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。 ORIENT OVERSEAS (INTERNATIONAL) LIMITED 東方海外（國際）有限公司* （於百慕達註冊成立之成員有限責任公司） （股份代號: 316） 2025 年 6 月 30 日止 6 個月 中期業績公佈 東方海外（國際）有限公司（「本公司」或「東方海外國際」）董事會宣佈本公司及其附屬公司 （「本集團」）截至 2025 年 6 月 30 日止 6 個月之未經審核中期業績如下。以下財務資料包括下文 載列本集團 2025 年 6 月 30 日的未經審核簡明綜合資產負債表與截至該日止 6 個月期間的未經審核 簡明綜合損益表、未經審核簡明綜合全面收益表、未經審核簡明綜合現金流量表和未經審核簡明 綜合權益變動表及其附註 1 至 21 均摘錄自中期財務資料。本公司之獨立核數師信永中和（香港） 會計師事務所有限公司已按照香港會計師公會頒佈的香港審閱聘用準則第 2410 號「公司獨立核數 師審閱 ...

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，並明確表示概不就因本公告全部或任何部分內容而產生或因倚賴該等內容 而引致之任何損失承擔任何責任。 China Aluminum Cans Holdings Limited 中國鋁罐控股有限公司 – 2 – （於開曼群島註冊成立之有限公司） （股份代號：6898） 截至二零二 五 年六月三十日止六個月的 中期業績公告 中期業績 中國鋁罐控股有限公司（「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」）截至二零二五年六月三十日止六個月的未經審核簡明綜合 財務業績，連同截至二零二四年六月三十日止六個月的比較數字。該等業績經本集 團外聘核數師安永會計師事務所及本公司轄下審核委員會（「審核委員會」）審閱。 – 1 – 中期簡明綜合損益及其他全面收益表 截至二零二五年六月三十日止六個月 | | 附註 | 二零二五年 | 二零二四年 | | --- | --- | --- | --- | | | | 千港元 | 千港元 | | | | （未經審核）（未經審核） | | | 收益 ...

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依賴該等內容而 引致之任何損失承擔任何責任。 WING TAI PROPERTIES LIMITED 永泰地產有限公司 （於百慕達註冊成立之有限公司） （股份代號：369） 截至二零二五年六月三十日止六個月之 中期業績、中期股息及記錄日期公告 主席報告 在此背景下，隨著股市回暖及香港銀行同業拆息（「HIBOR」）下降，住宅物業銷售有所增長，但價 格仍然受壓。同時，甲級寫字樓租金因供應量高及需求疲弱而持續承壓，預計疲弱的市況將持續至本 地經濟出現明顯復甦為止。 因應獨立估值反映香港物業價值面臨下行壓力，本集團錄得投資物業的估值虧損淨額及發展中物業的 減值撥備總額為 1,268,000,000 港元（二零二四年：1,352,000,000 港元）。計入金融工具的估值虧損 淨額 27,000,000 港元（二零二四年：17,000,000 港元），非現金估值虧損淨額合共為 1,295,000,000 港元（二零二四年：1,369,000,000 港元）。 ...

截至二零二五年六月三十日止六個月之中期業績公佈 六月三十日止六個月之中期業績公佈 陸氏集團(越南控股)有限公司（「本公司」）董事會欣然宣佈截至二零二五年六月三十日止六個月本公司及其附 屬公司（統稱「本集團」）之未經審核綜合中期業績連同二零二四年同期比較數字。此簡明綜合中期財務資料 為未經核數師審核，但已由本公司審核委員會審閱。 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文件的內容概不負責，對其準確性或完整性亦不發表任何聲 明，並明確表示，概不對因本文件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。 LUKS GROUP (VIETNAM HOLDINGS) COMPANY LIMITED 陸 氏 集 團 （ 陸 氏 集 團 （ 越 南 控 股 越 南 控 股 越 南 控 股 ） 有 限 公 司 有 限 公 司 * （於百慕達註冊成立之有限公司） （股份代號：366） 1 綜合全面收益表 綜合全面收益表 截至二零二五年六月三十日止六個月 | | | 截至六月三十日止六個月 | | --- | --- | --- | | | 二零二五年 | 二零二四年 | | | (未經審核) ...

數盟資本國際控股集團有限公司 於 開 曼 群 島 註 冊 成 立 的 有 限責任 公 司 ） （股份代號：8375） 截至二零二五年六月三十日止六個月 中期業績公告 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倚賴該等內容而引致的任何損失承擔任何責任。 Data Union Capital International Holdings Group Limited 數盟資本國際控股集團有限公司（「本公司」，連同其附屬公司統稱「本集團」）董事（「董事」） 會（「董事會」）欣然宣佈本集團截至二零二五年六月三十日止六個月之未經審核簡明綜合 業績（「中期業績」）。中期業績未經本公司獨立核數師審閱或審核，惟已由董事會審核委 員會審閱。本公告列載本公司截至二零二五年六月三十日止六個月之中期報告全文（「中 期報告」），並符合香港聯合交易所有限公司GEM證券上市規則（「GEM上市規則」）中有關 中期業績初步公告附載資料之相關規定。中期報告將適時按GEM上市規則規定之方式刊發， 並可於聯交所網站w ...

[Summary](index=1&type=section&id=Summary) The company reported a decrease in revenue and underlying recurring profit, with a smaller decline in reported profit due to reduced investment property fair value losses, and declared interim dividends - Revenue and underlying recurring profit decreased by **28.5%** and **26.6%** year-on-year, primarily due to reduced sales revenue from the healthcare business[2](index=2&type=chunk) - Reported profit decreased by **16.2%**, mainly due to lower non-cash fair value losses on investment properties recorded in the first half of 2025[2](index=2&type=chunk) - Declared an interim dividend of **3.0 HK cents** per share and a special interim dividend of **5.0 HK cents** per share[2](index=2&type=chunk) Performance Summary for the Six Months Ended June 30, 2025 | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 94,734 | 132,468 | -28.5% | | Reported Profit | 39,743 | 47,407 | -16.2% | | Underlying Recurring Profit | 45,294 | 61,710 | -26.6% | | EPS (Reported Profit) | 12.8 HK cents | 15.2 HK cents | -15.8% | | EPS (Underlying Recurring Profit) | 14.5 HK cents | 19.8 HK cents | -26.8% | | Total Dividend Per Share | 8.0 HK cents | 9.5 HK cents | -15.8% | | Shareholders' Funds (Period End) | 704,177 | 731,908 | -3.8% | | NAV Per Share (Period End) | 2.26 HK$ | 2.35 HK$ | -3.8% | [Condensed Consolidated Financial Statements](index=4&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the condensed consolidated financial statements, highlighting a decline in revenue and profit, alongside changes in assets and shareholders' equity [Condensed Consolidated Statement of Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's revenue decreased by **28.5%** year-on-year, operating profit declined, but narrower investment property revaluation losses led to a **16.2%** decrease in profit attributable to owners of the company Key Data from Condensed Consolidated Statement of Comprehensive Income | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 94,734 | 132,468 | | Operating Profit Before Fair Value Changes | 53,978 | 75,186 | | Revaluation Deficit on Investment Properties | (7,090) | (14,784) | | Operating Profit | 48,427 | 60,883 | | Profit Before Tax | 48,015 | 60,443 | | Profit for the Period Attributable to Owners of the Company | 39,743 | 47,407 | | Total Comprehensive Income for the Period Attributable to Owners of the Company | 4,991 | 23,624 | [Condensed Consolidated Statement of Financial Position](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets slightly increased, but shareholders' funds and net asset value per share decreased, while net current assets grew, total liabilities also rose Key Data from Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current Assets | 455,719 | 504,113 | -9.6% | | Current Assets | 396,527 | 339,241 | +16.9% | | Current Liabilities | 61,286 | 20,887 | +193.4% | | Net Current Assets | 335,241 | 318,354 | +5.3% | | Net Assets | 704,177 | 731,908 | -3.8% | | Total Equity | 704,177 | 731,908 | -3.8% | [Notes to the Financial Statements](index=8&type=section&id=Notes%20to%20the%20Financial%20Statements) This section provides detailed notes on the financial statements, covering accounting policies, segment performance, income, expenses, taxation, dividends, and financial position details [Principal Accounting Policies](index=8&type=section&id=Principal%20Accounting%20Policies) Interim financial information is prepared under the historical cost convention, with investment properties, leasehold land and buildings, and financial assets at fair value through profit or loss measured at fair value, and new/revised HKFRSs adopted this period had no significant impact - Interim financial information is prepared under the historical cost convention, except for investment properties, leasehold land and buildings, and financial assets at fair value through profit or loss, which are measured at fair value[10](index=10&type=chunk) - The adoption of amendments to HKAS 21 "Lack of Exchangeability" had no significant impact on the Group's interim financial information[11](index=11&type=chunk) [Operating Segment Information](index=8&type=section&id=Operating%20Segment%20Information) The Group's operating segments are healthcare, property investment, and treasury investment, with management assessing performance based on segment results before income tax and unallocated finance costs [Business Segments](index=9&type=section&id=Business%20Segments) This section details the external sales revenue and segment results for the healthcare, property investment, and treasury investment business segments External Sales Revenue and Segment Results by Business Segment (Six Months Ended June 30, 2025) | Segment | 2025 Revenue (HK$ thousand) | 2024 Revenue (HK$ thousand) | Revenue Change (%) | 2025 Results (HK$ thousand) | 2024 Results (HK$ thousand) | Results Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Healthcare | 86,724 | 123,442 | -29.7% | 52,386 | 76,974 | -31.9% | | Property Investment | 4,748 | 4,752 | -0.1% | (2,978) | (10,763) | +72.3% | | Treasury Investment | 3,262 | 4,274 | -23.7% | 7,427 | 4,194 | +77.1% | | Consolidated Total | 94,734 | 132,468 | -28.5% | 48,427 (Operating Profit) | 60,883 (Operating Profit) | -20.4% | Assets and Liabilities by Business Segment (As of June 30, 2025) | Segment | 2025 Assets (HK$ thousand) | 2024 Assets (HK$ thousand) | 2025 Liabilities (HK$ thousand) | 2024 Liabilities (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Healthcare | 370,710 | 360,292 | 16,051 | 12,578 | | Property Investment | 232,021 | 228,193 | 49,779 | 45,143 | | Treasury Investment | 247,120 | 248,616 | – | – | | Consolidated Total | 852,246 | 843,354 | 148,069 | 111,446 | [Geographical Information](index=11&type=section&id=Geographical%20Information) This section provides a breakdown of external sales revenue and operating results by geographical region External Sales Revenue and Operating Results by Region | Region | 2025 Revenue (HK$ thousand) | 2024 Revenue (HK$ thousand) | 2025 Results (HK$ thousand) | 2024 Results (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | China | 71,764 | 100,588 | 37,518 | 51,567 | | Southeast Asia | 18,748 | 24,674 | 14,238 | 14,526 | | North America | 872 | 3,855 | 391 | 2,159 | | United Kingdom | 3,178 | 3,172 | 3,077 | 1,312 | | Europe (excluding UK) | – | – | 910 | 173 | | Other Regions | 172 | 179 | 103 | (45) | | Consolidated Total | 94,734 | 132,468 | 48,427 | 60,883 | [Other Income](index=11&type=section&id=Other%20Income) Other income, primarily from dividends on listed investments, slightly decreased from **HK$85 thousand** in 2024 to **HK$66 thousand** in 2025 Other Income Details | Source | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Dividend Income from Financial Assets | 67 | 84 | | Gain/(Loss) on Disposal of Financial Assets | (1) | 1 | | **Total** | **66** | **85** | [Net Other Gains and Profit Before Tax](index=12&type=section&id=Net%20Other%20Gains%20and%20Profit%20Before%20Tax) Miscellaneous gains decreased from **HK$290 thousand** in 2024 to **HK$158 thousand** in 2025, with profit before tax at **HK$48,015 thousand**, primarily influenced by finance costs and cost of inventories Net Other Gains and Profit Before Tax Related Data | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Miscellaneous Gains | 158 | 290 | | Finance Costs | 412 | 440 | | Cost of Inventories | 23,343 | 30,597 | | Profit Before Tax | 48,015 | 60,443 | [Taxation](index=13&type=section&id=Taxation) Total taxation decreased from **HK$13,036 thousand** in 2024 to **HK$8,272 thousand** in 2025, primarily due to reductions in Hong Kong profits tax and overseas taxation - Hong Kong profits tax operates under a two-tiered system, with an **8.25%** tax rate for the first **HK$2,000,000** of assessable profits for qualifying entities, and **16.5%** for the remainder[20](index=20&type=chunk) Taxation Expense Details | Tax Type | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Hong Kong Profits Tax | 7,822 | 12,582 | | Overseas Taxation | 621 | 591 | | Deferred Tax | (171) | (137) | | **Total** | **8,272** | **13,036** | [Dividends](index=14&type=section&id=Dividends) The Board recommended a final dividend and a special final dividend for the year ended December 31, 2024, and declared an interim dividend of **3.0 HK cents** per share and a special interim dividend of **5.0 HK cents** per share for the current period, totaling **HK$24,931 thousand**, lower than the prior period - Proposed a 2024 final dividend of **3.8 HK cents** per share and a special final dividend of **6.7 HK cents** per share[22](index=22&type=chunk) Dividends Attributable to the Period | Dividend Type | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Interim Dividend (3.0 HK cents per share) | 9,349 | 9,349 | | Special Interim Dividend (5.0 HK cents per share) | 15,582 | 20,257 | | **Total** | **24,931** | **29,606** | [Earnings Per Share](index=14&type=section&id=Earnings%20Per%20Share) For the six months ended June 30, 2025, basic and diluted earnings per share were **12.8 HK cents**, down from **15.2 HK cents** in 2024, primarily due to a decrease in profit attributable to owners of the company Earnings Per Share Calculation | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Profit Attributable to Owners of the Company (HK$ thousand) | 39,743 | 47,407 | | Weighted Average Number of Ordinary Shares in Issue (shares) | 311,640,000 | 311,640,000 | | Basic and Diluted Earnings Per Share | 12.8 HK cents | 15.2 HK cents | [Trade and Other Receivables](index=15&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables significantly decreased to **HK$19,023 thousand** from **HK$33,217 thousand** on December 31, 2024, with trade receivables having credit terms ranging from **30 to 120 days** Details of Trade and Other Receivables | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade Receivables | 9,689 | 19,190 | | Bills Receivable | 5,922 | 9,529 | | Other Receivables | 3,412 | 4,498 | | **Total** | **19,023** | **33,217** | Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Within 30 days | 4,013 | 14,638 | | 31 – 60 days | 2,284 | 1,537 | | 61 – 90 days | 2,149 | 1,917 | | 91 – 120 days | 1,243 | 1,098 | | **Total** | **9,689** | **19,190** | [Trade and Other Payables](index=16&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables increased to **HK$16,500 thousand** from **HK$13,941 thousand** on December 31, 2024, primarily due to higher trade payables and accrued advertising and promotion expenses Details of Trade and Other Payables | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade Payables | 3,586 | 1,444 | | Accrued Expenses and Other Payables | 4,768 | 6,610 | | Accrued Advertising and Promotion Expenses | 6,501 | 5,382 | | Accrued Rebates and Discounts | 1,645 | 505 | | **Total** | **16,500** | **13,941** | Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Within 30 days | 3,558 | 1,054 | | 31 – 60 days | 11 | 373 | | 61 – 90 days | – | – | | Over 90 days | 17 | 17 | | **Total** | **3,586** | **1,444** | [Share Capital](index=17&type=section&id=Share%20Capital) As of June 30, 2025, the company's authorized share capital and issued and fully paid share capital remained unchanged at **600,000,000 shares (HK$30,000 thousand)** and **311,640,000 shares (HK$15,582 thousand)**, respectively Share Capital Structure | Type | Number of Shares | Amount (HK$ thousand) | | :--- | :--- | :--- | | Authorized Share Capital (HK$0.05 per share) | 600,000,000 | 30,000 | | Issued and Fully Paid Share Capital | 311,640,000 | 15,582 | [Pledge of Assets](index=17&type=section&id=Pledge%20of%20Assets_Notes) The Group's investment properties in the UK are pledged as security for bank facilities, with a carrying value of approximately **HK$113,678 thousand** as of June 30, 2025, and **HK$4,789 thousand** of bank facilities utilized - UK investment properties are pledged as security for bank facilities of **HK$58,103 thousand**, with **HK$4,789 thousand** utilized[28](index=28&type=chunk) Carrying Value of Pledged Assets | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Investment Properties | 113,678 | 102,854 | [Management Discussion and Analysis](index=18&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a comprehensive review of the Group's business performance and financial position, analyzing key operational and financial metrics, and discussing various risk factors and policies [Business Review](index=18&type=section&id=Business%20Review) Amid a cautious global economic environment, the Group's total revenue decreased by **28.5%** year-on-year, primarily due to a weak healthcare segment and reduced treasury investment interest income, with both reported and underlying recurring profits declining, though partially offset by lower investment property fair value losses [Performance Summary](index=18&type=section&id=Performance%20Summary) This section provides an overview of the Group's financial performance, highlighting the impact of global economic uncertainties on revenue and profit - The global economic environment remains cautious, with geopolitical uncertainties and high interest rates continuously impacting borrowing costs, investment activities, and consumer spending patterns[31](index=31&type=chunk) Revenue Changes by Business Segment | Segment | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Healthcare | 86,724 | 123,442 | -29.7 | | Property Investment | 4,748 | 4,752 | – | | Treasury Investment | 3,262 | 4,274 | -23.7 | | **Total** | **94,734** | **132,468** | **-28.5** | Reconciliation of Underlying Recurring Profit to Reported Profit | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Underlying Recurring Profit | 45,294 | 61,710 | -26.6 | | Fair Value Changes of Financial Assets | 1,539 | 481 | | | Fair Value Changes of Investment Properties | (7,090) | (14,784) | | | **Reported Profit** | **39,743** | **47,407** | **-16.2** | [Operational Review - Healthcare](index=20&type=section&id=Operational%20Review%20-%20Healthcare) This section reviews the healthcare segment's performance, detailing revenue and results by region, and strategic initiatives in China and North America Healthcare Segment Revenue and Results by Region | Region | 2025 Revenue (HK$ thousand) | 2024 Revenue (HK$ thousand) | Revenue Change (%) | 2025 Results (HK$ thousand) | 2024 Results (HK$ thousand) | Results Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | China (including Mainland China, Hong Kong & Macau) | 67,687 | 95,660 | -29.2 | 52,386 (Segment Profit) | 76,974 (Segment Profit) | -31.9 | | Southeast Asia | 17,993 | 24,108 | -25.4 | | | | | North America | 872 | 3,495 | -75.1 | | | | | Other Regions | 172 | 179 | -3.9 | | | | | **Segment Revenue** | **86,724** | **123,442** | **-29.7** | | | | - Sales revenue in Mainland China remained largely stable, with the company expanding its e-commerce initiatives and investing in brand building to enhance online presence[36](index=36&type=chunk) - North American sales were affected by tariff uncertainties, leading the company to adopt a cautious sales strategy, with sales expected to remain stable in the second half[38](index=38&type=chunk) [Operational Review - Property Investment](index=21&type=section&id=Operational%20Review%20-%20Property%20Investment) This section reviews the property investment segment's performance, including revenue and results by region, occupancy rates, and improvements in property expense ratios Property Investment Segment Revenue and Results by Region | Region | 2025 Revenue (HK$ thousand) | 2024 Revenue (HK$ thousand) | Revenue Change (%) | 2025 Results (HK$ thousand) | 2024 Results (HK$ thousand) | Results Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Hong Kong – Office and Residential | 1,591 | 1,723 | -7.7 | (2,978) (Segment Loss) | (10,763) (Segment Loss) | +72.3 | | Singapore – Industrial | 171 | 158 | +8.2 | | | | | United Kingdom – Retail/Residential | 2,986 | 2,871 | +4.0 | | | | | **Segment Revenue** | **4,748** | **4,752** | **–** | | | | - Occupancy rates for investment properties in Hong Kong, Singapore, and the UK were **100.0%**, **100.0%**, and **100.0%**, respectively[39](index=39&type=chunk) - Underlying recurring segment results slightly increased by **2.3%** to **HK$4,100 thousand**, with the property expense ratio decreasing to **13.4%**, reflecting improved management[40](index=40&type=chunk) [Operational Review - Treasury Investment](index=22&type=section&id=Operational%20Review%20-%20Treasury%20Investment) This section reviews the treasury investment segment's performance, noting a decrease in income due to lower bank deposit rates and a reconciliation of underlying recurring segment results to segment profit - Treasury investment segment revenue decreased by **23.7%** to **HK$3,300 thousand**, primarily due to a gradual decline in bank deposit interest rates[42](index=42&type=chunk) Reconciliation of Treasury Investment Underlying Recurring Segment Results to Segment Profit | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Underlying Recurring Segment Results | 5,888 | 3,713 | +58.6 | | Unrealized Fair Value Changes of Financial Assets | 1,539 | 481 | | | **Segment Results – Profit** | **7,427** | **4,194** | **+77.1** | [Financial Review](index=23&type=section&id=Financial%20Review) This section provides a detailed review of key financial and operational aspects, including staff costs, other operating expenses, finance costs, taxation, investment property valuation, financial resources, exchange rate risk, asset pledges, contingent liabilities, future investment plans, and employee and remuneration policies [Staff Costs](index=23&type=section&id=Staff%20Costs) Staff costs increased due to annual salary growth and long service payment provisions, partially offset by reduced executive director management bonus provisions - Staff costs increased by **5.9%** to **HK$22,100 thousand**, primarily reflecting annual salary increments and long service payment provisions, partially offset by reduced executive director management bonus provisions[45](index=45&type=chunk) [Other Operating Expenses](index=23&type=section&id=Other%20Operating%20Expenses) Other operating expenses decreased, mainly due to reduced advertising and promotion expenses, though their ratio to total revenue increased - Other operating expenses decreased by **22.9%** to **HK$10,800 thousand**, primarily due to reduced advertising and promotion expenses[46](index=46&type=chunk) - The ratio of other operating expenses to total revenue increased to **11.4%** (2024: **10.6%**)[46](index=46&type=chunk) [Finance Costs](index=23&type=section&id=Finance%20Costs) Finance costs decreased due to lower interest rates, but the interest coverage ratio declined - Finance costs decreased by **6.4%** to **HK$410 thousand**, reflecting the impact of lower interest rates during the period[47](index=47&type=chunk) - The interest coverage ratio decreased to **131.0 times** (2024: **170.9 times**)[47](index=47&type=chunk) [Taxation](index=23&type=section&id=Taxation_Financial%20Review) Taxation decreased primarily due to a reduction in the overall assessable operating profit of subsidiaries - Taxation decreased from **HK$13,000 thousand** to **HK$8,300 thousand**, primarily due to a reduction in the overall assessable operating profit of subsidiaries[48](index=48&type=chunk) [Investment Properties](index=24&type=section&id=Investment%20Properties) The investment property portfolio valuation slightly increased, influenced by a stronger British Pound and weaker Hong Kong market conditions, while unrealized fair value losses decreased - Investment property portfolio valuation slightly increased by **1.6%** to **HK$230,800 thousand**[49](index=49&type=chunk) - A stronger British Pound boosted the translated value of UK properties, while weak Hong Kong market conditions dragged down local asset values[49](index=49&type=chunk) Investment Property Valuation by Region | Region | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Hong Kong – Office and Residential | 104,390 | 111,480 | -6.4 | | Singapore – Industrial | 12,706 | 12,706 | – | | United Kingdom – Retail/Residential | 113,678 | 102,854 | +10.5 | | **Total** | **230,774** | **227,040** | **+1.6** | - Unrealized fair value losses on investment properties decreased by **52.0%** to **HK$7,100 thousand**[49](index=49&type=chunk) [Financial Resources and Treasury Policy](index=24&type=section&id=Financial%20Resources%20and%20Treasury%20Policy) This section outlines the Group's capital gearing ratio and liquidity ratio, reflecting its financial leverage and short-term solvency - Capital gearing ratio was **0.7%** (December 31, 2024: **0.6%**)[50](index=50&type=chunk) - Current ratio decreased to **6.5 times** (December 31, 2024: **16.2 times**)[50](index=50&type=chunk) [Exchange Rate Risk](index=25&type=section&id=Exchange%20Rate%20Risk) The Group faces foreign exchange risk from overseas securities investments, bank balances, and UK investment properties - Foreign exchange risk related to overseas securities investments and bank balances totaled approximately **HK$70,200 thousand**, representing about **8.2%** of the Group's total assets[51](index=51&type=chunk) - There is approximately **HK$108,900 thousand** of foreign exchange risk from the carrying value of investment properties in the UK[51](index=51&type=chunk) [Pledge of Assets](index=25&type=section&id=Pledge%20of%20Assets_Financial%20Review) UK investment properties with a significant carrying value are pledged as security for bank facilities - UK investment properties with a total carrying value of approximately **HK$113,700 thousand** are pledged as security for bank facilities of approximately **HK$58,100 thousand**[52](index=52&type=chunk) [Contingent Liabilities](index=25&type=section&id=Contingent%20Liabilities) As of the reporting date, the Group has no significant legal proceedings or claims that could result in material financial loss - As of June 30, 2025, there were no legal proceedings initiated by any third party against the Group, nor any pending claims that could result in significant financial loss to the Group[53](index=53&type=chunk) [Plans for Future Material Investments or Acquisitions of Capital Assets](index=25&type=section&id=Plans%20for%20Future%20Material%20Investments%20or%20Acquisitions%20of%20Capital%20Assets) The Group currently has no plans for any material investments or acquisitions of significant capital assets - The Group has no plans for any material investments or acquisitions of significant capital assets[54](index=54&type=chunk) [Employees and Remuneration Policy](index=25&type=section&id=Employees%20and%20Remuneration%20Policy) The Group had **100 employees** as of June 30, 2025, with remuneration reviewed annually based on market conditions and individual performance, including medical and education allowances - As of June 30, 2025, the Group had **100 employees** (December 31, 2024: **106 employees**)[55](index=55&type=chunk) - The Group annually reviews and determines employee and director remuneration packages based on market conditions and individual performance, providing medical and education allowances[55](index=55&type=chunk) [Outlook](index=26&type=section&id=Outlook) The Group maintains a cautious outlook for the second half of 2025 due to global uncertainties, anticipates challenges in healthcare, expects stable property contributions from the UK and Singapore, and will continue prudent treasury management - For the second half of 2025, the Group maintains a cautious outlook due to ongoing global uncertainties, interest rate impacts, and prudent consumer confidence in the operating environment[56](index=56&type=chunk) - The healthcare segment is expected to continue facing challenges in China, with the Group accelerating e-commerce initiatives and digital marketing to capture new demand[56](index=56&type=chunk) - The Hong Kong property market may remain under pressure, while UK and Singapore properties are expected to continue providing stable contributions[56](index=56&type=chunk) - The Group will continue to optimize returns through prudent treasury management, maintain a diversified investment portfolio, and prioritize capital preservation[56](index=56&type=chunk) [Other Information](index=26&type=section&id=Other%20Information) This section covers various other information, including interim dividend declarations, share transfer arrangements, securities transactions, corporate governance practices, and the composition of the Board and Audit Committee [Interim Dividends](index=26&type=section&id=Interim%20Dividends_Other%20Information) The Board declared an interim dividend of **3.0 HK cents** per share and a special interim dividend of **5.0 HK cents** per share for the six months ended June 30, 2025, payable to shareholders on December 5, 2025 - The Directors resolved to declare an interim dividend of **3.0 HK cents** per share and a special interim dividend of **5.0 HK cents** per share for the six months ended June 30, 2025, payable to shareholders registered on October 6, 2025[57](index=57&type=chunk) - The interim dividend and special interim dividend will be dispatched to shareholders on December 5, 2025[57](index=57&type=chunk) [Closure of Register of Members](index=26&type=section&id=Closure%20of%20Register%20of%20Members) To qualify for the interim dividends, the company's share transfer registration will be suspended from October 2 to October 6, 2025, with all transfer forms to be lodged by 4:30 p.m. on September 30, 2025 - The company's register of members will be closed from Thursday, October 2, 2025, to Monday, October 6, 2025 (both days inclusive)[58](index=58&type=chunk) - To qualify for the interim dividend and special interim dividend, all duly completed transfer forms, together with the relevant share certificates, must be lodged by 4:30 p.m. on Tuesday, September 30, 2025[58](index=58&type=chunk) [Arrangements for Purchase of Shares or Debentures](index=26&type=section&id=Arrangements%20for%20Purchase%20of%20Shares%20or%20Debentures) During the period, neither the company nor its subsidiaries entered into any arrangements enabling directors to acquire benefits by purchasing 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 enter into any arrangements that would enable the directors of the company to acquire benefits by means of the purchase of shares or debentures of the company or any other body corporate[59](index=59&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=27&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed shares - During the period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed shares[60](index=60&type=chunk) [Corporate Governance](index=27&type=section&id=Corporate%20Governance) The company adopted the Corporate Governance Code in Appendix C1 of the Listing Rules, and while the Chairman and Chief Executive roles are held by the same individual, the Board believes sufficient balance of power and safeguards are in place and will be regularly reviewed - The company adopted the Corporate Governance Code set out in Appendix C1 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited as its own corporate governance code[61](index=61&type=chunk) - The roles of Chairman and Chief Executive Officer are performed by the same individual, but the Board believes there is sufficient balance of power and safeguards, which will be regularly reviewed and monitored[61](index=61&type=chunk) [Standard Code for Securities Transactions by Directors](index=27&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The company adopted the Model Code for Securities Transactions by Directors of Listed Issuers in Appendix C3 of the Listing Rules and confirmed that all directors complied with it during the period - The company adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules as its own code of conduct regarding directors' securities transactions[62](index=62&type=chunk) - Following specific enquiries made to all directors, the directors have confirmed that they complied with the standards set out in the Model Code for the six months ended June 30, 2025[62](index=62&type=chunk) [Audit Committee](index=27&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, reviewed the company's interim financial information, which was also reviewed by the auditor, RSM Hong Kong, and an unmodified report was issued - The company's Audit Committee comprises three independent non-executive directors and meets at least twice a year[63](index=63&type=chunk) - The Audit Committee has reviewed the company's interim financial information for the six months ended June 30, 2025, which was also reviewed by the company's auditor, RSM Hong Kong, and an unmodified review report was issued[63](index=63&type=chunk) [Board of Directors](index=28&type=section&id=Board%20of%20Directors) As of the announcement date, the Board of Directors comprises three executive directors, one non-executive director, and three independent non-executive directors - As of the announcement date, the company's Board of Directors includes: (i) three executive directors, Mr. Ngan Wai Shun, Mr. Ngan Fook Wah, and Mr. Ngan Ching Fai; (ii) one non-executive director, Ms. Ngan Fook Yin; and (iii) three independent non-executive directors, Mr. Leung Man Chiu, Mr. Dell'Orto Renato, and Mr. Chan Chi Chung[64](index=64&type=chunk)

Company Information and Report Statement [Report Statement and Company Overview](index=1&type=section&id=Company%20Information%20and%20Report%20Statement) This report presents the unaudited condensed consolidated interim results of China Yurun Food Group Limited for the six months ended June 30, 2025, which has been reviewed by the company's Audit Committee - This report presents the unaudited condensed consolidated interim results of China Yurun Food Group Limited for the six months ended June 30, 2025[2](index=2&type=chunk)[3](index=3&type=chunk) - The report has been reviewed by the company's Audit Committee[3](index=3&type=chunk) Financial Statements [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 company experienced a significant decline in revenue, with both loss for the period and total comprehensive income expanding Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data | Indicator | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 255,353 | 538,975 | -52.6% | | Cost of sales | (196,967) | (463,472) | -57.5% | | Gross profit | 58,386 | 75,503 | -22.7% | | Results from operating activities | 3,755 | 11,606 | -67.6% | | Loss before income tax | (15,203) | (13,236) | +14.9% | | Loss for the period | (15,207) | (13,191) | +15.3% | | Loss attributable to owners of the Company | (10,803) | (10,069) | +7.3% | | Total comprehensive income for the period | (21,591) | (48,120) | -55.1% | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's non-current assets slightly decreased, current assets declined, and both net current liabilities and net liabilities expanded, indicating continued financial pressure Condensed Consolidated Statement of Financial Position Key Data | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 234,976 | 238,720 | -1.6% | | Current assets | 386,352 | 406,233 | -4.9% | | Current liabilities | 1,288,795 | 1,278,594 | +0.8% | | Net current liabilities | (902,443) | (872,361) | +3.4% | | Net liabilities | (729,187) | (707,596) | +3.0% | | Cash and cash equivalents | 20,694 | 40,983 | -49.5% | | Bank borrowings (total) | 437,710 | 443,611 | -1.3% | [Condensed Consolidated Statement of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, operating, investing, and financing activities all showed net cash outflows, leading to a significant decrease in cash and cash equivalents Condensed Consolidated Statement of Cash Flows Key Data | Indicator | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Net cash used in operating activities | (5,236) | (33) | | Net cash used in investing activities | (312) | (5,882) | | Net cash used in financing activities | (13,930) | (1,469) | | Net decrease in cash and cash equivalents | (19,478) | (7,384) | | Cash and cash equivalents at June 30 | 20,694 | 31,666 | Notes to the Financial Statements [Basis of Preparation and Going Concern](index=6&type=section&id=1%20Basis%20of%20Preparation) The company's interim financial report is prepared in accordance with International Accounting Standards, but faces significant going concern uncertainties, including net losses, expanded net current liabilities and net liabilities, and substantial overdue and defaulted bank borrowings; management has proposed several plans to alleviate liquidity pressure, but the effectiveness of going concern depends on the successful implementation of these plans - The Group recorded a net loss of **HKD 15,207,000**, with net current liabilities and net liabilities reaching **HKD 902,443,000** and **HKD 729,187,000** respectively[9](index=9&type=chunk) - Certain bank borrowings of **HKD 348,827,000** along with accrued interest of **HKD 271,858,000** are overdue, and loan covenants have not been met, leading to legal proceedings initiated by banks[10](index=10&type=chunk) - Management plans to improve the financial position by negotiating updated financing terms with banks, seeking consolidated restructuring for final settlement, and obtaining additional new financing, but significant uncertainties exist regarding going concern[11](index=11&type=chunk)[12](index=12&type=chunk) [Changes in Accounting Policies](index=7&type=section&id=2%20Changes%20in%20Accounting%20Policies) The adoption of new or revised International Financial Reporting Standards in the current period had no significant impact on the interim financial report - The adoption of new or revised International Financial Reporting Standards had no significant impact on the interim financial report[13](index=13&type=chunk) [Revenue and Segment Information](index=8&type=section&id=3%20Revenue%20and%20Segment%20Information) The Group's main businesses are divided into chilled and frozen meat and processed meat products segments; in the first half of 2025, external revenue from both segments significantly decreased, leading to a 52.6% year-on-year reduction in total revenue - The Group's reportable segment information is divided into chilled and frozen meat and processed meat products[14](index=14&type=chunk) [Segment Results](index=8&type=section&id=3(a)%20Segment%20Results) External revenue from both the chilled and frozen meat segment and the processed meat products segment significantly declined, leading to a substantial decrease in total reportable segment revenue and results Segment Results Key Data | Segment | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Chilled and frozen meat external revenue | 69,781 | 312,426 | -77.7% | | Processed meat products external revenue | 185,572 | 226,549 | -18.1% | | Total reportable segment revenue | 255,353 | 538,975 | -52.6% | | Reportable segment results | 9,812 | 17,679 | -44.5% | [Reportable Segment Revenue and Loss](index=9&type=section&id=3(b)%20Reportable%20Segment%20Revenue%20and%20Loss) The Group's consolidated revenue significantly decreased year-on-year, and the consolidated loss for the period expanded, primarily due to net finance costs and unallocated head office and corporate expenses Reportable Segment Revenue and Loss Key Data | Indicator | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Consolidated revenue | 255,353 | 538,975 | | Reportable segment profit before tax | 9,812 | 17,679 | | Net finance costs | (18,958) | (24,842) | | Income tax (expense) / credit | (4) | 45 | | Unallocated head office and corporate expenses | (6,057) | (6,073) | | Consolidated loss for the period | (15,207) | (13,191) | [Other Net (Losses) / Income](index=9&type=section&id=4%20Other%20Net%20(Losses)%20%2F%20Income) In the first half of 2025, the Group shifted from net income to net loss, primarily due to an increase in other expenses Other Net (Losses) / Income Details | Item | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Government grants | – | 468 | | Gain on disposal of property, plant and equipment | – | 2,031 | | Rental income | 132 | 56 | | Sales of scrap materials | 135 | 235 | | Other expenses | (2,431) | (981) | | **Other net (losses) / income** | **(2,164)** | **1,809** | [Loss Before Income Tax](index=10&type=section&id=5%20Loss%20Before%20Income%20Tax) Loss before income tax is primarily affected by net finance costs, staff costs, and cost of inventories - Loss before income tax has been arrived at after charging / (crediting) net finance costs, staff costs, and other items[16](index=16&type=chunk) [Net Finance Costs](index=10&type=section&id=5(a)%20Net%20Finance%20Costs) Net finance costs primarily consist of interest on bank borrowings, which decreased in the current period, but a significant amount of bank borrowings remains overdue and is subject to a restructuring plan Net Finance Costs Details | Item | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Interest on bank borrowings | 18,936 | 23,836 | | Interest on lease liabilities | 18 | 1,038 | | Bank charges | 30 | 56 | | Net foreign exchange (gain) / loss | (11) | 57 | | Interest income from bank deposits | (15) | (145) | | **Net finance costs** | **18,958** | **24,842** | - As of June 30, 2025, bank borrowings of **HKD 348,827,000** and accrued interest of **HKD 271,858,000** are overdue and have been included in a consolidated restructuring plan[16](index=16&type=chunk)[17](index=17&type=chunk) - Chinese courts have issued judgments for bank borrowings with a principal of **HKD 327,697,000**, requiring the subsidiary to repay the adjudicated outstanding bank borrowings together with accrued interest totaling **HKD 437,726,000**[18](index=18&type=chunk) [Staff Costs](index=11&type=section&id=5(b)%20Staff%20Costs) Staff costs, primarily comprising salaries, wages, and other benefits, decreased year-on-year in the current period Staff Costs Details | Item | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Salaries, wages and other benefits | 24,230 | 32,421 | | Contributions to defined contribution retirement schemes | 1,469 | 2,276 | | **Total** | **25,699** | **34,697** | [Other Items](index=11&type=section&id=5(c)%20Other%20Items) Other items primarily include cost of inventories, impairment losses on trade receivables, and depreciation and amortization, with significant decreases in cost of inventories and depreciation, but a substantial increase in impairment losses on trade receivables Other Items Details | Item | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Cost of inventories | 196,967 | 463,472 | | (Reversal of write-down) / write-down of inventories | (49) | 484 | | Impairment losses on trade receivables | 10,109 | 5,245 | | Amortisation of prepaid lease payments | 540 | 995 | | Amortisation of intangible assets | 307 | – | | Depreciation of property, plant and equipment | 8,956 | 14,208 | [Income Tax (Expense) / Credit](index=12&type=section&id=6%20Income%20Tax%20(Expense)%20%2F%20Credit) Income tax shifted from a credit to an expense in the current period, mainly due to under-provision in prior years Income Tax (Expense) / Credit Details | Item | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Current tax credit - current year | – | – | | Under-provision / (over-provision) in prior years | 4 | (45) | | **Total income tax expense / (credit)** | **4** | **(45)** | [Loss Per Share](index=12&type=section&id=7%20Loss%20Per%20Share) Basic and diluted loss per share remained flat compared to the same period last year, as the company has no potential ordinary shares Loss Per Share Data | Indicator | Six Months Ended June 30, 2025 (HKD) | Six Months Ended June 30, 2024 (HKD) | | :--- | :--- | :--- | | Basic loss per share | (0.006) | (0.006) | | Diluted loss per share | (0.006) | (0.006) | [Basic Loss Per Share](index=12&type=section&id=7(a)%20Basic%20Loss%20Per%20Share) Basic loss per share is calculated based on the loss attributable to owners of the Company and the weighted average number of ordinary shares, amounting to HKD 0.006 in the current period - Basic loss per share is calculated based on the loss attributable to owners of the Company of **HKD 10,803,000** and the weighted average number of ordinary shares of **1,822,756,000**[22](index=22&type=chunk) [Diluted Loss Per Share](index=12&type=section&id=7(b)%20Diluted%20Loss%20Per%20Share) Diluted loss per share is equal to basic loss per share as the company has no potential ordinary shares - Diluted loss per share is equal to basic loss per share as the company has no potential ordinary shares[23](index=23&type=chunk) [Income Tax Rules and Exemptions](index=12&type=section&id=Income%20Tax%20Rules%20and%20Exemptions) The Group is not subject to income tax in Bermuda and the British Virgin Islands, has no assessable profits in Hong Kong, and enterprises engaged in primary processing of agricultural products in mainland China are exempt from corporate income tax - The Group is not subject to any income tax in Bermuda and the British Virgin Islands, and has no assessable profits in Hong Kong[24](index=24&type=chunk) - Enterprises engaged in primary processing of agricultural products in mainland China are exempt from Chinese corporate income tax, and profits from slaughtering businesses are also exempt[24](index=24&type=chunk) [Property, Plant and Equipment](index=13&type=section&id=8.%20Property,%20Plant%20and%20Equipment) The recoverable amount of property, plant and equipment was assessed during the period, and no impairment loss was recognized - The Group assessed the recoverable amount of cash-generating units based on value in use, using management-approved five-year financial forecasts[25](index=25&type=chunk) - No impairment losses on property, plant and equipment and prepaid lease payments were recognized for the six months ended June 30, 2025 and 2024[25](index=25&type=chunk) [Trade and Other Receivables](index=13&type=section&id=9%20Trade%20and%20Other%20Receivables) As of June 30, 2025, net trade receivables slightly increased, but prepayments and other receivables grew significantly, leading to an increase in total receivables Trade and Other Receivables Details | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Gross trade receivables | 104,045 | 93,010 | +11.9% | | Less: Expected credit losses | (18,149) | (7,997) | +126.9% | | Trade receivables, net | 85,896 | 85,013 | +1.0% | | Deductible VAT | 55,439 | 61,468 | -9.8% | | Deposits and prepayments | 90,461 | 69,603 | +30.0% | | Other receivables | 104,981 | 70,665 | +48.6% | | **Total** | **336,777** | **286,749** | **+17.4%** | [Trade and Other Payables](index=14&type=section&id=10%20Trade%20and%20Other%20Payables) As of June 30, 2025, total trade payables decreased, but accrued interest and other payables significantly increased, leading to a slight rise in total payables Trade and Other Payables Details | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Gross trade payables | 92,386 | 113,855 | -18.8% | | Customer deposits | 18,670 | 20,322 | -8.1% | | Contract liabilities | 17,465 | 19,465 | -10.3% | | Accrued salaries and welfare | 3,326 | 10,414 | -68.1% | | VAT payable | 67,752 | 64,229 | +5.5% | | Payables for acquisition of property, plant and equipment | 27,647 | 27,229 | +1.5% | | Provision for litigation losses | 64,271 | 63,299 | +1.5% | | Accrued interest | 271,858 | 250,721 | +8.4% | | Other payables and accrued expenses | 348,815 | 338,489 | +3.1% | | **Total** | **912,190** | **908,023** | **+0.5%** | [Dividends](index=14&type=section&id=11%20Dividends) The Board of Directors does not recommend the declaration of an interim dividend for the six months ended June 30, 2025 and 2024 - The Directors do not recommend the declaration of an interim dividend for the six months ended June 30, 2025 and 2024[28](index=28&type=chunk) [Contingent Liabilities](index=14&type=section&id=12%20Contingent%20Liabilities) Aside from the bank litigation disclosed in Note 5(a), the Group has no other significant pending or threatened litigation or claims - Aside from the bank litigation disclosed in Note 5(a), the Group is not involved in any other significant litigation or arbitration[29](index=29&type=chunk) - Management believes that non-material litigation arising from ordinary business will not have any significant impact on the Group's financial position and results[29](index=29&type=chunk) Management Discussion and Analysis [Macroeconomic and Industry Review](index=15&type=section&id=Macroeconomic%20and%20Industry%20Review) In the first half of 2025, China's economy continued its recovery and improvement, with GDP growing by 5.3% year-on-year, but insufficient consumer willingness led to a 0.1% year-on-year decline in CPI; the hog farming industry faced downward pressure on pork prices, and pork consumption is expected to decline long-term, prompting industry transformation and upgrading - In the first half of 2025, China's GDP grew by **5.3%** year-on-year, but insufficient consumer willingness led to a **0.1%** year-on-year decline in CPI[31](index=31&type=chunk) - The hog farming industry faced significant downward pressure on pork prices, with hog slaughter volume increasing by **0.6%** year-on-year, and pork production and sales are expected to decline long-term, necessitating industry transformation and upgrading[31](index=31&type=chunk) [Business Review](index=15&type=section&id=Business%20Review) In the first half of the year, the Group focused on "Harbin Meat Union" series products, but overall revenue decreased by approximately 52.6% year-on-year due to falling hog prices, a strategic reduction in production at low-profit slaughterhouses, and the expiration of leases for some processed meat product factories - The Group focused on downstream "Harbin Meat Union" series products, adhering to traditional craftsmanship while exploring innovation[32](index=32&type=chunk) - Hog slaughter volume increased, market supply was abundant, and insufficient consumer demand led to a **2.2%** year-on-year decrease in hog prices[32](index=32&type=chunk) - The Group strategically reduced production at low-profit slaughterhouses and experienced the expiration of leases for some processed meat product factories, resulting in an overall revenue decrease of approximately **52.6%** year-on-year[34](index=34&type=chunk) [Product Quality and Research & Development](index=16&type=section&id=Product%20Quality%20and%20Research%20%26%20Development) The Group adheres to the "quality first" principle, strictly controlling every aspect from raw material procurement to sales, ensuring product quality stability and safety - The Group consistently adheres to the "quality first" principle, strictly controlling every aspect from raw material procurement to sales[33](index=33&type=chunk) - Ensuring product quality stability and consistency to provide consumers with high-quality, safe, and reliable food[33](index=33&type=chunk) [Sales and Distribution](index=16&type=section&id=Sales%20and%20Distribution) Chilled meat and low-temperature processed meat products are the main sources of income; chilled meat sales decreased by 80.1% year-on-year, while low-temperature processed meat product sales increased by 20.7% year-on-year, significantly increasing their proportion of total revenue Sales and Distribution Key Data | Product Category | H1 2025 Sales (HKD) | H1 2024 Sales (HKD) | Y-o-Y Change | % of Total Revenue (2025) | % of Total Revenue (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | | Chilled meat | HKD 54 million | HKD 270 million | -80.1% | 21% | 50% | | Low-temperature processed meat products | HKD 185 million | HKD 154 million | +20.7% | 73% | 28% | [Production Facilities and Capacity](index=16&type=section&id=Production%20Facilities%20and%20Capacity) As of June 30, 2025, the Group's annual production capacity for upstream slaughtering and downstream processed meat products remained consistent with December 31, 2024 - The Group's annual production capacity for upstream slaughtering and downstream processed meat products is approximately **2.35 million heads** and **20,000 tons** respectively, consistent with December 31, 2024[35](index=35&type=chunk) [Financial Review and Key Performance Indicators](index=16&type=section&id=Financial%20Review%20and%20Key%20Performance%20Indicators) The Group's revenue significantly decreased in the first half of the year, but by focusing on higher-margin downstream businesses, the overall gross profit margin improved; however, the loss attributable to owners of the Company still expanded Financial Review and Key Performance Indicators Overview | Indicator | H1 2025 (HKD) | H1 2024 (HKD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | HKD 255 million | HKD 539 million | -52.6% | | Loss attributable to owners | HKD 11 million | HKD 10 million | +10.0% | | Basic and diluted loss per share | HKD 0.006 | HKD 0.006 | 0% | [Revenue](index=17&type=section&id=Revenue) The Group's overall revenue decreased by approximately 52.6% year-on-year, primarily due to a significant decline in upstream business sales revenue, while downstream processed meat product business revenue also decreased - The Group's overall revenue decreased by approximately **52.6%** year-on-year[34](index=34&type=chunk)[36](index=36&type=chunk) [Chilled and Frozen Meat](index=17&type=section&id=Chilled%20and%20Frozen%20Meat) Overall sales revenue from upstream business significantly decreased by 77.7%, with chilled meat sales decreasing by 80.1% and frozen meat sales decreasing by 61.9% Chilled and Frozen Meat Sales Data | Product Category | H1 2025 Sales (HKD) | H1 2024 Sales (HKD) | Y-o-Y Change | % of Upstream Total Revenue (2025) | % of Upstream Total Revenue (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | | Upstream business total sales revenue | HKD 70 million | HKD 312 million | -77.7% | - | - | | Chilled meat | HKD 54 million | HKD 270 million | -80.1% | 77% | 86% | | Frozen meat | HKD 16 million | HKD 42 million | -61.9% | 23% | 14% | [Processed Meat Products](index=17&type=section&id=Processed%20Meat%20Products) Sales of processed meat products decreased by 18.1% year-on-year, with low-temperature processed meat product revenue increasing by 20.7%, but high-temperature processed meat products having no revenue due to lease expiration Processed Meat Products Sales Data | Product Category | H1 2025 Sales (HKD) | H1 2024 Sales (HKD) | Y-o-Y Change | % of Total Revenue (2025) | % of Total Revenue (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | | Processed meat products total sales | HKD 185 million | HKD 227 million | -18.1% | - | - | | Low-temperature processed meat products | HKD 185 million | HKD 154 million | +20.7% | 73% | 28% | | High-temperature processed meat products | None | HKD 73 million | -100% | 0% | - | [Gross Profit and Gross Profit Margin](index=17&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) The Group's overall gross profit decreased by 22.7% year-on-year, but by focusing on high-margin downstream businesses, the overall gross profit margin increased from 14.0% to 22.9%; upstream business gross profit margin slightly increased, while downstream business gross profit margin decreased due to increased raw material costs Gross Profit and Gross Profit Margin Data | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Overall gross profit (HKD) | HKD 58 million | HKD 76 million | -22.7% | | Overall gross profit margin | 22.9% | 14.0% | +8.9 percentage points | | Upstream overall gross profit margin | 1.5% | 1.4% | +0.1 percentage points | | Chilled meat gross profit margin | 2.5% | 2.2% | +0.3 percentage points | | Frozen meat gross profit margin | -2.2% | -3.6% | +1.4 percentage points | | Downstream overall gross profit margin | 30.9% | 31.4% | -0.5 percentage points | | Low-temperature processed meat products gross profit margin | 30.9% | 37.2% | -6.3 percentage points | [Other Net Losses / Income](index=18&type=section&id=Other%20Net%20Losses%20%2F%20Income) The Group shifted from net income to a net loss of approximately HKD 2.2 million during the review period Other Net Losses / Income Data | Indicator | H1 2025 (HKD) | H1 2024 (HKD) | | :--- | :--- | :--- | | Other net losses / income | (HKD 2.2 million) | HKD 1.8 million | [Operating Expenses](index=18&type=section&id=Operating%20Expenses) Operating expenses decreased by 20.1% year-on-year, primarily due to lower direct costs resulting from reduced sales volume, but their proportion of revenue increased Operating Expenses Data | Indicator | H1 2025 (HKD) | H1 2024 (HKD) | Y-o-Y Change | % of Revenue (2025) | % of Revenue (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | | Operating expenses | HKD 52 million | HKD 66 million | -20.1% | 20.5% | 12.2% | [Operating Results](index=18&type=section&id=Operating%20Results) The Group's operating profit significantly decreased by 66.7% year-on-year Operating Results Data | Indicator | H1 2025 (HKD) | H1 2024 (HKD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Operating profit | HKD 4 million | HKD 12 million | -66.7% | [Net Finance Costs](index=18&type=section&id=Net%20Finance%20Costs) Net finance costs decreased by 23.7% year-on-year, primarily due to a lower interest rate on a bank borrowing and no longer accruing overdue interest and penalties Net Finance Costs Data | Indicator | H1 2025 (HKD) | H1 2024 (HKD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Net finance costs | HKD 19 million | HKD 25 million | -23.7% | - The decrease in net finance costs was primarily due to a lower interest rate on a bank borrowing under a new agreement, and no longer needing to accrue overdue interest and penalties[43](index=43&type=chunk) [Income Tax](index=18&type=section&id=Income%20Tax) Income tax shifted from a credit to an expense during the review period Income Tax Data | Indicator | H1 2025 (HKD) | H1 2024 (HKD) | | :--- | :--- | :--- | | Income tax expense / (credit) | HKD 4 thousand | (HKD 50 thousand) | [Loss Attributable to Owners of the Company](index=18&type=section&id=Loss%20Attributable%20to%20Owners%20of%20the%20Company) Loss attributable to owners of the Company expanded by 10% year-on-year Loss Attributable to Owners of the Company Data | Indicator | H1 2025 (HKD) | H1 2024 (HKD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Loss attributable to owners of the Company | HKD 11 million | HKD 10 million | +10.0% | [Financial Resources and Liabilities](index=18&type=section&id=Financial%20Resources) The Group's cash and cash equivalents significantly decreased, and outstanding bank borrowings slightly declined but still faced substantial overdue borrowings and default issues; despite a net liability position, the Board believes non-current assets can provide support and is confident in future financial improvement - The Group's cash and cash equivalents decreased by approximately **HKD 20 million** to **HKD 21 million**[46](index=46&type=chunk) - Outstanding bank borrowings amounted to **HKD 438 million**, of which **HKD 376 million** are due within one year[46](index=46&type=chunk) - Despite recording a net liability position, the Group holds approximately **HKD 235 million** in non-current assets, which the Board believes does not pose a significant impact on going concern[54](index=54&type=chunk) [Financial Resources](index=18&type=section&id=Financial%20Resources) As of June 30, 2025, cash and cash equivalents significantly decreased, outstanding bank borrowings slightly declined, and all borrowings were denominated in RMB Financial Resources Key Data | Indicator | June 30, 2025 (HKD) | December 31, 2024 (HKD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | HKD 21 million | HKD 41 million | -48.8% | | Outstanding bank borrowings | HKD 438 million | HKD 444 million | -1.4% | | Fixed-rate debt ratio | 95% | 94% | +1 percentage point | - Net cash outflow during the review period was primarily used for repayment of bank borrowings and operating activities[48](index=48&type=chunk) - Capital expenditure was approximately **HKD 1.3 million**, a significant decrease compared to the same period last year[49](index=49&type=chunk) [Breach of Loan Covenants](index=19&type=section&id=Breach%20of%20Loan%20Covenants) The Group failed to meet covenants for HKD 349 million in bank borrowings, which, along with accrued interest, are overdue and have been included in a consolidated restructuring plan; the company is actively communicating with banks to seek extensions, renewals, or revised terms, and banks have indicated no intention to take extreme measures - As of June 30, 2025, the Group failed to meet certain loan covenants for bank borrowings of **HKD 349 million**, which, along with accrued interest of **HKD 272 million**, are overdue[50](index=50&type=chunk) - The overdue bank borrowings have been included in a consolidated restructuring plan, but relevant legal procedures will not be automatically lifted if banks do not convert the debt into equity in the new platform[51](index=51&type=chunk) - The Group is actively communicating with state-owned commercial banks to discuss extensions, renewals, and/or revisions of loan terms, and the banks have indicated no intention to take extreme measures[53](index=53&type=chunk) [Assets and Liabilities](index=20&type=section&id=Assets%20and%20Liabilities) The Group's total assets and total liabilities both slightly decreased, but net current liabilities and net liabilities both expanded, indicating increased financial leverage pressure Assets and Liabilities Key Data | Indicator | June 30, 2025 (HKD) | December 31, 2024 (HKD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Total assets | HKD 621 million | HKD 645 million | -3.7% | | Total liabilities | HKD 1.351 billion | HKD 1.353 billion | -0.1% | | Property, plant and equipment | HKD 195 million | HKD 199 million | -2.0% | | Net current liabilities | HKD 902 million | HKD 872 million | +3.4% | | Net liabilities | HKD 729 million | HKD 708 million | +3.0% | - The Board assessed that despite the net liability position, the Group holds approximately **HKD 235 million** in non-current assets, which can support daily production and operations[54](index=54&type=chunk) [Pledge of Assets](index=21&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, approximately HKD 12 million of the Group's trade receivables were pledged to secure approximately HKD 23 million in bank borrowings Pledge of Assets Data | Indicator | June 30, 2025 (HKD) | December 31, 2024 (HKD) | | :--- | :--- | :--- | | Pledged trade receivables | HKD 12 million | HKD 17 million | | Secured bank borrowings | HKD 23 million | HKD 27 million | [Material Investments, Acquisitions and Disposals of Subsidiaries and Associates, and Plans for Future Material Investments or Capital Asset Purchases](index=21&type=section&id=Material%20Investments,%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%20and%20Associates,%20and%20Plans%20for%20Future%20Material%20Investments%20or%20Capital%20Asset%20Purchases) During the review period, the Group had no material investments or significant acquisitions and disposals of subsidiaries, nor any plans for future material investments or capital asset purchases - The Group held no other material investments or significant acquisitions and disposals of subsidiaries during the review period[58](index=58&type=chunk) - As of the date of this announcement, the Group also has no plans for any material investments or capital asset purchases[58](index=58&type=chunk) [Contingent Liabilities](index=21&type=section&id=Contingent%20Liabilities) A bank in mainland China initiated litigation against a subsidiary of the Group, demanding immediate repayment of approximately HKD 349 million in bank borrowings, which the Group is negotiating to resolve - A bank in mainland China initiated litigation against a subsidiary of the Group, demanding immediate repayment of approximately **HKD 349 million** in bank borrowings[59](index=59&type=chunk) - The Group is negotiating with the bank to resolve these litigations, and there are no other significant contingent liabilities[59](index=59&type=chunk) [Risk Management](index=21&type=section&id=Foreign%20Exchange%20Fluctuation%20Risk%20and%20Related%20Hedging) The Group's business is primarily settled in RMB, and it continuously monitors foreign exchange risk to ensure it remains within a controllable range - The Group's business is primarily settled in RMB, which is currently still subject to foreign exchange controls[60](index=60&type=chunk) - The Group continuously monitors its foreign exchange risk, considering exchange rate fluctuation trends and cash flow needs, to ensure related risks remain within a controllable range[60](index=60&type=chunk) [Human Resources](index=22&type=section&id=Human%20Resources) As of June 30, 2025, the Group's total number of employees decreased to approximately 600, and total staff costs decreased year-on-year but increased as a proportion of revenue; the company adheres to a people-oriented philosophy, providing competitive compensation, benefits, and training and promotion mechanisms Human Resources Key Data | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total number of employees | Approx. 600 | Approx. 1,000 | | Total staff costs (HKD) | HKD 26 million | HKD 35 million (H1 2024) | | Staff costs as % of revenue | 10.1% | 6.4% (H1 2024) | - The company adheres to a people-oriented philosophy, strictly safeguarding employees' legitimate rights and interests, and providing competitive salaries, performance bonuses, retirement plans, and other benefits[61](index=61&type=chunk) - Continuously optimizing employee training programs and establishing fair promotion mechanisms to stimulate employee enthusiasm and creativity[61](index=61&type=chunk) [Environmental Protection and Performance](index=22&type=section&id=Environmental%20Protection%20and%20Performance) The Group places sustainable development at its core, actively fulfilling corporate social responsibility, integrating green and low-carbon concepts into corporate governance and business operations, and continuously optimizing energy structure, advocating green office and travel - The Group places sustainable development at the core of its development, actively fulfilling corporate social responsibility[62](index=62&type=chunk) - Integrating green and low-carbon concepts into corporate governance and business operations, optimizing energy structure, and improving energy utilization efficiency[62](index=62&type=chunk) - Continuously deepening the green office concept, advocating green travel, and will comprehensively promote the enterprise's transformation towards low-carbon and green operations in the future[62](index=62&type=chunk) Corporate Governance [Corporate Governance Principles and Structure](index=23&type=section&id=Corporate%20Governance%20Principles%20and%20Structure) The company adheres to principles of integrity, transparency, openness, and efficiency in corporate governance, adopting a sound governance structure and measures, overseeing company operations through the Board of Directors and its committees (Audit, Remuneration, Nomination), and establishing risk management and internal control systems - The company adheres to principles of integrity, transparency, openness, and efficiency in corporate governance, striving to achieve high standards of corporate governance[63](index=63&type=chunk) - The Board of Directors consists of five directors and has an Audit Committee, Remuneration Committee, and Nomination Committee, with clearly defined terms of reference[63](index=63&type=chunk) - A risk management and internal control system has been established and its effectiveness is reviewed by the Audit Committee with the assistance of the internal audit department[63](index=63&type=chunk) [Roles of Chairman and Chief Executive Officer](index=24&type=section&id=Roles%20of%20Chairman%20and%20Chief%20Executive%20Officer) Ms. Zhu Yuan serves as both the Chairman of the Board and Chief Executive Officer, which does not comply with Code Provision C.2.1 of the Corporate Governance Code; the Board believes this arrangement facilitates efficient formulation and execution of business strategies and plans to identify a suitable Chief Executive Officer in the long term - Ms. Zhu Yuan serves as both the Chairman of the Board and Chief Executive Officer of the company, which does not comply with Code Provision C.2.1 of the Corporate Governance Code[65](index=65&type=chunk) - The Board believes this arrangement facilitates more effective and efficient formulation of business strategies and execution of business plans, benefiting the Group's business prospects and management[65](index=65&type=chunk) - The composition of the Board ensures a balance of power, and a suitable Chief Executive Officer will be identified and appointed in the long term[65](index=65&type=chunk) [Standard Code for Securities Transactions by Directors](index=24&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The company has adopted Appendix C3 "Standard Code" of the Listing Rules and confirms that all Directors have complied with the code during the review period - The company has adopted Appendix C3 "Standard Code" of the Listing Rules as the code of conduct for Directors' dealings in company securities[66](index=66&type=chunk) - The company confirms that all Directors have complied with the requirements of the Standard Code during the review period[66](index=66&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=24&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) During the review period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the review period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[67](index=67&type=chunk) [Audit Committee](index=24&type=section&id=Audit%20Committee) The Audit Committee has reviewed the Group's accounting principles, practices, internal controls, risk management, and financial reporting matters with management, including the unaudited interim results for the current period - The Audit Committee has reviewed the Group's accounting principles and practices with management, and discussed internal controls, risk management, and financial reporting matters[68](index=68&type=chunk) - The review included the Group's unaudited interim results for the review period[68](index=68&type=chunk) Post-Reporting Events and Publication [Significant Events Affecting the Group After the Reporting Period](index=24&type=section&id=Significant%20Events%20Affecting%20the%20Group%20After%20the%20Reporting%20Period) From June 30, 2025, up to the date of this announcement, there have been no significant events affecting the Group - From June 30, 2025, up to the date of this announcement, there have been no significant events affecting the Group[69](index=69&type=chunk) [Publication of Interim Results and Interim Report](index=25&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report) This announcement has been published on the HKEX and company websites, and the interim report will be dispatched to shareholders and published on the company and HKEX websites in due course - This announcement has been published on the website of The Stock Exchange of Hong Kong Limited and the company's website[70](index=70&type=chunk) - The company's 2025 interim report will be dispatched to the company's shareholders (if requested) and published on the company's and HKEX websites in due course[70](index=70&type=chunk)

Company Information and Disclaimer [Company Overview](index=1&type=section&id=Company%20Overview) This report is the 2025 interim report for HM International Holdings Limited (Stock Code: 8416), a company incorporated in the Cayman Islands - Company Name: HM International Holdings Limited, Stock Code: **8416**[1](index=1&type=chunk) - Report Type: **2025 Interim Report**[1](index=1&type=chunk) [GEM Market Characteristics and Disclaimer](index=2&type=section&id=GEM%20Market%20Characteristics%20and%20Disclaimer) The GEM market provides a listing platform for high-risk small and medium-sized companies, requiring investors to carefully consider potential risks, and the Stock Exchange is not responsible for this report's content, with the Board confirming its accuracy and completeness - GEM market is positioned as a listing market for high-investment-risk small and medium-sized companies[2](index=2&type=chunk) - The Stock Exchange takes no responsibility for the contents of this report, and the Board confirms the information is accurate and complete[3](index=3&type=chunk) Interim Financial Results [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's revenue decreased by 15.7% year-on-year, but profit for the period increased by 28.1%, mainly due to a significant increase in other income and gains Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 78,465 | 93,109 | -15.7% | | Cost of sales | (46,012) | (55,103) | -16.5% | | Gross profit | 32,453 | 38,006 | -14.6% | | Other income and gains | 3,556 | 451 | +688.5% | | Selling expenses | (5,591) | (5,725) | -2.3% | | Administrative expenses | (22,256) | (26,934) | -17.3% | | Finance costs | (493) | (409) | +20.5% | | Profit before tax | 7,669 | 5,389 | +42.3% | | Income tax expense / (credit) | (407) | 277 | -246.6% | | Profit for the period | 7,262 | 5,666 | +28.1% | | Total comprehensive income for the period | 6,845 | 5,665 | +20.8% | | Profit for the period attributable to owners of the Company | 7,537 | 5,192 | +45.2% | | Basic and diluted earnings per share (HK cents) | 1.79 | 1.23 | +45.5% | [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets and total equity both increased, with a significant rise in net current assets and a healthy current ratio Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Non-current assets | 21,360 | 24,539 | -13.0% | | Current assets | 109,815 | 97,028 | +13.2% | | Total assets | 131,175 | 121,567 | +7.9% | | **Liabilities** | | | | | Current liabilities | 38,704 | 36,117 | +7.2% | | Non-current liabilities | 12,848 | 12,922 | -0.6% | | **Equity** | | | | | Net assets | 79,623 | 72,528 | +9.8% | | Equity attributable to owners of the Company | 80,181 | 76,734 | +4.5% | | Non-controlling interests | (558) | (4,206) | +86.7% | | Total equity | 79,623 | 72,528 | +9.8% | - Net current assets increased from **HK$60,911 thousand** as of December 31, 2024, to **HK$71,111 thousand** as of June 30, 2025[7](index=7&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, total equity attributable to owners of the Company increased, primarily due to profit for the period and the acquisition of non-controlling interests - Equity attributable to owners of the Company increased from **HK$76,734 thousand** at the beginning of the year to **HK$80,181 thousand** as of June 30, 2025[9](index=9&type=chunk) - Profit for the period was **HK$7,537 thousand**, with exchange differences arising from translation of overseas operations of **(HK$416) thousand**[9](index=9&type=chunk) - In June 2025, the Group acquired the remaining **49%** equity interest in its indirect subsidiary Tilt Pte. Ltd. for **S$100**, resulting in a difference between the carrying amount of non-controlling interests and the consideration paid of approximately **HK$3.9 million** transferred to retained earnings[9](index=9&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, cash flow from operating activities turned positive, with a net increase in cash and cash equivalents, and the period-end cash balance remained stable Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (HK$ Thousand) | | :--- | :--- | :--- | :--- | | Net cash generated from / (used in) operating activities | 3,155 | (6,129) | +9,284 | | Net cash used in investing activities | (102) | (7,867) | +7,765 | | Net cash used in financing activities | (2,654) | (14,575) | +11,921 | | Net increase / (decrease) in cash and cash equivalents | 399 | (28,571) | +28,970 | | Cash and cash equivalents at end of period | 64,833 | 62,006 | +2,827 | Notes to the Financial Statements [General Information and Accounting Policies](index=9&type=section&id=General%20Information%20and%20Accounting%20Policies) The company, incorporated in the Cayman Islands, primarily provides integrated printing services including financial printing, marketing collateral printing, and other services, with financial statements prepared under HKAS 34 and GEM Listing Rules, reviewed but unaudited - The Company was incorporated in the Cayman Islands on January 13, 2016, primarily engaged in providing integrated printing services[11](index=11&type=chunk) - The financial statements have been prepared in accordance with HKAS 34 and the GEM Listing Rules, and have been reviewed but not audited by the auditors[12](index=12&type=chunk)[13](index=13&type=chunk) [Revenue Analysis](index=10&type=section&id=Revenue%20Analysis) For the six months ended June 30, 2025, total revenue was HK$78,465 thousand, a 15.7% year-on-year decrease, mainly due to reduced revenue from financial printing and marketing collateral printing services Revenue Composition (For the six months ended June 30) | Service Type | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Provision of financial printing services | 59,455 | 71,658 | -17.0% | | Provision of marketing collateral printing services | 7,254 | 9,609 | -24.5% | | Provision of other services | 11,756 | 11,842 | -0.7% | | **Total Revenue** | **78,465** | **93,109** | **-15.7%** | [Segment Information and Major Customers](index=10&type=section&id=Segment%20Information%20and%20Major%20Customers) The Group operates in a single segment, integrated printing services, with most revenue, assets, and liabilities derived from Hong Kong, and no single customer contributed over 10% of revenue during the reporting period - The Group has only one operating segment, which is the provision of integrated printing services[16](index=16&type=chunk) - The majority of the Group's revenue, assets, and liabilities are located in Hong Kong[16](index=16&type=chunk) - For the period ended June 30, 2025, no single customer contributed more than **10%** of the Group's revenue[17](index=17&type=chunk) [Income Tax](index=11&type=section&id=Income%20Tax) For the six months ended June 30, 2025, income tax expense was HK$407 thousand, compared to a HK$277 thousand credit in the prior year, mainly due to changes in Hong Kong profits tax and deferred tax credit Income Tax Expense/(Credit) (For the six months ended June 30) | Tax Type | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Hong Kong profits tax - current period | 407 | 488 | | PRC enterprise income tax - current period | - | 4 | | Deferred tax credit - current period | - | (769) | | **Total income tax expense / (credit) recognized in profit or loss** | **407** | **(277)** | - Hong Kong profits tax is calculated at **8.25%** on the first **HK$2,000,000** of assessable profits and **16.5%** on the remaining amount[18](index=18&type=chunk) [Components of Profit for the Period](index=12&type=section&id=Components%20of%20Profit%20for%20the%20Period) Profit for the period was net of various expenses, with total employee benefit expenses decreasing year-on-year, but impairment loss provision for trade receivables significantly increasing Profit for the Period Deductions (For the six months ended June 30) | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (HK$ Thousand) | | :--- | :--- | :--- | :--- | | Total employee benefit expenses | 33,833 | 37,296 | -3,463 | | Auditor's remuneration | 401 | 354 | +47 | | Depreciation of property, plant and equipment | 1,316 | 667 | +649 | | Depreciation of right-of-use assets | 2,114 | 5,954 | -3,840 | | Impairment loss provision for trade receivables | 2,646 | 177 | +2,469 | [Dividend Policy](index=12&type=section&id=Dividend%20Policy) The Board does not recommend paying any dividend for the six months ended June 30, 2025, consistent with the prior year - The Board does not recommend the payment of any dividend for the six months ended June 30, 2025[20](index=20&type=chunk) [Earnings Per Share](index=13&type=section&id=Earnings%20Per%20Share) For the six months ended June 30, 2025, basic and diluted earnings per share were 1.79 HK cents, an increase from 1.23 HK cents in the prior year, with diluted earnings per share not presented due to the absence of potential ordinary shares Earnings Per Share (For the six months ended June 30) | Indicator | 2025 | 2024 | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Profit attributable to owners of the Company (HK$ Thousand) | 7,537 | 5,192 | +45.2% | | Weighted average number of ordinary shares (Thousand shares) | 421,215 | 421,215 | 0% | | Basic and diluted earnings per share (HK cents) | 1.79 | 1.23 | +45.5% | - No diluted earnings per share are presented for the six months ended June 30, 2025 and 2024, as there were no potential ordinary shares[21](index=21&type=chunk) [Trade and Other Receivables](index=14&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables were HK$26,991 thousand, slightly lower than at the end of 2024, with the impairment loss provision for trade receivables significantly increasing Trade and Other Receivables (As of June 30) | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (HK$ Thousand) | | :--- | :--- | :--- | :--- | | Trade receivables (before provision) | 24,565 | 22,382 | +2,183 | | Less: Impairment loss provision | (3,547) | (870) | -2,677 | | Other receivables and prepayments | 5,973 | 6,363 | -390 | | **Total** | **26,991** | **27,875** | **-884** | - Ageing analysis of trade receivables shows an increase in amounts aged **0 to 30 days**, while amounts over **365 days** have been cleared[22](index=22&type=chunk) [Trade and Other Payables](index=15&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables were HK$26,557 thousand, an increase from the end of 2024, mainly due to growth in trade payables Trade and Other Payables (As of June 30) | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (HK$ Thousand) | | :--- | :--- | :--- | :--- | | Trade payables | 15,682 | 10,014 | +5,668 | | Other payables and accrued expenses | 10,336 | 11,587 | -1,251 | | Long service payment provision | 539 | 539 | 0 | | **Total** | **26,557** | **22,140** | **+4,417** | - The credit period for trade payables ranges from **30 days to 90 days**[23](index=23&type=chunk) Management Discussion and Analysis [Business Review and Outlook](index=16&type=section&id=Business%20Review%20and%20Outlook) The Group primarily provides integrated printing services to Hong Kong financial and capital market clients, with revenue decreasing by 15.7% year-on-year, but the company is confident in its core business resilience and plans to expand into China and Southeast Asian markets - The Group primarily provides integrated printing services to corporate clients in Hong Kong's financial and capital markets[24](index=24&type=chunk) - For the six months ended June 30, 2025, revenue decreased by **15.7%** to **HK$78.47 million** year-on-year, mainly due to fewer work orders from several major clients[24](index=24&type=chunk) - Looking ahead, the Group plans to expand its existing business, focusing particularly on the China and Southeast Asian markets, and explore complementary business opportunities[25](index=25&type=chunk) [Business Review](index=16&type=section&id=Business%20Review) The Group offers financial printing, marketing collateral printing, and other services, and despite revenue decline, the company maintains a solid customer base, reflecting client recognition of its quality services - The Group provides financial printing services, marketing collateral printing services, and other services[24](index=24&type=chunk) - Revenue decreased by approximately **15.7%**, but the Company maintains a solid and continuously transacting customer base[24](index=24&type=chunk) [Outlook](index=16&type=section&id=Outlook) Management is confident in the resilience of its core business, will closely monitor market trends, and plans to enhance competitive advantages by expanding existing operations and exploring new opportunities, especially in China and Southeast Asia - Management is confident in the resilience and sustainability of its core business, will closely monitor market trends, and regularly review the Group's policies[25](index=25&type=chunk) - Strategic focus is on expanding existing business, particularly concentrating on development in China and Southeast Asian markets, while exploring complementary business opportunities[25](index=25&type=chunk) [Financial Review](index=17&type=section&id=Financial%20Review) The financial review indicates that despite a revenue decline, gross profit margin slightly improved, other income and gains significantly increased due to exchange gains, administrative expenses substantially decreased, ultimately driving a 28.1% year-on-year increase in profit for the period - Revenue decreased by **15.7%** year-on-year, mainly affected by reduced financial printing and marketing collateral printing projects[26](index=26&type=chunk) - Gross profit margin increased from **40.8%** to **41.4%**[27](index=27&type=chunk) - Profit for the period increased by **28.1%** year-on-year to **HK$7.26 million**[33](index=33&type=chunk) [Revenue](index=17&type=section&id=Revenue) For the six months ended June 30, 2025, total revenue was HK$78.47 million, a 15.7% year-on-year decrease, primarily due to reductions of HK$12.20 million and HK$2.36 million in financial printing and marketing collateral printing projects, respectively Revenue Composition (For the six months ended June 30) | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (HK$ Thousand) | | :--- | :--- | :--- | :--- | | Financial printing projects | 59,455 | 71,658 | -12,203 | | Marketing collateral printing projects | 7,254 | 9,609 | -2,355 | | Other projects | 11,756 | 11,842 | -86 | | **Total** | **78,465** | **93,109** | **-14,644** | [Gross Profit and Gross Profit Margin](index=17&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) Gross profit decreased by 14.6% year-on-year to HK$32.45 million, but the gross profit margin slightly increased from 40.8% to 41.4% - Gross profit decreased by **14.6%** to **HK$32.45 million**[27](index=27&type=chunk) - Gross profit margin increased from **40.8%** in 2024 to **41.4%** in 2025[27](index=27&type=chunk) [Other Income and Gains](index=17&type=section&id=Other%20Income%20and%20Gains) Other income and gains significantly increased by approximately HK$3.11 million, primarily attributable to exchange gains of approximately HK$2.68 million from the appreciation of the Singapore Dollar and Euro - Other income and gains increased by approximately **HK$3.11 million**[28](index=28&type=chunk) - Mainly due to exchange gains of approximately **HK$2.68 million** arising from the appreciation of the Singapore Dollar and Euro[28](index=28&type=chunk) [Selling Expenses](index=18&type=section&id=Selling%20Expenses) Selling expenses slightly decreased by 2.3% year-on-year to HK$5.59 million - Selling expenses decreased by approximately **HK$0.13 million** or **2.3%** to **HK$5.59 million**[29](index=29&type=chunk) [Administrative Expenses](index=18&type=section&id=Administrative%20Expenses) Administrative expenses significantly decreased by 17.3% year-on-year to HK$22.26 million, mainly due to reduced staff costs and depreciation of right-of-use assets, partially offset by an increased impairment loss provision for trade receivables - Administrative expenses decreased by approximately **HK$4.67 million** or **17.3%** to **HK$22.26 million**[30](index=30&type=chunk) - The decrease was mainly due to reduced staff costs and depreciation of right-of-use assets, partially offset by an increased impairment loss provision for trade receivables[30](index=30&type=chunk) [Finance Costs](index=18&type=section&id=Finance%20Costs) Finance costs slightly increased by approximately HK$0.08 million year-on-year to HK$0.49 million, primarily due to increased interest expenses on lease liabilities - Finance costs slightly increased by approximately **HK$0.08 million** to **HK$0.49 million**[31](index=31&type=chunk) - The increase was mainly due to increased interest expenses on lease liabilities[31](index=31&type=chunk) [Tax](index=18&type=section&id=Tax) Income tax changed from a HK$0.28 million credit in the prior year to a HK$0.41 million expense in the current period, an increase of approximately HK$0.69 million - Income tax expense increased from a **HK$0.28 million** credit for the six months ended June 30, 2024, to a **HK$0.41 million** expense for the same period in 2025[32](index=32&type=chunk) [Profit for the Period](index=18&type=section&id=Profit%20for%20the%20Period) The Group's profit after tax increased by 28.1% year-on-year to HK$7.26 million - The Group's profit after tax increased by approximately **HK$1.59 million** or **28.1%** to **HK$7.26 million**[33](index=33&type=chunk) [Dividends](index=18&type=section&id=Dividends) The Board does not recommend paying any dividend for the review period - The Board does not recommend the payment of any dividend for the review period[34](index=34&type=chunk) [Staff and Remuneration Policy](index=19&type=section&id=Staff%20and%20Remuneration%20Policy) As of June 30, 2025, the Group employed 154 staff globally, with total staff costs decreasing year-on-year, and the company incentivizes and retains employees through share option and share award schemes Employee Headcount (As of June 30) | Region | 2025 | 2024 | | :--- | :--- | :--- | | Hong Kong | 115 | 117 | | China | 11 | 9 | | Taiwan | 20 | 20 | | Singapore | 8 | 9 | | **Total** | **154** | **155** | - For the review period, total staff costs (including directors' emoluments) were approximately **HK$33.8 million**, a decrease from **HK$37.3 million** in the prior year[35](index=35&type=chunk) - The Group has adopted a share option scheme and a share award scheme to incentivize and retain eligible employees[35](index=35&type=chunk)[36](index=36&type=chunk) [Financial Resources, Liquidity and Gearing Ratio](index=20&type=section&id=Financial%20Resources%2C%20Liquidity%20and%20Gearing%20Ratio) As of June 30, 2025, the Group's total assets and total equity both increased, with a healthy current ratio of 2.8 times and a gearing ratio reduced to 19.9% Financial Resources Overview (As of June 30) | Indicator | 2025 (HK$ Million) | 2024 (HK$ Million) | Change (%) | | :--- | :--- | :--- | :--- | | Total assets | 131.2 | 121.6 | +7.9% | | Total equity | 79.6 | 72.5 | +9.8% | | Current assets | 109.8 | 97.0 | +13.2% | | Current liabilities | 38.7 | 36.1 | +7.2% | | Cash and bank balances | 64.8 | 64.6 | +0.3% | | Current ratio | 2.8 times | 2.7 times | +3.7% | | Gearing ratio | 19.9% | 24.8% | -19.8% | - Cash and bank balances include **RMB6.3 million**, **US$0.6 million**, **NT$0.7 million**, **S$0.1 million**, and **Euro2.0 million**[37](index=37&type=chunk) [Risk Management and Commitments](index=21&type=section&id=Risk%20Management%20and%20Commitments) The Group's primary business is in Hong Kong, with transactions denominated in HKD, so foreign exchange risk is not significant, and there were no asset pledges, significant investments, contingent liabilities, or material capital commitments during the reporting period, with no significant events occurring after the review period - The Group's business is primarily operated in Hong Kong, with trading transactions mainly denominated in HKD, and foreign exchange risk is not significant[38](index=38&type=chunk) - As of June 30, 2025, the Group had no pledged assets, no significant investments, acquisitions or disposals, no material contingent liabilities, and no material capital commitments[39](index=39&type=chunk)[40](index=40&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk) - No significant events affecting the Group occurred after the review period and up to the date of this report[43](index=43&type=chunk) [Foreign Exchange Risk](index=21&type=section&id=Foreign%20Exchange%20Risk) The Group's business is primarily in Hong Kong, with transactions denominated in HKD, and only a small portion of bank deposits in other foreign currencies, so directors consider foreign exchange risk not significant, with no hedging arrangements currently in place - The Group's business is primarily operated in Hong Kong, with trading transactions mainly denominated in HKD[38](index=38&type=chunk) - The Directors believe that the Group's operating cash flows and liquidity are not exposed to significant foreign exchange rate risk, and no hedging arrangements were made during the review period[38](index=38&type=chunk) [Indebtedness and Pledge of Assets](index=21&type=section&id=Indebtedness%20and%20Pledge%20of%20Assets) As of June 30, 2025, the Group had not pledged any assets as collateral for general banking facilities - As of June 30, 2025, the Group had not pledged any assets as collateral for general banking facilities[39](index=39&type=chunk) [Material Investments, Acquisitions or Disposals](index=21&type=section&id=Material%20Investments%2C%20Acquisitions%20or%20Disposals) As of June 30, 2025, the Group held no material investments, material acquisitions, or disposals of subsidiaries - As of June 30, 2025, the Group held no material investments, material acquisitions, or disposals of subsidiaries[40](index=40&type=chunk) [Contingent Liabilities](index=21&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[41](index=41&type=chunk) [Capital Commitments](index=21&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group had no material capital commitments - As of June 30, 2025, the Group had no material capital commitments[42](index=42&type=chunk) [Significant Events After Review Period](index=22&type=section&id=Significant%20Events%20After%20Review%20Period) No significant events affecting the Group occurred after the review period and up to the date of this report - No significant events affecting the Group occurred after the review period and up to the date of this report[43](index=43&type=chunk) [General Commitments](index=22&type=section&id=General%20Commitments) As of June 30, 2025, no commitments were reported - As of June 30, 2025, no commitments were reported[44](index=44&type=chunk) Other Information [Directors' and Chief Executive's Interests](index=22&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests) As of June 30, 2025, Mr. Yu Chi Ming and Mr. Chan Wai Lim jointly held 51.67% of the company's shares through HM Ultimate Holdings Limited, while Ms. Chan Wai Chung beneficially owned 2.54% of shares Directors' Long Position in the Company's Shares (As of June 30, 2025) | Name of Director | Nature of Interest | Number of Ordinary Shares | Percentage | | :--- | :--- | :--- | :--- | | Mr. Yu Chi Ming | Jointly held interest with other persons; interest held by controlled corporation | 217,760,000 | 51.67% | | Mr. Chan Wai Lim | Jointly held interest with other persons; interest held by controlled corporation | 217,760,000 | 51.67% | | Ms. Chan Wai Chung | Beneficial owner | 10,700,000 | 2.54% | - Mr. Yu Chi Ming and Mr. Chan Wai Lim beneficially own **70.2%** and **29.8%** respectively of HM Ultimate Holdings Limited, jointly controlling its **217,760,000** shares[45](index=45&type=chunk) Directors' Long Position in Shares of Associated Corporations (As of June 30, 2025) | Name of Director | Name of Associated Corporation | Nature of Interest | Number of Ordinary Shares | Percentage | | :--- | :--- | :--- | :--- | | Mr. Yu | HM Ultimate | Beneficial owner | 702 | 70.2% | | Mr. Chan | HM Ultimate | Beneficial owner | 298 | 29.8% | [Substantial Shareholders' Interests](index=23&type=section&id=Substantial%20Shareholders'%20Interests) As of June 30, 2025, HM Ultimate Holdings Limited was the largest shareholder, holding 51.67% of shares, with spouses of Mr. Yu Chi Ming and Mr. Chan Wai Lim deemed to hold the same shares due to spousal interest, and Mr. Tse Kam Wing and his spouse also holding 17.15% of shares Substantial Shareholders' Long Position in the Company's Shares (As of June 30, 2025) | Name of Shareholder / Person | Nature of Interest | Number of Ordinary Shares | Percentage | | :--- | :--- | :--- | :--- | | HM Ultimate | Beneficial owner | 217,760,000 | 51.67% | | Ms. Wong Mei Chi (spouse of Mr. Yu) | Interest of spouse | 217,760,000 | 51.67% | | Ms. Tang Wai Kwan (spouse of Mr. Chan) | Interest of spouse | 217,760,000 | 51.67% | | Mr. Tse Kam Wing | Beneficial owner | 72,285,000 | 17.15% | | Ms. Wong Yuk Cham (spouse of Mr. Tse) | Interest of spouse | 72,285,000 | 17.15% | [Share Option Scheme](index=24&type=section&id=Share%20Option%20Scheme) The company adopted a share option scheme on December 15, 2016, to reward eligible participants contributing to the Group, with the scheme having a ten-year validity and a maximum of 40,000,000 shares issuable, and no options were granted or exercised during the review period - The Share Option Scheme was adopted on December 15, 2016, to reward eligible participants who have contributed to the Group[49](index=49&type=chunk) - The total number of shares that may be issued under the scheme shall not exceed **40,000,000 shares** in aggregate[51](index=51&type=chunk) - No share options were granted or exercised, and no outstanding share options existed under the Share Option Scheme during the review period[51](index=51&type=chunk) [Share Award Scheme](index=25&type=section&id=Share%20Award%20Scheme) The company adopted a share award scheme on July 4, 2022, to recognize, reward, and retain employees contributing to the Group's business growth, with the scheme having a ten-year validity and total awarded shares not exceeding 10% of issued shares at adoption, and no new shares were awarded during the review period, but some vested and lapsed - The Share Award Scheme was adopted on July 4, 2022, to recognize, reward, and retain eligible participants[52](index=52&type=chunk) - The total number of shares awarded shall not exceed **10%** of the total issued shares at the adoption date[53](index=53&type=chunk) Share Award Scheme Vesting Status (As of June 30, 2025) | Category of Participants | Unvested as at January 1, 2025 (Shares) | Vested as at June 30, 2025 (Shares) | Lapsed as at June 30, 2025 (Shares) | Unvested as at June 30, 2025 (Shares) | | :--- | :--- | :--- | :--- | :--- | | Executive Director (Ms. Chan Wai Chung) | 2,650,000 | 2,650,000 | – | – | | Other Employees (14) | 11,620,000 | 10,915,000 | 705,000 | – | | **Total** | **14,270,000** | **13,565,000** | **705,000** | **–** | - Vesting conditions for awarded shares include continued contribution to the Group's business, demonstrated in-service performance, and achievement of performance targets favorable to the Group's operational development[55](index=55&type=chunk)[56](index=56&type=chunk)[57](index=57&type=chunk) [Share Dealings and Corporate Governance](index=29&type=section&id=Share%20Dealings%20and%20Corporate%20Governance) Neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities during the review period, and the company complies with the Corporate Governance Code, with directors and controlling shareholders having no competing business interests, and directors and relevant employees adhering to securities dealing standards - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the review period[64](index=64&type=chunk) - The Company has complied with all code provisions of the Corporate Governance Code set out in Appendix C1 to the GEM Listing Rules[66](index=66&type=chunk) - The Directors, the Company's management, and controlling shareholders were not involved in any business directly or indirectly competing with the Group's business during the review period[67](index=67&type=chunk) - Directors and relevant employees have complied with the required standard of dealings in securities and the written guidelines for employees[68](index=68&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Shares](index=29&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Shares) During the review period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the review period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[64](index=64&type=chunk) [Corporate Governance](index=29&type=section&id=Corporate%20Governance) The company has applied and complied with all code provisions of the Corporate Governance Code set out in Appendix C1 to the GEM Listing Rules - The Company has applied the Corporate Governance Code set out in Appendix C1 to the GEM Listing Rules and has complied with all code provisions[65](index=65&type=chunk)[66](index=66&type=chunk) [Directors' and Controlling Shareholders' Interests in Competing Business](index=29&type=section&id=Directors'%20and%20Controlling%20Shareholders'%20Interests%20in%20Competing%20Business) The Directors, the company's management, and controlling shareholders were not involved in any business directly or indirectly competing with the Group's business during the review period - The Directors, the Company's management, and controlling shareholders were not involved in any business directly or indirectly competing with the Group's business during the review period[67](index=67&type=chunk) [Securities Transactions by Directors and Relevant Employees](index=29&type=section&id=Securities%20Transactions%20by%20Directors%20and%20Relevant%20Employees) The company adopted the required standard of dealings as per GEM Listing Rules for directors' securities transactions and established written guidelines for employees, with all directors and employees complying with relevant regulations - The Company has adopted the required standard of dealings set out in Rules 5.48 to 5.67 of the GEM Listing Rules as the code of conduct for Directors' dealings in the Company's securities[68](index=68&type=chunk) - The Directors confirm that they have complied with the required standard of dealings throughout the review period[68](index=68&type=chunk) - The Company has not identified any instances of employees violating the written guidelines for employees[68](index=68&type=chunk) [Audit Committee](index=30&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, reviews and oversees the company's financial reporting, risk management, and internal control systems, and has reviewed the financial statements in this interim report - The Audit Committee was established on December 15, 2016, and comprises three independent non-executive Directors[69](index=69&type=chunk) - Its primary responsibilities include reviewing and overseeing the company's financial reporting process, risk management, and internal control systems[69](index=69&type=chunk) - The Audit Committee has reviewed the unaudited condensed consolidated financial statements of the Group for the review period with management[69](index=69&type=chunk)

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) The Group reported significant growth in revenue, gross profit, and net profit for the six months ended June 30, 2025 | Indicator | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 917,139 | 317,444 | 188.9% | | Gross Profit | 413,139 | 142,723 | 189.5% | | Net Profit | 151,537 | 54,415 | 178.5% | | Adjusted Net Profit | 151,780 | 54,415 | 178.9% | [Interim Condensed Consolidated Financial Statements](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) This section presents the Group's financial performance and position, highlighting substantial growth in revenue and net profit, alongside a strengthened balance sheet [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Excellence Education Group achieved substantial revenue and net profit growth, driven by comprehensive quality education, leading to a significant increase in earnings per share | Indicator | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 917,139 | 317,444 | | Cost of Sales | (504,000) | (174,721) | | Gross Profit | 413,139 | 142,723 | | Profit Before Tax | 196,296 | 74,167 | | Income Tax Expense | (44,759) | (19,752) | | Profit for the Period | 151,537 | 54,415 | | Profit for the Period Attributable to Owners of the Company | 151,255 | 54,527 | | Basic Earnings Per Share | RMB 19.92 cents | RMB 7.25 cents | | Diluted Earnings Per Share | RMB 19.57 cents | RMB 7.23 cents | [Interim Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group maintained a robust asset structure with increased current assets, positive net current assets, and significant total equity growth | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Non-current Assets | 867,714 | 956,696 | | Current Assets | 1,170,342 | 880,712 | | Current Liabilities | 993,770 | 968,752 | | Net Current Assets (Liabilities) | 176,572 | (88,040) | | Non-current Liabilities | 258,557 | 214,947 | | Net Assets | 785,729 | 653,709 | | Equity Attributable to Owners of the Company | 778,364 | 653,709 | | Total Equity | 785,729 | 653,709 | [Notes to the Interim Condensed Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations of the Group's financial statements, covering general information, accounting policies, revenue, operating segments, and other financial disclosures [1. General Information](index=5&type=section&id=1.%20General%20Information) The company, incorporated in the Cayman Islands, primarily offers comprehensive quality education, full-time review, and tutoring services, with no controlling shareholder - Company's principal activities include comprehensive quality education, full-time review programs, tutoring programs, and other services[8](index=8&type=chunk) - As of June 30, 2025, the company had no controlling shareholder or ultimate controlling shareholder[8](index=8&type=chunk) [2.1 Basis of Preparation and Principal Accounting Policies](index=5&type=section&id=2.1%20Basis%20of%20Preparation%20and%20Principal%20Accounting%20Policies) Financial statements adhere to IAS 34 and HKEX Listing Rules on a going concern basis, with IFRS 21 adoption having no material impact - The financial statements are prepared in accordance with International Accounting Standard 34 and the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, on a going concern basis[9](index=9&type=chunk) - The first-time application of IFRS 21 (amended) "Lack of Exchangeability" had no material impact on the financial position and performance[11](index=11&type=chunk) [3. Revenue](index=7&type=section&id=3.%20Revenue) Group revenue primarily from comprehensive quality education, full-time review, and tutoring, with all revenue recognized over time, showing strong growth in H1 2025 | Business Type | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Comprehensive Quality Education Business | 723,324 | 117,969 | | Full-time Review Programs | 101,269 | 123,927 | | Tutoring Programs | 88,864 | 75,548 | | Others | 3,682 | – | | Total | 917,139 | 317,444 | - All revenue is recognized over time as services are transferred[12](index=12&type=chunk) [4. Operating Segments](index=7&type=section&id=4.%20Operating%20Segments) The Group operates with a single operating and reportable segment, where key operating decision-makers regularly review consolidated financial results, with revenue analyzed by major products and services - The Group has only one operating and reportable segment[13](index=13&type=chunk) | Products and Services | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Comprehensive Quality Education Business | 723,324 | 117,969 | | Full-time Review Programs | 101,269 | 123,927 | | Tutoring Programs | 88,864 | 75,548 | | Others | 3,682 | – | | Total | 917,139 | 317,444 | [5. Income Tax Expense](index=8&type=section&id=5.%20Income%20Tax%20Expense) Income tax expense for the period was RMB 44.759 million, primarily Chinese corporate income tax, with some Chinese subsidiaries benefiting from a preferential 20% tax rate for small and micro enterprises | Tax Type | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | China Corporate Income Tax | 50,477 | 19,949 | | China Withholding Income Tax | 5,000 | – | | Over-provision in Prior Periods | (16,984) | (117) | | Deferred Tax Expense (Credit) | 6,266 | (80) | | Total | 44,759 | 19,752 | - Chinese subsidiaries are subject to a 25% tax rate, while some entities certified as small and micro enterprises enjoy a preferential corporate income tax rate of 20%[17](index=17&type=chunk) [6. Profit for the Period](index=9&type=section&id=6.%20Profit%20for%20the%20Period) Profit for the period was net of various expenses, with significant increases in staff costs, depreciation, amortization, and research and development costs | Expense Item | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Auditor's Remuneration | 1,270 | 1,076 | | Total Depreciation and Amortization | 62,965 | 44,771 | | Research and Development Costs Recognized | 54,095 | 13,912 | | Directors' and Chief Executive's Emoluments | 4,792 | 5,438 | | Total Staff Costs | 459,164 | 131,738 | - The majority of staff costs and depreciation and amortization expenses are included in the cost of sales[18](index=18&type=chunk) [7. Dividends](index=10&type=section&id=7.%20Dividends) The Board resolved to declare an interim dividend of RMB 10.7 cents per share for the six months ended June 30, 2025, and the 2024 final dividend of RMB 96.226 million was distributed in the first half - The Board resolved to declare an interim dividend of **RMB 10.7 cents per share** (HKD 11.8 cents per share)[19](index=19&type=chunk) - The 2024 final dividend of **RMB 96.226 million** was paid on June 16, 2025[19](index=19&type=chunk) [8. Earnings Per Share](index=10&type=section&id=8.%20Earnings%20Per%20Share) Basic and diluted earnings per share significantly increased to RMB 19.92 cents and RMB 19.57 cents respectively, reflecting enhanced profitability | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Profit for Calculation of Basic and Diluted Earnings Per Share (RMB thousands) | 151,255 | 54,527 | | Weighted Average Number of Ordinary Shares for Basic EPS | 759,287,754 | 752,270,882 | | Weighted Average Number of Ordinary Shares for Diluted EPS | 772,716,532 | 754,665,665 | | Basic Earnings Per Share | RMB 19.92 cents | RMB 7.25 cents | | Diluted Earnings Per Share | RMB 19.57 cents | RMB 7.23 cents | [9. Financial Assets at Fair Value Through Profit or Loss](index=11&type=section&id=9.%20Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) Total financial assets at fair value through profit or loss increased to RMB 159.628 million, primarily comprising funds and bank wealth management products, with some unlisted trust plans and funds overdue | Asset Type | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Equity Investments – Unlisted Equity Investments | 9,714 | 9,043 | | Equity Investments – Listed Equity Investments | – | 23,333 | | Debt Instruments – Funds | 105,164 | 22,445 | | Debt Instruments – Bank Wealth Management Products | 32,237 | 50,585 | | Debt Instruments – Unlisted Trust Plans and Asset Management Plans | 12,513 | 12,513 | | Total | 159,628 | 117,919 | - As of June 30, 2025, unlisted trust plans and funds with a carrying amount of **RMB 34.958 million**, pledged with collateral properties, were overdue and not redeemed according to subscription agreement terms[21](index=21&type=chunk) | Fair Value Change Type | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Fair Value Changes of Equity Investments | 536 | 2,889 | | Fair Value Changes of Debt Investments | 3,193 | – | | Total | 3,729 | 2,889 | [10. Debt Instruments at Amortized Cost](index=12&type=section&id=10.%20Debt%20Instruments%20at%20Amortized%20Cost) Debt instruments measured at amortized cost amounted to RMB 19.386 million, with a total carrying amount of RMB 85.184 million in overdue debt instruments, and accumulated impairment losses of RMB 65.798 million recognized | Debt Instrument Type | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Corporate Debt | 19,386 | 19,386 | | Analyzed for Reporting Purposes as: Current Assets | 19,386 | 19,386 | - As of June 30, 2025, debt instruments with a total carrying amount of **RMB 85.184 million** were overdue, of which **RMB 56.209 million** were pledged with equity instruments as collateral[23](index=23&type=chunk) - The carrying amount of debt instruments at amortized cost includes accumulated impairment losses of **RMB 65.798 million**[23](index=23&type=chunk) [11. Share Capital of the Company](index=13&type=section&id=11.%20Share%20Capital%20of%20the%20Company) The company repurchased 719,000 ordinary shares for equity incentives at RMB 2.869 million, maintaining unchanged total share capital | Share Capital Type | June 30, 2025 (thousands of shares) | December 31, 2024 (thousands of shares) | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Authorized Share Capital | 3,000,000 | 3,000,000 | 1,070 | 1,070 | | Issued and Fully Paid Share Capital | 847,221 | 847,221 | 303 | 303 | - For the six months ended June 30, 2025, the company repurchased **719,000** of its own ordinary shares for equity incentive purposes, with a total consideration of approximately **RMB 2.869 million**[24](index=24&type=chunk) [Management Discussion and Analysis](index=14&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the Group's strong performance, strategic initiatives, and future outlook, highlighting growth drivers and operational achievements [Performance Overview](index=14&type=section&id=Performance%20Overview) The Group achieved substantial revenue and net profit growth of 188.9% and 178.5% respectively, demonstrating robust business momentum | Indicator | H1 2025 (RMB billions) | Year-on-year growth (%) | | :--- | :--- | :--- | | Revenue | 0.917 | 188.9% | | Net Profit | 0.152 | 178.5% | [Performance Review](index=14&type=section&id=Performance%20Review) The Group made significant strides in product quality, market expansion, AI integration, talent development, and shareholder returns, while actively fulfilling social responsibilities [I. Developing High-Quality Products and Enhancing Teaching Service Quality](index=14&type=section&id=I.%20Developing%20High-Quality%20Products%20and%20Enhancing%20Teaching%20Service%20Quality) The Group enriched its comprehensive quality education offerings, launched AI-powered learning tools, and implemented rigorous closed-loop management, achieving new highs in operating metrics - Launched the **"AI Picture Book Parent-Child Co-creation Course"** to enhance children's reading, language expression, creativity, and AI tool usage skills[26](index=26&type=chunk) - Utilized AI technology to create an **"AI-powered immersive classroom"** for enhanced learning and introduced **"AI·iReading 1.0"**, an AI adaptive learning tool for personalized reading assistance[27](index=27&type=chunk) - Implemented a **"pre-class-in-class-post-class"** closed-loop management system to ensure teaching quality, resulting in record-high operating metrics such as enrollment numbers and re-enrollment rates during the reporting period[28](index=28&type=chunk)[29](index=29&type=chunk) [II. Deepening Guangzhou Market Layout and Launching Shenzhen-Foshan Markets](index=16&type=section&id=II.%20Deepening%20Guangzhou%20Market%20Layout%20and%20Launching%20Shenzhen-Foshan%20Markets) The Group strengthened its Guangzhou market presence, focused on suburban recovery, and strategically expanded into Shenzhen and Foshan, leveraging local expertise to boost brand influence - Continued to cultivate the Guangzhou market, focusing on suburban market recovery, with significant improvements in single-store ramp-up, re-enrollment rates, and enrollment numbers[30](index=30&type=chunk) - Strategically accelerated expansion into the Shenzhen and Foshan markets, developing localized curriculum systems based on Guangzhou experience, achieving notable results and expanding brand influence in the Greater Bay Area[30](index=30&type=chunk) [III. AI Empowerment for Organizational Efficiency](index=16&type=section&id=III.%20AI%20Empowerment%20for%20Organizational%20Efficiency) The company fully implemented its 'ALL IN AI' strategy, integrating AI across key functions like teaching, marketing, and operations to significantly enhance efficiency - Fully implemented the **"ALL IN AI"** strategy, extensively applying AI technology across teaching, marketing, training, operations, finance, procurement, and recruitment functions[31](index=31&type=chunk) - In teaching, the **Jingzhun Education Intelligent Teaching System** integrated the DeepSeek R1 model for comprehensive teaching scenarios; intelligent grading systems and home-school communication tools enhanced teacher efficiency[31](index=31&type=chunk) - In marketing, AI outbound calls pre-screened vast resources, reducing costs; AI customer service extracted key information and performed quality checks, enabling precise marketing; AI judges improved teacher training efficiency and quality[32](index=32&type=chunk) [IV. Continuously Attracting and Cultivating Talent to Ignite Vitality](index=17&type=section&id=IV.%20Continuously%20Attracting%20and%20Cultivating%20Talent%20to%20Ignite%20Vitality) The Group adopted a dual-track talent strategy, enhancing teacher capabilities through specialized training programs and invigorating core talent via a restricted share unit scheme - Implemented a dual-track talent strategy of **"social recruitment + campus recruitment"**, with programs like the **"Yingkui Plan," "N Plan," and "Star Teacher Training Camp"** to help new teachers quickly master teaching skills[33](index=33&type=chunk) - The **"Fuguang Plan"** helped outstanding socially recruited teachers broaden their horizons and improve teaching quality, while company-wide AIGC courses enhanced employees' AI application capabilities[33](index=33&type=chunk) - The first tranche of restricted share units granted in 2024 completed vesting, effectively enhancing the sense of belonging and cohesion among core talent[34](index=34&type=chunk) [V. Prioritizing Shareholder Returns and Enhancing Investment Value](index=17&type=section&id=V.%20Prioritizing%20Shareholder%20Returns%20and%20Enhancing%20Investment%20Value) The company announced a 'Three-Year Dividend Plan' to progressively increase the dividend payout ratio to 50%, 60%, and 70% of net profit, actively conducted share repurchases, and strengthened investor relations through various channels, conveying strong confidence in future development - Announced a **"Three-Year Dividend Plan"**, aiming to increase the dividend payout ratio to **50%, 60%, and 70%** of the previous year's net profit attributable to owners of the company over the next three years[35](index=35&type=chunk) - Declared the 2024 final dividend and the 2025 interim dividend in the first half, and actively conducted share repurchases under the restricted share unit scheme[35](index=35&type=chunk) - Maintained close communication with investors through various channels, including earnings conferences and investor meetings, to convey timely, accurate, and transparent company information[35](index=35&type=chunk) [VI. Actively Fulfilling Social Responsibility with an Educator's Commitment](index=18&type=section&id=VI.%20Actively%20Fulfilling%20Social%20Responsibility%20with%20an%20Educator%27s%20Commitment) Under the guidance of Party building, the Group actively participated in various Party building and public welfare activities, caring for families with special needs children, supporting youth development, and earning the 'Public Welfare Partner' title, contributing to harmonious social development - Actively participated in Party building and public welfare activities under the guidance of Party building, fulfilling social responsibilities[36](index=36&type=chunk) - Organized the **"Colorful Fun Day" Huiling Farm Integrated Volunteer Service event** to care for families with special needs children, and sponsored the **Guangdong-Hong Kong-Macao Greater Bay Area Youth Spring Plowing Experience Camp**[36](index=36&type=chunk) - Participated in the **"Yi Qi Ying Quan Yun, Xie Shou Jian Kang Xing" (Together for the Games, Hand in Hand for Health) First Donghaochong Public Welfare Sports Meeting**, earning the title of **"Public Welfare Partner"**[36](index=36&type=chunk) [Future Outlook](index=19&type=section&id=Future%20Outlook) The Group will deepen AI empowerment in education, leverage the Greater Bay Area's demographic dividend for business growth, and strengthen core competitiveness in line with policy guidance to achieve sustainable growth [I. Deepening AI Empowerment and Accelerating Application in Education Scenarios](index=19&type=section&id=I.%20Deepening%20AI%20Empowerment%20and%20Accelerating%20Application%20in%20Education%20Scenarios) The Group will continue its 'ALL IN AI' strategy, launching 'personalized question recommendation' on its AI adaptive learning product line, investing in AI-driven motivational learning and energy systems to create 'AI learning companions,' and comprehensively enhancing teaching quality and operational efficiency - Will launch a **"personalized question recommendation"** feature on its AI adaptive learning product line to build a precise learning stratification system[37](index=37&type=chunk) - Will invest in developing an **AI-driven motivational learning and energy system** to create **"AI learning companions"** tailored to the psychological characteristics of children across different age groups[37](index=37&type=chunk) - Will continue to advance the **"ALL IN AI"** strategy, accelerating the deep integration and deployment of AI technology across various business segments and management processes, including teaching and operations[37](index=37&type=chunk) [II. Leveraging Bay Area Dividends to Expand Business Growth](index=19&type=section&id=II.%20Leveraging%20Bay%20Area%20Dividends%20to%20Expand%20Business%20Growth) The Group will capitalize on Guangdong Province's strong population attraction, talent aggregation, and robust willingness to invest in education, increasing resource allocation in the Greater Bay Area market, and enhancing market competitiveness by adding teaching outlets and strengthening faculty - Guangdong Province ranks first nationally in permanent resident population, new permanent residents, and birth population, with a continuously increasing proportion of household expenditure on education, culture, and entertainment[38](index=38&type=chunk) - The Group will leverage its established foundation and brand influence in Guangzhou, Shenzhen, and Foshan to increase resource investment in the Greater Bay Area market[39](index=39&type=chunk) - Will continuously enhance brand awareness and market competitiveness by deepening localized product features, adding teaching outlets, and strengthening faculty[39](index=39&type=chunk) [III. Following Policy Guidance and Strengthening Core Competitiveness](index=20&type=section&id=III.%20Following%20Policy%20Guidance%20and%20Strengthening%20Core%20Competitiveness) The company will closely monitor national policies encouraging childbirth, promoting consumption, and fostering high-quality education, adhere to compliant operations, integrate quality education with AI technology, enhance teaching quality, seize industry opportunities, and achieve sustainable growth - Will closely monitor national policies encouraging childbirth, promoting consumption, and fostering high-quality education, viewing them as positive drivers for long-term industry development[40](index=40&type=chunk) - Upholding the educational mission of **"everything for the healthy growth of children,"** the company prioritizes teaching quality and user reputation, adhering to the bottom line of compliant operations[40](index=40&type=chunk) - Will strategically advance the integration of quality education with AI technology, enhancing teaching quality, optimizing service experience, and strengthening its core competitiveness[40](index=40&type=chunk) [Financial Review](index=21&type=section&id=Financial%20Review) This section provides a detailed analysis of the Group's financial performance, liquidity, and capital structure, highlighting key drivers of revenue and profit growth [Revenue](index=21&type=section&id=Revenue) Total revenue surged by 188.9% to RMB 917.1 million, primarily driven by significant growth in comprehensive quality education and successful market expansion | Business Type | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Comprehensive Quality Education Business | 723,324 | 117,969 | 513.1% | | Full-time Review Programs | 101,269 | 123,927 | (18.3%) | | Tutoring Programs | 88,864 | 75,548 | 17.6% | | Others | 3,682 | – | Not Applicable | | Total | 917,139 | 317,444 | 188.9% | - Revenue growth was primarily due to continuous improvement in the quality of comprehensive quality education products and services, and significant achievements in market expansion in Guangzhou, Shenzhen, and Foshan[42](index=42&type=chunk) [Cost of Sales](index=21&type=section&id=Cost%20of%20Sales) Cost of sales increased by 188.5% from approximately RMB 174.7 million in H1 2024 to approximately RMB 504.0 million in the reporting period, primarily due to business expansion | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Cost of Sales | 504.0 | 174.7 | 188.5% | - Cost of sales primarily includes salaries and benefits, rental and utilities, depreciation and amortization, and other expenses, increasing with business expansion[43](index=43&type=chunk) [Gross Profit and Gross Profit Margin](index=21&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) Gross profit for the reporting period was approximately RMB 413.1 million, an increase of approximately RMB 270.4 million from H1 2024, with a gross profit margin of 45.0%, largely consistent with the prior year | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Change (RMB millions) | | :--- | :--- | :--- | :--- | | Gross Profit | 413.1 | 142.7 | 270.4 | | Gross Profit Margin | 45.0% | 45.0% | 0.0% | [Other Income](index=22&type=section&id=Other%20Income) Other income of approximately RMB 13.7 million was recorded for the reporting period, a 32.1% increase from the prior year, primarily attributable to interest income | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Other Income | 13.7 | 10.347 | 32.1% | | Of which: Interest Income | 12.3 | N/A | N/A | [Other Gains and Losses](index=22&type=section&id=Other%20Gains%20and%20Losses) Other gains and losses of approximately RMB 5.1 million were recorded for the reporting period, mainly from gains recognized due to changes in lease contracts under the adoption of IFRS 16 | Indicator | H1 2025 (RMB millions) | | :--- | :--- | | Other Gains and Losses | 5.1 | | Of which: Gains recognized from changes in lease contracts | 1.9 | [Fair Value Changes of Investments at Fair Value Through Profit or Loss](index=22&type=section&id=Fair%20Value%20Changes%20of%20Investments%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) Fair value changes of investments at fair value through profit or loss amounted to approximately RMB 3.7 million for the reporting period | Indicator | H1 2025 (RMB millions) | | :--- | :--- | | Fair Value Changes | 3.7 | [Selling Expenses](index=22&type=section&id=Selling%20Expenses) Total selling expenses increased by approximately 174.8% from RMB 22.7 million in H1 2024 to approximately RMB 62.5 million, primarily due to increased student recruitment costs driven by business expansion | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Selling Expenses | 62.5 | 22.7 | 174.8% | [Administrative Expenses](index=22&type=section&id=Administrative%20Expenses) Total administrative expenses amounted to approximately RMB 114.7 million, an increase of 180.0% from H1 2024, mainly due to higher administrative staff salaries and office expenses resulting from business expansion | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 114.7 | 40.9 | 180.0% | [Other Operating Expenses](index=22&type=section&id=Other%20Operating%20Expenses) Other operating expenses amounted to approximately RMB 54.1 million, a year-on-year increase of approximately 280.3%, primarily due to increased salaries for R&D and teaching research personnel as business expanded | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Other Operating Expenses | 54.1 | 14.231 | 280.3% | [Finance Costs](index=23&type=section&id=Finance%20Costs) Finance costs of approximately RMB 7.2 million were recorded for the reporting period, primarily interest expenses recognized on leases under the adoption of IFRS 16 | Indicator | H1 2025 (RMB millions) | | :--- | :--- | | Finance Costs | 7.2 | [Income Tax Expense](index=23&type=section&id=Income%20Tax%20Expense) Income tax expense for the reporting period amounted to approximately RMB 44.8 million | Indicator | H1 2025 (RMB millions) | | :--- | :--- | | Income Tax Expense | 44.8 | [Profit for the Period](index=23&type=section&id=Profit%20for%20the%20Period) The Group's profit for the period increased by 178.5% from approximately RMB 54.4 million in H1 2024 to approximately RMB 151.5 million in the reporting period | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Profit for the Period | 151.5 | 54.4 | 178.5% | [Non-GAAP Measures Regarding Profit for the Period](index=23&type=section&id=Non-GAAP%20Measures%20Regarding%20Profit%20for%20the%20Period) Adjusted net profit was RMB 151.8 million, a year-on-year increase of 178.9%, primarily adjusted by adding back equity-settled share-based payment expenses, used to assess business performance | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Net Profit | 151,537 | 54,415 | 178.5% | | Add: Equity-settled Share-based Payment Expenses | 243 | – | Not Applicable | | Adjusted Net Profit | 151,780 | 54,415 | 178.9% | - Adjusted net profit, a non-GAAP measure, is used to eliminate the impact of items not reflecting business performance, thereby assessing financial performance[54](index=54&type=chunk) [Liquidity and Financial Resources](index=24&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's cash and cash equivalents amounted to approximately RMB 473.0 million, primarily held in reputable banks | Indicator | June 30, 2025 (RMB millions) | | :--- | :--- | | Cash and Cash Equivalents | 473.0 | [Liquidity and Gearing Ratios](index=24&type=section&id=Liquidity%20and%20Gearing%20Ratios) As of June 30, 2025, the Group's current ratio increased to approximately 1.18, and the gearing ratio decreased to 0.61, indicating an improvement in financial position | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current Ratio | 1.18 | 0.91 | | Gearing Ratio | 0.61 | 0.64 | [Future Plans for Material Investments or Capital Assets](index=25&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) As of the date of this announcement, the Group has no future plans for any material investments or capital assets - As of the date of this announcement, the Group has no plans for any material investments or capital assets[58](index=58&type=chunk) [Material Investments, Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=25&type=section&id=Material%20Investments%2C%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) The Group holds approximately RMB 169.3 million in debt investments and RMB 9.7 million in equity investments, adopting a prudent and pragmatic investment strategy to maximize returns and ensure sufficient working capital, with no material acquisitions or disposals during the reporting period | Investment Type | June 30, 2025 (RMB millions) | Percentage of Total Assets | | :--- | :--- | :--- | | Debt Investments | 169.3 | 8.3% | | Equity Investments | 9.7 | 0.5% | - The Group adopts a prudent and pragmatic investment strategy, selecting relatively low-risk standard short-term financial products to ensure stable investment income[60](index=60&type=chunk) - There were no material investments, major acquisitions, or disposals of subsidiaries, associates, or joint ventures during the reporting period[60](index=60&type=chunk) [Contingent Liabilities](index=25&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no material contingent liabilities, guarantees, or litigations against it - As of June 30, 2025, the Group had no material contingent liabilities, guarantees, or litigations[61](index=61&type=chunk) [Pledge of Assets](index=25&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group had no material pledge of assets - As of June 30, 2025, the Group had no material pledge of assets[62](index=62&type=chunk) [Foreign Exchange Risk](index=26&type=section&id=Foreign%20Exchange%20Risk) The Group's transactions during the reporting period were primarily denominated in RMB, with foreign exchange risk mainly arising from short-term equity investments at fair value through profit or loss denominated in HKD, but no significant difficulties or impacts were encountered - The Group's transactions are primarily denominated in RMB, with foreign exchange risk mainly arising from short-term equity investments at fair value through profit or loss denominated in HKD[63](index=63&type=chunk) - During the reporting period, the Group did not encounter any significant difficulties or impacts due to currency exchange rate fluctuations, nor did it enter into any financial instruments for hedging purposes[63](index=63&type=chunk) [Bank Loans](index=26&type=section&id=Bank%20Loans) As of June 30, 2025, the Group had no bank loans or other borrowings - As of June 30, 2025, the Group had no bank loans or other borrowings[64](index=64&type=chunk) [Events After the Reporting Period](index=26&type=section&id=Events%20After%20the%20Reporting%20Period) No material events requiring disclosure occurred after the reporting period and up to the date of this announcement - No material events requiring disclosure occurred after the reporting period and up to the date of this announcement[65](index=65&type=chunk) [Human Resources](index=26&type=section&id=Human%20Resources) As of June 30, 2025, the Group's total number of employees increased to 3,592, with regular reviews of remuneration and provision of training to attract, retain, and enhance staff skills and knowledge | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Number of Employees | 3,592 | 3,072 | - The Group regularly reviews remuneration to attract and retain outstanding employees, and provides regular training to enhance employee skills and knowledge[66](index=66&type=chunk) [Other Information](index=27&type=section&id=Other%20Information) This section provides additional disclosures including interim dividend declaration, restricted share unit scheme details, corporate governance, and audit committee review [Interim Dividend](index=27&type=section&id=Interim%20Dividend) The Board resolved to declare an interim dividend of HKD 11.8 cents per ordinary share, totaling approximately RMB 90.753 million, payable on or about October 16, 2025 - The Board resolved to declare an interim dividend of **HKD 11.8 cents per ordinary share** (approximately **RMB 90.753 million**)[67](index=67&type=chunk) - The interim dividend will be paid on or about **October 16, 2025**, to shareholders whose names appear on the register of members on **September 26, 2025**[67](index=67&type=chunk) - To determine eligibility for the interim dividend, the company's share transfer registration will be suspended from **September 22, 2025, to September 26, 2025**[67](index=67&type=chunk) [Restricted Share Unit Scheme](index=27&type=section&id=Restricted%20Share%20Unit%20Scheme) On June 23, 2025, the company granted 1,912,875 restricted share units to 54 employees to reward and incentivize talent; as of June 30, 2025, the trustee held 107,411,469 shares, of which 31,483,750 shares had vested - On June 23, 2025, the company granted **1,912,875 restricted share units** to **54 employees**, aiming to reward and incentivize talent[68](index=68&type=chunk) - Based on individual and Group performance during the assessment period, **50%** of the restricted share units vested on April 7, 2025, with **23,329,946 shares** actually vested[69](index=69&type=chunk) - As of June 30, 2025, the trustee held **107,411,469 shares**, of which **31,483,750 shares** had vested and were awaiting transfer[69](index=69&type=chunk) [Corporate Governance Practices](index=28&type=section&id=Corporate%20Governance%20Practices) The company is committed to maintaining good corporate governance standards, having complied with the Corporate Governance Code except for the Chairman and CEO being the same person, an arrangement the Board believes ensures consistent internal leadership and enhances strategic planning and execution efficiency - The company has adopted the Corporate Governance Code set out in Appendix C1 of the Listing Rules and complied with its provisions during the reporting period[70](index=70&type=chunk) - The roles of Chairman and Chief Executive Officer are combined and held by Mr. Tang Junjing, an arrangement the Board believes ensures consistent internal leadership and enhances strategic planning and execution efficiency[70](index=70&type=chunk) [Standard Code for Securities Transactions](index=29&type=section&id=Standard%20Code%20for%20Securities%20Transactions) The company adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules, and all directors confirmed compliance during the reporting period after specific inquiries - The company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[72](index=72&type=chunk) - All directors confirmed compliance with the Standard Code during the reporting period[72](index=72&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=29&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Except for shares purchased by the trustee under the Restricted Share Unit Scheme, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the reporting period - Except for shares purchased by the trustee under the Restricted Share Unit Scheme, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the reporting period[73](index=73&type=chunk) [Audit Committee](index=29&type=section&id=Audit%20Committee) The Audit Committee, chaired by Mr. Gan Jun, discussed with management and reviewed the Group's unaudited interim financial information for the reporting period, confirming compliance with all applicable accounting standards and requirements and adequate disclosure - The Audit Committee comprises Mr. Gan Jun (Chairman), Ms. Long Yu, and Mr. Wu Wei[74](index=74&type=chunk) - The Audit Committee reviewed the interim results and confirmed compliance with applicable accounting principles, standards, and requirements, and that adequate disclosures were made[74](index=74&type=chunk) [Publication of 2025 Interim Results and Interim Report](index=30&type=section&id=Publication%20of%202025%20Interim%20Results%20and%20Interim%20Report) This announcement is published on the HKEXnews website and the company's website; the full interim report containing all information required by the Listing Rules will be published on these websites in due course - This announcement is published on the website of The Stock Exchange of Hong Kong Limited (www.hkexnews.hk) and the company's website (www.zy.com)[75](index=75&type=chunk) - The company's interim report for the reporting period, containing all information required by the Listing Rules, will be published on the aforementioned websites in due course[75](index=75&type=chunk) [By Order of the Board](index=30&type=section&id=By%20Order%20of%20the%20Board) This announcement is issued by Mr. Tang Junjing, Chairman, CEO, and Executive Director of Excellence Education Group, on behalf of the Board - This announcement is issued by Mr. Tang Junjing, Chairman, Chief Executive Officer, and Executive Director of Excellence Education Group, on behalf of the Board[76](index=76&type=chunk) [Board of Directors](index=30&type=section&id=Board%20of%20Directors) As of this announcement date, the Board comprises executive, non-executive, and independent non-executive directors, as listed - As of the date of this announcement, the executive directors are Mr. Tang Junjing, Mr. Tang Junying, Mr. Zhou Gui, and Ms. Guan Weiying[77](index=77&type=chunk) - The non-executive director is Mr. Wu Wei[77](index=77&type=chunk) - The independent non-executive directors are Ms. Long Yu, Mr. Gan Jun, and Mr. Shen Haipeng[77](index=77&type=chunk)

[Interim Results Announcement Summary](index=1&type=section&id=%E4%B8%AD%E6%9C%9F%E4%B8%9A%E7%BB%A9%E5%85%AC%E5%91%8A%E6%91%98%E8%A6%81) The Group achieved significant growth in profit attributable to shareholders and maintained a healthy gearing ratio, despite economic downturn and intensified competition [Key Financial Highlights](index=1&type=section&id=%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E4%BA%AE%E7%82%B9) Despite economic downturn and intensified industry competition, the Group achieved significant growth in profit attributable to shareholders and maintained a healthy gearing ratio through product portfolio optimization and cost control, while also increasing its interim dividend - Group revenue and sales volume decreased by **8%** and **14%** year-on-year respectively, impacted by the domestic economic downturn, weak consumer sentiment, and intensified industry competition[2](index=2&type=chunk) - The Group's overall gross profit margin increased to **24.8%**, a **1.7 percentage point** rise from the previous year, driven by optimized product portfolio and effective raw material cost control[2](index=2&type=chunk) - The solvents associate actively expanded export business, achieving a **2%** sales volume increase, but intensified market competition led to a decline in product unit prices, resulting in a **22%** decrease in the Group's share of profit to **HKD 38.6 million**[2](index=2&type=chunk) - Profit from the sale of idle land in Shanghai Jinshan resulted in property segment operating profit of **HKD 47.2 million** (HKD 21.2 million after tax), offsetting some property devaluation impacts[2](index=2&type=chunk) - Profit attributable to shareholders increased by **94%** year-on-year, reaching **HKD 66.1 million**[2](index=2&type=chunk) - The Group's gearing ratio remained at a healthy **18.0%**, providing flexibility for future investments[2](index=2&type=chunk) - The Board resolved to declare an interim dividend of **HKD 4 cents** per share, a **33%** increase from the previous year[2](index=2&type=chunk) Key Financial Data for the Six Months Ended June 30, 2025 | Metric | June 30, 2025 (HKD Thousand) | June 30, 2024 (HKD Thousand) | % Change | | :--- | :--- | :--- | :--- | | Revenue | 1,430,396 | 1,557,365 | -8% | | Sales Volume (Tons) | 117,000 | 136,000 | -14% | | Profit Attributable to Company Shareholders | 66,112 | 34,057 | +94% | | Earnings Per Share (HK Cents) | 11.8 | 6.0 | +97% | | Interim Dividend Per Share (HK Cents) | 4 | 3 | +33% | | Gearing Ratio* | 18.0% | 18.3% | -0.3 percentage points | *Calculated based on net bank borrowings as a percentage of equity attributable to company shareholders [Chairman's Statement](index=3&type=section&id=%E4%B8%BB%E5%B8%AD%E6%8A%A5%E5%91%8A) The Chairman's statement reviews the challenges of geopolitical tensions and weak domestic consumption in the first half, highlighting profit growth and strategic investments, while outlining a cautious yet proactive outlook for the second half [Review](index=3&type=section&id=%E4%B8%BB%E5%B8%AD%E6%8A%A5%E5%91%8A-%E5%9B%9E%E9%A1%BE) In the first half, the Group faced multiple challenges including geopolitical tensions, tariff wars, and weak domestic consumption, leading to a decline in revenue; however, through management efforts and cost control, gross profit was maintained, and profit attributable to shareholders significantly increased. Associate Qianxin Chemical actively expanded exports amidst market competition and successfully commissioned new acetic acid and acetate production lines, expected to enhance competitiveness - The operating environment in the first half was uncertain, with geopolitical tensions and US tariff wars negatively impacting the global economy and indirectly affecting the Group's downstream customers' export businesses[5](index=5&type=chunk) - Weak private consumption, dragged by falling asset prices and economic uncertainties in the domestic market, led to an **8%** year-on-year decrease in the Group's overall revenue to **HKD 1.43 billion**[5](index=5&type=chunk) - Despite a decline in product unit prices due to intense competition, the Group maintained gross profit at the same level as last year, with profit attributable to shareholders increasing by **94%** to **HKD 66.1 million**[5](index=5&type=chunk) - The Group's financial position remained robust, with a healthy gearing ratio of **18.0%** and an interim dividend of **HKD 4 cents** per share declared[6](index=6&type=chunk) - Associate Qianxin Chemical's solvent business was affected by intense competition and unit price reductions, but sales volume remained largely flat due to expanded exports to ASEAN and other regions, with profit decreasing by approximately **22%** year-on-year to **HKD 38.6 million**[6](index=6&type=chunk) - Qianxin Chemical's new **600,000-ton** acetic acid plant in Jingmen, Hubei, successfully commenced operations in May, and a new **600,000-ton** acetate production line started in July, marking a new milestone in its development, expected to reduce costs and enhance competitiveness[7](index=7&type=chunk) [Outlook](index=4&type=section&id=%E4%B8%BB%E5%B8%AD%E6%8A%A5%E5%91%8A-%E5%B1%95%E6%9C%9B) For the second half, the global economy is expected to recover with easing geopolitical tensions and interest rate cuts, and China's economic growth target is achievable. However, domestic consumer sentiment and intense competition issues require time to resolve. The Group will prioritize stability, continue cost reduction, strengthen competitiveness, and actively seek M&A opportunities to expand synergies and business - The global economy is expected to recover in the second half, driven by clearer "reciprocal tariff" policies, easing geopolitical tensions, and an interest rate cut cycle[8](index=8&type=chunk) - The Chinese government has strategies to navigate the China-US rivalry, with sustained domestic economic growth and achievable annual growth targets[8](index=8&type=chunk) - Improved domestic consumer sentiment and alleviation of intense competition are two key factors affecting the Group's business, expected to be challenging to resolve in the short term, though the government has introduced targeted solutions[8](index=8&type=chunk) - The Group will prioritize stability, intensify cost reduction efforts, strengthen its competitiveness, and actively seek M&A targets to expand synergies and business, laying the foundation for "Yip's Centennial"[8](index=8&type=chunk) [CEO's Report](index=5&type=section&id=%E8%A1%8C%E6%94%BF%E6%80%BB%E8%A3%81%E6%8A%A5%E5%91%8A) The CEO's report details the Group's resilience amidst economic slowdown and market competition, emphasizing effective cost control, profit growth, and a strategic vision for platform development through new products and M&A [Review](index=5&type=section&id=%E8%A1%8C%E6%94%BF%E6%80%BB%E8%A3%81%E6%8A%A5%E5%91%8A-%E5%9B%9E%E9%A1%BE) In the first half, the Group faced challenges from China's economic slowdown, reduced consumer sentiment, intense industry competition, and US tariff policies. Despite revenue decline, effective gross margin improvement and expense control led to profit growth, maintaining healthy cash flow and gearing ratios - In the first half, the Group faced a volatile economic environment, including slow economic development in China, reduced consumer sentiment, intense competition, and uncertainties in US tariff policies[10](index=10&type=chunk) - The Group's revenue declined, but significant improvements in gross margin and expense control led to profit growth compared to the previous year[10](index=10&type=chunk) - The Group's cash flow and gearing ratio both remained at healthy levels[10](index=10&type=chunk) Key Business Summary | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | HKD 1.43 billion | HKD 1.557 billion | Down 8% | | Sales Volume (Tons) | 117,000 | 136,000 | Down 14% | | Overall Gross Profit Margin | 24.8% | 23.1% | Up 1.7 percentage points | | Share of Profit from Solvents Associate | HKD 38.6 million | HKD 49.45 million | Down approx. 22% | | Property Segment Operating Profit | HKD 47.2 million | HKD 0.101 million | Significant Growth | | Profit Attributable to Shareholders | HKD 66.1 million | HKD 34.06 million | Up 94% | | Gearing Ratio (June 30, 2025) | 18.0% | 18.3% | Down 0.3 percentage points | [Outlook](index=7&type=section&id=%E8%A1%8C%E6%94%BF%E6%80%BB%E8%A3%81%E6%8A%A5%E5%91%8A-%E5%B1%95%E6%9C%9B) The Group will uphold its vision of being a "Fine Chemical Enterprise Development Platform" by developing new product lines and strictly controlling operating costs to consolidate its market position in existing businesses. Concurrently, it will actively seek strategic investment and acquisition opportunities with synergies to accelerate platform development and create long-term value for shareholders in a volatile environment - The Group will build upon its legacy, leveraging its controlling shareholder structure, Hong Kong listed company status, strong reputation, and operational experience in China to create a "Fine Chemical Enterprise Development Platform"[18](index=18&type=chunk) - Management will continue to improve and consolidate the market leading positions of the coatings, inks, and lubricants businesses by developing new product lines and strictly controlling operating costs[19](index=19&type=chunk) - The Group actively seeks strategic investment and acquisition opportunities with synergies to accelerate platform development and deliver long-term benefits to shareholders[19](index=19&type=chunk) [Business Review and Outlook](index=6&type=section&id=%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%BE%E4%B8%8E%E5%B1%95%E6%9C%9B) This section reviews the performance of coatings, inks, and lubricants businesses, noting varied impacts from market conditions, and outlines strategic initiatives for product development, market expansion, and associate investments [Coatings Business](index=6&type=section&id=%E6%B6%82%E6%96%99%E4%B8%9A%E5%8A%A1) Coatings business sales volume decreased by 20% and revenue fell by 7%. Architectural coatings were impacted by the sluggish real estate market, but industrial coatings performed well, especially plastic coatings, benefiting from the rise of Chinese toy brands, achieving revenue and profit growth. The coatings business gross profit margin improved to 28.8%, turning losses into profits. The Group plans to establish a production base in Vietnam to accelerate its Southeast Asian expansion Key Data for Coatings Business | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Sales Volume (Tons) | 79,000 | 98,750 | Down 20% | | Revenue | HKD 676 million | HKD 731 million | Down 7% | | Gross Profit Margin | 28.8% | 25.5% | Up 3.3 percentage points | | Segment Result | HKD 19.1 million | (HKD 10.08 million) | Turned Loss to Profit | - Architectural coatings business revenue declined due to the prolonged sluggishness in China's real estate market[12](index=12&type=chunk) - Industrial coatings developed well, particularly the "Hengchang" brand plastic coatings business, which achieved good growth benefiting from the rise of Chinese toy brands and new product development[12](index=12&type=chunk) - The Group plans to establish a production base in Vietnam to accelerate its Southeast Asian expansion, serve local industrial coatings customers, and mitigate future trade war impacts[13](index=13&type=chunk) [Inks Business](index=6&type=section&id=%E6%B2%B9%E5%A2%A8%E4%B8%9A%E5%8A%A1) Inks business sales volume remained flat, but revenue decreased by 8% due to lower selling prices. Despite gross profit margin improving to 20.9% through efficient management, segment profit fell by 64% year-on-year due to increased bad debt provisions from expanded credit risk for individual customers. The Group will continue to manage bad debt risks and leverage "Bauhinia" inks' leading position in the food packaging industry to develop new product lines such as electronic inks and inkjet Key Data for Inks Business | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Sales Volume (Tons) | 28,000 | 28,000 | Flat | | Revenue | HKD 591 million | HKD 644 million | Down 8% | | Gross Profit Margin | 20.9% | 20.0% | Up 0.9 percentage points | | Segment Profit | HKD 11.3 million | HKD 31.17 million | Down 64% | - The inks business faced challenges from intense industry competition, with flat sales volume but declining revenue due to lower selling prices[14](index=14&type=chunk) - The management team efficiently managed raw material and operating costs, achieving a gross profit margin of **20.9%**[14](index=14&type=chunk) - Increased bad debt provisions due to expanded credit risk for individual customers led to a significant decline in segment profit[14](index=14&type=chunk) - The Group will continue to manage customer bad debt risks and leverage "Bauhinia" inks' market leadership in the food packaging industry to develop new product lines such as electronic inks and inkjet[15](index=15&type=chunk) [Lubricants Business](index=7&type=section&id=%E6%B6%A6%E6%BB%91%E6%B2%B9%E4%B8%9A%E5%8A%A1) Lubricants business revenue decreased by 7%, gross profit margin fell by 1.7 percentage points, and profit decreased by 12% year-on-year. Automotive lubricant demand remained flat due to economic impacts. The Group will continue to steadily grow automotive lubricant sales and increase resources for R&D of industrial oils in niche markets, aiming for future growth Key Data for Lubricants Business | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | HKD 160 million | HKD 172 million | Down 7% | | Gross Profit Margin | 21.9% | 23.6% | Down 1.7 percentage points | | Profit | HKD 6.1 million | HKD 6.95 million | Down 12% | - Demand for automotive lubricants remained largely flat due to overall negative economic conditions[16](index=16&type=chunk) - Management's investment in the expansion of specialty industrial oils is expected to make them a future growth highlight[16](index=16&type=chunk) - The Group will continue to steadily grow automotive lubricant sales, expand into third and fourth-tier cities, and increase resources for R&D of industrial oils in niche markets[16](index=16&type=chunk) [Investment in Solvents Associate](index=7&type=section&id=%E6%8A%95%E8%B5%84%E4%BA%8E%E6%BA%B6%E5%89%82%E8%81%94%E8%90%A5%E5%85%AC%E5%8F%B8) The Group holds a 24% interest in Qianxin Chemical, whose sales volume slightly increased by 2%, but due to declining selling prices, it contributed HKD 38.6 million to the Group. In the first half, Qianxin Chemical completed its acetic acid plant in Hubei, with new capacities of 600,000 tons of acetic acid and 600,000 tons of acetate expected to be gradually released, potentially leading to greater economies of scale and sustained enhancement of its profit contribution to the Group - The Group holds a **24%** effective interest in Qianxin Chemical, the world's largest acetate solvent company[17](index=17&type=chunk) - The solvents associate's sales volume slightly increased by **2%**, but due to declining selling prices, it contributed **HKD 38.6 million** to the Group[17](index=17&type=chunk) - The associate completed the construction of its acetic acid plant in Hubei, with new capacities of **600,000 tons** of acetic acid and **600,000 tons** of acetate expected to be gradually released in the second half, potentially leading to greater economies of scale[17](index=17&type=chunk) [Financial Review](index=9&type=section&id=%E8%B4%A2%E5%8A%A1%E5%9B%9E%E9%A1%BE) The financial review highlights the Group's stable liquidity, healthy gearing ratio, and prudent financial management, including foreign exchange risk mitigation and a focus on sustainable growth through potential investments [Liquidity and Financial Resources](index=9&type=section&id=%E6%B5%81%E5%8A%A8%E8%B5%84%E9%87%91%E5%8F%8A%E8%B4%A2%E5%8A%A1%E8%B5%84%E6%BA%90) The Group maintained a healthy and low gearing ratio of 18.0% and actively managed foreign exchange risks. Net cash outflow from operating activities decreased in the first half, primarily due to a lower increase in trade receivables. Total bank borrowings decreased, but net bank borrowings slightly increased. The Group had no significant expenditures or investments but is actively seeking potential investment and acquisition opportunities for sustainable growth Key Data for Liquidity and Financial Resources | Metric | June 30, 2025 (HKD Thousand) | June 30, 2024 (HKD Thousand) | Change | | :--- | :--- | :--- | :--- | | Gearing Ratio | 18.0% | 18.3% | Down 0.3 percentage points | | Net Cash Used in Operating Activities | (48,116) | (91,075) | Outflow Decreased | | Total Bank Borrowings | 1,103,146 | 1,226,713 (Dec 31, 2024) | Decreased | | Net Bank Borrowings | 705,000 | 632,336 (Dec 31, 2024) | Increased | | Total Bank Facilities | 2,819,931 | - | - | - The RMB exchange rate increased by **3.4%**, and the Group prudently managed foreign exchange risks by increasing RMB loans and other measures[22](index=22&type=chunk) - There were no significant expenditures or investments in the first half, with medium-to-long-term loans accounting for **41%** of all bank loans[24](index=24&type=chunk) - The Group entered into interest rate swap and cross-currency swap agreements with banks to hedge against interest rate and exchange rate fluctuation risks and reduce financing costs[24](index=24&type=chunk) - The Group has bank facilities totaling **HKD 2,819,931,000**, with **51%** denominated in HKD and **49%** in RMB[25](index=25&type=chunk) - The Group holds no pledged assets or significant contingent liabilities and is actively seeking potential investment and acquisition opportunities for sustainable growth[25](index=25&type=chunk) [Human Resources](index=10&type=section&id=%E4%BA%BA%E5%8A%9B%E8%B5%84%E6%BA%90) This section details the Group's employee numbers and commitment to human resource development, emphasizing training, talent retention, and competitive compensation to foster a skilled workforce [Staff Numbers and Management](index=10&type=section&id=%E5%91%98%E5%B7%A5%E4%BA%BA%E6%95%B0%E5%8F%8A%E7%AE%A1%E7%90%86) As of June 30, 2025, the Group had 2,151 employees, predominantly from mainland China. The Group highly values human resource management and development, enhancing employee skills through internal and external training, education sponsorship programs, and job rotations. The Group offers a challenging work environment and diverse incentive mechanisms, reviewing remuneration and reward policies based on market trends to attract and retain talent Employee Distribution | Region | Number of Employees | | :--- | :--- | | Mainland China | 2,080 | | Hong Kong | 60 | | Other Countries | 11 | | **Total** | **2,151** | - The Group encourages employee self-improvement and enhances work skills and performance through internal and external training courses, job rotations, and education sponsorship programs[27](index=27&type=chunk) - The Group regularly identifies employees with development potential, formulates development plans, and actively recruits outstanding management talent externally[27](index=27&type=chunk) - The Group offers competitive remuneration and benefits, including basic salary and performance-based bonuses, to attract and retain talent[28](index=28&type=chunk) [Corporate Governance and Other Information](index=11&type=section&id=%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) This section confirms the Company's compliance with corporate governance codes, details the Audit Committee's role, and provides information on securities transactions by directors and announcement publications [Purchase, Sale or Redemption of Listed Securities](index=11&type=section&id=%E8%B4%AD%E4%B9%B0%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B5%8E%E5%9B%9E%E4%B8%8A%E5%B8%82%E8%AF%81%E5%88%B8) 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. At period-end, the Company held 10,024,000 treasury shares - For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities[29](index=29&type=chunk) - As of June 30, 2025, the Company held **10,024,000** treasury shares[30](index=30&type=chunk) [Corporate Governance](index=11&type=section&id=%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB) For the six months ended June 30, 2025, the Company complied with the code provisions in Part 2 of the Corporate Governance Code as set out in Appendix C1 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited - The Company complied with the code provisions in Part 2 of the Corporate Governance Code as set out in Appendix C1 to the HKEX Listing Rules[31](index=31&type=chunk) [Audit Committee](index=11&type=section&id=%E5%AE%A1%E6%A0%B8%E5%A7%94%E5%91%98%E4%BC%9A) The Audit Committee comprises three independent non-executive directors, chaired by Mr. Koo Yee Tao. Its primary responsibilities include reviewing financial information, overseeing financial reporting systems, risk management, and internal control procedures, and monitoring the relationship with external auditors. The Committee has reviewed the Group's unaudited interim financial report for the six months ended June 30, 2025 - The Audit Committee comprises three independent non-executive directors: Mr. Koo Yee Tao (Chairman), Mr. Ho Pak Chuen, and Ms. Yau Ching Man[32](index=32&type=chunk) - Key responsibilities include reviewing the Group's financial information, overseeing financial reporting systems, risk management and internal control procedures, and monitoring the relationship with external auditors[32](index=32&type=chunk) - The Audit Committee reviewed the Group's unaudited interim financial report for the six months ended June 30, 2025, on August 19, 2025[32](index=32&type=chunk) [Standard Securities Dealing Code for Directors of Listed Issuers](index=11&type=section&id=%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E8%BF%9B%E8%A1%8C%E8%AF%81%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%88%99) The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules and confirmed that all directors complied with the code for the six months ended June 30, 2025 - The Company adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[33](index=33&type=chunk) - All directors confirmed compliance with the required standards of the Model Code for the six months ended June 30, 2025[33](index=33&type=chunk) [Unaudited Interim Results](index=12&type=section&id=%E6%9C%AA%E7%BB%8F%E5%AE%A1%E6%A0%B8%E4%B8%AD%E6%9C%9F%E4%B8%9A%E7%BB%A9) This section presents the condensed consolidated financial statements, including the statement of profit or loss, financial position, and cash flows, along with detailed notes on accounting policies and segment information [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=12&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E6%8D%9F%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the Group's revenue was HKD 1,430,396 thousand, and profit for the period was HKD 64,910 thousand, a significant increase from the prior year. Profit attributable to company shareholders was HKD 66,112 thousand, with basic earnings per share of HKD 11.8 cents Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | June 30, 2025 (HKD Thousand) | June 30, 2024 (HKD Thousand) | | :--- | :--- | :--- | | Revenue | 1,430,396 | 1,557,365 | | Gross Profit | 354,294 | 359,244 | | Profit Before Tax | 100,953 | 39,337 | | Profit for the Period | 64,910 | 33,551 | | Profit for the Period Attributable to Company Shareholders | 66,112 | 34,057 | | Earnings Per Share (Basic) | 11.8 HK Cents | 6.0 HK Cents | [Condensed Consolidated Statement of Financial Position](index=14&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5%E8%A1%A8) As of June 30, 2025, the Group's total assets less current liabilities were HKD 4,197,676 thousand, and net assets were HKD 3,940,304 thousand. Non-current assets primarily included property, plant and equipment, investment properties, and interests in associates. Trade receivables constituted a significant portion of current assets. Current liabilities mainly comprised trade and other payables and borrowings due within one year Summary of Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (HKD Thousand) | Dec 31, 2024 (HKD Thousand) | | :--- | :--- | :--- | | Non-current Assets | 3,721,634 | 3,716,713 | | Current Assets | 2,406,606 | 2,359,065 | | Current Liabilities | 1,930,564 | 1,927,090 | | Net Current Assets | 476,042 | 431,975 | | Net Assets | 3,940,304 | 3,811,482 | | Equity Attributable to Company Shareholders | 3,917,787 | 3,789,127 | | Trade Receivables (Net of Provision) | 1,400,192 | 1,308,119 | | Borrowings - Due within One Year | 891,546 | 932,313 | | Borrowings - Due after One Year | 211,600 | 294,400 | [Condensed Consolidated Statement of Cash Flows](index=16&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the six months ended June 30, 2025, the Group's net cash used in operating activities was HKD 48,116 thousand, net cash used in investing activities was HKD 2,971 thousand, and net cash used in financing activities was HKD 159,385 thousand. Cash and cash equivalents at period-end were HKD 394,457 thousand, a decrease from the beginning of the period Summary of Condensed Consolidated Statement of Cash Flows | Metric | June 30, 2025 (HKD Thousand) | June 30, 2024 (HKD Thousand) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (48,116) | (91,075) | | Net Cash (Used in) Generated from Investing Activities | (2,971) | 172,089 | | Net Cash Used in Financing Activities | (159,385) | (253,242) | | Net Decrease in Cash and Cash Equivalents | (210,472) | (172,228) | | Cash and Cash Equivalents at End of Period | 394,457 | 431,177 | [Notes](index=18&type=section&id=%E9%99%84%E6%B3%A8) This section provides detailed notes on the basis of preparation, principal accounting policies, revenue and segment information, other income and gains/losses, profit before tax, taxation, dividends, earnings per share, movements in property, plant and equipment and investment properties, trade receivables, and trade and other payables [Basis of Preparation](index=18&type=section&id=%E7%BC%96%E8%A3%BD%E5%9F%BA%E5%87%86) The condensed consolidated financial information is 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 the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited - The condensed consolidated financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and the HKEX Listing Rules[41](index=41&type=chunk) [Principal Accounting Policies](index=18&type=section&id=%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96) The condensed consolidated financial information is prepared on a historical cost basis, except for investment properties and certain financial instruments measured at fair value. The accounting policies and methods of computation adopted for this period are consistent with those in the annual consolidated financial report for the year ended December 31, 2024 - The condensed consolidated financial information is prepared on a historical cost basis, with investment properties and certain financial instruments measured at fair value[42](index=42&type=chunk) - The accounting policies and methods of computation adopted for this period are consistent with those in the annual consolidated financial report for the year ended December 31, 2024[42](index=42&type=chunk) [Revenue and Segment Information](index=18&type=section&id=%E8%90%A5%E4%B8%9A%E9%A2%9D%E5%8F%8A%E5%88%86%E7%B1%BB%E8%B5%84%E6%96%99) Group revenue represents amounts received and receivable from the sale of goods and rendering of services (net of discounts and value-added tax) and rental income during the period. By customer location, mainland China remains the primary market, but overseas (mainly Southeast Asian) market revenue increased. The Group reports operating segment information by four business segments: coatings, inks, lubricants, and property Geographical Market Revenue by Customer Location | Region | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Mainland China | 1,378,350 | 1,513,038 | | Hong Kong | 29,256 | 30,123 | | Overseas (mainly Southeast Asian countries) | 22,790 | 14,204 | | **Total** | **1,430,396** | **1,557,365** | - The Group's reportable segments include four business divisions: coatings, inks, lubricants, and property[46](index=46&type=chunk) - Segment results represent profit earned by each segment before unallocated share of results of associates, unallocated income, and unallocated expenses (mainly central administrative expenses, directors' emoluments, and finance costs)[47](index=47&type=chunk) H1 2025 Segment Revenue and Results | Segment | Revenue (HKD Thousand) | Segment Result (HKD Thousand) | | :--- | :--- | :--- | | Coatings | 676,413 | 19,120 | | Inks | 590,661 | 11,315 | | Lubricants | 160,274 | 6,093 | | Property | 3,048 | 47,226 | | **Total Segments** | **1,427,348** | **83,754** | | Share of Results of Associates | - | 38,599 | | **Profit Before Tax** | - | **100,953** | H1 2024 Segment Revenue and Results | Segment | Revenue (HKD Thousand) | Segment Result (HKD Thousand) | | :--- | :--- | :--- | | Coatings | 730,974 | (10,076) | | Inks | 644,371 | 31,171 | | Lubricants | 172,285 | 6,949 | | Property | 5,305 | 101 | | **Total Segments** | **1,547,630** | **28,145** | | Share of Results of Associates | - | 49,449 | | **Profit Before Tax** | - | **39,337** | [Other Income and Other Gains and Losses](index=22&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E4%BB%A5%E5%8F%8A%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E5%8F%8A%E4%BA%8F%E6%8D%9F) The Group's other income primarily includes interest income, government grants, dividend income from financial assets, and commissioned product processing income. Regarding other gains and losses, the period recorded a gain of HKD 35,001 thousand, mainly due to a gain of HKD 60,023 thousand from the disposal of land use rights, but offset by a significant increase of HKD 25,487 thousand in expected credit loss provisions for trade and other receivables, and a fair value loss of HKD 9,773 thousand on investment properties Other Income | Item | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Interest Income | 7,324 | 14,043 | | Government Grants | 6,926 | 7,979 | | Dividend Income from Financial Assets at FVTPL | 11,075 | 11,591 | | Commissioned Product Processing Income | 10,751 | – | | Others | 5,757 | 8,668 | | **Total** | **41,833** | **42,281** | Other Gains (Losses) | Item | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Provision for Expected Credit Losses on Trade and Other Receivables | (25,487) | (6,048) | | Fair Value Loss on Investment Properties | (9,773) | (2,737) | | Net Exchange Gains (Losses) from Foreign Currency Balances and Transactions | 12,344 | (7,754) | | Gain on Disposal of Land Use Rights | 60,023 | – | | **Total** | **35,001** | **(21,113)** | - During the period, a provision for expected credit losses of **HKD 25,487 thousand** was made for trade and other receivables, of which **HKD 20,454 thousand** was a specific loss provision for an individual customer[52](index=52&type=chunk) - The Group completed the disposal of idle land use rights in Shanghai Jinshan in June 2025, recognizing a pre-tax gain of **HKD 60,023 thousand** and receiving proceeds of **HKD 20,817 thousand**[53](index=53&type=chunk) [Profit Before Tax](index=23&type=section&id=%E9%99%A4%E7%A8%8E%E5%89%8D%E7%BA%AF%E5%88%A9) For the six months ended June 30, 2025, the Group's profit before tax was HKD 100,953 thousand, primarily after deducting recognized cost of inventories, amortization of intangible assets, and depreciation of property, plant and equipment (net of capitalized portion) Components of Profit Before Tax | Item | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Cost of Inventories Recognized as Cost of Sales | 1,076,102 | 1,198,121 | | Amortization of Intangible Assets | 1,015 | 1,016 | | Depreciation of Property, Plant and Equipment (Net of Capitalized Portion) | 19,510 | 22,800 | | **Profit Before Tax** | **100,953** | **39,337** | [Taxation](index=23&type=section&id=%E7%A8%8E%E9%A1%B9) Total taxation for the period was HKD 36,043 thousand, primarily comprising PRC enterprise income tax and land appreciation tax. PRC subsidiaries are subject to a 25% enterprise income tax rate, with some high-tech or western encouraged industry enterprises enjoying a preferential rate of 15%. Hong Kong profits tax is calculated at 16.5% with a two-tiered profits tax regime. Withholding tax mainly applies to PRC interest income and dividend distributions Components of Taxation | Item | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Current Tax - PRC Enterprise Income Tax | 10,235 | 4,270 | | Current Tax - Land Appreciation Tax | 26,674 | – | | Current Tax - Withholding Tax | 52 | 59 | | Current Tax - Overseas | 270 | 200 | | Over-provision in Prior Years - PRC | (940) | (1,272) | | Deferred Tax Expense (Credit) | (248) | 2,529 | | **Total** | **36,043** | **5,786** | - Hong Kong profits tax is calculated at **16.5%** of estimated assessable profits and operates under a two-tiered system[56](index=56&type=chunk) - PRC subsidiaries are subject to an enterprise income tax rate of **25%**, with some high-tech enterprises or western encouraged industry enterprises enjoying a preferential rate of **15%**[57](index=57&type=chunk) - Withholding tax primarily refers to interest income (**7%**) and dividend distributions (**10%**) sourced from mainland China; a **5%** dividend withholding tax rate may apply to Hong Kong resident companies directly owning **25%** of the equity[58](index=58&type=chunk) [Dividends](index=25&type=section&id=%E8%82%A1%E6%81%AF) For the six months ended June 30, 2025, the Group declared and paid a final dividend of HKD 11 cents per share for the year 2024, totaling approximately HKD 61,431 thousand. The Board resolved to declare an interim dividend of HKD 4 cents per share for the six months ended June 30, 2025, totaling approximately HKD 22,338 thousand (excluding treasury shares), payable on or about October 31, 2025 Dividend Distribution Details | Dividend Type | Payment Date | Amount Per Share (HK Cents) | Total Amount (HKD Thousand) | | :--- | :--- | :--- | :--- | | 2024 Final Dividend | July 2025 | 11 | 61,431 | | 2023 Final Dividend | July 2024 | 10 | 56,848 | | H1 2025 Interim Dividend | On or about Oct 31, 2025 | 4 | 22,338 | | H1 2024 Interim Dividend | - | 3 | - | [Earnings Per Share](index=25&type=section&id=%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) Basic earnings per share attributable to company shareholders are calculated based on the profit for the period and the weighted average number of shares. For the six months ended June 30, 2025, basic earnings per share were HKD 11.8 cents, with a weighted average of 558,460 thousand shares (adjusted for treasury shares). Diluted earnings per share are not presented as there are no issued potential ordinary shares Basic Earnings Per Share Calculation | Item | 2025 (HKD Thousand/Thousand Shares) | 2024 (HKD Thousand/Thousand Shares) | | :--- | :--- | :--- | | Profit for the Period Attributable to Company Shareholders | 66,112 | 34,057 | | Weighted Average Number of Shares for Basic EPS Calculation | 558,460 | 568,484 | | **Basic Earnings Per Share** | **11.8 HK Cents** | **6.0 HK Cents** | - The weighted average number of shares used for calculating basic earnings per share has been adjusted for **10,024,000** treasury shares[63](index=63&type=chunk) - Diluted earnings per share are not presented as there are no issued potential ordinary shares[63](index=63&type=chunk) [Movements in Property, Plant and Equipment and Investment Properties](index=26&type=section&id=%E7%89%A9%E4%B8%9A%E3%80%81%E5%8E%82%E6%88%BF%E5%8F%8A%E8%AE%BE%E5%A4%87%E4%BB%A5%E5%8F%8A%E6%8A%95%E8%B5%84%E7%89%A9%E4%B8%9A%E4%B9%8B%E5%8F%98%E5%8A%A8) In the first half, the Group spent approximately HKD 25,157 thousand on acquiring property, plant and equipment, and recognized right-of-use assets of HKD 1,428 thousand from new lease agreements. The Group disposed of investment properties with a carrying amount of HKD 1,278 thousand and recognized a net fair value decrease of HKD 9,773 thousand on investment properties Movements in Property, Plant and Equipment and Investment Properties | Item | H1 2025 (HKD Thousand) | H1 2024 (HKD Thousand) | | :--- | :--- | :--- | | Acquisition of Property, Plant and Equipment | 25,157 | 26,462 | | Recognition of Right-of-Use Assets (Lease Agreements) | 1,428 | 4,859 | | Cash Consideration from Disposal of Investment Properties | 1,278 | Nil | | Net Fair Value Decrease on Investment Properties | 9,773 | 2,737 | [Trade Receivables](index=26&type=section&id=%E8%B4%B8%E6%98%93%E5%BA%94%E6%94%B6%E6%AC%BE%E9%A1%B9) As of June 30, 2025, the Group's trade receivables (net of credit loss provisions) amounted to HKD 1,400,192 thousand. Ageing analysis shows that zero to three-month receivables constitute the largest portion, with the Group offering credit terms of 30 to 90 days, and longer terms for large or long-term customers with good payment records Trade Receivables and Ageing Analysis | Item | June 30, 2025 (HKD Thousand) | Dec 31, 2024 (HKD Thousand) | | :--- | :--- | :--- | | Trade Receivables (from Customer Contracts) | 1,490,864 | 1,372,606 | | Less: Provision for Credit Losses | (90,672) | (64,487) | | **Net Trade Receivables** | **1,400,192** | **1,308,119** | | **Ageing Analysis (Net):** | | | | 0-3 Months | 710,714 | 609,804 | | 4-6 Months | 193,820 | 252,477 | | Over 6 Months | 167,768 | 130,857 | | **Total** | **1,072,302** | **993,138** | - The Group offers credit terms ranging from **30 to 90 days** to trade customers, with longer terms potentially granted to large or long-term customers with good payment records[66](index=66&type=chunk) [Trade and Other Payables](index=27&type=section&id=%E5%BA%94%E4%BB%98%E8%B4%A6%E6%AC%BE%E5%8F%8A%E5%BA%94%E8%AE%A1%E8%B4%B9%E7%94%A8) As of June 30, 2025, the Group's total trade and other payables amounted to HKD 880,764 thousand, primarily comprising trade payables, bills payable, and other payables. Ageing analysis of trade payables indicates that most are due within zero to three months Components of Trade and Other Payables | Item | June 30, 2025 (HKD Thousand) | Dec 31, 2024 (HKD Thousand) | | :--- | :--- | :--- | | Trade Payables | 419,115 | 418,549 | | Bills Payable | 257,457 | 284,187 | | Other Payables and Accrued Expenses | 204,192 | 222,436 | | **Total** | **880,764** | **925,172** | | **Ageing Analysis of Trade Payables:** | | | | 0-3 Months | 368,629 | 358,797 | | 4-6 Months | 45,304 | 55,646 | | Over 6 Months | 5,182 | 4,106 | | **Total** | **419,115** | **418,549** | [Dividend Distribution and Share Registration](index=28&type=section&id=%E8%82%A1%E6%81%AF%E6%B4%BE%E5%8F%91%E5%8F%8A%E8%BF%87%E6%88%B7%E7%99%BB%E8%AE%B0) This section announces the interim dividend declaration and payment details, along with the dates for the closure of the register of members to determine dividend entitlement [Interim Dividend Distribution](index=28&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF%E6%B4%BE%E5%8F%91) The Board resolved to declare an interim dividend of HKD 4 cents per share (H1 2024: HKD 3 cents per share) for the six months ended June 30, 2025, payable on or about October 31, 2025, to shareholders registered on the Company's register of members on September 24, 2025 - The Board resolved to declare an interim dividend of **HKD 4 cents** per share (H1 2024: **HKD 3 cents** per share) for the six months ended June 30, 2025[68](index=68&type=chunk) - The interim dividend will be paid on or about October 31, 2025, to shareholders registered on the Company's register of members on September 24, 2025[68](index=68&type=chunk) [Closure of Register of Members](index=28&type=section&id=%E6%9A%82%E5%81%9C%E5%8A%9E%E7%90%86%E8%BF%87%E6%88%B7%E7%99%BB%E8%AE%B0%E6%89%8B%E7%BA%8C) To determine eligibility for the interim dividend, the Company's register of members will be closed from September 19, 2025, to September 24, 2025 (both dates inclusive). All transfer forms, accompanied by the relevant share certificates, must be lodged with the Company's Hong Kong Share Registrar, Tricor Investor Services Limited, by 4:30 p.m. on September 18, 2025 - The Company's register of members will be closed from **September 19, 2025, to September 24, 2025**, to determine eligibility for the interim dividend[69](index=69&type=chunk) - To qualify for the interim dividend, all transfer forms, accompanied by relevant share certificates, must be lodged with the Company's Hong Kong Share Registrar, Tricor Investor Services Limited, by **4:30 p.m. on September 18, 2025**[69](index=69&type=chunk) [Company Information](index=28&type=section&id=%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF) This section provides details on the publication of the announcement and interim report, along with the current composition of the Board of Directors [Announcement Publication](index=28&type=section&id=%E5%85%AC%E5%91%8A%E5%8F%91%E5%B8%83) This announcement has been published on the HKEX website (http://www.hkex.com.hk) and the Company's website (http://www.yipschemical.com). The Company's 2025 interim report will be published on the HKEX and Company websites in due course - This announcement has been published on the HKEX website and the Company's website[70](index=70&type=chunk) - The Company's 2025 interim report will be published on the HKEX and Company websites in due course[70](index=70&type=chunk) [Board of Directors](index=28&type=section&id=%E8%91%A3%E4%BA%8B%E4%BC%9A%E6%88%90%E5%91%98) As of the date of this announcement, the Board of Directors includes Non-executive Directors Mr. Yip Chi Shing (Chairman), Mr. Ho Pak Chuen*, Mr. Koo Yee Tao*, Ms. Yau Ching Man*, and Executive Directors Mr. Yip Tsz Hin (Vice Chairman), Mr. Yip Kwan (Chief Executive Officer), and Mr. Ho Sai Ho (Chief Financial Officer). (* denotes Independent Non-executive Directors) - The Board of Directors includes Non-executive Directors Mr. Yip Chi Shing (Chairman), Mr. Ho Pak Chuen*, Mr. Koo Yee Tao*, and Ms. Yau Ching Man*[71](index=71&type=chunk) - Executive Directors include Mr. Yip Tsz Hin (Vice Chairman), Mr. Yip Kwan (Chief Executive Officer), and Mr. Ho Sai Ho (Chief Financial Officer)[71](index=71&type=chunk) - Mr. Ho Pak Chuen, Mr. Koo Yee Tao, and Ms. Yau Ching Man are Independent Non-executive Directors[71](index=71&type=chunk)