[Management Discussion and Analysis](index=3&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) This section provides an overview of the company's operational and financial performance, market outlook, and strategic initiatives for the reporting period [Business Review](index=3&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) United Energy Group Limited faced challenges in H1 2025 with declining oil prices and a 26.7% decrease in profit attributable to owners, yet achieved stable production growth through active management and new discoveries - In H1 2025, the average Brent crude oil price was **US$72.03 per barrel**, a decrease of approximately **14.04%** from US$83.79 per barrel in H1 2024[7](index=7&type=chunk) Profit Attributable to Owners | Metric | H1 2025 (HK$) | H1 2024 (HK$) | Change (%) | | :--- | :--- | :--- | :--- | | Profit Attributable to Owners | 740,147,000 | 1,010,276,000 | -26.7% | - During the reporting period, the Group drilled a total of **24 wells**, with **8 wells** in Pakistan assets and **16 wells** in Middle East and North Africa assets[7](index=7&type=chunk) - The Group achieved **3 commercial discoveries** in oil and gas exploration, with **1** in Pakistan and **2** in Egypt[8](index=8&type=chunk) Average Daily Production Comparison | Metric | H1 2025 (boe) | H1 2024 (boe) | Growth (%) | | :--- | :--- | :--- | :--- | | Average Operated Daily Production | 187,258 | 171,195 | 9.4% | | Average Working Interest Daily Production | 111,762 | 102,298 | 9.3% | - Cumulative operated production and cumulative working interest production both showed stable growth, primarily due to active management of existing wells and commercial discoveries from new wells[9](index=9&type=chunk) - The Group's reserve life remained at approximately **16 years**[13](index=13&type=chunk) - The central processing facility in Iraq's B9 block, with a daily crude oil processing capacity of **100,000 barrels** and a daily natural gas processing capacity of **130 million cubic feet**, is fully operational, and a **72-kilometer LPG export pipeline** has been successfully constructed[14](index=14&type=chunk) - The Group actively responds to global carbon reduction initiatives, adopting a "dual-driven" strategy to develop traditional fossil energy businesses while promoting clean energy projects, including solar and wind[17](index=17&type=chunk) [Exploration, Development, and Production](index=3&type=section&id=%E5%8B%98%E6%8E%A2%E3%80%81%E9%96%8B%E7%99%BC%E5%8F%8A%E7%94%A2%E5%93%81) The Group made three commercial discoveries and achieved overall production growth in H1 2025, with notable increases in Iraq assets offsetting declines in Pakistan and slight decreases in Egypt - The Group continued its oil and gas exploration efforts, adhering to a "value-driven, small and rich field exploration and discovery" strategy, resulting in **3 commercial discoveries** (1 in Pakistan, 2 in Egypt)[8](index=8&type=chunk) Average Daily Production by Asset | Asset | H1 2025 (boe) | H1 2024 (boe) | Change (%) | | :--- | :--- | :--- | :--- | | Pakistan (Operated) | 44,686 | 54,500 (Est.) | -18.0% | | Pakistan (Working Interest) | 31,571 | 38,349 | -17.7% | | Iraq B9 (Operated) | 101,390 | 74,826 (Est.) | +35.5% | | Iraq B9 (Working Interest) | 60,834 | 44,896 (Est.) | +35.5% | | Iraq Siba (Operated) | 26,604 | 26,315 (Est.) | +1.1% | | Iraq Siba (Working Interest) | 7,981 | 7,894 (Est.) | +1.1% | | Egypt (Operated) | 14,577 | 15,574 (Est.) | -6.4% | | Egypt (Working Interest) | 11,376 | 11,596 (Est.) | -1.9% | - The oil-to-gas ratio in Pakistan assets was approximately **21%**, 5 percentage points lower than the previous year[10](index=10&type=chunk) - The oil-to-gas ratio for Iraq B9 block was **100%**, and for Siba gas field, it was approximately **67%**[11](index=11&type=chunk) - The oil-to-gas ratio for Egypt assets was approximately **99%**[12](index=12&type=chunk) [Core Competencies Analysis](index=5&type=section&id=%E6%A0%B8%E5%BF%83%E7%AB%B6%E7%88%AD%E5%8A%9B%E5%88%86%E6%9E%90) The Group's core strengths include successful exploration, rapid development of large oil fields, industry-leading low-cost operations, excellent HSE performance, and commitment to low-carbon transition and social responsibility - Achieved **3 commercial discoveries** in H1, maintaining a reserve life of nearly **16 years**[13](index=13&type=chunk) - The central processing facility in Iraq's B9 block is fully operational, and a **72-kilometer LPG export pipeline** has been successfully constructed[14](index=14&type=chunk) - The Group is committed to efficient operational management, maintaining an industry-leading low-cost advantage, and possessing a robust financial position with low leverage[15](index=15&type=chunk) - Operational safety is a top priority, with HSE indicators at industry-leading levels and a comprehensive risk prevention and control system established[16](index=16&type=chunk) - Adopting a "dual-driven" strategy, developing traditional fossil energy businesses while promoting clean energy projects (solar and wind)[17](index=17&type=chunk) - High priority on employees, building a diverse international team, and actively investing in local community education, healthcare, and vocational training programs[18](index=18&type=chunk) [Sales and Marketing](index=6&type=section&id=%E9%8A%B7%E5%94%AE%E8%88%87%E5%B8%82%E5%A0%B4) In H1 2025, the Group's cumulative working interest sales of crude oil and condensate increased by 18.9%, but average realized prices fell by 13.6% due to lower Brent crude prices; natural gas sales decreased by 12.3% with a 3.0% price drop, while energy trading sold 896,723 metric tons of petrochemical products - Crude oil sales prices are primarily determined by international benchmark crude oil prices of similar quality, using Brent crude oil prices as a benchmark[19](index=19&type=chunk) - Crude oil from Egyptian assets is sold to the Egyptian National Oil and Gas Company, with prices typically slightly lower than Brent crude oil prices[19](index=19&type=chunk) Crude Oil and Condensate Sales Data | Metric | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Cumulative Working Interest Sales Volume | 15.1 million barrels | 12.7 million barrels | +18.9% | | Average Realized Price | US$68.19/barrel | US$78.93/barrel | -13.6% | - Natural gas sales prices are based on long-term sales agreements negotiated with customers, including a price review mechanism linked to international oil prices[20](index=20&type=chunk) Natural Gas Sales Data | Metric | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Cumulative Working Interest Sales Volume | 5.0 million boe | 5.7 million boe | -12.3% | | Average Realized Price | US$29.75/boe | US$30.67/boe | -3.0% | - The energy trading segment sold **896,723 metric tons** of petrochemical products, with an average realized price of approximately **US$532.15 per metric ton**[21](index=21&type=chunk) [Financial Performance](index=7&type=section&id=%E8%B2%A1%E5%8B%99%E6%A5%AD%E7%B8%BE) In H1 2025, profit attributable to owners decreased by 26.7% to HK$740 million, primarily due to lower average realized prices for crude oil and condensate, with revenue down 4.2% and gross profit down 30.8%, despite growth in trading and clean energy businesses Key Financial Indicators Comparison | Metric | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Profit Attributable to Owners | 740,147 | 1,010,276 | -26.7% | | Revenue | 8,087,956 | 8,439,807 | -4.2% | | Gross Profit | 1,306,118 | 1,888,578 | -30.8% | | Operating Profit | 1,162,820 | 1,501,328 | -22.5% | | Profit Before Tax | 1,029,078 | 1,375,268 | -25.2% | | Net Cash Inflow from Operating Activities | 2,739,813 | 4,343,781 | -36.9% | | Adjusted EBITDA | 3,427,420 | 4,156,371 | -17.5% | - The average realized price for oil and gas from exploration and production activities was approximately **US$58.58 per boe**, a year-on-year decrease of **8.4%**[22](index=22&type=chunk) Revenue by Business Segment | Business | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Exploration and Production | 4,318,738 | 5,049,188 | -14.46% | | Trading | 3,722,090 | 3,390,619 | +9.77% | | Clean Energy Business | 47,128 | – | N/A | - The decrease in revenue was primarily due to lower average realized prices for crude oil and condensate, partially offset by increased revenue from trading and new clean energy businesses[23](index=23&type=chunk) - Lifting costs for exploration and production activities increased by **14.8%** to approximately **HK$697 million**, with overall lifting costs per boe slightly up by **4.8%** to approximately **US$4.4**[25](index=25&type=chunk) - Depreciation and amortization decreased by **7.7%** to approximately **HK$2.355 billion**[26](index=26&type=chunk) - Exploration expenses decreased to approximately **HK$65.17 million**, primarily for geological and geophysical data studies and the write-off of dry and abandoned wells in Egyptian assets[28](index=28&type=chunk) - Administrative expenses increased to approximately **HK$374 million**, accounting for **4.6%** of revenue[29](index=29&type=chunk) - Finance costs decreased by **13.3%** to approximately **HK$142 million**, mainly due to the one-off amortization of upfront fees from loan repayments in the prior period, partially offset by increased trade finance loans; the weighted average borrowing interest rate was **9.69%** (2024: 13.47%)[30](index=30&type=chunk) - Income tax expense was approximately **HK$289 million**, with an effective tax rate of approximately **28.1%**, up 1.6 percentage points year-on-year[31](index=31&type=chunk) - Net cash outflow from investing activities decreased by **27.3%** to approximately **HK$2.123 billion**, primarily due to a **22.3%** reduction in capital expenditure[33](index=33&type=chunk) - Net cash outflow from financing activities was approximately **HK$1.566 billion**, mainly comprising dividends paid of approximately **HK$1.292 billion** and loan repayments of approximately **HK$186 million**[34](index=34&type=chunk) - The Board does not recommend the payment of an interim dividend for the reporting period[35](index=35&type=chunk) [Business and Market Outlook](index=12&type=section&id=%E6%A5%AD%E5%8B%99%E5%8F%8A%E5%B8%82%E5%A0%B4%E5%B1%95%E6%9C%9B) The Group anticipates 3.0% global economic growth in 2025 and a 1.3 million b/d increase in crude oil demand, but expects lower market prices in H2 due to potentially higher supply growth, while setting production targets and planning US$750 million in capital expenditure - IMF forecasts **3.0% global economic growth** in 2025, with inflation declining to **4.2%**, but high risks remain from trade tensions, geopolitical uncertainties, and fiscal vulnerabilities[40](index=40&type=chunk) - OPEC projects global crude oil demand to grow by **1.3 million barrels per day** year-on-year in 2025, averaging **105.13 million barrels per day**, but supply growth may outpace demand, leading to a lower market price environment in H2[40](index=40&type=chunk) 2025 Production Targets | Metric | Target Range (boe) | | :--- | :--- | | Average Operated Daily Production | 178,900 – 204,200 | | Average Working Interest Daily Production | 104,200 – 120,600 | - Capital expenditure is projected to reach **US$750 million**, primarily for exploration, development, and engineering construction plans, with efficient capital expenditure management[40](index=40&type=chunk) - Pakistan's natural gas demand is expected to continue growing while domestic production declines, leading to LNG imports; the Group's natural gas sales in Pakistan are almost guaranteed to be received by state-owned customers[41](index=41&type=chunk) - Pakistan assets are planned to achieve an average working interest daily production of **29,500 to 35,500 boe** in 2025[41](index=41&type=chunk) - Middle East and North Africa assets possess **576.7 million boe** of working interest proved and probable reserves, with **97.0%** located in Iraq[42](index=42&type=chunk) - Average operated daily production in Iraq's B9 block is expected to reach **130,000 boe**, while Siba gas field is projected to maintain sustainable peak production[42](index=42&type=chunk) - For Egyptian assets, if the acquisition plan is successfully implemented, the local asset portfolio will **double**[42](index=42&type=chunk) - Iraq assets are planned to achieve an average working interest daily production of **65,100 to 73,000 boe** in 2025, and Egyptian assets **9,500 to 12,100 boe**[43](index=43&type=chunk) [Liquidity and Financial Resources](index=13&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) As of June 30, 2025, the Group maintained a strong financial position with bank and cash balances of approximately HK$1.994 billion, a gearing ratio of 9.7%, and a current ratio of 0.87x, while exploring capital structure optimization including corporate bond issuance Liquidity and Financial Resources Overview | Metric | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Bank and Cash Balances | 1,993,774 | 2,935,796 | | Gearing Ratio | 9.7% | 11.6% | | Current Ratio | 0.87x | 1.01x | | Total Borrowings | 332,495 | 233,775 | | Average Interest Rate on Total Borrowings | 8.80% | 8.61% | - The Group is exploring various opportunities to optimize its capital structure, including its debt portfolio, and plans to explore international debt capital market opportunities, including corporate bond issuance, within the next 12 months[48](index=48&type=chunk) [Significant Acquisitions and Disposals](index=14&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E4%BA%8B%E9%A0%85) On February 7, 2025, the Group agreed to acquire Apex International Energy Holdings I for approximately HK$1.17 billion, and on February 14, 2025, completed the acquisition of a 52% stake in Oriental Group Beijing Investment Holdings Co., Ltd. for approximately HK$148 million - The Group signed an agreement to conditionally acquire Apex International Energy Holdings I, an oil and gas exploration and production company in Egypt, for approximately **HK$1.17 billion** (approximately US$150 million) plus deferred consideration of approximately **HK$54.6 million** (approximately US$7 million)[49](index=49&type=chunk) - The Group acquired a **52%** equity stake in Oriental Group Beijing Investment Holdings Co., Ltd. (OGBIH) from an associated company for approximately **HK$148 million** (approximately US$19 million), with the transaction completed on May 12, 2025[49](index=49&type=chunk) [Capital Structure and Employees](index=14&type=section&id=%E8%B3%87%E6%9C%AC%E7%B5%90%E6%A7%8B%E8%88%87%E5%83%B1%E5%93%A1) As of June 30, 2025, the company's issued share capital (including treasury shares) totaled 26,040,504,786 shares, with 190,910,000 treasury shares, and the Group employed 2,345 full-time employees globally with compensation reviewed regularly - As of June 30, 2025, the number of issued shares (including treasury shares) of the company was **26,040,504,786**[51](index=51&type=chunk) - Treasury shares amounted to **190,910,000 shares**, intended for future employee share options, share award schemes, scrip dividends, acquisitions, fundraising, or resale[51](index=51&type=chunk) - As of June 30, 2025, the Group employed a total of **2,345 full-time employees** globally[52](index=52&type=chunk) - Employee compensation and benefits are regularly reviewed based on individual performance and market practices, including basic salary, year-end bonuses, medical, and provident fund contributions[52](index=52&type=chunk) [Risk Management and Corporate Governance](index=15&type=section&id=%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86%E8%88%87%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86) The Group maintained sufficient public float and utilized share option and performance share unit schemes for employee incentives, with changes in the Board of Directors including new appointments and re-designations, while adhering to corporate governance codes - The Group maintained a sufficient public float throughout the reporting period[55](index=55&type=chunk) - The share option scheme has a validity period of **ten years**, from May 27, 2016, to May 26, 2026; as of the reporting date, approximately **9 months** of validity remain[56](index=56&type=chunk) - The Performance Share Unit Scheme (PSU Scheme) was adopted on April 1, 2019, to drive shareholder value growth, achieve medium-to-long-term performance targets, and attract and retain key talent[59](index=59&type=chunk) - During the reporting period, there were no new grants under the PSU Scheme, **36,366,895 granted shares** vested, and **700,000 granted shares** were cancelled[60](index=60&type=chunk) - Mr. Song Yu was appointed as an Executive Director on June 4, 2025, and re-designated as Chairman on June 27, 2025[67](index=67&type=chunk) - Mr. Zhao Pingshun was appointed as an Executive Director, Authorized Representative, and a member of the Remuneration Committee and Nomination Committee[67](index=67&type=chunk) - Mr. Yao Zhisheng was re-designated from an Executive Director to a Non-executive Director[67](index=67&type=chunk) - The Group complied with the code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules, except that the position of Chief Executive Officer remained vacant, with duties performed by Executive Directors and management personnel[70](index=70&type=chunk) - The Audit Committee reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2025, and found them satisfactory[72](index=72&type=chunk) [Independent Review Report](index=23&type=section&id=%E7%8D%A8%E7%AB%8B%E5%AF%A9%E9%96%B1%E5%A0%B1%E5%91%8A) RSM Hong Kong reviewed United Energy Group Limited's interim financial information for H1 2025, finding no material non-compliance with HKAS 34, but noted a significant going concern uncertainty due to net current liabilities - The scope of review is substantially less than that of an audit conducted in accordance with Hong Kong Standards on Auditing, and therefore no audit opinion is expressed[78](index=78&type=chunk) - Based on the review, nothing has come to the reviewer's attention that causes them to believe the interim financial information is not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34[79](index=79&type=chunk) - As of June 30, 2025, the Group had net current liabilities of **HK$1,434,582,000**, which constitutes a material uncertainty related to going concern[80](index=80&type=chunk) [Condensed Consolidated Statement of Profit or Loss](index=25&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the Group's revenue was HK$8.088 billion, a 4.2% decrease year-on-year, with gross profit down 30.8% to HK$1.306 billion, and profit for the period decreasing 26.7% to HK$740 million Condensed Consolidated Statement of Profit or Loss Summary | Metric | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 8,087,956 | 8,439,807 | | Cost of Sales | (6,781,838) | (6,551,229) | | Gross Profit | 1,306,118 | 1,888,578 | | Operating Profit | 1,162,820 | 1,501,328 | | Profit Before Tax | 1,029,078 | 1,375,268 | | Income Tax Expense | (288,936) | (364,998) | | Profit for the Period | 740,142 | 1,010,270 | | Basic Earnings Per Share (HK cents) | 2.88 | 3.90 | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=26&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the Group's profit for the period was HK$740 million, with other comprehensive income totaling HK$59.5 million, primarily from foreign currency translation differences and reclassification of foreign currency translation reserve on disposal of an associate, resulting in a total comprehensive income of HK$799 million Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary | Metric | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Profit for the Period | 740,142 | 1,010,270 | | Exchange differences on translation of overseas operations | 28,669 | 1,176 | | Release of foreign currency translation reserve on deemed disposal of investment in an associate and reclassified to profit or loss | 30,834 | – | | Other comprehensive income for the period, net of tax | 59,503 | 1,176 | | Total comprehensive income for the period | 799,645 | 1,011,446 | [Condensed Consolidated Statement of Financial Position](index=27&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the Group's total assets were HK$25.035 billion, with total current assets of HK$9.374 billion and total current liabilities of HK$10.809 billion, resulting in net current liabilities of HK$1.435 billion, a decrease from net current assets of HK$64.35 million at year-end 2024 Condensed Consolidated Statement of Financial Position Summary | Metric | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Non-current Assets | 15,660,805 | 15,287,406 | | Total Current Assets | 9,374,037 | 10,832,994 | | Total Current Liabilities | 10,808,619 | 10,768,648 | | Net Current (Liabilities) / Assets | (1,434,582) | 64,346 | | Total Assets Less Current Liabilities | 14,226,223 | 15,351,752 | | Non-current Liabilities | 1,418,103 | 2,056,372 | | Net Assets | 12,808,120 | 13,295,380 | | Total Equity | 12,808,120 | 13,295,380 | [Condensed Consolidated Statement of Changes in Equity](index=29&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) For the six months ended June 30, 2025, the Group's total equity decreased from HK$13.295 billion on January 1, 2025, to HK$12.808 billion, primarily due to HK$1.292 billion in dividends paid, despite HK$799 million in total comprehensive income Condensed Consolidated Statement of Changes in Equity Summary | Metric | January 1, 2025 (HK$ thousand) | June 30, 2025 (HK$ thousand) | | :--- | :--- | :--- | | Total Equity | 13,295,380 | 12,808,120 | | Total comprehensive income for the period | – | 799,645 | | Dividends paid | – | (1,292,480) | | Equity-settled share-based payments under Performance Share Unit Scheme | – | 5,575 | | Shares vested under Performance Share Unit Scheme | – | – | | Equity attributable to owners of the Company | 13,289,971 | 12,802,716 | [Condensed Consolidated Statement of Cash Flows](index=30&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the six months ended June 30, 2025, net cash generated from operating activities was HK$2.74 billion, a 36.9% decrease year-on-year, with net cash outflows from investing and financing activities of HK$2.123 billion and HK$1.566 billion respectively, resulting in a HK$949 million decrease in cash and cash equivalents Condensed Consolidated Statement of Cash Flows Summary | Metric | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Net cash generated from operating activities | 2,739,813 | 4,343,781 | | Net cash used in investing activities | (2,122,961) | (2,920,852) | | Net cash used in financing activities | (1,565,619) | (353,267) | | Net (decrease) / increase in cash and cash equivalents | (948,767) | 1,069,662 | | Cash and cash equivalents at end of period | 1,993,774 | 4,395,540 | - Dividends paid amounted to **HK$1,292,480,000**, and loan repayments were **HK$186,420,000**[87](index=87&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=31&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section provides detailed notes to the condensed consolidated financial statements, covering accounting policies, significant judgments, and disaggregated financial information [Going Concern Basis](index=31&type=section&id=%E6%8C%81%E7%BA%8C%E7%B6%93%E7%87%9F%E5%9F%BA%E6%BA%96) As of June 30, 2025, the Group's net current liabilities of approximately HK$1.435 billion indicate a material uncertainty regarding its ability to continue as a going concern, though the Board anticipates sufficient working capital through financing, positive cash flow, and cost control - As of June 30, 2025, the Group had net current liabilities of approximately **HK$1,434,582,000**, indicating a material uncertainty that may cast significant doubt on the Group's ability to continue as a going concern[89](index=89&type=chunk) - The Board believes the Group will have sufficient working capital for the foreseeable future, planning to negotiate additional bank financing, expecting positive cash flow from future operations, and strengthening cost control[89](index=89&type=chunk)[90](index=90&type=chunk) [Adoption of New and Revised Hong Kong Financial Reporting Standards](index=32&type=section&id=%E6%8E%A1%E7%B4%8D%E6%96%B0%E8%A8%82%E5%8F%8A%E7%B6%93%E4%BF%AE%E8%A8%82%E4%B9%8B%E9%A6%99%E6%B8%AF%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%BA%96%E5%89%87) The Group first applied amendments to HKAS 21 "Lack of Exchangeability" from January 1, 2025, without changing accounting policies or making retrospective adjustments, and has not early adopted any other new or revised standards - The Group first applied amendments to Hong Kong Accounting Standard 21 "Lack of Exchangeability" from January 1, 2025, but did not change accounting policies or make retrospective adjustments as a result[93](index=93&type=chunk) - The Group has not early adopted any new or revised standards that are effective for future periods in preparing the condensed interim financial statements[94](index=94&type=chunk) [Segment Information](index=33&type=section&id=%E5%88%86%E9%A1%9E%E8%B3%87%E6%96%99) The Group identified three reportable segments: Exploration and Production, Trading, and Clean Energy Business, with H1 2025 revenues of HK$4.319 billion, HK$3.722 billion, and HK$47.13 million respectively, and corresponding segment profits/losses - The Group identified three reportable segments: Exploration and Production (oil and gas exploration and production), Trading (energy product trading), and Clean Energy Business (wind power generation)[100](index=100&type=chunk)[101](index=101&type=chunk) H1 2025 Segment Revenue and Profit | Segment | Revenue from External Customers (HK$ thousand) | Segment Profit / (Loss) (HK$ thousand) | | :--- | :--- | :--- | | Exploration and Production | 4,318,738 | 403,550 | | Trading | 3,722,090 | (8,769) | | Clean Energy Business | 47,128 | 10,619 | | **Total** | **8,087,956** | **405,400** | H1 2025 Revenue by Geographical Market | Major Geographical Market | Sales and Production from Crude Oil, Condensate, Natural Gas and LPG (HK$ thousand) | Trading of Energy Products (HK$ thousand) | Sales of Electricity Generated from Wind Power (HK$ thousand) | Total (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Pakistan | 991,879 | 542,675 | 47,128 | 1,581,682 | | Singapore | 293,988 | 2,566,668 | – | 2,860,656 | | Egypt | 472,278 | – | – | 472,278 | | Iraq | 2,560,593 | – | – | 2,560,593 | | UAE | – | 612,747 | – | 612,747 | | **Revenue from External Customers** | **4,318,738** | **3,722,090** | **47,128** | **8,087,956** | [Finance Costs](index=37&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) For the six months ended June 30, 2025, the Group's total finance costs were HK$145 million, with HK$3.14 million capitalized, resulting in net finance costs of HK$142 million, a 13.3% decrease year-on-year, primarily driven by customer deposit interest and bank loan interest Finance Costs Components | Item | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Interest on bank loans | 12,355 | 78,526 | | Interest expense on lease liabilities | 7,960 | 9,769 | | Interest on customer deposits | 102,823 | 64,568 | | Provision – unwinding of discount | 20,914 | 13,231 | | Others | 745 | – | | **Total borrowing costs** | **144,797** | **166,094** | | Amount capitalized | (3,142) | (2,629) | | **Net finance costs** | **141,655** | **163,465** | - In 2025, the weighted average capitalization rate for borrowing costs was generally **7.5%** (2024: 8.1%)[108](index=108&type=chunk) [Income Tax Expense](index=37&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, the Group's income tax expense was HK$289 million, comprising HK$354 million in current tax and a HK$64.94 million deferred tax credit, resulting in an effective tax rate of approximately 28.1%, up 1.6 percentage points from the prior year Income Tax Expense Components | Item | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Current tax – overseas | 353,872 | 573,721 | | Deferred tax | (64,936) | (208,723) | | **Total income tax expense** | **288,936** | **364,998** | - During the reporting period, the Group's effective tax rate was approximately **28.1%**, an increase of **1.6 percentage points** compared to approximately 26.5% in the prior period[31](index=31&type=chunk) - Income tax rates in Egypt, Iraq, Pakistan, Singapore, and China were **22.5%**, **35%**, **40% to 50%**, **17%**, and **25%** respectively[109](index=109&type=chunk) [Profit for the Period](index=38&type=section&id=%E6%9C%AC%E6%9C%9F%E9%96%93%E6%BA%A2%E5%88%A9) For the six months ended June 30, 2025, the Group's profit for the period was HK$740 million, after accounting for significant expenses such as depreciation of HK$2.286 billion and amortization of intangible assets of HK$99.38 million, and gains from bargain purchase of a subsidiary and deemed disposal of an associate Profit for the Period Adjustments | Item | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Acquisition-related costs | 1,798 | – | | Impairment loss on property, plant and equipment | 24,020 | – | | Write-off of property, plant and equipment | 11,799 | – | | Gain on deemed disposal of investment in an associate | (78,912) | – | | Bargain purchase gain on acquisition of a subsidiary | (114,381) | – | | Amortization of intangible assets | 99,380 | 166,926 | | Depreciation | 2,285,989 | 2,409,060 | | Depreciation of right-of-use assets | 44,228 | 40,316 | | Directors' emoluments | 9,765 | 9,919 | | Fair value gain on financial assets at fair value through profit or loss | (814) | (226) | | Fair value gain on derivative financial instruments | (216) | – | | Realized gain on derivative financial instruments | (16) | – | [Earnings Per Share](index=38&type=section&id=%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) For the six months ended June 30, 2025, basic earnings per share attributable to owners of the Company decreased to 2.88 HK cents from 3.90 HK cents in the prior year, with diluted earnings per share being the same due to no potential dilutive ordinary shares Earnings Per Share Comparison | Metric | H1 2025 (HK cents) | H1 2024 (HK cents) | | :--- | :--- | :--- | | Basic Earnings Per Share | 2.88 | 3.90 | | Diluted Earnings Per Share | N/A | N/A | - Basic earnings per share attributable to owners of the Company is calculated based on the profit attributable to owners of the Company of approximately **HK$740,147,000** for the period and the weighted average number of ordinary shares outstanding of **25,682,474,305 shares** during the period[112](index=112&type=chunk) - For the six months ended June 30, 2025, and 2024, there were no potential dilutive ordinary shares, thus diluted earnings per share were the same as basic earnings per share[113](index=113&type=chunk) [Dividends](index=38&type=section&id=%E8%82%A1%E6%81%AF) For the six months ended June 30, 2025, the Group paid a final dividend of 5 HK cents per ordinary share for 2024, totaling HK$1.292 billion, and the Board does not recommend any interim dividend for the current reporting period Dividends Paid | Item | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Final dividend for 2024 of 5 HK cents per ordinary share | 1,292,480 | – | - The Directors of the Company do not recommend the payment of any interim dividend for the six months ended June 30, 2025[114](index=114&type=chunk) [Property, Plant and Equipment](index=39&type=section&id=%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) For the six months ended June 30, 2025, the Group acquired approximately HK$2.244 billion in property, plant and equipment, excluding HK$419.3 million acquired through business combinations, indicating continued investment in fixed assets - For the six months ended June 30, 2025, the Group acquired approximately **HK$2,244,137,000** (2024: HK$2,934,258,000) of property, plant and equipment[115](index=115&type=chunk) - This excludes property, plant and equipment of approximately **HK$419,307,000** acquired through business combinations[115](index=115&type=chunk) [Trade and Other Receivables](index=39&type=section&id=%E8%B2%A1%E5%8B%99%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E8%B3%A6%E6%AC%BE) As of June 30, 2025, the Group's total trade and other receivables decreased to HK$7.092 billion from HK$7.604 billion at year-end 2024, with trade receivables at HK$5.729 billion, including HK$1.329 billion over 90 days, and a HK$196 million provision for natural gas price adjustments Trade and Other Receivables Comparison | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade receivables | 5,729,194 | 6,320,638 | | Provision for trade receivables | (102,348) | (102,348) | | Provision for price adjustment | (195,837) | (196,100) | | Other receivables (net of provision) | 1,660,948 | 1,581,743 | | **Total** | **7,091,957** | **7,603,933** | Trade Receivables Ageing Analysis (June 30, 2025) | Ageing | Amount (HK$ thousand) | | :--- | :--- | | 0 to 30 days | 2,829,963 | | 31 to 60 days | 265,690 | | 61 to 90 days | 1,304,342 | | Over 90 days | 1,329,199 | - The Group has made a provision of approximately **HK$195,837,000** for potential price adjustments under Pakistan's natural gas sales agreements[120](index=120&type=chunk) - Other receivables primarily include amounts due from joint operators of **HK$759 million**, deposits and prepayments of **HK$459 million**, and sales tax receivables of **HK$213 million**[121](index=121&type=chunk) [Trade and Other Payables](index=41&type=section&id=%E8%B2%A1%E5%8B%99%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E8%B3%A6%E6%AC%BE) As of June 30, 2025, the Group's total trade and other payables decreased to HK$8.973 billion from HK$9.774 billion at year-end 2024, with current liabilities at HK$8.611 billion and non-current liabilities at HK$362 million, including accrued operating and capital expenditures, customer deposits, and infrastructure fund provisions Trade and Other Payables Comparison | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade payables | 1,569,633 | 2,139,032 | | Other payables | 7,402,924 | 7,634,687 | | **Total** | **8,972,557** | **9,773,719** | | Current liabilities | 8,610,968 | 8,794,443 | | Non-current liabilities | 361,589 | 979,276 | Trade Payables Ageing Analysis (June 30, 2025) | Ageing | Amount (HK$ thousand) | | :--- | :--- | | 0 to 30 days | 534,410 | | 31 to 60 days | 72,217 | | 61 to 90 days | 24,993 | | Over 90 days | 938,013 | - Other payables primarily include accrued operating and capital expenditures of **HK$2,716,949 thousand**, customer deposits of **HK$1,872,000 thousand**, and infrastructure fund provisions of **HK$1,076,620 thousand**[124](index=124&type=chunk) - The Group entered into an agreement with a customer for secured crude oil prepayment financing of up to approximately **HK$3.12 billion** (approximately US$400 million), with an annual interest rate of 3-month SOFR plus **5.25%**[127](index=127&type=chunk) [Borrowings](index=42&type=section&id=%E5%80%9F%E6%AC%BE) As of June 30, 2025, the Group's total secured bank loans increased to HK$332 million from HK$234 million at year-end 2024, with current liabilities at HK$202 million and non-current liabilities at HK$131 million Borrowings Comparison | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Bank loans, secured | 332,495 | 233,775 | | Current liabilities | 201,649 | 155,825 | | Non-current liabilities | 130,846 | 77,950 | [Provisions](index=42&type=section&id=%E6%92%A5%E5%82%99) As of June 30, 2025, the Group's total provisions amounted to HK$706 million, primarily comprising HK$500 thousand for dismantling costs of leased property renovations and HK$706 million for decommissioning costs, which are reviewed annually based on environmental obligations from oil and gas activities Provisions Components | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Dismantling costs for leased property renovations | 500 | 500 | | Decommissioning costs | 705,859 | 733,211 | | **Total** | **706,359** | **733,711** | | Current liabilities | 33,959 | 33,959 | | Non-current liabilities | 672,400 | 699,752 | - Decommissioning cost liabilities are determined by management by discounting expected future expenditures to their present net value using a pre-tax rate that reflects the specific risks associated with the obligation[128](index=128&type=chunk) [Share Capital](index=43&type=section&id=%E8%82%A1%E6%9C%AC) As of June 30, 2025, the company's authorized share capital was HK$600 million, with issued and fully paid share capital of HK$260.4 million, consisting of 26,040,504,786 ordinary shares of HK$0.01 each, including 190,910,000 treasury shares Share Capital Structure | Item | June 30, 2025 (HK$ thousand) | | :--- | :--- | | Authorized share capital (60,000,000,000 ordinary shares of HK$0.01 each) | 600,000 | | Issued and fully paid share capital (26,040,504,786 ordinary shares of HK$0.01 each) | 260,405 | Number of Shares | Item | June 30, 2025 (thousand shares) | | :--- | :--- | | Issued shares (net of treasury shares) | 25,849,594 | | Treasury shares | 190,910 | | Issued shares | 26,040,504 | [Performance Share Unit Scheme](index=44&type=section&id=%E7%B8%BE%E6%95%88%E8%82%A1%E6%AC%8A%E5%96%AE%E4%BD%8D%E8%A8%88%E5%8A%83) The Performance Share Unit Scheme (PSU Scheme), adopted on April 1, 2019, aims to incentivize employees; in H1 2025, no new shares were granted, 36,366,895 granted shares vested, 700,000 were cancelled, and the Group recognized an expense of approximately HK$5.58 million - The PSU Scheme aims to incentivize the Group's employees to drive shareholder value growth, achieve medium-to-long-term performance targets, and attract and retain key talent[131](index=131&type=chunk) - For the six months ended June 30, 2025, the trustee did not purchase any shares from the market, and no new shares were granted[132](index=132&type=chunk) Performance Share Unit Scheme Award Share Movements (H1 2025) | Grant Date | Outstanding at Jan 1 (shares) | Vested during period (shares) | Forfeited during period (shares) | Outstanding at June 30 (shares) | | :--- | :--- | :--- | :--- | :--- | | May 17, 2022 (Tranche 1) | 21,292,097 | (21,106,108) | (185,989) | – | | May 17, 2022 (Tranche 2) | 14,224,798 | (13,960,787) | (264,011) | – | | June 27, 2023 | 20,150,000 | (1,300,000) | (250,000) | 18,600,000 | | **Total** | **55,666,895** | **(36,366,895)** | **(700,000)** | **18,600,000** | - For the six months ended June 30, 2025, the Group recognized an expense of approximately **HK$5,575,000** for the PSU Scheme[133](index=133&type=chunk) [Capital Commitments](index=46&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) As of June 30, 2025, the Group's total contracted but unprovided capital commitments significantly increased to HK$3.605 billion from HK$1.572 billion at year-end 2024, primarily for the acquisition of property, plant and equipment and a subsidiary Capital Commitments Comparison | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Acquisition of property, plant and equipment | 1,782,076 | 977,177 | | Acquisition of a subsidiary | 1,224,600 | – | | Contributions to subsidiaries | 575,912 | 573,084 | | Contributions to associates | 21,931 | 21,597 | | **Total** | **3,604,519** | **1,571,858** | [Contingent Liabilities](index=46&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) The Group has several contingent liabilities, including unlimited corporate guarantees for UEPL, potential retrospective windfall profit levies from the Pakistan government (approx. HK$192 million), tax directives from Pakistan tax authorities (approx. HK$1.135 billion), and bank guarantees for the Director General Petroleum Concessions (approx. HK$53.59 million) - The Company provides several unlimited corporate guarantees for United Energy Pakistan Limited (UEPL) to fulfill its concession agreement obligations[136](index=136&type=chunk) - Further provision of approximately **HK$191,969,000** would be required if the Pakistan government retrospectively imposes a windfall profit levy[136](index=136&type=chunk) - The Pakistan tax authorities issued various tax directives, with cumulative potential tax amounts of approximately **HK$1,135,414,000**[136](index=136&type=chunk) - Certain subsidiaries of the Group issued bank guarantees in favor of the Director General Petroleum Concessions, amounting to approximately **HK$53,593,000**[136](index=136&type=chunk) [Acquisition of a Subsidiary](index=47&type=section&id=%E6%94%B6%E8%B3%BC%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8) On May 12, 2025, the Group completed the acquisition of a 52% equity stake in Oriental Group Beijing Investment Holdings Co., Ltd. (OGBIH), making it a wholly-owned subsidiary, aiming to expand its clean energy business and recognizing gains from deemed disposal of an associate and a bargain purchase - The Group completed the acquisition of a **52%** equity stake in Oriental Group Beijing Investment Holdings Co., Ltd. (OGBIH) and its subsidiaries on May 12, 2025, making the OGBIH Group a wholly-owned subsidiary of the Group[137](index=137&type=chunk) - This acquisition aims to expand the clean energy business segment[137](index=137&type=chunk) - The Group remeasured its existing interest in the OGBIH Group at fair value on the acquisition date and recognized a gain of approximately **HK$78,912,000**[137](index=137&type=chunk) - The Group recognized a bargain purchase gain of **HK$114,381,000** in the business combination, attributable to an increase in the fair value of net assets acquired[139](index=139&type=chunk) - From the acquisition date to the end of the reporting period, the OGBIH Group contributed revenue of approximately **HK$47,128,000** and profit of approximately **HK$28,036,000**[140](index=140&type=chunk) [Related Party Transactions](index=49&type=section&id=%E9%97%9C%E9%80%A3%E4%BA%BA%E5%A3%AB%E4%BA%A4%E6%98%93) The Group engaged in various related party transactions, including the acquisition of OGBIH from Oriental Group Industrial Development Co., Ltd., bank financing guarantees provided by Oriental Group for OGBIH, and lease and property management services with Beijing Dacheng Hotel and Oriental An Yi (Beijing) Property Management Co., Ltd - The acquisition of a **52%** equity stake in Oriental Group Beijing Investment Holdings Co., Ltd. (OGBIH) was a related party transaction[141](index=141&type=chunk) - Oriental Group and Oriental Group Industrial Development provided corporate guarantees for bank financing of approximately **HK$715 million** granted to OGBIH, a former associate of the Group[144](index=144&type=chunk) - Oriental Group waived service fees of approximately **HK$999,000** payable by OGBIH[144](index=144&type=chunk) - For the six months ended June 30, 2025, the Group paid lease payments of approximately **HK$12,701,000** to Beijing Dacheng Hotel for office premises[144](index=144&type=chunk) - Oriental An Yi charged fees of approximately **HK$1,723,000** for property management services, electricity supply, and leasing of the Group's office premises[144](index=144&type=chunk) [Supplementary Information on Oil and Gas Exploration, Development and Production Activities](index=51&type=section&id=%E6%9C%89%E9%97%9C%E6%B2%B9%E6%B0%A3%E5%8B%98%E6%8E%A2%E3%80%81%E9%96%8B%E7%99%BC%E5%8F%8A%E7%94%A2%E7%94%A2%E6%B4%BB%E5%8B%95%E7%9A%84%E8%A3%9C%E5%85%85%E8%B3%87%E6%96%99) This section provides supplementary details on the Group's oil and gas exploration, development, and production activities, including drilling of 8 wells in Pakistan and 16 wells in MENA assets, and total costs of approximately HK$2.954 billion incurred in H1 2025 Key Exploration, Development and Production Activities | Activity Type | Pakistan Assets | Middle East and North Africa Assets | | :--- | :--- | :--- | | Exploration and appraisal wells | 5 wells | 3 wells | | Development wells | 3 wells | 13 wells | | Workover operations | 7 operations | 7 operations | | Average working interest daily production | 31,571 boe | 80,191 boe | Exploration, Development and Production Activity Costs | Cost Type | Pakistan Assets (HK$ thousand) | Middle East and North Africa Assets (HK$ thousand) | Total (HK$ thousand) | | :--- | :--- | :--- | :--- | | Exploration costs | 173,211 | 119,766 | 292,977 | | Development costs | 209,034 | 1,744,674 | 1,953,708 | | Production costs | 266,969 | 440,628 | 707,597 | | **Total** | **649,214** | **2,305,068** | **2,954,282** | [Glossary and Definitions](index=52&type=section&id=%E8%A9%9E%E5%BD%99%E5%8F%8A%E9%87%8B%E7%BE%A9) This section provides definitions for general and technical terms used throughout the report to ensure clear understanding for readers

Contents 目錄 | 2 | Financial Figures | 財務數據 | | --- | --- | --- | | 3 | Definitions | 釋義 | | 8 | Corporate Information | 企業資料 | | 12 | The Group | 集團概況 | | 14 | Shareholder Information | 股東資料 | | 17 | Management Discussion and Analysis | 管理層討論與分析 | | 58 | Other Information | 其他資料 | | 84 | Report on Review of Interim Financial Report | 中期財務報告的審閱報告 | | 86 | Consolidated Statement of Profit or Loss | 綜合損益表 | | 87 | Consolidated Statement of Comprehensive Income | 綜合全面收益表 | | 88 | Consolidated Statement of Finan ...

（股份代號：2259） 上市規則第13.48(1)條項下有關2025年中期報告的豁免 本公告乃由紫金黃金國際有限公司（「本公司」）根據香港聯合交易所有限公司（「聯交 所」）證券上市規則（「上市規則」）第13.48(1)條的附註而作出。 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何 部分內容所產生或因依賴該等內容而引致的任何損失承擔任何責任。 Zijin Gold International Company Limited 紫 金 黃 金 國 際 有 限 公 司 （於香港註冊成立的有限公司） 股東及本公司潛在投資者務請垂注，截至2025年6月30日止6個月的財務業績已載入 招 股 章 程，而 招 股 章 程 可 於 聯 交 所 網 站 www.hkexnews.hk 及 本 公 司 網 站 www.zijingoldintl.com閱覽。 承董事會命 茲提述本公司日期為2025年9月19日的招股章程（「招股章程」）中「財務資料 — 上市 規則規定的披露」分節。除另有界定者外，本公告所用詞彙與招股章程所界定者具 ...

Revenue Performance - For the first half of 2025, the distribution business generated revenue of HKD 20.7 million, a significant increase of 567.7% compared to HKD 3.1 million in the first half of 2024[12]. - Overall revenue for the first half of 2025 was HKD 152.5 million, down 30.3% from HKD 218.8 million in the first half of 2024, primarily due to reduced demand for certain agricultural products[13]. - The supply chain business faced challenges, with revenue decreasing by 38.9% to HKD 131.9 million from HKD 215.7 million in the same period last year[12]. - Distribution business segment revenue for the six months ended June 30, 2025, was HKD 20,661,000, compared to HKD 3,094,000 for the same period in 2024, showing a significant increase[73]. - Supply chain business segment revenue for the six months ended June 30, 2025, was HKD 131,885,000, down from HKD 215,716,000 in 2024, indicating a decline of approximately 39%[73]. - Revenue from customers in China (including Hong Kong and Macau) for the six months ended June 30, 2025, was HKD 152,256,000, down from HKD 161,229,000 in 2024, reflecting a decrease of approximately 5%[75]. Profitability and Loss - Gross profit for the first half of 2025 decreased by 17.7% to HKD 5.1 million from HKD 6.2 million in the first half of 2024, with a gross margin of 3.4% compared to 2.8% in the previous year[15]. - The group reported a loss of HKD 2.7 million for the first half of 2025, compared to a loss of HKD 0.3 million in the same period of 2024, mainly due to decreased demand for certain agricultural products[21]. - The group reported a pre-tax loss of HKD 1,425,000 for the six months ended June 30, 2025, compared to a loss of HKD 313,000 in 2024[73]. - The group reported a net comprehensive loss attributable to equity holders of the parent of HKD (1,037,000) compared to a loss of HKD (974,000) for the same period in 2024, reflecting an increase in loss of approximately 6.5%[56]. - The group reported a loss attributable to equity holders of HKD 2,655,000 for the first half of 2025, compared to a loss of HKD 313,000 in the first half of 2024[55]. Expenses and Costs - The cost of sales for the first half of 2025 decreased by 30.7% to HKD 147.4 million, aligning with the revenue decline[14]. - Sales and distribution expenses rose by 80.0% to HKD 1.8 million from HKD 1.0 million in the first half of 2024, mainly due to increased freight costs associated with coal sales activities in the Chinese market[17]. - Administrative expenses increased by 1.9% to HKD 5.3 million from HKD 5.2 million in the first half of 2024, primarily due to higher legal and professional fees[18]. - The financing cost for the first half of 2025 increased by 50.0% to HKD 1.8 million from HKD 1.2 million in the first half of 2024, attributed to higher loan interest rates[20]. Assets and Liabilities - As of June 30, 2025, trade receivables decreased by 37.0% to HKD 104.7 million from HKD 141.7 million as of December 31, 2024, due to reduced revenue from the supply chain business[23]. - The group’s current assets net value as of June 30, 2025, was HKD 122.4 million, with a current ratio of 1.6 compared to 1.5 as of December 31, 2024[25]. - The total liabilities decreased to HKD 215,904,000 as of June 30, 2025, down from HKD 250,607,000 at the end of 2024, representing a reduction of approximately 13.8%[57]. - The company’s net asset value as of June 30, 2025, was HKD 163,080,000, slightly down from HKD 164,117,000 at the end of 2024, indicating a decrease of about 0.6%[57]. - Trade payables as of June 30, 2025, were HKD 52,355,000, down 5.1% from HKD 54,455,000 as of December 31, 2024[94]. Investments and Future Plans - The company signed distribution contracts totaling RMB 17 million in the first half of 2025, with plans to sign an additional RMB 20 million in the second half[10]. - The group plans to expand its distribution business in Southwest China, leveraging resources from Yunnan Energy Investment Group to increase sales contracts in the second half of 2025 compared to the same period last year[37]. - The group aims to establish long-term supply agreements in the coal and traditional Chinese medicine sectors to ensure stable large-scale trade[38]. - The group is actively exploring green energy project investments in Yunnan and Southeast Asia, focusing on renewable energy sectors such as photovoltaics and hydropower[40]. - The group plans to enhance its supply chain business in South Asia and Southeast Asia, leveraging Yunnan Energy Investment Group's resources to develop energy infrastructure projects[41]. Corporate Governance and Compliance - The board did not recommend or declare any interim dividend for the first half of 2025[34]. - The audit committee reviewed the group's unaudited interim results for the first half of 2025 and found no objections to the accounting principles adopted[48]. - The company has complied with the applicable provisions of the Hong Kong Corporate Governance Code during the first half of 2025[50]. - The group did not declare any interim dividend for the six months ended June 30, 2025, consistent with the previous year[86]. Employee and Management Information - Employee benefits expenditure for the first half of 2025 was approximately HKD 2.4 million, with a total of 25 employees as of June 30, 2025[36]. - Total remuneration for key management personnel was HKD 553,000 for the six months ended June 30, 2025, a decrease of 5.9% from HKD 588,000 in 2024[109]. - Short-term employee benefits for key management personnel were HKD 544,000 for the six months ended June 30, 2025, down from HKD 579,000 in 2024, reflecting a decrease of 6.0%[109]. - Retirement benefits for key management personnel remained stable at HKD 9,000 for both periods[109].

Economic Overview - In the first half of 2025, China's GDP grew by 5.4% year-on-year, indicating resilience in economic recovery[12]. - Market conditions and investor sentiment in the PRC real estate industry showed no significant improvement in the first half of 2025[19]. - The real estate market in China remains at a low level, with high inventory levels and a focus on destocking[12]. Financial Performance - The Group's revenue for the first half of 2025 was approximately HK$57,377,000, representing a significant drop of approximately 87.4% compared to HK$455,016,000 in the same period last year[30]. - The gross loss for the Group was approximately HK$7,169,000, a decrease of approximately 93.8% from a gross loss of approximately HK$114,777,000 in the previous year, with a gross loss margin of approximately 12.5%[31]. - The Group recorded a net loss of approximately HK$241,770,000 for the period, compared to a net loss of approximately HK$1,569,918,000 for the six months ended June 30, 2024[40][44]. Cost Management - Selling and distribution expenses decreased by approximately 47.9% to approximately HK$2,233,000 compared to HK$4,288,000 in the same period last year[32]. - Administrative expenses decreased by approximately 87.7% to approximately HK$3,420,000 from approximately HK$27,750,000 in the previous year[32]. - The Group has undertaken various cost control measures to minimize cash outflow of non-essential items[137]. Debt and Liquidity Management - Addressing debt issues is a top priority for the Group, with active communication with banks and creditors to expedite debt repayment or refinancing[14]. - The Group is focusing on liquidity management, optimizing fund allocations, and strengthening capital monitoring to alleviate repayment pressure[21]. - The Group expanded its financing channels to maintain a healthy financial position amid tight financing conditions[18]. Project Management - Timely delivery of existing land development projects is crucial, with measures implemented to strengthen project management and execution capabilities[17]. - The Group continues to invest in the strategy of "guaranteeing funds, delivery, and operation" to ensure stable business growth[18]. - The residential properties of Phase IV of the Shantou Chaoyang Project were completed in March 2025, with sales permits issued for Blocks 9 to 11 in May 2025[24]. Investment Properties - A fair value loss of investment properties amounting to approximately HK$56,413,000 was recognized as of June 30, 2025, compared to approximately HK$196,779,000 in the same period last year[33]. - The fair value loss on investment properties for the period was approximately HK$56,413,000, compared to approximately HK$196,779,000 for the six months ended June 30, 2024[36][40]. - The Group's investment properties are valued using a direct comparison approach, with a fair value increase of approximately HK$697,396,000 projected as of June 30, 2025, based on a price range of HK$8,677 to HK$27,045 per square meter[158]. Share Capital and Dividends - The Company does not recommend any interim dividend for the six months ended June 30, 2025, consistent with the previous year[100]. - As of June 30, 2025, the total issued share capital of the Company was 109,202,495 Shares[99]. - Mr. John Edward Hunt holds 29,737,837 Shares, representing 27.23% of the total issued shares[93]. Corporate Governance - The Company has maintained compliance with the Corporate Governance Code throughout the period, with no deviations reported for the six months ended June 30, 2025[69][74]. - The Board has overall responsibility for maintaining an effective internal control system, with management tasked to implement and review these controls annually[70][75]. - The Company emphasizes high standards of corporate governance and is committed to ongoing reviews and enhancements[68][73]. Employment and Human Resources - The Group had 53 full-time employees as of June 30, 2025, an increase from 46 employees as of December 31, 2024[60]. - The Group's remuneration policies are reviewed annually based on market practices and individual performance, with no significant funds set aside for retirement benefits[64]. Legal and Contingent Liabilities - The Group's management is actively negotiating a disposal plan with the Jieyang Creditor, who is unlikely to take further action in the short term[57]. - As of June 30, 2025, the Group had no material contingent liabilities[62]. - The Directors believe that adequate provisions have been made for overdue borrowings and outstanding construction payables as of June 30, 2025[59].

Financial Performance - The total revenue for the six months ended June 30, 2025, was approximately RMB120.1 million, representing an increase of approximately 9.3% from RMB109.8 million for the same period last year [21]. - The Group reported an operating loss of approximately RMB2.3 million for the six months ended June 30, 2025, compared to an operating profit of approximately RMB1.7 million for the same period last year [21]. - The net loss for the Group was approximately RMB2.8 million for the six months ended June 30, 2025, compared to a net profit of approximately RMB1.2 million for the same period last year [22]. - For the six months ended June 30, 2025, the Group's revenue from operations was approximately RMB120.1 million, reflecting a 9.3% increase from RMB109.8 million in the same period last year [42]. - Online sales revenue reached approximately RMB67.6 million, marking a significant increase of 21.5% from RMB55.6 million year-over-year [42]. - The core brand, Bawang, generated approximately RMB110.7 million in revenue, accounting for about 92.2% of the Group's total revenue, with a year-over-year increase of 6.1% [43]. - The natural-based shampoo series, Litao, achieved revenue of approximately RMB 7.7 million, a significant increase of approximately 136.9% compared to the previous year [48]. - Gross profit amounted to approximately RMB 52.8 million, reflecting a 2.7% increase from RMB 51.4 million, while the gross profit margin decreased from approximately 46.8% to 44.0% [54][58]. - Selling and distribution costs rose to approximately RMB 41.2 million, an increase of about 10.3% from RMB 37.4 million, with the percentage of revenue slightly increasing from approximately 34.0% to 34.3% [55][59]. - Administrative expenses increased to approximately RMB 14.7 million, up by about 12.6% from RMB 13.0 million, primarily due to higher salaries and vehicle expenses [56][60]. - The loss attributable to owners of the Company for the period was RMB 2,770,000, compared to a profit of RMB 1,210,000 in the prior year [200]. - Basic and diluted loss per share for the period was RMB (0.09) cents, compared to earnings of RMB 0.04 cents per share in the same period of 2024 [200]. Marketing and Sales Strategies - The Group promoted its Bawang branded products through high-quality offerings and a multi-channel new media communication strategy, enhancing brand awareness and sales [23]. - The introduction of new hi-tech equipment and self-developed patented technology aimed to strengthen the Group's competitive market positioning through technological innovation [25]. - The Group launched innovative anti-hair loss shampoo with aesthetically appealing packaging targeting young consumers, effectively stimulating their purchasing interest [25]. - The "Thousand Townships for Ten Thousand Points-of-Sales" market development project commenced in March 2024, enhancing sales revenue by expediting product distribution across Hainan Island and expanding nationwide coverage [28]. - New products launched in the first half of 2025 include the Bawang toothpaste series, Litao fragrance body wash series, and multi-effect nourishing series, which are being actively promoted in both traditional and exclusive channels [28]. - Collaborations with top influencers on the Douyin platform have driven significant period-on-period growth in live streaming sales and enhanced brand recognition [30]. - Increased investment in marketing anti-hair loss and nourishing shampoos at the official Tmall flagship store has resulted in same-store sales growth across multiple online channels [30]. - The Royal Wind brand focuses on integrating traditional retail and e-commerce operations to attract young consumer groups and drive sales growth [27]. - A multi-brand matrix has been established with innovative product series launched under the Litao and Royal Wind brands, addressing diverse consumer needs [27]. - The Group aims to enhance revenue through strategies such as strengthening patent advantages and focusing on core anti-hair loss efficacy in new product development [87]. - The Group plans to upgrade product packaging creatively to attract young consumers and stimulate purchase intent [87]. - Active cross-sector collaborations will be pursued to promote co-branded products and broaden brand communication [87]. - The Group intends to explore overseas markets, particularly in Southeast Asia, by conducting regional market research and leveraging local KOLs for marketing [92]. Operational Developments - The Group continued to operate under a value-chain-oriented business model, effectively controlling sales and operating costs at sustainable levels [23]. - From May 2025, high-quality physical stores are being established nationwide, enhancing brand exposure and boosting retail sales through premium visual displays [30]. - The Group has developed cross-sector live broadcast platforms to increase brand exposure and consumer engagement, establishing a multi-channel consumer feedback mechanism for product optimization [27]. - Participation in the Shanghai Beauty Expo in May 2025 included new product launches and promotional activities, effectively increasing brand exposure and attracting distributors and retailers [27]. - The Group plans to accelerate the distribution of new products nationwide, including the Bawang nourishing series and oral care series, as part of the "Thousand Townships for Tens Thousand Points-of-Sales" initiative [93]. - The Group aims to enhance sales through promotional activities in shopping malls and increase the frequency of weekend promotions during key sales periods [93]. - The Group will strengthen sales support services for key distributors and optimize product displays to stabilize sales revenue [93]. - The Group intends to increase investment in research and development to ensure product quality and maintain competitive advantage [94]. - The Group will focus on innovation in new anti-hair fall hair care products and expand product development in other categories to drive sales growth [96]. - The Group plans to deepen existing retail channel operations and optimize promotion efficiency to improve return on investment [96]. - The Group will implement a flexible supply chain approach to optimize production processes and reduce operating costs [99]. - The Group has commenced operations of rooftop solar power panels to reduce traditional electricity consumption and lower production costs [99]. - The Group achieved a record of "zero-rate" industrial accidents during the review period through enhanced safety training and awareness [98]. Financial Position and Management - As of June 30, 2025, the Group's bank balances and cash were approximately RMB 49.9 million, down from RMB 120.3 million as of December 31, 2024 [110]. - The total assets of the Group as of June 30, 2025, were approximately RMB 207.2 million, compared to RMB 235.4 million as of December 31, 2024 [112]. - The Group maintained a gearing ratio of 0% as of June 30, 2025, indicating no outstanding loans [112]. - The Group has maintained a conservative financial management policy, ensuring a solid financial position amidst market fluctuations [110]. - As of June 30, 2025, the Group's trade and other payables were approximately RMB 47.9 million, a decrease of 27.2% from RMB 65.8 million as of December 31, 2024 [125][129]. - The Group had no bank borrowings as of June 30, 2025, consistent with the previous period ending December 31, 2024 [127][131]. - The total personnel expenses for the six months ended June 30, 2025, amounted to approximately RMB 24.0 million, compared to approximately RMB 23.3 million for the same period in 2024 [138][141]. - The Group employed 436 employees as of June 30, 2025, an increase from 427 employees as of June 30, 2024 [138][143]. - The Group's human resources policies are aimed at maintaining a stable workforce through good remuneration and a pleasant working environment [145][146]. Shareholding and Corporate Governance - As of June 30, 2025, CHEN Qiyuan and CHEN Zheng He each hold a long position of 1,900,840,000 ordinary shares, representing approximately 60.12% of the issued share capital of the Company [151]. - CHEN Qiyuan is the beneficial owner of approximately 50.43% of the issued share capital of Fortune Station, which holds 1,900,840,000 shares of the Company [164]. - The beneficial interests of CHEN Qiyuan's five children under the age of 18 in Heroic Hour represent 65.00% of the issued share capital of Heroic Hour, which holds approximately 49.57% of the issued share capital of Fortune Station [164]. - WONG Sin Yung holds a long position of 2,100,000 ordinary shares, representing approximately 0.07% of the issued share capital of the Company [151]. - The total number of shares held by substantial shareholders is significant, with CHEN Qiyuan and CHEN Zheng He collectively holding a majority stake [161]. - The Company has maintained compliance with the Securities and Futures Ordinance regarding the disclosure of interests and positions [160]. - The Company has complied with the applicable code provisions of the Corporate Governance Code during the six months ended June 30, 2025 [189].

中國網成集團股份有限公司 CHINA WACAN GROUP COMPANY LIMITED (Formerly known as China Wacan Group Company Limited 中國網成集團有限公司) (前稱China Wacan Group Company Limited 中國網成集團有限公司) (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立之有限公司) 中期報告 INTERIM REPORT 2025 中國網成集團股份有限公司 CHINA WACAN GROUP COMPANY LIMITED 二零二五年中期報告 中國網成集團股份有限公司 | Corporate Information | 公司資料 | 2 | | --- | --- | --- | | Management Discussion and Analysis | 管理層討論及分析 | 4 | | Condensed Consolidated Statement of Profit or Loss and | 簡明綜合損益及其他 ...

巨星傳奇集團有限公司 (Incorporated in the Cayman Islands with limited liability) （ 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ） Stock code 股份代號： 6683 INTERIM REPORT 中期報告 Contents 目錄 | Corporate Information | 公司資料 | 2 | | --- | --- | --- | | Condensed Consolidated Statements of | 簡明綜合全面收益表 | 5 | | Comprehensive Income | | | | Condensed Consolidated Statement of | 簡明綜合財務狀況表 | 7 | | Financial Position | | | | Condensed Consolidated Statement of | 簡明綜合權益變動表 | 9 | | Changes in Equity | | | | Condensed Consolidated Statement of | 簡明綜合現金流 ...

Fortior Technology(Shenzhen)Co., Ltd. 峰岹科技(深圳)股份有限公司 ﹙於中華人民共和國註冊成立的股份有限公司﹚ 股份代號：1304 中期報告 2025 FORTIOR TECH | の 2007年 000 000 000 000 000 000 000 000 000 000 000 000 000 000 0 | | . | . | 0 0 0 0 0 0 0 .. | | 0 | | � | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 0 0 の 2007年 07:00 【 0 | . . | | | 0 | .. | | | � | | ● | а продови се од подата од се од продови се од се се од подата од се од подата од седности од седности о .. | | | | | | | | | � | | | | | | | | | | � � � | | | | | | | | | | 0 | | ...

Financial Performance - The total revenue for the year ended June 30, 2025, was HKD 57,311,000, a decrease of 72.6% compared to HKD 208,612,000 in 2024[3] - The gross profit for the year was HKD 4,238,000, down 62.8% from HKD 11,400,000 in the previous year[3] - The net loss for the year was HKD 50,309,000, compared to a net loss of HKD 12,222,000 in 2024, representing a 312.5% increase in losses[4] - The company reported a basic and diluted loss per share of HKD 5.03, compared to HKD 1.82 in the previous year[4] - The group reported a pre-tax loss from continuing operations of HKD 51,445,000 for the year ended June 30, 2025, compared to a pre-tax loss of HKD 12,776,000 in 2024[16][17] - The company reported a basic loss attributable to owners of HKD 44,226,000 for the year ended June 30, 2025, compared to a loss of HKD 12,420,000 for the year ended June 30, 2024[24] - The loss attributable to the company's owners for the year was approximately HKD 44.2 million, compared to HKD 12.4 million in 2024, with a notable increase in losses attributed to reduced contributions from smart city solutions and renewable energy businesses[43] Assets and Liabilities - The total assets less current liabilities amounted to HKD 120,564,000, an increase of 15.3% from HKD 104,569,000 in 2024[5] - Non-current assets increased to HKD 45,629,000 from HKD 42,383,000, reflecting a growth of 5.3%[5] - The total trade receivables increased to HKD 162,661,000 in 2025 from HKD 150,366,000 in 2024, with an impairment loss provision of HKD 47,135,000[26] - Accounts receivable (net of expected credit losses) as of June 30, 2025, totaled HKD 115,526,000, a decrease from HKD 142,837,000 in 2024, reflecting a reduction of approximately 19%[27] - The overdue accounts receivable increased significantly, with amounts over one year rising to HKD 117,980,000 in 2025 from HKD 5,406,000 in 2024, indicating a substantial increase of over 2,000%[28] - Accounts payable increased to HKD 170,785,000 in 2025 from HKD 151,245,000 in 2024, reflecting a growth of approximately 13%[30] Revenue Segments - Revenue from the technology segment, specifically smart city solutions, was HKD 48,749,000 in 2025, down from HKD 179,878,000 in 2024, indicating a decrease of about 72.9%[14] - The renewable energy segment generated revenue of HKD 8,562,000 in 2025, compared to HKD 28,734,000 in 2024, reflecting a decline of approximately 70.1%[14] - The group’s revenue for the year ended June 30, 2025, was HKD 57,311,000, a decrease from HKD 208,612,000 in 2024, representing a decline of approximately 72.6%[14] Strategic Initiatives - The company has initiated measures to strengthen cost control and aims to achieve profitable operations with positive cash flow[8] - The company launched a new business related to hydrogen-oxygen machines on September 27, 2025, expected to generate positive cash flow[8] - The company has reached agreements with major shareholders for financial support to improve liquidity[8] - The company is actively negotiating repayment schedules with various trade debtors and creditors to manage cash flow[8] - The company has strategically shifted its investment focus towards green energy, achieving significant breakthroughs in hydrogen and oxygen production technology, with expected industrial application in Q4 2025[33] - The launch of the world's first scalable hydrogen production machine, "Chuang Zhi Rong Hydrogen," is set for September 30, 2025, marking a major milestone in the company's green energy initiatives[33] Market and Industry Trends - The global hydrogen market is projected to reach a demand of 97 million tons in 2023, with an expected annual production capacity of 49 million tons by 2030 for low-emission hydrogen[78] - The green hydrogen sector is estimated to be valued at HKD 71 billion in 2024, with a compound annual growth rate of 56.75% expected to rise to HKD 1.05 trillion by 2030[78] - The overall hydrogen market revenue is forecasted to grow from HKD 1.75 trillion in 2025 to HKD 2.44 trillion by 2030[78] - The steam supply market in China is substantial, driven by industrial demand, urbanization, and environmental regulations, with estimates suggesting a market size of several hundred billion RMB annually[82] Financial Management - The group’s financial liquidity remains positive, with total liquid funds amounting to approximately HKD 11.9 billion as of June 30, 2025[88] - The group raised approximately HKD 23 million from a placement of shares, with funds allocated for renewable energy and data center operations[90] - The company maintained a prudent financial policy, ensuring a positive liquidity position through internal resources and bank borrowings[92] - The company has no authorized but uncontracted capital commitments as of June 30, 2025, compared to a commitment of approximately HKD 5.5 million in the previous year[93] Employee and Operational Costs - The total employee cost for the year ended June 30, 2025, was approximately HKD 21.3 million, an increase from HKD 12.7 million in the previous year[97] - General and administrative expenses rose by approximately 65.5% to about HKD 37.6 million, mainly due to increased R&D and administrative expenses from the newly launched green energy business[45] Dividends and Shareholder Returns - The company did not declare or recommend any dividends for the year ended June 30, 2025, nor for the year ended June 30, 2024[23] - The company did not recommend any final dividend for the year ended June 30, 2025, consistent with the previous year[100]