[Interim Results Announcement](index=1&type=section&id=Interim%20Results%20Announcement) [Company Information and Announcement](index=1&type=section&id=Company%20Information%20and%20Announcement) PRECIOUS DRAGON TECHNOLOGY HOLDINGS LIMITED (Stock Code: 1861) announced its unaudited condensed consolidated financial results for the six months ended June 30, 2025, which have been reviewed by Ernst & Young and the Audit Committee, providing comparative figures for the same period in 2024 - Company Name: PRECIOUS DRAGON TECHNOLOGY HOLDINGS LIMITED, Stock Code: **1861**[2](index=2&type=chunk) - The announcement presents unaudited condensed consolidated financial results for the six months ended June 30, 2025, with comparative figures for the six months ended June 30, 2024[3](index=3&type=chunk) - The results have been reviewed by the Group's external auditor, Ernst & Young, and the Company's Audit Committee[3](index=3&type=chunk) [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [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's revenue significantly increased by **18.4%** to **HK$324,749 thousand**, with profit for the period surging by **119.8%** to **HK$52,711 thousand**, and basic and diluted earnings per share rising to **22.5 HK cents**, indicating a substantial improvement in profitability Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (HK$ Thousand) | Indicator | For the six months ended June 30, 2025 (HK$ Thousand) | For the six months ended June 30, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 324,749 | 274,248 | +18.4% | | Cost of Sales | (180,589) | (183,802) | -1.7% | | Gross Profit | 144,160 | 90,446 | +59.4% | | Other Income and Gains | 26,422 | 8,816 | +199.7% | | Selling and Distribution Expenses | (69,728) | (23,464) | +197.2% | | Administrative Expenses | (22,597) | (23,051) | -2.0% | | Research and Development Expenses | (11,169) | (10,772) | +3.7% | | Profit Before Tax | 64,463 | 33,918 | +90.0% | | Income Tax Expense | (11,752) | (9,940) | +18.2% | | Profit for the Period | 52,711 | 23,978 | +119.8% | | Total Comprehensive Income for the Period | 55,631 | 23,811 | +133.6% | | Basic Earnings Per Share Attributable to Owners of the Parent | 22.5 HK cents | 10.3 HK cents | +118.4% | [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 net current assets significantly increased by **74.3%** to **HK$168,140 thousand**, total assets less current liabilities rose to **HK$414,332 thousand**, and total equity grew to **HK$381,111 thousand**, indicating a robust improvement in financial position Key Data from Condensed Consolidated Statement of Financial Position (HK$ Thousand) | Indicator | As of June 30, 2025 (HK$ Thousand) | As of December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 246,192 | 266,839 | -7.7% | | Total Current Assets | 285,701 | 209,691 | +36.2% | | Total Current Liabilities | 117,561 | 113,207 | +3.8% | | Net Current Assets | 168,140 | 96,484 | +74.3% | | Total Assets Less Current Liabilities | 414,332 | 363,323 | +14.0% | | Total Non-current Liabilities | 33,221 | 37,843 | -12.3% | | Net Assets | 381,111 | 325,480 | +17.1% | | Total Equity | 381,111 | 325,480 | +17.1% | [Notes to the Condensed Consolidated Financial Information](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Information) [Basis of Preparation and Changes in Accounting Policies](index=6&type=section&id=Basis%20of%20Preparation%20and%20Changes%20in%20Accounting%20Policies) The interim condensed consolidated financial information is prepared in accordance with IAS 34 and is consistent with the accounting policies adopted in the 2024 annual consolidated financial statements, with the initial adoption of the revised IAS 21 'Lack of Exchangeability' having no impact on the Group's financial information - The financial information is prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' and should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2024[8](index=8&type=chunk) - The revised International Accounting Standard 21 'Lack of Exchangeability' was adopted for the first time, but it had no impact on the financial information as the Group's transaction and functional currencies are all exchangeable[9](index=9&type=chunk)[10](index=10&type=chunk) [Revenue Analysis](index=7&type=section&id=Revenue%20Analysis) For the six months ended June 30, 2025, total revenue from contracts with customers was **HK$324,749 thousand**, primarily from automotive beauty and maintenance products and personal care products, with the Chinese mainland market being the largest contributor Total Revenue (HK$ Thousand) | Indicator | For the six months ended June 30, 2025 (HK$ Thousand) | For the six months ended June 30, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Revenue from contracts with customers | 324,749 | 274,248 | [Segment Revenue Information](index=7&type=section&id=Segment%20Revenue%20Information) Revenue by Product Type and Geographical Market for the Six Months Ended June 30, 2025 (HK$ Thousand) | Category | Automotive Beauty and Maintenance Products | Personal Care Products | Total | | :--- | :--- | :--- | :--- | | **Product Type** | | | | | Product Sales | 257,822 | 66,927 | 324,749 | | **Geographical Market** | | | | | Chinese Mainland | 220,517 | 63,203 | 283,720 | | Japan | 25,340 | — | 25,340 | | Other Asia Pacific Countries/Regions | 2,881 | 2,884 | 5,765 | | Middle East | 3,080 | — | 3,080 | | Americas | 3,326 | — | 3,326 | | Other Regions | 2,678 | 840 | 3,518 | Revenue by Product Type and Geographical Market for the Six Months Ended June 30, 2024 (HK$ Thousand) | Category | Automotive Beauty and Maintenance Products | Personal Care Products | Total | | :--- | :--- | :--- | :--- | | **Product Type** | | | | | Product Sales | 209,847 | 64,401 | 274,248 | | **Geographical Market** | | | | | Chinese Mainland | 167,783 | 54,888 | 222,671 | | Japan | 31,087 | — | 31,087 | | Other Asia Pacific Countries/Regions | 3,186 | 4,514 | 7,700 | | Middle East | 4,040 | — | 4,040 | | Americas | 2,612 | 3,716 | 6,328 | | Other Regions | 1,139 | 1,283 | 2,422 | [Components of Profit Before Tax](index=9&type=section&id=Components%20of%20Profit%20Before%20Tax) For the six months ended June 30, 2025, profit before tax was primarily influenced by cost of inventories sold, depreciation, R&D costs, employee benefits expense, net exchange gains, and net gain on disposal of property, plant and equipment, with the gain on property disposal being significant Key Deductions/(Additions) to Profit Before Tax (HK$ Thousand) | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Cost of inventories sold | 180,589 | 183,802 | | Depreciation of property, plant and equipment | 9,287 | 12,381 | | Depreciation of right-of-use assets | 766 | 763 | | Research and development costs | 11,169 | 10,772 | | Employee benefits expense | 22,780 | 25,241 | | Net exchange (gains)/losses | (6,525) | 5,993 | | Net (gain)/loss on disposal of items of property, plant and equipment | (14,230) | 35 | | Write-down/(reversal of write-down) of inventories to net realisable value | 1,069 | (518) | [Income Tax Expense](index=10&type=section&id=Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense was **HK$11,752 thousand**, primarily from Chinese mainland, with Hong Kong profits tax rate at **16.5%** and a two-tiered profits tax rate applicable to some subsidiaries - Hong Kong profits tax rate is **16.5%**, with the first **HK$2,000,000** of assessable profits for eligible subsidiaries taxed at **8.25%**[16](index=16&type=chunk) Income Tax Expense (HK$ Thousand) | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Current - Chinese mainland for the period | 12,228 | 9,898 | | Underprovision in prior years | 12 | 153 | | Deferred | (488) | (111) | | **Total** | **11,752** | **9,940** | [Dividends](index=10&type=section&id=Dividends) For the six months ended June 30, 2025, the proposed interim dividend is **3.24 HK cents** per ordinary share, a significant increase of **128.2%** from **1.42 HK cents** in the prior year Proposed Interim Dividends (HK$ Thousand) | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Proposed interim - per ordinary share | 3.24 HK cents | 1.42 HK cents | | Total amount | 7,579 | 3,322 | [Earnings Per Share Attributable to Owners of the Parent](index=11&type=section&id=Earnings%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Parent) For the six months ended June 30, 2025, both basic and diluted earnings per share were **22.5 HK cents**, a significant increase from **10.3 HK cents** in the prior year, primarily based on profit attributable to owners of the parent of **HK$52,711 thousand**, with no adjustment for anti-dilutive share options Earnings Per Share Calculation (HK$ Thousand) | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Profit attributable to owners of the parent for the purpose of calculating basic and diluted earnings per share | 52,711 | 23,978 | | Weighted average number of ordinary shares in issue for the purpose of calculating basic earnings per share | 233,917,250 shares | 233,917,250 shares | | Basic and diluted earnings per share | 22.5 HK cents | 10.3 HK cents | - No adjustment for dilution was made as the unexercised share options had an anti-dilutive effect on the basic earnings per share presented[19](index=19&type=chunk) [Trade and Bills Receivables](index=12&type=section&id=Trade%20and%20Bills%20Receivables) As of June 30, 2025, total trade and bills receivables amounted to **HK$69,391 thousand**, an increase from **HK$46,791 thousand** as of December 31, 2024, with the highest proportion aged within **30 days** Ageing Analysis of Trade and Bills Receivables (HK$ Thousand) | Ageing | As of June 30, 2025 (HK$ Thousand) | As of December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Within 30 days | 31,364 | 20,724 | | 31 to 60 days | 16,250 | 13,804 | | 61 to 90 days | 13,825 | 6,422 | | Over 90 days | 7,952 | 5,841 | | **Total** | **69,391** | **46,791** | [Trade and Bills Payables](index=12&type=section&id=Trade%20and%20Bills%20Payables) As of June 30, 2025, total trade and bills payables were **HK$42,322 thousand**, a slight increase from **HK$41,620 thousand** as of December 31, 2024, with the largest proportion aged within **30 days** Ageing Analysis of Trade and Bills Payables (HK$ Thousand) | Ageing | As of June 30, 2025 (HK$ Thousand) | As of December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Within 30 days | 22,900 | 22,206 | | 31 to 60 days | 5,835 | 8,620 | | 61 to 90 days | 3,783 | 6,977 | | Over 90 days | 9,804 | 3,817 | | **Total** | **42,322** | **41,620** | [Management Discussion and Analysis](index=13&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=13&type=section&id=Business%20Review) The Group is a leading Chinese manufacturer of automotive beauty and maintenance aerosol products, engaged in designing, developing, manufacturing, and selling various automotive beauty and maintenance products, as well as personal care products. Operating under CMS and OBM models, the OBM business primarily sells proprietary brands through distributors and online platforms, with significant growth in online market sales during the reporting period due to increased resource allocation - The Group is a leading Chinese manufacturer of automotive beauty and maintenance aerosol products, including car cleaning, paint coatings, winter/summer specialty products, and air fresheners[24](index=24&type=chunk) - Business models include Contract Manufacturing Services (CMS) and Original Brand Manufacturing (OBM), with OBM products sold through a distributor network and online platforms like Tmall and JD.com under proprietary brands (e.g., Botny, ATM)[24](index=24&type=chunk) - For the period ended June 30, 2025, the Group increased resources to develop its OBM business, achieving significant growth in online market sales through brand awareness campaigns and e-commerce strategies[25](index=25&type=chunk) [Operating Environment and Outlook](index=14&type=section&id=Operating%20Environment%20and%20Outlook) The global economy faces uncertainties from trade protectionism, international conflicts, and raw material price volatility. China's economy grew steadily in H1 2025 but recovery remains fragile, presenting opportunities and challenges from aerosol product safety and environmental regulations. The Group will monitor industry developments, adjust strategies, strengthen proprietary brand promotion, expand into new markets, and enhance OBM business competitiveness through eco-friendly formulations, cost control, and brand enhancement - The global economy faces high uncertainty, influenced by trade protectionism, international conflicts, and raw material price volatility[26](index=26&type=chunk) - China's economy grew steadily in H1 2025, but recovery is fragile, with government implementing aerosol product safety and environmental regulations, and consumers focusing on eco-friendly products[27](index=27&type=chunk) - The Group will continue to enhance its OBM business through exhibitions, eco-friendly formulations, strict cost control, brand image improvement, and increased product competitiveness[27](index=27&type=chunk) [Financial Review](index=14&type=section&id=Financial%20Review) The Group's H1 2025 financial performance was strong, with significant growth in both turnover and net profit, primarily driven by successful e-commerce strategies for OBM products in China, lower raw material costs, and a one-off gain from yacht disposal. Selling and distribution expenses increased significantly due to e-commerce platform promotions [Turnover](index=14&type=section&id=Turnover) Turnover Changes (HK$ Million) | Item | For the six months ended June 30, 2025 (HK$ Million) | For the six months ended June 30, 2024 (HK$ Million) | Change (%) | | :--- | :--- | :--- | :--- | | Total Turnover | 324.7 | 274.2 | +18.4% | | Revenue from Chinese customers | 283.7 | 222.7 | +27.4% | | Revenue from overseas customers | 41.0 | 51.6 | -20.5% | - Significant increase in Chinese sales was primarily due to the steady recovery of the Chinese economy and successful execution of effective e-commerce sales strategies for OBM products[28](index=28&type=chunk) - Decrease in overseas sales was mainly due to weak demand in key export markets, global supply chain disruptions, exchange rate fluctuations, and increased geopolitical uncertainties[29](index=29&type=chunk) [Cost of Sales](index=15&type=section&id=Cost%20of%20Sales) Cost of Sales Changes (HK$ Million) | Item | For the six months ended June 30, 2025 (HK$ Million) | For the six months ended June 30, 2024 (HK$ Million) | Change (%) | | :--- | :--- | :--- | :--- | | Cost of Sales | 180.6 | 183.8 | -1.7% | | As a percentage of turnover | 55.6% | 67.0% | -11.4 percentage points | - Decrease in cost of sales was primarily due to economies of scale from increased product sales, improved procurement strategies, lower average raw material prices (e.g., tinplate containers, solvents, and gasoline), and optimization of automation and manufacturing processes[30](index=30&type=chunk) [Gross Profit and Gross Margin](index=15&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross Profit Changes (HK$ Million) | Item | For the six months ended June 30, 2025 (HK$ Million) | For the six months ended June 30, 2024 (HK$ Million) | Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 144.2 | 90.4 | +59.4% | - Significant increase in gross profit was primarily attributable to the successful e-commerce sales strategy for high-margin OBM products, lower raw material prices, improved procurement strategies, and optimization of automation and manufacturing processes[31](index=31&type=chunk) [Other Income and Gains](index=15&type=section&id=Other%20Income%20and%20Gains) Other Income and Gains Changes (HK$ Million) | Item | For the six months ended June 30, 2025 (HK$ Million) | For the six months ended June 30, 2024 (HK$ Million) | Change (%) | | :--- | :--- | :--- | :--- | | Other Income and Gains | 26.4 | 8.8 | +199.7% | - The increase was primarily due to a disposal gain of approximately **HK$14.3 million** from the sale of a yacht, and net exchange gains from favorable foreign currency exchange rate movements[32](index=32&type=chunk) [Selling and Distribution Expenses](index=16&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and Distribution Expenses Changes (HK$ Million) | Item | For the six months ended June 30, 2025 (HK$ Million) | For the six months ended June 30, 2024 (HK$ Million) | Change (%) | | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 69.7 | 23.5 | +197.2% | | Advertising and promotion costs | 53.9 | 9.5 | +467.4% | - The significant increase was primarily due to higher advertising and promotion costs to enhance e-commerce platforms[33](index=33&type=chunk) [Administrative Expenses](index=16&type=section&id=Administrative%20Expenses) Administrative Expenses Changes (HK$ Million) | Item | For the six months ended June 30, 2025 (HK$ Million) | For the six months ended June 30, 2024 (HK$ Million) | Change (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 22.6 | 23.1 | -2.0% | - The decrease in administrative expenses was primarily due to the implementation of strict cost control measures to reduce general expenses[34](index=34&type=chunk) [Finance Costs](index=16&type=section&id=Finance%20Costs) Finance Costs Changes (HK$ Million) | Item | For the six months ended June 30, 2025 (HK$ Million) | For the six months ended June 30, 2024 (HK$ Million) | Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs | 0.7 | 1.0 | -28.0% | - The decrease in finance costs was primarily due to a lower average outstanding balance of bank borrowings compared to the same period in 2024[35](index=35&type=chunk) [Net Profit](index=16&type=section&id=Net%20Profit) Net Profit Attributable to Owners of the Parent Changes (HK$ Million) | Item | For the six months ended June 30, 2025 (HK$ Million) | For the six months ended June 30, 2024 (HK$ Million) | Change (%) | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Owners of the Parent | 52.7 | 24.0 | +119.8% | - The significant increase in net profit was a combined effect of the successful e-commerce strategy for high-margin OBM products, increased selling and distribution expenses, gain from yacht disposal, and net exchange gains[36](index=36&type=chunk) [Liquidity and Capital Resources](index=17&type=section&id=Liquidity%20and%20Capital%20Resources) The Group is committed to maintaining adequate cash and cash equivalents and prudently managing borrowing costs. As of June 30, 2025, both net current assets and current ratio significantly improved, and the gearing ratio turned negative, indicating a robust financial position [Treasury Policy](index=17&type=section&id=Treasury%20Policy) - The Group has adopted a treasury policy aimed at more effective control over treasury operations and reducing borrowing costs[37](index=37&type=chunk) - Committed to maintaining adequate levels of cash and cash equivalents, and considering multiple funding sources to ensure financial resources are utilized in the most cost-effective and efficient manner[37](index=37&type=chunk) [Net Current Assets](index=17&type=section&id=Net%20Current%20Assets) Liquidity Position (HK$ Million) | Item | As of June 30, 2025 (HK$ Million) | As of December 31, 2024 (HK$ Million) | Change (%) | | :--- | :--- | :--- | :--- | | Net Current Assets | 168.1 | 96.5 | +74.2% | | Cash and cash equivalents (including pledged bank deposits) | 158.6 | 110.5 | +43.5% | | Current ratio | 2.4 | 1.9 | +26.3% | - Cash and cash equivalents are primarily denominated in Renminbi, US dollars, Japanese Yen, Thai Baht, and Hong Kong dollars[38](index=38&type=chunk) [Borrowings and Pledged Assets](index=17&type=section&id=Borrowings%20and%20Pledged%20Assets) Borrowings and Available Facilities (HK$ Million) | Item | As of June 30, 2025 (HK$ Million) | As of December 31, 2024 (HK$ Million) | Change (%) | | :--- | :--- | :--- | :--- | | Bank borrowings | 21.2 | 25.3 | -16.2% | | Available unutilised bank facilities | 350.5 | 337.5 | +3.8% | - Bank borrowings are secured by property, plant and equipment, and leasehold land, maturing between 2026 and 2027, and bear interest with reference to the minimum lending rate and Loan Market Quoted Rate[39](index=39&type=chunk) [Gearing Ratio](index=17&type=section&id=Gearing%20Ratio) Gearing Ratio Changes | Item | As of June 30, 2025 | As of December 31, 2024 | Change (percentage points) | | :--- | :--- | :--- | :--- | | Gearing ratio | -10.7% | 4.0% | -14.7 | - The improvement in gearing ratio was primarily due to an increase in cash and cash equivalents and a decrease in total borrowings[40](index=40&type=chunk) [Other Significant Matters](index=18&type=section&id=Other%20Significant%20Matters) This section covers the company's share issuance, foreign exchange risk management, employee and remuneration policies, material investments, acquisitions and disposals, future capital plans, capital commitments, contingent liabilities, and listed securities transactions during the reporting period, confirming no significant events occurred after the reporting period [Issued Shares](index=18&type=section&id=Issued%20Shares) Total Number of Issued Shares | Date | Total number of issued shares | | :--- | :--- | | June 30, 2025 | 233,917,250 shares | | December 31, 2024 | 233,917,250 shares | [Foreign Exchange and Currency Risk](index=18&type=section&id=Foreign%20Exchange%20and%20Currency%20Risk) - Approximately **12.6%** of revenue is denominated in US dollars, while over **90%** of production costs are settled in Renminbi, leading to foreign exchange risk due to currency mismatch[42](index=42&type=chunk) - No foreign currency forward contracts were entered into during the reporting period[42](index=42&type=chunk) [Employees and Remuneration Policy](index=18&type=section&id=Employees%20and%20Remuneration%20Policy) Number of Employees and Staff Costs (HK$ Million) | Item | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Number of employees | 460 persons | 468 persons | | Staff costs (for the six months ended June 30) | 20.7 HK$ Million | 23.3 HK$ Million | - Remuneration policy is determined with reference to market terms, individual employee performance, qualifications, and experience, and includes year-end bonuses and share options[43](index=43&type=chunk) [Material Investments](index=18&type=section&id=Material%20Investments) - As of June 30, 2025, the Group had no material investments[44](index=44&type=chunk) [Material Acquisitions and Disposals](index=19&type=section&id=Material%20Acquisitions%20and%20Disposals) - On June 27, 2025, the wholly-owned subsidiary Botny Yacht Limited disposed of a yacht for a consideration of **HK$35,021,737**[45](index=45&type=chunk) - Save for the aforementioned yacht disposal, there were no other material acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period[45](index=45&type=chunk) [Future Plans for Material Investments or Capital Assets](index=19&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) - Save as disclosed in the prospectus, the Group had no other approved plans for material investments or capital assets as of June 30, 2025[46](index=46&type=chunk) [Capital Commitments](index=19&type=section&id=Capital%20Commitments) Capital Commitments (HK$ Million) | Item | As of June 30, 2025 (HK$ Million) | As of December 31, 2024 (HK$ Million) | Change (%) | | :--- | :--- | :--- | :--- | | Commitments for plant and machinery | 0.3 | 0.5 | -40.0% | [Contingent Liabilities](index=19&type=section&id=Contingent%20Liabilities) - As of June 30, 2025, the Group had no material contingent liabilities[48](index=48&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=19&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Listed%20Securities) - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the reporting period[49](index=49&type=chunk) [Events After Reporting Period](index=19&type=section&id=Events%20After%20Reporting%20Period) - No significant events occurred after June 30, 2025, and up to the date of this announcement[50](index=50&type=chunk) [Corporate Governance](index=20&type=section&id=Corporate%20Governance) [Audit Committee](index=20&type=section&id=Audit%20Committee) The Audit Committee, established on May 27, 2019, comprises three independent non-executive directors responsible for recommending external auditors, reviewing financial statements, financial reporting procedures, risk management, and internal control systems, and has reviewed the Group's accounting principles, policies, and interim financial statements - The Audit Committee, composed of three independent non-executive directors, is responsible for recommending external auditors, reviewing financial statements, providing financial reporting advice, and monitoring risk management and internal controls[51](index=51&type=chunk) - The Audit Committee, in conjunction with management, has reviewed the Group's accounting principles and policies and discussed the unaudited condensed consolidated financial statements for the six months ended June 30, 2025[51](index=51&type=chunk) [Remuneration Committee](index=20&type=section&id=Remuneration%20Committee) The Remuneration Committee, established on May 27, 2019, consists of one executive director and three independent non-executive directors, responsible for recommending remuneration policies and structures for all directors and senior management, and approving individual executive directors' remuneration packages - The Remuneration Committee comprises four members, including one executive director and three independent non-executive directors, responsible for recommending remuneration policies and structures for directors and senior management[52](index=52&type=chunk) [Nomination Committee](index=20&type=section&id=Nomination%20Committee) The Nomination Committee, established on May 27, 2019, consists of one executive director and three independent non-executive directors, responsible for reviewing board composition, formulating director nomination and appointment procedures, assessing the independence of independent non-executive directors, and developing succession plans for executive directors and senior executives - The Nomination Committee comprises four members, including one executive director and three independent non-executive directors, responsible for reviewing board composition, formulating director nomination procedures, and assessing independence[53](index=53&type=chunk) - The Committee assesses the effectiveness, integrity, and independence of directors, ensuring a balanced mix of expertise, skills, and experience among board members[53](index=53&type=chunk) [Compliance with Corporate Governance Code](index=21&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Company has complied with the Corporate Governance Code throughout the reporting period, except for the combined roles of Chairman and Chief Executive Officer held by Ms. Gao Xiumei. The Board believes this arrangement facilitates unified leadership and efficient decision-making, with sufficient checks and balances, and will consider separating the roles when appropriate - The Company has complied with the Corporate Governance Code throughout the reporting period, except for the combined roles of Chairman and Chief Executive Officer held by Ms. Gao Xiumei[54](index=54&type=chunk) - The Board believes this combined role ensures unified leadership and more efficient overall strategic planning, with sufficient checks and balances provided by the three independent non-executive directors on the Board[55](index=55&type=chunk) [Sufficiency of Public Float](index=21&type=section&id=Sufficiency%20of%20Public%20Float) For the six months ended June 30, 2025, and up to the date of this announcement, the Company has maintained a sufficient public float of not less than **25%** of its total issued shares as required by the Listing Rules - For the six months ended June 30, 2025, and up to the date of this announcement, the Company has maintained a sufficient public float (not less than **25%** of the total issued shares) as required by the Listing Rules[56](index=56&type=chunk) [Standard Code for Securities Transactions by Directors](index=21&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted the Standard Code as set out in Appendix C3 of the Listing Rules, and all Directors confirm compliance with the Code throughout the reporting period - The Company has adopted the Standard Code as set out in Appendix C3 of the Listing Rules, and all Directors confirm compliance with the Code throughout the reporting period[57](index=57&type=chunk) [Other Information](index=22&type=section&id=Other%20Information) [Declaration of Dividends](index=22&type=section&id=Declaration%20of%20Dividends) The Board has resolved to declare an interim dividend of **3.24 HK cents** per share for the six months ended June 30, 2025, a significant increase of **128.2%** from **1.42 HK cents** in the prior year, payable on or about October 28, 2025 Interim Dividend Declaration (Per Share) | Item | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Interim dividend (per share) | 3.24 HK cents | 1.42 HK cents | +128.2% | - The dividend will be paid on or about October 28, 2025, to shareholders whose names appear on the Company's register of members on September 10, 2025[58](index=58&type=chunk) [Closure of Register of Members](index=22&type=section&id=Closure%20of%20Register%20of%20Members) To qualify for the interim dividend, the Company will suspend its share transfer registration from September 5 to September 10, 2025 (both dates inclusive), with all share transfer documents to be lodged with the Hong Kong share registrar by 4:30 p.m. on September 4, 2025 - The register of members will be closed from September 5 to September 10, 2025[59](index=59&type=chunk) - All share transfer documents, 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 4, 2025[59](index=59&type=chunk) [Publication of Interim Results and Report](index=22&type=section&id=Publication%20of%20Interim%20Results%20and%20Report) This interim results announcement has been published on the HKEX website and the Company's website, and the interim report for the six months ended June 30, 2025, will be dispatched to shareholders and published on the relevant websites in due course - This interim results announcement has been published on the HKEX website (www.hkex.com.hk) and the Company's website (http://www.botny.com)[60](index=60&type=chunk) - The interim report for the six months ended June 30, 2025, will be dispatched to the Company's shareholders and published on the HKEX and Company websites in due course[60](index=60&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部 分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 （股份代號：524） （於百慕達註冊成立之有限公司） 截至二零二五年六月三十日止六個月 中期業績 長城天下控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本公司及其 附屬公司截至二零二五年六月三十日止六個月之未經審核綜合業績。 財務摘要： • 收益約為49,100,000港元（二零二四年：約36,900,000港元）。 • 毛利約為2,900,000港元（二零二四年：約2,600,000港元）。 • 本期間歸屬於本公司擁有人之虧損約為6,600,000港元（二零二四年：約 10,500,000港元）。 • 每股基本虧損約為3.3港仙（二零二四年：約5.3港仙）。 • 董事會不建議就截至二零二五年六月三十日止六個月派付任何股息（二零 二四年：無）。 目錄 | 公司資料 | 2 | | --- | --- | | 簡明綜合損益表 | 3 | | 簡明綜合損益及其他全面收益表 | 4 | | ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何 部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 PARKSON RETAIL GROUP LIMITED 百盛商業集團有限公 司 （於開曼群島註冊成立的有限公司） （股份代號：3368） 截至二零二五年六月三十日止六個月的中期業績 摘要 期內經營收益總額為人民幣1,962.8百萬元，較去年同期的人民幣1,944.7百萬元增 加0.9%。 期內同店銷售（「同店銷售」）下降18.4%。 期內銷售所得款項總額（「銷售所得款項總額」）（含增值稅）為人民幣4,155.3百萬 元，同比下降11.5%。 期內經營利潤為人民幣257.6百萬元，較去年同期的人民幣193.8百萬元增加人民幣 63.8百萬元。 期內本公司所有人應佔利潤為人民幣22.5百萬元，而去年同期錄得本公司所有人 應佔虧損人民幣18.6百萬元。 已宣派中期股息每股人民幣0.02元。 截至二零二五年六月三十日止六個月的中期業績 百盛商業集團有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此公佈 ...

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布的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公布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。 財務摘要 1 截 至 2025 年 6 月 3 0 日 止 六 個 月，本 集 團 在 撇 除 投 資 物業及發展中投資物業的公 平價值變動之影響後，未 經審核股東應佔基礎盈利為港幣 2.851 億元，去年同 期為港幣 1.203 億元。每股基礎盈利為港幣 0.56 元， 去年同期為港幣 0.24 元。基 礎 盈 利 增 加 主 要 由 於 專 營 公共巴士業務的表現改善。 賬目所示股東應佔盈利及每股盈利分別為港幣 1.900 億元及港幣 0.37 元，去年同期為港幣 1.203 億元及 港 幣 0.24 元。賬 目 所 示 盈 利 包 括 投 資 物 業 及 發 展 中 投 資物業的公平價值減少金額為港幣 9,510 萬元，去年 同期公平價值並無變動。 截 至 2025 年 6 月 3 0 日 止 六 個 月，集 團 的 旗 艦 公 司 九 龍 巴 士（ 一 九 三 三 ）有 限 公 司（「 九 巴 ...

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佈的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不就因本公佈全部或任何部分內容所產生或 因依賴該等內容而引致的任何損失承擔任何責任。 高偉電子控股有限公司 Cowell e Holdings Inc. （股份代號：1415） （於開曼群島註冊成立的有限公司） 截至2025年6月30日止六個月之中期業績公佈 摘要 高偉電子控股有限公司（「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2025年6月30日止六個月（「報告期間」）的 未經審核綜合中期業績，連同截至2024年6月30日止六個月的比較數字。中期 財務報告未經審核，惟已由本公司核數師畢馬威會計師事務所按照香港會計 師公會頒佈之《香港審閱工作準則》第2410號「 實體之獨立核數師對中期財務資 料的審閱 」進行審閱，而其獨立審閱報告將載於即將寄發予本公司各股東（「股 東」）之本公司報告期間的中期報告內。中期財務業績亦已由本公司之審核委 員會（「審核委員會」）審閱，且並無異議。 – 1 – 綜合損益表 — 未經審核 （以美元列示） | | ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發 表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承 擔任何責任。 THE CROSS-HARBOUR (HOLDINGS) LIMITED 港通控股有限公司 （於香港註冊成立之有限公司） （股份代號：32） 2025年度中期業績公告 港通控股有限公司（「本公司」）董事會（「董事會」）欣然宣佈本公司及其附屬公司（「本集團」）截 至2025年6月30日止六個月之未經審核綜合業績。本中期業績已由本公司審核委員會及畢馬威會計師事務 所審閱。 集團業績 本集團於2025年上半年未經審核之股東應佔溢利為港幣519.1百萬元，較2024年上半年錄得之溢利港幣235.2百萬 元增加120.7%。每股盈利為港幣1.39元（2024年6月30日：港幣0.63元）。 股息 本公司已於2025年7月11日派發第一季度中期股息每股港幣0.06元，派息總額約為港幣22.4百萬元。董事會今天 宣佈將於2025年9月15日派發第二季度中期股息每股港幣0.06元予於2025年9月9日營業時間結束時名列 ...

[Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This section outlines various forward-looking statements regarding the company's operational capabilities, financial adjustments, and future outlook - This section contains multiple forward-looking statements concerning the company's going concern ability, balance sheet adjustments, liquidity, future financing needs, operational and development plans, production levels, negotiations with the Mongolian government, ability to pay tax penalties, class action lawsuit outcomes, impairment analysis, coal washing facility efficiency improvements, product value enhancement, environmental impact, China's coal demand and industry trends, and the outlook for 2025 and beyond[3](index=3&type=chunk) - Forward-looking statements are based on management's opinions and estimates, subject to various risks and uncertainties including mining activity uncertainties, cost overruns, reserve estimate deviations, regulatory changes, licensing issues, risks of the Mongolian government designating deposits as strategic, tax penalty payment risks, convertible debenture valuation model changes, debt default risks, legal amendment impacts, coal price fluctuations, class action lawsuit outcomes, customer credit risks, and cash flow and liquidity risks[5](index=5&type=chunk) [Introduction](index=4&type=section&id=Introduction) This MD&A, as of June 30, 2025, should be read with the interim financial statements, prepared under IAS 34 and presented in USD - This Management Discussion and Analysis (MD&A) as of June 30, 2025, should be read in conjunction with the company's condensed consolidated interim financial statements and notes, prepared in accordance with IAS 34 and presented in US dollars, with Chinese subsidiaries' functional currency in RMB and Mongolian operations in MNT[8](index=8&type=chunk)[9](index=9&type=chunk) - Scientific or technical disclosures in this MD&A regarding the Ovoot Tolgoi Coal Mine and Soumber Deposits are extracted from technical reports prepared by Bao-Wan Minerals Ltd. under NI 43-101, and prepared or supervised by independent qualified persons including Jaydee Ammugauan and Xu Tao[11](index=11&type=chunk)[12](index=12&type=chunk) [1. Overview](index=5&type=section&id=1.%20Overview) The company, a comprehensive coal mining and exploration entity, faces significant operational and financial challenges, including a shift to operating loss and ongoing negotiations with the Mongolian government [Company Profile](index=5&type=section&id=Company%20Profile) SouthGobi Resources Ltd. is an integrated coal mining, development, and exploration company operating flagship Ovoot Tolgoi mine in Mongolia, selling primarily to China - The company is an integrated coal mining, development, and exploration company with **808 employees**, whose common shares are traded on the Hong Kong Stock Exchange (1878) and TSX-V (SGQ)[13](index=13&type=chunk) - The company wholly owns the Ovoot Tolgoi open-pit coal mine, Soumber Deposits, and Zag Suuj Deposit development project, all located in Mongolia's Umnugobi Province, adjacent to the China-Mongolia border[13](index=13&type=chunk) - The Ovoot Tolgoi Coal Mine is the flagship asset, approximately **40 kilometers** from the Shivee Khuren-Ceke border crossing, primarily producing standard and premium semi-soft coking coal, with some high-ash products processed into semi-soft coking coal and unwashed coal sold as thermal coal, mainly to China[13](index=13&type=chunk) [Significant Events and Summary](index=6&type=section&id=Significant%20Events%20and%20Summary) The company experienced a shift to operating loss, government designation of strategic deposits, tax penalty resolution, and a deferral agreement, with significant going concern uncertainties [Operating Performance](index=6&type=section&id=Operating%20Performance) Despite increased mining operations and sales volume, the company's operating performance shifted from profit to loss due to a significant decline in average realized selling prices - Since 2024, the company has expanded its mining operations, employing various coal processing methods including screening, wet washing, and dry beneficiation, to improve coal quality and output, facilitating coal exports to China[14](index=14&type=chunk) 2025 Q2 Operating Performance Comparison | Metric | 2025 Q2 | 2024 Q2 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Sales Volume (million tonnes) | 3.00 | 1.20 | Increase 1.80 million tonnes | +150% | | Average Realized Selling Price (USD/tonne) | 52.6 | 77.6 | Decrease 25 USD/tonne | -32.2% | - The decrease in average realized selling price was primarily due to the downturn in the Chinese coal market, leading the company to change its product mix and sell a larger proportion of lower-priced coal products[14](index=14&type=chunk) [Financial Performance](index=6&type=section&id=Financial%20Performance) The company reported an operating loss of $14.3 million in Q2 2025, primarily due to lower selling prices, product mix changes, and inventory impairment 2025 Q2 Operating Profit/Loss Comparison | Metric | 2025 Q2 | 2024 Q2 | Change | | :--- | :--- | :--- | :--- | | Operating Profit/(Loss) (million USD) | (14.3) | 15.0 | Shift to Loss | - The shift to financial loss was mainly due to a decrease in average realized selling price, a change in product mix (selling more processed coal with higher production costs), and a **$12.3 million** coal inventory impairment loss[16](index=16&type=chunk) [Notice from Mongolian Government Plenipotentiary and Designation of Company's Deposits as Strategically Important](index=6&type=section&id=Notice%20from%20Mongolian%20Government%20Plenipotentiary%20and%20Designation%20of%20Company's%20Deposits%20as%20Strategically%20Important) The Mongolian government designated the company's deposits as strategically important, initiating negotiations for state ownership interests in SGS - On February 5, 2025, the Mongolian government resolved to appoint a plenipotentiary representative to negotiate with legal entities holding strategic mineral mining licenses, in accordance with the Law on the National Wealth Fund, to determine the proportion of Mongolia's interest[15](index=15&type=chunk) - SGS received a letter from the Mongolian government's plenipotentiary representative on April 2, 2025, inviting it to participate in discussions to determine the Mongolian government's ownership interest in SGS, with preliminary discussions commencing on April 24, 2025[16](index=16&type=chunk)[18](index=18&type=chunk) - The mineral deposits covered by the company's four Mongolian mining licenses, including the Ovoot Tolgoi Coal Mine and Soumber Deposits, have been designated as strategically important by the Mongolian government authorities[18](index=18&type=chunk) [Additional Taxes and Penalties Imposed by Mongolian Tax Authority](index=7&type=section&id=Additional%20Taxes%20and%20Penalties%20Imposed%20by%20Mongolian%20Tax%20Authority) Tax penalties initially around $75-80 million were reduced to $26.5 million by TDRC, with the company having paid $17.3 million and planning to pay the remainder from operating cash - The Mongolian Tax Authority's tax audit of SGS for the 2017-2020 tax years initially imposed penalties of approximately **$75 million**, which were later re-evaluated and increased to approximately **$80 million**[18](index=18&type=chunk)[19](index=19&type=chunk) - Following a TDRC resolution, the tax penalty amount was reduced from approximately **$80 million** to approximately **$26.5 million**, and the company decided not to appeal this decision to the first instance administrative court[20](index=20&type=chunk) - Mongolian tax officials attempted to request the court to overturn the TDRC's decision, but the first instance administrative court refused to accept it, and the appellate court upheld the first instance administrative court's order, making the TDRC's decision final; the company has paid **$17.3 million** and expects to pay the remaining outstanding taxes and penalties from operating cash[21](index=21&type=chunk)[22](index=22&type=chunk) [March 2025 Deferral Agreement](index=9&type=section&id=March%202025%20Deferral%20Agreement) The company and JDZF agreed to defer approximately $111.6 million in various payments until August 31, 2026, subject to shareholder approval and specific terms - The company and JDZF entered into the March 2025 Deferral Agreement, deferring multiple payments, including cash and payment-in-kind interest, management fees, and related deferral fees, totaling approximately **$111.6 million**, until August 31, 2026[24](index=24&type=chunk)[25](index=25&type=chunk) - The Deferral Agreement was approved by disinterested shareholders at the Annual General Meeting on June 27, 2025[24](index=24&type=chunk) - The company is required to pay a deferral fee at an annual interest rate of **6.4%** for convertible debenture-related amounts and **1.5%** for cooperation agreement-related amounts; the agreement has no fixed repayment schedule, with the company discussing repayment amounts monthly with JDZF and requiring JDZF's written consent before any changes in senior management[25](index=25&type=chunk)[28](index=28&type=chunk) [Going Concern](index=10&type=section&id=Going%20Concern) Significant uncertainties regarding the company's going concern ability arise from asset and working capital deficiencies - Certain adverse conditions and significant uncertainties, including asset and working capital deficiencies, raise substantial doubt about the company's going concern assumption[28](index=28&type=chunk) [2. Review of Operating Data and Financial Performance](index=11&type=section&id=2.%20Review%20of%20Operating%20Data%20and%20Financial%20Performance) The company experienced significant sales volume growth but a sharp decline in average realized selling prices, leading to operating losses despite improved stripping ratios [Operating Data Summary](index=11&type=section&id=Operating%20Data%20Summary) Q2 2025 saw significant coal sales volume growth but a substantial drop in average realized selling prices, with improved stripping ratios 2025 Q2 and H1 Operating Data Comparison | Metric | 2025 Q2 | 2024 Q2 | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | :--- | :--- | | Total Coal Sales Volume (million tonnes) | 2.96 | 1.20 | 5.02 | 2.25 | | Average Realized Selling Price (USD/tonne) | 52.55 | 77.55 | 55.41 | 78.47 | | Cost of Sales of Products Sold (USD/tonne) | 53.87 | 61.32 | 58.39 | 52.94 | | Total Cash Cost of Products Sold (USD/tonne) | 46.20 | 49.57 | 50.08 | 41.27 | | Stripping Ratio (cubic meters/tonne) | 5.08 | 7.27 | 5.01 | 8.27 | [Operating Data Review](index=12&type=section&id=Operating%20Data%20Review) Average realized selling prices declined in Q2 2025 and H1 2025 due to market downturns and product mix changes, while sales volumes increased significantly - The average realized selling price for Q2 2025 was **$52.6 per tonne**, a decrease from **$77.6 per tonne** in Q2 2024, primarily due to the downturn in the Chinese coal market and a change in product mix (selling more lower-priced coal products)[32](index=32&type=chunk) - The unit cost of sales for products sold in Q2 2025 was **$53.9 per tonne**, a decrease from **$61.3 per tonne** in Q2 2024, mainly due to changes in product mix and increased raw coal sales volume[32](index=32&type=chunk) - Sales volume for the first six months of 2025 was **5.0 million tonnes**, a significant increase from **2.3 million tonnes** in the first six months of 2024, but the average realized selling price decreased from **$78.5 per tonne** to **$55.4 per tonne** for the same reasons; the unit cost of sales increased from **$52.9 per tonne** to **$58.4 per tonne** due to business expansion into higher-cost processed coal categories[34](index=34&type=chunk) [Financial Performance Summary](index=13&type=section&id=Financial%20Performance%20Summary) Both Q2 and H1 2025 saw operating losses, driven by lower selling prices, higher-cost processed coal sales, and coal inventory impairment 2025 Q2 and H1 Financial Performance Summary | Metric (thousand USD) | 2025 Q2 | 2024 Q2 | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | :--- | :--- | | Revenue | 155,289 | 92,821 | 278,156 | 174,990 | | Cost of Sales | (159,452) | (73,582) | (293,141) | (119,115) | | Operating Profit/(Loss) | (14,326) | 15,045 | (30,000) | 47,193 | | Net Profit/(Loss) Attributable to Equity Holders | (22,806) | (2,085) | (49,011) | 10,167 | | Basic and Diluted Earnings/(Loss) Per Share (USD) | (0.077) | (0.007) | (0.165) | 0.034 | - Operating losses were recorded in both Q2 2025 and H1 2025, primarily due to a decrease in average realized selling price, a change in product mix (selling more processed coal with higher production costs), and a **$12.3 million** coal inventory impairment loss[39](index=39&type=chunk)[46](index=46&type=chunk) - The increase in revenue was mainly driven by expanded sales networks, diversified customer base, and increased sales volume due to an expanded range of coal product categories; the increase in cost of sales was primarily due to higher sales volume, business expansion into higher-cost processed coal categories, and selling more products to more distant destinations with higher transportation costs[39](index=39&type=chunk)[47](index=47&type=chunk) - Net other operating expenses increased, mainly due to higher management fees and a **$12.3 million** coal inventory impairment loss, partially offset by the write-off of **$6.3 million** in other payables[41](index=41&type=chunk)[48](index=48&type=chunk) [Quarterly Operating Data Summary](index=17&type=section&id=Quarterly%20Operating%20Data%20Summary) Quarterly data shows substantial sales volume growth in Q2 2025 but a continuous decline in average realized selling prices Quarterly Operating Data Comparison (Q2 2023 - Q2 2025) | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Coal Sales Volume (million tonnes) | 2.96 | 2.06 | 2.66 | 2.11 | 1.20 | 1.05 | 0.96 | 1.15 | | Average Realized Selling Price (USD/tonne) | 52.55 | 59.51 | 65.72 | 67.77 | 77.55 | 79.52 | 92.93 | 85.57 | | Cost of Sales of Products Sold (USD/tonne) | 53.87 | 64.90 | 48.92 | 52.77 | 61.32 | 43.36 | 38.17 | 42.23 | | Total Cash Cost of Products Sold (USD/tonne) | 46.20 | 55.67 | 39.80 | 42.68 | 49.57 | 31.78 | 28.03 | 33.08 | | Stripping Ratio (cubic meters/tonne) | 5.08 | 4.93 | 4.17 | 5.48 | 7.27 | 9.87 | 5.85 | 6.24 | [Quarterly Financial Performance Summary](index=18&type=section&id=Quarterly%20Financial%20Performance%20Summary) Q2 2025 revenue increased significantly, but gross profit and operating profit turned to losses, with expanded net losses Quarterly Financial Performance Comparison (Q2 2023 - Q2 2025) | Metric (thousand USD) | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 155,289 | 122,867 | 174,640 | 143,748 | 92,821 | 82,169 | 88,504 | 97,979 | | Gross Profit/(Loss) | (4,163) | (10,822) | 44,521 | 32,394 | 19,239 | 36,636 | 51,859 | 49,410 | | Operating Profit/(Loss) | (14,326) | (15,674) | 79,052 | 27,697 | 15,045 | 32,148 | 42,044 | 46,343 | | Net Profit/(Loss) | (22,806) | (26,205) | 72,291 | 10,039 | (2,085) | 12,252 | 24,336 | 29,349 | | Basic Earnings/(Loss) Per Share | (0.077) | (0.088) | 0.244 | 0.034 | (0.007) | 0.041 | 0.082 | 0.099 | [3. Non-IFRS Financial Measures](index=18&type=section&id=3.%20Non-IFRS%20Financial%20Measures) The company uses non-IFRS financial measures like cash costs and idle mine asset costs to monitor operational efficiency and provide relevant financial insights [Cash Costs](index=19&type=section&id=Cash%20Costs) Cash costs, a non-IFRS measure, reflect cash production and related costs for inventory, excluding idle mine asset costs and non-cash expenses - Cash costs are a non-IFRS financial measure that reflects the cash production and related cash costs incurred to bring inventory to its present location and condition, excluding idle mine asset costs and non-cash expenses, used to monitor internal operating cash costs[58](index=58&type=chunk) Total Cash Cost of Products Sold Comparison | Metric | 2025 Q2 | 2024 Q2 | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | :--- | :--- | | Total Cash Cost of Products Sold (USD/tonne) | 46.20 | 49.57 | 50.08 | 41.27 | - The cash cost per tonne of products sold decreased from **$49.6** in Q2 2024 to **$46.2** in Q2 2025, primarily due to changes in product mix and increased raw coal sales volume[59](index=59&type=chunk) [Idle Mine Asset Costs](index=20&type=section&id=Idle%20Mine%20Asset%20Costs) Idle mine asset costs, including share-based compensation and impairment, are used for internal gross profit monitoring and investor information - Idle mine asset costs include share-based compensation expenses, coal inventory impairment, and depreciation and depletion of property, plant, and equipment and mineral properties, used for internal gross profit monitoring[60](index=60&type=chunk) Gross Profit/(Loss) Reconciliation (thousand USD) | Metric | 2025 Q2 | 2024 Q2 | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | :--- | :--- | | Gross Profit/(Loss) (excluding idle mine asset costs) | (3,852) | 19,303 | (14,423) | 55,985 | | Less non-cash idle mine asset costs | (311) | (64) | (562) | (110) | | Gross Profit/(Loss) (including idle mine asset costs) | (4,163) | 19,239 | (14,985) | 55,875 | [4. Properties](index=19&type=section&id=4.%20Properties) The company holds six mining licenses in Mongolia, with the Ovoot Tolgoi Coal Mine as its flagship operating asset, strategically located near the Chinese border [Operating Coal Mines](index=20&type=section&id=Operating%20Coal%20Mines) The company operates the Ovoot Tolgoi Coal Mine, its flagship asset, strategically located near the China-Mongolia border, producing semi-soft coking coal and thermal coal [Ovoot Tolgoi Coal Mine](index=20&type=section&id=Ovoot%20Tolgoi%20Coal%20Mine) The Ovoot Tolgoi Coal Mine, a flagship asset in Mongolia, produces semi-soft coking coal and thermal coal, aiming to expand market penetration in China - The Ovoot Tolgoi Coal Mine is the company's flagship asset, located in Umnugobi Aimag, Mongolia, approximately **40 kilometers** from the Shivee Khuren-Ceke border crossing with China, and has been in operation since 2008[13](index=13&type=chunk)[64](index=64&type=chunk) - Primary products include standard and premium semi-soft coking coal, with some high-ash products processed into semi-soft coking coal, and unwashed products sold as thermal coal; the company aims to develop markets, seek long-term supply agreements with Chinese end-users, and enhance product quality and market penetration in China through various coal processing methods[13](index=13&type=chunk)[64](index=64&type=chunk) [Resources](index=20&type=section&id=Resources) Resource estimates for the Ovoot Tolgoi deposit are detailed in the technical report prepared by Bao-Wan Minerals Ltd., available on SEDAR+ - Resource estimates for the Ovoot Tolgoi deposit are contained in the Ovoot Tolgoi Technical Report prepared by Bao-Wan Minerals Ltd. on behalf of the company, a copy of which was filed on the SEDAR+ website on December 2, 2024[65](index=65&type=chunk) [Reserves](index=20&type=section&id=Reserves) Reserve estimates for the Ovoot Tolgoi deposit are detailed in the technical report prepared by Bao-Wan Minerals Ltd., available on SEDAR+ - Reserve estimates for the Ovoot Tolgoi deposit are contained in the Ovoot Tolgoi Technical Report prepared by Bao-Wan Minerals Ltd. on behalf of the company, a copy of which was filed on the SEDAR+ website on December 2, 2024[66](index=66&type=chunk) [Mining Operations](index=21&type=section&id=Mining%20Operations) Ovoot Tolgoi employs open-pit bench mining with large-scale hydraulic excavators and trucks, supported by a predominantly Mongolian workforce [Mining Method](index=21&type=section&id=Mining%20Method) The Ovoot Tolgoi deposit utilizes open-pit bench mining with large-scale hydraulic excavators and trucks for high-productivity extraction in steeply dipping coal seams - The Ovoot Tolgoi deposit employs open-pit bench mining, utilizing large-scale hydraulic excavators, shovels, and trucks for high-productivity extraction in steeply dipping coal seams[68](index=68&type=chunk) [Mining Equipment](index=21&type=section&id=Mining%20Equipment) The current mining fleet includes Liebherr hydraulic excavators and MT4400AC haul trucks, along with various auxiliary equipment - The mining fleet currently in use includes one Liebherr 996 hydraulic excavator (**34 cubic meters**), four Liebherr R9250 hydraulic excavators (**15 cubic meters**), nineteen MT4400AC haul trucks (**240-tonne** carrying capacity), and various auxiliary equipment[69](index=69&type=chunk) [Workforce](index=21&type=section&id=Workforce) As of June 30, 2025, SGS employed 701 staff in Mongolia, with 99% being Mongolian nationals and 36% local residents - As of June 30, 2025, SGS employed **701 staff** in Mongolia, of whom **697 (99%)** were Mongolian nationals and **250 (36%)** were local residents[70](index=70&type=chunk) [5. Liquidity and Capital Resources](index=21&type=section&id=5.%20Liquidity%20and%20Capital%20Resources) The company manages liquidity through planning and forecasting, addressing tax penalties and deferral agreements, while facing significant going concern uncertainties [Liquidity and Capital Management](index=21&type=section&id=Liquidity%20and%20Capital%20Management) The company manages liquidity through planning, budgeting, and forecasting, addressing tax penalties and deferral agreements, while relying on major shareholder support amid going concern uncertainties [Additional Taxes and Penalties Imposed by Mongolian Tax Authority](index=21&type=section&id=Additional%20Taxes%20and%20Penalties%20Imposed%20by%20Mongolian%20Tax%20Authority) Tax penalties initially around $75-80 million were reduced to $26.5 million by TDRC, with the company having paid $17.3 million and planning to pay the remainder from operating cash - The Mongolian Tax Authority's tax audit of SGS for the 2017-2020 tax years initially imposed penalties of approximately **$75 million**, which were later re-evaluated and increased to approximately **$80 million**[72](index=72&type=chunk)[73](index=73&type=chunk) - Following a TDRC resolution, the tax penalty amount was reduced from approximately **$80 million** to approximately **$26.5 million**, and the company decided not to appeal this decision to the first instance administrative court[74](index=74&type=chunk) - Mongolian tax officials attempted to request the court to overturn the TDRC's decision, but the first instance administrative court refused to accept it, and the appellate court upheld the first instance administrative court's order, making the TDRC's decision final; the company has paid **$17.3 million** and expects to pay the remaining outstanding taxes and penalties from operating cash[75](index=75&type=chunk)[76](index=76&type=chunk) [Going Concern Considerations](index=23&type=section&id=Going%20Concern%20Considerations) Asset and working capital deficiencies raise significant doubts about the company's going concern ability, despite measures like deferral agreements and anticipated shareholder support Asset and Working Capital Deficiencies (thousand USD) | Metric | Jun 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Asset Deficiency | 108,406 | 49,843 | | Working Capital Deficiency | 147,962 | 228,134 | - The working capital deficiency includes **$212.3 million** in trade and other payables and **$28.2 million** in additional taxes and penalties, which could lead to potential legal actions or bankruptcy proceedings[78](index=78&type=chunk)[79](index=79&type=chunk) - The company has taken steps to improve liquidity, including entering into a deferral agreement with JDZF, negotiating repayment plans with suppliers, and expecting to receive financial support of up to **$127 million (RMB 900 million)** from an affiliate of its major shareholder; management believes it has sufficient financial resources to continue operations, but the timely availability of financial support is a key uncertainty for going concern[80](index=80&type=chunk)[81](index=81&type=chunk) [Convertible Debentures](index=24&type=section&id=Convertible%20Debentures) The company issued $500 million in convertible debentures to CIC in 2009, with $250 million remaining outstanding and rights transferred to JDZF in 2022 - The company issued **$500 million** in secured convertible debentures to CIC in November 2009, with an annual interest rate of **8.0% (6.4% cash, 1.6% shares)** and a maximum term of **30 years**; **$250 million** of the debentures were converted in 2010, with the remaining **$250 million** principal unchanged[83](index=83&type=chunk) - In August 2022, CIC transferred the convertible debentures and related rights and obligations to JDZF[188](index=188&type=chunk) - Debenture terms include: **8% annual interest (6.4% cash, 1.6% shares)**, a maximum **30-year term**, secured by a first charge on company assets, a conversion price of **CAD 11.88** or the 50-day volume-weighted average price on the conversion date (whichever is lower, with a minimum of **CAD 8.88**); JDZF has the right to appoint directors, voting rights not exceeding **29.9%**, and certain pre-emptive rights[190](index=190&type=chunk) [Deferral Agreement](index=25&type=section&id=Deferral%20Agreement) The company and JDZF agreed to defer approximately $111.6 million in various payments until August 31, 2026, subject to shareholder approval and specific terms - The company and JDZF entered into the March 2025 Deferral Agreement, deferring multiple payments, including cash and payment-in-kind interest, management fees, and related deferral fees, totaling approximately **$111.6 million**, until August 31, 2026[24](index=24&type=chunk)[85](index=85&type=chunk) - The Deferral Agreement was approved by disinterested shareholders at the Annual General Meeting on June 27, 2025[24](index=24&type=chunk)[85](index=85&type=chunk) - The company is required to pay a deferral fee at an annual interest rate of **6.4%** for convertible debenture-related amounts and **1.5%** for cooperation agreement-related amounts; the agreement has no fixed repayment schedule, with the company discussing repayment amounts monthly with JDZF and requiring JDZF's written consent before any changes in senior management[25](index=25&type=chunk)[86](index=86&type=chunk) [Net Debt to Equity Ratio](index=26&type=section&id=Net%20Debt%20to%20Equity%20Ratio) The company's net debt to equity ratio improved to -476% as of June 30, 2025, but remains negative, indicating negative equity Net Debt to Equity Ratio Comparison | Metric | Jun 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Net Debt to Equity Ratio | -476% | -945% | [Cash Flow Summary](index=26&type=section&id=Cash%20Flow%20Summary) In H1 2025, net cash from operating activities increased, cash used in investing activities decreased, and cash used in financing activities significantly reduced [Net Cash Flows from Operating Activities](index=26&type=section&id=Net%20Cash%20Flows%20from%20Operating%20Activities) Net cash flows from operating activities increased to $34.6 million in H1 2025, primarily due to higher sales volume Net Cash Flows from Operating Activities (thousand USD) | Metric | 2025 H1 | 2024 H1 | Change | | :--- | :--- | :--- | :--- | | Net Cash Flows from Operating Activities | 34,570 | 32,355 | Increase 2,215 | [Cash Used in Investing Activities](index=26&type=section&id=Cash%20Used%20in%20Investing%20Activities) Cash used in investing activities decreased to $39.3 million in H1 2025, mainly for property, plant, and equipment expenditures Cash Used in Investing Activities (thousand USD) | Metric | 2025 H1 | 2024 H1 | Change | | :--- | :--- | :--- | :--- | | Cash Used in Investing Activities | (39,349) | (64,294) | Decrease 24,945 | | Property, Plant, and Equipment Expenditures | 39,600 | 64,000 | Decrease 24,400 | [Cash Used in Financing Activities](index=26&type=section&id=Cash%20Used%20in%20Financing%20Activities) Cash used in financing activities significantly decreased to $0.4 million in H1 2025 Cash Used in Financing Activities (thousand USD) | Metric | 2025 H1 | 2024 H1 | Change | | :--- | :--- | :--- | :--- | | Cash Used in Financing Activities | (374) | (3,291) | Decrease 2,917 | [Contractual Obligations and Guarantees](index=26&type=section&id=Contractual%20Obligations%20and%20Guarantees) As of June 30, 2025, the company's total future minimum payment commitments amounted to $11.04 million, primarily for capital expenditures Contractual Obligations and Guarantees (thousand USD) | Obligation Type | Within 1 Year | 2-3 Years | Over 3 Years | Total | | :--- | :--- | :--- | :--- | :--- | | Capital Expenditure Commitments | 1,964 | 3,848 | 3,815 | 9,627 | | Operating Expenditure Commitments | 1,216 | 38 | 159 | 1,413 | | Total | 3,180 | 3,886 | 3,974 | 11,040 | [Ovoot Tolgoi Coal Mine Impairment Analysis](index=26&type=section&id=Ovoot%20Tolgoi%20Coal%20Mine%20Impairment%20Analysis) Impairment indicators were identified for the Ovoot Tolgoi mine due to future coal price uncertainty, but no impairment was recognized as recoverable amounts exceeded carrying values - As of June 30, 2025, impairment indicators were identified for the Ovoot Tolgoi Coal Mine cash-generating unit, due to uncertainty regarding future Chinese coal prices[93](index=93&type=chunk) - No impairment of non-financial assets was recognized for the six months ended June 30, 2025, as the recoverable amount exceeded the carrying value[93](index=93&type=chunk) [Financial Instruments](index=27&type=section&id=Financial%20Instruments) The fair values of the company's financial instruments generally align with carrying values, except for certain liabilities, with convertible debenture derivatives valued using Monte Carlo simulation - The fair values of all the company's financial instruments are similar to their carrying values, except for trade and other payables, interest-bearing borrowings, and convertible debentures, whose fair values are lower than their respective carrying values[95](index=95&type=chunk) - The fair value of the convertible debenture embedded derivative is determined using a Monte Carlo simulation valuation model, and the company mitigates related risks by ensuring corporate activities comply with all contractual obligations under the convertible debentures[95](index=95&type=chunk) Financial Assets and Liabilities (thousand USD) | Metric | Jun 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Financial Assets** | | | | Cash | 2,614 | 8,590 | | Restricted Cash | 838 | 274 | | Trade and Other Receivables | 17,233 | 31,486 | | **Financial Liabilities** | | | | Convertible Debentures - Embedded Derivative | 7 | 63 | | Trade and Other Payables | 212,289 | 169,281 | | Lease Liabilities | 1,979 | 2,192 | | Convertible Debentures - Debt Host and Accrued Interest | 222,392 | 204,855 | [6. Regulatory Matters and Contingencies](index=28&type=section&id=6.%20Regulatory%20Matters%20and%20Contingencies) The company faces ongoing litigation, disputes over special protection areas, and risks from frequent changes in Mongolian tax laws [Litigation](index=28&type=section&id=Litigation) The company faces an ongoing class action lawsuit regarding misstatements, with a conditional settlement of CAD 6.8 million covered by insurance awaiting court approval - The company has faced a class action lawsuit since 2014, alleging misrepresentations due to previously restated financial statements; while claims against former officers and directors have been dismissed, the class action against the company is ongoing[97](index=97&type=chunk)[98](index=98&type=chunk) - The company reached a conditional settlement with the class action plaintiffs for **CAD 6.8 million**, covering all liabilities, legal fees, etc., to be borne by the company's insurance provider since January 2014[98](index=98&type=chunk) - The settlement agreement is subject to approval by a judge of the Ontario Superior Court of Justice, with a motion expected to be filed on or before December 31, 2025[98](index=98&type=chunk) [Special Needs Areas in Umnugobi Province](index=29&type=section&id=Special%20Needs%20Areas%20in%20Umnugobi%20Province) Disputes over mining license areas being designated as special protection zones have been largely resolved in the company's favor, with court rulings invalidating attempts to re-include them - The Soumber mining license areas were previously included in special protected areas, prohibiting mining activities; SGS reached an amicable agreement with local authorities to exclude the license areas from the special needs area[101](index=101&type=chunk) - As of July 2021, two license areas no longer overlap with special needs areas, but the company is still negotiating with Mongolian authorities regarding the remaining license area[102](index=102&type=chunk) - The local Citizens' Representative Khural attempted to re-include the license areas into the protected zone, but both the Umnugobi Province First Instance Court and the Appellate Court ruled their claims invalid, and the Appellate Court's decision is final[102](index=102&type=chunk)[103](index=103&type=chunk) [Tax Laws](index=30&type=section&id=Tax%20Laws) Frequent changes in Mongolian tax laws pose risks of additional taxes and penalties, though a significant tax penalty reduction was upheld by the appeals court - The interpretation and changes to Mongolian tax, currency, and customs laws are frequent, potentially leading to the imposition of significant additional taxes, penalties, and interest on the company[104](index=104&type=chunk) - Mongolian tax officials attempted to request the court to overturn the TDRC's decision to reduce SGS's tax penalties from approximately **$80 million** to approximately **$26.5 million**, but the first instance administrative court refused to accept it, and the appellate court upheld the first instance administrative court's order, making the TDRC's decision final[105](index=105&type=chunk)[106](index=106&type=chunk) - The company recorded a reversal of additional taxes and penalties of **$48.5 million** in 2024 and has paid **$17.3 million** to date; management will continue to assess the impact of subsequent events on tax liabilities[106](index=106&type=chunk)[108](index=108&type=chunk) [7. Outstanding Share Data](index=31&type=section&id=7.%20Outstanding%20Share%20Data) As of August 14, 2025, the company had approximately 296.7 million common shares outstanding, with key shareholders including JDZF, Blueport International Holdings, and Voyage Wisdom - As of August 14, 2025, the company had approximately **296.7 million** common shares issued and outstanding, along with incentive stock options to subscribe for approximately **1.2 million** unissued common shares at an exercise price of **HKD 1.41**, but no preferred shares outstanding[109](index=109&type=chunk) Major Shareholder Holdings (as of August 14, 2025) | Shareholder Name | Number of Shares Held (approx.) | Percentage of Issued and Outstanding Common Shares (approx.) | | :--- | :--- | :--- | | JDZF | 85.7 million shares | 28.9% | | Blueport International Holdings Limited | 46.4 million shares | 15.6% | | Voyage Wisdom Limited | 25.8 million shares | 8.7% | [8. Disclosure Controls and Procedures and Internal Control Over Financial Reporting](index=31&type=section&id=8.%20Disclosure%20Controls%20and%20Procedures%20and%20Internal%20Control%20Over%20Financial%20Reporting) No significant changes occurred in the company's internal controls over financial reporting during the most recent quarter - No significant changes occurred in the company's internal controls over financial reporting during the most recently completed quarter that have materially affected, or are reasonably likely to materially affect, internal control over financial reporting[110](index=110&type=chunk) [9. Critical Accounting Estimates and Judgments](index=31&type=section&id=9.%20Critical%20Accounting%20Estimates%20and%20Judgments) No new IFRS accounting standards or interpretations are expected to significantly impact the company, with details available in the interim financial statements - No new IFRS accounting standards or interpretations not yet effective are expected to have a significant impact on the company[110](index=110&type=chunk) - Information regarding accounting judgments and estimates can be found in Note 2.3 to the company's condensed consolidated interim financial statements for the quarter ended June 30, 2025[110](index=110&type=chunk) [10. Risk Factors](index=31&type=section&id=10.%20Risk%20Factors) The company's business involves various risks and uncertainties, consistent with those disclosed in its annual information form for the year ended December 31, 2024 - The company's business involves certain risks, some of which are beyond its control; the significant risks and uncertainties affecting the company, their potential impact on operations, and key risk management strategies are substantially consistent with those disclosed in the company's most recently filed Annual Information Form for the year ended December 31, 2024[111](index=111&type=chunk) [11. Hong Kong Listing Rules Requirements](index=32&type=section&id=11.%20Hong%20Kong%20Listing%20Rules%20Requirements) The company has no significant investments, acquisitions, dispositions, or future capital asset plans, and details its employee compensation and benefits [Significant Investments](index=32&type=section&id=Significant%20Investments) As of June 30, 2025, the company had no significant investments other than those in joint ventures and associates - As of June 30, 2025, the company had no significant investments other than those in joint ventures and associates[113](index=113&type=chunk) [Significant Acquisitions and Dispositions of Subsidiaries, Joint Ventures, and Associates](index=32&type=section&id=Significant%20Acquisitions%20and%20Dispositions%20of%20Subsidiaries,%20Joint%20Ventures,%20and%20Associates) For the six months ended June 30, 2025, the company had no significant acquisitions or dispositions of subsidiaries, joint ventures, or associates - For the six months ended June 30, 2025, the company had no significant acquisitions or dispositions of subsidiaries, joint ventures, or associates[114](index=114&type=chunk) [Future Plans for Material Investments or Capital Assets](index=32&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) As of June 30, 2025, the company had no specific plans for material investments or capital assets - As of June 30, 2025, the company had no specific plans for material investments or capital assets[115](index=115&type=chunk) [Employees](index=32&type=section&id=Employees) As of June 30, 2025, the company employed 808 individuals, offering competitive compensation and a share option scheme to attract and retain talent - As of June 30, 2025, the company had a total of **808 employees**[116](index=116&type=chunk) - The company offers competitive compensation packages, including salaries, director's fees, key performance indicators linked to performance targets, discretionary bonuses, and other benefits, and has a share option scheme to attract, retain, motivate, and reward employees, while also funding external training courses[116](index=116&type=chunk) [12. Outlook](index=32&type=section&id=12.%20Outlook) The company anticipates a reshaping of the international coal market due to geopolitical shifts and aims to expand its market presence in China with JDZF's support [Market Environment and Company Strategy](index=32&type=section&id=Market%20Environment%20and%20Company%20Strategy) The company expects global geopolitical shifts to reshape the international coal market, focusing on expanding its Chinese market reach and customer base with JDZF's support - The global geopolitical landscape and US-China trade tensions are expected to reshape the international coal market, with Chinese coal users potentially shifting to more stable and reliable supply sources such as Australia, Russia, Canada, and Mongolia[117](index=117&type=chunk) - Enhanced cooperation between the Chinese and Mongolian governments will strengthen trade ties and improve infrastructure, creating favorable conditions for Mongolian coal exports to China[117](index=117&type=chunk) - Despite challenges in China's property market and infrastructure investment leading to a decline in coking coal demand, the company remains cautiously optimistic about the Chinese coal market, expecting coal to remain a primary energy source and supply constraints to cause price volatility[117](index=117&type=chunk) - With the continued assistance and support of JDZF, the company will focus on expanding its market reach and customer base in China to improve the profitability of its coal products[117](index=117&type=chunk) [Medium-Term Objectives](index=33&type=section&id=Medium-Term%20Objectives) Medium-term goals include expanding mining operations, optimizing product mix, increasing market reach, enhancing production, and optimizing cost structures while operating safely - The company will continue to expand its mining operations and coal processing capabilities to capture market share[120](index=120&type=chunk) - Optimize product portfolio: Produce economically efficient blended coal products by improving mining operations, utilizing dry and wet washing coal processing plants, and trading and blending different coal types[121](index=121&type=chunk) - Expand market reach and customer base: Increase sales volume and improve selling prices by expanding sales networks, diversifying customer base, increasing coal logistics capacity, and setting market-driven sales prices[121](index=121&type=chunk) - Increase production and optimize cost structure: Aim to increase coal production to leverage economies of scale and reduce production costs by engaging large third-party contract mining companies, strengthening procurement management, continuous training, and improving productivity[121](index=121&type=chunk) - Operate safely and socially responsibly: Maintain the highest standards of health, safety, and environmental protection[121](index=121&type=chunk) [Long-Term Competitive Advantages](index=33&type=section&id=Long-Term%20Competitive%20Advantages) Long-term competitive advantages include the strategic location of Ovoot Tolgoi, substantial reserves, growth potential of other deposits, and its role as a bridge between China and Mongolia - Strategic location: The Ovoot Tolgoi Coal Mine is approximately **40 kilometers** from major Chinese coal markets and has railway connections to key Chinese coal distribution hubs[121](index=121&type=chunk) - Substantial reserve base: The Ovoot Tolgoi deposit holds at least **82.3 million tonnes** of mineral reserves[121](index=121&type=chunk) - Several growth potentials: Including the Soumber Deposits and Zag Suuj Deposit[121](index=121&type=chunk) - Bridge between China and Mongolia: The company is well-positioned to seize business opportunities between China and Mongolia and will seek assistance and support from its two largest shareholders (experienced Chinese coal mining enterprises)[121](index=121&type=chunk)

[Consolidated Statement of Profit or Loss](index=1&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) The company experienced a significant decline from profit to a net loss, with basic and diluted loss per share of **0.95 HK cents** for the period Summary of Consolidated Statement of Profit or Loss (For the six months ended June 30) | Indicator | 2025 (HK$ '000) | 2024 (HK$ '000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 250,337 | 244,093 | 2.56% | | Gross profit | 243,347 | 228,736 | 6.39% | | Other income and gains, net | 172,820 | 166,413 | 3.85% | | Administrative expenses | (124,021) | (159,455) | -22.22% | | Finance costs | (284,938) | (316,747) | -10.04% | | Share of profits/(losses) of joint ventures | 45,010 | 264,340 | -82.98% | | Share of profits/(losses) of associates | (55,355) | (21,043) | 163.05% | | Profit/(loss) before tax | (3,150) | 118,631 | -102.65% | | Income tax expense | (33,604) | (27,625) | 21.64% | | Profit/(loss) for the period attributable to owners of the parent | (36,754) | 91,006 | -140.38% | | Basic and diluted earnings/(loss) per share | (0.95) HK cents | 2.34 HK cents | -140.60% | [Other Comprehensive Income/(Loss)](index=2&type=section&id=Other%20Comprehensive%20Income%2F(Loss)) Total comprehensive income attributable to owners of the parent significantly increased to **HK$1.03 billion**, primarily due to substantial foreign currency translation differences Summary of Other Comprehensive Income/(Loss) (For the six months ended June 30) | Indicator | 2025 (HK$ '000) | 2024 (HK$ '000) | Change (%) | | :--- | :--- | :--- | :--- | | Profit/(loss) for the period | (36,754) | 91,006 | -140.38% | | Fair value changes of cash flow hedges | (56,273) | 69,543 | -180.91% | | Exchange differences on translation of foreign operations | 1,126,235 | (51,660) | 2283.27% | | Other comprehensive income for the period | 1,069,962 | 18,913 | 5556.26% | | Total comprehensive income for the period attributable to owners of the parent | 1,033,208 | 109,919 | 840.00% | [Consolidated Statement of Financial Position](index=3&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) Total equity increased by 8.08% to **HK$13.82 billion**, while net current liabilities significantly expanded to **HK$1.48 billion** Summary of Consolidated Statement of Financial Position (As at June 30) | Indicator | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | Change (%) | | :--- | :--- | :--- | :--- | | **Non-current assets** | | | | | Investment properties | 12,303,466 | 11,061,312 | 11.23% | | Investments in joint ventures | 7,772,418 | 7,324,563 | 6.12% | | Total non-current assets | 22,200,736 | 20,585,585 | 7.84% | | **Current assets** | | | | | Cash and cash equivalents | 1,878,690 | 1,535,223 | 22.37% | | Total current assets | 2,673,861 | 2,932,292 | -8.74% | | **Current liabilities** | | | | | Interest-bearing bank and other borrowings | 1,605,226 | 716,080 | 124.17% | | Notes payable | 2,324,011 | 2,321,829 | 0.09% | | Total current liabilities | 4,156,737 | 3,414,602 | 21.73% | | Net current liabilities | (1,482,876) | (482,310) | 207.45% | | **Non-current liabilities** | | | | | Interest-bearing bank and other borrowings | 6,866,948 | 7,309,226 | -6.05% | | Total non-current liabilities | 6,894,899 | 7,313,522 | -5.72% | | **Equity** | | | | | Total equity | 13,822,961 | 12,789,753 | 8.08% | [Notes](index=4&type=section&id=Notes) This section provides detailed notes on the financial statements, covering accounting policies, segment information, and specific financial items [1. Basis of Presentation and Preparation](index=4&type=section&id=1.%20Basis%20of%20Presentation%20and%20Preparation) The interim financial information is prepared under HKAS 34, with the board affirming going concern despite a net current liability and loss, supported by a **HK$3 billion** committed revolving loan from the controlling shareholder - The Group recorded a **loss of HK$36.75 million** for the six months ended June 30, 2025, with **current liabilities exceeding current assets by HK$1.48 billion**[6](index=6&type=chunk) - The controlling shareholder, Mr. Cheung Chung Kiu, provided a **HK$3 billion committed revolving loan** to the Group in December 2024, which remained undrawn as of June 30, 2025, to support liquidity[7](index=7&type=chunk) - The Board believes the Group has **sound liquidity management** and sufficient financial resources, preparing financial information on a going concern basis[7](index=7&type=chunk) [2. Changes in Accounting Policies and Disclosures](index=4&type=section&id=2.%20Changes%20in%20Accounting%20Policies%20and%20Disclosures) The Group adopted the revised HKAS 21 'Lack of Exchangeability' for the first time, which had no material impact due to the convertibility of the Group's transaction and functional currencies - The Group first adopted the revised HKAS 21 "Lack of Exchangeability," which had **no impact on financial statements** as all currencies used by the Group are convertible[8](index=8&type=chunk)[9](index=9&type=chunk)[10](index=10&type=chunk) [3. Segment Information](index=5&type=section&id=3.%20Segment%20Information) The Group operates in 'Property Development and Investment' and 'Financial Investments' segments, with property contributing **HK$250 million** in revenue and **HK$326 million** in segment results, while financial investments recorded a **HK$9.4 million** loss - The Group's principal operating segments are **property development and investment** and **financial investments**[11](index=11&type=chunk) Reportable Segment Information (For the six months ended June 30) | Indicator | Property Development and Investment (HK$ '000) | Financial Investments (HK$ '000) | Total (HK$ '000) | | :--- | :--- | :--- | :--- | | **2025** | | | | | Revenue from external customers | 249,986 | 351 | 250,337 | | Segment results | 325,681 | (9,384) | 316,297 | | **2024** | | | | | Revenue from external customers | 222,464 | 21,629 | 244,093 | | Segment results | 493,990 | (21,193) | 472,797 | - In the first half of 2025, revenue from the property development and investment segment **increased by 12.37% year-on-year**, while financial investment segment revenue **decreased significantly by 98.38% year-on-year**[13](index=13&type=chunk)[14](index=14&type=chunk) [4. Revenue, Other Income and Gains, Net](index=6&type=section&id=4.%20Revenue,%20Other%20Income%20and%20Gains,%20Net) Total revenue increased by 2.56% to **HK$250 million**, primarily from investment property rental income, while other income and gains, net, rose by 3.85% to **HK$173 million**, significantly boosted by net exchange gains Analysis of Revenue, Other Income and Gains, Net (For the six months ended June 30) | Indicator | 2025 (HK$ '000) | 2024 (HK$ '000) | Change (%) | | :--- | :--- | :--- | :--- | | **Revenue** | | | | | Gross rental income from investment properties under operating leases | 249,986 | 222,464 | 12.37% | | Dividend income from listed equity investments | 351 | 746 | -52.95% | | Dividend income from an unlisted fund investment | - | 20,883 | -100.00% | | **Total revenue** | 250,337 | 244,093 | 2.56% | | **Other income and gains, net** | | | | | Bank interest income | 27,044 | 39,283 | -31.29% | | Fair value gains on investment properties | 24,848 | 122,881 | -79.77% | | Fair value gains on financial assets at fair value through profit or loss, net | 10,134 | - | N/A | | Fair value gains on derivative financial instruments, net | 13,550 | 4,106 | 230.02% | | Exchange gains, net | 96,865 | - | N/A | | **Total other income and gains, net** | 172,820 | 166,413 | 3.85% | [5. Profit/(Loss) Before Tax](index=7&type=section&id=5.%20Profit%2F(Loss)%20Before%20Tax) The Group reported a pre-tax loss of **HK$3.15 million**, a significant decline from the prior year's profit, influenced by fair value gains, increased exchange gains, and reduced depreciation Components of Profit/(Loss) Before Tax (For the six months ended June 30) | Indicator | 2025 (HK$ '000) | 2024 (HK$ '000) | Change (%) | | :--- | :--- | :--- | :--- | | Depreciation of owned assets | 2,861 | 10,398 | -72.48% | | Depreciation of right-of-use assets | 6,880 | 7,034 | -2.19% | | Total depreciation | 9,741 | 17,432 | -44.01% | | Fair value losses/(gains) on financial assets at fair value through profit or loss, net | (10,134) | 21,210 | -147.78% | | Exchange differences, net | (96,865) | 22,403 | -532.30% | | Total employee benefit expenses | 75,077 | 73,266 | 2.47% | [6. Income Tax](index=7&type=section&id=6.%20Income%20Tax) Income tax expense increased by 21.64% to **HK$33.6 million**, primarily from UK operations taxed at 25%, with Hong Kong and Mainland China having varying corporate tax rates - Hong Kong profits tax rate is **16.5%**, with some subsidiaries subject to a **two-tiered tax rate of 8.25%**[17](index=17&type=chunk) - The UK corporate tax rate is **25%**[17](index=17&type=chunk) - Mainland China corporate income tax rate is **25%**, with Tibetan subsidiaries enjoying a **preferential rate of 15%**[17](index=17&type=chunk) Current Tax Expense for the Period (For the six months ended June 30) | Region | 2025 (HK$ '000) | 2024 (HK$ '000) | Change (%) | | :--- | :--- | :--- | :--- | | United Kingdom | 33,604 | 27,625 | 21.64% | [7. Dividends](index=7&type=section&id=7.%20Dividends) The Board resolved not to declare an interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board resolved **not to declare an interim dividend** for the six months ended June 30, 2025 (2024: nil)[19](index=19&type=chunk) [8. Earnings/(Loss) Per Share Attributable to Owners of the Parent](index=8&type=section&id=8.%20Earnings%2F(Loss)%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Parent) Basic loss per share was **0.95 HK cents**, a decline from the prior year's profit, directly reflecting the loss attributable to owners of the parent, with no dilutive potential ordinary shares Calculation of Basic and Diluted Earnings/(Loss) Per Share (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit/(loss) attributable to owners of the parent (HK$ '000) | (36,754) | 91,006 | | Basic and diluted earnings/(loss) per share | (0.95) HK cents | 2.34 HK cents | | Weighted average number of ordinary shares outstanding | 3,882,334,668 | 3,882,334,668 | - The Group had **no potential dilutive ordinary shares** outstanding during the period, thus basic and diluted earnings/(loss) per share are the same[20](index=20&type=chunk) [9. Property and Equipment](index=8&type=section&id=9.%20Property%20and%20Equipment) Additions to property and equipment significantly increased to **HK$6.43 million**, primarily due to new right-of-use assets Additions to Property and Equipment (For the six months ended June 30) | Category | 2025 (HK$ '000) | 2024 (HK$ '000) | | :--- | :--- | :--- | | Owned assets | 92 | 34 | | Right-of-use assets | 6,342 | - | | **Total additions** | 6,434 | 34 | [10. Trade Receivables](index=8&type=section&id=10.%20Trade%20Receivables) Trade receivables increased to **HK$9.71 million**, primarily rental income with minimal credit risk, mostly overdue for less than 12 months Ageing Analysis of Trade Receivables (As at June 30) | Ageing | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | | :--- | :--- | :--- | | Within 1 month | 1,395 | - | | 1 to 3 months | 6,093 | 7,822 | | 3 to 6 months | 1,078 | 922 | | 6 to 12 months | 1,144 | - | | **Total** | 9,710 | 8,744 | - Trade receivables primarily consist of **rental income**, generally collected in advance, with overdue balances regularly reviewed by senior management[24](index=24&type=chunk) - The Group faces **insignificant credit risk**, with expected credit losses being very low[25](index=25&type=chunk) [11. Share Capital](index=9&type=section&id=11.%20Share%20Capital) The company's authorized share capital remained at **HK$2 billion**, with issued and fully paid share capital at **HK$388.23 million**, and no interim dividend was declared Share Capital Structure (As at June 30) | Category | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | | :--- | :--- | :--- | | Authorized share capital (20,000,000,000 ordinary shares of HK$0.10 each) | 2,000,000 | 2,000,000 | | Issued and fully paid share capital (3,882,334,668 ordinary shares of HK$0.10 each) | 388,233 | 388,233 | - The Board resolved **not to declare an interim dividend** for the six months ended June 30, 2025[27](index=27&type=chunk) [Management Discussion and Analysis](index=9&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's perspective on the Group's operational and financial performance, strategic outlook, and risk management for the period [Business Review](index=9&type=section&id=Business%20Review) The Group continues its property development and investment activities in major global cities, including London, Hong Kong, and Mainland China, focusing on long-term returns through infrastructure and prudent investment - The Group's principal business focuses on **property development and investment** in major cities across London, Hong Kong, and Mainland China[28](index=28&type=chunk) [Revenue and Operating Results](index=9&type=section&id=Revenue%20and%20Operating%20Results) Total revenue remained stable at **HK$250 million**, with investment property rental income up 12.4%, while financial investments recorded a **HK$10.1 million** fair value gain, reversing prior year's loss, but joint venture investments incurred a **HK$10.3 million** loss, leading to a **HK$36.8 million** loss attributable to shareholders - Rental income from the investment property portfolio was **HK$250 million**, an **increase of 12.4%** from the prior year, mainly due to new leases at One Kingdom Street and the appreciation of GBP against HKD[30](index=30&type=chunk) - The financial investment segment recorded a **fair value gain of HK$10.1 million** (2024: loss of HK$21.2 million) and a **realized gain of HK$0.3 million** from the redemption of unlisted investment funds[31](index=31&type=chunk) - Operating results from joint venture investments recorded a **loss of HK$10.3 million** (2024: profit of HK$243.3 million), primarily due to reduced residential unit sales at Thames City Phase 1 and lower expected priority returns from The Whiteley[31](index=31&type=chunk) - Loss attributable to shareholders was **HK$36.8 million** (2024: profit of HK$91 million), with basic loss per share of **0.95 HK cents** (2024: profit of 2.34 HK cents)[33](index=33&type=chunk) [Investment Properties](index=10&type=section&id=Investment%20Properties) The Group's two prime commercial properties in London, The Leadenhall Building and One Kingdom Street, totaling **875,000 sq ft**, continue to generate stable rental income of **HK$250 million** with a 99% collection rate [London](index=10&type=section&id=London) The Group's two core commercial properties in London, The Leadenhall Building and One Kingdom Street, consistently provide stable rental income, reaching **HK$250 million** with a 99% collection rate for the period - The Group owns two Grade A commercial properties in London: **The Leadenhall Building** and **One Kingdom Street**, with a total leasable area of approximately **875,000 sq ft**[34](index=34&type=chunk)[35](index=35&type=chunk) - UK investment properties generated **rental income of HK$250 million** (2024: HK$222.5 million) during the period, maintaining a high **rental collection rate of 99%** (2024: 96%)[36](index=36&type=chunk) [The Leadenhall Building](index=11&type=section&id=The%20Leadenhall%20Building) The Leadenhall Building, a fully leased iconic London landmark, has a weighted average remaining lease term of 8.1 years, generating approximately **£42.7 million** in annual contractual rent with a 3.7% yield - The Leadenhall Building is **fully leased**, with a weighted average remaining lease term of approximately **8.1 years**, including a fixed term of 6.9 years[37](index=37&type=chunk) - Current annual contractual rent is approximately **£42.7 million** (December 31, 2024: £42.1 million), with a rental yield of approximately **3.7% per annum** (December 31, 2024: 3.7%)[37](index=37&type=chunk) [One Kingdom Street](index=11&type=section&id=One%20Kingdom%20Street) One Kingdom Street, offering **265,000 sq ft** of Grade A office space, is 89% leased with an annual contractual rent of approximately **£16.9 million** and a 5.8% yield, with plans to redevelop a vacant area into an urban logistics hub - One Kingdom Street offers approximately **265,000 sq ft of Grade A office space**, with **89% leased** to reputable anchor tenants[39](index=39&type=chunk) - Current annual contractual rent is approximately **£16.9 million** (December 31, 2024: £16.0 million), with a rental yield of approximately **5.8% per annum** (December 31, 2024: 5.5%)[39](index=39&type=chunk) - The Group is exploring transforming the **15,360 sq ft vacant area** returned after the completion of Elizabeth Line construction into an urban logistics hub[39](index=39&type=chunk) [Joint Ventures](index=11&type=section&id=Joint%20Ventures) The Group's total investment in seven joint venture property projects increased to **HK$9.8 billion**, primarily due to GBP appreciation, with projects in the UK, Hong Kong, and Mainland China expected to contribute significantly to earnings in the short to medium term [London](index=12&type=section&id=London) The Group's London joint venture developments, Thames City and The Whiteley, continue to create shareholder value, with **502 residential units** sold at Thames City Phase 1 and **101 residential properties** sold at The Whiteley - The Group continues to create value in its London property development business through its interests in **Thames City** and **The Whiteley**[42](index=42&type=chunk) - As of June 30, 2025, **502 residential units** in Thames City Phase 1 have been sold, totaling over **£1 billion** in value[42](index=42&type=chunk) - **101 residential properties** at The Whiteley have been sold, with total sales proceeds of approximately **£661 million**[42](index=42&type=chunk) [Thames City](index=12&type=section&id=Thames%20City) Thames City, a large-scale mixed-use development in central London with approximately **1,500 luxury residential units**, sold **15 units** for **£66 million** during the period, with Phase 2 under construction and the Group holding a 50% interest - The Thames City project is a mixed-use development comprising approximately **1,500 luxury residential units**, with a total saleable area of approximately **1.7 million sq ft**[43](index=43&type=chunk) - **15 units were sold** during the period, contributing **£66 million** in sales revenue[43](index=43&type=chunk) - Thames City Phases 2 and 3 are in preparation, with Phase 2 already commenced and expected to be **completed in 2028**[44](index=44&type=chunk) - The Group holds a **50% interest** in the Thames City project[45](index=45&type=chunk) [The Whiteley](index=12&type=section&id=The%20Whiteley) The Whiteley project, expected to complete in H2 2025, will offer **139 luxury residential apartments** and a five-star hotel; **91 residential units** have been delivered, **101 pre-sold for £661 million**, and the hotel pre-sold for **£180 million**, with the Group holding approximately 47% equity - The Whiteley project is expected to be **completed in H2 2025**, offering **139 luxury residential apartments**, a **109-room five-star Six Senses Hotel**, and retail and dining spaces[46](index=46&type=chunk)[47](index=47&type=chunk) - As of June 30, 2025, **91 residential units** have been delivered to buyers with sales of **£611 million**; **101 residential units** have been pre-sold, totaling **£661 million**[47](index=47&type=chunk) - The Six Senses Hotel has been **pre-sold for £180 million**, with completion of sale expected in H2 2025[47](index=47&type=chunk) - The Group holds approximately **47% equity interest** but **50% voting rights** in this project[47](index=47&type=chunk) [The Quayside](index=13&type=section&id=The%20Quayside) The Quayside, a **28-story Grade A office building** in Hong Kong with **795,000 sq ft GFA**, maintained a **75% occupancy rate** as of June 30, 2025, primarily leased to the Hospital Authority, with the Group holding a 25% interest - The Quayside is a **28-story Grade A office building** with a total GFA of approximately **795,000 sq ft**, maintaining an **occupancy rate of 75%** as of June 30, 2025[48](index=48&type=chunk) - The Group holds a **25% interest** in The Quayside project[48](index=48&type=chunk) [15 Shouson Hill Road](index=13&type=section&id=15%20Shouson%20Hill%20Road) 15 Shouson Hill Road, comprising **15 luxury detached houses** totaling **88,000 sq ft GFA**, has successfully sold **7 houses** for approximately **HK$3.9 billion**, with 8 remaining for sale and the Group holding a 42% interest - 15 Shouson Hill Road comprises a total of **15 luxury detached houses**, with a total GFA of approximately **88,000 sq ft**[49](index=49&type=chunk) - As of June 30, 2025, **7 houses have been successfully sold**, contributing total sales revenue of approximately **HK$3.9 billion**[49](index=49&type=chunk) - The Group holds a **42% interest** in 15 Shouson Hill Road[50](index=50&type=chunk) [Kowloonbay International Trade & Exhibition Centre (KITEC)](index=13&type=section&id=Kowloonbay%20International%20Trade%20%26%20Exhibition%20Centre%20(KITEC)) Kowloonbay International Trade & Exhibition Centre (KITEC) ceased operations in 2024, and its mixed-use commercial and residential redevelopment plan was approved by the Town Planning Board on July 18, 2025, with the Group holding a **15% effective interest** - Kowloonbay International Trade & Exhibition Centre (KITEC) **ceased operations in 2024**, and its mixed-use property redevelopment plan has been **approved by the Town Planning Board**[51](index=51&type=chunk) - The Group holds a **15% effective interest** in this project[51](index=51&type=chunk) [Mainland China](index=13&type=section&id=Mainland%20China) The Group has two development projects in Mainland China, Yancheng, Jiangsu, and Jiangmen, Guangdong, with Yancheng Phase 1 completed and delivered in 2023, and Jiangmen awaiting infrastructure completion before construction - The Group has two development projects in Mainland China: **Yancheng, Jiangsu**, and **Jiangmen, Guangdong**[52](index=52&type=chunk)[53](index=53&type=chunk) - Phase 1 of the Yancheng, Jiangsu project was **completed and commenced delivery in 2023**[52](index=52&type=chunk) - The Jiangmen, Guangdong project has completed site surveys, with **related road and public utility infrastructure construction** required before building works commence[54](index=54&type=chunk) [Financial Investment Business](index=14&type=section&id=Financial%20Investment%20Business) The financial investment segment recorded a **HK$9.4 million** loss, a reduction from the prior year, with a **HK$10.1 million** fair value gain and **HK$0.3 million** realized gain from unlisted investment fund redemptions totaling **HK$549.4 million** - The financial investment segment recorded a **loss of HK$9.4 million** (2024: loss of HK$21.2 million)[55](index=55&type=chunk) - The investment portfolio recorded a **fair value gain of HK$10.1 million** (2024: fair value loss of HK$21.2 million)[55](index=55&type=chunk) - Realized gain of **HK$0.3 million** from the redemption of unlisted investment funds, with total redemption proceeds of **HK$549.4 million**[55](index=55&type=chunk) [Corporate Strategy and Outlook](index=14&type=section&id=Corporate%20Strategy%20and%20Outlook) Facing a high-interest rate environment, geopolitical tensions, and economic uncertainties, the Group anticipates continued challenges in global and local property markets, adopting a cautious approach to seek quality asset acquisition opportunities while ensuring portfolio stability and a robust balance sheet - The global economy is expected to be **challenging and uncertain**, with the Mainland China and Hong Kong property markets remaining **subdued in the coming years**[56](index=56&type=chunk) - The Group will adopt a **conservative approach**, closely monitoring the market for potential acquisitions of **quality assets and businesses**[56](index=56&type=chunk) - Focus will be on ensuring the **stability and sustainability** of the existing property portfolio and maintaining a **robust balance sheet**[56](index=56&type=chunk) [Financial Review](index=14&type=section&id=Financial%20Review) The Group maintains a sound financial position, successfully redeeming unlisted investment funds to improve liquidity, with net borrowings slightly increasing to **HK$8.6 billion**, net gearing ratio slightly decreasing to 62.2%, and a weighted average debt cost of 5.5% [Financial Investments](index=14&type=section&id=Financial%20Investments) The financial investment portfolio, comprising listed equity securities and unlisted investment funds, decreased to **HK$266.8 million** due to unlisted fund redemptions, recognizing **HK$10.1 million** in unrealized fair value gains and **HK$112.9 million** in realized cash gains - The Group successfully redeemed unlisted investment funds, realizing total proceeds of **HK$549.4 million**, significantly improving its liquidity position[57](index=57&type=chunk) Financial Assets at Fair Value Through Profit or Loss (As at June 30) | Category | June 30, 2025 (HK$ million) | December 31, 2024 (HK$ million) | | :--- | :--- | :--- | | Listed equity securities | 52.2 | 45.8 | | Unlisted investment funds | 214.6 | 760.0 | | **Total** | 266.8 | 805.8 | - Unrealized fair value gains of **HK$10.1 million** (2024: loss of HK$21.2 million) were recognized during the period, and **HK$112.9 million** in realized cash gains were achieved[58](index=58&type=chunk) [Liquidity and Financial Resources](index=15&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group held **HK$2.2 billion** in cash, with net borrowings slightly increasing to **HK$8.6 billion**, a net gearing ratio of **62.2%**, and total debt of **HK$10.8 billion**, with a weighted average cost of **5.5%** - As of June 30, 2025, the Group held **HK$2.2 billion in cash**, approximately **16% denominated in HKD**, **43% in USD**, and **40% in GBP**[59](index=59&type=chunk) - Net borrowings slightly increased to **HK$8.6 billion** (December 31, 2024: HK$8.4 billion)[59](index=59&type=chunk) - The net gearing ratio slightly decreased from **65.9%** as of December 31, 2024, to **62.2%** as of June 30, 2025[59](index=59&type=chunk) - Total debt amounted to **HK$10.8 billion**, with **HK$3.9 billion repayable within one year** and **HK$6.9 billion repayable after one year**[60](index=60&type=chunk) - The weighted average cost of debt for the period was **5.5% per annum** (2024: 5.9%)[60](index=60&type=chunk) - Net current liabilities were **HK$1.5 billion**, primarily due to notes payable and bank loans reclassified from non-current to current liabilities as their maturity dates approached, supported by **refinancing from the controlling shareholder**[60](index=60&type=chunk) - As of June 30, 2025, shareholders' equity was **HK$13.8 billion** (December 31, 2024: HK$12.8 billion), with **net asset value per share of HK$3.56** (December 31, 2024: HK$3.29)[61](index=61&type=chunk) [Contingent Liabilities / Financial Guarantees](index=16&type=section&id=Contingent%20Liabilities%20/%20Financial%20Guarantees) As of June 30, 2025, the Group provided guarantees of up to **HK$1.305 billion** for loans to an associate and committed up to **HK$1.004 billion** for capital contributions and debt guarantees to a joint venture - Provided guarantees to banks for loans granted to an associate, up to **HK$1.305 billion** (December 31, 2024: HK$1.328 billion)[67](index=67&type=chunk) - Committed up to **HK$1.004 billion** to certain financial institutions for a joint venture's capital contributions, including project development costs, guarantees for operating expense overruns, and certain joint venture liabilities[67](index=67&type=chunk) [Pledged Assets](index=16&type=section&id=Pledged%20Assets) As of June 30, 2025, investment properties valued at **HK$12.3 billion**, bank deposits of **HK$250 million**, property and equipment of **HK$54.7 million**, and equity interests in certain subsidiaries were pledged as collateral for bank financing - As of June 30, 2025, **HK$12.3 billion in investment properties**, **HK$250 million in bank deposits**, **HK$54.7 million in property and equipment**, and equity interests in certain subsidiaries were **pledged as collateral** for bank financing granted to the Group[63](index=63&type=chunk) [Exchange Rate Risk and Hedging](index=16&type=section&id=Exchange%20Rate%20Risk%20and%20Hedging) The Group manages exchange rate risk through a strategic hedging policy, including interest rate swaps, natural hedging with same-currency borrowings, and timely use of forward currency contracts - The Group adopts a **strategic hedging policy** to optimize risk-adjusted returns, including using **interest rate swaps** to hedge borrowing interest rate risk[64](index=64&type=chunk)[68](index=68&type=chunk) - **Same-currency borrowings** are used as a natural hedge to match asset and cash flow currencies[68](index=68&type=chunk) - **Forward currency contracts** are utilized in a timely manner to hedge currency risk[68](index=68&type=chunk) [Employees](index=16&type=section&id=Employees) As of June 30, 2025, the Group employed **108 staff** across Hong Kong, Mainland China, and the UK, with total remuneration costs (excluding directors' emoluments) of approximately **HK$53 million**, offering competitive compensation and benefits - As of June 30, 2025, the Group employed a total of **108 staff**[65](index=65&type=chunk) - Remuneration costs for the period (excluding directors' emoluments) were approximately **HK$53 million**[65](index=65&type=chunk) - Remuneration policy ensures **market competitiveness**, providing mandatory provident fund contributions, medical insurance, and training subsidies[65](index=65&type=chunk) [Share Options](index=16&type=section&id=Share%20Options) The company's 2015 share option scheme expired on May 21, 2025, with no options granted during its term, and a new scheme adopted on May 19, 2025, also had no options granted as of June 30, 2025 - The Company's **2015 Share Option Scheme expired on May 21, 2025**, with **no share options granted** during its tenure[66](index=66&type=chunk) - A **new share option scheme was adopted on May 19, 2025**, with **no share options granted** as of June 30, 2025[69](index=69&type=chunk) [Corporate Governance Practices](index=17&type=section&id=Corporate%20Governance%20Practices) The company has applied and complied with the principles and code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules for the six months ended June 30, 2025 - The Company has applied and complied with the **principles and code provisions of the Corporate Governance Code** as set out in Appendix C1 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[70](index=70&type=chunk) [Directors' Securities Transactions](index=17&type=section&id=Directors'%20Securities%20Transactions) The company adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all directors confirmed compliance for the six months ended June 30, 2025 - The Company has adopted the **Model Code for Securities Transactions by Directors of Listed Issuers** as its code of conduct, as set out in Appendix C3 of the Listing Rules[71](index=71&type=chunk) - All Directors have confirmed compliance with the **required standards** set out in the Model Code for the six months ended June 30, 2025[71](index=71&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=17&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the six months ended June 30, 2025, and no treasury shares were held - Neither the Company nor any of its subsidiaries **purchased, sold, or redeemed any of the Company's listed securities** during the six months ended June 30, 2025[72](index=72&type=chunk) - As of June 30, 2025, the Company **held no treasury shares**[72](index=72&type=chunk) [Review of Interim Results](index=17&type=section&id=Review%20of%20Interim%20Results) The Audit Committee discussed and reviewed the Group's unaudited condensed consolidated interim financial information for the six months ended June 30, 2025, with management - The Audit Committee has discussed and reviewed the Group's **unaudited condensed consolidated interim financial information** for the six months ended June 30, 2025, with management[73](index=73&type=chunk) [Publication of Results Announcement and Interim Report](index=17&type=section&id=Publication%20of%20Results%20Announcement%20and%20Interim%20Report) This results announcement has been published on the company's website and HKEXnews website, with the interim report to be published later on both platforms - This results announcement has been published on the Company's website **www.ccland.com.hk** and the HKEXnews website **www.hkexnews.hk**[74](index=74&type=chunk) - The Company's **2025 interim report** will also be published on both websites at a later date[74](index=74&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表 任何聲明，並明確表示概不會就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。 Bilibili Inc. 嗶哩嗶哩股份有限公司 （於開曼群島註冊成立以不同投票權控制的有限責任公司） （股份代號：9626） 截 至 2025 年 6 月 3 0 日止六個月的 中期業績公告 嗶哩嗶哩股份有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然公佈本公司、其子 公司及併表關聯實體（「本集團」）截至2025年6月30日止六個月（「報告期間」）的未經審計 中期合併業績，連同2024年同期的比較數字。該等中期業績根據美國公認會計準則（「美 國公認會計準則」）編製並經董事會審計委員會（「審計委員會」）審閱。本公司獨立核數 師羅兵咸永道會計師事務所已根據國際審閱委聘準則第2410號「 由實體的獨立核數師執 行的中期財務資料審閱 」審閱我們截至2025年6月30日止六個月的中期財務資料。 於本公告中，「我們」及「我們的」指本公司及（如文義另有所指）本集團。 1 截至2025年6月30日止六個月財務 ...

Financial Highlights [Financial Highlights](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) For the six months ended June 30, 2025, Soundwill Group's revenue significantly decreased from HKD 1,030.1 million to HKD 180.7 million, with loss attributable to owners expanding to HKD 1,337.6 million and basic loss per share at HKD (4.72), while total assets and net assets declined, but the gearing ratio remained at 9% Financial Highlights for the Six Months Ended June 30 | Metric | 2025 (HKD million) | 2024 (HKD million) | | :--- | :--- | :--- | | Revenue | 180.7 | 1,030.1 | | Net fair value loss on investment properties | (1,423) | (1,324) | | Loss attributable to owners of the Company | (1,337.6) | (974.8) | | Basic loss per share (HKD) | HKD (4.72) | HKD (3.44) | **Financial Position at Period End:** | Metric | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | | :--- | :--- | :--- | | Total Assets | 16,617 | 17,975 | | Net Assets | 14,345 | 15,677 | | Total Borrowings | 1,350 | 1,360 | | Gearing Ratio | 9% | 9% | | Net asset value per share (HKD) | HKD 50.6 | HKD 55.3 | Consolidated Financial Statements [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E5%85%A5%E8%A1%A8) For the six months ended June 30, 2025, the Group's total revenue significantly decreased by 82.46% to HKD 180.7 million, primarily due to a sharp decline in goods and services revenue, with loss for the period expanding to HKD 1,337.6 million mainly from increased net fair value loss on investment properties Key Data from Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue from goods and services | 18,522 | 856,374 | -97.84% | | Rental income | 162,190 | 173,741 | -6.76% | | **Total Revenue** | **180,712** | **1,030,115** | **-82.46%** | | Cost of sales | (31,353) | (575,483) | -94.55% | | Gross profit | 149,359 | 454,632 | -67.14% | | Net fair value loss on investment properties | (1,423,124) | (1,324,070) | +7.48% | | Finance costs | (24,819) | (38,576) | -35.66% | | Loss for the period | (1,337,584) | (974,549) | +37.25% | | Loss attributable to owners of the Company | (1,337,584) | (974,829) | +37.26% | | Basic loss per share | HKD (4.72) | HKD (3.44) | +37.21% | [Consolidated Statement of Financial Position](index=4&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the Group's total assets and net assets both decreased, with a significant reduction in investment property value within non-current assets, while current liabilities saw a substantial decrease in borrowings, leading to an increase in net current assets Key Data from Consolidated Statement of Financial Position | Metric | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | **Non-current assets** | | | | | Investment properties | 13,861,625 | 15,266,445 | -9.19% | | **Total non-current assets** | **14,223,717** | **15,643,675** | **-9.19%** | | **Current assets** | | | | | Short-term bank deposits | 919,437 | 827,153 | +11.15% | | Cash and cash equivalents | 221,044 | 323,633 | -31.54% | | **Total current assets** | **2,393,468** | **2,331,464** | **+2.66%** | | **Current liabilities** | | | | | Borrowings | 438,474 | 891,298 | -50.80% | | **Total current liabilities** | **1,202,564** | **1,669,611** | **-27.97%** | | **Net current assets** | **1,190,904** | **661,853** | **+79.93%** | | **Non-current liabilities** | | | | | Borrowings | 911,598 | 468,560 | +94.55% | | **Total non-current liabilities** | **1,069,216** | **628,787** | **+69.90%** | | **Net assets** | **14,345,405** | **15,676,741** | **-8.49%** | | **Total equity** | **14,345,405** | **15,676,741** | **-8.49%** | Notes to the Condensed Consolidated Interim Financial Statements [Basis of Preparation](index=6&type=section&id=%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The Group's condensed consolidated interim financial statements are prepared in HKD in accordance with the Hong Kong Stock Exchange Listing Rules and Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the HKICPA - Financial statements are prepared in accordance with the Hong Kong Stock Exchange Listing Rules and Hong Kong Accounting Standard 34 "Interim Financial Reporting"[7](index=7&type=chunk) - The statements are presented in HKD, which is also the Company's functional currency[8](index=8&type=chunk) [Significant Accounting Policies](index=6&type=section&id=%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The financial statements are prepared primarily under the historical cost convention, except for investment properties, leasehold land and buildings, and financial assets measured at fair value, with new HKFRS amendments applied for the first time this period having no significant impact on the consolidated financial position and performance - Financial statements are primarily prepared using the historical cost convention, except for investment properties, leasehold land and buildings, and financial assets measured at fair value[9](index=9&type=chunk) - Revisions to Hong Kong Financial Reporting Standards were first applied in this interim period, with no significant impact on the Group's consolidated financial position and performance[10](index=10&type=chunk) [Segment Information](index=7&type=section&id=%E5%88%86%E9%A1%9E%E8%B3%87%E6%96%99) The Group identifies and reports three main operating segments based on internal financial information: property development, property leasing, and building management and other services, each managed independently due to differing resource requirements and operating approaches - The Group identifies and reports three main operating segments: **property development**, **property leasing**, and **building management and other services**[12](index=12&type=chunk) - Each business line is managed separately due to differing resource requirements and operating approaches[12](index=12&type=chunk) [Segment Revenue and Results](index=7&type=section&id=%E5%88%86%E9%A1%9E%E6%94%B6%E7%9B%8A%E5%8F%8A%E6%A5%AD%E7%B8%BE) Property development segment revenue significantly decreased, leading to a substantial reduction in overall segment revenue and profit, while property leasing and building management and other services segments remained relatively stable, but overall segment profit was dragged down by property development Segment Revenue and Results | Segment | 2025 Revenue (HKD thousand) | 2024 Revenue (HKD thousand) | Revenue Change (%) | 2025 (Loss)/Profit (HKD thousand) | 2024 (Loss)/Profit (HKD thousand) | (Loss)/Profit Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Property Development | 6,833 | 846,029 | -99.19% | (11,223) | 282,977 | -103.97% | | Property Leasing | 162,422 | 173,825 | -6.67% | 126,461 | 147,594 | -14.32% | | Building Management and Other Services | 12,268 | 10,893 | +12.62% | 7,352 | 8,152 | -9.81% | | **Segment Total** | **181,523** | **1,030,747** | **-82.39%** | **122,590** | **438,723** | **-72.06%** | | Net fair value loss on investment properties | (1,423,124) | (1,324,070) | +7.48% | | | | | Loss before income tax expense | (1,322,996) | (916,737) | +44.33% | | | | - Operating and reportable segment results exclude finance costs, net fair value loss on investment properties, gain on disposal of a subsidiary, certain other income, other gains and losses, certain administrative expenses, and income tax expense[14](index=14&type=chunk) [Segment Assets and Liabilities](index=8&type=section&id=%E5%88%86%E9%A1%9E%E8%B3%87%E7%94%A2%E5%8F%8A%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group's total segment assets decreased, primarily due to a reduction in property leasing segment assets, while total segment liabilities slightly declined, but total borrowings remained stable Segment Assets and Liabilities | Segment | June 30, 2025 Segment Assets (HKD thousand) | December 31, 2024 Segment Assets (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Property Development | 1,336,992 | 1,430,883 | -6.69% | | Property Leasing | 14,103,271 | 15,494,105 | -8.98% | | Building Management and Other Services | 35,085 | 31,800 | +10.33% | | **Total Segment Assets** | **15,475,348** | **16,956,788** | **-8.74%** | | **Total Assets** | **16,617,185** | **17,975,139** | **-7.49%** | | **Total Segment Liabilities** | **550,049** | **555,608** | **-1.00%** | | Borrowings | 1,350,072 | 1,359,858 | -0.72% | | **Total Liabilities** | **2,271,780** | **2,298,398** | **-1.16%** | - Segment assets exclude certain property, plant and equipment, financial assets at fair value through other comprehensive income, financial assets at fair value through profit or loss, assets classified as held for sale, short-term bank deposits, and certain cash and cash equivalents[15](index=15&type=chunk) - Segment liabilities exclude certain other payables, provision for income tax, deferred tax liabilities, deposits received for disposal of investment properties, and borrowings[16](index=16&type=chunk) [Other Income](index=9&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) For the six months ended June 30, 2025, the Group's total other income was HKD 31.965 million, a slight decrease from the prior year, primarily due to reduced interest income from financial assets at fair value through profit or loss Other Income Details | Source of Income | 2025 (HKD thousand) | 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Interest income from financial assets at fair value through profit or loss and other bank interest income | 21,800 | 26,811 | -18.69% | | Interest income from loans receivable | 4,567 | 3,600 | +26.86% | | Dividend income from financial assets at fair value through other comprehensive income | 1,914 | — | N/A | | Miscellaneous income | 3,684 | 4,142 | -11.18% | | **Total** | **31,965** | **34,553** | **-7.50%** | [Finance Costs](index=9&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) For the six months ended June 30, 2025, the Group's total finance costs were HKD 24.819 million, a significant decrease of 35.66% from the prior year, primarily due to reduced interest expense on borrowings Finance Costs Details | Source of Cost | 2025 (HKD thousand) | 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Interest expense on borrowings | 24,103 | 37,839 | -36.29% | | Interest expense on lease liabilities | 716 | 737 | -2.85% | | **Total** | **24,819** | **38,576** | **-35.66%** | [Loss Before Income Tax Expense](index=9&type=section&id=%E9%99%A4%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF%E5%89%8D%E虧%E6%90%8D) For the six months ended June 30, 2025, the Group's loss before income tax expense was HKD 1,322.996 million, a 44.33% increase in loss from the prior year, primarily impacted by a significant reduction in cost of completed properties held for sale recognized and increased net fair value loss on investment properties Components of Loss Before Income Tax Expense | Item | 2025 (HKD thousand) | 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Cost of completed properties held for sale recognized | 4,390 | 553,874 | -99.21% | | Depreciation of right-of-use assets and other property, plant and equipment | 620 | 1,342 | -53.79% | | Employee remuneration expenses | 70,285 | 73,911 | -4.90% | | Rental for short-term leases and low-value leases | 532 | 103 | +416.50% | - Loss before income tax expense is stated after deducting the above expenses[18](index=18&type=chunk) [Income Tax Expense](index=10&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, the Group's income tax expense significantly decreased to HKD 14.588 million, a 74.76% reduction from the prior year, primarily due to a substantial decrease in Hong Kong profits tax Income Tax Expense Details | Tax Type | 2025 (HKD thousand) | 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Hong Kong profits tax | 11,172 | 53,861 | -79.25% | | PRC enterprise income tax | 59 | 205 | -71.22% | | PRC land appreciation tax | 4 | 394 | -98.98% | | Deferred tax expense | 3,353 | 3,352 | +0.03% | | **Total** | **14,588** | **57,812** | **-74.76%** | - Hong Kong profits tax is provided at a rate of **16.5%**, and PRC enterprise income tax is levied at a rate of **25%**[20](index=20&type=chunk)[21](index=21&type=chunk) [Loss Per Share](index=10&type=section&id=%E6%AF%8F%E8%82%A1%E虧%E6%90%8D) For the six months ended June 30, 2025, the basic loss per share attributable to owners of the Company was HKD 4.72, an increase of 37.21% from HKD 3.44 in the prior year Loss Per Share Calculation | Metric | 2025 (HKD thousand/share) | 2024 (HKD thousand/share) | Change (%) | | :--- | :--- | :--- | :--- | | Loss attributable to owners of the Company | (1,337,584) | (974,829) | +37.21% | | Number of ordinary shares used in calculating basic loss per share | 283,308,635 | 283,308,635 | 0% | | **Basic loss per share** | **HKD (4.72)** | **HKD (3.44)** | **+37.21%** | - Diluted loss per share is not presented as there were no potential ordinary shares in issue during the period[22](index=22&type=chunk) [Trade and Other Receivables / Loans Receivable](index=11&type=section&id=%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%EF%BC%8F%E6%87%89%E6%94%B6%E8%B2%B8%E6%AC%BE) As of June 30, 2025, the Group's total trade receivables slightly increased, while net loans receivable decreased, resulting in a slight overall reduction in total trade and other receivables Trade and Other Receivables / Loans Receivable Details | Item | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Gross trade receivables, net | 54,408 | 48,895 | +11.28% | | 0 to 30 days | 11,289 | 12,778 | -11.65% | | 31 to 90 days | 12,885 | 16,002 | -19.48% | | 91 to 180 days | 12,266 | 9,300 | +31.89% | | Over 180 days | 17,968 | 10,815 | +66.14% | | Gross loans receivable, net | 11,432 | 12,589 | -9.19% | | Other receivables, utility deposits and prepayments | 85,427 | 93,730 | -8.86% | | **Total trade and other receivables classified as current assets** | **151,267** | **155,214** | **-2.54%** | | Non-current assets: Loans receivable | 213,092 | 222,181 | -4.00% | | **Total** | **364,359** | **377,395** | **-3.45%** | - The Group's credit period ranges from **30 to 90 days**[23](index=23&type=chunk) [Trade and Other Payables](index=12&type=section&id=%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, the Group's total trade payables increased, primarily due to a rise in payables over 90 days, while other payables decreased, leading to a slight overall reduction in total trade and other payables Trade and Other Payables Details | Item | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Gross trade payables | 27,526 | 24,231 | +13.59% | | 0 to 30 days | 2,793 | 4,705 | -40.64% | | 31 to 90 days | 3,809 | 3,472 | +9.70% | | Over 90 days | 20,924 | 16,054 | +30.33% | | Other payables | 520,181 | 542,035 | -4.03% | | **Total** | **547,707** | **566,266** | **-3.28%** | - The Group is granted credit periods ranging from **30 to 60 days** by suppliers[24](index=24&type=chunk) Management Discussion and Analysis [Overview](index=13&type=section&id=%E6%A6%82%E8%A7%88) In the first half of 2025, global political and economic instability, trade disputes, geopolitical conflicts, and soaring prices led to a slow economic recovery, with Hong Kong's economy showing weakness due to international and local market impacts, low consumer sentiment, and a weak asset market; the Group's main investment property rental income slightly declined, and it will cautiously manage land reserves and old building acquisitions, adjusting asset strategies to meet market challenges - Global political and economic instability, trade disputes, geopolitical conflicts, and soaring prices have led to a slow economic recovery[25](index=25&type=chunk) - Hong Kong's economy performed weakly, with low consumer sentiment, strong wait-and-see investment attitudes, and a weak asset market[25](index=25&type=chunk) - The Group's main investment property rental income continued to record a slight decrease during the period, and it will actively optimize tenant mix and marketing strategies[26](index=26&type=chunk) - The Group will cautiously handle land reserves and acquisitions of old buildings, slowing down its pace and adopting a conservative approach to market conditions[26](index=26&type=chunk) [Property Leasing](index=14&type=section&id=%E7%89%A9%E6%A5%AD%E7%A7%9F%E8%B3%83) As of June 30, 2025, property leasing revenue was approximately HKD 162.19 million, accounting for about 90% of the Group's total revenue; despite tourism recovery, changing consumption patterns and cautious spending led to ongoing rental adjustment pressure and a slight overall decline in rental income, with the Group enhancing customer loyalty through tenant mix optimization, membership programs, and special events - Property leasing business revenue was approximately **HKD 162.19 million**, accounting for about **90%** of the Group's total revenue[28](index=28&type=chunk) - Despite the recovery of the tourism industry, changing consumption patterns and cautious spending led to continuous rental adjustment pressure, resulting in a slight overall decrease in rental income[28](index=28&type=chunk) - The Group enhances customer loyalty by optimizing its tenant mix, introducing internationally renowned enterprises and themed restaurants, and complementing these efforts with the “Soundwill Club” membership program and various events[28](index=28&type=chunk) [Supreme Mini Storage Management Limited](index=14&type=section&id=%E8%87%B3%E5%B0%8A%E8%BF%B7%E4%BD%A0%E5%80%89%E7%AE%A1%E7%90%86%E6%9C%89%E9%99%90%E5%85%AC%E5%8F%B8) Supreme Mini Storage provides professionally managed and secure storage spaces with ideal occupancy rates across Hong Kong, Kowloon, and the New Territories, including a new Fo Tan branch; its "One Box" doorstep storage service is popular, and a new Tuen Mun branch with smart self-service access is planned for the second half of the year - Supreme Mini Storage provides safe, spacious, and efficient storage spaces, with branches across Hong Kong, Kowloon, and the New Territories, including a new branch in Fo Tan[29](index=29&type=chunk) - The “One Box” doorstep storage service has been launched and is highly popular among customers in the medical, tourism, student, and professional sectors[30](index=30&type=chunk) - Plans are underway to open a new branch in Tuen Mun in the second half of the year and introduce more smart self-service access equipment to enhance customer convenience[30](index=30&type=chunk) [Property Development](index=15&type=section&id=%E7%89%A9%E6%A5%AD%E7%99%BC%E5%B1%95) As of June 30, 2025, property development revenue was approximately HKD 6.833 million, representing about 4% of total Group revenue; its digital industrial landmark iCITY achieved a 95% occupancy rate with favorable rental returns, and the second phase of its workspace project is planned for launch this year, while the mainland China property market stabilized, but the Group's projects in third and fourth-tier cities like Zhuhai and Zhaoqing still face inventory reduction challenges - Property development business revenue was approximately **HKD 6.833 million**, accounting for about **4%** of the Group's total revenue[31](index=31&type=chunk) - Its digital industrial landmark iCITY achieved an occupancy rate of **95%**, with a rent per square foot of approximately **HKD 35**, setting a new benchmark for industrial building rents, and plans are underway to launch the second phase of its workspace project within the year[31](index=31&type=chunk) - While the mainland China real estate market has stabilized, the Group's projects in third and fourth-tier cities like Zhuhai and Zhaoqing still face inventory reduction challenges[32](index=32&type=chunk) [Building Management and Other Services](index=16&type=section&id=%E6%A8%93%E5%AE%87%E7%AE%A1%E7%90%86%E5%8F%8A%E5%85%B6%E4%BB%96%E6%9C%8D%E5%8B%99) As of June 30, 2025, property management business revenue was approximately HKD 11.689 million, accounting for about 6% of the Group's total revenue; Soundwill Property Management provides quality building management and maintenance services, holds ISO certifications, and actively uses high-tech central management and IoT systems to enhance service and risk management, while the Group is committed to carbon reduction, energy saving, and community engagement, fulfilling its corporate social responsibility - Property management business revenue was approximately **HKD 11.689 million**, accounting for about **6%** of the Group's total revenue[33](index=33&type=chunk) - Soundwill Property Management holds quality management certifications such as ISO9001, ISO14001, and ISO45001, and utilizes a high-tech central management center and IoT systems to enhance risk management[34](index=34&type=chunk)[35](index=35&type=chunk) - The Group has established an environmental management and energy-saving task force to implement carbon reduction and energy-saving measures, and actively participates in community services and charitable projects[34](index=34&type=chunk)[35](index=35&type=chunk) [Financial Performance Review](index=19&type=section&id=%E8%B2%A1%E5%8B%99%E8%A1%A8%E7%8F%BE%E5%9B%9E%E9%A1%A7) For the six months ended June 30, 2025, the Group's revenue significantly decreased by 82.46% to HKD 180.712 million, primarily due to reduced property development project income, while loss attributable to owners expanded by 37% to HKD 1,337.584 million, mainly impacted by decreased property development income and increased investment property valuation losses, resulting in a basic loss per share of HKD 4.72 Financial Performance Review | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 180,712 | 1,030,115 | -82.46% | | Loss attributable to owners of the Company | (1,337,584) | (974,829) | +37.21% | | Investment property valuation loss | (1,423,124) | (1,324,070) | +7.48% | | Total interest expense | 24,819 | 38,576 | -35.66% | | Basic loss per share | HKD (4.72) | HKD (3.44) | +37.21% | - The decrease in revenue was primarily due to reduced income from property development projects[41](index=41&type=chunk) - The increase in loss was mainly due to decreased income from property development projects and increased investment property valuation losses[41](index=41&type=chunk) [Outlook](index=18&type=section&id=%E5%B1%95%E6%9C%9B) Looking ahead to the second half of 2025, the global political and economic landscape remains volatile, Hong Kong's economic momentum is weak, and the real estate market faces challenges; the Group will continue to cautiously address these challenges, flexibly adjust strategies, solidify core businesses, and explore diversified development paths, while financially optimizing resource allocation, enhancing operational efficiency, and strengthening cash flow to navigate cyclical challenges and create long-term shareholder value - The global political and economic landscape remains volatile, Hong Kong's economic momentum is weak, and the real estate market faces difficulties[39](index=39&type=chunk) - The Group will cautiously address operational challenges, flexibly adjust strategies, solidify core businesses, and explore diversified development paths[39](index=39&type=chunk) - The Group will optimize resource allocation and enhance operational efficiency, retaining more resources and strengthening cash flow to ensure robust financial management[40](index=40&type=chunk) Other Information [Shareholder and Investor Communication / Investor Relations](index=17&type=section&id=%E8%82%A1%E6%9D%B1%E5%8F%8A%E6%8A%95%E8%B3%87%E8%80%85%E6%BA%9D%E9%80%9A%EF%BC%8F%E6%8A%95%E8%B3%87%E8%80%85%E9%97%9C%E4%BF%82) The Group is committed to enhancing corporate transparency, maintaining comprehensive interactive communication with investors through electronic channels, briefings, and press releases to build trusting partnerships, and emphasizes the importance of good corporate governance for long-term success and sustainable development - The Group is committed to enhancing corporate transparency, timely disclosing development information, and maintaining communication with investors through electronic channels, briefings, and press releases[36](index=36&type=chunk) - The Board believes that good corporate governance is key to the Group's long-term success and sustainable development[36](index=36&type=chunk) [Corporate Citizenship](index=17&type=section&id=%E4%BC%81%E6%A5%AD%E5%85%AC%E6%B0%91) The Group views sustainable development as a core strategy, establishing a dedicated team to optimize environmental, social, and governance performance and preparing to form a climate change task force; it actively gives back to the community through the "Soundwill Volunteer Team" participating in community services, environmental recycling, and providing mini-storage resources, and was awarded the "Outstanding Environmental Partner" in the "BOC Hong Kong Corporate Low Carbon Environmental Leadership Awards 2024" - The Group considers sustainable development a core strategy, establishing a dedicated team to optimize environmental, social, and governance performance, and preparing to form a climate change task force[37](index=37&type=chunk) - The “Soundwill Volunteer Team” actively participates in community services, environmental recycling, and provides mini-storage resources free of charge on a long-term basis[37](index=37&type=chunk) - The Group was awarded the “Outstanding Environmental Partner” in the “BOC Hong Kong Corporate Low Carbon Environmental Leadership Awards 2024”[38](index=38&type=chunk) [Financial Resources and Liquidity](index=19&type=section&id=%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90%E5%8F%8A%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91) As of June 30, 2025, the Group's cash and bank balances were approximately HKD 1,140.481 million, total borrowings were approximately HKD 1,350.072 million, and the gearing ratio was 9%; the Group's foreign exchange risk primarily stems from HKD and RMB exchange rate fluctuations, with no hedging measures taken during the period, and property acquisition and development funding partly derived from internal resources and bank borrowings Financial Resources and Liquidity | Metric | June 30, 2025 (HKD thousand) | December 31, 2024 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and bank balances | 1,140,481 | 1,150,786 | -0.90% | | Total borrowings | 1,350,072 | 1,359,858 | -0.72% | | Gearing ratio | 9% | 9% | 0% | | Net assets | 14,345,405 | 15,676,741 | -8.49% | - The Group's foreign exchange risk primarily arises from fluctuations in the HKD and RMB exchange rates, with no hedging measures undertaken during the period[43](index=43&type=chunk)[44](index=44&type=chunk) - Funding for property acquisitions and developments is partly sourced from internal resources and bank borrowings, with bank loan repayment periods aligned with the useful lives of assets and project completion dates[44](index=44&type=chunk) [Proposed Privatization of the Company](index=20&type=section&id=%E5%BB%BA%E8%AD%B0%E5%B0%87%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%A7%81%E6%9C%89%E5%8C%96) The offeror previously proposed privatizing the Company and delisting it by way of a scheme, but as the scheme was not approved by the scheme shareholders at the court meeting, the Company maintained its listing status on the Stock Exchange - The offeror previously proposed privatizing the Company and delisting its shares[45](index=45&type=chunk) - The Company maintained its listing status on the Stock Exchange as the scheme was not approved by the scheme shareholders[45](index=45&type=chunk) [Material Investments Held](index=20&type=section&id=%E6%89%80%E6%8C%81%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) For the financial period ended June 30, 2025, the Group held no material investments other than those disclosed in the "Management Discussion and Analysis" section - For the financial period ended June 30, 2025, the Group held no material investments (other than those disclosed in the Management Discussion and Analysis section)[46](index=46&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=20&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E3%80%81%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%90%88%E7%87%9F%E4%BC%81%E6%A5%AD) For the period ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries, associates, and joint ventures - For the period ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries, associates, and joint ventures[47](index=47&type=chunk) [Events After the Reporting Period](index=20&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) As of June 30, 2025, no other significant events affecting the Company or its subsidiaries occurred after the reporting period, except for those disclosed in this announcement - No other significant events affecting the Company or its subsidiaries occurred after the reporting period[48](index=48&type=chunk) [Employees and Remuneration Policy](index=20&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group had 321 employees in Hong Kong and 50 in mainland China, with total employee numbers increasing from the prior year; employee remuneration is determined by performance, experience, and market practice, including salaries, medical insurance, MPF, and discretionary year-end bonuses, with total employee salaries and wages amounting to approximately HKD 70.285 million during the period Employee Numbers and Remuneration | Metric | June 30, 2025 | June 30, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Hong Kong employees | 321 | 301 | +6.64% | | Mainland China employees | 50 | 42 | +19.05% | | Total employee salaries and wages (HKD thousand) | 70,285 | 73,911 | -4.90% | - Employee remuneration is determined based on job performance, experience, and market practice, including salaries, medical insurance, Mandatory Provident Fund, and discretionary year-end bonuses[49](index=49&type=chunk) [Pledged Assets](index=20&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group pledged certain investment properties, properties held for sale, and property, plant and equipment with a total carrying amount of approximately HKD 8,531.831 million as collateral for bank financing - The Group pledged certain investment properties, properties held for sale, and property, plant and equipment with a total carrying amount of approximately **HKD 8,531,831,000** (December 31, 2024: approximately HKD 9,335,969,000) as collateral for bank financing[50](index=50&type=chunk) [Contingent Liabilities](index=21&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group provided guarantees of approximately HKD 11.345 million to banks for mortgage loans obtained by property buyers in mainland China, with directors deeming the fair value of these financial guarantees not material - The Group provided guarantees of approximately **HKD 11,345,000** to banks for mortgage loans obtained by property buyers in mainland China[51](index=51&type=chunk) - These guarantees will be released upon delivery of the properties to buyers and completion of mortgage registration or settlement of the loans[51](index=51&type=chunk) - The Directors consider the fair value of the financial guarantees not material[51](index=51&type=chunk) [Corporate Governance](index=21&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) During the reporting period, the Group complied with the applicable provisions of the Stock Exchange's Corporate Governance Code, though the roles of Chairman and Chief Executive Officer were not separated, both held by Mr. Chan King Tak; the Group adopted the Model Code for Securities Transactions by Directors of Listed Issuers and established guidelines for relevant employees no less exacting than the Model Code - The Group complied with the applicable provisions of the Stock Exchange's Corporate Governance Code, although the roles of Chairman and Chief Executive Officer were not separated, both held by Mr. Chan King Tak[52](index=52&type=chunk) - The Group has adopted the Model Code for Securities Transactions by Directors of Listed Issuers and confirmed that all Directors complied with it during the period[53](index=53&type=chunk) - The Group has adopted guidelines for relevant employees regarding dealings in the Company's securities that are no less exacting than the Model Code[54](index=54&type=chunk) [Interim Dividend](index=22&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (June 30, 2024: nil) - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[55](index=55&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=22&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B9%8B%E4%B8%8A%E5%B8%82%E8%AD%89%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 - During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[56](index=56&type=chunk) [Public Float](index=22&type=section&id=%E5%85%AC%E7%9C%BE%E6%8C%81%E8%82%A1%E9%87%8F) Based on publicly available information, the Company maintained the public float required by the Listing Rules during the six months ended June 30, 2025, and up to the date of this report - The Company has maintained the public float required by the Listing Rules[57](index=57&type=chunk) [Audit Committee](index=22&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, comprising three independent non-executive directors, reviewed the Group's accounting principles, internal control systems, risk management, internal audit, and financial reporting matters, and also reviewed the unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025, without disagreement - The Audit Committee has reviewed the Group's accounting principles, internal control systems, risk management, internal audit, and financial reporting matters[58](index=58&type=chunk) - The Audit Committee has reviewed the unaudited condensed consolidated interim financial statements without disagreement[58](index=58&type=chunk) [Publication of Interim Results and 2025 Interim Report](index=22&type=section&id=%E5%88%8A%E7%99%BB%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%8F%8A2025%E5%B9%B4%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) This interim results announcement has been published on the websites of The Stock Exchange of Hong Kong Limited and the Company, and the Company's 2025 interim report will be dispatched to shareholders and published on the aforementioned websites in due course - This interim results announcement has been published on the websites of The Stock Exchange of Hong Kong Limited (www.hkexnews.hk) and the Company (www.soundwill.com.hk)[59](index=59&type=chunk) - The Company's 2025 interim report will be dispatched to shareholders and published on the aforementioned websites in due course[59](index=59&type=chunk) [Appreciation](index=23&type=section&id=%E9%B3%B4%E8%AC%9D) Mr. Chan King Tak, Chairman of the Board, on behalf of the Board, expressed gratitude to all Directors and staff for their contributions and outstanding performance during the period - Mr. Chan King Tak, Chairman of the Board, expressed gratitude to all Directors and staff for their contributions and outstanding performance during the period[60](index=60&type=chunk)