Financial Performance - The company reported revenue of RMB 5,850 million for the first half of 2025, a decrease of 2.6% compared to RMB 6,007 million in the same period of 2024[7]. - Gross profit for the first half of 2025 was RMB 848 million, down 15.4% from RMB 1,003 million in the first half of 2024[7]. - Net profit attributable to the company's owners was RMB 641 million, a decrease of 6.6% from RMB 687 million in the previous year[7]. - The group's revenue for the reporting period was RMB 5,850.2 million, a decrease of RMB 156.4 million or 2.6% compared to RMB 6,006.6 million in the same period of 2024[25]. - The gross profit for the group was RMB 847.9 million, a decrease of RMB 155.2 million or 15.5% compared to RMB 1,003.1 million in 2024[27]. - The group's net profit for the period was RMB 723.8 million, a decrease of RMB 19.6 million or 2.6% compared to RMB 743.4 million in the same period of 2024[39]. Production and Sales - The production volume of fertilizers for the first half of 2025 was 967,647 tons, a slight decrease of 0.6% from 973,476 tons in the same period of 2024[8]. - The sales volume of chemical products increased by 8.6% to 726,174 tons in the first half of 2025, compared to 668,460 tons in the previous year[9]. - In the first half of the year, the company produced 968,000 tons of urea, 781,000 tons of methanol, 450,000 tons of phosphate and compound fertilizers, and 132,000 tons of acrylonitrile series products[21]. - The company sold 996,000 tons of urea, 726,000 tons of methanol, 386,000 tons of phosphate and compound fertilizers, and 127,000 tons of acrylonitrile series products in the first half of the year[21]. Market Prices - The average market price of urea in the first half of the year was RMB 1,804 per ton, a year-on-year decrease of RMB 434 per ton, representing a decline of 19%[15]. - The average market price of monoammonium phosphate was RMB 3,268 per ton, up 6.48% year-on-year[16]. - The average market price of diammonium phosphate was RMB 3,954 per ton, up 1.59% year-on-year[16]. - The average price of acrylonitrile in the first half of the year was RMB 9,350.41 per ton, down 5.4% from RMB 9,888.10 per ton in the same period last year[19]. Assets and Liabilities - The company's total assets increased to RMB 24,571 million as of June 30, 2025, compared to RMB 24,076 million at the end of 2024[7]. - As of June 30, 2025, the group had total interest-bearing liabilities of RMB 2,335.2 million, with a capital debt ratio of 10.7%[43]. - Total liabilities increased to RMB 4,999,064 thousand as of June 30, 2025, compared to RMB 4,569,034 thousand as of December 31, 2024, representing an increase of 9.4%[81]. - Current liabilities rose to RMB 3,204,407 thousand as of June 30, 2025, up from RMB 2,512,948 thousand as of December 31, 2024, indicating a growth of 27.5%[81]. Cash Flow and Investments - The group reported a cash flow from operating activities of RMB 533,057,000 for the six months ended June 30, 2025, compared to RMB 679,928,000 for the same period in 2024, reflecting a decrease of 21.6%[127]. - The company’s investment activities resulted in a net cash outflow of RMB 249,564 thousand for the six months ended June 30, 2025, compared to a net inflow of RMB 126,333 thousand for the same period in 2024[86]. - The group reported capital expenditures totaling RMB 78.76 million, with significant investments including RMB 27.83 million for the second phase of the Pisha gypsum dry stacking project and RMB 19.48 million for the underground mining project with an annual capacity of 1.6 million tons[41]. Corporate Governance and Compliance - The company has adopted accounting principles and standards reviewed by the audit committee, with no disagreements noted regarding the accounting treatment for the interim results for the six months ending June 30, 2025[59]. - The company has complied with all provisions of the Corporate Governance Code during the six months ending June 30, 2025, except as noted[60]. Future Outlook and Strategy - The company plans to continue expanding its market presence and sales channels while enhancing operational efficiency amid a challenging market environment[11]. - Key focus areas for the company in the second half of 2025 include enhancing equipment management systems, improving marketing effectiveness, and advancing research on low-carbon natural gas utilization projects[57]. - The industry outlook for the second half of 2025 indicates a continued oversupply in the urea market, with price pressures expected in the fourth quarter due to new capacity releases and declining demand[56].

Drama Production and Content Strategy - By the end of June 2025, the Group has produced and distributed a total of 26 high-quality drama series, with 24 being original series where the Group acted as the lead/sole investor and executive producer[7]. - The Group's original drama series include popular titles such as "A Love for Separation," "Nothing but Thirty," and "Novoland: Eagle Flag," focusing on contemporary themes like family life and female empowerment[9]. - The Group is committed to diversified growth strategies, exploring new avenues such as content marketing, short drama series, overseas business, and IP derivative development to maximize the commercial value of proprietary IP rights[10]. - The original drama series "A Dream within a Dream" achieved significant viewership, with over 8 billion views on Douyin, ranking TOP1 among drama series during the same period[35]. - Several new projects are in preparation, scheduled to start shooting in the second half of 2025, including "A Journey to Glow" and "Showdown"[35]. - The Group aims to produce over 200 episodes of long drama series throughout 2025, focusing on premium original content[47]. - The Group is actively exploring the production and distribution of mini and short drama series in niche languages, with several projects currently in production[43]. - The Group's short commercial-break dramas achieved significant popularity, with multiple titles ranking TOP1 on various platforms[41]. Financial Performance - Revenue for the six months ended June 30, 2025, amounted to approximately RMB 401.3 million, representing an increase of 109% from approximately RMB 192.5 million for the same period in 2024[24]. - Gross profit for the same period was approximately RMB 101.0 million, an increase of 140% from approximately RMB 43.0 million in 2024[24]. - Net profit for the six months ended June 30, 2025, was approximately RMB 11.3 million, compared to a net loss of approximately RMB 52.9 million for the same period in 2024[24]. - Adjusted net profit for the same period was approximately RMB 14.4 million, a turnaround from an adjusted net loss of approximately RMB 49.4 million in 2024[24]. - The Group's total revenue increased by 109% from RMB192.5 million for the six months ended June 30, 2024, to RMB401.3 million for the six months ended June 30, 2025, primarily due to the launch of the 40-episode drama "A Dream within a Dream"[55]. - Gross profit rose by 135% from RMB43.0 million for the six months ended June 30, 2024, to RMB100.99 million for the six months ended June 30, 2025[58]. - The gross profit margin improved by 2.8 percentage points from 22.4% for the six months ended June 30, 2024, to 25.2% for the six months ended June 30, 2025[59]. - The Group's cost of sales increased by 101% from RMB149.5 million for the six months ended June 30, 2024, to RMB300.3 million for the six months ended June 30, 2025[57]. - Other income and gains decreased by 39.4% from RMB46.5 million for the six months ended June 30, 2024, to RMB28.2 million for the six months ended June 30, 2025[63]. - Administrative expenses decreased by 24.6% from RMB99.0 million for the six months ended June 30, 2024, to RMB74.7 million for the six months ended June 30, 2025[65]. - Finance costs increased by 56.7% to RMB2.3 million for the six months ended June 30, 2025, from RMB1.5 million for the six months ended June 30, 2024[66]. - The Group recorded a net profit of RMB11.3 million for the six months ended June 30, 2025, compared to a net loss of RMB52.9 million for the six months ended June 30, 2024[76]. - Income tax expense decreased to RMB1.5 million for the six months ended June 30, 2025, from RMB6.3 million for the six months ended June 30, 2024, due to the utilization of deductible losses from previous years[68]. - Revenue growth was driven by the broadcast of quality drama series and improved financial performance from new business lines such as short drama series[84]. Overseas Business and Distribution - The Group's overseas distribution revenue recorded notable growth year-on-year, with the first overseas localized long drama series recently broadcasting[27]. - The Group's overseas business revenue exceeded RMB 33 million in the first half of 2025, approximately 2.5 times higher than the same period in 2024[42]. - The original drama series "A Dream within a Dream" ranked TOP1 on the iQIYI International platform across eleven countries and regions in the first half of 2025[43]. Employee and Workforce Diversity - As of June 30, 2025, the Group had 185 employees, with approximately 76.8% being female, reflecting a commitment to workforce diversity[50][52]. Corporate Governance and Compliance - The company has adopted the Model Code for Securities Transactions by Directors and confirmed compliance by all Directors for the six months ended June 30, 2025[122]. - The company will continue to review its corporate governance practices to ensure compliance with the CG Code[117]. - The company has established an Audit Committee to oversee financial reporting, internal controls, and risk management, comprising one non-executive Director and two independent non-executive Directors[126]. - The Board believes that the current structure of the Chairman and CEO roles, held by Mr. Su, will not impair the balance of power and authority within the company[116]. - The overall strategic and key business policies of the company are made collectively after thorough discussion among all Board members and senior managers[116]. Shareholder Interests and Options - The interests of directors and chief executives in the company include Mr. Su, Ms. Chen, and Ms. Xu, each holding approximately 37.94% of the shares through controlled corporations[142]. - As of June 30, 2025, Mr. Su directly holds 71,136,000 shares in the company[144]. - Faye Free Flight Limited and A&O Investment Limited, both wholly owned by Ms. Chen and Ms. Xu respectively, each hold 33,014,520 shares in the company[144]. - The direct interest held by Mr. Su, Ms. Chen, and Ms. Xu in Shanghai Linmon is 56.93%[149]. - The Pre-IPO Share Option Scheme allows for a maximum of 14,680,471 shares to be issued, which is 4.06% of the total issued shares as of the interim report date[165]. - As of June 30, 2025, 11,906,964 options have been granted under the Pre-IPO Share Option Scheme, representing 3.29% of the total issued shares[165]. - The 2024 Share Option Scheme allows for a maximum of 36,045,882 shares to be issued, representing 9.97% of the total issued shares of 361,575,527 as of the interim report date[190]. - The maximum number of shares issuable to service provider participants is 18,022,941, which is 4.98% of the total issued shares[190]. - The option exercise price will be determined by the Board and must be at least the higher of a specified minimum[200].

公司資料 註冊辦事處 Cricket Square Hutchins Drive P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands 總部及新加坡主要營業地點 51 Ubi Avenue 1 #02-17/18 Paya Ubi Industrial Park Singapore 408933 香港主要營業地點 香港 干諾道中111號 永安中心 16樓1601室 公司網站 www.fuchangroup.com 公司秘書 文潤華 ACG, HKACG 授權代表 朱志強 文潤華 ACG, HKACG 合規主任 朱志強 審核委員會 馬雄剛 （主席） 黃榮輝 Wong Loke Tan K2 F&B Holdings Limited（「本公司」）董事（「董事」）會（「董事會」）欣然公佈本公司及其附屬 公司（統稱為「本集團」）截至2025年6月30日止六個月（「報告期」或「2025年上半年」）之未 經審核簡明綜合中期業績連同截至2024年6月30日止六個月（「2024年上半年」）之比較數字。 業績已由本公司審核委員會（「審核委員會」）審閱。 簡明綜合損益及其他全面收益 ...

BOARD OF DIRECTORS Executive Directors: Mr. Mung Kin Keung (Chairman) Mr. Mung Bun Man, Alan (Chief Executive Officer) Independent Non-executive Directors: Mr. Fung Wai Ching Mr. Chung Wang Hei Ms. Cheng Hiu Ching (Appointed on 6 February 2025) Ms. Lui Sau Lin (Resigned on 6 February 2025) AUDIT COMMITTEE Ms. Cheng Hiu Ching (Committee Chairman) (Appointed on 6 February 2025) Ms. Lui Sau Lin (Committee Chairman) (Resigned on 6 February 2025) Mr. Fung Wai Ching Mr. Chung Wang Hei REMUNERATION COMMITTEE Mr. F ...

Customer Base and Market Presence - As of June 30, 2025, the active customer base reached 4.54 million, representing a year-on-year growth of 15.2% and an increase of 8.3% compared to the end of 2024[12]. - The subscription members of the WeChat platform Zhongsheng GO reached 3.8 million, with nearly 10.5 million customers connected through corporate WeChat[12]. - The company has closed 37 authorized dealerships since November 2024 and opened 57 new authorized dealerships and 20 service centers, primarily new stores[9]. - In the 32 key cities where the company operates, there is an average of 15 dealerships and service centers per city, serving approximately 137,000 active customers[13]. - Over 46% of the company's stores are the leading dealers for their brands in local markets, with 89 stores being exclusive dealers[13]. Business Strategy and Transformation - The company aims to transform into a high-end automotive service brand, focusing on after-sales services driven by the existing customer base[10]. - The company is focusing on digitalization and centralized operations as part of its transformation into a customer-centric automotive service provider[12]. - The company is enhancing local market business density and brand concentration to support its cross-brand operational strategy[13]. - The company has implemented a significant network optimization, marking the largest scale in its history since November 2024[9]. Financial Performance - The company's revenue for the six months ended June 30, 2025, was RMB 77,322.1 million, a decrease of RMB 5,099.3 million or 6.2% compared to the same period in 2024[36]. - New car sales revenue was RMB 57,931.0 million, down 4.7% from RMB 60,812.0 million in the previous year, while used car sales revenue fell by 27.0% to RMB 6,014.6 million[36]. - The after-sales service segment saw a revenue increase of 4.4%, reaching RMB 11,445.3 million, indicating a positive trend in this area[36]. - Gross profit for the six months ended June 30, 2025, was RMB 4,209.3 million, a decrease of RMB 716.9 million or 14.6% compared to the previous year[42]. - Operating profit was RMB 1,905.1 million, a decrease of RMB 850.7 million or 30.9% compared to the previous year, with an operating profit margin of 2.5%[49]. Vehicle Sales and Market Trends - In the first half of 2025, the company sold approximately 229,000 new vehicles, a decrease of about 4,000 units or 1.7% year-on-year, with luxury brand sales accounting for 62.3% of total sales[21]. - The average transaction price of new vehicles decreased by approximately RMB 33,000, a decline of 12.5% compared to the previous year, while manufacturers provided an average subsidy of RMB 19,000 per vehicle, representing 7.0% of the price[21]. - The company sold approximately 111,000 used vehicles in the first half of 2025, a year-on-year increase of 9.6%, but revenue from used vehicles fell by 27.0% to RMB 6.02 billion[23]. - The average profit per used vehicle was compressed to less than RMB 3,000, with overall profit for the used vehicle segment declining by 60.2%[24]. - The company expects continued growth in after-sales service revenue, particularly in the luxury market, as local competitors exit and market consolidation deepens[18]. Cash Flow and Financial Position - As of June 30, 2025, the company's cash balance was RMB 20,037.2 million, a decrease of RMB 2,966.8 million from December 31, 2024, primarily due to cash outflows from financing activities[55]. - The company generated free cash flow of RMB 3,973.0 million for the six months ended June 30, 2025, with net cash inflow from operating activities amounting to RMB 5,948.4 million[55]. - Cash used in financing activities for the six months ended June 30, 2025, was RMB 10,830.2 million, mainly for repaying bank loans and redeeming convertible bonds[60]. - The company's total capital expenditure for the six months ended June 30, 2025, was RMB 818.7 million, compared to RMB 618.7 million for the same period in 2024[62]. - The average inventory turnover days increased from 36.2 days in 2024 to 38.3 days in 2025, reflecting adjustments in inventory levels[65]. Shareholder Information and Corporate Governance - The company declared a final dividend of RMB 1,734,665,000 for the year 2023, reflecting a commitment to returning value to shareholders despite fluctuations in comprehensive income[77]. - The company has issued zero-coupon convertible bonds with a face value of HKD 4,560,000,000, maturing in 2025, with the conversion price adjusted to HKD 43.88 per share as of July 4, 2024[105]. - Major shareholders, including Blue Natural Development Ltd. and Light Yield Ltd., collectively own 49.66% of the company's shares[133]. - The company has a total of 505,816,116 shares held by Jardine Strategic Limited, representing 21.20% of the total shares[134]. - The company’s board members are considered to have interests in the treasury shares due to their voting rights[129]. Environmental and Social Responsibility - The group has implemented multiple measures to reduce emissions and enhance energy efficiency in daily operations, including improving emission testing equipment and wastewater treatment[167]. - The group encourages employees to use public transportation and replace business travel with phone or video conferencing when feasible to reduce carbon emissions[167]. - The group is committed to corporate social responsibility by providing employment opportunities for local residents and disabled individuals through its national dealer network[168].

Tanwan Inc. 贪玩 （曾用名ZX Inc.中旭未来） 股份代號 ���� （於開曼群島註冊成立的有限公司） 中期報告2025 INTERIM REPORT 2025 Tanwan Inc. 贪玩 （Formerly known as ZX Inc.中旭未来） （Incorporated in the Cayman Islands with limited liability） Stock Code ���� Tanwan Inc. 貪玩 目錄 | 公司資料 | 2 | | --- | --- | | 致股東的信 | 3 | | 主要重點 | 5 | | 管理層討論與分析 | 6 | | 其他資料 | 18 | | 獨立審閱報告 | 26 | | 中期簡明綜合損益表 | 27 | | 中期簡明綜合全面收益表 | 28 | | 中期簡明綜合財務狀況表 | 29 | | 中期簡明綜合權益變動表 | 31 | | 中期簡明綜合現金流量表 | 32 | | 中期簡明綜合財務資料附註 | 34 | | 釋義 | 51 | 公司資料 董事會 執行董事 Interim Report 2025 中期報告 吳旭波先生 ...

Financial Performance - Morimatsu International Holdings reported a revenue increase of 15% year-over-year, reaching HKD 1.2 billion for the interim period[1]. - The company achieved a net profit margin of 12%, translating to a net profit of HKD 144 million, compared to HKD 120 million in the same period last year[1]. - The company has projected a revenue growth of 10-15% for the next fiscal year, driven by new product launches and market expansion strategies[1]. - The company has reported a significant increase in demand for its electronic chemicals, with sales up by 35% compared to the previous year[1]. - The company reported strong order growth across various regions, including North America, South America, Asia, Europe, and Oceania, particularly in pharmaceuticals, biopharmaceuticals, and battery materials[20]. - The company’s revenue decreased by 22.7% from approximately RMB 3,476,752 thousand for the six months ended June 30, 2024, to approximately RMB 2,687,283 thousand for the six months ended June 30, 2025[55]. - Total revenue for the six months ended June 30, 2025, was approximately RMB 2,687,283 thousand, a decrease of 22.7% compared to RMB 3,476,752 thousand for the same period in 2024[56]. - The gross profit for the six months ended June 30, 2025, was approximately RMB 788,786 thousand, down 23.3% from RMB 1,028,448 thousand in the previous year, with a gross margin of 29.4%[59]. - The net profit for the six months ended June 30, 2025, was approximately RMB 333,008 thousand, down from RMB 373,827 thousand in the same period of 2024[68]. - Basic earnings per share for the period were RMB 0.28, down from RMB 0.32 in the previous year[134]. Research and Development - Morimatsu is investing HKD 200 million in R&D for new technologies, particularly in biopharmaceuticals and advanced manufacturing processes[1]. - The company has a strong focus on advanced manufacturing and engineering services, including modular factory solutions[17]. - The R&D team collaborates with downstream enterprises and renowned universities to develop new products and technologies across multiple fields, including pharmaceutical separation systems and solid-state battery technologies[40]. - Research and development expenses decreased to approximately RMB 113,902 thousand, down 48.5% from RMB 219,020 thousand in the previous year[63]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share by 2026[1]. - The company has established subsidiaries in Singapore and Malaysia, enhancing its international presence and operational capabilities[11]. - The company is pursuing both organic growth through new business incubation and external growth via mergers and acquisitions[17]. - The company is focusing on mergers and acquisitions to enhance business synergies and support sustainable development, targeting organizations that can provide market access and international capabilities[26]. - The company aims to enhance its global delivery capabilities by investing in mergers and acquisitions to address gaps in its value chain and expand international talent and production capacity[28]. Sustainability and Innovation - The company is focusing on sustainability initiatives, aiming to reduce carbon emissions by 20% over the next three years[1]. - The company aims to provide globally leading core equipment and high-value-added process solutions, focusing on sustainable energy and materials[13]. - The company is committed to continuous innovation and sustainable development, aligning with modern industrial civilization[15]. - The company aims to enhance the green development level of new data centers and accelerate green technology product innovation and service capabilities[51]. Financial Management and Risks - The company’s operational expenditure (OPEX) is closely monitored to ensure profitability and efficiency in daily operations[11]. - The company has established a risk management framework to assess and manage significant operational, financial, and market risks[92]. - Interest rate risks include fair value interest rate risks related to fixed-rate bank borrowings and cash flow interest rate risks associated with floating-rate borrowings, with regular reviews to mitigate these risks[95]. - Foreign exchange risks arise mainly from revenue in RMB, USD, and EUR, with strategies in place to monitor and reduce exposure through forward contracts and RMB-denominated sales orders[96]. - The company is focused on expanding its global business despite ongoing geopolitical and international trade risks, which may impact operational costs and potential liabilities[93]. Shareholder Information - As of June 30, 2025, major shareholders include Senmatsu Holdings with a 60.22% stake, holding 750,000,000 shares[98]. - The total number of issued shares as of June 30, 2025, is 1,245,419,000, with significant ownership concentrated among a few key stakeholders[99]. - The board declared a final dividend of HKD 0.15 per share for the last fiscal year, totaling HKD 182,926,000, compared to HKD 0.10 per share totaling HKD 121,328,000 for the previous year[189]. Operational Highlights - The company has completed the acquisition of a local competitor, which is expected to enhance its production capacity by 30%[1]. - The company has developed a diverse capability structure to mitigate cyclical downturns in specific industries, ensuring resilience against market fluctuations[21]. - The company has established a global presence with subsidiaries and service centers in multiple countries, including China, Japan, the US, and several European nations[35]. - The company has established comprehensive credit control policies to assess customer creditworthiness and ensure adequate provisions for expected credit losses[97].

北京控股有限公司 股份代號 : 392 中期報告 2025 BEIJING ENTERPRISES HOLDINGS LIMITED Stock Code : 392 Interim Report 2025 BEIJING ENTER PR ISES HOLDINGS LIMITED 北 京 控 股 有 限 公 司 Interim Report 審核委員會 2025 中 期 報 告 目錄 | 2 | 一、 | 公司資料 | | --- | --- | --- | | 3 | 二、 | 期內亮點 | | 4 | 三、 | 財務摘要 | | 5 | 四、 | 運營業績概要 | | 5 | 五、 | 中期股息 | | 6 | 六、 | 主席報告 | | 9 | 七、 | 本集團業務 | | 15 | 八、 | 管理層討論及分析 | | 30 | 九、 | 簡明綜合財務報表 | | 30 | | （一）簡明綜合損益表（未經審核） | | 31 | | （二）簡明綜合全面收益表（未經審核） | | 32 | | （三）簡明綜合財務狀況表（未經審核） | | 34 | | （四）簡明綜合權益變動表（未經審核） | | 3 ...

[Company Information](index=2&type=section&id=Company%20Information) This section provides an overview of the company's fundamental administrative and contact details [Board of Directors and Company Secretary](index=3&type=section&id=Board%20of%20Directors%20and%20Company%20Secretary) The report lists the composition of the company's executive directors, non-executive directors, independent non-executive directors, and members of the audit, remuneration, and nomination committees, noting Mr. Wang Yanxin, an independent non-executive director, will resign on August 1, 2025 - Independent Non-Executive Director Mr. Wang Yanxin will resign on **August 1, 2025**[3](index=3&type=chunk) [Registered Office and Principal Place of Business](index=3&type=section&id=Registered%20Office%20and%20Principal%20Place%20of%20Business) The company's registered office is in Bermuda, with its principal place of business in Tsim Sha Tsui, Kowloon, Hong Kong - The company's registered office is at Clarendon House, Bermuda, with its principal place of business at Tower One, Gateway, 25 Canton Road, Tsim Sha Tsui, Kowloon, Hong Kong[3](index=3&type=chunk) [Principal Bankers and Auditor](index=3&type=section&id=Principal%20Bankers%20and%20Auditor) The company's principal banker is DBS Bank (Hong Kong) Limited, and its auditor is Grant Thornton Hong Kong Limited - Principal banker is **DBS Bank (Hong Kong) Limited**, and the auditor is **Grant Thornton Hong Kong Limited**[3](index=3&type=chunk) [Share Registrar](index=3&type=section&id=Share%20Registrar) The company's principal share registrar is in Bermuda, and its Hong Kong branch share registrar is Tricor Tengard Limited - The principal share registrar is **Conyers Corporate Services (Bermuda) Limited**, and the Hong Kong branch is **Tricor Tengard Limited**[3](index=3&type=chunk)[4](index=4&type=chunk) [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) This section presents the company's financial performance over the period, detailing revenues, costs, and profits or losses Key Financial Data from Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30, 2025) | Indicator | 2025年6月30日 (HKD thousands) | 2024年6月30日 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | 177,334 | 142,600 | 34,734 | 24.36% | | Cost of Sales | (109,926) | (77,672) | (32,254) | 41.53% | | Gross Profit | 67,408 | 64,928 | 2,480 | 3.82% | | Operating Profit/(Loss) | 8,920 | (10,766) | 19,686 | 182.85% | | Loss for the Period | (3,253) | (26,518) | 23,265 | 87.73% | | Profit/(Loss) from Continuing Operations Attributable to Owners of the Company | 6,309 | (10,777) | 17,086 | 158.55% | | Basic and Diluted Earnings/(Loss) Per Share (HK cents) | 0.42 | (0.74) | 1.16 | 156.76% | [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This section outlines the company's assets, liabilities, and equity at a specific point in time, reflecting its financial health Key Data from Condensed Consolidated Statement of Financial Position (As at June 30, 2025) | Indicator | 2025年6月30日 (HKD thousands) | 2024年12月31日 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Total Assets | 931,931 | 923,846 | 8,085 | 0.87% | | Non-current Assets | 481,981 | 501,397 | (19,416) | -3.87% | | Current Assets | 443,516 | 416,015 | 27,501 | 6.61% | | Total Equity | 182,148 | 184,921 | (2,773) | -1.50% | | Total Liabilities | 749,783 | 738,925 | 10,858 | 1.47% | | Non-current Liabilities | 494,697 | 350,277 | 144,420 | 41.23% | | Current Liabilities | 255,086 | 388,648 | (133,562) | -34.37% | | Net Current Assets | 194,864 | 33,801 | 161,063 | 476.51% | [Condensed Consolidated Statement of Changes in Equity](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This section details the changes in the company's equity over the period, reflecting movements in capital and retained earnings Key Data from Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30, 2025) | Indicator | 2025年6月30日 (HKD thousands) | 2024年6月30日 (HKD thousands) | Change (HKD thousands) | | :--- | :--- | :--- | :--- | | Equity Attributable to Owners of the Company (End of Period) | 232,786 | 251,898 | (19,112) | | Non-controlling Interests (End of Period) | (50,638) | (23,909) | (26,729) | | Total Equity (End of Period) | 182,148 | 227,989 | (45,841) | | Loss for the Period (Attributable to Owners of the Company) | 6,180 | (10,777) | 16,957 | | Total Comprehensive Expense for the Period (Attributable to Owners of the Company) | 6,660 | (9,847) | 16,507 | [Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This section presents the cash inflows and outflows from operating, investing, and financing activities, illustrating the company's liquidity and solvency Key Data from Condensed Consolidated Statement of Cash Flows (For the six months ended June 30, 2025) | Indicator | 2025年6月30日 (HKD thousands) | 2024年6月30日 (HKD thousands) | Change (HKD thousands) | | :--- | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (11,984) | (10,289) | (1,695) | | Net Cash Used in Investing Activities | (4,671) | (12,444) | 7,773 | | Net Cash (Used in)/Generated from Financing Activities | (18,934) | 20,926 | (39,860) | | Net Decrease in Cash and Cash Equivalents | (35,589) | (1,807) | (33,782) | | Cash and Cash Equivalents at End of Period | 171,945 | 180,715 | (8,770) | [Notes to the Condensed Consolidated Interim Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) This section provides detailed explanations and supplementary information for the figures presented in the condensed consolidated interim financial statements [1. General Information](index=9&type=section&id=1.%20General%20Information) The company is a limited company registered in Bermuda, with shares listed on the Main Board of the Hong Kong Stock Exchange, primarily engaged in SMT equipment manufacturing and energy business, having terminated its radar business - The company is primarily engaged in **SMT equipment manufacturing** and **electricity sales and provision of electricity spot market trading and ancillary services (energy business)**[14](index=14&type=chunk) - For the six months ended June 30, 2025, the Group has terminated its **radar hardware manufacturing and intelligent software development, application, and system integration business**[14](index=14&type=chunk) [2. Basis of Preparation](index=10&type=section&id=2.%20Basis%20of%20Preparation) The condensed consolidated interim financial statements are prepared in accordance with HKAS 34 and the Listing Rules, and should be read in conjunction with the annual consolidated financial statements - The financial statements are prepared in accordance with **Hong Kong Accounting Standard 34 'Interim Financial Reporting'** and the **Listing Rules**[17](index=17&type=chunk) [3. Significant Accounting Policies](index=11&type=section&id=3.%20Significant%20Accounting%20Policies) The financial statements are primarily prepared under the historical cost convention, except for investment properties and financial assets measured at fair value; several revised HKFRSs adopted this period had no significant impact on consolidated results or financial position - The financial statements are primarily prepared under the **historical cost convention**, with certain assets presented at fair value[18](index=18&type=chunk) - The adoption of newly revised Hong Kong Financial Reporting Standards had **no significant impact** on the consolidated results and financial position for the current and prior periods[19](index=19&type=chunk) [4. Critical Accounting Estimates and Judgements](index=11&type=section&id=4.%20Critical%20Accounting%20Estimates%20and%20Judgements) The preparation of financial statements involves management's critical judgments, estimates, and assumptions regarding accounting policy application and carrying amounts of assets, liabilities, income, and expenses, where actual results may differ - Financial statement preparation involves management's **critical judgments, estimates, and assumptions**, and actual results may differ[20](index=20&type=chunk) [5. Revenue](index=12&type=section&id=5.%20Revenue) Total revenue for the period was HKD 177,334 thousand, primarily from the production and sale of industrial products (HKD 152,408 thousand) and electricity sales (HKD 24,926 thousand), with revenue recognition completed at a point in time Revenue Composition (For the six months ended June 30, 2025) | Revenue Source | 2025年6月30日 (HKD thousands) | 2024年6月30日 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Production and Sale of Industrial Products | 152,408 | 134,758 | 17,650 | 13.10% | | Electricity Sales | 24,926 | 7,842 | 17,084 | 217.85% | | **Total** | **177,334** | **142,600** | **34,734** | **24.36%** | [6. Segment Information](index=13&type=section&id=6.%20Segment%20Information) The Group primarily operates in industrial product manufacturing and sales and energy business, with the radar business terminated; the industrial products segment saw significant revenue and gross profit growth, while the energy business revenue increased substantially but still recorded gross loss and pre-tax loss - The **radar business has been terminated**, and segment information does not include discontinued operations[23](index=23&type=chunk) Revenue and Gross Profit/(Loss) from Continuing Operations by Segment (For the six months ended June 30, 2025) | Segment | 2025 Revenue (HKD thousands) | 2024 Revenue (HKD thousands) | Revenue Change Rate | 2025 Gross Profit/(Loss) (HKD thousands) | 2024 Gross Profit (HKD thousands) | Gross Profit Change Rate | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Industrial Product Manufacturing and Sales | 150,706 | 131,709 | 14.42% | 74,610 | 59,835 | 24.69% | | Energy Business | 24,926 | 7,842 | 217.85% | (8,904) | 2,044 | -535.52% | | Unallocated Items | 1,702 | 3,049 | -44.18% | 1,702 | 3,049 | -44.18% | | **Total** | **177,334** | **142,600** | **24.36%** | **67,408** | **64,928** | **3.82%** | [7. Other Income](index=14&type=section&id=7.%20Other%20Income) Other income for the period was HKD 1,384 thousand, mainly from government grants, a significant decrease from the prior period Other Income Composition (For the six months ended June 30, 2025) | Income Source | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Sale of Scrap Materials | 31 | 294 | (263) | -89.46% | | Government Grants | 1,353 | 4,656 | (3,303) | -70.94% | | **Total** | **1,384** | **4,950** | **(3,566)** | **-72.04%** | [8. Finance Income and Expenses](index=15&type=section&id=8.%20Finance%20Income%20and%20Expenses) Net finance expenses for the period were HKD 10,767 thousand, a decrease from the prior period, primarily due to lower interest expenses on bank and other borrowings Finance Income and Expenses (For the six months ended June 30, 2025) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Finance Income (Bank Deposit Interest) | 561 | 913 | (352) | -38.55% | | Finance Expenses (Borrowing Interest) | (11,328) | (13,410) | 2,082 | -15.53% | | **Net Finance Expenses** | **(10,767)** | **(12,497)** | **1,730** | **-13.84%** | [9. Income Tax Expense/(Credit) from Continuing Operations](index=15&type=section&id=9.%20Income%20Tax%20Expense%2F(Credit)%20from%20Continuing%20Operations) Income tax expense from continuing operations for the period was HKD 1,085 thousand, compared to an income tax credit of HKD 1,453 thousand in the prior period, mainly due to China corporate income tax Income Tax from Continuing Operations (For the six months ended June 30, 2025) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | | :--- | :--- | :--- | :--- | | China Corporate Income Tax Expense/(Credit) | 1,085 | (1,453) | 2,538 | [10. Discontinued Operations](index=16&type=section&id=10.%20Discontinued%20Operations) Discontinued operations (radar business) resulted in a loss of HKD 187 thousand for the period, primarily administrative expenses, with no such loss in the prior period Loss from Discontinued Operations (For the six months ended June 30, 2025) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Revenue | — | — | | Administrative Expenses | (187) | — | | Loss for the Period from Discontinued Operations | (187) | — | - Discontinued operations primarily refer to the **radar business**, incurring a loss of **HKD 187 thousand** for the period[14](index=14&type=chunk)[28](index=28&type=chunk) [11. Earnings/(Loss) Per Share](index=17&type=section&id=11.%20Earnings%2F(Loss)%20Per%20Share) Basic and diluted earnings per share from continuing operations were 0.43 HK cents, loss per share from discontinued operations was 0.01 HK cents, totaling 0.42 HK cents earnings per share, achieving a turnaround Earnings/(Loss) Per Share (For the six months ended June 30, 2025) | Indicator | 2025 (HK cents) | 2024 (HK cents) | Change (HK cents) | | :--- | :--- | :--- | :--- | | Continuing Operations | 0.43 | (0.74) | 1.17 | | Discontinued Operations | (0.01) | — | (0.01) | | **Basic and Diluted Earnings/(Loss)** | **0.42** | **(0.74)** | **1.16** | [12. Dividends](index=17&type=section&id=12.%20Dividends) No dividends were declared or proposed by the company for the six months ended June 30, 2025 - No dividends were declared or proposed for the current period or the prior corresponding period[30](index=30&type=chunk) [13. Trade and Other Receivables](index=18&type=section&id=13.%20Trade%20and%20Other%20Receivables) As at June 30, 2025, total trade and bills receivables were HKD 105,564 thousand, a significant increase from HKD 72,136 thousand at the end of 2024, with receivables over 180 days growing substantially Ageing Analysis of Trade and Bills Receivables (As at June 30, 2025) | Ageing | 2025年6月30日 (HKD thousands) | 2024年12月31日 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | 0 to 90 Days | 48,379 | 58,476 | (10,097) | -17.27% | | 91 to 180 Days | 28,658 | 11,779 | 16,879 | 143.29% | | Over 180 Days | 28,527 | 1,881 | 26,600 | 1414.14% | | **Total** | **105,564** | **72,136** | **33,382** | **46.28%** | [14. Trade and Other Payables](index=18&type=section&id=14.%20Trade%20and%20Other%20Payables) As at June 30, 2025, total trade and bills payables were HKD 45,693 thousand, a decrease from HKD 49,634 thousand at the end of 2024 Ageing Analysis of Trade and Bills Payables (As at June 30, 2025) | Ageing | 2025年6月30日 (HKD thousands) | 2024年12月31日 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | 0 to 90 Days | 40,141 | 43,702 | (3,561) | -8.15% | | 91-120 Days | 447 | 253 | 194 | 76.68% | | Over 120 Days | 5,105 | 5,679 | (574) | -10.11% | | **Total** | **45,693** | **49,634** | **(3,941)** | **-7.94%** | [15. Assets Classified as Held for Sale](index=18&type=section&id=15.%20Assets%20Classified%20as%20Held%20for%20Sale) As at June 30, 2025, the Group classified equipment, intangible assets, and inventories of the radar business, totaling HKD 6,434 thousand, as assets held for sale - Equipment, intangible assets, and inventories of the **radar business**, totaling **HKD 6,434 thousand**, were classified as assets held for sale[33](index=33&type=chunk) [Chairman's Report](index=18&type=section&id=Chairman%27s%20Report) This report from the Chairman provides an executive summary of the company's performance, strategic direction, and outlook [Overview](index=19&type=section&id=Overview) In the first half of 2025, the global economy faced challenges with slowing growth, but China's economy maintained steady progress with a 5.3% GDP increase; the Group adopted a prudent strategy, focusing on SMT and semiconductor equipment manufacturing and energy businesses - In the first half of 2025, global economic growth slowed, while China's GDP grew by **5.3%** and industrial value-added above designated size increased by **6.4%**[35](index=35&type=chunk) - The Group focuses on **SMT and semiconductor equipment manufacturing** and **energy businesses**, aiming to create greater commercial value and shareholder returns[35](index=35&type=chunk) [Business Review](index=19&type=section&id=Business%20Review) For the period, the Group's revenue increased by 24.4% year-on-year to HKD 177,334 thousand, and gross profit grew by 3.8% to HKD 67,408 thousand; SMT and semiconductor equipment manufacturing contributed 85.0% of revenue, the energy business gradually stabilized, administrative expenses decreased, resulting in a profit attributable to owners of HKD 6,180 thousand, achieving a turnaround Key Financial Data from Group Business Review (For the six months ended June 30, 2025) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | | Overall Revenue | 177,334 | 142,600 | 24.4% | | Gross Profit | 67,408 | 64,928 | 3.8% | | SMT and Semiconductor Equipment Manufacturing Business Revenue | 150,706 | 131,709 | 14.4% | | SMT and Semiconductor Equipment Manufacturing Business Gross Profit | 74,610 | 59,835 | 24.7% | | Energy Business Segment Revenue | 24,926 | 7,842 | 217.85% | | Profit Attributable to Owners of the Company | 6,180 | (10,777) | Turnaround | - The Group achieved a **turnaround**, primarily due to stable operations in **SMT and semiconductor equipment manufacturing**, gradual stabilization of the **energy business**, and **reduced administrative expenses**[36](index=36&type=chunk) - The Group commissioned China's first grid-side new energy storage project for spot trading and ancillary services in Datong, Shanxi, at the end of 2023, with the energy business segment revenue reaching **HKD 24,926 thousand** this period[37](index=37&type=chunk) [Industry Trends](index=20&type=section&id=Industry%20Trends) This section analyzes the broader market and technological trends impacting the company's SMT and semiconductor equipment manufacturing and energy businesses [SMT and Semiconductor Equipment Manufacturing Related Industries](index=20&type=section&id=SMT%20and%20Semiconductor%20Equipment%20Manufacturing%20Related%20Industries) China's manufacturing sector is stable and improving, with significant growth in equipment manufacturing and high-tech manufacturing value-added; demand for Mini LED TVs, AI servers, and automotive electronics PCBs is rising, with the global PCB market expected to reach USD 96.8 billion in 2025, China's smartphone shipments to reach 291 million units, the automotive electronics market to reach RMB 1.28 trillion, and China's IoT spending to reach USD 165.86 billion - China's **equipment manufacturing** and **high-tech manufacturing** value-added grew by **10.2%** and **9.5%**, respectively[38](index=38&type=chunk) - By 2025, China's **Mini LED TV penetration rate** is expected to exceed **20%**, the **global PCB market size** to reach **USD 96.8 billion**, and China's **smartphone shipments** to reach **291 million units**[38](index=38&type=chunk) - By 2025, China's **automotive electronics market size** is expected to reach **RMB 1.28 trillion**, and **IoT spending** to reach **USD 165.86 billion**[39](index=39&type=chunk) [Energy Industry](index=21&type=section&id=Energy%20Industry) China's power industry continues to grow with increasing renewable energy share, and energy storage is crucial for alleviating grid absorption pressure; since 2025, China's energy storage industry has grown rapidly, with new energy storage installed capacity continuously climbing to 94.91 million kW / 222 million kWh by the end of June, an increase of approximately 29% year-on-year; multiple policies have been introduced to support energy storage development, including expanding application scenarios, improving utilization, promoting technological innovation, strengthening standard systems, and perfecting market mechanisms - **Energy storage** is a key technology for alleviating grid absorption pressure and enhancing power system regulation capabilities[41](index=41&type=chunk) - By the end of June, national new energy storage installed capacity reached **94.91 million kW / 222 million kWh**, an increase of approximately **29%** compared to the end of 2024[41](index=41&type=chunk) - Multiple government departments have introduced policies to promote **large-scale construction, technological innovation, standard system improvement, and market mechanism optimization** for new energy storage[42](index=42&type=chunk) [Development and Outlook](index=22&type=section&id=Development%20and%20Outlook) China's economy is expected to maintain steady progress in the second half of 2025; the Group will consolidate its core SMT and semiconductor equipment manufacturing business, enhance R&D and market competitiveness, and accelerate the development of its energy business to contribute more revenue and shareholder value - China's economy is expected to continue its **stable growth** in the second half of 2025, with domestic demand, new energy, and high-end manufacturing as key drivers[44](index=44&type=chunk) - The Group will operate its **SMT and semiconductor equipment manufacturing business** steadily, consolidate its **independent R&D advantages**, and accelerate the development of its **energy business** to contribute more revenue[44](index=44&type=chunk) [Management Discussion and Analysis](index=22&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's perspective on the company's financial performance, operational results, and future prospects, offering insights beyond the financial statements [Performance Review](index=23&type=section&id=Performance%20Review) Revenue for the period was HKD 177,334 thousand, up 24.4% year-on-year; SMT and semiconductor equipment manufacturing accounted for 85.0% of total revenue, with increased contribution from the energy business; profit attributable to owners was HKD 6,180 thousand, and comprehensive income was HKD 6,660 thousand, both increasing year-on-year, mainly due to stable energy business operations and reduced administrative expenses - Revenue increased by **24.4%** year-on-year to **HKD 177,334 thousand**, with profit attributable to owners reaching **HKD 6,180 thousand**, achieving a turnaround[46](index=46&type=chunk) - The energy business gradually entered **stable operation**, and reduced one-off expenses and daily management costs led to **lower administrative expenses**[46](index=46&type=chunk) - The domestic manufacturing and energy industries have **broad prospects for modernization and green transformation**, and the Group will actively seize development opportunities[47](index=47&type=chunk) [SMT and Semiconductor Equipment Manufacturing Business](index=23&type=section&id=SMT%20and%20Semiconductor%20Equipment%20Manufacturing%20Business) For the period, SMT and semiconductor equipment manufacturing revenue was HKD 150,706 thousand, up 14.4% year-on-year; segment gross profit was HKD 74,610 thousand, up 24.7%; segment profit before tax was HKD 23,384 thousand, up 38.4%, making it the primary source of revenue and profit; the company actively expanded its market, launched an e-commerce platform, participated in domestic and international exhibitions, and deepened its overseas strategic layout, benefiting from growing market demand for Mini LED, new energy vehicles, and domestic semiconductor equipment substitution SMT and Semiconductor Equipment Manufacturing Business Performance (For the six months ended June 30, 2025) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | | Business Segment Revenue | 150,706 | 131,709 | 14.4% | | Segment Gross Profit | 74,610 | 59,835 | 24.7% | | Segment Profit Before Income Tax | 23,384 | 16,890 | 38.4% | - The company actively promotes its market presence and deepens its overseas strategic layout by launching the **'Nitto Technology Mall' e-commerce platform** and participating in **domestic and international industry exhibitions**[48](index=48&type=chunk) - SMT technology is widely used in communications, computers, automotive electronics, consumer electronics, and other fields, benefiting from growing market demand for **Mini LED, new energy vehicles, and domestic semiconductor equipment substitution**[49](index=49&type=chunk)[50](index=50&type=chunk) [Energy Business](index=24&type=section&id=Energy%20Business) The Group's Herong New Energy Storage Power Station in Datong, Shanxi, commenced commercial operation in 2023; for the period, energy business revenue was HKD 24,926 thousand, but still recorded a gross loss of HKD 8,904 thousand and a pre-tax loss of HKD 19,133 thousand; the Herong Power Station has passed secondary and primary frequency regulation technical tests and entered market operation, with its frequency regulation response speed and accuracy reaching industry-leading levels; the power station has initiated new energy leasing business and plans to consolidate frequency regulation revenue, participate in the electricity spot market and standby compensation, and explore diversified development opportunities Energy Business Performance (For the six months ended June 30, 2025) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 24,926 | 7,842 | | Segment Gross Loss | (8,904) | 2,044 | | Segment Loss Before Income Tax | (19,133) | (31,413) | - The Herong Power Station has passed **secondary frequency regulation (AGC)** and **primary frequency regulation (PFR)** technical tests and officially entered market operation, with its K-value and charge-discharge conversion rate ranking among the industry's best[53](index=53&type=chunk) - The Herong Power Station has initiated **new energy leasing business** and plans to consolidate frequency regulation revenue, actively participate in the **electricity spot market and standby compensation**, and explore diversified development opportunities[53](index=53&type=chunk) [Financial Review](index=26&type=section&id=Financial%20Review) This section provides a detailed analysis of the company's financial performance, including revenue, costs, profits, and key financial ratios [Revenue](index=26&type=section&id=Revenue) Total revenue for the period was HKD 177,334 thousand, a 24.4% year-on-year increase, primarily driven by SMT equipment manufacturing and related businesses and electricity sales Revenue by Business Segment (For the six months ended June 30, 2025) | Business Segment | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | SMT Equipment Manufacturing and Related Businesses | 150,706 | 131,709 | 18,997 | 14.42% | | Electricity Sales | 24,926 | 7,842 | 17,084 | 217.85% | | Integrated Services | 1,702 | 3,049 | (1,347) | -44.18% | | **Total** | **177,334** | **142,600** | **34,734** | **24.36%** | [Other Income](index=26&type=section&id=Other%20Income) Other income for the period was HKD 1,384 thousand, mainly from government grants - Other income for the period was **HKD 1,384 thousand**, primarily from **government grants**[55](index=55&type=chunk) [Distribution Costs](index=26&type=section&id=Distribution%20Costs) Distribution costs for the period were HKD 26,563 thousand, an increase of HKD 5,950 thousand year-on-year, mainly growing with sales revenue Distribution Costs (For the six months ended June 30, 2025) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Distribution Costs | 26,563 | 20,613 | 5,950 | 28.86% | [Administrative Expenses](index=26&type=section&id=Administrative%20Expenses) Administrative expenses for the period were HKD 34,570 thousand, a decrease of HKD 24,954 thousand year-on-year, mainly due to the reclassification of depreciation from the electricity sales segment to cost of sales Administrative Expenses (For the six months ended June 30, 2025) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Administrative Expenses | 34,570 | 59,524 | (24,954) | -41.92% | [Net Finance Expenses](index=27&type=section&id=Net%20Finance%20Expenses) Net finance expenses for the period were HKD 10,767 thousand, a decrease of HKD 1,730 thousand year-on-year, primarily due to reduced interest expenses Net Finance Expenses (For the six months ended June 30, 2025) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Net Finance Expenses | 10,767 | 12,497 | (1,730) | -13.84% | [Profit for the Period](index=27&type=section&id=Profit%20for%20the%20Period) Profit attributable to owners for the period was HKD 6,180 thousand, achieving a turnaround - Profit attributable to owners for the period was **HKD 6,180 thousand**, achieving a **turnaround**[59](index=59&type=chunk) [EBITDA](index=27&type=section&id=EBITDA) EBITDA for the period was HKD 21,750 thousand, with an EBITDA margin of approximately 12.26% EBITDA (For the six months ended June 30, 2025) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | EBITDA | 21,750 | 23,916 | (2,166) | -9.06% | | EBITDA Margin | 12.26% | 16.77% | -4.51% | -26.89% | [Current Ratio](index=27&type=section&id=Current%20Ratio) As at June 30, 2025, the Group's net current assets were HKD 194,864 thousand, with a current ratio of approximately 176.39%, indicating ample working capital Current Ratio (As at June 30, 2025) | Indicator | 2025年6月30日 (HKD thousands) | 2024年12月31日 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Net Current Assets | 194,864 | 33,801 | 161,063 | 476.51% | | Current Ratio | 176.39% | 108.08% | 68.31% | 63.20% | [Working Capital Management](index=28&type=section&id=Working%20Capital%20Management) As at June 30, 2025, cash and bank balances decreased to HKD 171,945 thousand; average trade receivables turnover days, trade payables turnover days, and inventory turnover days all increased Working Capital Management Indicators (As at June 30, 2025) | Indicator | 2025年6月30日 | 2024年12月31日 | Change | | :--- | :--- | :--- | :--- | | Cash and Bank Balances (HKD thousands) | 171,945 | 205,301 | (33,356) | | Average Trade Receivables Turnover Days | 180 Days | 95 Days | 85 Days | | Average Trade Payables Turnover Days | 156 Days | 72 Days | 84 Days | | Average Inventory Turnover Days | 80 Days | 44 Days | 36 Days | [Pledge of the Group's Assets](index=28&type=section&id=Pledge%20of%20the%20Group%27s%20Assets) As at June 30, 2025, the Group's bank facilities were secured by first legal charges over certain land and buildings with a total net book value of approximately HKD 70,873 thousand - The Group's bank facilities are secured by first legal charges over land and buildings with a net book value of approximately **HKD 70,873 thousand**[64](index=64&type=chunk) [Equity and Liabilities](index=28&type=section&id=Equity%20and%20Liabilities) As at June 30, 2025, the Group's net assets attributable to owners were approximately HKD 232,786 thousand, with equity increasing by HKD 6,660 thousand during the period Equity and Liabilities (As at June 30, 2025) | Indicator | 2025年6月30日 (HKD thousands) | 2024年12月31日 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Equity Attributable to Owners of the Company | 232,786 | 226,126 | 6,660 | 2.95% | [Employees](index=28&type=section&id=Employees) As at June 30, 2025, the Group employed approximately 285 full-time employees and workers in mainland China and approximately 24 staff in Hong Kong, enhancing employee capabilities through regular training and welfare programs - The Group employs approximately **285 full-time employees** in mainland China and approximately **24 staff** in Hong Kong[66](index=66&type=chunk) - The Group maintains and enhances employee capabilities through **regular training, employee benefits, and performance-linked bonuses**[66](index=66&type=chunk) [Principal Risks and Uncertainties](index=28&type=section&id=Principal%20Risks%20and%20Uncertainties) This section identifies and discusses the key risks and uncertainties that could materially affect the company's business, financial condition, and operating results [Operational Risks](index=29&type=section&id=Operational%20Risks) The Group's various business segments face operational risks, which are effectively mitigated through management monitoring, risk management policies, and whistleblowing procedures - The Group manages operational risks through **management monitoring, risk management policies, and whistleblowing procedures** across its business segments[68](index=68&type=chunk) [Financial Risks](index=29&type=section&id=Financial%20Risks) This section details the financial risks the company faces, including credit, liquidity, and foreign exchange risks, and how they are managed [Credit Risk](index=29&type=section&id=Credit%20Risk) The Board closely monitors credit risk, with management responsible for credit approval and collection procedures, ensuring adequate impairment provisions for irrecoverable amounts, thereby effectively reducing credit risk - The Group mitigates credit risk through **close monitoring, strict credit approval and collection procedures**, and ensuring **adequate impairment provisions**[70](index=70&type=chunk) [Liquidity Risk](index=29&type=section&id=Liquidity%20Risk) The Group has established an appropriate liquidity risk management framework, maintaining sufficient cash and cash equivalents to meet working capital needs and mitigate cash flow fluctuations - The Group effectively manages liquidity risk by establishing a **liquidity risk management framework** and maintaining **sufficient cash and cash equivalents**[71](index=71&type=chunk) [Foreign Exchange Risk](index=29&type=section&id=Foreign%20Exchange%20Risk) The Group faces foreign exchange risk arising from business transactions, assets, and liabilities denominated in multiple currencies such as RMB, HKD, and USD, and will continue to closely monitor and implement hedging measures when necessary - The Group faces foreign exchange risk from transactions, assets, and liabilities denominated in **RMB, HKD, USD**, and other currencies, and will **closely monitor and implement hedging measures** as needed[72](index=72&type=chunk) [Disclosure of Interests](index=29&type=section&id=Disclosure%20of%20Interests) This section provides information on the interests of directors and substantial shareholders in the company's shares and underlying shares [Directors' Interests in Shares and Underlying Shares](index=30&type=section&id=Directors%27%20Interests%20in%20Shares%20and%20Underlying%20Shares) As at June 30, 2025, no director had any disclosable interests or short positions in the shares, underlying shares, or debentures of the company or its associated corporations - As at June 30, 2025, no director held any **disclosable interests or short positions** in the shares, underlying shares, or debentures of the company or its associated corporations[73](index=73&type=chunk) [Directors' Rights to Acquire Shares or Debentures](index=30&type=section&id=Directors%27%20Rights%20to%20Acquire%20Shares%20or%20Debentures) During the period, the company did not grant any rights to any director or their spouse or minor children to acquire shares or debentures of the company, nor were any such rights exercised - During the period, the company did not grant any rights to any director or their associates to acquire company shares or debentures, nor were any such rights exercised[74](index=74&type=chunk) [Substantial Shareholders' Interests in Shares and Underlying Shares](index=30&type=section&id=Substantial%20Shareholders%27%20Interests%20in%20Shares%20and%20Underlying%20Shares) As at June 30, 2025, Core Ding Limited, Chen Ping, Bi Tianfu, and Da Guang were substantial shareholders, with Core Ding Limited holding 67.85% of shares as the largest shareholder Substantial Shareholders' Long Positions in Shares (As at June 30, 2025) | Shareholder Name | Nature of Interest | Number of Ordinary Shares Held | Approximate Percentage of Total Equity (%) | | :--- | :--- | :--- | :--- | | Core Ding Limited | Beneficial Owner | 987,176,230 | 67.85 | | Chen Ping | Beneficial Owner | 100,000,000 | 6.87 | | Bi Tianfu | Beneficial Owner | 87,783,168 | 6.03 | | Da Guang | Beneficial Owner | 84,270,000 | 5.79 | - **Core Ding Limited** is 50.1% owned by **Qingxin (Suzhou Industrial Park) Asset Management Co., Ltd.**, making it the ultimate controlling shareholder of the company[14](index=14&type=chunk)[77](index=77&type=chunk) [Corporate Governance and Other Information](index=31&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section details the company's adherence to corporate governance principles and other relevant information for stakeholders [Corporate Governance Practices](index=32&type=section&id=Corporate%20Governance%20Practices) The company is committed to complying with the Corporate Governance Code and regularly reviews it to ensure adherence to Appendix C1 of the Listing Rules; the company complied with the code throughout the period - The company has adopted the **Corporate Governance Code** set out in Appendix C1 of the Listing Rules and complied with it during the period[78](index=78&type=chunk) [Audit Committee](index=32&type=section&id=Audit%20Committee) The Audit Committee has reviewed the Group's interim results for the six months ended June 30, 2025, and found them to be in compliance with applicable accounting standards, laws, and Listing Rules - The Audit Committee has reviewed the interim results and found them to be in compliance with **applicable accounting standards, laws, and Listing Rules**[79](index=79&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=32&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the period, neither the company nor its subsidiaries purchased, sold, or redeemed any **listed securities**[80](index=80&type=chunk) [Dividends](index=32&type=section&id=Dividends) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an **interim dividend** for the current period[81](index=81&type=chunk) [Standard Code for Securities Transactions by Directors](index=32&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The company has adopted the Standard Code for Securities Transactions by Directors as set out in Appendix C3 of the Listing Rules, and all directors confirm compliance with the code - The company has adopted the **Standard Code for Securities Transactions by Directors**, and all directors confirm compliance[82](index=82&type=chunk) [Publication of Interim Report on HKEX and Company Website](index=32&type=section&id=Publication%20of%20Interim%20Report%20on%20HKEX%20and%20Company%20Website) This interim report will be published on the HKEX website and the company's website, and dispatched to shareholders - The interim report will be published on the **HKEX website** and the **company's website**, and dispatched to shareholders[83](index=83&type=chunk) [Cautionary Statement](index=32&type=section&id=Cautionary%20Statement) This statement advises investors on the inherent risks associated with relying on forward-looking information and unaudited financial data - The Board reminds investors that unaudited interim financial results and operating data are based on internal information, and undue reliance may pose investment risks; investors should exercise **extreme caution** when trading the company's securities[85](index=85&type=chunk) - The report contains forward-looking statements that do not constitute a guarantee of future performance, and actual results may differ significantly due to factors such as **industry economic conditions, changes in customer demand, and government policy changes**[85](index=85&type=chunk)

Financial Performance - For the six months ended June 30, 2025, the company reported total revenue of HKD 1,466,423,000, a significant increase from HKD 723,666,000 in the same period of 2024, representing a growth of approximately 102.5%[5] - The company recorded a net loss of HKD 245,990,000 for the period, an improvement compared to a net loss of HKD 859,224,000 in the prior year, indicating a reduction in losses by about 71.4%[5] - The gross profit increased from approximately HKD 544,864,000 for the six months ended June 30, 2024, to approximately HKD 1,010,124,000 during the review period[32] - The group reported a net loss of HKD 245,990,000 for the six months ended June 30, 2025, compared to a net loss of HKD 859,224,000 for the same period in 2024, showing an improvement of approximately 71.3%[92] - The company recorded a total comprehensive loss of HKD 893,201 for the six months ended June 30, 2025, compared to a loss of HKD 884,601 in the previous period[72] Revenue Breakdown - Revenue from property development was approximately HKD 894,967,000, up from HKD 101,036,000 in the same period last year, primarily due to an increase in the number of properties delivered[30] - The project management services segment contributed approximately HKD 506,853,000 to total revenue, compared to HKD 514,231,000 in the same period of 2024[30] - Rental income from investment properties decreased to approximately HKD 36,142,000 from HKD 72,706,000 in the same period last year, a decline of about 50%[26][31] - The group’s hotel operations revenue decreased to HKD 28,461,000 from HKD 194,540,000 in the previous year, a decline of approximately 85.3%[99] Assets and Liabilities - The total assets as of June 30, 2025, amounted to HKD 33,196,132,000, up from HKD 32,781,140,000 at the end of 2024, reflecting an increase of approximately 1.3%[5] - The total liabilities as of June 30, 2025, were HKD 30,126,488,000, compared to HKD 29,521,670,000 as of December 31, 2024, representing an increase of about 2.1%[95] - The total current liabilities amounted to HKD 27,869,963, an increase from HKD 27,455,239 as of December 31, 2024, reflecting a year-over-year increase of approximately 1.5%[69] - Non-current liabilities totaled HKD 2,256,525, an increase from HKD 2,066,431, indicating a growth of about 9.2%[69] Cash Flow and Financing - Cash and bank balances as of June 30, 2025, were approximately HKD 15,712,000, down from HKD 17,003,000 as of December 31, 2024[45] - The group’s outstanding interest-bearing bank and other borrowings were approximately HKD 14.48 billion as of June 30, 2025[78] - The net financing costs for the review period were approximately HKD 583,271,000, an increase from HKD 552,572,000 for the six months ended June 30, 2024, due to a decrease in interest capitalization rates[39] - The group plans to continue monitoring receivables from urban renewal projects and aims to recover them according to the agreed schedule[79] Projects and Developments - The company continues to focus on urban renewal projects in Guangzhou, enhancing its competitive advantage and industry position as an "urban renewal expert"[6] - The project "珠光金融城壹號" has a total saleable area of approximately 391,881 square meters, with a cumulative delivered area of 25,189 square meters as of June 30, 2025[8] - The project "珠光 • 逸景" has a total saleable area of approximately 164,603 square meters, with a cumulative delivered area of 154,361 square meters as of June 30, 2025[9] - The total land reserve of the company in China is approximately 730,848 square meters, which includes total saleable building area, pre-sold but not delivered area, and rental area[20] Shareholder Information - The company’s major shareholders, Zhu Qing Song and Liao Teng Jia, each hold 56.25% of the total issued share capital, amounting to 4,978,123,714 shares[161] - The total number of issued shares as of June 30, 2025, is 8,850,632,753 shares, which is used to calculate the approximate percentage of shareholdings[163] - The total number of shares held by the major shareholders indicates a significant concentration of ownership, with the top shareholders holding over 50% of the total issued shares[167] Compliance and Governance - The audit committee reviewed the accounting principles and policies adopted by the group and confirmed compliance with applicable accounting standards and listing rules[181] - The board expressed gratitude to shareholders and employees for their support and contributions to the group[182] - The board approved the interim financial information on August 29, 2025[156]