万裕科技(00894) - 2025 - 中期财报

Company Information This section provides an overview of the company's governance structure and contact details Board of Directors and Committees This section lists the company's board members (executive directors, independent non-executive directors) and the composition of various committees (Audit Committee, Remuneration Committee, Nomination Committee) - The Board of Directors includes executive directors such as Chairperson Ms. Ji Chulian, Managing Director Mr. Chen Yucheng, and CFO and Company Secretary Mr. Chen Dachang, as well as independent non-executive directors Mr. Luo Guogui, Mr. Ma Shaoyuan, and Mr. Rong Yongqi[3] - The Audit Committee is chaired by Mr. Ma Shaoyuan, the Remuneration Committee by Mr. Luo Guogui, and the Nomination Committee by Mr. Rong Yongqi[3] Company Contact Information This section provides essential company information including registered office, principal place of business, share registrar, company website, investor relations contact, and stock code - The Company Secretary is Mr. Chen Dachang, and the auditor is KPMG[3] - The stock code is 00894, the company website is www.manyue.com, and the investor relations email is ir@manyue.com[4] Management Discussion and Analysis This section reviews the group's financial performance, business operations, liquidity, and future outlook Financial Highlights This section summarizes key financial metrics for the six months ended June 30, 2025, showing stable revenue and growth in gross profit and profit attributable to shareholders Unaudited Financial Highlights for the Six Months Ended June 30 | Indicator | 2025 (HK$ '000) | 2024 (HK$ '000) | Change | | :--- | :--- | :--- | :--- | | Revenue | 816,637 | 815,977 | +0.1% | | Gross Profit | 137,257 | 133,039 | +3.2% | | EBITDA | 66,673 | 68,704 | -3.0% | | Profit Attributable to Shareholders | 4,405 | 2,756 | +59.8% | | Earnings Per Share | 0.93 HK cents | 0.58 HK cents | +60.3% | Financial Performance The group achieved robust financial performance with significant net profit growth, driven by strategic portfolio adjustments and cost control amidst global trade tensions and tariff changes - Revenue remained stable at HK$816.64 million, consistent with the same period in 2024, despite global trade tensions and tariff adjustments[7] - Gross profit margin remained stable year-on-year at approximately 16%, attributed to product portfolio optimization and improved operational efficiency[7] - Finance costs decreased by nearly 16% compared to the same period in 2024, primarily due to loan portfolio restructuring, converting high-interest HKD financing to lower-interest RMB financing[8] - Net profit attributable to shareholders increased by 59.8% from HK$2.76 million to HK$4.41 million, mainly due to cost control, new product commercialization, reduced finance costs, and enhanced operational efficiency[6][8] Business Review The group demonstrated strong resilience, capitalizing on high-growth opportunities in advanced energy and AI infrastructure to offset traditional market slowdowns, achieving profit growth through operational optimization and R&D investment Market Overview The global passive electronic components market remained stable, with the group successfully strengthening its position in high-growth areas like advanced energy (energy storage systems) and AI infrastructure, offsetting sluggish demand in traditional applications - Strong demand in the advanced energy storage sector drove growth for specialized passive components such as high-voltage capacitors[9] - The AI revolution created immense demand for specialized passive components, with AI servers and accelerators requiring more components than traditional servers and commanding price premiums[9] - The group achieved stable revenue of HK$816.64 million by focusing R&D on advanced energy, adjusting its product portfolio, and optimizing manufacturing capabilities[9] Operational Review The group enhanced operational efficiency and competitive standing through advanced production optimization, stringent cost control, supply chain optimization, and R&D investment, supporting net profit growth - Implemented advanced production optimization technologies and stringent cost controls, enhancing manufacturing efficiency[10] - R&D investments in advanced energy (AI infrastructure and advanced energy storage solutions) achieved success, expanding market share[10] - Financial discipline, including comprehensive cost optimization and targeted R&D investments, is central to operations[10] Liquidity and Financial Resources The group experienced a decrease in cash and cash equivalents and a slight increase in net gearing ratio, but maintained a healthy current ratio while closely monitoring foreign exchange risks Overview of Liquidity and Financial Resources | Indicator | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | Change | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 143,790 | 208,170 | -30.9% | | Total Outstanding Bank and Other Borrowings | 976,090 | 1,002,050 | -2.6% | | Net Gearing Ratio | 54.5% | 53.1% | +1.4% | | Net Working Capital | 136,860 | 147,190 | -7.0% | | Current Ratio | 1.09 times | 1.10 times | -0.01 times | - The group primarily conducts transactions in HKD, RMB, USD, and JPY, and closely monitors foreign exchange risks[11] Outlook and Prospects Looking ahead to the second half of 2025, the global economic environment remains challenging, but the group plans to address these challenges and seize growth opportunities through customer diversification, deeper client relationships, transformation into an integrated solutions partner, and geographically diversified manufacturing - The International Monetary Fund maintained its 2025 global economic growth forecast at 3.0% but warned of inflationary pressures and geopolitical uncertainties[12] - The group will strengthen its market position by expanding and diversifying its customer base, deepening relationships with existing clients, providing customized engineering support, and enhancing technical collaboration[12] - Key strategic priorities include transforming from a traditional capacitor supplier to an integrated solutions partner, offering system solutions for advanced energy storage systems, AI infrastructure power management, and electric vehicle charging solutions[12] - The Board of Directors is confident in the group's strategic roadmap, technological capabilities, and financial stability, with geographically diversified manufacturing and localized supply chain initiatives enhancing resilience[13] Employment and Remuneration Policies As of June 30, 2025, the group's total number of employees increased to 2,553, with remuneration policies based on fair reward, meritocracy, and market competitiveness, offering benefits such as provident funds, medical insurance, and performance-linked bonuses - As of June 30, 2025, the group's total number of employees was 2,553, an increase from 2,227 as of December 31, 2024[14] - Remuneration policies are based on fair reward, incentivization, meritocracy, and competitive market-level compensation[14] - Employee benefits include salaries, provident fund contributions, medical insurance, and performance-linked bonuses[14] Review Report on Interim Financial Statements This section presents KPMG's review report on the unaudited interim financial statements for the six months ended June 30, 2025 Introduction KPMG has reviewed the interim financial statements of Man Yue Technology Holdings Limited for the six months ended June 30, 2025, prepared in accordance with the Listing Rules of The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 - The auditor has reviewed the interim financial statements for the six months ended June 30, 2025, including the consolidated statement of financial position and income statement[15] - The interim report is prepared in compliance with the Listing Rules of the Stock Exchange and Hong Kong Accounting Standard 34 "Interim Financial Reporting"[15] Scope of Review The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410, which is less extensive than an audit, and therefore no audit opinion is expressed - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Hong Kong Institute of Certified Public Accountants[16] - The scope of the review is substantially less than that of an audit, and therefore no audit opinion is expressed[16] Conclusion Based on the review, the auditor found no matters indicating that the interim financial report was not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34 - The auditor found no matters indicating that the interim financial report was not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[17] Unaudited Consolidated Income Statement This section presents the group's unaudited consolidated income statement for the six months ended June 30, 2025 Consolidated Income Statement Overview For the six months ended June 30, 2025, the group maintained stable revenue, with increases in gross profit and profit attributable to shareholders, but a slight decrease in operating profit and a reduction in profit for the period due to increased income tax Unaudited Consolidated Income Statement (For the Six Months Ended June 30) | Indicator | 2025 (HK$ '000) | 2024 (HK$ '000) | Change | | :--- | :--- | :--- | :--- | | Revenue | 816,637 | 815,977 | +0.1% | | Cost of Sales | (679,380) | (682,938) | -0.5% | | Gross Profit | 137,257 | 133,039 | +3.2% | | Other Income | 8,481 | 3,842 | +120.7% | | Net Other Losses | (11,203) | (49) | +22763.3% | | Selling and Distribution Expenses | (24,152) | (26,117) | -7.5% | | Administrative Expenses | (79,093) | (78,469) | +0.8% | | Operating Profit | 31,290 | 32,246 | -2.96% | | Finance Costs | (21,763) | (25,852) | -15.8% | | Finance Income | 2,796 | 3,222 | -13.1% | | Share of Results of Joint Ventures | (4,641) | (2,483) | +86.9% | | Profit Before Tax | 7,682 | 7,133 | +7.7% | | Income Tax | (7,032) | (4,741) | +48.3% | | Profit for the Period | 650 | 2,392 | -72.8% | | Profit Attributable to Equity Holders of the Company | 4,405 | 2,756 | +59.8% | | Profit/(Loss) Attributable to Non-controlling Interests | (3,755) | (364) | +931.6% | | Basic Earnings Per Share | 0.93 HK cents | 0.58 HK cents | +60.3% | Unaudited Consolidated Statement of Comprehensive Income This section presents the group's unaudited consolidated statement of comprehensive income for the six months ended June 30, 2025 Consolidated Statement of Comprehensive Income Overview For the six months ended June 30, 2025, the group's profit for the period decreased, but total comprehensive income for the period significantly increased due to a substantial positive impact from exchange differences, offsetting a revaluation deficit Unaudited Consolidated Statement of Comprehensive Income (For the Six Months Ended June 30) | Indicator | 2025 (HK$ '000) | 2024 (HK$ '000) | Change | | :--- | :--- | :--- | :--- | | Profit for the Period | 650 | 2,392 | -72.8% | | Other Comprehensive Income: | | | | | Asset Revaluation (Deficit)/Surplus after Tax | (20,816) | 3,890 | -635.3% | | Exchange Differences | 53,315 | (22,228) | +339.9% | | Other Comprehensive Income for the Period, after Tax | 32,499 | (18,338) | +277.2% | | Total Comprehensive Income for the Period | 33,149 | (15,946) | +307.9% | | Total Comprehensive Income Attributable to Equity Holders of the Company | 34,544 | (14,273) | +342.0% | | Total Comprehensive Income Attributable to Non-controlling Interests | (1,395) | (1,673) | -16.7% | Unaudited Consolidated Statement of Financial Position This section presents the group's unaudited consolidated statement of financial position as of June 30, 2025 Consolidated Statement of Financial Position Overview As of June 30, 2025, the group's total assets and liabilities remained stable, with a slight increase in non-current assets and a minor decrease in net current assets and current ratio, maintaining an overall sound financial position Unaudited Consolidated Statement of Financial Position (As of June 30) | Indicator | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | Change | | :--- | :--- | :--- | :--- | | Non-current Assets | | | | | Property, Plant and Equipment | 539,411 | 541,855 | -0.45% | | Investment Properties | 382,290 | 365,103 | +4.71% | | Total Non-current Assets | 1,502,730 | 1,494,114 | +0.58% | | Current Assets | | | | | Inventories | 616,901 | 606,725 | +1.68% | | Trade Receivables | 685,865 | 660,194 | +3.89% | | Cash and Cash Equivalents | 143,794 | 208,172 | -30.92% | | Total Current Assets | 1,612,993 | 1,653,763 | -2.59% | | Current Liabilities | | | | | Bank and Other Borrowings | 963,122 | 966,452 | -0.34% | | Total Current Liabilities | 1,476,129 | 1,506,574 | -2.02% | | Net Assets | 1,526,147 | 1,495,328 | +2.06% | | Total Equity | 1,526,147 | 1,495,328 | +2.06% | Unaudited Consolidated Statement of Changes in Equity This section presents the group's unaudited consolidated statement of changes in equity for the six months ended June 30, 2025 Consolidated Statement of Changes in Equity Overview For the six months ended June 30, 2025, total equity attributable to equity holders of the company increased, primarily due to the positive impact of exchange differences, despite a revaluation deficit Unaudited Consolidated Statement of Changes in Equity (For the Six Months Ended June 30) | Indicator | June 30, 2025 (HK$ '000) | January 1, 2024 (HK$ '000) | Change | | :--- | :--- | :--- | :--- | | Balance at Beginning of Period (Attributable to Equity Holders of the Company) | 1,466,730 | 1,516,817 | -3.3% | | Profit for the Period (Attributable to Equity Holders of the Company) | 4,405 | 2,756 | +59.8% | | Asset Revaluation Deficit/Surplus after Tax | (20,816) | 3,890 | -635.3% | | Exchange Differences | 50,955 | (20,919) | +343.6% | | Dividends Declared | (2,330) | - | N/A | | Balance at End of Period (Attributable to Equity Holders of the Company) | 1,498,944 | 1,502,544 | -0.24% | | Total Equity (End of Period) | 1,526,147 | 1,529,919 | -0.25% | Unaudited Condensed Consolidated Cash Flow Statement This section presents the group's unaudited condensed consolidated cash flow statement for the six months ended June 30, 2025 Condensed Consolidated Cash Flow Statement Overview For the six months ended June 30, 2025, the group experienced a decrease in net cash inflow from operating activities, an increase in net cash outflow from investing activities, and a decrease in net cash outflow from financing activities, leading to an expanded net decrease in cash and cash equivalents Unaudited Condensed Consolidated Cash Flow Statement (For the Six Months Ended June 30) | Indicator | 2025 (HK$ '000) | 2024 (HK$ '000) | Change | | :--- | :--- | :--- | :--- | | Net Cash Inflow from Operating Activities | 40,944 | 79,214 | -48.31% | | Net Cash Outflow from Investing Activities | (44,491) | (27,031) | +64.60% | | Net Cash Outflow from Financing Activities | (63,941) | (90,095) | -29.03% | | Net Decrease in Cash and Cash Equivalents | (67,488) | (37,912) | +77.99% | | Cash and Cash Equivalents at End of Period | 143,794 | 209,886 | -31.49% | Notes to the Unaudited Consolidated Financial Statements This section provides detailed notes supporting the unaudited consolidated financial statements 1 General Information The group's principal activities are the manufacturing and trading of electronic components and raw materials, with the company incorporated in Bermuda and listed on the Hong Kong Stock Exchange - The group's principal activities are the manufacturing and trading of electronic components and raw materials[27] - The company is incorporated in Bermuda and listed on The Stock Exchange of Hong Kong Limited[27][28] 2 Basis of Preparation The interim financial statements are prepared in accordance with the Listing Rules of the Stock Exchange and Hong Kong Accounting Standard 34 "Interim Financial Reporting" and have been reviewed by KPMG - The interim financial statements have been prepared in accordance with the Listing Rules of the Stock Exchange and Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants[29] - KPMG has reviewed the interim financial statements in accordance with Hong Kong Standard on Review Engagements 2410, but no audit was performed[29] 3 Changes in Accounting Policies The group has applied the amendments to Hong Kong Accounting Standard 21 "The Effects of Changes in Foreign Exchange Rates—Lack of Exchangeability," which had no material impact on these interim financial statements - The group has applied the amendments to Hong Kong Accounting Standard 21 "The Effects of Changes in Foreign Exchange Rates—Lack of Exchangeability"[30] - These amendments had no material impact on these interim financial statements as the group had no transactions where foreign currency was not exchangeable into another currency[30] 4 Estimates The preparation of interim financial statements involves management's judgments, estimates, and assumptions regarding the application of accounting policies and the amounts of assets, liabilities, income, and expenses, with key sources of uncertainty consistent with the 2024 annual financial statements - The preparation of interim financial statements requires management to make judgments, estimates, and assumptions, and actual results may differ from these estimates[32] - The key sources of estimation uncertainty are consistent with those applied in the 2024 annual financial statements[32] 5 Fair Value Measurement of Financial Instruments The fair value of the group's financial instruments is classified into three levels according to Hong Kong Financial Reporting Standard 13, with most financial assets measured at fair value through profit or loss belonging to Level 3, and their fair value changes recognized in profit or loss Financial Assets Measured at Fair Value (June 30, 2025) | Category | Level 1 (HK$ '000) | Level 2 (HK$ '000) | Level 3 (HK$ '000) | Total (HK$ '000) | | :--- | :--- | :--- | :--- | :--- | | Financial Assets at Fair Value Through Profit or Loss – Non-current | – | – | 48,479 | 48,479 | | Financial Assets at Fair Value Through Profit or Loss – Current | 14 | – | – | 14 | | Total | 14 | – | 48,479 | 48,493 | - The fair value of Level 3 financial instruments is measured using discounted cash flow methods and valued by independent professional valuers at least twice a year[37] - As of June 30, 2025, the closing balance of Level 3 financial assets measured at fair value was HK$48,493 thousand, with a fair value loss of HK$1,270 thousand recognized during the period[37] 6 Segment Information The group operates in two main segments: manufacturing, sales, and distribution of electronic components, and investment, with the electronic components segment contributing the vast majority of revenue and stable gross margins, and the investment segment contributing to operating profit, with most revenue derived from mainland China - The group comprises two main operating segments: (i) manufacturing, sales, and distribution of electronic components; and (ii) investment[40] Segment Results (For the Six Months Ended June 30, 2025) | Indicator | Manufacturing, Sales and Distribution of Electronic Components (HK$ '000) | Investment (HK$ '000) | Total (HK$ '000) | | :--- | :--- | :--- | :--- | | Segment Revenue from External Customers | 816,637 | – | 816,637 | | Segment Gross Profit | 137,257 | – | 137,257 | | Gross Profit Margin (%) | 16.8% | – | 16.8% | | Operating Profit | 23,448 | 7,842 | 31,290 | | Operating Profit Margin (%) | 2.9% | N/A | 3.8% | Revenue from External Customers by Geographical Location (For the Six Months Ended June 30) | Region | 2025 (HK$ '000) | 2024 (HK$ '000) | | :--- | :--- | :--- | | Mainland China | 625,553 | 620,439 | | Taiwan | 79,906 | 81,856 | | Hong Kong | 30,741 | 40,239 | | Southeast Asia | 34,716 | 29,460 | | United States | 17,723 | 9,629 | | Europe | 17,649 | 20,596 | | Total | 816,637 | 815,977 | 7 Revenue The group's revenue primarily stems from the manufacturing and trading of electronic components, with all revenue recognized at a point in time when control is transferred to the customer - Revenue refers to the net value of goods sold after deducting returns and discounts[45] - For the six months ended June 30, 2025, revenue from contracts with customers for manufacturing and trading electronic components was HK$816,637 thousand, largely consistent with the prior year period[46] 8 Other Income The group's other income significantly increased, primarily driven by growth in government grants and "other" income, while rental income from investment properties slightly decreased Other Income (For the Six Months Ended June 30) | Item | 2025 (HK$ '000) | 2024 (HK$ '000) | Change | | :--- | :--- | :--- | :--- | | Government Grants | 2,035 | 261 | +679.7% | | Rental Income from Investment Properties | 1,846 | 2,787 | -33.8% | | Other | 4,477 | 3,422 | +30.8% | | Total | 8,481 | 3,842 | +120.7% | 9 Net Other Losses The group's net other losses significantly increased, mainly due to a substantial rise in net exchange losses, despite an increase in fair value gains on investment properties Net Other Losses (For the Six Months Ended June 30) | Item | 2025 (HK$ '000) | 2024 (HK$ '000) | Change | | :--- | :--- | :--- | :--- | | Fair Value Gains on Investment Properties | 7,266 | 674 | +978.0% | | Net Exchange (Losses)/Gains | (15,477) | 13,345 | -216.0% | | Fair Value Losses on Financial Assets at Fair Value Through Profit or Loss | (1,270) | (9,706) | -86.9% | | Total | (11,203) | (49) | +22763.3% | 10 Operating Profit The group's operating profit is derived after deducting depreciation, amortization, inventory write-downs, and net reversal of expected credit losses, with increases in depreciation expense and inventory write-downs Components of Operating Profit (For the Six Months Ended June 30) | Item | 2025 (HK$ '000) | 2024 (HK$ '000) | Change | | :--- | :--- | :--- | :--- | | Depreciation Expense: Owned Property, Plant and Equipment | 24,735 | 24,802 | -0.27% | | Depreciation Expense: Right-of-use Assets | 12,209 | 10,618 | +14.98% | | Inventory Write-downs | 3,000 | 1,751 | +71.33% | | Additional Expected Credit Losses Recognized | 1,642 | 61 | +2591.8% | 11 Finance Costs The group's finance costs decreased, primarily due to reduced interest expense on bank and other borrowings, with some interest expense capitalized as construction in progress Finance Costs (For the Six Months Ended June 30) | Item | 2025 (HK$ '000) | 2024 (HK$ '000) | Change | | :--- | :--- | :--- | :--- | | Interest Expense on Bank and Other Borrowings | 21,592 | 25,061 | -13.84% | | Interest Expense on Lease Liabilities | 971 | 1,375 | -29.38% | | Less: Interest Expense Capitalized as Construction in Progress | (800) | (584) | +37.0% | | Total | 21,763 | 25,852 | -15.82% | 12 Finance Income The group's finance income slightly decreased, mainly due to reduced interest income from time deposits and bank balances, while interest income from loans to a joint venture remained stable Finance Income (For the Six Months Ended June 30) | Item | 2025 (HK$ '000) | 2024 (HK$ '000) | Change | | :--- | :--- | :--- | :--- | | Interest Income from Loan to a Joint Venture | 2,647 | 2,692 | -1.67% | | Interest Income from Time Deposits and Bank Balances | 149 | 530 | -71.9% | | Total | 2,796 | 3,222 | -13.1% | 13 Income Tax The group's income tax expense significantly increased, primarily due to a shift from deferred tax income to expense and no assessable profit in Hong Kong, with mainland China subsidiaries subject to tax rates of 15% or 25% Income Tax (For the Six Months Ended June 30) | Item | 2025 (HK$ '000) | 2024 (HK$ '000) | Change | | :--- | :--- | :--- | :--- | | Current Tax: Outside Hong Kong | 4,871 | 4,948 | -1.56% | | Deferred Tax | 2,161 | (207) | +1143.5% | | Total Tax Expense for the Period | 7,032 | 4,741 | +48.3% | - No Hong Kong Profits Tax provision was made as there was no assessable profit in Hong Kong[52] - Mainland China subsidiaries are subject to preferential or statutory tax rates of 15% or 25%[52] 14 Earnings Per Share For the six months ended June 30, 2025, basic earnings per share were 0.93 HK cents, an increase from the prior year, with diluted earnings per share being the same as basic earnings per share due to no potential dilutive ordinary shares - Basic earnings per share were 0.93 HK cents, an increase of 60.3% from 0.58 HK cents in the same period of 2024[19][54] - Diluted earnings per share were the same as basic earnings per share as there were no potential dilutive ordinary shares issued during the current and prior periods[54] 15 Dividends The Board does not recommend an interim dividend for the current period but has approved a final dividend of 0.49 HK cents per ordinary share for the previous financial year, which has been included in dividends payable - The Board does not recommend the payment of an interim dividend for the current period[55] - A final dividend of 0.49 HK cents per ordinary share for the previous financial year, amounting to HK$2,330,000, has been approved and included in "Dividends payable"[55] 16 Property, Plant and Equipment, Construction in Progress and Machinery Under Installation As of June 30, 2025, the net book value of property, plant and equipment, construction in progress, and machinery under installation slightly decreased, primarily due to revaluation deficits, though additions increased Changes in Property, Plant and Equipment, Construction in Progress (For the Six Months Ended June 30) | Item | 2025 (HK$ '000) | 2024 (HK$ '000) | Change | | :--- | :--- | :--- | :--- | | Net Book Value at Beginning of Period | 592,413 | 629,181 | -5.99% | | Additions: Self-owned Property, Plant and Equipment | 33,227 | 18,081 | +83.77% | | Revaluation (Deficit)/Surplus | (27,768) | 4,032 | -788.9% | | Net Book Value at End of Period | 574,755 | 607,640 | -5.41% | - As of June 30, 2025, the amount of machinery under installation expected to be transferred to property, plant and equipment was HK$79,644,000[56] 17 Prepaid Land Lease Payments As of June 30, 2025, the net book value of prepaid land lease payments slightly decreased, primarily due to amortization Changes in Prepaid Land Lease Payments (For the Six Months Ended June 30) | Item | 2025 (HK$ '000) | 2024 (HK$ '000) | Change | | :--- | :--- | :--- | :--- | | Net Book Value at Beginning of Period | 9,879 | 10,452 | -5.5% | | Amortization | (175) | (188) | -6.9% | | Net Book Value at End of Period | 9,854 | 10,191 | -3.3% | 18 Investment Properties The group's investment properties' net book value increased, driven by additions and fair value gains, and are valued by independent professional valuers Changes in Investment Properties (For the Six Months Ended June 30) | Item | 2025 (HK$ '000) | 2024 (HK$ '000) | Change | | :--- | :--- | :--- | :--- | | Net Book Value at Beginning of Period | 365,103 | 373,858 | -2.34% | | Additions | 9,918 | – | N/A | | Fair Value Adjustment Gains | 7,266 | 674 | +978.0% | | Net Book Value at End of Period | 382,290 | 372,403 | +2.65% | - Investment properties are valued by an independent professional qualified valuer, Richfield Global Appraisal Advisory Limited, using valuation techniques consistent with those applied as of December 31, 2024[58] - All fair value measurements of investment properties are classified as Level 3, including completed residential/industrial/commercial properties and properties under development[60] 19 Trade and Other Receivables, Prepayments, Deposits and Other Receivables The group's total trade receivables increased, with credit terms generally ranging from 90 to 150 days, and risks managed through a credit control department and credit insurance, showing the largest proportion of overdue receivables in the 1-3 month aging category Trade and Other Receivables, Prepayments, Deposits and Other Receivables (As of June 30) | Item | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | Change | | :--- | :--- | :--- | :--- | | Trade Receivables | 685,865 | 660,194 | +3.89% | | Prepayments, Deposits and Other Receivables | 146,248 | 158,520 | -7.62% | | Total | 832,113 | 818,714 | +1.64% | - Credit terms are generally 90 days, extendable to a maximum of 150 days for major customers, with credit risk hedged through a credit control department and credit insurance[61][62] Aging Analysis of Trade Receivables (As of June 30) | Aging | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | | :--- | :--- | :--- | | 1 to 3 Months | 618,427 | 576,119 | | 4 to 6 Months | 28,094 | 58,732 | | 7 to 12 Months | 24,130 | 25,276 | | Over 1 Year | 15,214 | 67 | 20 Trade and Bills Payables As of June 30, 2025, the group's total trade and bills payables slightly decreased, with the largest proportion of trade payables falling within the 1-3 month aging category Aging Analysis of Trade and Bills Payables (As of June 30) | Aging | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | | :--- | :--- | :--- | | 1 to 3 Months | 278,538 | 261,234 | | 4 to 6 Months | 23,028 | 40,506 | | 7 to 12 Months | 1,150 | 2,230 | | Over 1 Year | 4,245 | 14,904 | | Bills Payable | 6,900 | 4,934 | | Total | 313,861 | 323,808 | 21 Bank and Other Borrowings The group's total bank and other borrowings slightly decreased, but some loans were classified as current liabilities due to covenant breaches, for which bank waivers have been obtained Bank and Other Borrowings (As of June 30) | Item | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | Change | | :--- | :--- | :--- | :--- | | Repayable within 1 Year | 897,790 | 936,154 | -4.09% | | Repayable in the 2nd Year | 41,283 | 49,628 | -16.82% | | Repayable in the 3rd to 5th Year | 37,018 | 16,271 | +127.5% | | Total | 976,091 | 1,002,053 | -2.59% | - The group breached two financial covenant provisions, resulting in HK$276,683,000 of bank loans being classified as current liabilities, but bank waiver letters have been obtained[66] 22 Share Capital As of June 30, 2025, the group's authorized and issued and fully paid share capital remained unchanged at HK$47,555 thousand, representing 475,547,534 shares Share Capital Information (As of June 30) | Item | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | | :--- | :--- | :--- | | Authorized Share Capital (1,000,000,000 shares of HK$0.10 each) | 100,000 | 100,000 | | Issued and Fully Paid Share Capital (475,547,534 shares of HK$0.10 each) | 47,555 | 47,555 | - Issued share capital and share premium remained unchanged during the reporting period[67] 23 Reserves As of June 30, 2025, the group's total reserves increased, primarily due to a significant positive impact from the exchange fluctuation reserve, offsetting a deficit in the asset revaluation reserve Changes in Reserves (For the Six Months Ended June 30) | Item | January 1, 2025 (HK$ '000) | June 30, 2025 (HK$ '000) | Change | | :--- | :--- | :--- | :--- | | Share Premium | 165,458 | 165,458 | 0% | | Asset Revaluation Reserve | 191,014 | 170,198 | -10.9% | | Exchange Fluctuation Reserve | (63,152) | (12,197) | +80.7% | | Retained Profits | 1,050,999 | 1,053,074 | +0.2% | | Total | 1,419,175 | 1,451,389 | +2.27% | - Profit for the period and exchange differences had a positive impact on reserves, while the asset revaluation deficit had a negative impact[68] 24 Capital Commitments As of June 30, 2025, the group's contracted but unprovided capital commitments primarily related to plant and machinery, amounting to HK$58,748 thousand, an increase from the end of the previous year Capital Commitments (As of June 30) | Item | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | Change | | :--- | :--- | :--- | :--- | | Contracted but not provided for: Plant and Machinery | 58,748 | 50,866 | +15.49% | 25 Related Party Transactions The group engages in significant related party transactions with joint ventures, including raw material purchases, rent payments, and loan interest income, and discloses key management personnel compensation - Man Yue Holdings Inc. is the largest shareholder, holding 44.09% equity interest, with the ultimate controlling party being Chairperson Ms. Ji Chulian[70] Significant Transactions with Joint Ventures (For the Six Months Ended June 30) | Item | 2025 (HK$ '000) | 2024 (HK$ '000) | Change | | :--- | :--- | :--- | :--- | | Purchase of Raw Materials | 7,159 | 4,690 | +52.6% | | Lease Rental Payments | 6,504 | 6,615 | -1.7% | | Interest Income | 2,647 | 2,692 | -1.7% | - Interest on loans to a joint venture is calculated at 4.90% per annum, with most loans being unsecured, interest-free, and repayable on demand[71][72] Key Management Personnel Compensation (For the Six Months Ended June 30) | Item | 2025 (HK$ '000) | 2024 (HK$ '000) | Change | | :--- | :--- | :--- | :--- | | Salaries and Allowances | 7,192 | 6,432 | +11.8% | | Provident Fund Contributions | 27 | 27 | 0% | | Total | 7,219 | 6,459 | +11.8% | Corporate Governance and Other Information This section covers corporate governance practices, directors' and major shareholders' interests, and other relevant disclosures Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures This section discloses the long positions of directors and the chief executive in the company's ordinary shares and underlying shares, highlighting significant holdings by Chairperson Ms. Ji Chulian and Managing Director Mr. Chen Yucheng through controlled corporations and beneficial ownership Directors' Long Positions in the Company's Ordinary Shares and Underlying Shares (As of June 30, 2025) | Director | Capacity | Nature of Interest | Number of Shares Held | Approximate Percentage of the Company's Issued Share Capital | | :--- | :--- | :--- | :--- | :--- | | Ji Chulian | Interest in Controlled Corporation | Corporate | 146,782,767 | 30.87% | | Ji Chulian | Beneficial Owner | Individual | 51,634,334 | 10.86% | | Ji Chulian Total | | | 198,417,101 | 41.73% | | Chen Yucheng | Interest in Controlled Corporation | Corporate | 62,906,900 | 13.23% | | Chen Yucheng | Beneficial Owner | Individual | 4,716,666 | 0.99% | | Chen Yucheng Total | | | 67,623,566 | 14.22% | - Man Yue Holdings Inc. is owned 70% by Ms. Ji Chulian and 30% by Mr. Chen Yucheng[74] Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares and Underlying Shares Apart from the directors, Man Yue Holdings Inc. is the only substantial shareholder holding 5% or more interest in the company's issued share capital Substantial Shareholders' Long Positions in the Company's Shares (As of June 30, 2025) | Name | Capacity and Nature of Interest | Number of Ordinary Shares Held | Approximate Percentage of the Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Man Yue Holdings Inc. | Individual/Beneficial Owner | 209,689,667 | 44.09% | Directors' Rights to Acquire Shares or Debentures During the period, no director or their spouse/minor children were granted or exercised any rights to acquire shares or debentures of the company - As of the current period, no director or their spouse or minor children were granted or exercised any rights to acquire benefits by purchasing shares or debentures of the company[76] Purchase, Sale or Redemption of the Company's Shares For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's shares - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's shares[77] Compliance with Corporate Governance Code The company has complied with the applicable code provisions of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules during the period - The company has complied with the applicable code provisions of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules[78] Compliance with Model Code The company has adopted the Model Code as set out in Appendix C3 to the Listing Rules, and all directors confirmed full compliance with the code during the period after due enquiry - The company has adopted the Model Code as set out in Appendix C3 to the Listing Rules as the code of conduct for directors' dealings in the company's securities[79] - All directors confirmed their full compliance with the Model Code during the period[79] Scope of Work of the Audit Committee and KPMG The company's Audit Committee has reviewed the group's unaudited consolidated financial statements for the six months ended June 30, 2025, and KPMG has also conducted a review in accordance with relevant standards - The company's Audit Committee has reviewed the group's unaudited consolidated financial statements for the six months ended June 30, 2025[80] - KPMG has reviewed the interim financial statements in accordance with Hong Kong Standard on Review Engagements 2410[80] Interim Dividend The Board does not recommend an interim dividend for the current period but has approved a final dividend of 0.49 HK cents per ordinary share for the previous financial year - The Board does not recommend the payment of an interim dividend for the current period[81] - A final dividend of 0.49 HK cents per ordinary share for the previous financial year, amounting to HK$2,330,000, has been approved[81] Publication of Interim Report This interim report is printed in English and Chinese, available in electronic and printed forms, free for download on the company's website, and shareholders can request printed copies by mail - The interim report is printed in English and Chinese, available in both electronic and printed forms[82] - The electronic version is available for free download on the company's website www.manyue.com, and shareholders may request free printed copies[82] Acknowledgement The Board expresses its gratitude to all employees, customers, suppliers, banks, and shareholders for their support - The Board extends its sincere gratitude to all employees for their loyalty and contributions, and to customers, suppliers, banks, and shareholders for their continuous support[83]