明辉国际(03828) - 2025 - 中期财报

Corporate Information This section provides an overview of the company's governance structure, including board members, committees, and key administrative details Board of Directors Lists the names and positions of the company's executive, non-executive, and independent non-executive directors, including Chairman Mr. CHING Chi Fai - Board members include Executive Directors Mr. CHING Chi Fai (Chairman), Mr. CHING Chi Keung, Mr. LAU Tsz Kong, Mr. CHING Chun Wah, Mr. JIANG Guoxiong; Non-executive Director Ms. CHAN Yin Ching; Independent Non-executive Directors Mr. HUNG Kam Hung, Mr. SUEN Wing Chung, Mr. KWONG Wan Kit[5] Committees Details the composition of the Audit, Nomination, Remuneration, Executive, and Investment Committees - The Audit Committee is chaired by Mr. KWONG Wan Kit[5] - The Nomination Committee is chaired by Mr. CHING Chi Fai[5] - The Remuneration Committee is chaired by Mr. HUNG Kam Hung[6] Other Key Information Provides information on the Chief Financial Officer and Company Secretary, principal bankers, auditor, share registrar, registered and principal office, website, and stock code - The Chief Financial Officer and Company Secretary is Mr. JIANG Guoxiong[6] - Principal bankers include Bank of China (Hong Kong), The Hongkong and Shanghai Banking Corporation, Hang Seng Bank, DBS Bank (Hong Kong)[6] - The auditor is PricewaterhouseCoopers[8] - The company website is www.mingfaigroup.com, and the stock code is 03828[9] Highlights for the Six Months Ended 30 June 2025 This section summarizes the key financial performance indicators for the first half of 2025, including revenue, profit, and dividends Financial Highlights During the period, revenue slightly increased by 0.5% to HKD 1,028.6 million, but gross profit and profit attributable to owners decreased by 4.5%, with gross margin falling by 1.2 percentage points to 22.7%, and interim dividend maintained at 3.0 HK cents per share Key Financial Highlights for the Six Months Ended 30 June | Metric | 30 June 2025 (million HKD) | 30 June 2024 (million HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,028.6 | 1,023.4 | 0.5% | | Gross Profit | 233.8 | 244.9 | (4.5)% | | Gross Margin | 22.7% | 23.9% | (1.2) percentage points | | Operating Profit | 59.7 | 64.0 | - | | Profit Attributable to Owners of the Company | 50.9 | 53.3 | (4.5)% | | Dividend per Share | 3.0 HK cents | 3.0 HK cents | – | Management Discussion and Analysis This section provides an in-depth analysis of the company's financial performance, business operations, future outlook, and human resources policies Financial Review Detailed review of the Group's financial performance in H1 2025, covering revenue, gross profit, profit attributable to owners, EPS, dividends, liquidity, cash and cash equivalents, net assets, borrowings, asset pledges, gearing ratio, foreign exchange risk, and capital commitments and contingent liabilities Key Financial Highlights for the Six Months Ended 30 June 2025 | Metric | 30 June 2025 (million HKD) | 30 June 2024 (million HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,028.6 | 1,023.4 | 0.5% | | Gross Profit | 233.8 | 244.9 | (4.5)% | | Profit Attributable to Owners of the Company | 50.9 | 53.3 | (4.5)% | | Basic EPS (HK cents) | 7.0 | 7.4 | (5.4)% | | Diluted EPS (HK cents) | 7.0 | 7.4 | (5.4)% | | Dividend per Share (HK cents) | 3.0 | 3.0 | – | - Revenue slightly increased by 0.5% to approximately HKD 1,028.6 million, primarily driven by growth in travel amenities and operating supplies and equipment businesses, despite a decrease in healthcare and hygiene products revenue[17][19] - Gross profit decreased by 4.5% to approximately HKD 233.8 million, with gross margin falling by 1.2 percentage points to 22.7%, mainly due to increased cost of sales[18][20] - As of 30 June 2025, cash and cash equivalents increased to approximately HKD 421.1 million (31 December 2024: approximately HKD 328.6 million)[25][31] Borrowing Structure (million HKD) | Borrowing Type | 30 June 2025 | 31 December 2024 | | :--- | :--- | :--- | | Secured bank borrowings with a repayment on demand clause | 15.7 | 24.2 | | Secured other borrowings without a repayment on demand clause | 2.1 | 1.9 | | Total | 17.8 | 26.1 | - The Group primarily faces RMB foreign exchange risk, currently not employing hedging policies, and manages it by increasing RMB-denominated revenue[44][47] Business Review Outlines the impact of the complex and volatile global economic environment on the Group's business in H1 2025, detailing performance across travel amenities, operating supplies and equipment, and healthcare and hygiene products, including changes in revenue, gross profit, and gross margin, with revenue contributions segmented by geographical region - The global economic environment in H1 2025 was complex and volatile, with easing inflation but policy instability, surging tariffs, and geopolitical conflicts constraining economic growth, putting pressure on the Group's overall performance[50][55] Revenue and Gross Profit Performance by Business Segment (for the six months ended 30 June 2025) | Business Segment | 2025 Revenue (million HKD) | 2024 Revenue (million HKD) | Revenue Change (%) | 2025 Gross Profit (million HKD) | 2024 Gross Profit (million HKD) | Gross Profit Change (%) | 2025 Gross Margin (%) | 2024 Gross Margin (%) | Gross Margin Change (percentage points) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Travel Amenities | 877.6 | 857.8 | 2.3% | 194.9 | 201.8 | (3.4)% | 22.2% | 23.5% | (1.3) | | Operating Supplies and Equipment | 95.7 | 82.3 | 16.3% | 22.3 | 19.4 | 14.9% | 23.3% | 23.5% | (0.2) | | Healthcare and Hygiene Products | 55.3 | 83.3 | (33.6)% | 16.6 | 23.7 | (30.0)% | 30.0% | 28.4% | 1.6 | - Travel amenities business revenue grew by 2.3%, but gross profit decreased by 3.4% and gross margin fell by 1.3 percentage points due to macroeconomic instability, supply chain pressures, and intense competition[51][52][56] - Operating supplies and equipment business revenue increased by 16.3%, with gross profit growing by 14.9%, primarily benefiting from the growth in hotel construction in China[54][58] - Healthcare and hygiene products business revenue significantly decreased by 33.6%, mainly due to reduced market demand for epidemic prevention products and changes in customer purchasing behavior, yet gross margin counter-cyclically increased by 1.6 percentage points[61][62][65] Outlook and Strategies Outlines the Group's aim to be a leading international travel amenities and personal care products brand, committed to sustainable development, adapting operational strategies, optimizing resource allocation, leveraging its Cambodia plant to navigate trade changes, and deepening ESG practices and R&D to enhance core competitiveness - The Group aims to be a leading international brand for travel amenities and personal care products, creating value for stakeholders and supporting ecological sustainability[67][71] - Facing global tourism opportunities and challenges, the Group will closely monitor market dynamics, flexibly adjust operational strategies and service systems, and optimize resource allocation to strengthen core competitiveness[68][72] - The Group established a plant in Cambodia, implementing a regional diversification strategy to address tariff barriers and supply chain restructuring challenges in the international trade environment, while strengthening its business footprint in the Southeast Asian market[69][73] - The Group remains committed to ESG (Environmental, Social, and Governance) practices, actively exploring business innovation, implementing environmentally friendly manufacturing processes, and fulfilling social and corporate responsibilities[70][74] - The Group will continue to strengthen quality control, explore new potential customer segments, and maintain existing strategic partnerships to build lasting collaborations with excellent products and services[75][78] - The Group will adhere to prudent management principles, optimize operations, leverage its Cambodia production base to enhance cost-effectiveness and service capabilities, and strengthen R&D to seize emerging industry opportunities[76][79] Employees and Remuneration Policy As of 30 June 2025, the Group had approximately 7,500 employees, with staff welfare expenses of approximately HKD 263 million; the remuneration policy is based on market terms and individual performance, offering various benefits and incentive programs - As of 30 June 2025, the Group's total number of employees was approximately 7,500[77][80] - For the six months ended 30 June 2025, staff welfare expenses (including directors' emoluments) were approximately HKD 263.0 million[77][80] - Remuneration policy is regularly reviewed against market terms and individual performance, offering discretionary bonuses, social/medical insurance, share award schemes, continuous education, and training benefits[77][80] - The Group implements KPI assessment programs and annual commendation schemes to enhance individual performance and operational efficiency[77][80] Corporate Governance and Other Information This section covers directors' and substantial shareholders' interests, share award schemes, corporate governance compliance, and interim dividend declarations Directors' Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company and its Associated Corporations As of 30 June 2025, discloses directors' and their associates' long positions in the company's shares, with Mr. CHING Chi Fai and his spouse collectively holding approximately 30.15% of shares Directors' Long Positions in Shares and Underlying Shares (as at 30 June 2025) | Name of Director | Personal Interest (shares) | Family Interest (shares) | Corporate Interest (shares) | Total (shares) | Approximate % of Issued Shares | | :--- | :--- | :--- | :--- | :--- | :--- | | Mr. CHING Chi Fai | 23,690,000 | – | 197,666,200 | 221,356,200 | 30.15% | | Mr. CHING Chi Keung | 4,000,000 | – | 32,499,600 | 36,499,600 | 4.97% | | Mr. LAU Tsz Kong | 4,000,000 | – | 20,057,200 | 24,057,200 | 3.28% | | Mr. CHING Chun Wah | 3,734,000 | 775,000 | – | 4,509,000 | 0.61% | | Ms. CHAN Yin Ching | – | – | 32,499,600 | 32,499,600 | 4.43% | | Mr. HUNG Kam Hung | 600,000 | – | – | 600,000 | 0.08% | - Mr. CHING Chi Fai holds 165,166,600 shares through his wholly-owned Prosper Well International Limited and 32,499,600 shares through Targetwise Trading Limited, in which he holds a 30.77% interest[83][98] Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares and Underlying Shares of the Company As of 30 June 2025, discloses long positions in the company's shares held by substantial shareholders and other persons (excluding directors), including Prosper Well International Limited, Ms. LO Kit Ling, Mr. David Michael WEBB, Ms. Karen Anne WEBB, Preferable Situation Assets Limited, and Member One Limited Substantial Shareholders' and Other Persons' Long Positions in Shares (as at 30 June 2025) | Name | Family Interest (shares) | Corporate Interest (shares) | Corporate Interest (Interest in controlled corporations) (shares) | Total (shares) | Approximate % of Issued Shares | | :--- | :--- | :--- | :--- | :--- | :--- | | Prosper Well International Limited | – | 165,166,600 | – | 165,166,600 | 22.49% | | Ms. LO Kit Ling | 221,356,200 | – | – | 221,356,200 | 30.15% | | Mr. David Michael WEBB | – | – | 119,920,000 | 119,920,000 | 16.33% | | Ms. Karen Anne WEBB | – | – | 119,920,000 | 119,920,000 | 16.33% | | Preferable Situation Assets Limited | – | 69,987,700 | – | 69,987,700 | 9.53% | | Member One Limited | – | 49,932,300 | – | 49,932,300 | 6.80% | - Ms. LO Kit Ling (spouse of Mr. CHING Chi Fai) is deemed to have an interest in 221,356,200 shares held by Mr. CHING Chi Fai[98] - Mr. David Michael WEBB and Ms. Karen Anne WEBB jointly wholly own Preferable Situation Assets Limited and Member One Limited, collectively holding 119,920,000 shares[92][96] Share Award Scheme The company adopted a share award scheme on 23 September 2016 to recognize contributions and attract and retain talent; as of 30 June 2025, 10,424,000 shares were available for grant under the scheme, but no shares were purchased or granted during the period - The Share Award Scheme was adopted on 23 September 2016, aiming to recognize contributions and attract talent[99][104] - As of 30 June 2025, the number of shares available for grant was 10,424,000 shares[100][104] - For the six months ended 30 June 2025, no shares were purchased by the independent trustee, nor were any shares granted to eligible persons[100][104][198][199] Purchase, Sale or Redemption of Listed Securities of the Company For the six months ended 30 June 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - For the six months ended 30 June 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities[107][111] Corporate Governance Code For the six months ended 30 June 2025, the Group complied with all provisions of the Corporate Governance Code, except for a deviation from code provision C.2.1, as no chief executive officer was appointed, with duties performed collectively by all executive directors - The Group has complied with all provisions of the Corporate Governance Code[108][112] - A deviation from code provision C.2.1 occurred, as no chief executive officer was appointed, with duties performed collectively by all executive directors (including the Chairman)[108][112] Audit Committee The Audit Committee, comprising three independent non-executive directors, has reviewed the Group's unaudited condensed consolidated interim results for the six months ended 30 June 2025 - The Audit Committee comprises three independent non-executive directors[109][113] - The Audit Committee has reviewed the unaudited condensed consolidated interim results for the six months ended 30 June 2025[109][113] Model Code for Directors' Securities Transactions The company adopted the Model Code for Directors' Securities Transactions, and all directors confirmed compliance for the six months ended 30 June 2025 - The company has adopted the Model Code for Directors' Securities Transactions[110][114] - All directors confirmed compliance with the code[110][114] Disclosure of Information of Directors under Rule 13.51B(1) of the Listing Rules Discloses the appointment of Ms. CHAN Yin Ching and Mr. HUNG Kam Hung as members of the company's Nomination Committee on 25 June 2025 - Ms. CHAN Yin Ching and Mr. HUNG Kam Hung were appointed as members of the company's Nomination Committee on 25 June 2025[115][119] Interim Dividend The Board resolved to declare an interim dividend of 3.0 HK cents per share for the six months ended 30 June 2025, totaling approximately HKD 22,028,000, consistent with the prior year, with a policy aiming to balance business growth and shareholder returns - The Board resolved to declare an interim dividend of 3.0 HK cents per share for the six months ended 30 June 2025[117][121][228][230] - The total dividend amount is approximately HKD 22,028,000, consistent with the prior year[228][230] - The dividend policy aims to balance business growth with shareholder returns, subject to Board discretion and relevant laws and regulations[116][120] Closure of Register of Members and Record Date The company will suspend share transfer registration from 18 September to 19 September 2025, with the record date set for 19 September 2025, to determine eligible shareholders for the interim dividend - Share transfer registration will be suspended from 18 September to 19 September 2025[118][122] - The record date is 19 September 2025, to determine eligible shareholders for the interim dividend[118][122] Interim Condensed Consolidated Balance Sheet This section presents the Group's financial position, detailing assets, equity, and liabilities as of 30 June 2025 Assets As of 30 June 2025, the Group's total assets were HKD 1,897,122 thousand, with total non-current assets at HKD 556,706 thousand and total current assets at HKD 1,340,416 thousand Assets Overview (thousand HKD) | Metric | 30 June 2025 (Unaudited) | 31 December 2024 (Audited) | | :--- | :--- | :--- | | Total non-current assets | 556,706 | 554,067 | | Total current assets | 1,340,416 | 1,441,268 | | Total assets | 1,897,122 | 1,995,335 | - As of 30 June 2025, total assets decreased compared to 31 December 2024, primarily due to a reduction in current assets[123] - Inventories decreased from HKD 307,914 thousand to HKD 263,421 thousand, and trade and bills receivables decreased from HKD 727,731 thousand to HKD 573,501 thousand[123] Equity As of 30 June 2025, equity attributable to owners was HKD 1,336,343 thousand, non-controlling interests were HKD (61,702) thousand, and total equity was HKD 1,274,641 thousand Equity Overview (thousand HKD) | Metric | 30 June 2025 (Unaudited) | 31 December 2024 (Audited) | | :--- | :--- | :--- | | Equity attributable to owners of the Company | 1,336,343 | 1,323,363 | | Non-controlling interests | (61,702) | (60,026) | | Total equity | 1,274,641 | 1,263,337 | - Total equity increased from HKD 1,263,337 thousand as of 31 December 2024 to HKD 1,274,641 thousand as of 30 June 2025[123] Liabilities As of 30 June 2025, the Group's total liabilities were HKD 622,481 thousand, with total non-current liabilities at HKD 22,719 thousand and total current liabilities at HKD 599,762 thousand Liabilities Overview (thousand HKD) | Metric | 30 June 2025 (Unaudited) | 31 December 2024 (Audited) | | :--- | :--- | :--- | | Total non-current liabilities | 22,719 | 17,868 | | Total current liabilities | 599,762 | 714,130 | | Total liabilities | 622,481 | 731,998 | - Total liabilities decreased from HKD 731,998 thousand as of 31 December 2024 to HKD 622,481 thousand as of 30 June 2025, primarily due to a reduction in current liabilities[124] - Trade payables decreased from HKD 263,714 thousand to HKD 207,752 thousand, and accrued expenses and other payables decreased from HKD 383,603 thousand to HKD 333,708 thousand[124] Interim Condensed Consolidated Statement of Comprehensive Income This section details the Group's profit and loss, including revenue, costs, and other comprehensive income for the six months ended 30 June 2025 Profit for the Period For the six months ended 30 June 2025, Group revenue slightly increased by 0.5%, but increased cost of sales led to a 4.5% decrease in gross profit, with both operating profit and profit attributable to owners declining Profit and Loss Overview (thousand HKD) | Metric | 30 June 2025 (Unaudited) | 30 June 2024 (Unaudited) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,028,584 | 1,023,353 | 0.5% | | Cost of sales | (794,822) | (778,485) | 2.1% | | Gross profit | 233,762 | 244,868 | (4.5)% | | Operating profit | 59,736 | 64,041 | (6.8)% | | Profit before income tax | 61,311 | 65,257 | (6.1)% | | Income tax expense | (11,097) | (13,590) | (18.3)% | | Profit for the period | 50,214 | 51,667 | (2.8)% | | Profit attributable to owners of the Company | 50,909 | 53,273 | (4.4)% | - Cost of sales increased by 2.1% to HKD 794,822 thousand, leading to a decrease in gross profit[126] - Income tax expense decreased by 18.3% to HKD 11,097 thousand[126] Other Comprehensive Income/(Loss) For the six months ended 30 June 2025, exchange differences on translation generated HKD 11,759 thousand in other comprehensive income, resulting in a total comprehensive income for the period of HKD 61,973 thousand Other Comprehensive Income Overview (thousand HKD) | Metric | 30 June 2025 (Unaudited) | 30 June 2024 (Unaudited) | | :--- | :--- | :--- | | Exchange differences on translation | 11,759 | (7,801) | | Total comprehensive income for the period | 61,973 | 43,866 | | Total comprehensive income for the period attributable to owners of the Company | 63,649 | 44,300 | | Total comprehensive income for the period attributable to non-controlling interests | (1,676) | (434) | - Exchange differences on translation turned from a HKD (7,801) thousand loss in the prior year period to a HKD 11,759 thousand gain in the current period[126] Earnings per Share For the six months ended 30 June 2025, both basic and diluted earnings per share were 7.0 HK cents, a decrease from 7.4 HK cents in the prior year period Earnings per Share (HK cents) | Metric | 30 June 2025 (Unaudited) | 30 June 2024 (Unaudited) | | :--- | :--- | :--- | | Basic | 7.0 | 7.4 | | Diluted | 7.0 | 7.4 | - Basic and diluted earnings per share are identical due to the absence of potential dilutive ordinary shares[226][229] Interim Condensed Consolidated Statement of Changes in Equity This section outlines the changes in the Group's total equity, including profit for the period and dividend payments, for the six months ended 30 June 2025 Changes in Equity As of 30 June 2025, total equity increased from HKD 1,263,337 thousand at the beginning of the year to HKD 1,274,641 thousand, primarily influenced by total comprehensive income of HKD 61,973 thousand and dividend payments of HKD 50,669 thousand during the period Changes in Equity Overview (thousand HKD) | Metric | Balance as at 1 January 2025 | Total comprehensive income for the period | Payment of dividends | Balance as at 30 June 2025 | | :--- | :--- | :--- | :--- | :--- | | Sub-total attributable to owners of the Company | 1,323,363 | 63,649 | (50,669) | 1,336,343 | | Non-controlling interests | (60,026) | (1,676) | – | (61,702) | | Total equity | 1,263,337 | 61,973 | (50,669) | 1,274,641 | - As of 30 June 2025, reserves attributable to owners of the Company increased from HKD 710,955 thousand as of 1 January 2025 to HKD 723,935 thousand[128] Interim Condensed Consolidated Statement of Cash Flows This section presents the Group's cash flows from operating, investing, and financing activities for the six months ended 30 June 2025 Cash Flows from Operating Activities For the six months ended 30 June 2025, net cash from operating activities significantly increased to HKD 168,106 thousand, primarily due to a substantial rise in cash generated from operations Cash Flows from Operating Activities (thousand HKD) | Metric | 30 June 2025 (Unaudited) | 30 June 2024 (Unaudited) | | :--- | :--- | :--- | | Cash generated from operations | 181,619 | 48,500 | | Interest paid | (796) | (1,506) | | Income tax paid | (12,717) | (16,852) | | Net cash from operating activities | 168,106 | 30,142 | - Cash generated from operations significantly increased from HKD 48,500 thousand in the prior year period to HKD 181,619 thousand[130] Cash Flows from Investing Activities For the six months ended 30 June 2025, net cash used in investing activities was HKD 13,963 thousand, a decrease from the prior year period, mainly due to reduced purchases of property, plant, and equipment Cash Flows from Investing Activities (thousand HKD) | Metric | 30 June 2025 (Unaudited) | 30 June 2024 (Unaudited) | | :--- | :--- | :--- | | Purchase of property, plant and equipment | (15,396) | (41,050) | | Purchase of intangible assets | (961) | (487) | | Proceeds from disposal of property, plant and equipment | 571 | 1,211 | | Interest received | 1,823 | 2,758 | | Net cash used in investing activities | (13,963) | (37,568) | - Purchases of property, plant and equipment decreased from HKD 41,050 thousand in the prior year period to HKD 15,396 thousand[130] Cash Flows from Financing Activities For the six months ended 30 June 2025, net cash used in financing activities was HKD 62,063 thousand, an increase from the prior year period, mainly due to repayment of borrowings and dividend payments Cash Flows from Financing Activities (thousand HKD) | Metric | 30 June 2025 (Unaudited) | 30 June 2024 (Unaudited) | | :--- | :--- | :--- | | Repayment of borrowings | (35,635) | (11,785) | | Principal portion of lease payments | (2,739) | (2,991) | | Dividends paid to the Company's shareholders | (50,609) | (36,116) | | Proceeds from borrowings | 26,920 | – | | Net cash used in financing activities | (62,063) | (50,977) | - Repayment of borrowings increased from HKD 11,785 thousand in the prior year period to HKD 35,635 thousand[130] - Proceeds from borrowings amounted to HKD 26,920 thousand, compared to zero in the prior year period[130] Net Increase/(Decrease) in Cash and Cash Equivalents For the six months ended 30 June 2025, cash and cash equivalents saw a net increase of HKD 92,080 thousand, with an ending balance of HKD 421,161 thousand Changes in Cash and Cash Equivalents (thousand HKD) | Metric | 30 June 2025 (Unaudited) | 30 June 2024 (Unaudited) | | :--- | :--- | :--- | | Net increase/(decrease) in cash and cash equivalents | 92,080 | (58,403) | | Cash and cash equivalents at beginning of period | 328,621 | 375,093 | | Exchange gains/(losses) | 460 | (2,324) | | Cash and cash equivalents at end of period | 421,161 | 314,366 | - Cash and cash equivalents shifted from a net decrease of HKD 58,403 thousand in the prior year period to a net increase of HKD 92,080 thousand in the current period[130] Notes to the Condensed Consolidated Interim Financial Information This section provides detailed notes explaining the basis of preparation, accounting policies, segment information, and specific financial statement line items General Information Ming Fai International Holdings Limited is an investment holding company whose subsidiaries primarily engage in the manufacturing and trading of travel amenities, operating supplies and equipment, and healthcare and hygiene products; the company is incorporated in the Cayman Islands and listed on the Main Board of the Hong Kong Stock Exchange - The company's principal activities include the manufacturing and trading of travel amenities, operating supplies and equipment, and healthcare and hygiene products[132][137] - The company is incorporated in the Cayman Islands and listed on the Main Board of the Hong Kong Stock Exchange[133][134][137] Basis of Preparation The condensed consolidated interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' and should be read in conjunction with the annual consolidated financial statements for the year ended 31 December 2024 - The financial information is prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting'[135][138] - It is recommended to read this in conjunction with the annual consolidated financial statements for the year ended 31 December 2024[135][138] Accounting Policies The Group's accounting policies are consistent with the 2024 annual consolidated financial statements, except for income tax estimation and the adoption of new and revised standards; newly adopted standards have no significant impact on current or prior periods, and future effective standards are under assessment - Accounting policies are consistent with the 2024 annual consolidated financial statements, except for income tax estimation and the adoption of new and revised standards[136][139] - The Group has adopted amendments to HKAS 21 and HKFRS 1, but with no significant impact[140][141] - Amendments to standards effective in the future are being assessed, with preliminary evaluation expecting no significant impact[142][143][148] Segment Information The Group reports operating segments based on three business lines: travel amenities, operating supplies and equipment, and healthcare and hygiene products, with performance assessed by customer geographical location - The Group has three reportable segments: travel amenities business, operating supplies and equipment business, and healthcare and hygiene products business[145][149] - The Board assesses operating segment performance based on segment profit before income tax, share of profit of associates, and share of (loss)/profit of joint ventures[146][149] Segment Revenue by Geographical Region for the Six Months Ended 30 June 2025 (thousand HKD) | Business Segment | China | Hong Kong | North America | Europe | Australia | Other Asia Pacific | Other Regions | Sub-total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Travel amenities business | 208,012 | 138,415 | 158,169 | 147,603 | 51,255 | 172,536 | 1,576 | 877,566 | | Operating supplies and equipment business | 65,180 | – | – | – | – | – | 30,543 | 95,723 | | Healthcare and hygiene products business | – | 982 | 52,395 | – | – | – | 1,918 | 55,295 | | Total | 273,192 | 139,397 | 210,564 | 147,603 | 51,255 | 172,536 | 34,037 | 1,028,584 | Property, Plant and Equipment As of 30 June 2025, the net book value of property, plant and equipment was HKD 393,467 thousand, with additions of HKD 16,119 thousand during the period, and some assets pledged as collateral for bank financing Changes in Net Book Value of Property, Plant and Equipment (thousand HKD) | Metric | 30 June 2025 (Unaudited) | 30 June 2024 (Unaudited) | | :--- | :--- | :--- | | Net book value at 1 January | 403,864 | 393,537 | | Additions | 16,119 | 40,253 | | Transferred to investment properties | (4,007) | – | | Disposals | (925) | (1,164) | | Depreciation | (27,587) | (26,368) | | Exchange differences | 6,003 | (2,795) | | Net book value at 30 June | 393,467 | 403,463 | - As of 30 June 2025, approximately HKD 13,487 thousand of property, plant and equipment were pledged as collateral for bank financing[158] Right-of-Use Assets and Lease Liabilities As of 30 June 2025, total right-of-use assets amounted to HKD 92,277 thousand, and total lease liabilities were HKD 8,721 thousand, with some right-of-use assets pledged Right-of-Use Assets and Lease Liabilities (thousand HKD) | Metric | 30 June 2025 (Unaudited) | 31 December 2024 (Audited) | | :--- | :--- | :--- | | Leased office properties | 76,183 | 76,596 | | Leased factory buildings | 16,094 | 9,923 | | Total right-of-use assets | 92,277 | 86,519 | | Current lease liabilities | 3,788 | 2,679 | | Non-current lease liabilities | 4,933 | 289 | | Total lease liabilities | 8,721 | 2,968 | - As of 30 June 2025, approximately HKD 24,992 thousand of right-of-use assets were pledged as collateral for bank financing[161] Investment Properties As of 30 June 2025, the net book value of investment properties was HKD 49,353 thousand, with HKD 4,007 thousand transferred from property, plant and equipment during the period; the fair value of investment properties is assessed by independent valuers Changes in Net Book Value of Investment Properties (thousand HKD) | Metric | 30 June 2025 (Unaudited) | 30 June 2024 (Unaudited) | | :--- | :--- | :--- | | Net book value at 1 January | 44,243 | 45,188 | | Transferred from property, plant and equipment | 4,007 | – | | Exchange differences | 1,103 | (814) | | Net book value at 30 June | 49,353 | 44,374 | - Fair value measurement of investment properties uses Level 2 (direct comparison approach) and Level 3 (income capitalization approach) input data[166][170][171][173] Goodwill As of 30 June 2025, the net book value of goodwill was HKD 5,426 thousand, a slight increase from the beginning of the year, primarily due to exchange differences Changes in Net Book Value of Goodwill (thousand HKD) | Metric | 30 June 2025 (Unaudited) | 30 June 2024 (Unaudited) | | :--- | :--- | :--- | | Net book value at 1 January | 5,366 | 5,397 | | Exchange differences | 60 | – | | Net book value at 30 June | 5,426 | 5,397 | Intangible Assets As of 30 June 2025, the net book value of intangible assets was HKD 913 thousand, with additions of HKD 961 thousand and amortization of HKD 353 thousand during the period Changes in Net Book Value of Intangible Assets (thousand HKD) | Metric | 30 June 2025 (Unaudited) | 30 June 2024 (Unaudited) | | :--- | :--- | :--- | | Net book value at 1 January | 304 | 323 | | Additions | 961 | 487 | | Amortisation | (353) | (309) | | Exchange differences | 1 | (2) | | Net book value at 30 June | 913 | 499 | Trade and Bills Receivables As of 30 June 2025, net trade and bills receivables amounted to HKD 573,501 thousand, a decrease from 31 December 2024, with credit terms ranging from 15 to 180 days Net Trade and Bills Receivables (thousand HKD) | Metric | 30 June 2025 (Unaudited) | 31 December 2024 (Audited) | | :--- | :--- | :--- | | Trade receivables | 644,757 | 802,601 | | Bills receivables | 17,655 | 16,406 | | Less: Impairment allowance | (88,911) | (91,276) | | Net amount | 573,501 | 727,731 | - Total trade and bills receivables decreased from HKD 819,007 thousand to HKD 662,412 thousand[180] Ageing Analysis of Trade and Bills Receivables (thousand HKD) | Ageing | 30 June 2025 (Unaudited) | 31 December 2024 (Audited) | | :--- | :--- | :--- | | 1 – 30 days | 249,084 | 321,831 | | 31 – 60 days | 127,149 | 137,556 | | 61 – 90 days | 77,094 | 108,220 | | 91 – 180 days | 115,078 | 160,070 | | Over 180 days | 94,007 | 91,330 | | Total | 662,412 | 819,007 | Amount Due from an Associated Company As of 30 June 2025, the amount due from an associated company was HKD 2,605 thousand, a decrease from 31 December 2024, with a credit period of 90 days Ageing Analysis of Amount Due from an Associated Company (thousand HKD) | Ageing | 30 June 2025 (Unaudited) | 31 December 2024 (Audited) | | :--- | :--- | :--- | | 1 – 30 days | 1,000 | 3,304 | | 31 – 60 days | 1,452 | – | | 61 – 90 days | 145 | – | | Over 90 days | 8 | 69 | | Total | 2,605 | 3,373 | Pledged Bank Deposit As of 30 June 2025, pledged bank deposits amounted to HKD 11,766 thousand, serving as collateral for a Hong Kong bank facility letter Pledged Bank Deposits (thousand HKD) | Metric | 30 June 2025 (Unaudited) | 31 December 2024 (Audited) | | :--- | :--- | :--- | | Pledged bank deposits | 11,766 | 11,636 | - Bank deposits of USD 1,500,000 (approximately HKD 11,766,000) were pledged[190] Cash and Cash Equivalents As of 30 June 2025, total cash and cash equivalents amounted to HKD 421,161 thousand, with bank balances in China and India subject to foreign exchange controls Cash and Cash Equivalents (thousand HKD) | Metric | 30 June 2025 (Unaudited) | 31 December 2024 (Audited) | | :--- | :--- | :--- | | Bank balances and cash | 348,177 | 251,658 | | Short-term bank deposits | 72,984 | 76,963 | | Total | 421,161 | 328,621 | - Bank balances and cash in China and India were approximately HKD 147,265 thousand and HKD 29 thousand, respectively, with remittances subject to foreign exchange controls[193] Share Capital As of 30 June 2025, the company's authorized share capital was 10,000,000,000 shares with a par value of HKD 0.01 per share, and issued and fully paid share capital was 734,262,697 shares, totaling HKD 7,343 thousand Share Capital Overview (thousand HKD) | Metric | Number of Shares | thousand HKD | | :--- | :--- | :--- | | Authorised share capital | 10,000,000,000 | 100,000 | | Issued and fully paid share capital | 734,262,697 | 7,343 | Share-Based Payment Compensation For the six months ended 30 June 2025, no shares were purchased or granted to eligible persons under the share award scheme - For the six months ended 30 June 2025, no shares were purchased or granted under the share award scheme[198][199] Borrowings As of 30 June 2025, total borrowings amounted to HKD 17,751 thousand, predominantly secured bank borrowings with repayment on demand clauses, with certain assets pledged as collateral Borrowings Overview (thousand HKD) | Borrowing Type | 30 June 2025 (Unaudited) | 31 December 2024 (Audited) | | :--- | :--- | :--- | | Non-current: Secured other borrowings without a repayment on demand clause | 1,899 | 1,844 | | Current: Secured bank borrowings with a repayment on demand clause | 15,629 | 24,165 | | Current: Secured other borrowings without a repayment on demand clause | 223 | 88 | | Total | 17,751 | 26,097 | Carrying Amount of Pledged Assets (thousand HKD) | Asset Type | 30 June 2025 (Unaudited) | 31 December 2024 (Audited) | | :--- | :--- | :--- | | Property, plant and equipment | 13,487 | 14,184 | | Right-of-use assets | 24,992 | 25,520 | | Bank deposits | 11,766 | 11,636 | | Total pledged assets | 50,245 | 51,340 | - As of 30 June 2025, unutilised bank facilities amounted to approximately HKD 399,575 thousand[202] Trade Payables As of 30 June 2025, total trade payables amounted to HKD 207,752 thousand, a decrease from 31 December 2024 Ageing Analysis of Trade Payables (thousand HKD) | Ageing | 30 June 2025 (Unaudited) | 31 December 2024 (Audited) | | :--- | :--- | :--- | | 1 – 30 days | 184,479 | 236,267 | | 31 – 60 days | 14,564 | 17,542 | | 61 – 90 days | 5,245 | 6,497 | | Over 90 days | 3,464 | 3,408 | | Total | 207,752 | 263,714 | Expenses by Nature For the six months ended 30 June 2025, cost of inventories sold was HKD 556,311 thousand, staff welfare expenses were HKD 263,010 thousand, and transportation expenses were HKD 45,081 thousand Key Expenses Overview (thousand HKD) | Expense Type | 30 June 2025 (Unaudited) | 30 June 2024 (Unaudited) | | :--- | :--- | :--- | | Cost of inventories sold | 556,311 | 527,755 | | Auditor's remuneration | 1,540 | 1,440 | | Depreciation of property, plant and equipment | 27,587 | 26,368 | | Depreciation of right-of-use assets | 4,274 | 4,354 | | Amortisation of intangible assets | 353 | 309 | | Staff welfare expenses | 263,010 | 267,852 | | Transportation expenses | 45,081 | 39,275 | | Net exchange gains | (15,201) | (4,745) | - Net exchange gains increased from HKD (4,745) thousand in the prior year period to HKD 15,201 thousand[207] Other Income, Net For the six months ended 30 June 2025, other income, net, amounted to HKD 3,629 thousand, primarily comprising rental income, scrap sales income, and government grants Other Income, Net (thousand HKD) | Income Type | 30 June 2025 (Unaudited) | 30 June 2024 (Unaudited) | | :--- | :--- | :--- | | Rental income | 1,119 | 1,124 | | Scrap sales income | 215 | 319 | | Government grants | 1,533 | 2,507 | | Others | 762 | 1,244 | | Total | 3,629 | 5,194 | - Government grants decreased from HKD 2,507 thousand in the prior year period to HKD 1,533 thousand[210][215] Finance Income and Finance Costs For the six months ended 30 June 2025, net finance income was HKD 1,027 thousand, with finance costs of HKD 796 thousand and finance income of HKD 1,823 thousand Finance Income and Finance Costs (thousand HKD) | Metric | 30 June 2025 (Unaudited) | 30 June 2024 (Unaudited) | | :--- | :--- | :--- | | Interest expense on borrowings | (698) | (1,506) | | Interest expense on lease liabilities | (98) | (175) | | Finance costs | (796) | (1,681) | | Finance income | 1,823 | 2,758 | | Net finance income | 1,027 | 1,077 | - Interest expense on borrowings decreased from HKD 1,506 thousand in the prior year period to HKD 698 thousand[214] Income Tax Expenses For the six months ended 30 June 2025, total income tax expense was HKD 11,097 thousand, primarily comprising Hong Kong profits tax, PRC enterprise income tax, and other overseas profits tax Income Tax Expenses (thousand HKD) | Tax Type | 30 June 2025 (Unaudited) | 30 June 2024 (Unaudited) | | :--- | :--- | :--- | | Hong Kong profits tax | 6,276 | 9,583 | | PRC enterprise income tax | 3,338 | 2,983 | | Other overseas profits tax | 1,672 | 1,156 | | Deferred income tax | (189) | (132) | | Total | 11,097 | 13,590 | - Hong Kong profits tax rate is 16.5%, PRC enterprise income tax is 25%, Macau complementary income tax is 12%, and Cambodia enterprise income tax is 20%[219][221] Earnings Per Share For the six months ended 30 June 2025, both basic and diluted earnings per share attributable to owners of the Company were 7.0 HK cents, a decrease compared to the prior year period Earnings Per Share (HK cents) | Metric | 30 June 2025 (Unaudited) | 30 June 2024 (Unaudited) | | :--- | :--- | :--- | | Basic | 7.0 | 7.4 | | Diluted | 7.0 | 7.4 | - Basic and diluted earnings per share are identical due to the absence of potential dilutive ordinary shares[226][229] Dividends The Board resolved to declare an interim dividend of 3.0 HK cents per share for the six months ended 30 June 2025, totaling approximately HKD 22,028 thousand, consistent with the prior year period - The Board resolved to declare an interim dividend of 3.0 HK cents per share for the six months ended 30 June 2025[228][230] - The total dividend amount is approximately HKD 22,028 thousand, consistent with the prior year period[228][230] - The final dividend for the year ended 31 December 2024 was 7.0 HK cents per share, with approximately HKD 51,398 thousand paid in the first half of 2025[227][230] Capital Commitments As of 30 June 2025, the Group's contracted but unprovided capital commitments amounted to approximately HKD 14,670 thousand Capital Commitments (thousand HKD) | Metric | 30 June 2025 (Unaudited) | 31 December 2024 (Audited) | | :--- | :--- | :--- | | Contracted but unprovided capital commitments | 14,670 | 21,055 | Related Party Transactions Discloses significant transactions with related parties (including associates and joint ventures), such as sales of goods and rental expenses, and lists key management personnel's emoluments - The Group's ultimate controlling parties are Mr. CHING Chi Fai, Mr. CHING Chi Keung, Mr. LAU Tsz Kong, and Ms. CHAN Yin Ching[232][234] Significant Related Party Transactions (thousand HKD) | Transaction Type | Related Party | 30 June 2025 (Unaudited) | 30 June 2024 (Unaudited) | | :--- | :--- | :--- | | Sales of goods | QASM | 7,889 | 6,561 | | | AMDHK | 106 | 83 | | Purchases of goods | iBridge Technology | 186 | 66 | | Rental charged | MF Plastic | 613 | 616 | Key Management Personnel Emoluments (thousand HKD) | Emolument Type | 30 June 2025 (Unaudited) | 30 June 2024 (Unaudited) | | :--- | :--- | :--- | | Salaries, housing allowances, other allowances and benefits in kind | 3,658 | 3,585 | | Pension scheme contributions | 50 | 61 | | Total | 3,708 | 3,646 |