香港小轮(集团)(00050) - 2025 - 中期财报

Interim Results and Dividends The company reported a 19% decrease in basic profit but a 36% increase in profit attributable to shareholders and EPS, maintaining an interim dividend | Indicator | Six Months Ended June 30, 2025 (HKD) | Six Months Ended June 30, 2024 (HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Basic Profit | 69,000,000 | 85,000,000 | -19% | | Profit Attributable to Shareholders | 122,000,000 | 89,705,882 | +36% | | EPS | 0.34 | 0.25 | +36% | | Interim Dividend Per Share | 0.10 | 0.10 | 0% | Management Discussion and Analysis Management discusses business performance across property, ferry, and healthcare segments, along with market outlook and corporate governance Business Review The Group's operating profit is primarily from property rental income, bank interest, and revaluation gains, with property rental slightly down but new projects and healthcare services expanding - The Group's operating profit primarily derives from shop and mall rental income, bank deposit interest income, and revaluation gains on investment properties, with no borrowings[5] Property Development and Investment Business Overview | Indicator | Six Months Ended June 30, 2025 (HKD) | Change | | :--- | :--- | :--- | | Gross Rental Income from Shops and Malls | 60,000,000 | Decreased by 5% compared to the same period last year | | "The Avenue" Shop Occupancy Rate | 100% | | | "The Apex" Shop Occupancy Rate | 95% | | | "The Reach" Shop Occupancy Rate | 91% | | | "Green Code Plaza" Occupancy Rate | 87% | | | "Metro Harbour Plaza" Occupancy Rate | 80% | | - The Group will adjust and optimize its leasing strategy, introducing new brands and operators to maintain gross rental income and occupancy rates[6] - The "Grand Montara" joint venture development project has delivered 1,748 residential units to buyers, with some units arranged for rental to increase recurring income[7] - The residential portion of "The Horizon" redevelopment project has been approved for conversion to a youth hostel, operated by Tung Wah Group of Hospitals, and began collecting market rent at the end of June this year[8] Acquisition of "Grandland Centre (Tsuen Wan)" Shops | Indicator | Details | | :--- | :--- | | Acquisition Consideration | HKD 260 million | | Gross Floor Area | Approximately 12,720 sq ft | | Monthly Rental and License Fee Income (August 2025) | Approximately HKD 1.22 million | | Annualized Gross Rental Yield | Approximately 5.6% | | Intended Use | Investment | | Completion Date | Expected on or before September 30, 2025 | Ferry, Shipyard, and Related Business Performance | Indicator | Six Months Ended June 30, 2025 (HKD) | Same Period Last Year (HKD) | Change | | :--- | :--- | :--- | | Loss Recorded | 12,500,000 | 3,000,000 | Loss increased by 9,500,000 | | Main Reason for Increased Loss | Reduced revenue from "Bauhinia Victoria Harbour Cruise" due to a ferry engine replacement | | Improvement Measures | North Point to Kwun Tong dangerous goods vehicle ferry service has been approved for a price increase, with new fares effective April 12, 2025, expected to reduce losses in H2 | - Medical, healthcare, and beauty services offering specialized services at H Zentre in Tsim Sha Tsui showed steady performance and continued to record profits[12] - The Group's spinal and pain centers at "Mira Place" and "Metro Harbour Plaza" are gaining traction, with a physiotherapy center to be established at H Zentre, expected to operate within Q3 this year[12] AMOUR Medical Beauty Center Performance | Indicator | Six Months Ended June 30, 2025 (HKD) | Same Period Last Year (HKD) | Change | | :--- | :--- | :--- | | Revenue | 22,000,000 | 17,460,317 | Increased by 26% | | Prepaid Package Fees Received (not yet recognized in P&L) | 15,000,000 | | | - AMOUR Medical Beauty Center has expanded its leased area to provide an upgraded experience and accommodate increased client volume[13] - While healthcare and beauty businesses did not record net profit, EBITDA was positive overall[13] - The Group will continue to seek cooperation opportunities to expand its medical, healthcare, and beauty businesses[13] Prospects Global supply chains face US tariff impacts, but Hong Kong's trade hub status is mildly affected; property rental market is robust due to talent policies, and government initiatives are expected to drive economic growth - US tariff policies pose a significant impact on global supply chains, with Hong Kong's impact currently mild[14] Hong Kong Real Estate Market Index Changes | Indicator | As of End of June 2025 vs. End of December 2024 | | :--- | :--- | | Private Residential Property Price Index | Decreased by approximately 0.9% | | Private Residential Rental Index | Increased by approximately 1.6% | - Hong Kong government introduced various property market relaxation policies, but market recovery still needs time; private residential rental market benefits from talent policies and international education hub development, with strong demand[14] - Key government strategies include advancing the Northern Metropolis plan, developing the Hetao Shenzhen-Hong Kong Innovation and Technology Park, expanding the professional "Talent List," and simplifying talent admission scheme approval procedures[15] - The Hong Kong government continues to deepen its "Mega Event Economy" strategy, promoting large-scale international events, fireworks and drone shows, and carnivals to attract tourists and boost local retail, hotel, and catering sectors[15] - For the second half, the Group expects revenue primarily from property rental and bank deposit interest income, and will adjust leasing strategies, optimize tenant mix, and monitor the property market for investment opportunities[15] Acknowledgement Mr. Lau Yam Chuen retired as a non-executive director on May 30, 2025, and the Board expressed gratitude for his 37 years of service - Mr. Lau Yam Chuen retired as a non-executive director of the Company on May 30, 2025[17] - The Board expressed its sincere gratitude to Mr. Lau for his contributions to the Company over the past thirty-seven years[17] Financial Review The Group's revenue decreased by 5% due to reduced ferry business, but net profit after tax increased by 39%, with a stable capital structure and increased shareholder equity Group Financial Performance Overview | Indicator | Six Months Ended June 30, 2025 (HKD) | Same Period Last Year (HKD) | Change | | :--- | :--- | :--- | | Revenue | 199,000,000 | 210,000,000 | Decreased by approximately 5% | | Consolidated Net Profit After Tax | 121,000,000 | 87,000,000 | Increased by approximately 39% | - The decrease in revenue was primarily due to reduced income from the ferry, shipyard, and related businesses[18] Liquidity, Financial Resources, and Capital Structure | Indicator | June 30, 2025 (HKD) | December 31, 2024 (HKD) | Change | | :--- | :--- | :--- | | Shareholders' Equity | 7,100,000,000 | 7,029,702,970 | Increased by approximately 1% | | Current Assets | 2,332,000,000 | 3,866,733,000 | | | Current Liabilities | 395,000,000 | 228,010,000 | | | Current Ratio | 5.9 times | 16.96 times | Decreased | | Capital Structure | No change | No change | | | Bank Borrowings | None | None | | - The increase in shareholders' equity was mainly due to profit from property leasing and revaluation gains on investment properties, net of dividends paid[19] - The decrease in the current ratio was primarily due to a reduction in inventories[20] Staff and Remuneration Policy | Indicator | Details | | :--- | :--- | | Number of Employees (June 30, 2025) | Approximately 318 | | Remuneration Determination | Based on market trends and industry salary levels | | Year-end Bonus | Discretionary, based on individual employee performance | | Other Benefits | Medical insurance, retirement protection schemes, employee training, and education allowances | Other Information This section covers administrative matters, securities transactions, corporate governance, and director information changes Closure of Register of Members The company will close its register of members on September 11 and 12, 2025, to determine eligibility for the interim dividend for the six months ended June 30, 2025 - The register of members will be closed on Thursday, September 11, 2025, and Friday, September 12, 2025[24] - All share transfer documents must be lodged with the share registrar by 4:30 p.m. on Wednesday, September 10, 2025[24] Purchase, Sale or Redemption of the Company's Listed Securities During the review period, neither the company nor its subsidiaries purchased, sold, or redeemed any of its listed securities - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[25] Arrangements to Purchase Shares, Warrants, Options or Debentures No arrangements existed during the period for directors, chief executives, or their associates to benefit from purchasing the company's or other entities' securities - Neither the Company nor any of its subsidiaries participated in any arrangements during the period that would enable directors, chief executives, or their spouses/children under 18 to benefit from purchasing shares, options, debentures, or warrants of the Company or any other body corporate[26] Corporate Governance The company maintains high corporate governance standards and has complied with the Corporate Governance Code in Appendix C1 of the Listing Rules - The Company has complied with the code provisions of the Corporate Governance Code set out in Appendix C1 to the Listing Rules[27] Directors' Securities Transactions All directors complied with the Model Code for Securities Transactions by Directors of Listed Issuers during the period, and the company adopted similar guidelines for employees - All directors of the Company complied with the required standards set out in the Model Code for Securities Transactions by Directors of Listed Issuers for the six months ended June 30, 2025[28] - The Company has also adopted written guidelines for relevant employees that are no less exacting than those set out in the Model Code[28] Audit Committee The Audit Committee reviewed the Group's accounting principles, internal controls, and financial reporting, and had no disagreements with the unaudited interim financial report, which was reviewed by KPMG - The Audit Committee met in August 2025 to review the Group's accounting principles and practices, internal controls, and financial reporting matters[30] - The unaudited interim financial report for the six months ended June 30, 2025, was reviewed by the Audit Committee, with no disagreements[30] - The interim financial report was reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410[30] Remuneration Committee The Remuneration Committee met in May 2025 and is composed of three independent non-executive directors and two executive directors - The Remuneration Committee met in May 2025[31] - The Remuneration Committee currently comprises three independent non-executive directors and two executive directors[31] Forward-Looking Statements This interim report contains forward-looking statements based on current beliefs and expectations, but actual results may differ significantly due to uncontrollable risks and uncertainties - This interim report contains certain forward-looking statements based on the current beliefs, assumptions, and expectations of the Company's Board of Directors regarding the industry and markets in which it operates[32] - Actual results may differ materially from those expressed or implied by such forward-looking statements due to risks, uncertainties, and other factors beyond the Company's control[32] Changes in Directors' Information Dr. Lee Ka Yan was awarded the Gold Bauhinia Star (GBS) by the HKSAR Government on July 1, 2025 - Dr. Lee Ka Yan was awarded the Gold Bauhinia Star (GBS) by the Government of the Hong Kong Special Administrative Region on July 1, 2025[33] Disclosure of Interests This section details the interests and short positions of directors and substantial shareholders in the company's shares and related corporations as of June 30, 2025, in compliance with relevant regulations Directors' Interests in Shares This sub-section details the long positions of the company's directors in its shares as of June 30, 2025 Directors' Interests in the Company's Shares (Long Positions) | Director's Name | Personal Interests (Number of Shares) | Corporate Interests (Number of Shares) | Family Interests (Number of Shares) | Total Interests (Number of Shares) | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | :--- | :--- | | Dr. Lee Ka Yan | 150,000 | – | – | 150,000 | 0.04% | | Mr. Lee Ning | – | – | 119,017,090 | 119,017,090 | 33.41% | | Mr. Lee Ka Ho | 180,000 | – | – | 180,000 | 0.05% | | Mr. Au Siu Kee | – | – | – | – | 0.00% | | Mr. Ho Hau Cheung | 3,313,950 | – | – | 3,313,950 | 0.93% | | Ms. Wong Yu Pui | – | – | – | – | 0.00% | | Mr. Wu King Cheong | – | – | – | – | 0.00% | | Mr. Chan Wai Yan | – | – | – | – | 0.00% | - Mr. Lee Ning is deemed to be interested in 119,017,090 shares as his spouse is one of the discretionary beneficiaries of two discretionary trusts[34][40] - Mr. Lee Ning is also deemed to be interested in 5 shares (50%) of 2OK Company Limited and 70 shares (70%) of Wai Hung Company Limited[35][36][40] Substantial Shareholders and Others This sub-section lists the interests of substantial shareholders in the company's shares as of June 30, 2025 Substantial Shareholders' Interests in the Company's Shares | Substantial Shareholder | Number of Shares Held | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | | Henderson Land Development Company Limited | 119,017,090 | 33.41% | | Pataca Enterprises Limited | 119,017,090 | 33.41% | | Wiselin Investment Limited | 48,817,090 | 13.70% | | Henderson Investment Limited | 119,017,090 | 33.41% | | Hopkins (Cayman) Limited | 119,017,090 | 33.41% | | Rimmer (Cayman) Limited | 119,017,090 | 33.41% | | Riddick (Cayman) Limited | 119,017,090 | 33.41% | | Graf Investment Limited | 23,400,000 | 6.57% | | Mount Sherpa Limited | 23,400,000 | 6.57% | | Paillard Investment Limited | 23,400,000 | 6.57% | - The aforementioned interests are primarily held through Henderson Land Development Company Limited and its subsidiaries, Henderson Investment Limited and its subsidiaries, and related trusts[40] Interim Financial Report This section presents the unaudited interim financial statements, including the consolidated statement of profit or loss, comprehensive income, financial position, changes in equity, and cash flows, along with detailed notes Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, the Group's revenue slightly decreased, but profit for the period and profit attributable to shareholders significantly increased due to substantial investment property revaluation gains Key Data from Consolidated Statement of Profit or Loss | Indicator | Six Months Ended June 30, 2025 (HKD '000) | Six Months Ended June 30, 2024 (HKD '000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 199,158 | 210,743 | -5.5% | | Direct costs | (120,811) | (130,787) | -7.6% | | Other income | 28,154 | 34,824 | -19.2% | | Other net income | 14,734 | 6,318 | +133.2% | | Valuation gains on investment properties | 51,912 | 2,020 | +2479.8% | | Operating profit | 113,085 | 72,436 | +56.1% | | Profit before tax | 121,846 | 95,617 | +27.4% | | Taxation | (532) | (8,137) | -93.5% | | Profit for the period | 121,314 | 87,480 | +38.7% | | Profit attributable to equity holders of the Company | 121,860 | 89,596 | +36.0% | | Earnings per share (basic and diluted) | 0.34 | 0.25 | +36.0% | Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the Group's total comprehensive income significantly increased, primarily driven by profit for the period and net changes in financial asset revaluation reserves Key Data from Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | Six Months Ended June 30, 2025 (HKD '000) | Six Months Ended June 30, 2024 (HKD '000) | | :--- | :--- | :--- | | Profit for the period | 121,314 | 87,480 | | Net change in revaluation reserve for securities | 10,749 | 10,270 | | Total comprehensive income for the period | 132,063 | 97,750 | | Total comprehensive income attributable to equity holders of the Company | 132,609 | 99,866 | Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets significantly increased due to substantial growth in investment properties, while inventory decreased sharply due to reclassification, and shareholders' equity saw moderate growth Key Data from Consolidated Statement of Financial Position | Indicator | June 30, 2025 (HKD '000) | December 31, 2024 (HKD '000) | Change (%) | | :--- | :--- | :--- | :--- | | Assets | | | | | Investment properties | 4,285,490 | 2,495,790 | +71.7% | | Other property, plant and equipment | 77,958 | 60,015 | +29.9% | | Interests in associates | 5,574 | 5,430 | +2.6% | | Interests in joint ventures | 666,250 | 691,388 | -3.6% | | Other financial assets | 154,983 | 132,965 | +16.6% | | Inventories | 75,381 | 1,803,089 | -95.8% | | Trade and other receivables | 179,235 | 186,214 | -3.7% | | Cash and bank balances | 2,077,414 | 1,876,592 | +10.7% | | Liabilities | | | | | Trade and other payables | (368,852) | (206,577) | +78.5% | | Tax payable | (17,075) | (16,179) | +5.5% | | Deferred tax liabilities | (91,973) | (87,756) | +4.8% | | Equity | | | | | Total equity attributable to equity holders of the Company | 7,141,887 | 7,062,719 | +1.1% | | Total equity | 7,131,905 | 7,053,283 | +1.1% | - The significant increase in investment properties was primarily due to the reclassification of the residential portion of "The Horizon" to investment properties for youth hostel use, at a cost of HKD 1.728 billion[75] - The substantial decrease in inventories was mainly due to the reclassification of "completed properties held for sale" to investment properties[81] Consolidated Statement of Changes in Equity For the six months ended June 30, 2025, total equity attributable to equity holders of the Company increased to HKD 7.142 billion, driven by profit for the period and other comprehensive income, partially offset by dividends paid Key Data from Consolidated Statement of Changes in Equity (Attributable to Equity Holders of the Company) | Indicator | June 30, 2025 (HKD '000) | December 31, 2024 (HKD '000) | Change (HKD '000) | | :--- | :--- | :--- | :--- | | Balance at beginning/end of period | 7,062,719 | 6,970,577 | +92,142 | | Profit for the period | 121,860 | 89,596 | +32,264 | | Other comprehensive income | 10,749 | 10,270 | +479 | | Dividends approved in respect of prior financial year | (53,441) | (53,441) | 0 | | Balance at end of period/year | 7,141,887 | 7,062,719 | +79,168 | Condensed Consolidated Cash Flow Statement For the six months ended June 30, 2025, the Group generated significant net cash from investing activities, primarily from joint venture repayments and advances, and a decrease in bank deposits over three months, with positive operating cash flow and financing activities mainly for dividend payments Key Data from Condensed Consolidated Cash Flow Statement | Indicator | Six Months Ended June 30, 2025 (HKD '000) | Six Months Ended June 30, 2024 (HKD '000) | | :--- | :--- | :--- | | Net cash generated from/(used in) operating activities | 8,894 | (8,246) | | Net cash generated from investing activities | 980,705 | 54,118 | | Net cash used in financing activities | (57,640) | (57,435) | | Net increase/(decrease) in cash and cash equivalents | 931,959 | (11,563) | | Cash and cash equivalents at June 30 | 1,427,357 | 89,493 | - Net cash from investing activities primarily resulted from repayment of loans from joint ventures (HKD 34 million), advances received from joint ventures (HKD 180 million), and a decrease in bank deposits with maturities over three months (HKD 731 million)[49] Notes to the Unaudited Interim Financial Report These notes provide detailed explanations for the unaudited interim financial report, covering accounting policies, segment reporting, property valuations, and related party transactions Basis of Preparation The interim financial report is prepared in accordance with HKAS 34 and Listing Rules, using consistent accounting policies, and has been reviewed by KPMG - This interim financial report is prepared in accordance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 issued by the Hong Kong Institute of Certified Public Accountants[50] - The accounting policies adopted are consistent with those used in the 2024 annual financial statements, except for changes described in Note 2[50] - This interim financial report is unaudited but has been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410[51] Changes in Accounting Policies The Group applied HKAS 21 (Revised) regarding foreign exchange rates, which had no significant impact on the current or prior period's financial results - The Group has applied HKAS 21 (Revised), The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability to the interim financial report for the current accounting period[54] - This amendment did not have a significant impact on how the Group's results and financial position for the current or prior accounting periods are prepared or presented in the interim financial report[54] Segment Reporting The Group reports across five segments: property development, property investment, ferry/shipyard, medical/healthcare/beauty, and securities investment, with most revenue and profit from Hong Kong - The Group presents five reportable segments: property development, property investment, ferry, shipyard and related businesses, medical, healthcare and beauty services, and securities investment[57] - The vast majority of the Group's revenue and operating profit are derived from Hong Kong, thus no geographical segment information is provided[56] Segment Revenue (from External Customers, HKD '000) | Segment | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Property Investment | 82,195 | 87,045 | | Ferry, Shipyard and Related Businesses | 73,871 | 88,923 | | Medical, Healthcare and Beauty Services | 25,477 | 18,954 | | Securities Investment | 5,695 | 4,185 | | Others | 40,074 | 46,460 | | Total | 227,312 | 245,567 | Revenue Classification (HKD '000) | Service Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Ferry business revenue | 47,633 | 51,031 | | Shipyard business revenue | 23,064 | 32,248 | | Medical, healthcare and beauty services | 25,401 | 17,475 | | Property investment | 60,301 | 63,224 | | Securities investment | 4,343 | 1,329 | | Others | 38,416 | 45,436 | | Total | 199,158 | 210,743 | Segment Profit/(Loss) (HKD '000) | Segment | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Property Development | (6,039) | (2,966) | | Property Investment | 83,585 | 45,416 | | Ferry, Shipyard and Related Businesses | (12,510) | (2,975) | | Medical, Healthcare and Beauty Services | (3,785) | (17,087) | | Securities Investment | 15,374 | 4,500 | | Others | 36,460 | 45,548 | | Total | 113,085 | 72,436 | - Segment results for "Property Investment" include valuation gains on investment properties of HKD 51,912,000 (2024: HKD 2,020,000)[68] Other Net Income Other net income significantly increased, primarily driven by fair value changes of other financial assets designated at fair value through profit or loss Other Net Income Details (HKD '000) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Fair value changes of other financial assets designated at fair value through profit or loss | 11,269 | 3,394 | | Miscellaneous income | 2,892 | 2,632 | | Income from sale of parts | 487 | 296 | | Net exchange gains/(losses) | 15 | (4) | | Total | 14,734 | 6,318 | Profit Before Tax This section details the components deducted from or included in the calculation of profit before tax, such as amortization, inventory costs, depreciation, and interest income Items Deducted From/(Included In) Profit Before Tax (HKD '000) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Amortisation of land lease premiums | 685 | 685 | | Cost of inventories | 7,471 | 10,287 | | Depreciation – owned property, plant and equipment | 5,165 | 5,463 | | Depreciation – right-of-use assets | 3,722 | 3,474 | | Dividend income from listed investments | (4,343) | (1,329) | | Interest income | (39,957) | (48,418) | Taxation The Group's tax expense significantly decreased, primarily due to a reduction in deferred tax and current tax Taxation Details (HKD '000) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Current tax – Hong Kong Profits Tax | 1,520 | 3,427 | | Deferred tax | (988) | 4,710 | | Total | 532 | 8,137 | - Hong Kong Profits Tax provision is calculated at an estimated annual effective tax rate of 16.5%, with eligible subsidiaries applying a two-tiered tax rate (8.25% for the first HKD 2 million, 16.5% thereafter)[70] Dividends The interim dividend of HKD 0.10 per ordinary share was declared post-period end, while a final dividend of HKD 0.15 per share for the prior financial year was approved and paid during the interim period - An interim dividend of HKD 0.10 per ordinary share (totaling HKD 35,627,000) declared and paid after the period end was not recognized as a liability at the reporting date[72] - A final dividend of HKD 0.15 per ordinary share (totaling HKD 53,441,000) in respect of the prior financial year was approved and paid during the interim period[73] Earnings Per Share Basic and diluted earnings per share were HKD 0.34, calculated based on profit attributable to equity holders and issued shares, with no dilutive potential ordinary shares - Basic and diluted earnings per share were HKD 0.34, calculated based on profit attributable to equity holders of the Company of HKD 121,860,000 and 356,273,883 issued shares[74] - There were no potentially dilutive ordinary shares for the six months ended June 30, 2025, and 2024[74] Investment Properties and Other Property, Plant and Equipment The residential portion of "The Horizon" was reclassified to investment properties for youth hostel use, and all investment properties were revalued, resulting in a net gain - The residential portion of "The Horizon" has been approved by the Urban Renewal Authority for conversion to a youth hostel, and the related balance of HKD 1.728 billion has been reclassified to "Investment Properties"[75] - All investment properties were revalued as of June 30, 2025, with a net gain of HKD 51,912,000 recognized during the period[76] - For the six months ended June 30, 2025, the Group recognized an increase in right-of-use assets of HKD 21,713,000[77] Interests in Associates This section details the Group's interests in associates, including its share of net assets and receivables Interests in Associates Details (HKD '000) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Share of net assets | 376 | 973 | | Amounts due from associates | 12,423 | 11,634 | | Share of net liabilities | (431) | (383) | | Less: Impairment loss | (6,794) | (6,794) | | Total | 5,574 | 5,430 | Interests in Joint Ventures This section outlines the Group's interests in joint ventures, including its share of net assets and advances Interests in Joint Ventures Details (HKD '000) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Share of net assets | 547,900 | 539,035 | | Share of net liabilities | (150) | (147) | | Advances to joint ventures | 118,500 | 152,500 | | Total | 666,250 | 691,388 | - During the six months ended June 30, 2025, HKD 34,000,000 was recovered from joint ventures[80] Inventories Inventories significantly decreased due to the reclassification of completed properties held for sale to investment properties Inventories Details (HKD '000) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Properties under development for sale | 6,933 | 6,933 | | Completed properties held for sale | 61,076 | 1,788,719 | | Other operations | 7,372 | 7,437 | | Total | 75,381 | 1,803,089 | - The significant decrease in completed properties held for sale was primarily due to the reclassification as described in Note 9(a)[81] Trade and Other Receivables This section provides a breakdown of non-current and current trade and other receivables, including an aging analysis of trade receivables Non-Current Trade and Other Receivables (HKD '000) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Instalment receivables | 69,771 | 83,304 | | Other receivables and prepayments | 2,869 | – | | Total | 72,640 | 83,304 | Current Trade and Other Receivables (HKD '000) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade receivables (net of loss allowance) | 72,428 | 72,956 | | Other receivables and prepayments | 71,428 | 79,285 | | Amounts due from joint ventures | 35,379 | 33,973 | | Total | 179,235 | 186,214 | Aging Analysis of Trade Receivables (HKD '000) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current | 33,303 | 32,465 | | Overdue 1 to 3 months | 33,001 | 30,805 | | Overdue over 3 months but less than 12 months | 5,740 | 9,503 | | Overdue over 12 months | 384 | 183 | | Total | 72,428 | 72,956 | Cash and Bank Balances This section details the components of cash and bank balances, distinguishing between those in the consolidated statement of financial position and cash and cash equivalents in the cash flow statement Cash and Bank Balances Details (HKD '000) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Deposits with banks and other financial institutions | 2,007,042 | 1,799,001 | | Bank balances and cash | 70,372 | 77,591 | | Cash and bank balances in the consolidated statement of financial position | 2,077,414 | 1,876,592 | | Less: Bank deposits with maturities over three months | (650,057) | (1,381,194) | | Cash and cash equivalents in the condensed consolidated cash flow statement | 1,427,357 | 495,398 | Trade and Other Payables Total trade and other payables increased, including an unsecured, interest-free, and repayable-on-demand amount from a joint venture - Total trade and other payables amounted to HKD 368,852,000 (December 31, 2024: HKD 206,577,000)[46][89] - An amount of HKD 180,000,000 was received from a joint venture, which is unsecured, interest-free, and repayable on demand[89] Aging Analysis of Trade Payables (HKD '000) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current or due within one month | 99,910 | 118,912 | | Due after one month but within three months | 931 | 1,256 | | Due after three months but within twelve months | 4 | – | | Due over twelve months | 17 | 2 | | Total | 100,862 | 120,170 | Share Capital The issued and fully paid ordinary share capital remained unchanged during the period Issued and Fully Paid Ordinary Shares | Item | June 30, 2025 ('000 shares) | June 30, 2025 (HKD '000) | December 31, 2024 ('000 shares) | December 31, 2024 (HKD '000) | | :--- | :--- | :--- | :--- | :--- | | At beginning/end of period/year | 356,274 | 1,754,801 | 356,274 | 1,754,801 | Fair Value Measurement of Financial Instruments The Group's other financial assets are classified as Level 1 fair value measurements, with no significant differences between carrying amounts and fair values - The fair value measurements of the Group's other financial assets are classified as Level 1[93] - For the six months ended June 30, 2025, there were no transfers between Level 1 and Level 2 or transfers into or out of Level 3[93] - There are no significant differences between the carrying amounts of the Group's financial instruments, stated at cost or amortized cost, and their fair values[94] Contingent Liabilities The company has provided guarantees for credit arrangements to its wholly-owned subsidiaries, with a maximum liability of HKD 65,000, but directors do not expect any claims - The Company has issued guarantees to certain suppliers for credit arrangements granted to or by its wholly-owned subsidiaries[95] - At the reporting date, the maximum liability under guarantees issued by the Company for amounts owed by its wholly-owned subsidiaries to relevant parties was HKD 65,000 (December 31, 2024: HKD 57,000)[95] - The directors do not believe that any claims will be made against the Company under these guarantees[95] Significant Related Parties and Related Party Transactions This section details significant related party transactions, including development agreements, leasing arrangements, and management fees with Henderson Land Development and its associates, all compliant with Listing Rules - The Group entered into a development agreement with Henderson Land Development Company Limited ("Henderson Land") and its subsidiaries to share sales proceeds and development expenses for the residential portion of "Metro Harbour Plaza"[96] - The Group engaged a wholly-owned subsidiary of Henderson Land as the leasing and promotion agent for "Metro Harbour Plaza," incurring remuneration expenses of HKD 1,378,000 during the period[96] - The Group entered into an agreement with a subsidiary of Henderson Land to lease a shop in "Mira Place Tower One" for the sale of "Tong Chau Street Property," with no agency fees collected during the period[98][99] - A subsidiary of the Company entered into new lease agreements with a subsidiary of Miramar Hotel and Investment Company, Limited (an associate of Henderson Land) to lease "Property Two" and "Property Three," recognizing right-of-use assets of approximately HKD 20,954,000[104][105][106] - The total management and air-conditioning fees payable under the new lease agreements (excluding government rates) are capped at HKD 1,100,000 annually for the period from June 10, 2025, to December 31, 2025[107] - For the period ended June 30, 2025, the landlord charged the Group total management and air-conditioning fees of HKD 770,000[107] - Henderson Land is a substantial shareholder of the Company, with an interest in approximately 33.41% of the Company's total issued shares[109] - All related party transactions complied with the requirements of Chapter 14A of the Listing Rules[109][110] Non-Adjusting Events After the Reporting Period Post-period events include the declaration of an interim dividend and the acquisition of an investment property in Tsuen Wan for HKD 260 million - The directors declared an interim dividend after the reporting period (details in Note 7(a))[111] - On August 19, 2025, a wholly-owned subsidiary of the Group entered into a provisional agreement with an independent third-party vendor to acquire a property in Tsuen Wan for HKD 260 million for investment purposes[111] Review Report of the Independent Auditor KPMG reviewed the interim financial report, which is less extensive than an audit, and found no material non-compliance with HKAS 34 - KPMG has reviewed the Company's interim financial report[112] - A review is substantially less in scope than an audit conducted in accordance with Hong Kong Standards on Auditing, and consequently, no audit opinion is expressed[113] - Based on the review, nothing has come to the auditor's attention that causes them to believe the interim financial report is not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34[114]