亚洲能源物流(00351) - 2025 - 中期财报

Company Information Company Information Overview The report details the company's basic information, including board members, statutory representative, company secretary, committee compositions, principal bankers, auditor, share registrar, registered office, stock code, and website - Board composition includes executive directors (Mr. Peng Yue as Chairman), non-executive directors, and independent non-executive directors[4] - Principal bankers include CMB Wing Lung Bank Limited and OCBC Wing Hang Bank Limited[4] - The auditor is Fuyou Mazars CPA Limited[4] - The company's shares are listed on the Hong Kong Stock Exchange, stock code 351[5] Management Discussion and Analysis This section provides an in-depth review of the group's operational performance, financial position, and future outlook across its business segments Business Review The group's core operations include shipping and logistics, China telecom-related business, and e-commerce trading, with a terminated operation involving a vessel sale - Continuing operations comprise shipping and logistics, China telecom-related business, and e-commerce trading business[7] Shipping and Logistics Business Performance | Indicator | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | YoY Change (HK$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | 14,786 | 20,432 | (5,646) | -28% | | Gross Profit | 3,335 | 2,488 | 847 | +34% | Telecom-Related Business Performance | Indicator | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | YoY Change (HK$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | 8,877 | 2,437 | 6,440 | +264% | | Gross Loss | 88 | 52 | 36 | +69% | - E-commerce trading business commenced in Q4 2024, recording HK$5,952 thousand in revenue and HK$12 thousand in gross profit for H1 2025[11] - Discontinued operations involved the sale of a vessel for US$9,500,000 (approximately HK$74,100,000), completed in August 2024[12] Outlook The group maintains a cautious outlook on future business development, addressing challenges in shipping, telecom, and e-commerce through strategic adjustments and innovation - Shipping and logistics business faces new US tariffs and geopolitical dynamics, leading the group to reposition vessels and reduce operating costs[13] - Traditional SMS business within telecom-related operations faces significant challenges due to changes in customer operating environments and recent regulatory shifts, prompting the group to cautiously advance business development and expand new customer segments[14] - E-commerce trading business faces increasing competition in the China market, with the group aiming to maintain competitiveness through continuous innovation and product quality, while seeking suitable investment opportunities[16] Financial Review Continuing operations saw a 29% revenue increase and a 59% reduction in loss, driven by telecom and e-commerce growth, despite shifts in liquidity and leverage - Revenue from continuing operations was approximately HK$29,615 thousand, an increase of approximately 29% compared to the same period in 2024[17] - Loss from continuing operations was approximately HK$14,685 thousand, a decrease of approximately 59% compared to the same period in 2024[17] - Basic and diluted loss per share from continuing operations was 0.74 HK cents (H1 2024: 1.77 HK cents)[17] Financial Position Overview | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (HK$ thousand) | | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 67,709 | 62,772 | +4,937 | | Total Equity Attributable to Owners | 147,770 | 162,229 | -14,459 | | Net Current Assets | 79,197 | 90,537 | -11,340 | | Current Ratio | 884% | 1,139% | -255% | | Gearing Ratio | 7% | 6% | +1% | - The group holds an investment portfolio of listed shares and convertible bonds at fair value through profit or loss of approximately HK$15,268 thousand, representing approximately 10% of total assets[20] - As of June 30, 2025, the group had no pledged assets, contingent liabilities, or capital commitments[24][25] - The directors believe the group's foreign exchange risk is very low, thus no hedging instruments are employed[26] Employees As of June 30, 2025, the group had 19 full-time employees, with significantly reduced employee costs and established remuneration and benefit plans - As of June 30, 2025, the group had 19 full-time employees in Hong Kong and China, consistent with December 31, 2024[28] - Employee costs (including directors' emoluments) for the review period were approximately HK$5,348 thousand, a significant decrease from HK$14,530 thousand in the same period of 2024[28] - As of June 30, 2025, there were no outstanding share options granted under the 2018 Share Option Scheme[28] Corporate Governance and Other Information This section outlines the company's adherence to corporate governance principles, board composition, compliance, risk management, and disclosures on interests and transactions Corporate Governance The company maintains high corporate governance standards and complies with the code, with the CEO role currently vacant and its duties performed by other executive directors - For the six months ended June 30, 2025, the company has complied with the Corporate Governance Code[31] - The Chief Executive Officer position has been vacant since March 2009, with its duties performed by other executive directors of the company[31] Board of Directors The board composition remains unchanged since the 2024 annual report, with Ms. Liu Siyuan appointed as a member of the Nomination Committee - There have been no changes in the composition of the Board of Directors since the publication of the most recent 2024 annual report[32] - Ms. Liu Siyuan was appointed as a member of the Nomination Committee, effective June 24, 2025[33] Compliance with Model Code The company adopted the Model Code for directors' securities transactions, and all directors confirmed compliance during the review period - Following specific enquiries made to all directors, all directors confirmed their compliance with the Model Code throughout the review period[34] Risk Management and Internal Control The group has established appropriate risk management and internal control systems, with internal audit functions outsourced for assessment - The group has complied with Code Provision D.2 of the Corporate Governance Code by establishing appropriate and effective risk management and internal control systems[35] - Internal audit work has been outsourced to Shinewing Risk Management Limited[35] Disclosure of Interests This section discloses the interests of directors and substantial shareholders in the company's shares, with Mr. Peng Yue deemed to hold 70.18% through Dongyang Group Limited Directors' Interests in Shares and Underlying Shares (Long Position) | Name of Director | Capacity | Number of Shares Held | Approximate Percentage of Issued Shares | | :--- | :--- | :--- | :--- | | Mr. Peng Yue | Interest of controlled corporation | 1,400,000,000 | 70.18% | Substantial Shareholders' and Other Persons' Interests in Shares and Underlying Shares (Long Position) | Name | Capacity | Number of Shares and Underlying Shares Held | Approximate Percentage of Issued Shares | | :--- | :--- | :--- | :--- | | Dongyang Group Limited | Beneficial owner | 1,400,000,000 (L) | 70.18% | - Mr. Peng Yue holds the entire equity interest in Dongyang Group Limited, the controlling shareholder of the company, and is therefore deemed to have an interest in all shares beneficially owned by Dongyang Group Limited[41] Share Option Scheme The 2018 Share Option Scheme aims to incentivize talent, with limits on total shares granted (10%), unexercised options (30%), and individual grants (1%), and no outstanding options as of June 30, 2025 - The 2018 Share Option Scheme aims to incentivize or reward contributions to the group and/or enable the group to employ and retain capable employees and attract valuable talent[42] - Under the scheme, the total number of shares subject to options that may be granted shall not exceed 10% of the total issued shares as of the adoption date[44] - The maximum number of shares that may be issued upon exercise of all outstanding options shall not exceed 30% of the total issued shares from time to time[44] - The total number of shares issued and to be issued upon exercise of options granted and to be granted to any eligible participant in any 12-month period shall not exceed 1% of the company's total issued shares[44] - As of June 30, 2025, there were no outstanding share options granted under the 2018 Share Option Scheme[46] Related Party Transactions Details of related party transactions are in financial statement note 17, all constituting discloseable connected transactions under Listing Rules - Details of related party transactions are set out in note 17 to the condensed consolidated interim financial statements[47] - All related party transactions constitute connected transactions under the Listing Rules and have complied with the disclosure requirements under Chapter 14A of the Listing Rules[47] Review of Interim Results The unaudited consolidated interim results for the six months ended June 30, 2025, were reviewed by the Audit Committee with no accounting treatment disagreements - The unaudited consolidated interim results of the group for the six months ended June 30, 2025, have been reviewed by the Audit Committee[48] - The review found no disagreements with the accounting treatments adopted in the preparation of the condensed consolidated interim financial statements[48] Sufficiency of Public Float The company maintained a sufficient public float throughout the six months ended June 30, 2025, and up to the interim report date - The company maintained a sufficient public float for the six months ended June 30, 2025, and up to the date of this interim report[50] Purchase, Sale or Redemption of the Company's Listed Securities Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the review period - During the review period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[51] Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, continuing operations reported HK$29,615 thousand in revenue, HK$3,259 thousand gross profit, and a significantly reduced loss of HK$14,685 thousand Continuing Operations Financial Performance | Indicator | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | YoY Change (HK$ thousand) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | 29,615 | 22,869 | 6,746 | +29% | | Cost of Services | (26,356) | (20,433) | (5,923) | +29% | | Gross Profit | 3,259 | 2,436 | 823 | +34% | | Other Income | 1,608 | 363 | 1,245 | +343% | | Employee Costs | (5,348) | (14,530) | 9,182 | -63% | | Depreciation | (2,062) | (3,561) | 1,499 | -42% | | Legal and Professional Fees | (1,679) | (2,262) | 583 | -26% | | Motor Vehicle Expenses | (372) | (937) | 565 | -60% | | Other Administrative and Operating Expenses | (4,415) | (6,230) | 1,815 | -29% | | Fair Value Change of Financial Assets at FVTPL | (5,557) | (4,145) | (1,412) | +34% | | Loss on Disposal of Financial Assets at FVTPL | – | (6,769) | 6,769 | -100% | | Finance Costs | (119) | (263) | 144 | -55% | | Loss Before Tax from Continuing Operations | (14,685) | (35,898) | 21,213 | -59% | | Income Tax Expense | – | – | – | – | | Loss for the Period from Continuing Operations | (14,685) | (35,898) | 21,213 | -59% | - Profit for the period from discontinued operations: HK$0 thousand for H1 2025 (H1 2024: HK$13,686 thousand)[54] - Total comprehensive loss for the period: (HK$14,459) thousand for H1 2025 (H1 2024: (HK$22,272) thousand)[54] - Basic and diluted loss per share attributable to owners of the company: 0.74 HK cents (H1 2024: 1.08 HK cents)[56] Condensed Consolidated Statement of Financial Position As of June 30, 2025, the group's total assets less current liabilities were HK$147,770 thousand, with non-current assets primarily property, plant, and equipment, and current assets including receivables, financial assets, and cash Balance Sheet Overview | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (HK$ thousand) | | :--- | :--- | :--- | :--- | | Non-current Assets | 68,573 | 73,447 | -4,874 | | Current Assets | 89,294 | 99,248 | -9,954 | | Current Liabilities | 10,097 | 8,711 | +1,386 | | Net Current Assets | 79,197 | 90,537 | -11,340 | | Total Assets Less Current Liabilities | 147,770 | 163,984 | -16,214 | | Net Assets | 147,770 | 162,229 | -14,459 | | Total Equity | 147,770 | 162,229 | -14,459 | - Key current asset components: Bank balances and cash HK$67,709 thousand, financial assets at fair value through profit or loss HK$15,268 thousand, and trade and other receivables HK$6,317 thousand[57] Condensed Consolidated Statement of Changes in Equity For the six months ended June 30, 2025, total equity attributable to owners decreased from HK$162,229 thousand to HK$147,770 thousand, primarily due to a HK$14,685 thousand loss, partially offset by exchange differences Total Equity Movement | Indicator | January 1, 2025 (HK$ thousand) | June 30, 2025 (HK$ thousand) | Change (HK$ thousand) | | :--- | :--- | :--- | :--- | | Total Equity | 162,229 | 147,770 | -14,459 | | Loss for the Period | - | (14,685) | (14,685) | | Exchange Differences Arising from Translation of Overseas Operations | - | 226 | 226 | Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2025, net cash from operating activities was HK$7,218 thousand, with net increases in cash and cash equivalents of HK$4,934 thousand Cash Flow Overview | Indicator | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | Change (HK$ thousand) | | :--- | :--- | :--- | :--- | | Net Cash From Operating Activities | 7,218 | 5,987 | +1,231 | | Net Cash Used in Investing Activities | (508) | (3,199) | +2,691 | | Net Cash Used in Financing Activities | (1,776) | (1,520) | (256) | | Net Increase in Cash and Cash Equivalents | 4,934 | 1,268 | +3,666 | | Cash and Cash Equivalents at End of Period | 67,502 | 14,982 | +52,520 | Notes to the Condensed Consolidated Interim Financial Statements This section provides detailed explanatory notes supporting the condensed consolidated interim financial statements, covering accounting policies, segment information, and financial instrument disclosures 1. Company Information Asia Energy Logistics Group Limited is a Hong Kong-incorporated, HKEX-listed company primarily engaged in shipping and logistics, telecom-related, and e-commerce trading businesses - The company is a limited liability company incorporated in Hong Kong, with its shares listed on The Stock Exchange of Hong Kong Limited[63] - The group is engaged in shipping and logistics business, telecom-related business, and e-commerce trading business[63] 2. Basis of Preparation The condensed consolidated interim financial statements are prepared in accordance with HKAS 34 and Listing Rules, to be read in conjunction with the 2024 annual financial statements - The condensed consolidated interim financial statements have been prepared in accordance with Hong Kong Accounting Standard 34 Interim Financial Reporting issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[64] - The condensed consolidated interim financial statements should be read in conjunction with the annual consolidated financial statements of the company for the year ended December 31, 2024[64] 3. Adoption of New/Revised Hong Kong Financial Reporting Standards The group adopted HKAS 21 (Amendment) "Lack of Exchangeability" effective January 1, 2025, with no significant impact on the interim financial statements - The group first adopted HKAS 21 (Amendment) "Lack of Exchangeability", effective January 1, 2025[68] - The adoption of these amendments had no significant impact on the group's condensed consolidated interim financial statements[68] 4. Revenue Total continuing operations revenue was HK$29,615 thousand, comprising chartering, telecom services, and e-commerce trading, with the latter two falling under HKFRS 15 Continuing Operations Revenue Components | Revenue Source | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Chartering income | 14,786 | 20,432 | | Telecommunication services income | 8,877 | 2,437 | | E-commerce trading income | 5,952 | – | | Total | 29,615 | 22,869 | - Telecommunication services income and e-commerce trading income are revenue from contracts with customers within the scope of HKFRS 15[70] 5. Other Income Other income from continuing operations totaled HK$1,608 thousand, primarily from bank interest, net exchange gains, and reimbursements from charterers Other Income Components | Income Source | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Bank interest income | 1,207 | 56 | | Net exchange gain | 8 | 61 | | Reimbursement from charterers | 134 | 74 | | Miscellaneous income | 259 | 172 | | Total | 1,608 | 363 | 6. Segment Information The group's reporting segments include continuing operations (shipping, telecom, e-commerce) and a terminated shipping operation, with key customer contributions detailed - The group's reporting segments include continuing operations (shipping and logistics, telecom-related business, e-commerce trading business) and discontinued operations (shipping and logistics)[72][74] 6.1. Continuing Operations In H1 2025, continuing operations saw a HK$1,140 thousand loss in telecom, HK$1,329 thousand profit in shipping, and HK$12 thousand profit in e-commerce Segment Results (H1 2025) | Segment | Revenue (HK$ thousand) | (Loss) Profit (HK$ thousand) | | :--- | :--- | :--- | | Telecommunication-related business | 8,877 | (1,140) | | Shipping and logistics | 14,786 | 1,329 | | E-commerce trading business | 5,952 | 12 | | Total Continuing Operations | 29,615 | 201 | 6.2. Discontinued Operations Discontinued operations relate to the sale of the M/V Clipper Panorama, with the memorandum of agreement signed in May 2024 and delivery in August 2024 - Discontinued operations refer to the disposal of a vessel (M/V Clipper Panorama), which was completed in August 2024[74] 6.3. Geographical Information As of June 30, 2025, non-current assets (excluding vessels) in Hong Kong and China were HK$4,213 thousand and HK$25 thousand, respectively, with no geographical segment data for shipping due to its transnational nature - As of June 30, 2025, non-current assets (excluding vessels) located in Hong Kong and China were approximately HK$4,213 thousand and HK$25 thousand, respectively[82] - Due to the transnational nature of shipping and logistics services, it is not meaningful to allocate operating results by specific geographical segments, hence no geographical segment information is presented[82] 6.4. Major Customers In H1 2025, Customers A, B, and C significantly contributed to revenue across shipping, telecom, and e-commerce, while Customer D was a major contributor to shipping in H1 2024 Revenue from Major Customers (10% or more of group revenue) | Customer | Business Segment | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | :--- | | Customer A | Shipping and logistics | 14,786 | Not applicable | | Customer B | Telecommunication-related business | 6,120 | Not applicable | | Customer C | E-commerce trading business | 5,952 | Not applicable | | Customer D | Shipping and logistics | Not applicable | 20,432 | 7. Finance Costs Finance costs for continuing operations primarily consisted of lease liabilities interest, decreasing to HK$119 thousand in H1 2025 from HK$233 thousand in H1 2024 Finance Costs Components | Cost Type | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Interest on other borrowings | – | 30 | | Interest on lease liabilities | 119 | 233 | | Total | 119 | 263 | 8. Loss Before Tax from Continuing Operations Loss before tax from continuing operations was HK$14,685 thousand, primarily impacted by depreciation, employee costs, and write-offs of other receivables and intangible assets Key Deductions | Item | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 2,892 | 2,457 | | Depreciation of right-of-use assets | 1,488 | 2,985 | | Employee costs | 5,348 | 14,530 | | Write-off of other receivables | 1,241 | – | | Write-off of intangible assets | 1,000 | – | 9. Income Tax Hong Kong profits tax is 16.5% and China corporate income tax is 25%, with no income tax provision made due to the absence of estimated taxable profits or tax losses - Hong Kong profits tax is calculated at 16.5%, and China corporate income tax is calculated at 25%[89] - No income tax provision was made as the group entities had no estimated assessable profits or incurred tax losses for the six months ended June 30, 2025, and 2024[89] 10. (Loss) Earnings Per Share Basic and diluted loss per share from continuing operations was 0.74 HK cents, with no dilutive potential ordinary shares outstanding - Basic and diluted loss per share from continuing operations was 0.74 HK cents (H1 2024: 1.77 HK cents)[93] - Basic and diluted earnings per share from discontinued operations was zero HK cents (H1 2024: 0.69 HK cents)[93] - Diluted loss per share for the six months ended June 30, 2025, and 2024, was the same as basic loss per share, as there were no potential dilutive ordinary shares outstanding during the period[93] 11. Dividends No dividends were paid, declared, or recommended by the directors for the six months ended June 30, 2025, or 2024 - The company did not pay or declare any dividends for the six months ended June 30, 2025, and 2024[94] - The directors do not recommend the payment of any dividends for the six months ended June 30, 2025, and 2024[94] 12. Trade and Other Receivables As of June 30, 2025, total trade and other receivables significantly decreased to HK$6,317 thousand, driven by a reduction in other receivables and amounts from a regulated securities broker Total Trade and Other Receivables | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade receivables | 3,090 | 407 | | Other receivables | 3,470 | 4,383 | | Deposits | 1,005 | 1,005 | | Deposits for vessel operations | – | 354 | | Other receivables from a regulated securities broker | – | 9,903 | | Prepayments | 89 | 936 | | Less: Loss allowance for other receivables | (1,337) | (1,337) | | Total | 6,317 | 15,651 | 12.1. Trade Receivables As of June 30, 2025, all trade receivables were aged between 30 and 90 days from the invoice date - As of June 30, 2025, all trade receivables were aged within 30 to 90 days from the invoice date[97] 12.2. Other Receivables As of June 30, 2025, HK$1,337 thousand of other receivables were interest-bearing at 10% p.a., unsecured, and over 240 days overdue, with the remainder interest-free and repayable on demand - As of June 30, 2025, a balance of HK$1,337 thousand was interest-bearing at 10% per annum, unsecured, and overdue for more than 240 days[98] - The remaining balance is interest-free, unsecured, and repayable on demand[98] 13. Financial Assets at Fair Value Through Profit or Loss As of June 30, 2025, financial assets at FVTPL totaled HK$15,268 thousand, comprising HK-listed securities and convertible bonds, with the latter valued using a binomial option pricing model Financial Assets Components | Asset Type | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Listed securities in Hong Kong | 6,988 | 12,397 | | Convoy convertible bonds | 8,280 | 8,428 | | Total | 15,268 | 20,825 | 13.1. Listed Securities in Hong Kong The fair value of listed securities in Hong Kong is measured based on quoted market prices (Level 1 input) in accordance with HKFRS 13 - The fair value of listed securities in Hong Kong is measured based on quoted market prices (Level 1 input) in accordance with HKFRS 13[100] 13.2. Convoy Convertible Bonds The Convoy convertible bonds, with a principal of HK$8,000 thousand and 2% annual interest, are valued using a binomial option pricing model (Level 3 fair value) and saw a HK$148 thousand fair value decrease in H1 2025 - The Convoy convertible bonds have a principal amount of HK$8,000 thousand, bear interest at 2% per annum, mature on September 26, 2026, and have an initial conversion price of HK$0.1 per share[102] - The fair value of the Convoy convertible bonds is estimated by an independent professional valuer using a binomial option pricing model and is classified as a Level 3 fair value measurement[102] - The fair value change of Convoy convertible bonds for H1 2025 was a decrease of HK$148 thousand[103] - Sensitivity analysis indicates that changes in Convoy's share price, risk-free rate, discount rate, and expected volatility would all impact the fair value[106] 14. Bank Balances and Cash As of June 30, 2025, total bank balances and cash were HK$67,709 thousand, comprising bank cash, cash on hand, and fixed deposits with original maturities over three months Bank Balances and Cash Components | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Cash on hand | 1 | 445 | | Bank cash | 67,501 | 62,123 | | Accounted for in condensed consolidated statement of cash flows | 67,502 | 62,568 | | Fixed deposits with original maturity over three months | 207 | 204 | | Total | 67,709 | 62,772 | - All bank cash earns interest at floating rates based on daily bank deposit rates[108] 15. Trade and Other Payables As of June 30, 2025, total trade and other payables increased to HK$6,637 thousand, primarily due to a rise in trade payables, partially offset by a decrease in accrued expenses Trade and Other Payables Components | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade payables | 3,756 | 701 | | Accrued expenses and other payables | 2,043 | 3,770 | | Receipts in advance | 838 | 878 | | Total | 6,637 | 5,349 | 15.1. Trade Payables Trade payables generally have a credit period of up to 90 days, with all balances as of June 30, 2025, aged within 30 days from the invoice date - The credit period for trade payables is generally within 90 days[113] - As of June 30, 2025, all trade payables were aged within 30 days from the invoice date[113] 16. Share Capital As of June 30, 2025, total issued shares were 1,994,975,244, with share capital at HK$1,981,158 thousand, consistent with December 31, 2024 Share Capital | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of Shares | 1,994,975,244 | 1,994,975,244 | | HK$ thousand | 1,981,158 | 1,981,158 | 17. Related Party Transactions and Balances Key management personnel (directors) remuneration decreased to HK$2,509 thousand in H1 2025, with no consulting fees paid to a former director's company, and these transactions are exempt from Listing Rule disclosure Key Management Personnel (Directors) Remuneration | Item | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Salaries and other benefits | 2,491 | 2,847 | | Contributions to defined contribution retirement plans | 18 | 18 | | Total | 2,509 | 2,865 | - Consulting fees payable to Genesis Financial Public Relations Limited (beneficially owned by Mr. Ng Kin, a former director of certain subsidiaries of the company) were zero HK$ thousand (H1 2024: HK$300 thousand)[116] - The related party transactions disclosed in note 17(b) to the condensed consolidated interim financial statements constitute connected transactions exempt from the reporting, announcement, and independent shareholders' approval requirements under the Listing Rules[116] 18. Fair Value Measurement of Financial Instruments The group categorizes financial assets measured at fair value into three levels, with HK-listed securities (Level 1) at HK$6,988 thousand and convertible bonds (Level 3) at HK$8,280 thousand as of June 30, 2025 - Fair value hierarchy definitions: Level 1 (quoted prices in active markets for identical assets or liabilities), Level 2 (inputs other than quoted prices that are observable, either directly or indirectly), Level 3 (inputs for the asset or liability that are not based on observable market data)[119] Fair Value of Financial Assets | Level | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Level 1 (Listed securities in Hong Kong) | 6,988 | 12,397 | | Level 3 (Convoy convertible bonds) | 8,280 | 8,428 | - For the six months ended June 30, 2025, the change in Level 3 fair value was a decrease of HK$148 thousand[120] Glossary This section defines key terms and abbreviations used throughout the report, such as "Company," "Board," "Corporate Governance Code," and "Listing Rules," to aid reader comprehension - This section aims to provide definitions for key terms and abbreviations used in the report[122][124][125] - Glossary includes terms such as "Company," "Board," "Corporate Governance Code," and "Listing Rules"[122][124][125]