百利保控股(00617) - 2025 - 中期财报

Company Information Company Basic Information This section discloses the company's basic information, including board members (executive and independent non-executive directors), committee members, company secretary, auditor, principal bankers, share registrar, registered office, and head office - Board members include Chairman and Chief Executive Officer Mr. Lo Yuk Sui, Vice Chairman and Managing Director Mr. Lo Chun To as executive directors, and Mr. Leung Po Wing, Ms. Ng Wing Mui as independent non-executive directors[9] - Composition of the Audit Committee, Remuneration Committee, and Nomination Committee[9] - The company's auditor is Ernst & Young, with principal bankers including Bank of Communications and The Bank of East Asia[9] Directors' Biographies Board Members' Background and Responsibilities This section details the personal backgrounds, ages, key positions, educational and professional qualifications, tenure, and other significant appointments of the company's board members, including roles in associated companies like Century City, Regal Hotels, and Cosmopolitan International - Mr. Lo Yuk Sui (80 years old): Chairman and Chief Executive Officer, appointed Chairman and Managing Director since 1993, and Chief Executive Officer in 2007, coordinating the Group's overall policies and decisions[11] - Mr. Lo Chun To (51 years old): Vice Chairman and Managing Director, appointed to the Board in 1999, primarily involved in overseeing the Group's property projects and Century City Group's business development[12] - Ms. Lo Po Man (45 years old): Executive Director, appointed to the Board in 2007, primarily responsible for coordinating the Group's hotel operations and Century City Group's corporate investment and business development[15] - Mr. Leung Po Wing (75 years old): Independent Non-Executive Director, formerly Director of the Hong Kong Special Administrative Region Government's Beijing Office, with extensive experience in corporate leadership and public affairs[13] Chairman's Statement Financial Performance For the six months ended June 30, 2025, the Group's consolidated loss attributable to shareholders decreased to HKD 613.4 million from HKD 676.3 million, with gross profit at HKD 403.8 million and an operating loss of HKD 24.7 million, primarily due to fair value losses on investment properties and impairment losses on properties held for sale | Metric | H1 2025 (HKD million) | H1 2024 (HKD million) | Change | | :--- | :--- | :--- | :--- | | Consolidated Loss Attributable to Shareholders | 613.4 | 676.3 | Loss narrowed | | Gross Profit | 403.8 | 414.2 | Decrease | | Operating Loss/(Profit) Before Depreciation, Finance Costs and Tax | (24.7) | 78.0 | Turned to loss | | Fair Value Loss on Investment Properties and Impairment Loss on Properties Held for Sale | 200.8 | N/A | Increase | | Depreciation Expense for Hotel Properties | 335.4 | 338.4 | Slight decrease | - Adjusted Net Asset Value: If Hong Kong hotel properties were revalued at market price, net asset value per share would be HKD 12.57[23] Business Review The Group's diversified businesses include property, hotels, aircraft ownership and leasing, financial assets, and other investments, with stable Hong Kong residential demand and improved hotel performance, while non-core assets were divested - The Group currently comprises four listed companies with diversified business interests including property, hotels, aircraft ownership and leasing, and financial assets and other investments[24] - The Group directly holds approximately 69.3% controlling interest in Regal through its wholly-owned subsidiary, and Regal holds approximately 74.9% of the issued fund units of Regal REIT[24] - The Group's property development and investment business in Hong Kong is primarily conducted through P&R Holdings Limited, a 50/50 joint venture between Regal and the Company[25] Property Hong Kong's property market faces tight liquidity and high inventory, but residential demand remains stable, with the Group's 'Regal Hill' project showing sales progress and other investment properties held - Total sales transactions for Hong Kong residential properties continue to rise, with the downward trend in property prices narrowing, suggesting the market may be entering an upward cycle[26] - Regal Hill project: Since early 2025, a total of 18 apartment units and 1 house have been sold or are under agreement for sale, with 3 houses and a total of 59 apartment units still held for sale[26] - Other properties held by P&R include: We Go MALL in Ma On Shan, Shatin, Regal Oriental Hotel and iclub Sheung Wan Hotel (50% interest), and commercial/residential development sites in Kinhua Street, Shau Kei Wan and Castle Peak Road[27] Regal Hotels International Holdings Limited Regal Hotels International Holdings Limited's consolidated loss attributable to shareholders significantly narrowed to HKD 677.6 million, driven by reduced financial asset fair value losses and lower finance costs, with improved hotel operations and ongoing non-core asset disposals in London and Lisbon | Metric | H1 2025 (HKD million) | H1 2024 (HKD million) | Change | | :--- | :--- | :--- | :--- | | Consolidated Loss Attributable to Shareholders | 677.6 | 1,599.2 | Loss significantly narrowed | | Fair Value Gain/(Loss) on Financial Assets | 6.6 | (932.6) | Turned to gain | | Operating Profit/(Loss) Before Interest, Tax, Depreciation and Amortisation | 85.4 | (734.8) | Turned to profit | - Hong Kong hotel average occupancy rate increased from 83.0% in 2024 to 85.0% in 2025, but actual average room rate decreased by 10.8%, leading to an 8.6% year-on-year reduction in average RevPAR[32] - Regal Airport Hotel's business remained stable and further improved in occupancy and average RevPAR compared to the prior period, with HKD 2.95 billion refinancing completed[33][34] - Regal Group has entered into conditional agreements to dispose of properties in London, UK (GBP 19.5 million) and Lisbon, Portugal (EUR 9.3 million) as part of its non-core asset disposal plan[39][40] - Aircraft ownership and leasing business: Regal Group further disposed of its remaining investment interests in this business segment in 2024[41] Cosmopolitan International Holdings Limited Cosmopolitan International Holdings Limited's consolidated loss attributable to shareholders significantly decreased to HKD 56.5 million, primarily due to lower tax expenses, despite a weak China property market and slow sales in Chengdu and Tianjin projects, with active plans to divest remaining commercial units | Metric | H1 2025 (HKD million) | H1 2024 (HKD million) | Change | | :--- | :--- | :--- | :--- | | Consolidated Loss Attributable to Shareholders | 56.5 | 169.0 | Loss decreased | - The decrease in loss was mainly attributable to lower tax expenses, as the prior period in 2024 saw a significant increase in tax expenses due to a revised basis for allocating China property project development costs[42] - The overall property market conditions in China remained weak, with slow progress in property sales for the two integrated development projects (primarily comprising commercial and retail components) in Chengdu and Tianjin[43] - For the Chengdu Regal International City project, all development works are substantially completed, and Cosmopolitan Group is actively planning to sell the remaining commercial and office units on a block and individual unit basis[43] Outlook Hong Kong's business outlook remains challenging due to macroeconomics and geopolitics, despite tourism recovery, with the Group anticipating positive interest rate impacts from potential HIBOR and Fed rate cuts, while continuing non-core asset disposals and hoping for China's property market stabilization - The overall business outlook for Hong Kong remains challenging; despite a steady increase in total visitor arrivals, mainland tourists' consumption habits have shifted towards cultural and in-depth experiences, leading to a decrease in per capita spending[44] - The Hong Kong Government is actively promoting the "Hong Kong Everywhere" concept and launching nine new tourist attractions to solidify its position as Asia's premier events and entertainment hub[44] - HIBOR has been at a relatively low level over the past two months, and the US Federal Reserve is generally expected to cut interest rates in the second half of this year, which may have a positive impact on Hong Kong's interest rate environment[45] - Regal Group will continue its asset disposal plan to reduce its debt level and strengthen its overall financial position[45] - Cosmopolitan Group believes that the Central Government will continue to introduce supportive fiscal policies and administrative measures to stimulate demand and restore market confidence, thereby stabilizing the China property sector[46] - Paliburg Group's management is taking proactive steps to strengthen the Group's financial foundation through planned disposals of certain non-core assets[47] Management Discussion and Analysis Business Review This section reviews the Group's main business operations, including P&R Holdings' Hong Kong property developments, Regal Hotels' local and overseas hotel and property projects with ongoing non-core asset sales, Cosmopolitan International's slow-selling China projects, and the Group's construction and financial asset investment activities - The Group's significant investments and principal businesses primarily include property development and investment, construction and building-related business, hotel ownership, hotel operations and management, asset management, aircraft ownership and leasing, and other investments (including financial asset investments)[50] - P&R Holdings Limited (P&R) is a 50/50 joint venture with Regal, effectively a subsidiary of the Company, engaged in developing real estate projects for sale and/or lease, and undertaking related investment and financing activities[52] P&R Holdings Limited P&R Holdings manages various Hong Kong property projects, with completed sales for some residential units, ongoing sales for others like Regal Hill, stable rental income from We Go MALL, and operational hotels, while new developments are in planning or demolition phases - The Shing and Regal Hill projects in Tan Kwai Tsuen Road, Yuen Long, New Territories: All units in The Shing apartment building have been sold, and 7 houses at Regal Hill are retained for sale[53] - We Go MALL in Po Tai Street, Ma On Shan, Shatin, New Territories: Developed as a shopping mall, opened in 2018, held for rental income, with stable leasing conditions during the period[54] - The Shing in Shun Ning Road, Sham Shui Po, Kowloon: All residential units and certain shops and parking spaces have been sold, with 2 remaining shops and 5 parking spaces continuing to be offered for sale[55] - Regal Hill in Lai Ping Road, Kau To, Shatin, New Territories: To date, a total of 21 garden houses and 77 apartment units have been sold or are under agreement for sale, with total sales proceeds of HKD 5.2185 billion[57] - iclub Mong Kok Hotel in Anchor Street, Mong Kok, Kowloon: Opened in March 2019, operated by P&R and managed by Regal Group[58] - iclub Sheung Wan Hotel in Bonham Strand West, Sheung Wan, Hong Kong: P&R holds a 50% interest, officially opened in November 2020, operated by the joint venture and managed by Regal Group[60] Regal Hotels International Holdings Limited Regal Group operates the 1,208-room Regal Airport Hotel in Hong Kong, has sold most units at The Shing project, retains 8 villas at Regal Bay, and is divesting overseas properties in London (GBP 19.5 million) and Lisbon (EUR 9.3 million), while its Barcelona hotel generates stable rental income - Regal Airport Hotel at Hong Kong International Airport: Officially opened in April 2023, with 1,208 rooms and suites, and awarded BEAM Plus Gold and EarthCheck Design Gold certifications[63][64] - The Shing in Queen's Road West, Hong Kong: The remaining 123 residential units were relaunched for sale in June this year, and to date, a total of 120 relaunched residential units have been sold or are under agreement for sale, with total sales proceeds of HKD 898.7 million[65] - Regal Bay in Wong Ma Kok Road, Stanley, Hong Kong: Regal Group still retains 8 garden houses, and some of these garden houses will continue to be offered for sale if satisfactory offers are received[67] - 41 Kingsway property in London, UK: A conditional agreement has been entered into for the disposal of the entire equity interest in its wholly-owned subsidiary, with a total purchase price of GBP 19.5 million (equivalent to approximately HKD 204.1 million)[69] - Fabrik at Rua Dos Fanqueiros 156, Lisbon, Portugal: An agreement has been entered into for the disposal of the entire equity and loan interests in the project company, with a cash consideration of EUR 9.3 million (equivalent to approximately HKD 83.9 million)[71] Cosmopolitan International Holdings Limited Cosmopolitan International's China property developments include Chengdu Regal International City and Tianjin Regal New Gate, with residential units largely sold, ongoing commercial sales, and plans to divest remaining commercial and office units in Chengdu, while the Tianjin commercial market remains weak, and the Xinjiang project is in afforestation - Chengdu project – Regal International City: All residential units in Phase 3 were sold in prior years, sales of shops and parking spaces are ongoing, and the hotel has obtained completion certificates and property ownership certificates[72][73] - Remaining commercial portion of Chengdu project: Includes a commercial complex and five office towers, with active plans to sell these remaining units on a block and individual unit basis[73] - Tianjin project – Regal New Gate: All residential units have been sold, shop sales plans are ongoing, and the remaining office properties will continue to be monitored for market conditions for sale[75] - Xinjiang project: Afforestation has been completed on approximately 4,300 mu of land, with approximately 1,843 mu of land to be available for real estate development in the future[76] Construction and Building-Related Business The Group's wholly-owned Righteous Engineering Limited serves as the main contractor and construction manager for P&R residential and hotel projects, including Regal Hill and Regal Airport Hotel, while also seeking public contracts and providing comprehensive development consultancy services - Righteous Engineering Limited: Wholly-owned by the Group, serving as the main contractor for P&R residential projects and other hotel projects, and responsible for construction management of the Regal Hill project and Regal Airport Hotel[77] - Development Consultancy Division: Provides professional services including development appraisal, project management, architecture, interior design, quality control, and quantity surveying from project inception to completion[77] Financial Assets and Other Investments The Group holds a substantial investment portfolio including listed securities, funds, private equity, bonds, and treasury products, recording a net loss in its financial asset investment business during the review period - The Group holds a substantial investment portfolio including listed securities and other investments, comprising investment funds, private equity, bonds, and treasury and yield enhancement products[78] - During the review period, the Group recorded a net loss in its financial asset investment business[78] Financial Review This section reviews the Group's financial position as of June 30, 2025, with an unaudited adjusted net asset value per share of HKD 12.57 if Hong Kong hotel properties were revalued at market price, noting improved cash flow, slightly increased gearing, and compliance with loan covenants, alongside disclosures on lease liabilities, pledged assets, capital commitments, contingent liabilities, share capital, dividends, and post-reporting events - The Group's overall business operations have consistently adopted prudent funding and financial policies[81] Asset Value The Group's Hong Kong hotel properties are accounted for at fair value as of May 7, 2012, plus capital additions less depreciation; revaluing them to market price as of June 30, 2025, would result in an unaudited adjusted net asset value of HKD 12.57 per ordinary share | Metric | Jun 30, 2025 (HKD million) | Per Ordinary Share (HKD) | | :--- | :--- | :--- | | Book Net Asset Value Attributable to Owners of the Parent | 7,952.5 | 7.13 | | Hotel Properties Revaluation Adjustment at Market Value | 6,056.2 | 5.44 | | Unaudited Adjusted Net Asset Value Attributable to Owners of the Parent | 14,008.7 | 12.57 | Capital Resources and Funding The Group maintains prudent funding and financial policies, with cash primarily held in banks, funding Hong Kong property developments through internal resources and HIBOR-linked bank loans, and China projects through internal funds and pre-sales, while managing interest and exchange rate risks for its predominantly HKD-denominated bank borrowings - Cash balances are primarily held as bank deposits and invested in treasury and yield enhancement products when deemed appropriate[81] - Funding for Hong Kong property development projects is partly from internal resources and partly from bank loans, with interest rates determined by reference to HIBOR[81] - Most funding for China property development projects is provided by internal resources and proceeds from pre-sales of units[81] - The Group's bank borrowings are predominantly denominated in HKD, with interest primarily determined by reference to HIBOR, and the Group may consider using USD or HKD as hedging instruments for part or all of its investment amounts to control exchange rate fluctuation risks[81] Cash Flow During the review period, net cash flow from operating activities significantly increased to HKD 198.3 million from HKD 21 million in the prior period, while net interest expenses decreased to HKD 472.9 million from HKD 593.5 million | Metric | H1 2025 (HKD million) | H1 2024 (HKD million) | Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 198.3 | 21.0 | Significantly increased | | Net Interest Expense | 472.9 | 593.5 | Decrease | Debt and Gearing Ratio As of June 30, 2025, the Group's cash and bank balances plus time deposits totaled HKD 982.6 million, with net debt at HKD 18.5247 billion, resulting in a gearing ratio of 52.8% (up from 50.8%), or 40.4% if hotel properties are revalued at market price | Metric | Jun 30, 2025 (HKD million) | Dec 31, 2024 (HKD million) | Change | | :--- | :--- | :--- | :--- | | Cash and Bank Balances with Time Deposits | 982.6 | 1,404.2 | Decrease | | Debt Net of Cash and Bank Balances with Time Deposits | 18,524.7 | 18,332.2 | Slight increase | | Gearing Ratio (Based on Book Total Assets) | 52.8% | 50.8% | Increase | | Gearing Ratio (Based on Adjusted Total Assets) | 40.4% | 38.9% | Increase | Lease Liabilities As of June 30, 2025, the Group's lease liabilities decreased to HKD 9.2 million from HKD 10.8 million as of December 31, 2024 | Metric | Jun 30, 2025 (HKD million) | Dec 31, 2024 (HKD million) | Change | | :--- | :--- | :--- | :--- | | Lease Liabilities | 9.2 | 10.8 | Decrease | Pledged Assets As of June 30, 2025, the Group pledged HKD 28.5113 billion in assets, including properties under development, plant and equipment, investment properties, right-of-use assets, properties held for sale, time deposits, and bank balances, to secure bank loans and lease guarantees, with shares in listed subsidiaries and other property companies also pledged - As of June 30, 2025, the Group's properties under development and certain of the Group's property, plant and equipment, investment properties, right-of-use assets, properties held for sale, time deposits and bank balances totaling HKD 28.5113 billion were pledged to secure general bank loans and related bank guarantees granted to the Group[87] - As of June 30, 2025, certain ordinary shares in a listed subsidiary with a market value of HKD 54.2 million were pledged to secure general bank loans granted to the Group[87] Capital Commitments Details of the Group's capital commitments as of the reporting period are provided in Note 17 to the condensed consolidated financial statements - Details of the Group's capital commitments as of June 30, 2025, are set out in Note 17 to the condensed consolidated financial statements[89] Contingent Liabilities Details of the Group's contingent liabilities as of the reporting period are provided in Note 16 to the condensed consolidated financial statements - Details of the Group's contingent liabilities as of June 30, 2025, are set out in Note 16 to the condensed consolidated financial statements[90] Share Capital There was no change in the company's share capital during the review period - There was no change in the company's share capital during the review period[91] Dividends The Board resolved not to declare an interim dividend for the financial year ending December 31, 2025 - The Board resolved not to declare an interim dividend for the financial year ending December 31, 2025 (2024: nil)[92] Events After Reporting Period Details of events after the reporting period are provided in Note 19 to the condensed consolidated financial statements - Details of significant events after the reporting period for the Group are set out in Note 19 to the condensed consolidated financial statements[93] Significant Acquisitions or Disposals of Subsidiaries or Associates There were no significant acquisitions or disposals of the company's subsidiaries or associates during the review period - During the review period, there were no significant acquisitions or disposals of the company's subsidiaries or associates[94] Employees and Remuneration Policy The Group employs approximately 1,610 staff in Hong Kong and China, with remuneration based on market conditions and individual contributions, and benefits including MPF, medical/life insurance (Hong Kong), and social security/housing provident funds (China) - The Group employs approximately 1,610 staff in Hong Kong and China[95] - Employee remuneration is generally determined based on market conditions and individual contributions, with salaries reviewed annually considering individual performance and other relevant factors[95] - Employee benefits provided by the Group include a Mandatory Provident Fund Scheme and medical and life insurance for employees in Hong Kong, and social security funds and housing provident funds for employees in China[95] Condensed Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, the Group reported revenue of HKD 1.186 billion, gross profit of HKD 403.8 million, an operating loss of HKD 370.8 million, a loss before tax of HKD 894 million, and a loss attributable to owners of the parent of HKD 613.4 million, impacted by fair value and impairment losses | Metric | H1 2025 (HKD million) | H1 2024 (HKD million) | Change | | :--- | :--- | :--- | :--- | | Revenue | 1,186.0 | 1,392.0 | Decrease | | Gross Profit | 403.8 | 414.2 | Decrease | | Fair Value Loss on Investment Properties (Net) | (168.0) | (101.7) | Loss widened | | Fair Value Loss on Financial Assets at FVTPL (Net) | (0.2) | (70.5) | Loss significantly narrowed | | Operating Loss | (370.8) | (278.6) | Loss widened | | Finance Costs | (521.4) | (651.9) | Decrease | | Loss Before Tax | (894.0) | (933.5) | Loss narrowed | | Loss Attributable to Owners of the Parent | (613.4) | (676.3) | Loss narrowed | | Basic and Diluted Loss Per Ordinary Share | HKD (0.59) | HKD (0.64) | Loss narrowed | Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, the Group's total comprehensive loss narrowed to HKD 839.9 million from HKD 1.0736 billion, primarily influenced by fair value changes in cash flow hedges, foreign currency translation differences, and fair value changes of financial assets designated at fair value through other comprehensive income | Metric | H1 2025 (HKD million) | H1 2024 (HKD million) | Change | | :--- | :--- | :--- | :--- | | Total Comprehensive Loss for the Period | (839.9) | (1,073.6) | Loss narrowed | | Fair Value Change of Cash Flow Hedges | (50.1) | 10.5 | Turned to loss | | Exchange Differences on Translation of Overseas Operations | 107.5 | (61.6) | Turned to gain | | Fair Value Change of Financial Assets Designated at FVTOCI | (0.8) | 2.7 | Turned to loss | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total non-current assets were HKD 25.9886 billion, total current assets HKD 9.0663 billion, total current liabilities HKD 7.965 billion, total non-current liabilities HKD 14.3912 billion, and net assets HKD 12.6987 billion | Metric | Jun 30, 2025 (HKD million) | Dec 31, 2024 (HKD million) | Change | | :--- | :--- | :--- | :--- | | Total Non-Current Assets | 25,988.6 | 26,893.0 | Decrease | | Total Current Assets | 9,066.3 | 9,227.8 | Decrease | | Total Current Liabilities | (7,965.0) | (7,697.1) | Increase | | Total Non-Current Liabilities | (14,391.2) | (14,943.9) | Decrease | | Net Assets | 12,698.7 | 13,479.8 | Decrease | | Equity Attributable to Owners of the Parent | 7,952.5 | 8,484.9 | Decrease | Condensed Consolidated Statement of Changes in Equity For the six months ended June 30, 2025, the loss attributable to owners of the parent was HKD 613.4 million, with a total comprehensive loss of HKD 566.7 million, primarily impacted by the period's loss, cash flow hedges, foreign currency translation differences, and fair value changes of financial assets at fair value through other comprehensive income | Metric | H1 2025 (HKD million) | H1 2024 (HKD million) | Change | | :--- | :--- | :--- | :--- | | Loss Attributable to Owners of the Parent for the Period | (613.4) | (676.3) | Loss narrowed | | Total Comprehensive Income/(Loss) Attributable to Owners of the Parent for the Period | (566.7) | (711.6) | Loss narrowed | - Cash flow hedges resulted in a decrease of HKD 24.5 million in equity attributable to owners of the parent[103] - Exchange differences on translation of overseas operations resulted in an increase of HKD 71.7 million in equity attributable to owners of the parent[103] Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2025, net cash flow from operating activities was HKD 198.3 million, from investing activities HKD 158.2 million, and used in financing activities HKD 688.3 million, with cash and cash equivalents totaling HKD 349 million at period-end | Metric | H1 2025 (HKD million) | H1 2024 (HKD million) | Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 198.3 | 21.0 | Significantly increased | | Net Cash Flow from Investing Activities | 158.2 | 338.9 | Decrease | | Net Cash Flow Used in Financing Activities | (688.3) | (955.6) | Decrease | | Cash and Cash Equivalents at End of Period | 349.0 | 789.8 | Decrease | Notes to the Condensed Consolidated Financial Statements The notes to the financial statements provide detailed explanations and supplementary information on accounting policies, segment data, revenue, loss before tax, finance costs, income tax, dividends, EPS, receivables/payables, bank borrowings, pledged assets, contingent liabilities, capital commitments, fair value of financial instruments, and post-reporting events - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants[111] - The condensed consolidated financial statements are prepared on the assumption that the Group can continue as a going concern, and the Group believes it will have sufficient working capital to fund its operations for the next 12 months from June 30, 2025[113] 1. Accounting Policies and Basis of Preparation The condensed consolidated financial statements are prepared in accordance with HKAS 34 and should be read with the 2024 annual financial statements, with no significant impact from newly adopted HKFRS, and are based on a going concern assumption with sufficient working capital for the next 12 months - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants[111] - The revised Hong Kong Accounting Standard 21 "Lack of Exchangeability" has no impact on the condensed consolidated financial statements[112] - The condensed consolidated financial statements are prepared on the assumption that the Group can continue as a going concern, and the Group believes it will have sufficient working capital to fund its operations for the next 12 months from June 30, 2025[113] 2. Segment Information The Group's business is categorized into seven segments: property development and investment, construction, hotel operations and ownership, asset management, financial asset investment, aircraft ownership and leasing, and other, with performance assessed based on adjusted profit/loss before tax - The composition of the Group's business units is classified according to the products and services of each business unit, and accordingly, there are seven operating segments to be presented: property development and investment, construction and building-related business, hotel operations and management and hotel ownership, asset management, financial asset investment, aircraft ownership and leasing, and other[114][116] - Segment performance is assessed based on the reported segment profit (loss) (i.e., measuring adjusted profit (loss) before tax)[114] | Segment | H1 2025 Segment Revenue (HKD million) | H1 2025 Segment Result Before Depreciation (HKD million) | | :--- | :--- | :--- | | Property Development and Investment | 264.2 | (204.8) | | Construction