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亚洲联网科技(00679) - 2025 - 中期财报
ASIA TELE-NETASIA TELE-NET(HK:00679)2025-09-26 08:45

Company Information Board of Directors and Committees The company's board of directors is chaired by Mr. Lam Kwok Ching as Chairman and Managing Director, with Mr. Lam Kwok Lun as Vice Chairman, and includes audit, nomination, remuneration, and investment committees to ensure sound corporate governance - Mr. Lam Kwok Ching serves as Chairman and Managing Director of the Board, and Mr. Lam Kwok Lun is Vice Chairman4 - The company has an Audit Committee, Nomination Committee, Remuneration Committee, and Investment Committee, composed of several directors (including independent non-executive directors)4 Company Basic Information and Listing Details The company is incorporated in Bermuda with its principal place of business in Hong Kong, listed on the Main Board of the Hong Kong Stock Exchange under stock code 679. The Board has declared an interim dividend of HK$0.01 per share and announced relevant book closure and payment dates - The company's registered office is in Bermuda, with its principal place of business in Wan Chai, Hong Kong5 - The company's shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited, stock short name "Asia Tele-Net", stock code "679", with a board lot size of 10,000 shares5 Interim Dividend Payment Details | Metric | Date/Amount | | :--- | :--- | | Interim Dividend (per share) | HK$0.01 | | Latest time for lodging transfer documents for registration | 2025-09-18 4:30 p.m. | | Suspension of share transfer registration | 2025-09-19 to 23 | | Record Date | 2025-09-23 | | Payment Date | 2025-10-15 | Management Discussion and Analysis Performance Overview For the six months ended June 30, 2025, profit attributable to owners of the Group was approximately HK$14.481 million, a significant decrease from the prior year, primarily due to increased fair value losses on investment properties, partially offset by fair value gains on trading investments and exchange gains from RMB appreciation Core Financial Performance Comparison | Metric | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Profit attributable to owners of the Company | 14,481 | 29,060 | -50.16% | | Basic earnings per share | 3.79 HK Cents | 7.58 HK Cents | -50.00% | - The decrease in profit was mainly due to increased fair value losses on investment properties, partially offset by increased fair value gains on trading investments and exchange gains from RMB appreciation6 Financial Review This section details the Group's financial performance across revenue, other gains or losses, costs, impairment provisions, fair value changes in investment properties, finance costs, and taxation. Contract revenue grew by 7.5%, but fair value losses on investment properties significantly increased, while fair value gains on trading investments and exchange gains improved Revenue Composition and Changes | Revenue Source | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue from contracts with customers | 213,629 | 198,726 | +7.5% | | Rental income | 7,540 | 5,118 | +47.3% | | Interest income (debt instruments) | 8,223 | 8,954 | -8.16% | | Dividend income | 7,552 | 6,171 | +22.38% | - Within contract revenue, the printed circuit board business share increased from 78.0% to 81.6%, while the surface finishing business share decreased from 22.0% to 18.4%8 - By geographical location of machine installation base, revenue from China significantly increased from 33.9% to 52.4%, Thailand and Netherlands contributed revenue for the first time, while US and South Korea shares significantly decreased8 Other Gains or Losses | Item | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Net realised and unrealised fair value gains on investments at fair value through profit or loss | 30,705 | 21,563 | +42.40% | | Net exchange gains (losses) | 6,240 | (3,376) | Turned from loss to gain | | Fair value losses on investment properties | (52,999) | (21,482) | +146.71% | - Selling and distribution costs increased by 17.7% year-on-year, and administrative expenses increased by 5.9% year-on-year, mainly due to increased staff-related costs2324 (Impairment losses) reversals under expected credit loss model, net | Item | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Trade receivables | (218) | (4,018) | | Contract assets | 1,489 | 5,598 | | Loans receivable | 95 | 420 | | Debt instrument investments | (1,816) | – | | Deferred consideration | (6,288) | (1,394) | | Total | (6,738) | 606 | - Net carrying amount of loans receivable decreased from HK$31,788 thousand as at December 31, 2024 to HK$30,883 thousand as at June 30, 202533 - Net carrying amount of debt instrument investments decreased from HK$415,442 thousand as at December 31, 2024 to HK$361,066 thousand as at June 30, 202535 - Fair value of investments at fair value through profit or loss increased from HK$209,975 thousand as at December 31, 2024 to HK$240,680 thousand as at June 30, 2025, mainly from equity investments in China Mobile3738 Business Review by Segment The Group's business is divided into three segments: Electroplating Equipment, Property Investment, and Fund Management. Electroplating equipment revenue grew, driven by China, Thailand, and Netherlands markets; property investment fair value declined due to a weak commercial real estate market; and the fund management segment achieved stable returns through a diversified portfolio, with increased fair value of listed equity investments and decreased carrying value of debt instrument investments - The Board has reported business activities in three segments since 2024: Electroplating Equipment, Property Investment, and Fund Management, and established an Investment Committee to regularly review investments42 Electroplating Equipment Segment The Electroplating Equipment segment includes Printed Circuit Board (PCB) business and Surface Finishing business. PCB business revenue grew by 7.1%, driven by smartphone and automotive PCB demand, with significant contributions from China, Thailand, and Netherlands markets. Surface finishing business revenue decreased by 14.5%, affected by the automotive industry's trend of reducing chrome plating, and the Group is exploring new markets Electroplating Equipment Segment Revenue | Business Type | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Printed Circuit Board Business | 136,376 | 127,300 | +7.1% | | Surface Finishing Business | 30,792 | 35,996 | -14.5% | - Printed Circuit Board business revenue primarily came from shipments to China (56.2%), Thailand (18.5%), and Netherlands (13.5%), driven by demand for smartphone and automotive PCBs43 - Surface Finishing business revenue decreased, mainly due to the automotive industry's trend of reducing chrome plating, and the Group will explore other new electroplating markets46 Property Investment Segment The Property Investment segment recorded increased rental income, but investment property fair value declined due to the continued weak commercial real estate market. The Group faced requests from tenants for early lease termination, and despite no overall impact on rental income, the market outlook remains challenging Property Investment Segment Performance | Metric | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Rental income | 7,540 | 5,118 | +47.3% | | Investment property fair value (period-end) | 644,543 | 689,387 (Dec 31, 2024) | -6.51% | | Fair value losses on investment properties | (52,999) | (21,482) | +146.71% | Investment Property Occupancy Rate | Property Type | City | Occupancy Rate as at Jun 30, 2025 | Occupancy Rate as at Dec 31, 2024 | | :--- | :--- | :--- | :--- | | Retail shops | Shenzhen | 31% | 71% | | Offices | Shenzhen | 57% | 50% | | Offices and industrial buildings | Hong Kong | 92% | 84% | | Car parks | Hong Kong | 100% | 83% | - The commercial real estate markets in Mainland China and Hong Kong are expected to continue facing challenges for the remainder of 202549 Fund Management Segment The Fund Management segment aims to achieve stable returns and potential capital gains through a diversified investment portfolio. Fair value of listed equity investments increased, mainly benefiting from equity investments in China Mobile. Carrying value of debt instrument investments decreased but still provided better returns than bank time deposits. Idle funds, primarily in time deposits, significantly increased - The Fund Management segment's investment strategy is to balance short-term and long-term investments, building a diversified portfolio to provide stable returns and potential capital gains51 Fund Management Segment Investment Overview | Investment Type | Jun 30, 2025 (HK$ Thousand) | Dec 31, 2024 (HK$ Thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Fair value of listed securities investments | 240,680 | 209,975 | +14.62% | | Carrying value of debt instrument investments | 361,066 | 415,442 | -13.19% | | Time deposits | 277,049 | 96,618 | +186.75% | - The increase in listed equity investments mainly came from equity investments in China Mobile, which provides stable dividend income to the Group51 - The debt instrument investment portfolio primarily consists of investment-grade bonds with lower default risk, offering better returns than bank time deposits53 Outlook Economic growth is expected to slow in the second half of 2025, with ongoing trade disputes leading to a general slowdown, though emerging markets may be an exception due to production base shifts. The Group anticipates 2025 will remain a very challenging year for its business segments - Economic growth is expected to slow to an annual rate of 2.4% to 2.6% in the second half of 202556 - Ongoing trade disputes will lead to a general slowdown in economic growth, with emerging markets potentially being an exception due to the relocation of production bases from China56 - The Group expects 2025 to be a very challenging year for its business segments56 Significant Acquisitions and Disposals The Group made acquisitions of bonds and deposit products during the review period, with specific holdings disclosed in the financial review. Other than these, the Group did not enter into any other significant transactions - The Group issued announcements on January 9 and April 10, 2025, regarding the acquisition of bonds and deposit products57 - As at June 30, 2025, the Group had not entered into any other significant transactions58 Interim Dividend The Board declared an interim dividend of HK$0.01 per share for the six months ended June 30, 2025, consistent with the prior year. The dividend will be paid on October 15, 2025 - The Board declared an interim dividend of HK$0.01 per share for the six months ended June 30, 2025, consistent with the same period in 202459 - The interim dividend will be paid on or before October 15, 2025, to shareholders whose names appear on the register of members on September 23, 202559 Other Financial Review The Group maintains a robust capital structure with a decreased gearing ratio. Cash on hand significantly increased, but pledged deposits and bank financing utilization also rose. Most of the Group's assets are denominated in RMB, with RMB appreciation positively impacting financials. The company provides bank credit guarantees for subsidiaries and pledges some investment properties for loans Capital Structure and Liquidity | Metric | Jun 30, 2025 (HK$ Thousand) | Dec 31, 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Equity attributable to owners of the Company | 1,433,276 | 1,412,690 | +1.46% | | Gearing ratio | 2.1% | 2.6% | -0.5% | | Cash on hand | 434,126 | 344,596 | +25.98% | | Pledged deposits | 40,447 | 7,038 | +474.7% | - Most of the Group's assets are denominated in RMB, and the 1.55% appreciation of RMB during the review period had a positive impact on the Group's financials63 - The Company provided bank credit guarantees of approximately HK$1,051.6 million for its subsidiaries, with approximately HK$70.035 million utilized65 - The Group holds certain investment properties pledged to licensed banks in Hong Kong to secure mortgage loans66 Employees and Remuneration Policy As at June 30, 2025, the Group employed a total of 337 employees. Employee and director remuneration is determined based on performance, experience, and industry practice, with provident fund schemes, retirement benefits, insurance, and medical coverage provided - As at June 30, 2025, the Group employed a total of 337 employees68 - Employee and director remuneration is determined based on performance, experience, and industry practice, with performance-linked bonuses granted at discretion68 - The Group provides Hong Kong Mandatory Provident Fund schemes and China's state-managed retirement benefit schemes for Hong Kong and China employees, as well as appropriate insurance and medical coverage68 Other Information Directors' and Major Shareholders' Interests As at June 30, 2025, Mr. Lam Kwok Ching, Chairman and Managing Director, held 73.11% of the company's issued share capital, primarily through his wholly-owned Medusa Group Limited and other associated companies. Major shareholders Medusa, Good Sail, and J & A collectively held the majority of the company's shares Directors' Long Positions in the Company's Shares | Director Name | Personal Interests (shares) | Corporate Interests (shares) | Total (shares) | % of Issued Share Capital | | :--- | :--- | :--- | :--- | :--- | | Mr. Lam Kwok Ching | 3,474,667 | 275,766,500 | 279,241,167 | 73.11% | - Mr. Lam Kwok Ching's corporate interests are primarily held by Medusa Group Limited (wholly-owned), Good Sail Investment Limited (approximately 98.63% owned by J & A), and J & A Investment Limited (Mr. Lam Kwok Ching holds 80% equity)69 Major Shareholders' Long Positions in the Company's Shares | Shareholder Name | Capacity | Number of Shares Held (shares) | % of Issued Share Capital | | :--- | :--- | :--- | :--- | | Medusa | Beneficial owner | 48,520,666 | 12.70% | | Good Sail | Beneficial owner | 201,995,834 | 52.89% | | J & A | Beneficial owner | 25,250,000 | 6.61% | Share Option Scheme The company's share option scheme adopted in 2015 expired on June 12, 2025. No share options were granted under the scheme during its validity period and up to the date of this report - The company's share option scheme expired at the close of business on June 12, 202573 - No share options were granted by the Company under the scheme during the period and up to the date of this report73 Corporate Governance The company generally complied with the Corporate Governance Code during the review period, with two deviations: the Chairman and Managing Director roles are held by the same person, and the Managing Director is not subject to rotation. The Board believes the current arrangement provides strong leadership and facilitates long-term strategy execution, with independent non-executive directors safeguarding shareholder interests - The company has complied with Appendix C1 of the Listing Rules, the Corporate Governance Code, during the review period, with two deviations74 - Deviation from Code Provision C.2.1: The roles of Chairman and Managing Director are combined and held by Mr. Lam Kwok Ching, which the Board believes provides stronger and more consistent leadership7576 - Deviation from Code Provision B.2.2: The Chairman or Managing Director is not subject to retirement by rotation, as the Board believes continuity is most beneficial for the successful execution of long-term business plans77 - The Audit Committee, Remuneration Committee, Nomination Committee, and Investment Committee have all fulfilled their primary duties, including reviewing financial statements, formulating remuneration policies, reviewing board structure, and monitoring investment projects78798081 Review of Accounts and Securities Dealing Code The Audit Committee has reviewed the interim financial statements with management and external auditors. All directors confirmed compliance with the standard code for securities transactions by directors during the review period, and no director was granted rights to purchase company shares or debentures - The Audit Committee has reviewed the unaudited interim financial statements for the review period with management and external auditors82 - All directors confirmed compliance with the standard code for securities transactions by directors of listed issuers for the six months ended June 30, 202583 - No director, their spouse, or children under 18 years of age were granted any rights to acquire benefits by purchasing shares or debentures of the Company84 Share Repurchases and Subsequent Events The company repurchased and cancelled 700,000 ordinary shares between April 8 and May 21, 2025. Subsequent to the reporting period, the Group purchased debt instruments totaling HK$28.733 million - The company repurchased and cancelled a total of 700,000 ordinary shares from the open market between April 8 and May 21, 2025, at an average price of HK$0.842 per share85 - Subsequent to June 30, 2025, the Group purchased debt instruments totaling HK$28,733,000126 Condensed Consolidated Financial Review Report Review Report Conclusion Deloitte Touche Tohmatsu has reviewed the condensed consolidated financial statements in accordance with Hong Kong Standard on Review Engagements 2410. The review found no matters indicating that the financial statements are not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34 - Deloitte Touche Tohmatsu has reviewed the condensed consolidated financial statements in accordance with Hong Kong Standard on Review Engagements 24108889 - The review concluded that nothing has come to our attention that causes us to believe that the condensed consolidated financial statements are not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 3490 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Profit or Loss and Comprehensive Income Overview For the six months ended June 30, 2025, the Group's total revenue increased to HK$237 million, but profit for the period decreased to HK$14.396 million due to a significant increase in fair value losses on investment properties. However, the positive impact of exchange differences resulted in total comprehensive income for the period reaching HK$28.661 million Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 236,944 | 220,573 | +7.42% | | Cost of revenue | (166,251) | (159,729) | +4.08% | | Other gains or losses | 38,058 | 18,920 | +101.15% | | Fair value losses on investment properties | (52,999) | (21,482) | +146.71% | | Profit before tax | 15,651 | 26,944 | -41.83% | | Profit for the period | 14,396 | 29,043 | -50.43% | | Exchange differences on translating foreign operations | 14,265 | (6,639) | Turned from loss to gain | | Total comprehensive income for the period | 28,661 | 22,404 | +27.93% | | Profit attributable to owners of the Company | 14,481 | 29,060 | -50.16% | | Basic earnings per share | 3.79 HK Cents | 7.58 HK Cents | -50.00% | Condensed Consolidated Statement of Financial Position Assets, Liabilities and Equity Overview As at June 30, 2025, the Group's total assets slightly increased, and net current assets significantly improved. Fair value of investment properties within non-current assets decreased, but investments at fair value through profit or loss grew. Current liabilities increased, but the gearing ratio improved, and equity attributable to owners of the Company steadily grew Condensed Consolidated Statement of Financial Position (As at June 30) | Metric | Jun 30, 2025 (HK$ Thousand) | Dec 31, 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Non-current assets | | | | | Investment properties | 644,543 | 689,387 | -6.51% | | Debt instrument investments | 221,851 | 198,653 | +11.68% | | Current assets | | | | | Investments at fair value through profit or loss | 240,680 | 209,975 | +14.62% | | Debt instrument investments | 139,215 | 216,789 | -35.78% | | Pledged bank deposits | 40,447 | 7,038 | +474.7% | | Bank deposits | 277,049 | 96,618 | +186.75% | | Bank balances and cash | 157,077 | 247,978 | -36.74% | | Current liabilities | | | | | Trade and other payables | 145,652 | 124,090 | +17.38% | | Contract liabilities | 86,316 | 66,609 | +29.59% | | Total equity | | | | | Equity attributable to owners of the Company | 1,433,276 | 1,412,690 | +1.46% | - Net current assets increased from HK$352,404 thousand as at December 31, 2024 to HK$394,960 thousand as at June 30, 202595 Condensed Consolidated Statement of Changes in Equity Equity Changes Overview For the six months ended June 30, 2025, equity attributable to owners of the Company increased from HK$1,412,690 thousand at the beginning of the period to HK$1,433,276 thousand. The increase in profit for the period and currency translation reserve offset the impact of share repurchases and dividend payments Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30) | Item | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Equity attributable to owners of the Company at beginning of period | 1,412,690 | 1,469,072 | | Profit (loss) for the period | 14,481 | 29,060 | | Exchange differences on translating foreign operations | 14,336 | (6,669) | | Share repurchases | (592) | (11,304) | | Dividends | (7,639) | (7,653) | | Equity attributable to owners of the Company at end of period | 1,433,276 | 1,472,506 | Condensed Consolidated Statement of Cash Flows Cash Flow Overview For the six months ended June 30, 2025, net cash from operating activities significantly increased, but investing activities resulted in net cash outflow, mainly due to increased placements of bank deposits and debt instrument investments. Net cash outflow from financing activities decreased, and overall cash and cash equivalents saw a net decrease at period-end Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Item | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Net cash from operating activities | 79,518 | 37,869 | | Net cash (used in) from investing activities | (166,280) | 131,107 | | Net cash used in financing activities | (9,383) | (13,814) | | Net (decrease) increase in cash and cash equivalents | (96,145) | 155,162 | | Cash and cash equivalents at end of period | 157,077 | 291,959 | - Net cash from operating activities increased, mainly due to a decrease in trade and other receivables and contract assets, and an increase in contract liabilities98 - Net cash outflow from investing activities was primarily due to increased placements of bank deposits and debt instrument investments, despite proceeds from redemption of debt instruments98 Notes to the Condensed Consolidated Financial Statements Basis of Preparation and Accounting Policies The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the Listing Rules, using the historical cost convention, and applying revised Hong Kong Financial Reporting Standards issued by the HKICPA, with no significant impact on financial position and performance - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and the applicable disclosure requirements of Appendix D2 to the Listing Rules100 - These condensed consolidated financial statements are prepared on the historical cost basis, except for certain buildings and financial instruments that are measured at revalued amounts or fair value102 - The application of the revised Hong Kong Financial Reporting Standards had no significant impact on the Group's financial position and performance for the current and prior periods103 Revenue and Segment Information The Group's revenue from contracts with customers primarily derives from construction contracts for electroplating machinery and provision of services. Revenue is geographically segmented, with China being the largest contributor. The Group reports segments based on three business natures: electroplating equipment, property investment, and fund management Revenue from Contracts with Customers (by type of goods or services) | Type of Goods or Services | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Construction contracts for electroplating machinery (Printed Circuit Board) | 136,376 | 127,300 | | Construction contracts for electroplating machinery (Surface Finishing) | 30,792 | 35,996 | | Sales of spare parts for electroplating machinery | 4,775 | 6,787 | | Provision of services – repair, maintenance and modification | 41,686 | 28,643 | | Total | 213,629 | 198,726 | Geographical Analysis of Revenue from External Customers | Region | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | | :--- | :--- | :--- | | People's Republic of China | 111,864 | 67,347 | | Thailand | 25,177 | – | | Netherlands | 18,463 | – | | United States | 15,610 | 35,692 | | South Korea | 459 | 53,251 | - The Group is internally organised and reports segments based on three business natures: electroplating equipment, property investment, and fund management105 Segment Revenue and Results (For the six months ended June 30) | Segment | 2025 Revenue (HK$ Thousand) | 2024 Revenue (HK$ Thousand) | 2025 Profit (Loss) (HK$ Thousand) | 2024 Profit (Loss) (HK$ Thousand) | | :--- | :--- | :--- | :--- | :--- | | Electroplating Equipment | 213,629 | 198,726 | 17,428 | 16,087 | | Property Investment | 7,540 | 5,118 | (48,042) | (14,158) | | Fund Management | 15,775 | 16,729 | 55,873 | 32,478 | | Total Segment Revenue/Results | 236,944 | 220,573 | 25,259 | 34,407 | Taxation and Profit for the Period Composition The Group's tax expense for the period was HK$1,255 thousand, primarily comprising Hong Kong profits tax, overseas tax, and deferred tax expense. Profit for the period was stated after deducting depreciation, interest income from deferred consideration, interest income from loans receivable, net exchange gains, and net fair value changes on investments at fair value through profit or loss Taxation (For the six months ended June 30) | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Hong Kong profits tax | 227 | – | | Overseas tax (current period expense) | 452 | 302 | | Over-provision in prior years | – | (3,909) | | Deferred tax expense | 576 | 1,508 | | Total | 1,255 | (2,099) | - Profit for the period was stated after deducting depreciation of property, plant and equipment and right-of-use assets of HK$3,326 thousand109 - Profit for the period included interest income from deferred consideration of HK$8,593 thousand and interest income from loans receivable of HK$807 thousand109 - Profit for the period included net exchange gains of HK$6,240 thousand and net fair value changes on investments at fair value through profit or loss of HK$30,705 thousand109 Dividends and Earnings Per Share The company declared and paid a final dividend of HK$0.02 per share for 2024 and decided to pay an interim dividend of HK$0.01 per share for 2025. As at June 30, 2025, basic earnings per share were 3.79 HK Cents, a decrease from the prior year - A final dividend of HK$0.02 per share for the year ended December 31, 2024, totaling HK$7,639 thousand, was declared and paid on July 24, 2025110 - The Directors decided to pay an interim dividend of HK$0.01 per share, totaling HK$3,819 thousand110 - For the six months ended June 30, 2025, basic earnings per share were 3.79 HK Cents, compared to 7.58 HK Cents for the same period last year111 Investment Properties and Deferred Consideration The fair value of investment properties decreased due to market weakness, standing at HK$644,543 thousand as at June 30, 2025. Net deferred consideration was HK$106,212 thousand, with credit impairment incurred and an impairment loss of HK$6,288 thousand recognized Fair Value Changes of Investment Properties | Item | Jun 30, 2025 (HK$ Thousand) | Dec 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Fair value at beginning of period | 689,387 | 779,718 | | Currency adjustment | 8,155 | (4,239) | | Net decrease in fair value recognized in profit or loss | (52,999) | (21,482) | | Fair value at end of period | 644,543 | 753,997 | - Investment property fair value was assessed by independent valuers using the direct comparison method, with a decrease in market range114 - Net deferred consideration was HK$106,212 thousand, not expected to be settled within one year, classified as a non-current asset115 - During the interim period, an impairment loss of HK$6,288 thousand under the expected credit loss model was recognized in profit or loss115 Debt Instruments and Equity Investments The Group's debt instrument investments are measured at amortized cost, primarily consisting of investment-grade bonds aimed at collecting contractual cash flows. The equity investment portfolio mainly comprises blue-chip companies, with China Mobile accounting for over 70% of the carrying value of investments at fair value through profit or loss - Debt instrument investments are measured at amortized cost, primarily investment-grade bonds with coupon rates from 0% to 8% and maturities from July 2025 to February 2033116 - The Group's equity investment portfolio mainly consists of blue-chip companies, with the largest equity investment being a leading telecommunications service provider in China (China Mobile), accounting for over 70% of the carrying value of investments at fair value through profit or loss116 Trade and Other Receivables and Payables As at June 30, 2025, net trade receivables were HK$40,549 thousand, with credit terms generally one to two months. Trade payables were HK$96,098 thousand, with most aged within 0-60 days Trade and Other Receivables and Prepayments (As at June 30) | Item | Jun 30, 2025 (HK$ Thousand) | Dec 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Trade receivables (net) | 40,549 | 50,096 | | Rental and management fee receivables | 7,618 | 5,193 | | Balances with brokers | 9,753 | 2,835 | | Total | 81,938 | 86,148 | Ageing Analysis of Trade Receivables (As at June 30) | Ageing | Jun 30, 2025 (HK$ Thousand) | Dec 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | 0 – 60 days | 38,558 | 47,485 | | 61 – 120 days | 1,351 | 584 | | 121 – 180 days | 443 | 410 | | Over 180 days | 197 | 1,617 | Trade and Other Payables and Accrued Expenses (As at June 30) | Item | Jun 30, 2025 (HK$ Thousand) | Dec 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Trade payables | 96,098 | 63,092 | | Accrued employee costs | 17,355 | 18,178 | | Provision for performance-related bonuses to directors and key management personnel | 72 | 10,072 | | Total | 145,652 | 124,090 | Ageing Analysis of Trade Payables (As at June 30) | Ageing | Jun 30, 2025 (HK$ Thousand) | Dec 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | 0 – 60 days | 26,978 | 35,737 | | 61 – 120 days | 31,040 | 7,789 | | 121 – 180 days | 19,324 | 5,240 | | Over 180 days | 18,756 | 14,326 | Share Capital and Deferred Tax As at June 30, 2025, the company's issued and fully paid share capital was HK$3,820 thousand, reduced by the repurchase and cancellation of 700,000 own shares. Net deferred tax liabilities were HK$26,554 thousand, primarily arising from deferred consideration Share Capital Movement | Item | Number of Shares (Thousand shares) | Total Amount (HK$ Thousand) | | :--- | :--- | :--- | | As at December 31, 2024 | 382,633 | 3,827 | | Share repurchases and cancellations | (700) | (7) | | As at June 30, 2025 | 381,933 | 3,820 | - Net deferred tax liabilities were approximately HK$26,554 thousand, primarily arising from deferred consideration, with a related deferred tax expense of HK$576 thousand recognized in the interim period122 Fair Value Measurement of Financial Instruments and Related Party Transactions The Group's investments in Hong Kong-listed equity securities are measured at fair value through profit or loss, classified as Level 1 in the fair value hierarchy. The Group has loan financing and brokerage service transactions with Good Faith Financial Group (a related party) and pays remuneration to key management personnel - The Group's investments in Hong Kong-listed equity securities have a fair value of HK$240,680 thousand, classified as Level 1 in the fair value hierarchy123 - The Group provided loan financing to Good Faith Financial Group (a related party), with no interest income earned from it during the interim period124 - The Group appointed Good Faith Financial Group as a securities investment broker, and approximately HK$45 thousand in securities transaction expenses were paid during the interim period124 - Remuneration paid to key management personnel for the six months ended June 30, 2025, was approximately HK$19,824 thousand124