[Supplementary Announcement Regarding the 2024 Annual Report](index=1&type=section&id=Supplementary%20Announcement%20regarding%20the%202024%20Annual%20Report) [Purpose and Background of the Announcement](index=1&type=section&id=Purpose%20and%20Background%20of%20the%20Announcement) This announcement provides supplementary information on continuing connected transactions disclosed in Gemdale Properties and Investment Corporation Limited's 2024 annual report, in accordance with Hong Kong Listing Rules 14A.71(2) and (5) - This announcement supplements Gemdale Properties and Investment Corporation Limited's 2024 annual report, primarily providing additional information on continuing connected transactions[3](index=3&type=chunk) - The supplement is based on Listing Rules 14A.71(2) and (5)[3](index=3&type=chunk) [Details of Continuing Connected Transactions](index=1&type=section&id=Details%20of%20Continuing%20Connected%20Transactions) The company entered into a three-year Shanghai Xinhua Road Lease Framework Agreement with Shanghai Jincheng, a subsidiary of its ultimate controlling shareholder, to lease properties on Shanghai Xinhua Road, effective January 1, 2024 [Parties and Nature of the Transaction](index=1&type=section&id=Parties%20and%20Nature%20of%20the%20Transaction) - The parties involved are Shanghai Jincheng (as landlord) and the Company, its subsidiaries, and/or its associates (as tenants)[3](index=3&type=chunk) - The transaction involves the lease of certain properties located on Shanghai Xinhua Road[3](index=3&type=chunk) - The lease term is **3 years**, effective from January 1, 2024[3](index=3&type=chunk) [Relationship of Connected Parties](index=1&type=section&id=Relationship%20of%20Connected%20Parties) - Shanghai Jincheng is a subsidiary of Gemdale Corporation, which is the ultimate controlling shareholder of the Company[3](index=3&type=chunk) - Under the Listing Rules, Shanghai Jincheng is identified as a connected person of the Company, making this lease agreement a continuing connected transaction[3](index=3&type=chunk) [Impact on the 2024 Annual Report](index=1&type=section&id=Impact%20on%20the%202024%20Annual%20Report) This supplementary information does not affect other details within the 2024 annual report, with the remaining content unchanged - This supplementary information does not impact other data in the 2024 annual report[3](index=3&type=chunk) - Except for the content disclosed in this announcement, the remaining content of the 2024 annual report remains unchanged[3](index=3&type=chunk) [Board of Directors Information](index=1&type=section&id=Board%20of%20Directors%20Information) - As of August 22, 2025, the Board of Directors comprises **four Executive Directors**, **two Non-executive Directors**, and **three Independent Non-executive Directors**[5](index=5&type=chunk) - Executive Directors include Mr Huang Juncan, Mr Xu Jiajun, Mr Li Ronghui, and Mr Wei Chuanjun[5](index=5&type=chunk) - Non-executive Directors include Mr Loh Lian Huat and Ms Zhang Feiyun[5](index=5&type=chunk) - Independent Non-executive Directors include Mr Hui Chiu Chung, Mr Jiang Shangyi, and Mr Xia Xinping[5](index=5&type=chunk)

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 而 產 生 或 因 依 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任 。 BEIJING TONG REN TANG CHINESE MEDICINE COMPANY LIMITED 北 京 同 仁 堂 國 藥 有 限 公 司 （ 於 香 港 註 冊 成 立 之 有 限 公 司 ） （ 股 份 代 號 ： 3613） 2025 年 中 期 業 績 公 告 北 京 同 仁 堂 國 藥 有 限 公 司 （ 「 本公司 」 ） 董 事 會 （ 「 董事會 」）欣然宣佈本 公 司 及 其 附 屬 公 司 截 至 2025年 6月 30日 止 六 個 月 期 間 之 未 經 審 計 業 績 。 本 公 告 列 載 本 公 司 2025 年 中 期 報 告 全 文 ， 乃 符 合 香 港 聯 合 ...

香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司（「聯 交 所」）對 本 公 告 之 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 對 因 本 公 告 全 部 或 任 何 部 分 內 容 而 產 生 或 因 倚 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 Greentown Service Group Co. Ltd. 綠城服務集團有限公司 （根據開曼群島法律註冊成立的有限公司） （股份代號：2869） 截 至2025年6月30日 止 六 個 月 未 經 審 核 中 期 業 績 公 告 及 變 更 公 司 秘 書 及 法 律 程 序 代 理 人 綠 城 服 務 集 團 有 限 公 司（「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「本 集 團」、「集 團」）截 至2025年6月30日 止 六 個 月（「期 內」）的 未 經 審 核 綜 合 財 務 業 績，連 同 截 至2024年6月30日 ...

[Interim Results Announcement](index=1&type=section&id=%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%B8%83) [Performance Summary](index=1&type=section&id=%E6%A5%AD%E7%B8%BE) Net profit attributable to owners before tax, revaluation, and depreciation rose **30%** to **HK$39 million** for the six months ended June 30, 2025 Net Profit Attributable to Owners of the Company Before Tax, Revaluation, and Depreciation of Land, Property, and Equipment | Metric | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Owners of the Company Before Tax, Revaluation, and Depreciation of Land, Property, and Equipment | 38,646 | 29,622 | +30% | [Interim Dividend](index=1&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board does not recommend an interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Board does not recommend an interim dividend for the six months ended June 30, 2025 (2024: nil)[4](index=4&type=chunk) [Condensed Consolidated Financial Statements](index=2&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) [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) Total revenue grew **4.6%** to **HK$334,338 thousand** for the six months ended June 30, 2025, but loss before tax expanded to **HK$135,077 thousand**, resulting in a **HK$147,561 thousand** loss for the period Key Figures from Condensed Consolidated Statement of Profit or Loss | Metric | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Total Revenue | 334,338 | 319,575 | | Gross Profit | 73,691 | 56,890 | | Impairment Loss on Fair Value of Investment Properties | (154,800) | (92,232) | | Administrative Expenses | (30,842) | (31,270) | | Finance Costs | (25,542) | (33,503) | | Loss Before Tax | (135,077) | (98,835) | | Loss for the Period | (147,561) | (106,520) | | Loss Attributable to Owners of the Company | (79,376) | (54,034) | | Basic Loss Per Share (HK cents) | (32.83) | (22.35) | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%B8%BD%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) Other comprehensive income of **HK$121,222 thousand** from foreign operations' exchange differences significantly reduced total comprehensive expense to **HK$26,238 thousand** for the six months ended June 30, 2025, from **HK$120,464 thousand** in the prior year Key Figures from Condensed Consolidated Statement of Comprehensive Income | Metric | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Loss for the Period | (147,561) | (106,520) | | Exchange Differences Arising from Translation of Foreign Operations | 121,222 | (13,773) | | Other Comprehensive Income (Expense) for the Period | 121,323 | (13,944) | | Total Comprehensive Expense for the Period | (26,238) | (120,464) | | Total Comprehensive Income (Expense) Attributable to Owners of the Company | (32,433) | (59,430) | [Condensed Consolidated Statement of Financial Position](index=4&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, total assets less current liabilities were **HK$8,861,491 thousand**, a slight decrease from December 31, 2024, with non-current assets primarily comprising property, plant and equipment, and investment properties Key Figures from Condensed Consolidated Statement of Financial Position | Metric | As of June 30, 2025 (HK$ thousand) | As of December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Non-current Assets | 9,115,643 | 9,213,584 | | Current Assets | 228,427 | 266,941 | | Current Liabilities | 482,579 | 528,467 | | Net Current Liabilities | (254,152) | (261,526) | | Total Assets Less Current Liabilities | 8,861,491 | 8,952,058 | | Equity Attributable to Owners of the Company | 4,013,125 | 4,045,558 | | Total Equity | 8,108,973 | 8,135,211 | | Non-current Liabilities | 752,518 | 816,847 | [Notes to the Condensed Consolidated Financial Statements](index=5&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) [Basis of Preparation](index=5&type=section&id=1.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) These condensed consolidated financial statements are prepared in accordance with HKAS 34 and Appendix D2 of the HKEX Listing Rules, consistent with the statutory annual consolidated financial statements for the year ended December 31, 2024 - Financial statements are prepared in accordance with HKAS 34 and Appendix D2 of the Listing Rules[8](index=8&type=chunk) - Financial information for the year ended December 31, 2024, has been delivered to the Companies Registry, with an unqualified auditor's report[8](index=8&type=chunk) [Significant Accounting Policies](index=5&type=section&id=2.%20%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) These condensed consolidated financial statements are prepared on a historical cost basis, except for investment properties and certain financial instruments measured at fair value, with consistent accounting policies and no material impact from HKFRS amendments - Financial statements are prepared on a historical cost basis, excluding investment properties and some financial instruments[9](index=9&type=chunk) - Accounting policies adopted for the period are consistent with the prior year, and amendments to HKFRS have no material impact on financial position and performance[9](index=9&type=chunk)[11](index=11&type=chunk) [Revenue](index=6&type=section&id=3.%20%E6%94%B6%E5%85%A5) For the six months ended June 30, 2025, total revenue was **HK$334,338 thousand**, primarily from hotel operating and property rental income, with hotel revenue being the largest contributor Revenue Stream Details | Revenue Stream | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Hotel Operating Revenue | 268,032 | 259,757 | | Property Rental Income | 66,281 | 59,818 | | Dividend Income | 25 | - | | **Total Revenue** | **334,338** | **319,575** | [Segment Information](index=7&type=section&id=4.%20%E5%88%86%E9%A1%9E%E8%B3%87%E6%96%99) The Group's operating segments include hotel services, property investment, and securities investment, with hotel services showing positive segment results while property investment recorded a significant loss for the six months ended June 30, 2025 - The Chairman of the Company is the chief operating decision maker, and segment information is used for resource allocation and performance assessment[13](index=13&type=chunk) - Operating and reportable segments include hotel services (9 hotels), property investment (3 major properties), and securities investment[14](index=14&type=chunk) Segment Revenue and Results | Segment | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | Segment Results (2025) (HK$ thousand) | Segment Results (2024) (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Hotel Services | 268,032 | 259,757 | 9,353 | (1,066) | | Property Investment | 66,281 | 59,818 | (90,487) | (34,276) | | Securities Investment | 25 | - | 25 | - | | **Total** | **334,338** | **319,575** | **(81,109)** | **(35,342)** | [Finance Costs](index=9&type=section&id=5.%20%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) For the six months ended June 30, 2025, total finance costs were **HK$25,542 thousand**, primarily from bank loan interest, representing a **23.8%** year-on-year decrease Finance Costs Details | Item | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Interest on Bank Loans | 23,819 | 31,657 | | Interest on Amounts Due to a Fellow Subsidiary | 1,723 | 1,846 | | **Total Finance Costs** | **25,542** | **33,503** | [Income Tax Expense](index=9&type=section&id=6.%20%E6%89%80%E5%BE%97%E7%A8%85%E8%B2%BB%E7%94%A8) For the six months ended June 30, 2025, income tax expense was **HK$12,484 thousand**, mainly from current tax in Hong Kong and the UK, increasing by **62.4%** year-on-year Income Tax Expense Details | Item | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Current Tax - Hong Kong | 9,410 | 7,070 | | Current Tax - United Kingdom | 4,231 | 2,459 | | Underprovision in Prior Years (Hong Kong) | 111 | - | | Deferred Tax | (1,268) | (1,844) | | **Total Income Tax Expense** | **12,484** | **7,685** | - Hong Kong profits tax rate is **16.5%**, while China and UK profits tax are recognized based on management's estimated weighted average annual income tax rate[16](index=16&type=chunk)[17](index=17&type=chunk) [Loss for the Period Has Been Arrived at After Charging (Crediting) Items](index=10&type=section&id=%E6%9C%AC%E6%9C%9F%E8%99%A7%E6%90%8D%E7%B6%93%E5%B7%B2%E6%89%A3%E9%99%A4(%E8%A8%88%E5%8F%8A)%E4%BB%A5%E4%B8%8B%E9%A0%85%E7%9B%AE) For the six months ended June 30, 2025, the loss for the period included **HK$83,192 thousand** in depreciation of property, plant and equipment and credited **HK$1,487 thousand** in interest income from bank deposits Loss for the Period Has Been Arrived at After Charging (Crediting) Items | Item | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Depreciation of Right-of-Use Assets | 384 | 381 | | Depreciation of Property, Plant and Equipment | 83,192 | 82,458 | | Interest Income from Bank Deposits | (1,487) | (2,981) | | Loss on Disposal of Property, Plant and Equipment | 82 | 2,497 | [Loss Per Share](index=10&type=section&id=8.%20%E6%AF%8F%E8%82%A1%E8%99%A7%E6%90%8D) For the six months ended June 30, 2025, basic loss per share expanded to **32.83 HK cents** from **22.35 HK cents** in the prior period, primarily due to an increase in loss attributable to owners of the company Loss Per Share Data | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Loss for the Period Attributable to Owners of the Company (HK$ thousand) | 79,376 | 54,034 | | Number of Shares in Issue (thousands) | 241,766 | 241,766 | | Basic Loss Per Share (HK cents) | (32.83) | (22.35) | - No potential ordinary shares were outstanding during the period or prior period, thus diluted loss per share is not presented[19](index=19&type=chunk) [Trade and Other Receivables](index=11&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E5%B8%B3%E6%AC%BE%EF%BC%88%E5%AE%A2%E6%88%B6%E5%90%88%E7%B4%84%EF%BC%89) As of June 30, 2025, total trade and other receivables decreased to **HK$13,022 thousand** from **HK$15,454 thousand** on December 31, 2024, with the Group granting 30 to 60 days credit to hotel travel agents and certain customers Trade and Other Receivables Details | Item | As of June 30, 2025 (HK$ thousand) | As of December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade Receivables (from contracts with customers) | 6,999 | 10,088 | | Lease Receivables | 2,534 | 2,250 | | Other Receivables | 3,489 | 3,116 | | **Total** | **13,022** | **15,454** | Ageing Analysis of Trade and Lease Receivables | Ageing | As of June 30, 2025 (HK$ thousand) | As of December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Not yet due | 9,280 | 12,139 | | Overdue (0-30 days) | 80 | 104 | | Overdue (31-60 days) | 173 | 94 | | Overdue (61-90 days) | - | 1 | | **Total** | **9,533** | **12,338** | [Trade and Other Payables and Accruals](index=11&type=section&id=10.%20%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E5%B8%B3%E6%AC%BE%E5%8F%8A%E9%A0%90%E6%8F%90%E5%B8%B3%E6%AC%BE) As of June 30, 2025, total trade and other payables and accruals decreased to **HK$49,498 thousand** from **HK$60,590 thousand** on December 31, 2024 Trade and Other Payables and Accruals Details | Item | As of June 30, 2025 (HK$ thousand) | As of December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade Payables | 4,748 | 5,288 | | Other Payables and Accruals | 44,750 | 55,302 | | **Total** | **49,498** | **60,590** | Ageing Analysis of Trade Payables | Ageing | As of June 30, 2025 (HK$ thousand) | As of December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | 0-30 days | 4,740 | 5,281 | | 31-60 days | 7 | 6 | | 61-90 days | 1 | 1 | | **Total** | **4,748** | **5,288** | [Management Discussion and Analysis](index=12&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E4%B9%8B%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) [Business Performance](index=12&type=section&id=%E6%A5%AD%E5%8B%99%E8%A1%A8%E7%8F%BE) [Hotel Business](index=12&type=section&id=1.%20%E9%85%92%E5%BA%97%E6%A5%AD%E5%8B%99) Hotel business revenue grew **3%** to **HK$268 million**, with Grand Hotel Group's net profit attributable to owners increasing **43%**, and Royal Scot Hotel's annual rent rising **34%** - The Group's hotel operating revenue was **HK$268 million**, a **3%** year-on-year increase[24](index=24&type=chunk) - The Group owns nine hotels, totaling approximately 3,042 rooms, making it one of Hong Kong's largest hotel groups[24](index=24&type=chunk) Net Profit Attributable to Owners of Grand Hotel Group | Metric | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Owners of Grand Hotel Group Before Tax, Revaluation, and Depreciation of Land, Property, and Equipment | 59,295 | 41,562 | +43% | - Grand Hotel Group's total revenue increased by **5%** year-on-year to approximately **HK$258 million**[27](index=27&type=chunk) - The annual rent for Royal Scot Hotel in London increased by **34%** from **GBP3,546,000** to **GBP4,737,000**[27](index=27&type=chunk) [Commercial Property Rental Income](index=14&type=section&id=2.%20%E5%95%86%E6%A5%AD%E7%89%A9%E6%A5%AD%E7%A7%9F%E9%87%91%E6%94%B6%E5%85%A5) Commercial property rental income totaled **HK$66 million**, a **10%** increase year-on-year, with Hong Kong commercial properties at 633 King's Road and Shun Ho Commercial Building achieving **91%** and **77%** occupancy rates respectively - Commercial property rental income was **HK$66 million**, a **10%** year-on-year increase[28](index=28&type=chunk) Occupancy Rate of Hong Kong Commercial Properties | Property | Occupancy Rate | | :--- | :--- | | 633 King's Road | 91% | | Shun Ho Commercial Building | 77% | [Liquidity](index=14&type=section&id=%E8%B3%87%E9%87%91%E6%B5%81%E5%8B%95) As of June 30, 2025, the Group's overall debt decreased to **HK$955 million** from **HK$1,060 million** on December 31, 2024, with a gearing ratio of **12%**, while facing foreign exchange risks and employing 647 staff Overall Debt and Gearing Ratio | Metric | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Overall Debt (HK$ thousand) | 955,000 | 1,060,000 | | Gearing Ratio | 12% | 13% | - Bank loans primarily bear interest at floating rates denominated in HKD and GBP, exposing the Group to foreign exchange risk[30](index=30&type=chunk) - The Group has a total of 647 employees, with remuneration and benefits determined by market conditions[30](index=30&type=chunk) [Key Business Achievements](index=15&type=section&id=%E9%87%8D%E9%BB%9E%E6%A5%AD%E5%8B%99%E6%88%90%E7%B8%BE) The Group achieved **5%** total revenue growth to **HK$334 million**, maintaining over **90%** average hotel occupancy, and securing a **34%** increase in Royal Scot Hotel's annual rent - Hong Kong overnight visitor arrivals reached approximately **11.3 million**, a **6.6%** year-on-year increase, but remained below pre-pandemic levels[31](index=31&type=chunk) - Per capita spending by Chinese tourists remains below pre-pandemic levels, with tourism recovery affected by the expensive HKD against RMB and declining per capita spending[31](index=31&type=chunk) - The Group's average hotel occupancy rate consistently exceeded **90%**, with hotel revenue growing **3%** and total revenue growing **5%**[31](index=31&type=chunk) - The annual rent for Royal Scot Hotel in London successfully increased by **34%** from **GBP3,546,000** to **GBP4,737,000**[32](index=32&type=chunk) - Wood Street Hotel in London has been approved for renovation into a luxury hotel with approximately 216 rooms[32](index=32&type=chunk) [Outlook](index=15&type=section&id=%E5%B1%95%E6%9C%9B%E6%9C%AA%E4%BE%86) The Group holds nine revenue-generating hotels and the London Wood Street Hotel renovation project, but future hotel and rental income face challenges from China's weak economy, expensive HKD against RMB, and US-China trade tensions, though multi-entry visa policies in major Chinese cities offer potential encouragement - The Group owns nine revenue-generating hotels and the London Wood Street Hotel renovation project[33](index=33&type=chunk) - Tourism recovery is affected by China's weak economy and the expensive HKD against RMB, with Chinese tourists tending towards day trips to the Greater Bay Area[33](index=33&type=chunk) - Commercial property occupancy rates are impacted by the US-China trade war and declining Hong Kong import/export volumes[33](index=33&type=chunk) - Management will continue efforts to increase revenue and control costs to address challenges in hotel business and rental income[34](index=34&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=15&type=section&id=%E8%B3%BC%E5%85%A5%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B3%96%E5%9B%9E%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) For the six months ended June 30, 2025, neither the company nor 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 of the company's listed securities[35](index=35&type=chunk) [Corporate Governance](index=16&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) [Compliance with Corporate Governance Code](index=16&type=section&id=(a)%20%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The company complied with the Corporate Governance Code in Appendix C1 of the Listing Rules, with a deviation where the Chairman and Chief Executive are the same person, an arrangement the Board believes ensures stable leadership and cost savings - The company complied with the Corporate Governance Code, but the Chairman and Chief Executive are the same person, Mr. Cheng Kai Man, deviating from Code Provision C.2.1[36](index=36&type=chunk) - The Board believes this dual role ensures stable and consistent leadership for the company and significantly reduces costs[36](index=36&type=chunk) [Compliance with Model Code](index=16&type=section&id=(b)%20%E9%81%B5%E5%AE%88%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The company adopted the Model Code in Appendix C3 of the Listing Rules, and all directors confirmed compliance throughout the period - The company adopted the Model Code in Appendix C3 of the Listing Rules, and all directors confirmed compliance with the code during the period[37](index=37&type=chunk) [Review by Audit Committee](index=16&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83%E4%B9%8B%E5%AF%A9%E9%96%B1) The Audit Committee reviewed the Group's unaudited financial results for the six months ended June 30, 2025 - The Audit Committee reviewed the Group's unaudited financial results for the six months ended June 30, 2025[38](index=38&type=chunk) [Board of Directors Information](index=16&type=section&id=%E6%96%BC%E6%9C%AC%E5%85%AC%E5%91%8A%E6%97%A5%E6%9C%9F%EF%BC%8C%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B9%8B%E8%91%A3%E4%BA%8B%E6%9C%83%E6%88%90%E5%93%A1%E5%8C%85%E6%8B%AC) As of the announcement date, the Board comprises four executive directors (including Chairman Mr. Cheng Kai Man), one non-executive director, and three independent non-executive directors - The Board of Directors includes four executive directors (Mr. Cheng Kai Man as Chairman), one non-executive director, and three independent non-executive directors[39](index=39&type=chunk)

[Performance Overview](index=1&type=section&id=%E6%A5%AD%E7%B8%BE) [Interim Results Summary](index=1&type=section&id=%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E6%91%98%E8%A6%81) For the six months ended June 30, 2025, net profit attributable to owners, before revaluation and depreciation, increased by 29% year-on-year to HK$79 million Interim Results Summary | Metric | For the six months ended June 30, 2025 (in thousands of HKD) | For the six months ended June 30, 2024 (in thousands of HKD) | Change | | :--- | :--- | :--- | :--- | | Loss after tax and non-controlling interests | (138,175) | (92,837) | | | Add: Revaluation loss | 153,355 | 90,787 | | | Add: Depreciation of property, plant and equipment | 63,486 | 62,914 | | | Net profit attributable to owners before revaluation and depreciation | 78,666 | 60,864 | +29% | [Interim Dividend](index=1&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board does not recommend an interim dividend for the six months ended June 30, 2025, consistent with the prior year period - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (Six months ended June 30, 2024: Nil)[4](index=4&type=chunk) [Condensed Consolidated Financial Statements](index=2&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) [Condensed Consolidated Statement of Profit or Loss](index=2&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 total revenue grew to HK$334,338 thousand, but the period's loss widened to HK$145,255 thousand due to fair value impairment of investment properties Key Data from Condensed Consolidated Statement of Profit or Loss | Metric | For the six months ended June 30, 2025 (in thousands of HKD) | For the six months ended June 30, 2024 (in thousands of HKD) | | :--- | :--- | :--- | | Revenue | 334,338 | 319,575 | | Cost of sales | (2,234) | (1,750) | | Other service costs | (176,964) | (180,129) | | Gross profit | 73,691 | 56,890 | | Fair value impairment of investment properties | (154,800) | (92,232) | | Administrative expenses | (30,223) | (30,573) | | Finance costs | (23,855) | (31,732) | | Loss before tax | (132,771) | (96,368) | | Income tax expense | (12,484) | (7,685) | | Loss for the period | (145,255) | (104,053) | | Loss attributable to owners of the Company | (138,175) | (92,837) | | Basic loss per share (HK cents) | (27.01) | (18.15) | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%B8%BD%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) The loss for the period was HK$145,255 thousand, but other comprehensive income of HK$121,222 thousand from exchange differences on translating foreign operations significantly reduced the total comprehensive expense to HK$30,192 thousand Key Data from Condensed Consolidated Statement of Comprehensive Income | Metric | For the six months ended June 30, 2025 (in thousands of HKD) | For the six months ended June 30, 2024 (in thousands of HKD) | | :--- | :--- | :--- | | Loss for the period | (145,255) | (104,053) | | Fair value (loss) gain on equity investments | (6,159) | 455 | | Exchange differences on translation of foreign operations | 121,222 | (13,773) | | Other comprehensive income (expense) for the period | 115,063 | (13,318) | | Total comprehensive expense for the period | (30,192) | (117,371) | | Total comprehensive (expense) income attributable to owners of the Company | (56,378) | (102,306) | [Condensed Consolidated Statement of Financial Position](index=4&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 slightly decreased, non-current assets remained stable, and a reduction in current liabilities narrowed the net current liabilities Key Data from Condensed Consolidated Statement of Financial Position | Metric | As of June 30, 2025 (in thousands of HKD) | As of December 31, 2024 (in thousands of HKD) | | :--- | :--- | :--- | | Property, plant and equipment | 4,585,743 | 4,619,901 | | Investment properties | 4,507,845 | 4,571,490 | | Total non-current assets | 9,153,831 | 9,258,032 | | Bank balances and cash | 198,476 | 234,982 | | Total current assets | 227,866 | 266,347 | | Total current liabilities | 436,583 | 484,744 | | Net current liabilities | (208,717) | (218,397) | | Equity attributable to owners of the Company | 6,970,034 | 7,026,412 | | Bank loans (non-current) | 566,121 | 626,721 | [Notes to the Financial Statements](index=5&type=section&id=%E9%99%84%E8%A8%BB) [Basis of Preparation](index=5&type=section&id=%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The condensed consolidated financial statements are prepared in accordance with HKAS 34 issued by the HKICPA and the disclosure requirements of Appendix D2 of the HKEX Listing Rules - These condensed consolidated financial statements have been prepared in accordance with Hong Kong Accounting Standard 34 ("Interim Financial Reporting") issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of Appendix D2 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[8](index=8&type=chunk) [Principal Accounting Policies](index=5&type=section&id=%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The financial statements are prepared on a historical cost basis, except for investment properties and certain financial instruments, with no material impact from new HKFRS amendments - The condensed consolidated financial statements have been prepared on the historical cost basis, except for investment properties and certain financial instruments which are measured at fair values[9](index=9&type=chunk) - The application of the amendments to Hong Kong Financial Reporting Standards in the current period has had **no material effect** on the amounts reported in these condensed consolidated financial statements and/or disclosures set out in these condensed consolidated financial statements[11](index=11&type=chunk) [Revenue Composition](index=6&type=section&id=%E6%94%B6%E5%85%A5) The Group's revenue, primarily from hotel operations, property rental, and dividends, grew by 4.6% year-on-year to HK$334,338 thousand Breakdown of Revenue | Revenue Source | For the six months ended June 30, 2025 (in thousands of HKD) | For the six months ended June 30, 2024 (in thousands of HKD) | | :--- | :--- | :--- | | Income from hotel operations | 268,032 | 259,757 | | Property rental income | 66,281 | 59,818 | | Dividend income | 25 | - | | **Total Revenue** | **334,338** | **319,575** | [Segment Information](index=7&type=section&id=%E5%88%86%E9%A1%9E%E8%B3%87%E6%96%99) The Group's operating segments include hotel services, property investment, and securities investment, with the hotel segment achieving profitability while property investment incurred losses due to revaluation - The Group’s operating and reportable segments are determined based on information reported to the chief operating decision-maker (the Chairman of the Company) for the purposes of resource allocation and performance assessment, and are categorised as follows: hotel services, property investment, and securities investment[13](index=13&type=chunk)[14](index=14&type=chunk) Segment Revenue and Results | Segment | 2025 Revenue (in thousands of HKD) | 2024 Revenue (in thousands of HKD) | 2025 Results (in thousands of HKD) | 2024 Results (in thousands of HKD) | | :--- | :--- | :--- | :--- | :--- | | Hotel services | 268,032 | 259,757 | 9,353 | (1,066) | | Property investment | 66,281 | 59,818 | (90,487) | (34,276) | | Securities investment | 25 | - | 25 | - | | **Total** | **334,338** | **319,575** | **(81,109)** | **(35,342)** | [Finance Costs](index=9&type=section&id=%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) Finance costs for the period, mainly comprising interest on bank loans, decreased to HK$23,855 thousand Breakdown of Finance Costs | Cost Item | For the six months ended June 30, 2025 (in thousands of HKD) | For the six months ended June 30, 2024 (in thousands of HKD) | | :--- | :--- | :--- | | Interest on bank loans | 23,819 | 31,657 | | Interest on amount due to an intermediate holding company | 36 | 75 | | **Total Finance Costs** | **23,855** | **31,732** | [Income Tax Expense](index=9&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E8%B2%BB%E7%94%A8) The income tax expense for the period was HK$12,484 thousand, primarily from current taxes in Hong Kong and the UK, with the Hong Kong profits tax rate at 16.5% Breakdown of Income Tax Expense | Tax Type | For the six months ended June 30, 2025 (in thousands of HKD) | For the six months ended June 30, 2024 (in thousands of HKD) | | :--- | :--- | :--- | | Current tax: Hong Kong | 9,410 | 7,070 | | Current tax: United Kingdom | 4,231 | 2,459 | | Under-provision in prior years: Hong Kong | 111 | - | | Deferred tax | (1,268) | (1,844) | | **Total Income Tax Expense** | **12,484** | **7,685** | - The annual tax rate used for the six months ended June 30, 2025 (Hong Kong Profits Tax) was **16.5%** (Six months ended June 30, 2024: 16.5%)[16](index=16&type=chunk) [Loss for the Period Has Been Arrived at After Charging/Crediting](index=10&type=section&id=%E6%9C%AC%E6%9C%9F%E8%99%A7%E6%90%8D%E7%B6%93%E5%B7%B2%E6%89%A3%E9%99%A4(%E8%A8%88%E5%8F%8A)%E4%BB%A5%E4%B8%8B%E9%A0%85%E7%9B%AE) The loss for the period was arrived at after charging depreciation of property, plant and equipment of HK$83,192 thousand and crediting bank interest income of HK$1,487 thousand Items Charged/Credited to Loss for the Period | Item | For the six months ended June 30, 2025 (in thousands of HKD) | For the six months ended June 30, 2024 (in thousands of HKD) | | :--- | :--- | :--- | | Depreciation of right-of-use assets | 384 | 381 | | Depreciation of property, plant and equipment | 83,192 | 82,458 | | Interest income from bank deposits | (1,487) | (2,981) | | Loss on disposal of property, plant and equipment | 82 | 2,497 | [Dividend Policy](index=10&type=section&id=%E8%82%A1%E6%81%AF) The Board resolved not to declare or recommend an interim dividend for the six months ended June 30, 2025, consistent with the prior year period - The Board of Directors has resolved not to declare or recommend the payment of an interim dividend for the six months ended June 30, 2025 and June 30, 2024[20](index=20&type=chunk) [Loss Per Share](index=10&type=section&id=%E6%AF%8F%E8%82%A1%E8%99%A7%E6%90%8D) Basic loss per share for the six months ended June 30, 2025, widened to 27.01 HK cents from 18.15 HK cents in the prior year period, due to an increased loss for the period - The calculation of basic loss per share is based on the loss for the period attributable to owners of the Company of **HK$138,175,000** (Six months ended June 30, 2024: HK$92,837,000) and 511,613,000 shares in issue during the period[21](index=21&type=chunk) Loss Per Share | Metric | For the six months ended June 30, 2025 (HK cents) | For the six months ended June 30, 2024 (HK cents) | | :--- | :--- | :--- | | Basic loss per share | (27.01) | (18.15) | [Trade and Other Receivables](index=11&type=section&id=%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E5%B8%B3%E6%AC%BE) As of June 30, 2025, total trade and other receivables decreased to HK$12,760 thousand from December 31, 2024, with the majority of receivables not yet due Breakdown of Trade and Other Receivables | Item | As of June 30, 2025 (in thousands of HKD) | As of December 31, 2024 (in thousands of HKD) | | :--- | :--- | :--- | | Trade receivables (from contracts with customers) | 6,999 | 10,088 | | Lease receivables | 2,534 | 2,250 | | Other receivables | 3,227 | 2,859 | | **Total** | **12,760** | **15,197** | Ageing Analysis of Trade and Lease Receivables | Ageing | As of June 30, 2025 (in thousands of HKD) | As of December 31, 2024 (in thousands of HKD) | | :--- | :--- | :--- | | Not yet due | 9,280 | 12,139 | | Overdue 0 – 30 days | 80 | 104 | | Overdue 31 – 60 days | 173 | 94 | | Overdue 61 – 90 days | - | 1 | | **Total** | **9,533** | **12,338** | [Trade and Other Payables and Accruals](index=11&type=section&id=%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E5%B8%B3%E6%AC%BE%E5%8F%8A%E9%A0%90%E6%8F%90%E8%B2%B3%E6%AC%BE) As of June 30, 2025, total trade and other payables and accruals decreased to HK$49,209 thousand, with the vast majority of trade payables due within 30 days Breakdown of Trade and Other Payables and Accruals | Item | As of June 30, 2025 (in thousands of HKD) | As of December 31, 2024 (in thousands of HKD) | | :--- | :--- | :--- | | Trade payables | 4,748 | 5,288 | | Other payables and accruals | 44,461 | 54,899 | | **Total** | **49,209** | **60,187** | Ageing Analysis of Trade Payables | Ageing | As of June 30, 2025 (in thousands of HKD) | As of December 31, 2024 (in thousands of HKD) | | :--- | :--- | :--- | | 0 – 30 days | 4,740 | 5,281 | | 31 – 60 days | 7 | 6 | | 61 – 90 days | 1 | 1 | | **Total** | **4,748** | **5,288** | [Management Discussion and Analysis](index=12&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E4%B9%8B%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) [Overall Performance Review](index=12&type=section&id=%E6%95%B4%E9%AB%94%E6%A5%AD%E7%B8%BE%E5%9B%9E%E9%A1%A7) Net profit attributable to owners, before revaluation and depreciation, grew 29% to HK$78.7 million, driven by higher revenue and lower costs, while the Board withheld dividends to preserve cash - The Company's net profit attributable to owners, after tax and before revaluation and depreciation, was **HK$78,700,000**, an increase of HK$18,000,000 (**+29%**) from HK$60,900,000 for the six months ended June 30, 2024[24](index=24&type=chunk) - The increase in overall profit was mainly due to a **5% increase in revenue** and a decrease in hotel operating costs and finance costs[27](index=27&type=chunk) - The decision not to recommend an interim dividend was to ensure higher cash flow for the challenging market, reduce bank debt, and fund the renovation of the Wood Street Hotel in London[26](index=26&type=chunk) [Business Performance](index=13&type=section&id=%E8%A1%A8%E7%8F%BE) The Group's hotel business revenue grew by 3%, with a significant 43% increase in net profit for the Magnificent Hotel Group, alongside growth in commercial property rental income [Hotel Business](index=13&type=section&id=%E9%85%92%E5%BA%97%E6%A5%AD%E5%8B%99) Hotel operating revenue increased by 3% to HK$268 million, while Magnificent Hotel Group's net profit, before revaluation and depreciation, surged 43% to HK$59.3 million - The Group's revenue from hotel operations was **HK$268,000,000**, an increase of 3% from HK$260,000,000 for the six months ended June 30, 2024[28](index=28&type=chunk) - Net profit attributable to owners of Magnificent Hotel, before revaluation and depreciation, was **HK$59,300,000**, an increase of HK$17,700,000 (**+43%**) from HK$41,600,000 for the six months ended June 30, 2024[28](index=28&type=chunk) - Management successfully increased the annual rent of the Royal Scot Hotel in London by **34%** from £3,546,000 to £4,737,000[30](index=30&type=chunk) [Commercial Property Rental Income](index=14&type=section&id=%E5%95%86%E6%A5%AD%E7%89%A9%E6%A5%AD%E7%A7%9F%E9%87%91%E6%94%B6%E5%85%A5) Commercial property rental income totaled HK$66 million, showing year-on-year growth, with Shun Ho Tower and 633 King's Road achieving occupancy rates of 91% and 77% respectively - Commercial property rental income, derived from properties in the UK and Hong Kong, totaled **HK$66,000,000** (Six months ended June 30, 2024: HK$60,000,000)[31](index=31&type=chunk) Hong Kong Commercial Property Occupancy Rates | Property | Occupancy Rate | | :--- | :--- | | Shun Ho Tower | 91% | | 633 King's Road | 77% | [Liquidity and Capital Resources](index=14&type=section&id=%E8%B3%87%E9%87%91%E6%B5%81%E5%8B%95) As of June 30, 2025, the Group's total debt decreased to HK$909 million, improving the gearing ratio to 11%, while the Group actively manages its foreign exchange risk exposure - As at June 30, 2025, the Group's (including Magnificent Hotel and its subsidiaries) total debt was **HK$909,000,000** (December 31, 2024: HK$1,016,000,000)[33](index=33&type=chunk) - The Group's (including Magnificent Hotel and its subsidiaries) gearing ratio improved to **11%** from 12% as at December 31, 2024[33](index=33&type=chunk) - The Group's bank loans are primarily denominated in Hong Kong dollars and Pound Sterling at floating interest rates, exposing the Group to foreign exchange risk which management actively monitors and manages[33](index=33&type=chunk) [Key Business Achievements](index=15&type=section&id=%E9%87%8D%E9%BB%9E%E6%A5%AD%E5%8B%99%E6%88%90%E7%B8%BE) The Group maintained an average hotel occupancy rate above 90% amid 11.3 million overnight visitor arrivals to Hong Kong, successfully increased rent for a London hotel, and advanced a new hotel renovation project - For the six months ended June 30, 2025, overnight visitor arrivals to Hong Kong were approximately **11.3 million** (Six months ended June 30, 2024: 10.6 million)[34](index=34&type=chunk) - During the period, the Group's average hotel occupancy rate consistently exceeded **90%**[34](index=34&type=chunk) - The Group's hotel revenue increased by **3%** to HK$268,000,000, and total revenue increased by **5%** to HK$334,000,000[34](index=34&type=chunk) - Management successfully increased the annual rent of the Royal Scot Hotel in London by **34%** from £3,546,000 to £4,737,000[35](index=35&type=chunk) - The Group acquired the Wood Street Police Station headquarters in central London for £40,000,000 and has received approval to renovate it into a luxury hotel with approximately 216 guest rooms[35](index=35&type=chunk) [Future Outlook](index=15&type=section&id=%E5%B1%95%E6%9C%9B%E6%9C%AA%E4%BE%86) The outlook for hotel and rental income remains challenging due to economic headwinds, though the expansion of the "multi-entry visa" policy may provide a positive catalyst - The future prospects for the hotel business and rental income remain challenging, and management will continue to focus on increasing revenue and controlling costs[37](index=37&type=chunk) - A weak Chinese economy and a strong Hong Kong dollar against the Renminbi have led more Chinese tourists to opt for day trips to Hong Kong while staying in the Greater Bay Area[36](index=36&type=chunk) - The expansion of the multi-entry visa policy to other major Chinese cities like Beijing and Shanghai is expected to be a significant positive development[36](index=36&type=chunk) - Occupancy rates at 633 King's Road and Shun Ho Tower are affected by the US-China trade war and declining Hong Kong import/export volumes, as most tenants are international trading companies[36](index=36&type=chunk) [Dealings in Listed Securities](index=15&type=section&id=%E8%B3%BC%E5%85%A5%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) [Dealings in Listed Securities](index=15&type=section&id=%E4%B8%8A%E5%B8%82%E8%AF%81%E5%88%B8%E4%BA%A4%E6%98%93%E6%83%85%E5%86%B5) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the six months ended June 30, 2025 - During the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company's listed securities[38](index=38&type=chunk) [Corporate Governance](index=16&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) [Compliance with the Corporate Governance Code](index=16&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The Company complied with the Corporate Governance Code, except for the deviation where the roles of Chairman and Chief Executive Officer are held by the same individual - For the six months ended June 30, 2025, the Company has complied with all applicable code provisions of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules, except for the following deviation: Code Provision C.2.1 stipulates that the roles of chairman and chief executive should not be performed by the same individual[39](index=39&type=chunk) - The Board believes that vesting the roles of both Chairman and Chief Executive Officer in the same person, Mr. William Cheng Kai Man, provides the Company with **strong and consistent leadership** and facilitates effective planning and implementation of the Company's strategies[39](index=39&type=chunk) [Compliance with the Model Code](index=16&type=section&id=%E9%81%B5%E5%AE%88%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The Company has adopted the Model Code for securities transactions by directors, and all directors have confirmed their compliance throughout the period - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers ("Model Code") as set out in Appendix C3 to the Listing Rules as its own code of conduct regarding securities transactions by the Directors, and all Directors have confirmed their compliance with the required standard set out in the Model Code throughout the period[40](index=40&type=chunk) [Audit Committee Review](index=16&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83%E4%B9%8B%E5%AF%A9%E9%96%B1) [Audit Committee Review](index=16&type=section&id=%E5%AE%A1%E6%A0%B8%E5%A7%94%E5%91%98%E4%BC%9A%E5%AE%A1%E9%98%85%E6%83%85%E5%86%B5) The Audit Committee has reviewed the Group's unaudited financial results for the six months ended June 30, 2025 - The Audit Committee has reviewed the unaudited financial results of the Group for the six months ended June 30, 2025[41](index=41&type=chunk) [Board of Directors Information](index=16&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E4%BF%A1%E6%81%AF) [Board Composition](index=16&type=section&id=%E8%91%A3%E4%BA%8B%E4%BC%9A%E6%88%90%E5%91%98%E6%9E%84%E6%88%90) As of the date of this announcement, the Board of Directors comprises four executive directors, one non-executive director, and three independent non-executive directors - As at the date of this announcement, the Board of Directors of the Company comprises four Executive Directors, namely Mr. William Cheng Kai Man (Chairman), Mr. Alexander Hui Wing Ho, Ms. Kimmy Lau Kam May and Ms. Wendy Ngan Mui Ying; one Non-executive Director, namely Mrs. Lo Fong Mei Yee, Anita; and three Independent Non-executive Directors, namely Mr. Chan Kim Fai, Mr. Lam Kwai Cheung and Mr. Liu Yue Chu[43](index=43&type=chunk)

[GEM Features and Disclaimer](index=2&type=section&id=GEM%E7%9A%84%E7%89%B9%E8%89%B2) The GEM market provides a listing platform for small and medium-sized enterprises, but this entails higher investment risks and market volatility, with no guarantee of high liquidity [GEM Market Positioning and Risk Warning](index=2&type=section&id=GEM%E4%B9%8B%E5%AE%9A%E4%BD%8D) The GEM market offers a listing platform for small and medium-sized companies, but these companies typically carry higher investment risks and market volatility, with no assurance of high liquidity - The GEM market provides listing opportunities for small and medium-sized companies, but involves **higher investment risks**, **greater market volatility**, and **no guaranteed liquidity**[2](index=2&type=chunk) - Hong Kong Exchanges and Clearing Limited and the Stock Exchange take no responsibility for this report's content, make no representation as to its accuracy or completeness, and disclaim any liability for losses arising from reliance on it[2](index=2&type=chunk) [Interim Results Summary](index=3&type=section&id=%E6%91%98%E8%A6%81) The group's total revenue increased by 26.1% to HK$111.9 million, with loss attributable to owners narrowing to HK$8.348 million for the six months ended June 30, 2025 [Financial Performance Summary](index=3&type=section&id=%E8%B2%A1%E5%8B%99%E8%A1%A8%E7%8F%BE%E6%91%98%E8%A6%81) For the six months ended June 30, 2025, the company's total revenue increased by 26.1% to approximately HK$111.9 million, and loss attributable to owners narrowed to approximately HK$8.348 million Interim Financial Summary 2025 | Metric | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 111,920 | 88,713 | +26.1% | | Loss Attributable to Owners of the Company | (8,348) | (10,740) | -22.3% | | Interim Dividend | Nil | Nil | - | [Unaudited Consolidated Results](index=3&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E6%A5%AD%E7%B8%BE) The group's unaudited consolidated results for the period show improved financial performance with reduced losses and positive comprehensive income [Unaudited Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=4&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%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, group revenue grew 26.1% to HK$111.9 million, with loss for the period narrowing to HK$7.968 million, primarily due to increased revenue and positive exchange differences Consolidated Statement of Profit or Loss and Other Comprehensive Income Overview | Metric | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 111,920 | 88,713 | +26.1% | | Loss Before Income Tax | (7,968) | (11,223) | -29.0% | | Loss for the Period | (7,968) | (11,223) | -29.0% | | Loss Attributable to Owners of the Company | (8,348) | (10,740) | -22.3% | | Exchange Differences on Translation of Foreign Operations | 8,944 | (8,201) | From Negative to Positive | | Total Comprehensive Income for the Period | 976 | (19,424) | From Negative to Positive | | Basic and Diluted Loss Per Share | (0.008) HK$ | (0.01) HK$ | Loss Narrowed | [Unaudited Consolidated Statement of Financial Position](index=6&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%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 increased to HK$780.8 million, with significant growth in current assets and cash and cash equivalents, while net assets remained stable Consolidated Statement of Financial Position Overview | Metric | June 30, 2025 (HK$ Thousand) | Dec 31, 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 668,829 | 654,879 | +2.1% | | Total Current Assets | 111,951 | 101,427 | +10.4% | | Inventories | 2,946 | 6,299 | -53.2% | | Trade Receivables | 17,302 | 22,669 | -23.7% | | Cash and Cash Equivalents | 67,820 | 49,060 | +38.2% | | Total Assets | 780,780 | 756,306 | +3.2% | | Total Current Liabilities | 184,302 | 172,760 | +6.7% | | Bank Borrowings (Current) | 88,248 | 78,441 | +12.5% | | Total Non-current Liabilities | 334,140 | 322,184 | +3.7% | | Bank Borrowings (Non-current) | 256,393 | 252,221 | +1.6% | | Total Liabilities | 518,442 | 494,944 | +4.7% | | Net Assets | 262,338 | 261,362 | +0.4% | | Total Equity | 262,338 | 261,362 | +0.4% | [Unaudited Consolidated Statement of Changes in Equity](index=8&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%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, equity attributable to owners slightly decreased, but total equity remained stable due to an increase in non-controlling interests and a positive shift in exchange reserve Consolidated Statement of Changes in Equity Overview | Metric | June 30, 2025 (HK$ Thousand) | Dec 31, 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Equity Attributable to Owners of the Company | 217,921 | 218,604 | -0.3% | | Non-controlling Interests | 44,417 | 42,758 | +3.9% | | Total Equity | 262,338 | 261,362 | +0.4% | | Exchange Reserve | 8,450 | 785 | +976.4% | | Accumulated Losses | (623,738) | (615,390) | Loss Widened | [Unaudited Condensed Consolidated Statement of Cash Flows](index=9&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%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 significantly decreased, while investment activities shifted from cash outflow to inflow, leading to a notable increase in cash and cash equivalents at period-end Condensed Consolidated Statement of Cash Flows Overview | Metric | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 3,938 | 22,002 | -82.1% | | Net Cash Used in Investing Activities | 8,300 | (27,134) | From Outflow to Inflow | | Net Cash Generated from Financing Activities | 5,193 | 16,090 | -67.7% | | Net Increase in Cash and Cash Equivalents | 17,431 | 10,958 | +59.1% | | Cash and Cash Equivalents at End of Period | 67,820 | 41,535 | +63.3% | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%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) These notes provide detailed information on the group's accounting policies, revenue breakdown, expenses, and financial position, supporting the unaudited condensed consolidated financial statements [1. Basis of Preparation and Significant Accounting Policies](index=10&type=section&id=1.%20Basis%20of%20Preparation%20and%20Significant%20Accounting%20Policies) The group primarily engages in natural gas transportation and distribution, heat and biomass gasification product sales, and property investment in China, with interim financial statements prepared under HKFRS and new standards having no material impact - The Company's principal business is investment holding, with the Group primarily engaged in the transportation and distribution of natural gas, sales of heat and biomass gasification related products, and property investment in China[11](index=11&type=chunk) - These condensed consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, adopting several new standards effective January 1, 2025, which have **no material impact** on current or prior period results and financial position[11](index=11&type=chunk)[12](index=12&type=chunk)[13](index=13&type=chunk) [2. Revenue Analysis](index=11&type=section&id=2.%20Revenue) For the six months ended June 30, 2025, total group revenue was HK$111.9 million, primarily from natural gas sales and distribution (HK$81.837 million) and heat and biomass gasification product sales (HK$15.4 million), with significant growth in natural gas transportation services revenue Revenue Source Analysis | Revenue Source | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Sales and Distribution of Natural Gas | 81,837 | 65,937 | +24.1% | | Sales of Heat and Biomass Gasification Related Products | 15,400 | 13,652 | +12.8% | | Natural Gas Transportation Services | 7,463 | 1,004 | +643.3% | | Gross Rental Income | 7,220 | 8,120 | -11.1% | | Total Revenue | 111,920 | 88,713 | +26.1% | [3. Other Income, Gains and Losses](index=12&type=section&id=3.%20Other%20Income%2C%20Gains%20and%20Losses) For the six months ended June 30, 2025, total other income and gains decreased to HK$1.254 million, mainly due to reduced miscellaneous and bank interest income, and fair value losses on trading investments Other Income, Gains and Losses | Item | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Bank Interest Income | 43 | 108 | -60.2% | | Miscellaneous Income | 1,228 | 1,694 | -27.5% | | Fair Value (Loss)/Gain on Financial Assets at FVTPL | (17) | 48 | From Gain to Loss | | Total | 1,254 | 1,850 | -32.2% | [4. Finance Costs](index=12&type=section&id=4.%20Finance%20Costs) For the six months ended June 30, 2025, group finance costs significantly increased by 73% to HK$8.829 million, primarily due to a substantial rise in interest on bank and other borrowings Components of Finance Costs | Item | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Interest on Bank and Other Borrowings | 6,034 | 2,462 | +145.1% | | Interest on Loan from a Substantial Shareholder | 2,625 | 2,490 | +5.4% | | Interest on Lease Liabilities | 170 | 152 | +11.8% | | Total | 8,829 | 5,104 | +73.0% | [5. Loss Before Income Tax](index=13&type=section&id=5.%20Loss%20Before%20Income%20Tax) For the six months ended June 30, 2025, the group's loss before income tax was after deducting various expenses including depreciation, short-term lease expenses, and property management fees, with depreciation increasing Major Expense Items | Item | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Depreciation of Property, Plant and Equipment | 9,670 | 8,253 | +17.2% | | Short-term Lease Expenses | 270 | 372 | -27.4% | | Property Management Fees for Investment Properties | 1,638 | 1,443 | +13.5% | | Entertainment and Travel Expenses | 1,761 | 1,493 | +17.9% | | Research and Development Expenses | 1,063 | 1,130 | -6.0% | [6. Income Tax](index=14&type=section&id=6.%20Income%20Tax) For the six months ended June 30, 2025, total income tax for the period was nil as Hong Kong subsidiaries generated no assessable profits, while Chinese subsidiaries are subject to a 25% corporate income tax rate - Total income tax for the period was **nil**, as Hong Kong subsidiaries generated no assessable profits[18](index=18&type=chunk) - The Company's PRC subsidiaries are subject to a uniform **25% corporate income tax rate**[18](index=18&type=chunk) [7. Dividends Policy](index=14&type=section&id=7.%20Dividends) The Board recommended no interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board recommended **no interim dividend** for the six months ended June 30, 2025[19](index=19&type=chunk) [8. Loss Per Share](index=15&type=section&id=8.%20Loss%20Per%20Share) For the six months ended June 30, 2025, basic and diluted loss per share attributable to owners was HK$0.008, narrowing from HK$0.01 in the prior year, with basic and diluted losses being identical due to share option exercise prices Loss Per Share Data | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Loss for the Period Attributable to Owners of the Company (HK$ Thousand) | (8,348) | (10,740) | | Weighted Average Number of Ordinary Shares in Issue (Thousand Shares) | 1,023,987 | 1,023,987 | | Basic and Diluted Loss Per Share | (0.008) HK$ | (0.01) HK$ | - Basic and diluted loss per share were **identical** for the six months ended June 30, 2025 and 2024, as the exercise price of share options exceeded the average market price[23](index=23&type=chunk) [9. Reportable Segment Results](index=16&type=section&id=9.%20Reportable%20Segments) The group operates four segments: natural gas sales and distribution, heat and biomass gasification product sales, natural gas transportation services, and property investment, with natural gas transportation services showing significant revenue growth and all segments achieving profit in H1 2025 H1 2025 Segment Revenue and Profit | Segment | Revenue from External Customers (HK$ Thousand) | Reportable Segment Profit (HK$ Thousand) | | :--- | :--- | :--- | | Sales and Distribution of Natural Gas | 81,837 | 5,382 | | Sales of Heat and Biomass Gasification Related Products | 15,400 | 35 | | Natural Gas Transportation Services | 7,463 | 1,265 | | Property Investment | 7,220 | 1,956 | | Total | 111,920 | 8,638 | H1 2024 Segment Revenue and Profit | Segment | Revenue from External Customers (HK$ Thousand) | Reportable Segment Profit/(Loss) (HK$ Thousand) | | :--- | :--- | :--- | | Sales and Distribution of Natural Gas | 65,937 | 1,169 | | Sales of Heat and Biomass Gasification Related Products | 13,652 | (2,531) | | Natural Gas Transportation Services | 1,004 | (45) | | Property Investment | 8,120 | 2,186 | | Total | 88,713 | 779 | - In H1 2025, natural gas transportation services revenue **increased by 643.3% year-on-year**, with all reportable segments achieving profit, reversing the losses in heat and biomass gasification product sales and natural gas transportation services segments in H1 2024[24](index=24&type=chunk)[25](index=25&type=chunk) [10. Trade Receivables](index=18&type=section&id=10.%20Trade%20Receivables) As of June 30, 2025, net trade receivables decreased to HK$17.302 million from year-end 2024, with a slight increase in impairment provisions, and the group maintains strict credit control with varying credit terms across businesses Trade Receivables Overview | Metric | June 30, 2025 (HK$ Thousand) | Dec 31, 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Trade Receivables | 23,301 | 27,240 | -14.4% | | Less: Impairment Provision | (5,999) | (5,826) | +3.0% | | Net Trade Receivables | 17,302 | 21,414 | -19.2% | | Bills Receivable | – | 1,255 | -100% | | Total | 17,302 | 22,669 | -23.7% | Ageing Analysis of Trade Receivables (Net of Impairment Losses) | Ageing | June 30, 2025 (HK$ Thousand) | Dec 31, 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Within 30 days | 8,908 | 21,899 | -59.3% | | Over 90 days | 8,263 | 578 | +1330.0% | - The Group grants credit terms of **three and five working days** after invoice date for biomass gasification products and natural gas sales respectively, **no credit terms** for heat and natural gas transportation services, and property investment tenants are required to pay rent in advance[28](index=28&type=chunk) [11. Trade Payables](index=20&type=section&id=11.%20Trade%20Payables) As of June 30, 2025, total trade payables slightly increased to HK$11.487 million from year-end 2024, with a significant rise in payables over 90 days Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (HK$ Thousand) | Dec 31, 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Within 30 days | 3,878 | 8,174 | -52.6% | | Over 90 days | 6,713 | 2,249 | +198.5% | | Total | 11,487 | 11,129 | +3.2% | [12. Bank Borrowings and Loan Financing](index=20&type=section&id=12.%20Bank%20Borrowings%20and%20Loan%20Financing) As of June 30, 2025, total bank borrowings increased to HK$344.6 million, primarily secured term loans, with an effective interest rate of 3.762% per annum, and various assets and guarantees serving as collateral Bank Borrowings Overview | Category | June 30, 2025 (HK$ Thousand) | Dec 31, 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Current Bank Borrowings | 88,248 | 78,441 | +12.5% | | Non-current Bank Borrowings | 256,393 | 252,221 | +1.6% | | Total | 344,641 | 330,662 | +4.2% | - As of June 30, 2025, the effective interest rate for interest-bearing borrowings was **3.762% per annum** (2024: 4.113% per annum)[32](index=32&type=chunk) - Bank loans are secured by certain investment properties, property, plant and equipment, corporate guarantees from subsidiaries and non-controlling shareholders, independent third-party corporate guarantees, a legal charge from Ms. Ma Zheng (a substantial shareholder and director), and personal guarantees from Mr. Wei Buti (a director of a subsidiary) and his spouse[35](index=35&type=chunk) [13. Share Capital Structure](index=22&type=section&id=13.%20Share%20Capital) As of June 30, 2025, the company's authorized share capital was HK$120 million, with issued and fully paid share capital of HK$63.999 million, comprising 1,023,987,439 ordinary shares of HK$0.0625 each, consistent with year-end 2024 Share Capital Overview | Category | Number of Shares (Thousand Shares) | Amount (HK$ Thousand) | | :--- | :--- | :--- | | Authorized Share Capital (HK$0.0625 par value per share) | 1,920,000 | 120,000 | | Issued and Fully Paid Share Capital (HK$0.0625 par value per share) | 1,023,987 | 63,999 | [14. Operating Leases (as Lessor)](index=22&type=section&id=14.%20Operating%20Leases) As of June 30, 2025, the group's total undiscounted lease payments receivable as lessor for future periods decreased to HK$45.938 million, mainly due to reductions in receivables within one year and over five years Undiscounted Lease Payments Receivable | Period | June 30, 2025 (HK$ Thousand) | Dec 31, 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Within one year | 10,189 | 12,292 | -17.1% | | Over five years | 9,650 | 12,411 | -22.3% | | Total | 45,938 | 63,751 | -27.9% | [15. Capital Commitments](index=23&type=section&id=15.%20Capital%20Commitments) As of June 30, 2025, the group's contracted but unprovided capital commitments for the acquisition of property, plant and equipment significantly increased to HK$23.058 million from year-end 2024 Capital Commitments Overview | Item | June 30, 2025 (HK$ Thousand) | Dec 31, 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Contracted but not provided for: Acquisition of property, plant and equipment | 23,058 | 13,837 | +66.6% | [Management Discussion and Analysis](index=24&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the group's operational and financial performance, economic context, and strategic outlook, highlighting key business segments and future plans [Business Review and Future Outlook](index=24&type=section&id=Business%20Review%20and%20Future%20Outlook) The group's H1 2025 revenue grew 26.1%, driven by Yichang natural gas operations and increased natural gas trading; despite global economic challenges, domestic demand and natural gas essentiality mitigated impacts, with natural gas as a core growth engine [Financial Performance](index=24&type=section&id=Financial%20Performance) For the six months ended June 30, 2025, the group's total revenue increased by 26.1% year-on-year, primarily driven by the full commencement of Yichang natural gas operations and increased natural gas trading - For the six months ended June 30, 2025, the Group's total revenue **increased by 26.1%** compared to the same period in 2024[39](index=39&type=chunk) - The increase in revenue primarily stemmed from the **full commencement of Yichang natural gas operations** and increased natural gas trading during the same period[39](index=39&type=chunk) [Economic Overview](index=24&type=section&id=Economic%20Overview) In H1 2025, the global economy showed differentiated development with moderate US growth and weak Eurozone activity, while China's GDP grew 4.8% supported by manufacturing and clean energy, despite real estate and trade tensions - In H1 2025, the global economy exhibited **differentiated development trends and persistent challenges**, with the US maintaining moderate growth and Eurozone economic activity remaining weak[40](index=40&type=chunk) - China's GDP grew by approximately **4.8% year-on-year** in H1 2025, supported by manufacturing output and clean energy investment, but faced headwinds from a sluggish real estate market and slow recovery in private consumption[41](index=41&type=chunk) [Natural Gas Business](index=25&type=section&id=Natural%20Gas%20Business) The natural gas business benefits from China's accelerated energy transition, driving demand for LNG and pipeline gas, with ongoing "coal-to-gas" policies providing steady revenue and policy dividends - The Group's natural gas business benefits from China's accelerated energy transition, with **increased demand for LNG and pipeline natural gas** driving steady revenue[42](index=42&type=chunk) - Government's "coal-to-gas" policy continues to advance in power generation and heating sectors, creating **policy dividends** and reducing geopolitical volatility impacts[42](index=42&type=chunk) [Biomass Gasification Heating Business](index=25&type=section&id=Biomass%20Gasification%20Heating%20Business) The biomass gasification heating business in Huaining County, Anhui Province, performed stably in 2025, with expectations for full operation, substantial revenue generation, and achieving break-even in the near future - The biomass gasification heating business in Huaining County, Anhui Province, performed **stably in 2025**[43](index=43&type=chunk) - This segment is expected to achieve **full operation and generate substantial revenue** in the future, and is projected to reach **break-even** in the near future[43](index=43&type=chunk) [Property Investment Business](index=25&type=section&id=Property%20Investment%20Business) Yichang's property investment business continued to provide stable cash inflow in 2025, and despite a slight decline in rental income, it remains supported by local government development measures and is expected to be a key revenue contributor - Yichang's property investment business continued to provide **stable cash inflow** for the Group in 2025[44](index=44&type=chunk) - Although rental income slightly decreased due to overall real estate market performance, the sector remains **supported by Yichang municipal government development measures**[44](index=44&type=chunk) [Continuing Connected Transactions](index=25&type=section&id=Continuing%20Connected%20Transactions) The group's indirect non-wholly owned subsidiary entered a three-year natural gas transportation agreement with Yiling Zhongji Thermal Power Co., Ltd., with transportation fees comparable to market rates and deemed fair and reasonable - Yichang Zhongji Natural Gas Utilization Co., Ltd., an indirect non-wholly owned subsidiary of the Company, entered into a **three-year natural gas transportation agreement** with Yichang Yiling Zhongji Thermal Power Co., Ltd. to provide natural gas transportation services[45](index=45&type=chunk) - Yiling Zhongji Thermal Power is legally owned **90% by Beijing Jingneng Clean Energy Power Co., Ltd.** and **10% by Zhongji Energy (Shenzhen) Co., Ltd.**, an indirect wholly-owned subsidiary of the Company[46](index=46&type=chunk) - Transportation fees are subject to annual review and determination at the beginning of each year, with an initial fee of **RMB0.298 (approximately HK$0.325) per cubic meter of natural gas**[46](index=46&type=chunk) [Financial Review](index=27&type=section&id=Financial%20Review) For the six months ended June 30, 2025, total group revenue increased by 26.1% to HK$111.9 million, loss before income tax narrowed to HK$7.968 million, and loss attributable to owners narrowed to HK$8.348 million, primarily due to increased revenue and gross profit Key Financial Performance Data | Metric | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 111,920 | 88,713 | +26.1% | | Unaudited Loss Before Income Tax | (7,968) | (11,223) | -29.0% | | Loss Attributable to Owners of the Company | (8,348) | (10,740) | -22.3% | - The reduction in loss compared to the same period last year was primarily due to the **increase in the Group's revenue and gross profit** in 2025[47](index=47&type=chunk) - The Board will continue to implement **stringent cost control measures**, maintain a lean and efficient workforce structure, and prudently utilize the Group's corporate resources to create shareholder value[47](index=47&type=chunk) [Business Outlook and Strategic Focus](index=27&type=section&id=Business%20Outlook%20and%20Strategic%20Focus) Despite global economic challenges like geopolitical risks and high interest rates, the group's business, relying on domestic demand and essential natural gas, is less directly impacted, and the Board will pursue prudent management and investment opportunities for long-term value - The global economy showed signs of stability in 2025, but **geopolitical risks, tariffs, and a high-interest rate environment** still require attention[48](index=48&type=chunk) - The Group's businesses, particularly natural gas transportation and distribution and property investment, are **less directly and materially affected by the global economy** due to their reliance on domestic demand and the essential nature of natural gas[48](index=48&type=chunk) - The Board and management are committed to adopting a **prudent and cautious approach** to managing the Group's operations and actively exploring all potential investment opportunities to enhance the Company's long-term value and ensure sustainable growth[48](index=48&type=chunk) [Liquidity and Financial Resources](index=27&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the directors anticipate the group possesses sufficient financial resources to meet its ongoing operations and future development needs - As of June 30, 2025, the directors expect the Group to have **sufficient financial resources** to meet its ongoing operations and future development needs[49](index=49&type=chunk) [Fundraising Activities](index=28&type=section&id=Fundraising%20Activities) The company did not undertake any fundraising activities during the review period - Except as disclosed above, the Company **did not undertake any fundraising activities** during the review period[50](index=50&type=chunk) [Employee Information](index=28&type=section&id=Employee%20Information) As of June 30, 2025, the group had 159 full-time employees (9 in Hong Kong, 150 in China), with total employee remuneration of approximately HK$11.741 million for the six months, determined by performance, experience, and market practice - As of June 30, 2025, the Group had **9 full-time employees in Hong Kong and 150 in China**[51](index=51&type=chunk) - For the six months ended June 30, 2025, total employee remuneration (including directors' emoluments) was approximately **HK$11.741 million**[51](index=51&type=chunk) [Share Capital Structure](index=28&type=section&id=Share%20Capital%20Structure) As of June 30, 2025, the company's issued share capital consisted of 1,023,987,439 ordinary shares of HK$0.0625 each, listed on GEM of the Stock Exchange - As of June 30, 2025, the Company's issued share capital comprised **1,023,987,439 ordinary shares of HK$0.0625 each**[52](index=52&type=chunk) [Material Investments](index=28&type=section&id=Material%20Investments) Apart from disclosed matters, the group made no other material investments during the review period - Except as disclosed above, the Group **made no other material investments** during the review period[53](index=53&type=chunk) [Material Acquisitions and Disposals of Subsidiaries and Associates/Future Material Investment Plans](index=28&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%20and%20Associates%2FFuture%20Material%20Investment%20Plans) For the six months ended June 30, 2025, the group did not undertake any material acquisitions or disposals of subsidiaries and associates - For the six months ended June 30, 2025, the Group **made no material acquisitions or disposals** of subsidiaries and associates[54](index=54&type=chunk) [Segment Information](index=28&type=section&id=Segment%20Information) Detailed segment information is provided in Note 9 to the unaudited condensed consolidated financial statements and further elaborated in the "Business Review and Future Outlook" section - Detailed segment information is available in **Note 9** under "Notes to the Unaudited Condensed Consolidated Financial Statements" and further elaborated in the "Business Review and Future Outlook" section[55](index=55&type=chunk) [Pledge of Group Assets and Contingent Liabilities](index=28&type=section&id=Pledge%20of%20Group%20Assets%20and%20Contingent%20Liabilities) As of June 30, 2025, certain group investment properties, land, and buildings were pledged as collateral for bank borrowings, with no material contingent liabilities - As of June 30, 2025, certain of the Group's investment properties, land, and buildings were **pledged as collateral for the Group's bank borrowings**[56](index=56&type=chunk) - The Group **had no material contingent liabilities**[56](index=56&type=chunk) [Capital Gearing Ratio](index=29&type=section&id=Capital%20Gearing%20Ratio) As of June 30, 2025, the group had current assets of HK$111.9 million, current liabilities of HK$184.3 million, total external borrowings of HK$344.6 million, and was in a net asset position with a capital gearing ratio of approximately 158% Capital Gearing Ratio Overview | Metric | June 30, 2025 (HK$ Thousand) | | :--- | :--- | | Current Assets | 111,951 | | Current Liabilities | 184,302 | | External Borrowings | 344,641 | | Equity Attributable to Owners of the Company | 217,921 | | Capital Gearing Ratio (Borrowings to Equity Attributable to Owners of the Company) | 158% | - The Group was in a **net asset position** as of June 30, 2025[57](index=57&type=chunk) [Foreign Exchange Fluctuation Risk](index=29&type=section&id=Foreign%20Exchange%20Fluctuation%20Risk) The group's sales and payments are settled in HKD and RMB, with primary operations in China, resulting in minimal foreign exchange risk and no current hedging arrangements, though exchange rate movements will be monitored - The Group's sales and payments are settled in **HKD and RMB**, with operations primarily conducted in China[58](index=58&type=chunk) - As the Group operates in China without import/export business, **foreign exchange risk is minimal**, and no hedging or other measures are currently in place for foreign currency risk[58](index=58&type=chunk) [Directors' and Chief Executive's Interests and Short Positions](index=30&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20or%20any%20Associated%20Corporation) This section details the long and short positions held by the company's directors and chief executive in the shares, underlying shares, and debentures of the company or its associated corporations [Directors' and Chief Executive's Long Positions in Shares of the Company](index=30&type=section&id=Directors'%20and%20Chief%20Executive's%20Long%20Positions%20in%20Shares%20of%20the%20Company) As of June 30, 2025, Ms. Ma Zheng beneficially owned 36.52% of ordinary shares, and Mr. Yuan Geng beneficially owned 1.89%, with no other interests or short positions held by directors or the chief executive Directors' and Chief Executive's Long Positions in Ordinary Shares of the Company | Name of Director | Nature of Interest | Number of Ordinary Shares | Approximate Percentage of Interest | | :--- | :--- | :--- | :--- | | Ms. Ma Zheng | Beneficial Owner | 373,951,632 | 36.52% | | Mr. Yuan Geng | Beneficial Owner | 19,320,633 | 1.89% | - Save as disclosed, as of June 30, 2025, none of the Company's directors and chief executive held any other interests or short positions in the shares, underlying shares, or debentures of the Company or its associated corporations[60](index=60&type=chunk) [Share Option Scheme](index=31&type=section&id=Share%20Option%20Scheme) This section outlines the company's share option scheme, including its purpose, eligible participants, terms, and the status of options granted or exercised during the period [Details of Share Option Scheme](index=31&type=section&id=Details%20of%20Share%20Option%20Scheme) The company's share option scheme, approved by shareholders on May 17, 2022, is valid for 10 years to reward contributors, with no options granted or exercised during the review period, and no outstanding options as of June 30, 2025 - The Share Option Scheme was **approved by shareholders on May 17, 2022**, and is valid and effective for a period of 10 years from the adoption date[61](index=61&type=chunk) - Eligible participants include **full-time or part-time employees (including directors)** and any suppliers, consultants, agents, and advisors whom the Board reasonably believes have contributed or can contribute to the Group[61](index=61&type=chunk) - The total number of shares that may be issued upon exercise of options shall **not exceed 10% of the Company's total issued shares** at the adoption date, unless the 10% scheme mandate limit is refreshed with renewed shareholder approval[63](index=63&type=chunk) - The Company **did not grant or exercise any share options** during the review period, and there were no outstanding share options as of June 30, 2025[64](index=64&type=chunk) [Substantial Shareholders' Interests and Short Positions](index=33&type=section&id=Substantial%20Shareholders'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) This section details the long and short positions held by substantial shareholders (holding 5% or more) in the company's shares and underlying shares [Substantial Shareholders' Long Positions in Shares of the Company](index=33&type=section&id=Substantial%20Shareholders'%20Long%20Positions%20in%20Shares%20of%20the%20Company) As of June 30, 2025, several substantial shareholders held 5% or more of the company's shares, including Ms. Guo Xiucen and associated companies (12.10%), Mr. Ji Shengzhi and Ms. Lu Ke and associated companies (10.74%), and Vanke Co., Ltd. and associated companies (9.09%) Substantial Shareholders' Long Positions in Ordinary Shares of the Company | Name of Shareholder | Nature of Interest | Number of Shares Held | Approximate Percentage of Interest | | :--- | :--- | :--- | :--- | | Ms. Guo Xiucen | Corporate Interest | 123,867,678 | 12.10% | | Dongcheng Energy Investment Co., Ltd. | Corporate Interest | 123,867,678 | 12.10% | | Zhuohua Investment Co., Ltd. | Beneficial Owner | 123,867,678 | 12.10% | | Mr. Ji Shengzhi | Corporate Interest | 110,000,000 | 10.74% | | Ms. Lu Ke | Corporate Interest | 110,000,000 | 10.74% | | Superb Holdings Limited | Beneficial Owner | 110,000,000 | 10.74% | | Vanke Co., Ltd. | Corporate Interest | 93,089,767 | 9.09% | | Winmaxi (BVI) Company Limited | Beneficial Owner | 93,089,767 | 9.09% | - Zhuohua Investment Co., Ltd. is **80% beneficially owned by Dongcheng Energy Investment Co., Ltd.** (100% beneficially owned by Ms. Guo Xiucen)[68](index=68&type=chunk) - Superb Holdings Limited is **jointly owned by Ms. Lu Ke and Mr. Ji Shengzhi**[68](index=68&type=chunk) - Winmaxi (BVI) Company Limited is a **subsidiary of Vanke Co., Ltd.**[68](index=68&type=chunk) [Directors' Right to Acquire Shares](index=35&type=section&id=Directors'%20Right%20to%20Acquire%20Shares) This section confirms that no arrangements existed during the review period for directors or their associates to benefit from acquiring company shares or debentures [Directors' Right to Acquire Shares](index=35&type=section&id=Directors'%20Right%20to%20Acquire%20Shares) During the review period, neither the company nor any of its subsidiaries participated in any arrangements enabling directors, their spouses, or minor children to benefit from acquiring shares or debentures of the company or any other body corporate - At no time during the period did the Company or any of its subsidiaries participate in any arrangements enabling directors, their spouses, or children under 18 to **benefit from acquiring shares or debentures** of the Company or any other body corporate[69](index=69&type=chunk) [Competing and Conflict of Interests](index=35&type=section&id=Competing%20and%20Conflict%20of%20Interests) This section confirms that no directors, substantial shareholders, or their associates engaged in any business competing with the group or had other conflicts of interest during the review period [Competing and Conflict of Interests](index=35&type=section&id=Competing%20and%20Conflict%20of%20Interests) During the review period, no directors, substantial shareholders, major shareholders, or their respective associates engaged in any business that competed or might compete directly or indirectly with the group's business, nor were there any other conflicts of interest - During the review period, none of the directors, substantial shareholders, major shareholders, or their respective associates engaged in any business that constituted or might constitute **direct or indirect competition** with the Group's business, nor were there any other actual or potential **conflicts of interest** with the Group[70](index=70&type=chunk) [Audit Committee](index=35&type=section&id=Audit%20Committee) This section describes the audit committee's role in reviewing financial controls, internal monitoring, risk management, and external auditor independence, and its composition [Audit Committee Functions and Composition](index=35&type=section&id=Audit%20Committee%20Functions%20and%20Composition) The Audit Committee is responsible for reviewing the group's financial controls, internal monitoring, and risk management systems, assessing external auditor independence, and reviewing financial statements, comprising three independent non-executive directors who reviewed the interim results - The Audit Committee's primary roles and functions include reviewing the Group's **financial controls, internal monitoring, and risk management systems**, reviewing and monitoring the independence and objectivity of external auditors and the effectiveness of audit processes, and reviewing the Group's financial statements and quarterly, interim, and annual reports[71](index=71&type=chunk) - During the review period, the Audit Committee comprised **three independent non-executive directors** of the Company: Mr. Wen Zixun, Mr. Zhong Zhanqiang, and Mr. Song Renke[71](index=71&type=chunk) [Remuneration Committee](index=35&type=section&id=Remuneration%20Committee) This section details the remuneration committee's responsibilities for recommending and determining the remuneration policy and structure for executive directors and senior management, and its composition [Remuneration Committee Functions and Composition](index=35&type=section&id=Remuneration%20Committee%20Functions%20and%20Composition) The Remuneration Committee is responsible for considering and recommending the remuneration policy and structure for all executive directors and senior management, and for reviewing and determining their remuneration, comprising three independent non-executive directors during the review period - The Remuneration Committee's primary roles and functions include considering and recommending to the Board the **remuneration policy and structure for all executive directors and senior management**, and reviewing and determining their remuneration[72](index=72&type=chunk) - During the review period, the Remuneration Committee comprised **three independent non-executive directors** of the Company: Mr. Zhong Zhanqiang, Mr. Wen Zixun, and Mr. Song Renke[72](index=72&type=chunk) [Nomination Committee](index=36&type=section&id=Nomination%20Committee) This section outlines the nomination committee's responsibilities for reviewing board structure, assessing independent non-executive director independence, and recommending director appointments and re-appointments, along with its composition [Nomination Committee Functions and Composition](index=36&type=section&id=Nomination%20Committee%20Functions%20and%20Composition) The Nomination Committee is responsible for annually reviewing the board's structure, assessing the independence of independent non-executive directors, and recommending director appointments and re-appointments, comprising three independent non-executive directors during the review period - The Nomination Committee's primary roles and functions include reviewing the **Board's structure, size, and composition** at least once a year, assessing the independence of independent non-executive directors, and making recommendations to the Board regarding the appointment and re-appointment of directors[73](index=73&type=chunk) - During the review period, the Nomination Committee comprised **three independent non-executive directors** of the Company: Mr. Zhong Zhanqiang, Mr. Wen Zixun, and Mr. Song Renke[73](index=73&type=chunk) [Purchase, Sale or Redemption of Securities](index=36&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Securities) This section confirms that neither the company nor its subsidiaries engaged in any redemption, purchase, or sale of the company's ordinary shares during the review period [Securities Trading Activities](index=36&type=section&id=Securities%20Trading%20Activities) For the six months ended June 30, 2025, neither the company nor any of its subsidiaries redeemed, purchased, or sold any of the company's ordinary shares - The Company **did not redeem any of its ordinary shares** for the six months ended June 30, 2025[74](index=74&type=chunk) - Neither the Company nor any of its subsidiaries **purchased or sold any of the Company's ordinary shares** for the six months ended June 30, 2025[74](index=74&type=chunk) [Compliance with Corporate Governance Code](index=36&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) This section details the company's adherence to the GEM Listing Rules' Corporate Governance Code, noting a deviation regarding the separation of Chairman and CEO roles, but affirming accountability through the Audit Committee [Corporate Governance Code Compliance](index=36&type=section&id=Corporate%20Governance%20Code%20Compliance) The company complied with all principles and code provisions of the GEM Listing Rules' Corporate Governance Code during the review period, except for code provision C.2.1 (separation of Chairman and CEO roles), which is mitigated by an Audit Committee of independent non-executive directors - The Company applied and complied with all principles and code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the GEM Listing Rules for the six months ended June 30, 2025, **except for code provision C.2.1**[75](index=75&type=chunk) - The Company **does not have a "Chief Executive Officer" position**, and the Chairlady, Ms. Ma Zheng, also serves as a director of some of the Company's operating subsidiaries, which deviates from code provision C.2.1[75](index=75&type=chunk) - The Board considers this arrangement appropriate and believes it **does not compromise accountability and independent decision-making**, as the Company has an Audit Committee composed entirely of independent non-executive directors, which helps ensure Ms. Ma Zheng's accountability and independence[75](index=75&type=chunk) [Code of Conduct for Securities Transactions by Directors](index=37&type=section&id=Code%20of%20Conduct%20for%20Securities%20Transactions%20by%20Directors) This section confirms the company's adoption of a code of conduct for directors' securities transactions, which is no less exacting than GEM Listing Rules, and all directors' compliance during the review period [Directors' Securities Trading Code Compliance](index=37&type=section&id=Directors'%20Securities%20Trading%20Code%20Compliance) The company adopted a code of conduct for directors' securities transactions no less exacting than the GEM Listing Rules, and all directors confirmed compliance throughout the six months ended June 30, 2025 - The Company has adopted a code of conduct for directors' securities transactions that is **no less exacting than the required standard of dealings** set out in Rules 5.48 to 5.67 of the GEM Listing Rules[76](index=76&type=chunk) - Following specific enquiries with all directors, all directors confirmed their **compliance with the adopted required standard of dealings** and the code of conduct for directors' securities transactions throughout the six months ended June 30, 2025[76](index=76&type=chunk) [By Order of the Board](index=37&type=section&id=By%20Order%20of%20the%20Board) This section lists the composition of the Board of Directors as of the report date, including executive, non-executive, and independent non-executive directors [Board Composition](index=37&type=section&id=Board%20Composition) As of the report date, the Board comprised executive directors Ms. Ma Zheng and Mr. Yuan Geng, non-executive director Mr. Ji Jianghua, and independent non-executive directors Mr. Wen Zixun, Mr. Zhong Zhanqiang, and Mr. Song Renke - As of the date of this report, the Board comprised **executive directors Ms. Ma Zheng and Mr. Yuan Geng**, **non-executive director Mr. Ji Jianghua**, and **independent non-executive directors Mr. Wen Zixun, Mr. Zhong Zhanqiang, and Mr. Song Renke**[78](index=78&type=chunk)

[Interim Results Announcement](index=1&type=section&id=Interim%20Results%20Announcement) For the six months ended June 30, 2025, net profit attributable to owners of the company before revaluation and depreciation increased by 43% to HK$59.3 million, while the after-tax loss significantly narrowed [Performance Overview](index=1&type=section&id=Performance%20Overview) For the six months ended June 30, 2025, net profit attributable to owners of the company before revaluation and depreciation increased by 43% to HK$59.3 million, while the after-tax loss significantly narrowed Key Financial Indicators | Indicator | As of June 30, 2025 (HK$ thousands) | As of June 30, 2024 (HK$ thousands) | Change | | :--- | :--- | :--- | :--- | | Net profit attributable to owners of the company after tax and before revaluation and depreciation of land, property, and equipment | 59,295 | 41,562 | +43% | | Loss after tax and non-controlling interests | (15,198) | (32,360) | -53% (Loss narrowed) | [Interim Dividend](index=1&type=section&id=Interim%20Dividend) The Board does not recommend an interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board does not recommend an interim dividend for the six months ended June 30, 2025[5](index=5&type=chunk) [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) The Group's financial statements for the period show increased revenue and gross profit, a narrowed loss, and growth in total assets less current liabilities and total equity [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's total revenue increased to HK$256.6 million, gross profit significantly improved, and the loss for the period narrowed to HK$15.4 million from HK$32.5 million in the prior year Summary of Condensed Consolidated Statement of Profit or Loss | Indicator | As of June 30, 2025 (HK$ thousands) | As of June 30, 2024 (HK$ thousands) | | :--- | :--- | :--- | | Total Revenue | 256,643 | 243,969 | | Gross Profit | 34,036 | 19,722 | | Loss Before Tax | (8,731) | (29,483) | | Loss for the Period | (15,385) | (32,546) | | Basic Loss Per Share (HK cents) | (0.17) | (0.36) | [Condensed Consolidated Statement of Total Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Total%20Comprehensive%20Income) Total comprehensive income for the period turned from a loss of HK$47.2 million in the prior year to a gain of HK$93.5 million, primarily due to positive exchange differences from overseas operations Summary of Condensed Consolidated Statement of Total Comprehensive Income | Indicator | As of June 30, 2025 (HK$ thousands) | As of June 30, 2024 (HK$ thousands) | | :--- | :--- | :--- | | Loss for the Period | (15,385) | (32,546) | | Exchange differences arising from translation of overseas operations | 121,222 | (13,773) | | Total comprehensive income (expense) for the period | 93,545 | (47,227) | | Total comprehensive income (expense) attributable to owners of the company | 93,732 | (47,041) | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets less current liabilities increased to HK$4,332.5 million, net current liabilities decreased, and total equity grew to HK$4,230.5 million Summary of Condensed Consolidated Statement of Financial Position | Indicator | As of June 30, 2025 (HK$ thousands) | As of December 31, 2024 (HK$ thousands) | | :--- | :--- | :--- | | Non-current assets | 4,831,395 | 4,777,882 | | Current assets | 194,187 | 224,446 | | Current liabilities | 693,064 | 761,854 | | Net current liabilities | (498,877) | (537,408) | | Total assets less current liabilities | 4,332,518 | 4,240,474 | | Equity attributable to owners of the company | 4,224,058 | 4,130,326 | | Total equity | 4,230,507 | 4,136,962 | [Notes to the Condensed Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section details the basis of preparation, principal accounting policies, and specific breakdowns of revenue, segments, finance costs, income tax, loss, dividends, loss per share, and receivables/payables [1. Basis of Preparation](index=5&type=section&id=1.%20Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the applicable disclosure requirements of Appendix D2 to the Listing Rules of The Stock Exchange of Hong Kong Limited - Financial statements are prepared in accordance with HKAS 34 and Appendix D2 of the Listing Rules[9](index=9&type=chunk) - Financial information for the year ended December 31, 2024, has been delivered to the Companies Registry, with an unqualified auditor's report[9](index=9&type=chunk) [2. Principal Accounting Policies](index=5&type=section&id=2.%20Principal%20Accounting%20Policies) The financial statements are prepared on a historical cost basis, except for investment properties and certain financial instruments measured at fair value; amendments to HKFRS accounting standards were first applied this period with no significant impact on financial position or performance - Financial statements are prepared on a historical cost basis, with investment properties and some financial instruments measured at fair value[10](index=10&type=chunk) - Amendments to HKFRS accounting standards were first applied this period, with no significant impact on financial position or performance[12](index=12&type=chunk) [3. Revenue](index=6&type=section&id=3.%20Revenue) Total revenue primarily comprises hotel operations revenue of HK$231.2 million, property rental income of HK$25.4 million, and dividend income of HK$25 thousand Revenue Source Analysis | Revenue Source | As of June 30, 2025 (HK$ thousands) | As of June 30, 2024 (HK$ thousands) | | :--- | :--- | :--- | | Hotel Operations Revenue | 231,238 | 224,959 | | Property Rental Income | 25,380 | 19,010 | | Dividend Income | 25 | - | | **Total Revenue** | **256,643** | **243,969** | [4. Segment Information](index=7&type=section&id=4.%20Segment%20Information) The Group's operating and reportable segments include hotel services, property investment, and securities investment, with revenues of HK$231.2 million, HK$25.4 million, and HK$25 thousand, respectively - The chief operating decision maker is the Chairman of the Company, and segment information is used for resource allocation and performance assessment[14](index=14&type=chunk) - Operating segments include **8** hotel services, property investment, and securities investment[15](index=15&type=chunk) Segment Revenue and Results | Segment | Revenue as of June 30, 2025 (HK$ thousands) | Revenue as of June 30, 2024 (HK$ thousands) | Results as of June 30, 2025 (HK$ thousands) | Results as of June 30, 2024 (HK$ thousands) | | :--- | :--- | :--- | :--- | :--- | | Hotel Services | 231,238 | 224,959 | 8,631 | 712 | | Property Investment | 25,380 | 19,010 | 20,380 | 14,010 | | Securities Investment | 25 | - | 25 | - | [5. Finance Costs](index=8&type=section&id=5.%20Finance%20Costs) Total finance costs decreased to HK$17.2 million from HK$23.2 million in the prior year, primarily comprising interest on bank loans and amounts due to immediate holding company Analysis of Finance Costs | Interest Source | As of June 30, 2025 (HK$ thousands) | As of June 30, 2024 (HK$ thousands) | | :--- | :--- | :--- | | Bank Loans | 8,195 | 10,764 | | Amounts due to immediate holding company | 8,982 | 12,464 | | **Total Finance Costs** | **17,177** | **23,228** | [6. Income Tax Expense](index=9&type=section&id=6.%20Income%20Tax%20Expense) Income tax expense significantly increased to HK$6.7 million from HK$3.1 million in the prior year, primarily due to current taxation in Hong Kong and the UK Components of Income Tax Expense | Tax Source | As of June 30, 2025 (HK$ thousands) | As of June 30, 2024 (HK$ thousands) | | :--- | :--- | :--- | | Hong Kong current tax | 3,933 | 2,260 | | UK current tax | 4,231 | 2,459 | | Under-provision in prior years (Hong Kong) | 111 | - | | Deferred tax | (1,621) | (1,656) | | **Total Income Tax Expense** | **6,654** | **3,063** | - Hong Kong profits tax rate remains at **16.5%**, while China and UK profits tax rates are recognized based on the estimated weighted average annual income tax rate[18](index=18&type=chunk) [7. Loss for the Period](index=9&type=section&id=7.%20Loss%20for%20the%20Period) The loss for the period was HK$15.4 million, after deducting depreciation expenses of HK$69.1 million and including bank deposit interest income of HK$1.2 million Adjustments to Loss for the Period | Item | As of June 30, 2025 (HK$ thousands) | As of June 30, 2024 (HK$ thousands) | | :--- | :--- | :--- | | Depreciation of right-of-use assets | 384 | 381 | | Depreciation of property, plant and equipment | 69,109 | 68,541 | | Interest income from bank deposits | (1,230) | (2,718) | | Loss on disposal of property, plant and equipment | 12 | 741 | [8. Dividends](index=10&type=section&id=8.%20Dividends) For the six months ended June 30, 2025, the Board resolved not to declare or recommend an interim dividend, consistent with the prior year - The Board does not declare or recommend an interim dividend for the six months ended June 30, 2025[20](index=20&type=chunk) [9. Loss Per Share](index=10&type=section&id=9.%20Loss%20Per%20Share) Basic loss per share narrowed to 0.17 HK cents from 0.36 HK cents in the prior year, primarily due to a reduction in loss attributable to owners of the company Loss Per Share Calculation | Indicator | As of June 30, 2025 | As of June 30, 2024 | | :--- | :--- | :--- | | Loss for the period attributable to owners of the company (HK$ thousands) | 15,198 | 32,360 | | Shares in issue (shares) | 8,947,051,000 | 8,947,051,000 | | Basic loss per share (HK cents) | (0.17) | (0.36) | - No potential ordinary shares existed during the period or prior period, thus diluted loss per share is not presented[22](index=22&type=chunk) [10. Trade and Other Receivables](index=10&type=section&id=10.%20Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables decreased to HK$9.1 million from HK$11.1 million as of December 31, 2024 Components of Trade and Other Receivables | Item | As of June 30, 2025 (HK$ thousands) | As of December 31, 2024 (HK$ thousands) | | :--- | :--- | :--- | | Trade receivables (customer contracts) | 5,951 | 8,361 | | Other receivables | 3,121 | 2,776 | | **Total** | **9,072** | **11,137** | - The Group grants credit terms of **30 to 60 days** to hotel travel agents and certain customers[23](index=23&type=chunk) [11. Trade and Other Payables and Accruals](index=11&type=section&id=11.%20Trade%20and%20Other%20Payables%20and%20Accruals) As of June 30, 2025, total trade and other payables and accruals decreased to HK$39.7 million from HK$47.4 million as of December 31, 2024 Components of Trade and Other Payables and Accruals | Item | As of June 30, 2025 (HK$ thousands) | As of December 31, 2024 (HK$ thousands) | | :--- | :--- | :--- | | Trade payables | 4,324 | 5,031 | | Other payables and accruals | 35,361 | 42,385 | | **Total** | **39,685** | **47,416** | [Management Discussion and Analysis](index=12&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the Group's overall performance, interim dividend policy, detailed analysis of revenue, hotel performance, costs, financing, key business achievements, and future outlook [Overall Performance](index=12&type=section&id=Overall%20Performance) Net profit attributable to owners of the company before revaluation and depreciation increased by 43% to HK$59.3 million, driven by higher revenue and reduced hotel operating and finance costs - Net profit attributable to owners of the company after tax and before revaluation and depreciation of land, property, and equipment was **HK$59.3 million**, representing a **43% year-on-year increase**[25](index=25&type=chunk) - The overall increase in profit was primarily due to a **5% increase in revenue** and a reduction in hotel operating and finance costs[28](index=28&type=chunk) Segment Profit and Loss | Indicator | As of June 30, 2025 (HK$ thousands) | As of June 30, 2024 (HK$ thousands) | Change | | :--- | :--- | :--- | :--- | | Hotel Operations Profit | 8,631 | 712 | +1,112% | | Property Investment Profit | 20,380 | 14,010 | +45% | | Securities Investment Income | 25 | - | Not applicable | | Loss After Tax | (15,385) | (32,546) | -53% | [Interim Dividend Policy and Rationale](index=12&type=section&id=Interim%20Dividend%20Policy%20and%20Rationale) The Board does not recommend an interim dividend to ensure higher cash flow for challenging economic conditions, high operating and interest costs, and to retain cash for debt reduction and the London Wood Street Hotel renovation - Not distributing an interim dividend aims to ensure higher cash flow to cope with unstable hotel industry conditions[27](index=27&type=chunk) - Cash is retained to further reduce bank debt and shareholder loans[27](index=27&type=chunk) - Cash is retained for the renovation project of the London Wood Street Hotel[27](index=27&type=chunk) [Performance Analysis](index=13&type=section&id=Performance%20Analysis) This section analyzes the Group's revenue, hotel performance, and cost structure, highlighting key drivers and changes during the period [Revenue Analysis](index=13&type=section&id=Revenue%20Analysis) The Group's total revenue increased by 5% year-on-year to HK$258.3 million, driven by a 3% growth in hotel operations revenue and a 34% growth in investment property income Revenue Composition and Changes | Revenue Source | As of June 30, 2025 (HK$ thousands) | As of June 30, 2024 (HK$ thousands) | Change | Reason | | :--- | :--- | :--- | :--- | :--- | | Hotel Operations Revenue | 231,238 | 224,959 | +3% | Increased room rates | | Investment Property Income | 25,380 | 19,010 | +34% | Increased rental income from London Royal Scot Hotel | | Other Income | 1,640 | 2,182 | -25% | Not applicable | | **Total** | **258,258** | **246,151** | **+5%** | | [Hotel Performance](index=13&type=section&id=Hotel%20Performance) The Group operates seven hotels and leases one in London, with hotel operations revenue increasing by 3% and the annual rent for London Royal Scot Hotel successfully rising by 34% to £4.737 million - The Group currently owns **eight hotels**, operating seven and leasing one located in London[30](index=30&type=chunk) - Hotel operations revenue increased by **3%** to **HK$231.0 million**[30](index=30&type=chunk) - The annual rent for the London Royal Scot Hotel successfully increased by **34%** to **£4.737 million**[31](index=31&type=chunk) Average Room Occupancy Rate from January to June 2025 | Hotel Name | Average Room Occupancy Rate (%) | | :--- | :--- | | Ramada Hong Kong Harbour View | 98 | | Ramada Hong Kong Grand | 99 | | Best Western Plus Hotel Hong Kong | 97 | | Grand View Hotel Causeway Bay | 99 | | Best Western Plus Hotel Tsim Sha Tsui | 98 | | Grand View Hotel Bay | 98 | | Shanghai Grand View International Hotel | 88 | [Cost Analysis](index=14&type=section&id=Cost%20Analysis) Hotel services cost (operating cost) for the period was HK$151.9 million, a 2% year-on-year decrease; administrative expenses (excluding depreciation) were HK$21 million, and hotel property depreciation was HK$68.2 million Changes in Key Cost Items | Cost Type | As of June 30, 2025 (HK$ millions) | As of June 30, 2024 (HK$ millions) | Change | | :--- | :--- | :--- | :--- | | Hotel Services Cost (Operating Cost) | 151.9 | 154.6 | -2% | | Cost of Sales (Food & Beverage) | 2.1 | 1.6 | +31% | | Administrative Expenses (excluding depreciation) | 21.0 | 22.3 | -6% | | Hotel Property Depreciation | 68.2 | 68.0 | +0.2 | [Financing Activities](index=15&type=section&id=Financing%20Activities) The Group's total debt decreased by HK$64 million to HK$636 million, the gearing ratio fell to 15%, and finance costs decreased by 26% to HK$17.2 million due to lower interest rates Overall Debt Analysis | Debt Type | As of June 30, 2025 (HK$ millions) | As of December 31, 2024 (HK$ millions) | Change (HK$ millions) | | :--- | :--- | :--- | :--- | | Bank Loans | 301 | 345 | -44 | | Shareholder Loans | 335 | 355 | -20 | | **Total Debt** | **636** | **700** | **-64** | - The gearing ratio decreased from **17%** to **15%**[36](index=36&type=chunk) - Total finance costs were **HK$17.2 million**, a **26% year-on-year decrease**, primarily due to lower interest rates[37](index=37&type=chunk) - The Group's bank loans are primarily denominated in HKD and GBP with floating interest rates, exposing it to foreign exchange risk[38](index=38&type=chunk) [Key Business Achievements](index=16&type=section&id=Key%20Business%20Achievements) Overnight visitor arrivals to Hong Kong recovered but remain below pre-pandemic levels, with declining per capita spending by Chinese tourists. The Group's average hotel occupancy consistently exceeded 90%, total revenue grew by 5%, and the London Royal Scot Hotel's annual rent successfully increased by 34% - Approximately **11.3 million overnight visitors** arrived in Hong Kong, with **75%** being Chinese tourists, still below pre-pandemic levels[39](index=39&type=chunk) - Per capita spending by Chinese tourists remained below **HK$5,100**, lower than the pre-pandemic **HK$6,000**[39](index=39&type=chunk) - The Group's average hotel occupancy rate consistently exceeded **90%**[39](index=39&type=chunk) - The annual rent for the London Royal Scot Hotel successfully increased by **34%** to **£4.737 million**[40](index=40&type=chunk) - The London Wood Street Hotel has been approved for renovation into a luxury hotel with approximately **216 rooms**[40](index=40&type=chunk) [Outlook](index=16&type=section&id=Outlook) The Group holds eight hotels and a London renovation project; future hotel operations and rental income face challenges from a weak Chinese economy and expensive HKD against RMB, but the "multiple-entry visa" policy in major Chinese cities may offer encouragement, with management continuing efforts to increase revenue and control costs - The Group holds **eight revenue-generating hotels** (six in Hong Kong, one in Shanghai, one in London) and the London Wood Street Hotel renovation project[41](index=41&type=chunk) - A weak Chinese economy and an expensive HKD against RMB led more Chinese tourists to stay in the Greater Bay Area and visit Hong Kong as day-trippers[41](index=41&type=chunk) - The implementation of a "multiple-entry visa" policy in other major Chinese cities may offer encouragement for future prospects[41](index=41&type=chunk) - Management will continue efforts to increase revenue and control costs to address challenges[42](index=42&type=chunk) [Corporate Governance](index=17&type=section&id=Corporate%20Governance) This section outlines the company's compliance with corporate governance codes, the Model Code, audit committee review, and the composition of the Board of Directors [(a) Compliance with Corporate Governance Code](index=17&type=section&id=(a)%20Compliance%20with%20Corporate%20Governance%20Code) The company has complied with the Corporate Governance Code in Appendix C1 of the Listing Rules, with one deviation: the Chairman and Chief Executive Officer roles are combined and held by Mr. Cheng Kai Man, which the Board believes facilitates strong leadership, strategic execution, and cost savings - The company has complied with the Corporate Governance Code, but the combined roles of Chairman and Chief Executive Officer (held by Mr. Cheng Kai Man) constitute a deviation[44](index=44&type=chunk) - The Board believes the combined role facilitates strong leadership, strategic execution, and significant cost savings[44](index=44&type=chunk) [(b) Compliance with Model Code](index=17&type=section&id=(b)%20Compliance%20with%20Model%20Code) The company has adopted the Model Code set out in Appendix C3 of the Listing Rules, and all Directors confirmed compliance during the period - All Directors confirmed compliance with the Model Code set out in Appendix C3 of the Listing Rules during the period[45](index=45&type=chunk) [Review by Audit Committee](index=17&type=section&id=Review%20by%20Audit%20Committee) The Audit Committee has reviewed the Group's unaudited financial results for the six months ended June 30, 2025 - The Audit Committee has reviewed the Group's unaudited financial results for the six months ended June 30, 2025[46](index=46&type=chunk) [Board of Directors](index=17&type=section&id=Board%20of%20Directors) As of the announcement date, the Board of Directors comprises four executive directors (including the Chairman), one non-executive director, and three independent non-executive directors - The Board of Directors includes **four executive directors** (Mr. Cheng Kai Man as Chairman), **one non-executive director**, and **three independent non-executive directors**[48](index=48&type=chunk) [Other Information](index=16&type=section&id=Other%20Information) This section confirms that no listed securities of the company were purchased, sold, or redeemed during the period [Purchase, Sale or Redemption of Listed Securities](index=16&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Listed%20Securities) For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[43](index=43&type=chunk)

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，概不對因本公告全部或任何部份內容而產生或因依 賴該等內容而引致的任何損失承擔任何責任。 中國中煤能源股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：01898） 截至2025年6月30日止6個月之中期業績 財務摘要： 董事會宣佈本集團根據國際會計準則第34號「中期財務報告」編製的本集團截至 2025年6月30日止6個月的中期業績。本集團的中期業績未經審計，但已經本公司 核數師安永會計師事務所審閱。 1 • 2025年上半年本集團的收入為人民幣744.36億元，較2024年同期減少人民幣 185.48億元（即-19.9%）。 • 2025年上半年本公司股東應佔利潤為人民幣73.25億元，較2024年同期減少 人民幣33.70億元（即-31.5%）。 • 2025年上半年本公司每股基本盈利為人民幣0.55元，較2024年同期減少人民 幣0.26元。 • 2025年上半年息稅折舊攤銷前利潤為人民幣168.57億元，較2024年同期減少 人民幣62.50億元（即-27.0%） ...

Financial Highlights [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) Binhai Investment Company Limited's unaudited results for the six months ended June 30, 2025, show a 17% YoY revenue decline to HK$2,931,118 thousand, while profit for the period grew 3% Key Financial Summary for H1 2025 | Indicator | June 30, 2025 (HK$ thousands) | June 30, 2024 (HK$ thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 2,931,118 | 3,530,446 | -17% | | Gross Profit | 310,051 | 343,366 | -10% | | Profit for the Period | 176,506 | 171,176 | 3% | | Basic Earnings Per Share Attributable to Owners of the Company | 12.54 cents | 12.41 cents | 1% | | Indicator | June 30, 2025 (HK$ thousands) | December 31, 2024 (HK$ thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 7,997,546 | 7,749,788 | 3% | | Total Equity | 2,400,459 | 2,304,146 | 4% | | Total Liabilities | 5,597,087 | 5,445,642 | 3% | Condensed Consolidated Interim Financial Statements [Condensed Consolidated Interim Statement of Profit or Loss](index=2&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, revenue decreased by 17% YoY, but profit for the period increased by 3% due to a significant rise in other net gains and lower finance costs Key Data from Condensed Consolidated Interim Statement of Profit or Loss | Indicator | June 30, 2025 (HK$ thousands) | June 30, 2024 (HK$ thousands) | Change | | :--- | :--- | :--- | :--- | | Revenue | 2,931,118 | 3,530,446 | -17% | | Cost of sales and services | (2,621,067) | (3,187,080) | -17.7% | | Gross Profit | 310,051 | 343,366 | -10% | | Other income | 13,016 | 25,568 | -49.1% | | Administrative expenses | (90,086) | (81,603) | +10.4% | | R&D expenses | (50,447) | (57,506) | -12.3% | | Other net gains | 64,072 | 4,024 | +1492.3% | | Operating Profit | 257,759 | 255,145 | +1.0% | | Net finance costs | (43,419) | (59,450) | -26.9% | | Profit for the period | 176,506 | 171,176 | +3.1% | | Profit attributable to owners of the Company | 172,815 | 167,924 | +2.9% | | Basic earnings per share | 12.54 cents | 12.41 cents | +1.0% | [Condensed Consolidated Interim Statement of Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, total comprehensive income for the period surged by 119.9% YoY to HK$244,612 thousand, driven by a turnaround in other comprehensive income Key Data from Condensed Consolidated Interim Statement of Comprehensive Income | Indicator | June 30, 2025 (HK$ thousands) | June 30, 2024 (HK$ thousands) | Change | | :--- | :--- | :--- | :--- | | Profit for the period | 176,506 | 171,176 | +3.1% | | Other comprehensive income/(loss) | 68,106 | (59,960) | From loss to gain | | Total comprehensive income for the period | 244,612 | 111,216 | +119.9% | | Total comprehensive income for the period attributable to owners of the Company | 239,096 | 109,640 | +118.1% | [Condensed Consolidated Interim Statement of Financial Position](index=5&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets grew to HK$7,997,546 thousand, while current liabilities exceeded current assets by approximately HK$2,536,894 thousand Key Data from Condensed Consolidated Interim Statement of Financial Position | Indicator | June 30, 2025 (HK$ thousands) | December 31, 2024 (HK$ thousands) | Change | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Property, plant and equipment | 6,304,670 | 5,985,500 | +5.3% | | Investments in associates and joint ventures | 316,016 | 302,781 | +4.4% | | Total current assets | 1,056,238 | 1,121,309 | -5.8% | | **Total Assets** | **7,997,546** | **7,749,788** | **+3.2%** | | **Equity and Liabilities** | | | | | Equity attributable to owners of the Company | 2,329,105 | 2,221,739 | +4.8% | | **Total Equity** | **2,400,459** | **2,304,146** | **+4.2%** | | Total non-current liabilities | 2,003,955 | 2,422,971 | -17.3% | | Total current liabilities | 3,593,132 | 3,022,671 | +18.9% | | **Total Liabilities** | **5,597,087** | **5,445,642** | **+2.8%** | - As of June 30, 2025, the Group's **current liabilities exceeded its current assets by approximately HK$2,536,894 thousand**, but management believes it has sufficient financial resources to support its operations and meet its financial obligations for the next 12 months[18](index=18&type=chunk) [Condensed Consolidated Interim Statement of Changes in Equity](index=7&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, total equity increased to HK$2,400,459 thousand, positively impacted by profit and other comprehensive income, alongside dividend payments and share repurchases Key Data from Condensed Consolidated Interim Statement of Changes in Equity | Indicator | January 1, 2025 (HK$ thousands) | June 30, 2025 (HK$ thousands) | Change | | :--- | :--- | :--- | :--- | | Equity attributable to owners of the Company | 2,221,739 | 2,329,105 | +4.8% | | Non-controlling interests | 82,407 | 71,354 | -13.4% | | **Total Equity** | **2,304,146** | **2,400,459** | **+4.2%** | | Profit for the period (attributable to owners of the Company) | - | 172,815 | - | | Other comprehensive income for the period (attributable to owners of the Company) | - | 66,281 | - | | Approved prior year's dividend | - | (104,428) | - | | Repurchase of treasury shares | - | (3,424) | - | | Approved redemption of preference shares | - | (24,033) | - | [Condensed Interim Consolidated Statement of Cash Flows](index=9&type=section&id=Condensed%20Interim%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operating activities decreased by 43.3% YoY, while financing activities shifted from a net outflow to a net inflow of HK$89,906 thousand Key Data from Condensed Interim Consolidated Statement of Cash Flows | Indicator | June 30, 2025 (HK$ thousands) | June 30, 2024 (HK$ thousands) | Change | | :--- | :--- | :--- | :--- | | Net cash inflow from operating activities | 37,619 | 66,306 | -43.3% | | Net cash outflow from investing activities | (205,469) | (138,207) | +48.7% | | Net cash inflow/(outflow) from financing activities | 89,906 | (48,378) | From outflow to inflow | | Net decrease in cash and cash equivalents | (77,944) | (120,279) | -35.2% | | Cash and cash equivalents at end of period | 325,767 | 662,189 | -50.8% | Notes to the Condensed Consolidated Interim Financial Statements [General Information](index=11&type=section&id=General%20Information) Binhai Investment Company Limited is incorporated in Bermuda with its principal place of business in Hong Kong, and its ordinary shares are listed on the Hong Kong Stock Exchange - The Company is incorporated in Bermuda, with its ordinary shares listed on the Hong Kong Stock Exchange and its principal place of business in Hong Kong[14](index=14&type=chunk) - TEDA HK (an indirect subsidiary of TEDA) holds approximately **42.18%** of the Company's total issued ordinary shares, making it the largest ultimate shareholder; Great Wall Gas Investment (Hong Kong) Limited (a wholly-owned subsidiary of Sinopec) holds approximately **29.52%**, making it the second-largest ultimate shareholder[15](index=15&type=chunk) - The Group's condensed consolidated interim financial statements are presented in Hong Kong dollars, while the functional currency of the Company and its subsidiaries is Renminbi[15](index=15&type=chunk) [Basis of Preparation](index=11&type=section&id=Basis%20of%20Preparation) The financial statements are prepared under HKAS 34 and HKEX Listing Rules, using the historical cost basis, with the going concern basis deemed appropriate despite net current liabilities - The financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and Appendix D2 of the Hong Kong Stock Exchange Listing Rules, using the historical cost basis[16](index=16&type=chunk)[17](index=17&type=chunk) - As of June 30, 2025, the Group's **current liabilities exceeded its current assets by approximately HK$2,536,894 thousand**, but management considers the going concern basis appropriate based on profitability and secured loan facilities of approximately HK$1,151,739 thousand[18](index=18&type=chunk) [Accounting Policies](index=12&type=section&id=Accounting%20Policies) The accounting policies adopted are consistent with the 2024 annual financial statements, with the adoption of amendments to HKAS 21 having no significant impact on the Group - The accounting policies are consistent with the 2024 annual consolidated financial statements, and the adoption of amendments to HKAS 21 "Lack of Exchangeability" had no significant impact[19](index=19&type=chunk)[20](index=20&type=chunk) [Estimates](index=12&type=section&id=Estimates) The preparation of interim financial information involves management judgments and estimates, with the sources of uncertainty remaining consistent with the 2024 annual financial statements - The preparation of interim financial information involves management judgments, estimates, and assumptions, with the sources of significant estimation uncertainty remaining the same as in the 2024 annual consolidated financial statements[21](index=21&type=chunk) [Financial Risk Management and Financial Instruments](index=13&type=section&id=Financial%20Risk%20Management%20and%20Financial%20Instruments) The Group is exposed to market, credit, and liquidity risks, with no significant changes in risk management policies since year-end and no use of derivative financial instruments for hedging - The Group's operations are exposed to market risk (foreign exchange, cash flow, and fair value interest rate risk), credit risk, and liquidity risk, with no derivative financial instruments used for hedging during the period[22](index=22&type=chunk) - There have been **no significant changes** in risk management policies or the contractual undiscounted cash outflows of financial liabilities since the end of 2024[23](index=23&type=chunk)[24](index=24&type=chunk) - Fair value measurements are analyzed using a three-level hierarchy, with no transfers between levels during the period and no significant changes in business or economic conditions affecting fair values[24](index=24&type=chunk)[25](index=25&type=chunk) [Segment Information](index=14&type=section&id=Segment%20Information) The Group has created a new "Value-added Services" segment by combining sales of gas appliances, minor installation, maintenance, and insurance agency services to provide more relevant information - The Group has combined the sales of gas appliances, minor installation services, maintenance services, and insurance agency services into a new "Value-added Services" segment to provide more relevant and comparable financial information[27](index=27&type=chunk) Segment Revenue and Results for H1 2025 | Segment | Revenue (HK$ thousands) | % of Total | Segment Results (Gross Profit, HK$ thousands) | % of Total | | :--- | :--- | :--- | :--- | :--- | | Piped natural gas sales | 2,741,373 | 93.5% | 189,140 | 61.0% | | Engineering construction and natural gas pipeline installation services | 124,976 | 4.3% | 71,909 | 23.2% | | Natural gas pipeline transmission services | 27,099 | 0.9% | 23,603 | 7.6% | | Value-added services | 37,670 | 1.3% | 25,399 | 8.2% | | **Total** | **2,931,118** | **100%** | **310,051** | **100%** | Segment Revenue and Results for H1 2024 | Segment | Revenue (HK$ thousands) | % of Total | Segment Results (Gross Profit, HK$ thousands) | % of Total | | :--- | :--- | :--- | :--- | :--- | | Piped natural gas sales | 3,295,229 | 93.3% | 188,923 | 55.0% | | Engineering construction and natural gas pipeline installation services | 167,572 | 4.7% | 102,248 | 29.8% | | Natural gas pipeline transmission services | 32,391 | 0.9% | 28,436 | 8.3% | | Value-added services | 35,254 | 1.0% | 23,759 | 6.9% | | **Total** | **3,530,446** | **100%** | **343,366** | **100%** | [Other Income](index=17&type=section&id=Other%20Income) For the six months ended June 30, 2025, other income was HK$13,016 thousand, a 49.1% YoY decrease, primarily due to a significant reduction in government grants Details of Other Income | Item | June 30, 2025 (HK$ thousands) | June 30, 2024 (HK$ thousands) | Change | | :--- | :--- | :--- | :--- | | Government grants | 9,665 | 22,644 | -57.3% | | Maintenance and renovation service income | 2,924 | 2,638 | +10.8% | | Rental income | 427 | 286 | +49.3% | | **Total** | **13,016** | **25,568** | **-49.1%** | [Other Net Gains](index=17&type=section&id=Other%20Net%20Gains) For the six months ended June 30, 2025, other net gains surged to HK$64,072 thousand, a 1492.3% YoY increase, mainly driven by compensation for pipeline relocation and a shift from net exchange loss to gain Details of Other Net Gains | Item | June 30, 2025 (HK$ thousands) | June 30, 2024 (HK$ thousands) | Change | | :--- | :--- | :--- | :--- | | Net compensation income for relocation of natural gas pipelines | 54,538 | 19,031 | +186.6% | | Net exchange gain/(loss) | 11,444 | (23,696) | From loss to gain | | Net gain on disposal of subsidiaries | 487 | 2,853 | -82.9% | | **Total** | **64,072** | **4,024** | **+1492.3%** | [Cost of Sales and Services, Administrative Expenses and R&D Expenses](index=18&type=section&id=Cost%20of%20Sales%20and%20Services%2C%20Administrative%20Expenses%20and%20R%26D%20Expenses) For the six months ended June 30, 2025, total costs and expenses decreased by 17% YoY to HK$2,761,600 thousand, primarily due to a significant reduction in natural gas procurement costs Details of Cost of Sales and Services, Administrative Expenses and R&D Expenses | Item | June 30, 2025 (HK$ thousands) | June 30, 2024 (HK$ thousands) | Change | | :--- | :--- | :--- | :--- | | Natural gas procurement costs | 2,385,024 | 2,942,825 | -19.0% | | Employee benefit expenses | 139,370 | 121,200 | +15.0% | | Depreciation | 104,347 | 103,993 | +0.3% | | Total cost of sales and services, administrative expenses and R&D expenses | 2,761,600 | 3,326,189 | -17.0% | [Finance Income and Costs](index=18&type=section&id=Finance%20Income%20and%20Costs) For the six months ended June 30, 2025, net finance costs decreased significantly by 26.9% YoY to HK$43,419 thousand, driven by lower interest expenses and increased capitalization Details of Finance Income and Costs | Item | June 30, 2025 (HK$ thousands) | June 30, 2024 (HK$ thousands) | Change | | :--- | :--- | :--- | :--- | | Interest income on bank deposits | 2,071 | 15,179 | -86.4% | | Interest expense | (83,544) | (110,409) | -24.4% | | Less: Amount capitalized in construction in progress | 38,054 | 35,780 | +6.3% | | **Net finance costs** | **(43,419)** | **(59,450)** | **-26.9%** | [Income Tax Expense](index=19&type=section&id=Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense rose by 39% YoY to HK$45,279 thousand, mainly due to an increase in current income tax Details of Income Tax Expense | Item | June 30, 2025 (HK$ thousands) | June 30, 2024 (HK$ thousands) | Change | | :--- | :--- | :--- | :--- | | Current income tax | 45,524 | 30,980 | +46.9% | | Deferred income tax expense | (245) | 1,616 | From expense to credit | | **Total** | **45,279** | **32,596** | **+39.0%** | - The Group is subject to a two-tiered profits tax rate, with high-tech enterprises like Tianjin Clean Energy enjoying a preferential rate of **15%**[35](index=35&type=chunk) - Binhai HK obtained a Certificate of Resident Status in 2022, allowing it to apply a reduced dividend withholding tax rate[35](index=35&type=chunk) [Dividends](index=20&type=section&id=Dividends) The Board proposed a final dividend of HK$0.076 per ordinary share for 2024, totaling approximately HK$104,428 thousand, which was approved and paid, with no interim dividend declared for the current period - The 2024 final dividend of **HK$0.076 per ordinary share**, totaling approximately HK$104,428 thousand, was approved on May 9, 2025, and paid on June 10, 2025[37](index=37&type=chunk) - The Board has decided **not to declare an interim dividend** for the six months ended June 30, 2025[38](index=38&type=chunk) [Earnings Per Share](index=20&type=section&id=Earnings%20Per%20Share) For the six months ended June 30, 2025, both basic and diluted earnings per share were 12.54 HK cents, showing a slight increase compared to the same period last year Earnings Per Share Data | Indicator | June 30, 2025 (HK cents) | June 30, 2024 (HK cents) | Change | | :--- | :--- | :--- | :--- | | Basic earnings per share | 12.54 | 12.41 | +1.0% | | Diluted earnings per share | 12.54 | 12.41 | +1.0% | [Property, Plant and Equipment](index=21&type=section&id=Property%2C%20Plant%20and%20Equipment) As of June 30, 2025, the net book value of property, plant, and equipment increased to HK$6,304,670 thousand, mainly driven by additions and positive exchange differences Changes in Property, Plant and Equipment | Item | June 30, 2025 (HK$ thousands) | June 30, 2024 (HK$ thousands) | Change | | :--- | :--- | :--- | :--- | | Net book value at beginning of period | 5,985,500 | 6,007,569 | -0.4% | | Additions | 224,477 | 163,149 | +37.6% | | Depreciation expense | (95,745) | (95,578) | +0.2% | | Exchange differences | 193,198 | (123,319) | From negative to positive | | Net book value at end of period | 6,304,670 | 5,951,540 | +5.9% | [Accounts Receivable and Other Receivables](index=21&type=section&id=Accounts%20Receivable%20and%20Other%20Receivables) As of June 30, 2025, total accounts receivable and other receivables increased to HK$351,028 thousand, with the Group offering credit periods of 90 to 180 days Total Accounts Receivable and Other Receivables | Indicator | June 30, 2025 (HK$ thousands) | December 31, 2024 (HK$ thousands) | Change | | :--- | :--- | :--- | :--- | | Total accounts receivable and other receivables | 351,028 | 304,602 | +15.2% | - The Group offers a **90-day credit period** to piped natural gas and transmission service customers, and a **180-day credit period** to engineering and installation service customers[44](index=44&type=chunk) Aging Analysis of Accounts Receivable | Aging | June 30, 2025 (HK$ thousands) | December 31, 2024 (HK$ thousands) | | :--- | :--- | :--- | | 0-90 days | 88,075 | 65,725 | | 91-180 days | 5,249 | 20,059 | | 181-365 days | 35,033 | 27,778 | | Over 365 days | 201,738 | 196,293 | | **Total** | **330,095** | **309,855** | [Share Capital](index=22&type=section&id=Share%20Capital) As of June 30, 2025, the company's total share capital decreased to HK$258,292 thousand, primarily due to the redemption of some redeemable preference shares Share Capital Composition | Item | June 30, 2025 (HK$ thousands) | December 31, 2024 (HK$ thousands) | Change | | :--- | :--- | :--- | :--- | | Ordinary shares (issued and fully paid) | 138,325 | 138,325 | 0% | | Redeemable preference shares (authorized, issued and fully paid) | 119,967 | 144,000 | -16.7% | | **Total** | **258,292** | **282,325** | **-8.5%** | [Accounts Payable and Other Payables](index=23&type=section&id=Accounts%20Payable%20and%20Other%20Payables) As of June 30, 2025, total accounts payable and other payables amounted to HK$1,226,107 thousand, a slight increase from the end of 2024 Total Accounts Payable and Other Payables | Indicator | June 30, 2025 (HK$ thousands) | December 31, 2024 (HK$ thousands) | Change | | :--- | :--- | :--- | :--- | | Accounts payable and other payables | 1,226,107 | 1,204,412 | +1.8% | Aging Analysis of Accounts Payable | Aging | June 30, 2025 (HK$ thousands) | December 31, 2024 (HK$ thousands) | | :--- | :--- | :--- | | 0-90 days | 113,751 | 174,303 | | 91-180 days | 64,790 | 51,766 | | 181-365 days | 124,697 | 101,772 | | Over 365 days | 358,255 | 319,469 | | **Total** | **661,493** | **647,310** | [Borrowings](index=24&type=section&id=Borrowings) As of June 30, 2025, total borrowings increased to HK$3,706,434 thousand, with a significant rise in current borrowings increasing short-term repayment pressure Total Borrowings and Composition | Indicator | June 30, 2025 (HK$ thousands) | December 31, 2024 (HK$ thousands) | Change | | :--- | :--- | :--- | :--- | | Total non-current borrowings | 1,849,470 | 2,258,172 | -18.1% | | Total current borrowings | 1,856,964 | 1,071,352 | +73.3% | | **Total Borrowings** | **3,706,434** | **3,329,524** | **+11.3%** | - In April 2025, the company fully repaid the **RMB tranche of its syndicated loan**, approximately HK$238 million, with the remaining USD tranche due in June 2026[49](index=49&type=chunk) - Secured bank borrowings are guaranteed by the charging rights of certain subsidiaries and certain accounts receivable, while other borrowings are secured by the equity of a subsidiary and natural gas pipeline assets with a net book value of approximately **HK$348 million**[51](index=51&type=chunk) [Deferred Income](index=27&type=section&id=Deferred%20Income) As of June 30, 2025, total deferred income was HK$142,627 thousand, comprising government grants and construction project subsidies to be recognized over the assets' useful lives Details of Deferred Income | Item | June 30, 2025 (HK$ thousands) | December 31, 2024 (HK$ thousands) | Change | | :--- | :--- | :--- | :--- | | Government grants | 52,260 | 57,433 | -9.0% | | Construction project subsidies | 90,367 | 87,832 | +2.9% | | **Total** | **142,627** | **145,265** | **-1.8%** | - Government grants and construction project subsidies will be credited to profit or loss on a straight-line basis over the **30-year estimated useful life** of the related gas pipeline assets[52](index=52&type=chunk) [Deferred Income Tax](index=28&type=section&id=Deferred%20Income%20Tax) As of June 30, 2025, the net deferred tax asset was HK$26,617 thousand and the net deferred tax liability was HK$7,047 thousand, arising from various temporary differences Deferred Tax Assets and Liabilities | Indicator | June 30, 2025 (HK$ thousands) | December 31, 2024 (HK$ thousands) | Change | | :--- | :--- | :--- | :--- | | Deferred tax assets | 51,905 | 53,375 | -2.8% | | Set-off against deferred tax liabilities | (25,288) | (22,602) | +11.9% | | **Net deferred tax assets** | **26,617** | **30,773** | **-13.5%** | | Deferred tax liabilities | 32,335 | 34,866 | -7.3% | | Set-off against deferred tax assets | (25,288) | (22,602) | +11.9% | | **Net deferred tax liabilities** | **7,047** | **12,264** | **-42.6%** | [Commitments](index=30&type=section&id=Commitments) As of June 30, 2025, the Group had capital commitments that were contracted but not provided for - As of June 30, 2025, the Group had **capital commitments** that were contracted but not provided for[55](index=55&type=chunk) [Related Party Transactions](index=30&type=section&id=Related%20Party%20Transactions) The Group engaged in numerous transactions with entities controlled by its major shareholders, TEDA and Sinopec, and other related parties in the ordinary course of business - The Company's largest ultimate shareholder is **TEDA (42.18% holding)**, and the second-largest is **Sinopec (29.52% holding)**[57](index=57&type=chunk) Transactions with Related Parties (H1 2025) | Transaction Type | June 30, 2025 (HK$ thousands) | June 30, 2024 (HK$ thousands) | Change | | :--- | :--- | :--- | :--- | | Piped natural gas sales | 196,975 | 197,629 | -0.3% | | Engineering construction and natural gas pipeline installation services | 2,554 | 2,783 | -8.3% | | Natural gas procurement | 460,532 | 990,910 | -53.5% | | Purchase of gasoline and others | 10,593 | 787 | +1245.9% | | Interest expense (paid to Sinopec-controlled entities) | 6,424 | 6,510 | -1.3% | | Other service fees | 7,900 | 8,029 | -1.6% | Balances with Related Parties (as of June 30, 2025) | Balance Type | June 30, 2025 (HK$ thousands) | December 31, 2024 (HK$ thousands) | Change | | :--- | :--- | :--- | :--- | | Accounts receivable and other receivables | 11,603 | 11,566 | +0.3% | | Prepayments | 24,404 | 47,224 | -48.3% | | Accounts payable and other payables | 11,054 | 8,201 | +34.8% | | Contract liabilities | 10,652 | 16,412 | -35.1% | | Borrowings (from Sinopec-controlled entities) | 328,740 | 319,354 | +2.9% | - The Group conducts various transactions with other state-controlled entities in China on terms comparable to those with non-state-controlled entities[71](index=71&type=chunk)[72](index=72&type=chunk)[74](index=74&type=chunk) Key Management Personnel Remuneration | Item | June 30, 2025 (HK$ thousands) | June 30, 2024 (HK$ thousands) | Change | | :--- | :--- | :--- | :--- | | Fees | 1,328 | 1,275 | +4.2% | | Remuneration, share options and other allowances | 1,798 | 2,460 | -26.9% | | Retirement benefits | 130 | 124 | +4.8% | Business Review [Piped Natural Gas Sales](index=36&type=section&id=Piped%20Natural%20Gas%20Sales) Affected by a warm winter and slow economic recovery, the Group's total gas sales volume fell 14% to 1.14 billion cubic meters, leading to a 17% YoY revenue decline - In H1 2025, China's apparent natural gas consumption decreased by 0.9% YoY, while the Group's **total gas sales volume fell by 14%** to 1.14 billion cubic meters[76](index=76&type=chunk) Piped Natural Gas Sales Revenue | Indicator | H1 2025 (HK$ thousands) | H1 2024 (HK$ thousands) | Change | | :--- | :--- | :--- | :--- | | Piped natural gas sales revenue | 2,741,373 | 3,295,229 | -17% | [Engineering Construction and Natural Gas Pipeline Installation Services](index=36&type=section&id=Engineering%20Construction%20and%20Natural%20Gas%20Pipeline%20Installation%20Services) Revenue from engineering and installation services decreased by 25% YoY to HK$124,976 thousand due to the slow recovery of China's real estate market - Impacted by the slow recovery of China's real estate market, revenue from engineering construction and natural gas pipeline installation services **decreased by 25% YoY** to HK$124,976 thousand[77](index=77&type=chunk) - The Group's total user base grew by 1% to **2.47 million households**, and the urban medium-pressure gas pipeline network expanded by 38 km to approximately 4,014 km[77](index=77&type=chunk) [Natural Gas Pipeline Transmission Services](index=37&type=section&id=Natural%20Gas%20Pipeline%20Transmission%20Services) For the six months ended June 30, 2025, the Group's gas transmission volume was approximately 311,520,000 cubic meters, with revenue declining 16% YoY to HK$27,099 thousand Natural Gas Pipeline Transmission Services Revenue | Indicator | H1 2025 (HK$ thousands) | H1 2024 (HK$ thousands) | Change | | :--- | :--- | :--- | :--- | | Natural gas pipeline transmission services revenue | 27,099 | 32,391 | -16% | - Natural gas, as a clean and efficient energy source, plays a key role in addressing environmental pollution and transitioning to sustainable energy systems, aligning with China's green energy initiatives[78](index=78&type=chunk) [Value-added Services](index=37&type=section&id=Value-added%20Services) Revenue from value-added services grew by 7% YoY to HK$37,670 thousand, driven by strong growth in sales of gas appliances, maintenance, and insurance agency services Breakdown of Value-added Services Revenue | Item | H1 2025 (HK$ thousands) | H1 2024 (HK$ thousands) | Change | | :--- | :--- | :--- | :--- | | Total value-added services revenue | 37,670 | 35,254 | +7% | | Gas appliance sales revenue | 9,931 | 7,167 | +39% | | Minor installation services revenue | 18,464 | 20,652 | -11% | | Maintenance services revenue | 4,177 | 3,195 | +31% | | Insurance agency services revenue | 5,098 | 4,240 | +20% | [Real Estate Business](index=37&type=section&id=Real%20Estate%20Business) The Group holds a commercial land plot in Tianjin Airport Economic Area and plans to sell the property under construction to focus on its core gas business - The Group holds a commercial land plot of approximately **15,899.6 square meters** in the Tianjin Airport Economic Area with a 40-year land use right from December 31, 2009[80](index=80&type=chunk) - In line with its strategic focus on the gas business, management plans to **sell the property under construction** and has engaged agents and potential buyers[80](index=80&type=chunk) Outlook [Market Environment and Trends](index=38&type=section&id=Market%20Environment%20and%20Trends) China's natural gas market was weak in H1 2025, but the Group's Q2 sales volume grew 13% YoY, and supportive government policies are expected to aid margin recovery for city gas enterprises - In H1 2025, China's natural gas market was weak, with apparent consumption **decreasing by 0.9% YoY**[81](index=81&type=chunk) - The Group's total gas sales volume fell 14% in H1, but **rose 13% YoY in Q2**, indicating strong underlying growth potential despite the impact of a warm winter[81](index=81&type=chunk) - China's real estate market is recovering slowly, but key indicators are stabilizing, suggesting a return to optimism is expected[82](index=82&type=chunk) - Government initiatives promoting cost pass-through mechanisms for residential gas will help city gas enterprises **recover gross margins** and optimize pricing linkage[82](index=82&type=chunk) [Business Development Strategy](index=39&type=section&id=Business%20Development%20Strategy) The Group will pursue a diversified gas sourcing strategy, deepen partnerships with suppliers, and accelerate the development of value-added services to create a new profit growth engine - The Group will adhere to a **diversified gas sourcing strategy**, strengthening cooperation with major upstream suppliers to ensure supply security and stability[83](index=83&type=chunk) - Value-added services have become a core business, with revenue and gross profit **up 7% YoY** in H1, driven by a 39% increase in "Tai Yue Jia" gas appliance sales revenue[84](index=84&type=chunk) - The Group is expanding its value-added services by enriching product categories, launching kitchen renovation services, and planning to complete an e-commerce platform in H2[84](index=84&type=chunk) - A government notice promoting home and kitchen appliance "renewal" is expected to **boost the growth of value-added services**[84](index=84&type=chunk) [Financing Strategy](index=39&type=section&id=Financing%20Strategy) Through diversified financing channels and structural optimization, the Group reduced its comprehensive financing rate to 4.67% in H1 2025, resulting in a HK$26.87 million YoY decrease in interest expenses - The Group effectively controlled loan interest rates and reduced overall financing costs through diversified financing channels and structural optimization[85](index=85&type=chunk) Comprehensive Financing Rate and Interest Expense | Indicator | H1 2025 | End of 2024 | | :--- | :--- | :--- | | Comprehensive financing rate | 4.67% | 5.29% (estimated) | | YoY decrease in interest expense | HK$26.87 million | - | [H2 Outlook](index=40&type=section&id=H2%20Outlook) The Group will focus on stable growth in its city gas business, accelerate value-added services, and advance integrated energy projects to transform into an integrated energy service provider - In H2, China's natural gas market may face growing domestic supply while LNG imports are constrained by high international prices and weak demand[86](index=86&type=chunk) - The Group will ensure stable growth in its city gas business, accelerate the development of value-added services, and expedite the implementation of integrated energy demonstration projects to transform into an **integrated energy service provider**[86](index=86&type=chunk) - The company is confident in achieving **stable and restorative profit growth** in 2025, creating sustainable returns for shareholders[86](index=86&type=chunk) Financial Review [Gross Profit Margin](index=40&type=section&id=Gross%20Profit%20Margin) In H1 2025, the consolidated gross profit margin was 10.6%, an increase from 9.7% in the prior year period, primarily due to improved margins from piped natural gas sales Consolidated Gross Profit and Gross Profit Margin | Indicator | H1 2025 (HK$ thousands) | H1 2024 (HK$ thousands) | Change | | :--- | :--- | :--- | :--- | | Consolidated Gross Profit | 310,051 | 343,366 | -10% | | Consolidated Gross Profit Margin | 10.6% | 9.7% | +0.9 p.p. | - The increase in consolidated gross profit margin was mainly due to the **improved gross profit margin of piped natural gas sales**[87](index=87&type=chunk) [Administrative Expenses](index=40&type=section&id=Administrative%20Expenses) Administrative expenses for H1 2025 were approximately HK$90 million, an increase of about HK$8 million or 10% compared to the same period last year Administrative Expenses | Indicator | H1 2025 (HK$ thousands) | H1 2024 (HK$ thousands) | Change | | :--- | :--- | :--- | :--- | | Administrative Expenses | 90,086 | 81,603 | +10% | [Profit Attributable to Owners of the Company](index=40&type=section&id=Profit%20Attributable%20to%20Owners%20of%20the%20Company) For H1 2025, profit attributable to owners of the Company was approximately HK$173 million, a 3% YoY increase, mainly due to higher other income and lower finance costs Profit Attributable to Owners of the Company | Indicator | H1 2025 (HK$ thousands) | H1 2024 (HK$ thousands) | Change | | :--- | :--- | :--- | :--- | | Profit Attributable to Owners of the Company | 172,815 | 167,924 | +3% | - The increase in profit was primarily due to **higher other income and reduced finance costs**[89](index=89&type=chunk) [Basic Earnings Per Share](index=40&type=section&id=Basic%20Earnings%20Per%20Share) Basic earnings per share for H1 2025 was 12.54 HK cents, an increase of 0.13 HK cents compared to the same period last year Basic Earnings Per Share | Indicator | H1 2025 (HK cents) | H1 2024 (HK cents) | Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share | 12.54 | 12.41 | +0.13 cents | [Capital Liquidity and Financial Resources](index=40&type=section&id=Capital%20Liquidity%20and%20Financial%20Resources) The Group is financed through operating cash flows and borrowings, with total borrowings increasing to HK$3,706,434 thousand, a current ratio of 0.29, and a gearing ratio of 58% - The Group finances its capital liquidity needs primarily through cash flows from operating activities and interest-bearing bank loans and other borrowings[91](index=91&type=chunk) Capital Liquidity Indicators | Indicator | June 30, 2025 (HK$ thousands) | December 31, 2024 (HK$ thousands) | Change | | :--- | :--- | :--- | :--- | | Total borrowings | 3,706,434 | 3,329,524 | +11.3% | | Cash and bank deposits | 391,851 | 415,125 | -5.6% | | Current assets | 1,056,238 | 1,121,309 | -5.8% | | Current ratio | 0.29 | 0.37 (estimated) | -0.08 | | Gearing ratio | 58% | 56% | +2 p.p. | - The company is reviewing existing loans due in 2025 and plans to negotiate with potential financiers for refinancing at more competitive rates[92](index=92&type=chunk) [Borrowing Structure](index=41&type=section&id=Borrowing%20Structure) As of June 30, 2025, total borrowings were HK$3,706,434 thousand, with 82% denominated in RMB, 75% at floating rates, and short-term borrowings totaling HK$1,856,964 thousand - As of June 30, 2025, total borrowings were HK$3,706,434 thousand, with **18% denominated in USD and 82% in RMB**[93](index=93&type=chunk) - **25% of borrowings are at fixed interest rates** and 75% are at floating rates, with short-term borrowings and the current portion of long-term borrowings totaling HK$1,856,964 thousand[93](index=93&type=chunk) [Directors' Opinion on Adequacy of Working Capital](index=41&type=section&id=Directors'%20Opinion%20on%20Adequacy%20of%20Working%20Capital) Despite net current liabilities of approximately HK$2,536,894 thousand, the Board believes the Group will have sufficient working capital to meet its financial obligations for the next twelve months - Although current liabilities exceeded current assets by approximately HK$2,536,894 thousand as of June 30, 2025, the Board is of the opinion that the Group will have **sufficient working capital** to meet its financial obligations for the next twelve months[94](index=94&type=chunk) [Risks Arising from Exchange Rate Fluctuations](index=42&type=section&id=Risks%20Arising%20from%20Exchange%20Rate%20Fluctuations) The Group faces foreign exchange risk from its HKD and USD denominated deposits and borrowings, recording a net exchange gain of approximately HK$11 million in H1 2025, and currently has no hedging policy - The Group is exposed to foreign exchange risk as some deposits and bank borrowings are denominated in HKD and USD, resulting in a **net exchange gain of approximately HK$11 million** from financing activities in H1 2025[95](index=95&type=chunk) - The Group currently **does not have a foreign currency hedging policy** but management monitors the risk and will consider hedging if necessary[95](index=95&type=chunk) [Treasury Policy](index=42&type=section&id=Treasury%20Policy) For the six months ended June 30, 2025, the Group adopted a prudent financial management approach, focusing on careful capital and cash flow management to maintain a strong liquidity position - The Group adopts a prudent financial management approach, focusing on careful capital and cash flow management to maintain a **strong capital liquidity position**[96](index=96&type=chunk) [Pledge of Group's Assets](index=42&type=section&id=Pledge%20of%20Group's%20Assets) As of June 30, 2025, a 50% equity interest in Tianjin Clean Energy and pipeline network assets with a net book value of approximately HK$347,729 thousand were pledged as security for borrowings - As of June 30, 2025, a **50% equity interest** in Tianjin Clean Energy, valued at approximately HK$658,353 thousand, was pledged as security for other borrowings[97](index=97&type=chunk) - Pipeline network and equipment with a net book value of approximately **HK$347,729 thousand** were also pledged as collateral for other borrowings[97](index=97&type=chunk) Other Information [Dividend Policy](index=42&type=section&id=Dividend%20Policy) The Board approved and paid the final dividend for 2024 but did not declare an interim dividend for the first half of 2025 [Final Dividend](index=42&type=section&id=Final%20Dividend) The Board proposed a final dividend of HK$0.076 per ordinary share for 2024, totaling approximately HK$104,428 thousand, which was approved on May 9, 2025, and paid on June 10, 2025 - The 2024 final dividend of **HK$0.076 per ordinary share**, totaling approximately HK$104,428 thousand, was approved on May 9, 2025, and paid on June 10, 2025[98](index=98&type=chunk) [Interim Dividend](index=42&type=section&id=Interim%20Dividend) The Board of Directors did not declare an interim dividend for the first half of 2025 - The Board of Directors **did not declare** the payment of an interim dividend for the first half of 2025[99](index=99&type=chunk) [Contingent Liabilities](index=43&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had **no significant contingent liabilities**[100](index=100&type=chunk) [Significant Investments](index=43&type=section&id=Significant%20Investments) For the six months ended June 30, 2025, the Company did not hold any significant investments - For the six months ended June 30, 2025, the Company **did not hold any significant investments**[101](index=101&type=chunk) [Significant Acquisitions and Disposals of Subsidiaries and Associates](index=43&type=section&id=Significant%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%20and%20Associates) For the six months ended June 30, 2025, the Group did not conduct any significant acquisitions or disposals of subsidiaries and associates - For the six months ended June 30, 2025, the Group **did not conduct any significant acquisitions or disposals** of subsidiaries and associates[102](index=102&type=chunk) [Significant Events After the End of the Financial Period](index=43&type=section&id=Significant%20Events%20After%20the%20End%20of%20the%20Financial%20Period) As of the date of this results announcement, no significant events affecting the Group have occurred since the end of the financial period - As of the date of this results announcement, **no significant events** affecting the Group have occurred since the end of the financial period[103](index=103&type=chunk) [Future Plans for Significant Investments and Capital Assets](index=43&type=section&id=Future%20Plans%20for%20Significant%20Investments%20and%20Capital%20Assets) The Group currently has no future plans for significant investments or capital assets - The Group currently has **no future plans** for significant investments or capital assets[104](index=104&type=chunk) [Employees and Remuneration Policy](index=43&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 1,740 employees and is committed to providing competitive remuneration, a safe work environment, and training opportunities [Number of Employees](index=43&type=section&id=Number%20of%20Employees) As of June 30, 2025, the Group had a total of 1,740 employees, a slight decrease from the end of 2024 Number of Employees and Salaries | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of employees | 1,740 | 1,746 | | Salaries and wages (H1) | HK$139 million | HK$121 million (H1 2024) | [Remuneration Policy](index=43&type=section&id=Remuneration%20Policy) The Group offers competitive remuneration packages based on market rates and employee performance, along with discretionary bonuses, training opportunities, and comprehensive benefits - The Group provides **competitive remuneration packages** determined by market rates, employee performance, qualifications, and experience, with discretionary bonuses[107](index=107&type=chunk) - The Group offers training opportunities and benefits including pension, unemployment, work-related injury, medical, and maternity insurance, as well as a housing provident fund[107](index=107&type=chunk) - The Company adopted a **share option scheme** on January 13, 2021, as an incentive and reward for directors, senior management, and eligible employees[107](index=107&type=chunk) [Corporate Governance](index=44&type=section&id=Corporate%20Governance) The Group has an Audit Committee and complies with the code of conduct for directors' securities transactions and the Corporate Governance Code [Audit Committee](index=44&type=section&id=Audit%20Committee) The Audit Committee, comprising four independent non-executive directors, has reviewed the Group's unaudited interim consolidated results - The Audit Committee consists of four independent non-executive directors, with the chairman Mr. Lau Siu Ki and Dr. Tang Lai Wah being qualified accountants[108](index=108&type=chunk) - The Audit Committee has **reviewed the Group's unaudited consolidated results** for the period and provided advice and comments on the interim report[108](index=108&type=chunk) [Code of Conduct for Directors' Securities Transactions](index=44&type=section&id=Code%20of%20Conduct%20for%20Directors'%20Securities%20Transactions) The Company has adopted a code of conduct for directors' securities transactions that is no less exacting than the Model Code in the Listing Rules, and all directors have confirmed compliance - The Company has adopted a code of conduct for directors' securities transactions with terms no less exacting than the Model Code in Appendix C3 of the Listing Rules, and all directors have confirmed compliance during the period[109](index=109&type=chunk) [Corporate Governance Code](index=44&type=section&id=Corporate%20Governance%20Code) The Company has complied with the applicable code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules throughout the period - The Company has **complied with the applicable code provisions** of the Corporate Governance Code in Appendix C1 of the Listing Rules throughout the period[110](index=110&type=chunk) [Purchase, Sale and Redemption of Listed Securities](index=45&type=section&id=Purchase%2C%20Sale%20and%20Redemption%20of%20Listed%20Securities) During the period, the Company repurchased 3,138,000 ordinary shares for approximately HK$3,417,520 and resolved to redeem 480,650 redeemable preference shares for HK$24,032,500 Details of Share Repurchases in H1 2025 | Month of Purchase | Number of Shares Repurchased (thousands) | Total Consideration Paid (HK$) | | :--- | :--- | :--- | | January | 816 | 918,080 | | March | 1,060 | 1,155,020 | | April | 806 | 875,820 | | May | 256 | 262,620 | | June | 200 | 205,980 | | **Total** | **3,138** | **3,417,520** | - The share repurchases were intended to **increase the net asset value per share and/or earnings per share** of the Company, and the repurchased shares are held as treasury shares[111](index=111&type=chunk) - The Board resolved to redeem **480,650 redeemable preference shares** from TEDA HK at HK$50 per share, for a total of HK$24,032,500, with the redemption amount yet to be paid[111](index=111&type=chunk) [Board of Directors](index=46&type=section&id=Board%20of%20Directors) As of the announcement date, the Board of Directors comprises three executive directors, three non-executive directors, and four independent non-executive directors - As of the announcement date, the Board consists of three executive directors (Zhang Wang, Wang Xin, Gao Liang), three non-executive directors (Zhang Changliang, Shen Hongliang, Xia Binhui), and four independent non-executive directors (Ip Shing Hing, Lau Siu Ki, Lo Man Yue, Tang Lai Wah)[113](index=113&type=chunk)

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，概不對因本公告全部或任何部份內容而產生或 因倚賴該等內容而引致之任何損失承擔任何責任。 NAMYUE HOLDINGS LIMITED 南粵控股有限公司 ( 於香港註冊成立之有限公司) (股份代號: 01058) 截至 2025 年 6 月 30 日止六個月 中期業績公告 | 截至 6 月 30 日止六個月未經審核財務摘要 | | | | | --- | --- | --- | --- | | | 2025 年 | 2024 年 | 變動 | | | 千港元 | 千港元 | % | | 收入 | 34,606 | 42,118 | -17.8 | | 股東應佔虧損 | (6,064) | (5,999) | -1.08 | | 每股虧損 ─ 基本 | (1.13) 港仙 | (1.12) 港仙 | -0.89 | 1 簡明綜合財務資料 截至2025年6月30日止六個月 南粵控股有限有限公司(「本公司」)董事會(「董事會」)宣佈本公司及其附屬公司(統稱 本集團」)截至 2025 年 6 月 ...