port totaled HK$11 thousand, which are unsecured, interest-free, and without fixed repayment terms Amounts Due from Related Company | Related Company | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Smart Port | 11 | 11 | - These amounts are unsecured, interest-free, and without fixed repayment terms[52] Trade and Other Payables As of June 30, 2025, the Group's trade and other payables significantly increased by 108.80% to HK$763,815 thousand, primarily driven by substantial growth in trade payables and amounts due to related companies Trade and Other Payables | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Payables | 284,715 | 10,200 | +2691.32% | | Total Other Payables | 479,100 | 355,629 | +34.72% | | Total | 763,815 | 365,829 | +108.80% | Ageing Analysis of Trade Payables As of June 30, 2025, the Group's trade payables within 90 days or less significantly increased, while some amounts remained overdue for over 365 days Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | 90 days or less | 276,718 | 40 | | Over 365 days | 7,997 | 10,160 | | Total | 284,715 | 10,200 | Amounts Due to Related Companies As of June 30, 2025, amounts due to related companies totaled HK$435,804 thousand, a significant increase from December 31, 2024, primarily comprising amounts due to Dafeng Port Development Group, New Yu International Development Limited, and Dafeng Port (Hong Kong), most of which are unsecured, repayable on demand, and interest-free Amounts Due to Related Companies | Related Company | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Dafeng Port Development Group | 208,806 | 101,767 | | New Yu International Development Limited | 10,462 | 790 | | Dafeng Port (Hong Kong) | 216,536 | 212,403 | | Total | 435,804 | 314,960 | - The majority of amounts due to Dafeng Port Development Group are unsecured, repayable on demand, and interest-free, with some interest-bearing amounts repayable on specified dates[54] - Amounts due to New Yu International Development Limited and Dafeng Port (Hong Kong) are unsecured, repayable on demand, and interest-free[54] Bank and Other Borrowings As of June 30, 2025, the Group's total bank and other borrowings amounted to HK$411,868 thousand, a decrease from December 31, 2024, with the current portion decreasing and the non-current portion slightly declining, and most borrowings being unsecured but guaranteed or unsecured Total Bank and Other Borrowings | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Bank Loans | 10,940 | 42,315 | -74.16% | | Loans from Related Companies | 102,537 | 99,650 | +2.90% | | Listed Credit-Enhanced Guaranteed Bonds | 244,925 | 242,010 | +1.20% | | Total Bank and Other Borrowings | 411,868 | 442,975 | -7.02% | | Current Portion | 124,418 | 151,946 | -18.12% | | Non-current Portion | 287,450 | 291,029 | -1.23% | | Secured and Guaranteed | 19,339 | 25,871 | -25.25% | | Unsecured | 136,664 | 132,779 | +2.92% | | Unsecured but Guaranteed | 255,865 | 284,325 | -10.01% | - The current portion of bank loans significantly decreased from HK$42,315 thousand as of December 31, 2024, to HK$10,940 thousand as of June 30, 2025[55] - Listed credit-enhanced guaranteed bonds constitute the largest component of borrowings, primarily as non-current portions[55] Share Capital As of June 30, 2025, the Company's authorized and issued and fully paid share capital remained unchanged, maintaining at 10,000,000,000 shares and 1,288,000,000 shares, respectively Share Capital Structure | Type of Share Capital | Number of Shares | Par Value (HK$ Thousand) | | :--- | :--- | :--- | | Authorized Share Capital (HK$0.01 par value per share) | 10,000,000,000 | 100,000 | | Issued and Fully Paid (HK$0.01 par value per share) | 1,288,000,000 | 12,880 | - The Company's issued share capital remained unchanged during the period[57] Related Party Transactions The Group's related party transactions in H1 2025 included lease expenses, while H1 2024 also included sales to Yancheng Port Finished Oil Co., Ltd Related Party Transactions | Transaction Type | Related Party | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | | :--- | :--- | :--- | :--- | | Sales | Yancheng Port Finished Oil Co., Ltd. | 0 | 9,985 | | Lease Expenses | Dafeng Port Development Group | 114 | 105 | - In H1 2025, the Group made no sales to Yancheng Port Finished Oil Co., Ltd., compared to HK$9,985 thousand in sales in H1 2024[58] Key Management Personnel Remuneration The Group's total remuneration for key management personnel (including directors) in H1 2025 was HK$2,801 thousand, a significant increase from H1 2024 Key Management Personnel Remuneration | Remuneration Category | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Salaries, Allowances and Other Short-Term Employee Benefits | 2,385 | 690 | +245.65% | | Contributions to Defined Contribution Plans | 416 | 12 | +3366.67% | | Total | 2,801 | 702 | +299.00% | - Total key management personnel remuneration significantly increased from HK$702 thousand in H1 2024 to HK$2,801 thousand in H1 2025[59] Pledge of Assets/Bank and Other Facilities As of June 30, 2025, the Group's total utilized bank and other facilities amounted to HK$30,279 thousand, a decrease from December 31, 2024, with approximately HK$19.3 million in loans from a third party secured by petrochemical products storage equipment Bank and Other Facilities | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Total Bank and Other Facilities Granted to the Group | 54,700 | 85,056 | | Total Utilized Bank and Other Facilities | 30,279 | 68,186 | - As of June 30, 2025, loans of approximately HK$19.3 million from a third party were secured by petrochemical products storage equipment valued at approximately HK$32.3 million[60] Commitments As of June 30, 2025, the Group's capital expenditure commitments (contracted but not provided for, net of deposits paid) amounted to approximately HK$221,763 thousand, primarily related to the construction of property, plant and equipment, a slight increase from December 31, 2024 Capital Expenditure Commitments | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Capital Expenditure Commitments Contracted but Not Provided For, Net of Deposits Paid for Construction of Property, Plant and Equipment | 221,763 | 212,862 | - Capital commitments primarily relate to the construction of property, plant and equipment[79] Approval of Interim Financial Statements The interim financial statements were approved and authorized for issue by the Board of Directors on August 26, 2025 - The interim financial statements were approved and authorized for issue by the Board of Directors on August 26, 2025[62] Management Discussion and Analysis This section provides management's discussion and analysis of the Group's performance, financial position, and future outlook, covering macroeconomic conditions, business and financial reviews, liquidity, capital structure, and risk factors Macroeconomic Review The global economy in H1 2025 was complex and volatile with fragmented growth, while domestic economic momentum remained weak; the Company will prudently monitor global dynamics to mitigate adverse external impacts and ensure stable operations - The global economic situation in H1 2025 was complex and volatile, with fragmented growth and a challenging recovery[63] - Domestic economic endogenous growth momentum remained weak, and the recovery process faced numerous challenges[63] - The Company will maintain a cautious approach, continuously monitoring global economic dynamics to mitigate adverse external impacts and achieve stable operations[63] Business Review The Group primarily engages in trading and petrochemical products storage businesses; in H1 2025, trading business revenue significantly declined due to US-China tariff policies, while petrochemical products storage business revenue remained largely stable - During the period, the Group was primarily engaged in trading business and the provision of petrochemical products storage services[64] Trading Business The Group's trading business revenue in H1 2025 was approximately HK$506.2 million, a year-on-year decrease of about 25.75%, mainly due to reduced transaction volumes impacted by US-China tariff policies Trading Business Revenue | Indicator | H1 2025 (HK$) | H1 2024 (HK$) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Trading Business Revenue | 506,200,000 | 681,700,000 | -25.75% | - The decrease in trading business revenue was primarily due to the impact of US-China tariff policies, which led to reduced transaction volumes, thereby lowering trade scale and revenue[65] Petrochemical Products Storage Business The Group's petrochemical products storage business revenue in H1 2025 was approximately HK$8.5 million, a slight year-on-year decrease of about 3.25%, remaining largely consistent with the prior corresponding period Petrochemical Products Storage Business Revenue | Indicator | H1 2025 (HK$) | H1 2024 (HK$) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Petrochemical Products Storage Business Revenue | 8,500,000 | 8,800,000 | -3.41% | - This segment's revenue remained largely stable compared to H1 2024[66] Financial Review The Group's revenue decreased by 25.47% year-on-year in H1 2025, with a corresponding reduction in cost of revenue; gross profit margin improved to 0.27% due to new sales channel development and optimization, while finance costs remained largely stable, but both loss for the period and loss per share expanded Key Financial Performance Indicators | Indicator | H1 2025 (HK$) | H1 2024 (HK$) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 514,700,000 | 690,500,000 | -25.47% | | Cost of Revenue | 513,300,000 | 689,200,000 | -25.53% | | Gross Profit Margin | 0.27% | 0.19% | +42.11% | | Finance Costs | 10,100,000 | 11,300,000 | -10.53% | | Loss for the Period | 26,900,000 | 18,100,000 | +48.62% | | Loss Attributable to Owners of the Company | 26,900,000 | 17,800,000 | +51.12% | | Loss Per Share (HK Cents) | 2.09 | 1.38 | +51.45% | - The increase in gross profit margin was primarily due to the Group's proactive development of new sales channels and markets, optimization of existing channel structures, and enhanced bargaining power[68] Liquidity and Financial Resources As of June 30, 2025, the Group's net current liabilities expanded to HK$374.7 million, but the current ratio improved to 0.58; the gearing ratio improved from negative 89.6% to negative 79.3%, mainly due to a decrease in total interest-bearing borrowings Key Liquidity and Financial Resources Indicators | Indicator | June 30, 2025 (HK$) | December 31, 2024 (HK$) | Change (%) | | :--- | :--- | :--- | :--- | | Net Current Liabilities | 374,700,000 | 344,800,000 | +8.67% | | Amounts Due to Related Companies | 435,800,000 | 315,000,000 | +38.35% | | Current Ratio | 0.58 | 0.34 | +70.59% | | Total Interest-Bearing Borrowings | 411,900,000 | 443,000,000 | -7.02% | | Total Deficit | 519,700,000 | 494,100,000 | +5.18% | | Gearing Ratio | -79.3% | -89.6% | +11.50% | - The increase in the current ratio was a combined effect of increased trade and other receivables, bank balances and cash, trade and other payables, and a decrease in the current portion of bank and other borrowings[69] - The improvement in the gearing ratio was a combined effect of a 7.0% decrease in total interest-bearing borrowings and a 5.2% increase in total deficit[69] Capital Structure As of June 30, 2025, the Group's total deficit attributable to owners of the Company was approximately HK$537.1 million, an increase from December 31, 2024, with no changes in issued share capital during the period Key Capital Structure Data | Indicator | June 30, 2025 (HK$) | December 31, 2024 (HK$) | Change (%) | | :--- | :--- | :--- | :--- | | Total Deficit Attributable to Owners of the Company | 537,100,000 | 510,700,000 | +5.17% | - The Company's issued share capital remained unchanged during the period[70] Dividends The Board of Directors does not recommend the payment of any interim dividend for the current period, consistent with the prior corresponding period - The Board does not recommend the payment of any interim dividend for the period (2024: nil)[71] Pledge of Assets The Group utilizes bank financing and other borrowings to fund business expansion; as of June 30, 2025, approximately HK$19.3 million in third-party loans were secured by petrochemical storage equipment valued at approximately HK$32.3 million - The Group utilizes bank financing and other borrowings to fund business expansion[73] - As of June 30, 2025, approximately HK$19.3 million in third-party loans were secured by petrochemical storage equipment valued at approximately HK$32.3 million[73] Major Investments, Significant Acquisitions and Disposals During the period, the Company did not undertake any major investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures - During the period, the Company did not undertake any major investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures[74] Future Plans for Material Investments or Capital Assets and Expected Funding Sources As of June 30, 2025, the Group had no future plans for material investments or capital assets and will continue to monitor the industry and review its business expansion plans - As of June 30, 2025, the Group had no future plans for material investments or capital assets[75] - The Group will continue to closely monitor the industry and regularly review its business expansion plans[75] Outlook The Group anticipates slow and stable economic growth in H2 2025 and will adopt a prudent operating approach, seizing opportunities from Jiangsu Yancheng's integrated development, optimizing resources, and cautiously seeking investment opportunities - The Group anticipates slow and stable economic growth in H2 2025, with global inflation expectations continuing to moderate[76] - The Company will adopt a prudent approach to its existing businesses and actively seize opportunities from Jiangsu Yancheng's integrated development[76] - The Group will rationally reorganize and optimize resources, streamline and restructure resources, and cautiously seek investment opportunities[76] Foreign Currency Risk The Group's income and expenses are primarily denominated in HKD, RMB, and USD, with foreign currency risk arising from trade receivables, payables, listed credit-enhanced bonds, and cash denominated in RMB and USD; the Group monitors risk by adjusting timing of foreign currency receipts and payments and matching balances, without using derivative financial instruments for hedging - The Group's income and expenses are primarily denominated in HKD, RMB, and USD[77] - Foreign currency risk arises from trade and other receivables, payables, listed credit-enhanced bonds, and cash and bank balances denominated in RMB and USD[77] - The Group primarily monitors foreign exchange risk by adjusting the timing of foreign currency receipts and payments and matching foreign currency income and expenditure balances, without using derivative financial instruments for hedging[77] Employees and Remuneration Policy As of June 30, 2025, the Group had 89 employees, with total staff costs of approximately HK$9.7 million, a significant increase from the prior corresponding period; the Group reviews staff remuneration based on qualifications, experience, performance, and market levels, and provides relevant benefits Employees and Remuneration | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of Employees | 89 | 90 | | Total Staff Costs (HK$) | 9,700,000 | 7,300,000 | - The Group reviews remuneration for directors and employees based on qualifications, experience, performance, and market levels to maintain competitive compensation[78] Capital Commitments As of June 30, 2025, the Group had capital expenditure commitments (contracted but not provided for, net of deposits paid) of approximately HK$221,763 thousand, primarily for the construction of property, plant and equipment Capital Commitments | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Capital Expenditure Commitments Contracted but Not Provided For | 221,763 | 212,862 | - Capital commitments primarily relate to the construction of property, plant and equipment[79] Contingent Liabilities As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities (December 31, 2024: nil)[81] Mandatory Unconditional Cash Offer Dafeng Port (Hong Kong) acquired a 60% equity interest in Yancheng Port Overseas from Top Billion Limited, Xingya Investment Group Limited, and Jiangsu Huahai Investment Co., Ltd., triggering a mandatory unconditional cash offer to acquire all issued shares at HK$0.48 per share; during the offer period, 314,815,000 offer shares, representing approximately 24.44% of the then issued share capital, were validly accepted - Dafeng Port (Hong Kong) acquired a 60% equity interest in Yancheng Port Overseas for a total consideration of US$60 million (equivalent to HK$471 million)[82] - The offer price for the mandatory unconditional cash offer was HK$0.48 per share[82] - During the offer period, a total of 314,815,000 offer shares were validly accepted, representing approximately 24.44% of the Company's then issued share capital[82] Change of Company Name The Company's English name changed from "Dafeng Port Heshun Technology Company Limited" to "Yancheng Port International Co., Limited," and its Chinese name from "大丰港和顺科技股份有限公司" to "盐城港国际股份有限公司," effective March 6, 2025 - The Company's English name changed from 'Dafeng Port Heshun Technology Company Limited' to 'Yancheng Port International Co., Limited'[83] - The Chinese name changed from '大丰港和顺科技股份有限公司' to '盐城港国际股份有限公司'[83] - The change of name became effective on March 6, 2025[83] Changes in Directors and Board Committee Composition During the period and up to the date of this announcement, several changes occurred in the Board and Board committee composition, including the resignation of multiple non-executive directors, the appointment of Mr. Ji Yaosheng as Executive Director and Chief Executive Officer, and adjustments to the Chairman of the Board, Chairman of the Nomination Committee, and other committee members - Mr. Ji Longtao, Mr. Yang Yuexia, and Mr. Zhang Shukai resigned as non-executive directors[85] - Mr. Ji Yaosheng was appointed as an Executive Director and Chief Executive Officer of the Company, and as Chairman of the Nomination Committee and the Company's authorized representative under the GEM Listing Rules[85] - Mr. Zhao Liang resigned as Executive Director, Chairman of the Board, and other positions; Mr. Zhou Zhengxiong was appointed as a Non-executive Director, Chairman of the Board, and Chairman of the Nomination Committee; Mr. Lu Shuai was appointed as an Executive Director, Chairman of the Board, and Chairman of the Nomination Committee[85][89] Post-Balance Sheet Events Except as disclosed in this report, the Group had no significant post-balance sheet events up to the date of this report - Except as disclosed in this report, the Group had no significant post-balance sheet events subsequent to the period and up to the date of this report[88] Corporate Governance and Other Information This section details the Company's corporate governance practices and other relevant information, including directors' and substantial shareholders' interests, securities transactions, competing interests, and the audit committee's role Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company or any Associated Corporation As of June 30, 2025, no directors or chief executives of the Company held any interests or short positions in the shares, underlying shares, or debentures of the Company or any associated corporation that required disclosure under the SFO or GEM Listing Rules - As of June 30, 2025, no directors or chief executives of the Company held any disclosable interests or short positions in the shares, underlying shares, or debentures of the Company or any associated corporation[90] Convertible Securities, Warrants or Similar Rights As of June 30, 2025, the Group had not issued or granted any convertible securities, warrants, or other similar rights - As of June 30, 2025, the Group had not issued or granted any convertible securities, warrants, or other similar rights[91] Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares and Underlying Shares of the Company As of June 30, 2025, Yancheng Port Overseas, Dafeng Port (Hong Kong), Dafeng Port Development Group, Jiangsu Yancheng, and Yancheng Municipal People's Government were substantial shareholders of the Company, holding the majority of its issued share capital Shareholding of Substantial Shareholders | Shareholder Name | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage of the Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Yancheng Port Overseas | Beneficial Owner | 740,040,000 (L) | 57.46% | | Dafeng Port (Hong Kong) | Interest in Controlled Corporation / Beneficial Owner | 965,575,000 (L) | 74.97% | | Dafeng Port Development Group | Interest in Controlled Corporation | 965,575,000 (L) | 74.97% | | Jiangsu Yancheng | Interest in Controlled Corporation | 965,575,000 (L) | 74.97% | | Yancheng Municipal People's Government | Interest in Controlled Corporation | 965,575,000 (L) | 74.97% | - Dafeng Port (Hong Kong) is deemed to be interested in the Company's shares held by Yancheng Port Overseas[97] - Dafeng Port Development Group, Jiangsu Yancheng, and Yancheng Municipal People's Government are deemed to be interested in the Company's shares held by Yancheng Port Overseas and Dafeng Port (Hong Kong)[97] Purchase, Sale or Redemption of the Company's Listed Securities During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[95] Competing Interests Subsidiaries of the Company's controlling shareholder, Dafeng Port Development Group, engage in various goods trading businesses, posing potential competition to the Group's trading business; however, the Board believes this competitive threat is not significant due to differing product focus and target customers, and the Board operates independently of the controlling shareholder - Subsidiaries of the controlling shareholder, Dafeng Port Development Group (Yancheng Port Supply Chain and Yueda Logistics), engage in various goods trading businesses, posing potential competition to the Group's trading business[96] - The Board believes that the competitive threat is not significant as the Group and Dafeng Port Development Group focus on different product types and target different customers in the market[96] - The Board believes it can operate independently of Dafeng Port Development Group, as directors are prohibited from voting on matters involving conflicts of interest and are fully aware of their fiduciary duties[99] Code of Conduct for Securities Transactions by Directors The Company has adopted a code of conduct for directors' securities transactions, with terms no less exacting than those required by the GEM Listing Rules, and no breaches were identified during the period after specific inquiries - The Company has adopted a code of conduct for securities transactions by directors, with terms no less exacting than those required by the GEM Listing Rules[100] - Following specific inquiries with all directors, the Company is not aware of any non-compliance with the required standards of dealing and the code of conduct for securities transactions by directors during the period[100] Corporate Governance Code The Company has complied with all code provisions of the Corporate Governance Code, including the separation of Chairman and Chief Executive Officer functions, which was clarified upon Mr. Ji Yaosheng's appointment as CEO - The Corporate Governance Code stipulates that the roles of Chairman and Chief Executive Officer must be separate and not performed by the same individual[101] - Mr. Ji Yaosheng was appointed as an Executive Director and Chief Executive Officer of the Company on March 21, 2025, prior to which the Company had not appointed a Chief Executive Officer[101] - The Directors believe that the Company has complied with all code provisions of the Corporate Governance Code during the period[101] Audit Committee The Company's Audit Committee, comprising three independent non-executive directors, advises on external auditor appointment, reviews financial statements, financial reporting processes, and internal control and risk management systems; the Committee has reviewed the interim financial statements and found them compliant with applicable accounting standards and disclosure requirements - The Audit Committee comprises Mr. Liu Hanji (Chairman), Mr. Yu Xugang, and Ms. Xu Jingyang, all of whom are independent non-executive directors[102] - The Audit Committee's primary responsibilities include providing recommendations on the appointment and removal of external auditors, reviewing financial statements and related information, and overseeing the Group's internal control procedures and risk management systems[102] - The Audit Committee has reviewed the interim financial statements and considers them to be in compliance with applicable accounting standards, the GEM Listing Rules, and legal requirements, with appropriate disclosures made[102] Acknowledgement The Chairman of the Board, on behalf of the directors, extends sincere gratitude to all management, staff, business partners, customers, and shareholders for their support and contributions - The Chairman of the Board, on behalf of the directors, extends sincere gratitude to all management and staff for their dedicated contributions[104] - Appreciation is also extended to all business partners, customers, and shareholders for their continuous support[104] Board Composition As of the date of this report, the Board of Directors comprises three executive directors (including the Chairman and Vice Chairman), one non-executive director, and three independent non-executive directors Board Members | Category | Name | Position | | :--- | :--- | :--- | | Executive Directors | Mr. Lu Shuai | Chairman | | | Ms. Yuan Xin | Vice Chairman | | | Mr. Ji Yaosheng | | | Non-executive Director | Mr. Ding Anguang | | | Independent Non-executive Directors | Mr. Liu Hanji | | | | Mr. Yu Xugang | | | | Ms. Xu Jingyang | |