长虹佳华(03991) - 2025 - 中期财报

Company Information This section details the company's registration, principal business locations, share listing, and board composition Company Basic Information This section outlines Changhong Jiahua Holdings Limited's registered office, principal place of business, share registrar, principal bankers, exchange, and contact details - The company is registered in Bermuda, with its principal place of business in Hong Kong, and its shares are listed on the Main Board of the Hong Kong Stock Exchange, stock code 3991[3][4] Board of Directors and Committees This section lists the company's board members, including executive and independent non-executive directors, and the composition of the Audit, Remuneration, and Nomination Committees - Mr. Zhu Jianqiu serves as the Chairman of the Board and President[5] - Mr. Chan Ming Shun is the Chairman of the Audit Committee and Chairman of the Remuneration Committee, while Mr. Zhu Jianqiu is the Chairman of the Nomination Committee[5] Chairman's Report This report reviews the group's business performance amidst global economic challenges and outlines future strategic directions Business Review Despite global economic slowdowns and increased geopolitical conflicts, the Group achieved stable growth in revenue and profit attributable to shareholders by focusing on smart distribution services and strategic collaborations - The global economic outlook for the first half of 2025 deteriorated, while China's economy maintained steady progress, with the Group facing challenges from an unfavorable operating environment and industry changes[8] - The Group steadfastly implemented its "Ecological Value Creation, High-Quality Growth Partner" strategy, building on smart distribution services and accelerating its shift towards an ecological mindset, leveraging digital intelligence technology to develop diverse capabilities and professional services[8] - The Group deepened collaboration with ecological partners, strategically expanding into cloud applications, metaverse, security, low-altitude economy, and digital marketing to cultivate new competitive advantages[8] 2025 First Half Key Financial Indicators Comparison | Indicator | 2025 First Half (million HKD) | 2024 First Half (million HKD) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 21,168.69 | 19,286.17 | +9.76% | | Overall Gross Profit Margin | 3.07% | 3.34% | -0.27 percentage points | | Profit Attributable to Shareholders | 181.19 | 164.48 | +10.16% | | Basic Earnings Per Share | 7.05 HK cents | 6.40 HK cents | +0.65 HK cents | - The increase in R&D expenses was primarily due to an increase in R&D personnel; the rise in distribution and selling expenses was mainly due to increased operating costs for e-commerce business; and the decrease in finance costs was primarily due to lower bank loan interest rates[9] 2025 First Half Revenue and Profit by Business Segment | Business Segment | Revenue (million HKD) | Year-on-Year Change | Profit (million HKD) | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | | ICT Consumer Product Distribution | 8,471.25 | -0.28% | 129.55 | +5.62% | | ICT Enterprise Product Distribution | 8,378.27 | +23.67% | 221.86 | -8.08% | | Other Businesses | 4,319.18 | +7.53% | 45.10 | +21.23% | Outlook For the second half of 2025, the Group anticipates continued global economic recovery challenges but expects China to increase policy support, focusing on technological innovation and digital intelligence to expand new ecosystems - Global economic recovery faces pressure in the second half of 2025, while China will strengthen fiscal and monetary policy coordination, expand domestic demand, and develop new quality productive forces[12] - The Group will uphold its core as a technology service enterprise, driven by innovation and digital intelligence technology, with smart distribution services as its foundation, to expand into new industry ecosystems such as cloud applications, metaverse, security, and low-altitude economy[12] Management Discussion and Analysis This section provides an in-depth review of the group's financial performance, liquidity, and operational aspects for the reporting period Financial Summary The Group maintained a sound financial and liquidity position in the first half of 2025, with both revenue and profit growing, despite a relatively high net gearing ratio 2025 First Half Financial and Liquidity Position | Indicator | Amount (million HKD) | | :--- | :--- | | Total Interest-Bearing Borrowings | 2,749.99 | | Cash and Bank Balances | 3,371.76 | | Net Current Assets | 2,976.75 | | Net Gearing Ratio | 3.59 times | - For the six months ended June 30, 2025, revenue was approximately 21,168.69 million HKD, representing a 9.76% year-on-year increase; profit was approximately 181.19 million HKD, a 10.16% year-on-year increase[19] - Total comprehensive income was approximately 241.06 million HKD, primarily due to fluctuations in the RMB exchange rate[19] Asset Pledges As of June 30, 2025, the Group had not mortgaged or pledged any of its fixed assets - During the reporting period, the Group had no fixed asset pledges[16] Exchange Rate Fluctuation Risk and Related Hedging The Group primarily transacts in RMB, HKD, and USD, facing minimal foreign exchange risk due to the RMB's small fluctuation range and the HKD's peg to the USD, thus no hedging is currently undertaken - The Group faces extremely low foreign exchange risk, with its primary currencies being RMB, HKD, and USD[17] - As of June 30, 2025, the Group had not undertaken any foreign currency investment hedging[18] Treasury Policy The Group's cash and bank deposits are denominated in RMB, HKD, and USD, and due to minimal foreign exchange risk, no derivative instruments are used for hedging - The Group's cash and bank deposits are denominated in RMB, HKD, and USD, and no derivative instruments are used to hedge foreign currency risk[21] Transfer of Financial Assets The Group transfers financial assets by endorsing bills receivable to settle trade payables and discounting bills receivable with banks to raise cash, believing significant risks have been transferred, thus related assets and liabilities are not recognized in the consolidated financial statements - The Group transfers financial assets by endorsing and discounting bills receivable, believing that significant risks have been transferred and the risk of default is low[22] Maximum Exposure to Risk from Unrecovered Endorsed and Discounted Bills Receivable with Recourse | Item | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Settlement of Trade and Other Payables | 74,177 | 132,139 | | Discounted Bills for Cash Generation | 2,003,174 | 1,803,800 | | Total | 2,077,351 | 1,935,939 | Material Investments and Future Plans During the reporting period, the Group did not undertake any material investments, acquisitions, or disposals, nor did it have any significant capital commitments or future investment plans - There were no material investments, acquisitions, disposals, or future capital asset plans during the reporting period[23][24] Events After Reporting Period No events with a material impact on the Group occurred from the end of the reporting period up to the date of this report - No material events occurred after the reporting period[25] Employment and Remuneration Policies As of June 30, 2025, the Group's total number of employees decreased, with remuneration policies based on performance, experience, and industry practice, alongside retirement benefits Employee Headcount Comparison | Date | Total Employees | | :--- | :--- | | June 30, 2025 | 1,359 employees | | June 30, 2024 | 1,552 employees | - The Group remunerates employees based on their performance, experience, and industry practice, providing Mandatory Provident Fund or social old-age insurance and housing provident fund for Hong Kong and PRC employees[26] Dividends The Board does not recommend any dividend payment for the first half of 2025, but the 2024 final dividend was paid on June 20, 2025 - The Board does not recommend the payment of any dividend for the six months ended June 30, 2025[27] - A final dividend of HKD 0.05 per share for the year ended December 31, 2024, totaling approximately 128.53 million HKD, was paid on June 20, 2025[27] Other Information This section covers corporate governance, directors' and major shareholders' interests, and other statutory disclosures Purchase, Sale and Redemption of the Company's Listed Securities During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the reporting period, neither the Company nor its subsidiaries engaged in the purchase, sale, or redemption of listed securities[29] Compliance with Corporate Governance Code The Company has complied with all provisions of the Corporate Governance Code, with a deviation where the Chairman and Chief Executive roles are combined, but the Board believes sufficient balance of power exists - The Company complies with the Corporate Governance Code, but the roles of Chairman and Chief Executive are combined by Mr. Zhu Jianqiu, deviating from Code Provision C.2.1[30] - The Board believes that with three independent non-executive directors and all major decisions discussed by the Board and senior management, there is sufficient balance of power and safeguards[30] Directors' Securities Transactions Upon enquiry, all Directors confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers during the reporting period - All Directors confirmed compliance with the Model Code for Securities Transactions by Directors as set out in Appendix C3 of the Listing Rules[31] Audit Committee and Review of Interim Results The Audit Committee has reviewed the Group's results for the six months ended June 30, 2025, but the financial information has not been reviewed or audited by the Company's auditors - The Audit Committee has reviewed the financial information in this interim results report[32] - The financial information in this report has not been reviewed or audited by the Company's auditors[32] Remuneration Committee The Remuneration Committee is responsible for reviewing and recommending remuneration policies for Directors and senior management, with members including Mr. Chan Ming Shun (Chairman), Mr. Zhu Jianqiu, and Mr. Meng Qingbin - The Remuneration Committee is responsible for reviewing remuneration policies for Directors and senior management, with Mr. Chan Ming Shun as Chairman[33] Nomination Committee The Nomination Committee is responsible for formulating nomination policies and making recommendations to the Board on director nominations, appointments, and succession, with members including Mr. Zhu Jianqiu (Chairman), Mr. Chan Ming Shun, and Mr. Gao Xudong - The Nomination Committee is responsible for formulating nomination policies and making recommendations on director nominations, appointments, and succession, with Mr. Zhu Jianqiu as Chairman[34] Directors' and Chief Executive's Interests and Short Positions in the Company This section discloses the interests of Directors and the Chief Executive in the Company's shares as of June 30, 2025 Directors' Interests in the Company's Ordinary Shares (as of June 30, 2025) | Director Name | Capacity | Number of Ordinary Shares Interested (L) | Approximate Percentage of Interest | | :--- | :--- | :--- | :--- | | Mr. Zhu Jianqiu | Beneficial Owner | 115,165,762 | 7.92% | | Mr. Zhao Qilin | Beneficial Owner | 750,000 | 0.05% | | Ms. Su Huiqing | Beneficial Owner | 34,589,636 | 2.38% | Directors' Rights to Subscribe for Shares or Debentures During the reporting period, no Director or their associates were granted or exercised any rights to subscribe for shares or debentures of the Company - During the reporting period, no Director or their associates were granted or exercised any rights to subscribe for the Company's shares or debentures[37] Major Shareholders' Interests in the Company This section discloses the interests of major shareholders in the Company's shares or related shares as of June 30, 2025 Major Shareholders' Long Positions in the Company's Shares (as of June 30, 2025) | Major Shareholder Name | Capacity | Share Class | Number of Shares Interested (L) | Approximate Percentage of Interest in Relevant Class | | :--- | :--- | :--- | :--- | :--- | | Sichuan Changhong Electric Co., Ltd. | Controlled Corporation Interest | Ordinary Shares | 874,650,000 | 60.13% | | | | Preference Shares | 1,115,868,000 | 100.00% | | Changhong (Hong Kong) Trading Co., Ltd. | Controlled Corporation Interest and Beneficial Owner | Ordinary Shares | 874,650,000 | 60.13% | | | | Preference Shares | 1,115,868,000 | 100.00% | | Anjian Holdings Limited | Beneficial Owner | Ordinary Shares | 858,650,000 | 59.03% | | | | Preference Shares | 1,115,868,000 | 100.00% | | Sichuan Chuan Investment Asset Management Co., Ltd. | Beneficial Owner | Ordinary Shares | 83,009,340 | 5.70% | | Sichuan Energy Development Group Co., Ltd. | Controlled Corporation Interest | Ordinary Shares | 83,009,340 | 5.70% | - Sichuan Changhong Holdings is the single largest shareholder of Sichuan Changhong, holding approximately 23.22% equity, and has actual control over Sichuan Changhong's board of directors[40] - Sichuan Energy Development Group Co., Ltd. is deemed to have an interest in the shares held by Chuan Investment Asset Management through equity transfer[40] Directors' and Controlling Shareholders' Interests in Competing Businesses Except for Sichuan Changhong primarily engaged in wholesale of consumer home electronics, no other Directors or controlling shareholders and their close associates had any business or interest competing with the Group during the reporting period - Sichuan Changhong primarily engages in the wholesale business of "Changhong" brand consumer home electronic products[41] - During the reporting period, no other Directors or controlling shareholders and their close associates had any business or interest that competed with the Group's business[41] Changes in Directors' Information During the reporting period, there were no changes in Directors' information required to be disclosed under Rule 13.51B(1) of the Listing Rules - No changes in Directors' information occurred during the reporting period[42] Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income This statement presents the group's financial performance, including revenue, profit, and other comprehensive income for the period Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (for the six months ended June 30, 2025) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Revenue | 21,168,691 | 19,286,174 | | Cost of Sales | (20,519,053) | (18,642,526) | | Gross Profit | 649,638 | 643,648 | | Other Income | 43,349 | 35,462 | | Research and Development Expenses | (17,602) | (12,226) | | Administrative Expenses | (89,527) | (85,480) | | Net Impairment Loss on Trade Receivables | (42,949) | (33,972) | | Net Exchange Loss | (11,098) | (14,300) | | Distribution and Selling Expenses | (210,179) | (208,466) | | Finance Costs | (104,942) | (145,580) | | Profit Before Tax | 216,690 | 179,086 | | Income Tax Expense | (35,498) | (14,602) | | Profit for the Period Attributable to Owners of the Company | 181,192 | 164,484 | | Total Comprehensive Income for the Period Attributable to Owners of the Company | 241,058 | 134,936 | | Basic and Diluted Earnings Per Share (HK cents) | 7.05 | 6.40 | Condensed Consolidated Statement of Financial Position This statement provides a snapshot of the group's assets, liabilities, and equity at the end of the reporting period Condensed Consolidated Statement of Financial Position (as of June 30, 2025) | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Non-current Assets | | | | Property, Plant and Equipment | 2,665 | 2,934 | | Investment Properties | 430 | 430 | | Intangible Assets | 22,748 | 25,601 | | Right-of-use Assets | 20,410 | 25,494 | | Deferred Income Tax Assets | 44,022 | 43,357 | | Financial Assets at Fair Value Through Profit or Loss | 33,745 | 34,989 | | Total Non-current Assets | 124,020 | 132,805 | | Current Assets | | | | Inventories | 3,913,815 | 5,582,487 | | Trade Receivables | 5,239,554 | 4,460,739 | | Bills Receivable at Fair Value Through Other Comprehensive Income | 283,889 | 174,219 | | Prepayments, Deposits and Other Receivables | 326,958 | 391,364 | | Amounts Due from Related Companies | 46,084 | 34,699 | | Refundable Prepayments | 875,440 | 1,128,433 | | Pledged Bank Deposits | 2,114,040 | 5,602,464 | | Cash and Cash Equivalents | 1,257,718 | 561,776 | | Total Current Assets | 14,057,498 | 17,936,181 | | Current Liabilities | | | | Trade and Bills Payables | 4,977,310 | 5,194,413 | | Bills Payable under Supply Chain Financing | 2,333,710 | 5,865,134 | | Other Payables | 553,949 | 474,401 | | Tax Payables | 10,317 | 17,510 | | Borrowings | 2,749,991 | 2,723,459 | | Amounts Due to Related Companies | 18,500 | 24,063 | | Contract Liabilities | 425,644 | 765,228 | | Lease Liabilities | 11,327 | 12,130 | | Total Current Liabilities | 11,080,748 | 15,076,338 | | Net Current Assets | 2,976,750 | 2,859,843 | | Total Assets Less Current Liabilities | 3,100,770 | 2,992,648 | | Non-current Liabilities | | | | Lease Liabilities | 9,083 | 13,493 | | Net Assets | 3,091,687 | 2,979,155 | | Total Equity | 3,091,687 | 2,979,155 | Condensed Consolidated Statement of Changes in Equity This statement details the changes in the group's equity components over the reporting period Condensed Consolidated Statement of Changes in Equity (for the six months ended June 30, 2025) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Total Equity as at January 1 | 2,979,155 | 2,812,545 | | Dividend Distribution | (128,526) | (128,526) | | Decrease in Exchange Differences Arising from Translation | 59,866 | (29,548) | | Total Profit for the Period Attributable to Shareholders | 181,192 | 164,484 | | Total Equity as at June 30 | 3,091,687 | 2,818,955 | Condensed Consolidated Statement of Cash Flows This statement summarizes the cash inflows and outflows from operating, investing, and financing activities Condensed Consolidated Statement of Cash Flows (for the six months ended June 30, 2025) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (1,187,739) | (3,193,175) | | Net Cash From Investing Activities | 3,577,174 | 3,054,038 | | Net Cash (Used In) / From Financing Activities | (1,693,493) | 104,760 | | Net Increase / (Decrease) in Cash and Cash Equivalents | 695,942 | (34,377) | | Cash and Cash Equivalents at Beginning of Year | 561,776 | 1,087,803 | | Cash and Cash Equivalents at End of Period | 1,257,718 | 1,053,426 | Notes to the Condensed Consolidated Interim Financial Statements These notes provide additional information and explanations supporting the condensed consolidated interim financial statements 1. General Information This section introduces the company's registered office, listing status, principal activities, functional and presentation currencies, and identifies the controlling shareholder group - The Company's functional currency is RMB, and the condensed consolidated financial statements are presented in HKD[50] - As of June 30, 2025, Sichuan Changhong Holdings, Sichuan Changhong, Changhong (Hong Kong) Trading Co., Ltd., and Anjian Holdings Limited constitute a group of controlling shareholders[51] 2. Basis of Preparation and Principal Accounting Policies This section clarifies the basis of preparation for the condensed consolidated financial statements, which comply with HKAS 34, and notes that while the statements were reviewed by the Audit Committee, they were not reviewed or audited by external auditors - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[52] - The condensed consolidated results for the six months ended June 30, 2025, have not been reviewed or audited by the Company's external auditors, but have been reviewed by the Audit Committee[53] - The accounting policies adopted by the Company are consistent with those followed in the preparation of the 2024 financial statements[53] 3. Revenue This section details the Group's principal business activities, including providing ICT solutions and services, and distributing ICT consumer products, enterprise products, smartphones, and own-brand products, with amounts provided by major revenue categories - The Group's principal activities include providing professional and comprehensive Information and Communication Technology (ICT) solutions and services, as well as distributing ICT consumer products, ICT enterprise products, smartphones, and own-brand products[54] Revenue by Major Category (for the six months ended June 30) | Revenue Category | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | ICT Consumer Products | 8,471,250 | 8,495,043 | | ICT Enterprise Products | 8,378,265 | 6,774,592 | | Others | 4,319,176 | 4,016,539 | | Total Revenue | 21,168,691 | 19,286,174 | 4. Segment Information This section provides an analysis of the Group's revenue and results by reportable and operating segments, including ICT consumer products, ICT enterprise products, and other businesses, along with sales by geographical market - The Group has three reportable and operating segments: ICT Consumer Products, ICT Enterprise Products, and Others[57] 2025 First Half Revenue and Profit by Segment | Segment | External Sales (thousand HKD) | Segment Profit (thousand HKD) | | :--- | :--- | :--- | | ICT Consumer Products | 8,471,250 | 129,547 | | ICT Enterprise Products | 8,378,265 | 221,864 | | Others | 4,319,176 | 45,099 | | Total | 21,168,691 | 396,510 | 2025 First Half Sales by Geographical Market | Region | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Mainland China | 20,906,633 | 19,007,151 | | Other Regions | 262,058 | 279,023 | | Total | 21,168,691 | 19,286,174 | 5. Profit for the Period This section details the major expenses deducted from operating profit for the six months ended June 30, 2025, and the corresponding period in 2024 Expenses Deducted from Operating Profit for the Period (for the six months ended June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Cost of Inventories Sold | 20,519,053 | 18,642,526 | | Depreciation of Plant and Equipment | 553 | 923 | | Depreciation of Right-of-use Assets | 5,932 | 5,974 | | Salaries and Related Staff Costs | 149,465 | 151,923 | | Contributions to Retirement Benefit Schemes | 42,165 | 41,654 | | Net Exchange Loss | 11,098 | 14,300 | 6. Income Tax Expense This section explains the Group's income tax policies across different jurisdictions, including Bermuda's tax exemption, Hong Kong's two-tiered profits tax, and the standard and preferential tax rates for PRC subsidiaries - The Company is exempt from income tax in Bermuda[63] - Hong Kong profits tax operates under a two-tiered system, with the first 2 million HKD of assessable profits taxed at 8.25% and profits above that at 16.5%[63] - PRC subsidiaries are subject to a standard corporate income tax rate of 25%, but certain "encouraged enterprises" located in western regions may enjoy a preferential tax rate of 15%[63][64] 7. Earnings Per Share This section provides basic and diluted earnings per share calculations for the six months ended June 30, 2025, and the corresponding period in 2024, noting that basic and diluted EPS are identical due to no potentially dilutive shares Earnings Per Share Calculation (for the six months ended June 30) | Item | 2025 (thousand HKD / thousand shares) | 2024 (thousand HKD / thousand shares) | | :--- | :--- | :--- | | Profit Attributable to Owners of the Company (thousand HKD) | 181,192 | 164,484 | | Weighted Average Number of Ordinary Shares and Convertible Preference Shares (thousand shares) | 2,570,520 | 2,570,520 | | Basic and Diluted Earnings Per Share (HK cents) | 7.05 | 6.40 | - As there were no potentially dilutive shares during the reporting period, diluted earnings per share are identical to basic earnings per share[65] 8. Trade Receivables This section outlines the Group's credit policy and provides an aging analysis of trade receivables by invoice date as of the end of the reporting period - The Group's credit period with third-party trade customers ranges from 0 to 180 days, with customer credit limits reviewed annually[66] Aging Analysis of Trade Receivables (as of June 30, 2025) | Aging | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Within 30 days | 1,419,410 | 1,111,255 | | 31 to 60 days | 802,571 | 775,144 | | 61 to 90 days | 413,331 | 417,505 | | 91 to 180 days | 986,218 | 601,759 | | 181 to 365 days | 565,574 | 512,339 | | Over one year | 1,052,450 | 1,042,737 | | Total | 5,239,554 | 4,460,739 | 9. Trade Payables and Bills Payable / Bills Payable under Supply Chain Financing This section presents the total trade and bills payables as of the reporting period end, an aging analysis of trade payables by goods receipt date, and details the credit period for goods purchased Trade and Bills Payables (as of June 30, 2025) | Item | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Trade and Bills Payables | 4,977,310 | 5,194,413 | | Bills Payable under Supply Chain Financing | 2,333,710 | 5,865,134 | | Total | 7,311,020 | 11,059,547 | Aging Analysis of Trade Payables (as of June 30, 2025) | Aging | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Within 30 days | 699,781 | 520,984 | | 31 to 60 days | 523,312 | 428,416 | | 61 to 90 days | 75,507 | 100,414 | | 91 to 180 days | 198,081 | 142,300 | | 181 to 365 days | 144,082 | 113,739 | | Over one year | 116,805 | 84,330 | | Total | 1,757,568 | 1,390,183 | - The credit period for goods purchased ranges from 30 to 120 days, and the Group has established financial risk management policies to ensure all payables are settled within the credit period[67] 10. Borrowings This section discloses the Group's total borrowings as of the reporting period end, primarily unsecured bank borrowings, and presents the effective interest rate range Borrowings Analysis (as of June 30, 2025) | Item | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Bank Borrowings, Unsecured | 2,749,991 | 2,723,459 | - For the six months ended June 30, 2025, the Group's borrowings had an effective interest rate fixed between 0.9981% and 4.6727%[68] 11. Dividends This section confirms the Board's recommendation not to declare a dividend for the first half of 2025 and lists the dividend amount recognized as a distribution during the period - The Board does not recommend the payment of any dividend for the six months ended June 30, 2025[70] Dividends Recognized as Distribution During the Period (for the six months ended June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | 2024 Final — HKD 0.05 per share | 128,526 | 128,526 |