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 表 明 概 不 就 因 本公告全部或任何部分內容而產生或因依賴該等內容而引致的任何損 失 承 擔 任 何 責 任。 WISON ENGINEERING SERVICES CO. LTD. 惠生工程技術服務有限公司 （於 開 曼 群 島 註 冊 成 立 的 有 限 公 司） （股 份 代 號：2236） 截 至2025年6月30日止六個月 之中期業績公告 及 委任獨立非執行董事 中期業績 惠 生 工 程 技 術 服 務 有 限 公 司（「本公司」）董 事（個 別 及 統 稱 為「董 事」）會（「董 事 會」）欣 然 公 佈 本 公 司 及 其 附 屬 公 司（統 稱「本集團」或「集 團」）截 至2025 年6月30日 止 六 個 月（「期 內」或「回顧期內」）的 未 經 審 核 簡 明 綜 合 中 期 業 績， 連同經選定解釋附註及2024年 同 期 相 關 比 較 數 字。 於 本 公 告 內，「我 們」及「惠 生 工 程」指 本 公 司 及 倘 文 義 另 ...

[Financial Summary](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) The Group's revenue significantly decreased by 52.5% to 1,414.4 million HKD, resulting in a loss attributable to equity holders of 60.4 million HKD, which widened compared to the prior year, with air freight business turning from profit to loss 2025 First Half Key Financial Summary | Indicator | 2025 First Half (million HKD) | 2024 First Half (million HKD) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,414.4 | 2,975.1 | -52.5% | | Loss attributable to equity holders of the Company | (60.4) | (42.1) | +43.5% (Loss widened) | | Air Freight Business Segment Results | (53.1) | 1.0 | Shifted from profit to loss | | Ocean Freight Business Segment Results | 9.3 | 24.2 | -61.8% | | International Express and Parcel Services Business Segment Results | (8.6) | 9.9 | Shifted from profit to loss | [Financial Statements](index=2&type=section&id=%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the unaudited condensed consolidated financial statements for the six months ended June 30, 2025, including the income statement, statement of comprehensive income, and statement of financial position, reflecting the company's operating results, comprehensive income, and financial position during the reporting period [Consolidated Income Statement](index=2&type=section&id=%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) The company's revenue significantly decreased by 52.5% to 1,414.4 million HKD, with gross profit down 49.0%, leading to a widened loss before tax of 70.8 million HKD and a basic and diluted loss per share of 14.46 HK cents Consolidated Income Statement Key Data | Indicator | 2025 First Half (thousand HKD) | 2024 First Half (thousand HKD) | | :--- | :--- | :--- | | Revenue | 1,414,356 | 2,975,102 | | Cost of Sales | (1,325,636) | (2,801,015) | | Gross Profit | 88,720 | 174,087 | | Loss before tax | (70,807) | (40,025) | | Loss for the period | (60,753) | (42,880) | | Loss attributable to equity holders of the Company | (60,436) | (42,145) | | Basic loss per share (HK cents) | (14.46) | (10.08) | [Consolidated Statement of Comprehensive Income](index=3&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%E7%9B%8A%E8%A1%A8) During the reporting period, the company's loss for the period was 60.8 million HKD, but a positive impact of 4.6 million HKD from exchange differences on overseas operations resulted in other comprehensive income turning positive at 4.8 million HKD, leading to a total comprehensive loss of 56.0 million HKD, a slight narrowing from 57.2 million HKD loss in the prior year Consolidated Statement of Comprehensive Income Key Data | Indicator | 2025 First Half (thousand HKD) | 2024 First Half (thousand HKD) | | :--- | :--- | :--- | | Loss for the period | (60,753) | (42,880) | | Exchange differences arising from translation of overseas operations | 4,635 | (12,597) | | Other comprehensive income for the period | 4,769 | (14,337) | | Total comprehensive income for the period | (55,984) | (57,217) | [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, non-current assets increased to 159.5 million HKD, while total current assets and liabilities decreased, resulting in net current assets of 1,062.3 million HKD and a slight decrease in net assets to 1,170.4 million HKD Consolidated Statement of Financial Position Key Data | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Non-current assets | 159,529 | 104,775 | | Current assets | 1,457,310 | 1,661,097 | | Current liabilities | 395,007 | 511,631 | | Net current assets | 1,062,303 | 1,149,466 | | Net assets | 1,170,354 | 1,226,036 | | Bank balances and cash | 824,326 | 672,246 | [Notes](index=6&type=section&id=%E9%99%84%E8%A8%BB) This section details the basis of preparation for the interim financial report, changes in accounting policies, revenue and segment information, income tax expense, loss per share calculation, dividend policy, and aging analysis of trade receivables/payables, providing important supplementary information for understanding the financial statements [Basis of Preparation and Principal Accounting Policies](index=6&type=section&id=1.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96%E5%8F%8A%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The interim financial report is prepared in accordance with the HKEX Listing Rules and HKAS 34, consistent with annual financial statements, except for changes due to new HKFRS adoption, with HKAS 21 amendments having no material impact this period - The interim financial report is prepared in accordance with the HKEX Listing Rules and HKAS 34, and has been reviewed by KPMG[10](index=10&type=chunk)[12](index=12&type=chunk) - The adoption of amendments to HKAS 21, "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability," had no material impact on this interim report[11](index=11&type=chunk) [Revenue and Segment Information](index=7&type=section&id=2.%20%E6%94%B6%E7%9B%8A%E5%8F%8A%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group's revenue primarily derives from air freight, ocean freight, international express and parcel services, logistics, and other businesses, with total revenue for the reporting period at 1,414.4 million HKD, a significant 52.5% decrease year-on-year, and air freight and international express and parcel services turning from profit to loss, while ocean freight profitability significantly declined [Segment Revenue and Results](index=7&type=section&id=%E5%88%86%E9%83%A8%E6%94%B6%E7%9B%8A%E5%8F%8A%E6%A5%AD%E7%B8%BE) Air freight remains the largest revenue source but saw significant declines in both revenue and results, turning from profit to loss, while ocean freight revenue and results also decreased significantly, and international express and parcel services revenue sharply fell, also turning to a loss, though logistics and other businesses saw improved results despite slight revenue drops Segment Revenue and Results (thousand HKD) | Operating Segment | 2025 First Half Revenue | 2024 First Half Revenue | 2025 First Half Results | 2024 First Half Results (Restated) | | :--- | :--- | :--- | :--- | :--- | | Air Freight | 849,569 | 1,827,055 | (53,089) | 1,009 | | Ocean Freight | 268,630 | 379,757 | 9,250 | 24,197 | | International Express and Parcel Services | 220,302 | 682,027 | (8,593) | 9,855 | | Logistics | 38,475 | 41,433 | 1,675 | 388 | | Others | 37,380 | 44,830 | 3,136 | 2,769 | | **Total** | **1,414,356** | **2,975,102** | **(47,621)** | **38,218** | [Income Tax Expense](index=8&type=section&id=3.%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) During the reporting period, income tax expense shifted from a 2.9 million HKD expense in the prior year to a 10.1 million HKD income tax benefit, primarily due to an expanded negative impact from deferred tax and an over-provision for China corporate income tax in prior years Income Tax Expense (thousand HKD) | Tax Type | 2025 First Half | 2024 First Half | | :--- | :--- | :--- | | Current tax | 1,745 | 6,782 | | Prior years (over-provision) / under-provision | (2,537) | (178) | | Deferred tax | (9,262) | (3,749) | | **Total** | **(10,054)** | **2,855** | [Other Items of Profit or Loss](index=9&type=section&id=4.%20%E5%85%B6%E4%BB%96%E6%90%8D%E7%9B%8A%E9%A0%85%E7%9B%AE) During the reporting period, depreciation and amortisation expenses slightly decreased, while net exchange gain significantly increased to 11.3 million HKD, offsetting some losses Other Items of Profit or Loss (thousand HKD) | Item | 2025 First Half | 2024 First Half | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 2,505 | 3,291 | | Depreciation of right-of-use assets | 14,184 | 13,424 | | Amortisation of intangible assets | 825 | 874 | | Net exchange gain | (11,341) | (1,274) | [Loss Per Share](index=9&type=section&id=5.%20%E6%AF%8F%E8%82%A1%E8%99%A7%E6%90%8D) For the six months ended June 30, 2025, both basic and diluted loss per share attributable to equity holders of the Company were 14.46 HK cents, an increase from 10.08 HK cents in the prior year, primarily due to increased loss for the period Loss Per Share (HK cents) | Indicator | 2025 First Half | 2024 First Half | | :--- | :--- | :--- | | Basic loss per share | (14.46) | (10.08) | | Diluted loss per share | (14.46) | (10.08) | - Diluted loss per share is the same as basic loss per share due to the anti-dilutive effect of potential dilutive ordinary shares[17](index=17&type=chunk) [Dividends](index=10&type=section&id=6.%20%E8%82%A1%E6%81%AF) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board of Directors does not recommend the payment of an interim dividend for the first half of 2025 (2024 first half: nil)[19](index=19&type=chunk)[54](index=54&type=chunk) [Trade Receivables](index=10&type=section&id=7.%20%E8%B2%A3%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade receivables were 488.7 million HKD, a significant decrease from 734.2 million HKD as of December 31, 2024, primarily concentrated in the 0-30 day aging category - The Group provides an average credit period of 30-60 days to trade customers[20](index=20&type=chunk) Trade Receivables Aging Analysis (thousand HKD) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 0 to 30 days | 352,738 | 459,792 | | 31 to 60 days | 53,360 | 108,406 | | 61 to 90 days | 47,160 | 60,179 | | 91 to 180 days | 22,490 | 38,201 | | 181 to 365 days | 4,896 | 64,349 | | Over 365 days | 8,014 | 3,232 | | **Total** | **488,658** | **734,159** | [Trade and Other Payables](index=11&type=section&id=8.%20%E8%B2%A3%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, total trade payables were 201.5 million HKD, a decrease from 265.9 million HKD as of December 31, 2024, primarily concentrated within 60 days Trade Payables Aging Analysis (thousand HKD) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 60 days | 131,734 | 212,010 | | 61 to 180 days | 54,461 | 41,419 | | 181 to 365 days | 3,777 | 605 | | Over 365 days | 11,561 | 11,850 | | **Total** | **201,533** | **265,884** | [Comparative Figures](index=11&type=section&id=9.%20%E6%AF%94%E8%BC%83%E6%95%B8%E5%AD%97) Certain comparative figures have been adjusted to conform to the current period's presentation - Certain comparative figures have been adjusted to conform to the current period's presentation[23](index=23&type=chunk) [Management Discussion and Analysis](index=12&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) The Management Discussion and Analysis section elaborates on the company's business development strategy, financial performance, specific segment conditions, liquidity, and future market outlook for the reporting period, highlighting ongoing internationalization efforts amidst market challenges to revenue and profitability [Business Review](index=12&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) During the reporting period, the company continued to deepen its international development strategy, actively expanding its global logistics network to cover over 150 countries and regions across 6 continents, focusing on key routes and emerging markets to build comprehensive international logistics services - The company deeply implements its international development strategy, seizing opportunities from cross-border e-commerce and the "Belt and Road" initiative to build a global logistics network connecting China to the world and the world to the world[24](index=24&type=chunk) - As of the end of the reporting period, the company's international business service network covers 6 continents and over 150 countries and regions[24](index=24&type=chunk) - The company continuously optimizes its international product system, extending the international logistics service chain to cover one-stop services including cargo collection and dispatch, trunk transportation, customs clearance and transshipment, and last-mile delivery[24](index=24&type=chunk) [Financial Performance](index=12&type=section&id=%E8%B2%A1%E5%8B%99%E6%A5%AD%E7%B8%BE) During the reporting period, the Group's revenue decreased by 52.5% year-on-year to 1,414.4 million HKD, gross profit declined by 49.0%, while gross profit margin improved to 6.3%, and net loss attributable to equity holders widened by 43.4% to 60.4 million HKD, primarily due to reduced freight market revenue and gross profit, strategic reduction of low-margin businesses, and increased investment in internationalization Financial Performance Overview | Indicator | 2025 First Half (million HKD) | 2024 First Half (million HKD) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,414.4 | 2,975.1 | -52.5% | | Gross Profit | 88.7 | 174.1 | -49.0% | | Gross Profit Margin | 6.3% | 5.9% | +0.4% | | Net loss attributable to equity holders of the Company | (60.4) | (42.1) | +43.4% (Loss widened) | - The increase in loss is primarily attributed to the impact of US tariff policy fluctuations on freight market revenue and gross profit, strategic reduction of low-margin businesses, and continuous increased investment in advancing internationalization strategy, building global hubs, and digital transformation[26](index=26&type=chunk) - There was no one-off impairment loss on investment in a joint venture of 22.8 million HKD recorded in the first half of 2024 during the reporting period[26](index=26&type=chunk) [Segment Analysis](index=13&type=section&id=%E5%88%86%E9%83%A8%E5%88%86%E6%9E%90) The Group's core businesses include air and ocean freight forwarding services, as well as logistics, international express and parcel services, all facing market challenges during the reporting period, with revenue generally declining, and air freight and international express and parcel services turning from profit to loss, while ocean freight profitability significantly reduced - The Group's core businesses are air and ocean freight forwarding services, also providing logistics services, international express and parcel services, and other businesses[27](index=27&type=chunk) [Air Freight](index=13&type=section&id=%E7%A9%BA%E9%81%8B) Air freight forwarding remains the Group's largest business segment, accounting for 60.1% of total revenue, but during the reporting period, its revenue decreased by 53.5% year-on-year to 849.6 million HKD, and gross profit significantly decreased by 71.7% to 21.1 million HKD, mainly due to lower volumes and price sensitivity in the market leading to narrower profit margins - Air freight business accounts for approximately **60.1% of total revenue**, making it the Group's largest business segment[28](index=28&type=chunk) Air Freight Business Key Data | Indicator | 2025 First Half (million HKD) | 2024 First Half (million HKD) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 849.6 | 1,827.1 | -53.5% | | Gross Profit | 21.1 | 74.5 | -71.7% | - The decrease in revenue and gross profit is primarily due to lower volumes and market price sensitivity for air freight and charter services, leading to reduced profit margins[29](index=29&type=chunk) [Ocean Freight](index=14&type=section&id=%E6%B5%B7%E9%81%8B) Ocean freight forwarding business contributes 19.0% of total revenue, with revenue decreasing by 29.3% year-on-year to 268.6 million HKD during the reporting period, and gross profit declining to 53.4 million HKD, mainly due to decreased demand for container space - Ocean freight business contributes approximately **19.0% of total revenue**[30](index=30&type=chunk) Ocean Freight Business Key Data | Indicator | 2025 First Half (million HKD) | 2024 First Half (million HKD) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 268.6 | 379.8 | -29.3% | | Gross Profit | 53.4 | 69.6 | -23.3% | - The decrease in gross profit is primarily due to reduced demand for container space[30](index=30&type=chunk) [International Express and Parcel Services](index=14&type=section&id=%E5%9C%8B%E9%9A%9B%E5%BF%AB%E9%81%9E%E5%8F%8A%E5%8C%85%E8%A3%9D%E6%9C%8D%E5%8B%99) International express and parcel services, a new business segment, accounts for 15.6% of total revenue, but during the reporting period, its revenue significantly decreased by 67.7% year-on-year to 220.3 million HKD, with fewer completed pieces and gross profit declining by 87.3% to 2.5 million HKD, mainly due to the company strategically reducing certain short-term value products to focus on long-term competitiveness - International express and parcel services is a key strategic segment for the Group to address the development of the global cross-border e-commerce market, accounting for approximately **15.6% of total revenue**[31](index=31&type=chunk) International Express and Parcel Services Key Data | Indicator | 2025 First Half (million HKD) | 2024 First Half (million HKD) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 220.3 | 682.0 | -67.7% | | Completed Pieces (million pieces) | 11.1 | 34.8 | -68.1% | | Gross Profit | 2.5 | 19.6 | -87.3% | - The significant decrease in gross profit is primarily due to the company's proactive reduction of certain international express and parcel service products that only offer short-term value, based on a long-term sustainable development strategy[32](index=32&type=chunk) [Logistics](index=15&type=section&id=%E7%89%A9%E6%B5%81) The logistics services segment, including warehousing, distribution, and customs clearance, accounts for 2.7% of total revenue, with revenue slightly decreasing to 38.5 million HKD during the reporting period, but gross profit increased by 34.8% year-on-year to 6.2 million HKD, indicating improved operational efficiency - Logistics services segment includes warehousing, distribution, and customs clearance, accounting for approximately **2.7% of total revenue**[33](index=33&type=chunk) Logistics Services Key Data | Indicator | 2025 First Half (million HKD) | 2024 First Half (million HKD) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 38.5 | 41.4 | -7.0% | | Gross Profit | 6.2 | 4.6 | +34.8% | [Others](index=15&type=section&id=%E5%85%B6%E4%BB%96) Other businesses, including consolidated shipments, truck transportation, and general sales agency, generated 37.4 million HKD in revenue and 5.5 million HKD in gross profit during the reporting period, with gross profit margin increasing from 13.0% to 14.8% year-on-year, indicating improved profitability - Other businesses include consolidated shipments, truck transportation, general sales agency, e-commerce business, customs clearance services, and hand-carry urgent services[34](index=34&type=chunk) Other Businesses Key Data | Indicator | 2025 First Half (million HKD) | 2024 First Half (million HKD) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 37.4 | 44.8 | -16.6% | | Gross Profit | 5.5 | 5.8 | -5.2% | | Gross Profit Margin | 14.8% | 13.0% | +1.8% | [Liquidity and Financial Resources](index=15&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) As of June 30, 2025, the Group's working capital was 1,062.3 million HKD, a 7.6% decrease from year-end, but the current ratio increased to 3.69 times, with bank balances and cash rising 22.6% to 824.3 million HKD, primarily in USD, RMB, and HKD, and operating cash inflow of 138.6 million HKD for the period, maintaining a net cash position with no outstanding bank borrowings Liquidity and Financial Resources Key Data | Indicator | June 30, 2025 (million HKD) | December 31, 2024 (million HKD) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Working Capital | 1,062.3 | 1,149.5 | -7.6% | | Current Ratio | 3.69 times | 3.25 times | +13.5% | | Bank Balances and Cash | 824.3 | 672.2 | +22.6% | | Operating Cash Inflow | 138.6 (First Half) | (93.5) (First Half) | Shifted from outflow to inflow | - The Group has no outstanding bank borrowings, a debt-to-equity ratio of 0, and maintains a net cash position[35](index=35&type=chunk) - The Group is exposed to various foreign currency risks, primarily HKD, RMB, EUR, USD, and TWD, but does not use derivative instruments to hedge currency risks[36](index=36&type=chunk) [Material Investments](index=16&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) For the six months ended June 30, 2025, the Group held no material investments - During the reporting period, the Group held no material investments[37](index=37&type=chunk) [Capital Commitments](index=16&type=section&id=%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF%E6%89%BF%E6%93%94) As of June 30, 2025, the Group had no capital commitments - As of June 30, 2025, the Group had no capital commitments[38](index=38&type=chunk) [Contingent Liabilities](index=16&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[39](index=39&type=chunk) [Pledge of Assets](index=16&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, approximately 8.2 million HKD of the Group's short-term bank deposits were pledged to secure certain bank facilities, a decrease from 14.7 million HKD as of December 31, 2024 - As of June 30, 2025, approximately **8.2 million HKD** of short-term bank deposits were pledged to secure bank facilities[40](index=40&type=chunk) [Events After Reporting Period](index=16&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) Subsequent to the reporting period, the company's indirect wholly-owned subsidiary, YTO (Jiaxing) Supply Chain Co., Ltd., entered into an agreement on July 19, 2024, to acquire the entire equity interest in Shanghai YTO International Freight Forwarding Co., Ltd. for RMB 8.81 million, with completion expected on August 21, 2025, after which Shanghai YTO Freight will become an indirect wholly-owned subsidiary of the company - Subsequent to the reporting period, the company's indirect wholly-owned subsidiary, YTO (Jiaxing) Supply Chain Co., Ltd., will acquire the entire equity interest in Shanghai YTO International Freight Forwarding Co., Ltd. for **RMB 8.81 million**[41](index=41&type=chunk) - The acquisition is expected to be completed on August 21, 2025, after which Shanghai YTO Freight will become an indirect wholly-owned subsidiary of the Company, and its financial results will be consolidated into the Group's financial statements[42](index=42&type=chunk) [Material Acquisitions and Disposals of Subsidiaries and Associates](index=17&type=section&id=%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E5%8F%8A%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E4%B9%8B%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) During the reporting period, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[43](index=43&type=chunk) [Outlook](index=17&type=section&id=%E5%89%8D%E6%99%AF) Despite global economic slowdown and increased uncertainty, the company maintains cautious optimism for future development, aiming to capitalize on China's export growth, industrial upgrading, and cross-border e-commerce opportunities by strengthening infrastructure, expanding service networks, embracing technology, enhancing comprehensive service capabilities, and fostering talent for long-term sustainable growth [Strong Growth in China's Exports and Industrial Upgrading Drive Freight Market Opportunities](index=17&type=section&id=%E4%B8%AD%E5%9C%8B%E5%87%BA%E5%8F%A3%E5%BC%B7%E5%8B%A2%E5%A2%9E%E9%95%B7%E3%80%81%E7%94%A2%E6%A5%AD%E5%8D%87%E7%B4%9A%E5%B8%B6%E5%8B%95%E8%B2%A8%E9%81%8B%E5%B8%82%E5%A0%B4%E7%99%BC%E5%B1%95%E6%A9%9F%E9%81%87) In the first half of 2025, China's total goods trade import and export value increased by 2.9% year-on-year, with exports reaching a record high, growing by 7.2%, and high-tech product exports continuing to rise, demanding more specialized international freight services and creating new growth points, which the company will leverage by expanding into emerging markets and optimizing its international product system - In the first half of 2025, China's total goods trade import and export value reached **RMB 21.79 trillion**, a year-on-year increase of **2.9%**, with exports exceeding **RMB 13 trillion**, a year-on-year increase of **7.2%**[44](index=44&type=chunk) - High-tech product exports maintained a **9.2% growth rate** for nine consecutive months, driving the upgrade of international freight towards specialized and customized services, creating niche markets such as high-end equipment transportation and temperature-controlled logistics[45](index=45&type=chunk) - The company will adhere to the development philosophy of "going global with Chinese enterprises and individuals, going global with cross-border e-commerce, and going global with the Belt and Road initiative," expanding into emerging markets and optimizing its international product system[45](index=45&type=chunk) [Strengthening Infrastructure and Expanding Service Network to Enhance Comprehensive Capabilities](index=18&type=section&id=%E5%BC%B7%E5%8C%96%E5%9F%BA%E7%A4%8E%E5%BB%BA%E8%A8%AD%EF%BC%8C%E6%8B%93%E5%B1%95%E6%9C%8D%E5%8B%99%E7%B6%B2%E7%B5%A1%E6%8F%90%E5%8D%87%E7%B6%9C%E5%90%88%E8%83%BD%E5%8A%9B) The company will deepen its international development strategy by building a "1+7" global express hub facility and operating network to strengthen control over core logistics infrastructure and resources, accelerating global network coverage in the second half of 2025 through self-construction, self-operation, and strategic partnerships, while promoting synergistic development of freight, express, and supply chain businesses - The company will build a "**1+7**" global express hub facility and operating network to strengthen control over core logistics infrastructure and resources[46](index=46&type=chunk) - In the second half of 2025, the company will accelerate global network coverage through self-construction, self-operation, and strategic partnerships, and promote the synergistic development of freight, express, and supply chain businesses[46](index=46&type=chunk) [Actively Embracing Industrial Transformation, Technology Empowerment to Boost Quality and Efficiency](index=19&type=section&id=%E7%A9%8D%E6%A5%B5%E6%93%81%E6%8A%B1%E7%94%A2%E6%A5%AD%E8%AE%8A%E9%9D%A9%EF%BC%8C%E7%A7%91%E6%8A%80%E8%B3%A6%E8%83%BD%E5%8A%A9%E5%8A%9B%E6%8F%90%E8%B3%AA%E5%A2%9E%E6%95%88) The company prioritizes informatization and digitalization, adhering to "digitalization, mobilization, real-time, and visualization" principles, strengthening technology-driven innovation, widely applying big data, cloud computing, and AI, and fully advancing vertical applications of AI to transform from a traditional logistics enterprise into a logistics technology enterprise - The company adheres to the principles of "digitalization, mobilization, real-time, and visualization," strengthening technology-driven innovation and promoting the application of big data, cloud computing, and artificial intelligence[47](index=47&type=chunk) - It aims to fully advance the vertical application of cutting-edge technologies like artificial intelligence, achieving a transformation from digitalization to intelligence, with the goal of evolving from a traditional international logistics supply chain enterprise to a logistics technology enterprise[47](index=47&type=chunk) [Seizing Cross-border E-commerce Opportunities to Build New Growth Drivers](index=19&type=section&id=%E6%8A%8A%E6%8F%A1%E8%B7%A8%E5%A2%83%E9%9B%BB%E5%95%86%E7%99%BC%E5%B1%95%E6%A9%9F%E9%81%87%EF%BC%8C%E6%A7%8B%E5%BB%BA%E6%A5%AD%E5%8B%99%E7%99%BC%E5%B1%95%E6%96%B0%E5%8B%95%E5%8A%9B) China's cross-border e-commerce is booming, with total industry import and export value reaching RMB 2.63 trillion in 2024, a 10.8% increase, and RMB 1.32 trillion in the first half of 2025, indicating sustained demand for international express logistics, which the company will leverage by deepening cooperation with e-commerce platforms and enhancing logistics service quality as a core future growth driver - In 2024, China's cross-border e-commerce industry's total import and export value reached **RMB 2.63 trillion**, a year-on-year increase of **10.8%**[48](index=48&type=chunk) - In the first half of 2025, imports and exports reached **RMB 1.32 trillion**, with exports at **RMB 1.03 trillion** (**+4.7%**) and imports at **RMB 291.1 billion** (**+9.3%**)[48](index=48&type=chunk) - The company will deepen cooperation with existing e-commerce platforms and enhance logistics service quality, positioning cross-border e-commerce as a core driver for future performance growth[49](index=49&type=chunk) [Significantly Enhancing Comprehensive Service Capabilities to Increase Customer Loyalty](index=20&type=section&id=%E5%A4%A7%E5%8A%9B%E6%8F%90%E5%8D%87%E7%B6%9C%E5%90%88%E6%9C%8D%E5%8B%99%E8%83%BD%E5%8A%9B%EF%BC%8C%E5%85%A8%E9%9D%A2%E6%9C%8D%E5%8B%99%E5%A2%9E%E5%A4%A7%E5%AE%A2%E6%88%B6%E7%B2%98%E6%80%A7) The company focuses on sectors like apparel, automotive, and semiconductors, building standardized customer management processes, acquiring new clients such as Xiaomi, and penetrating manufacturing clients, while continuously optimizing global supply chain services, strengthening warehousing and distribution systems, and developing integrated overseas trade and warehousing solutions to create an agile, efficient, and resilient global supply chain - The company focuses on sectors such as apparel, automotive, semiconductors, and electronic products, building standardized customer management processes, developing new clients, and penetrating manufacturing clients[50](index=50&type=chunk) - In the future, it will continuously optimize global supply chain service capabilities, strengthen warehousing and distribution system construction, build an agile, efficient, and resilient global supply chain system, and develop integrated overseas trade and warehousing service products[50](index=50&type=chunk) [Building a Talent Pipeline and Promotion System to Ensure Performance Growth](index=20&type=section&id=%E6%90%AD%E5%BB%BA%E4%BA%BA%E6%89%8D%E6%A2%AF%E9%9A%8A%E5%9F%B9%E9%A4%8A%E6%99%89%E5%8D%87%E9%AB%94%E7%B3%BB%EF%BC%8C%E6%8F%90%E4%BE%9B%E6%A5%AD%E7%B8%BE%E9%A8%B0%E9%A3%9B%E4%BF%9D%E9%9A%9C) The company will increase the recruitment and development of international talent, establishing clear career development paths through organizational design, budget management, regional system improvements, and targeted training, to build a professional and proactive talent team that provides strong support for global business expansion - The company will increase the recruitment and development of international talent, building clear career development paths through organizational design, budget management, regional system improvements, and targeted training[51](index=51&type=chunk) - The goal is to build a talent team that is like-minded, mission-driven, professional, proactive, loyal, and high-potential, supporting global business expansion[51](index=51&type=chunk) [Employees and Remuneration Policy](index=21&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 employed approximately 1,016 staff, with staff costs totaling 128.3 million HKD, and remuneration is determined by market terms, individual qualifications, and experience, supplemented by a share award scheme to incentivize employees Employees and Remuneration Overview | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of Employees | 1,016 | 1,119 | | Staff Costs (First Half) | 128.3 million HKD | 130.8 million HKD | - Remuneration is generally determined by market terms, individual qualifications, and experience, and a share award scheme has been adopted to incentivize employees[52](index=52&type=chunk) [Purchase, Redemption or Sale of the Company's Listed Securities](index=21&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E8%B4%96%E5%9B%9E%E6%88%96%E5%87%BA%E5%94%AE%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities, and as of June 30, 2025, the company held no treasury shares - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[53](index=53&type=chunk) - As of June 30, 2025, the Company held no treasury shares[53](index=53&type=chunk) [Interim Dividend](index=21&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board of Directors has resolved not to declare an interim dividend for the reporting period, consistent with the prior year - The Board of Directors has resolved not to declare an interim dividend for the reporting period (2024 first half: nil)[54](index=54&type=chunk) [Corporate Governance](index=21&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The Board has adopted and complied with the code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules, and the company has also adopted a code for directors' securities transactions no less exacting than the Standard Code in Appendix C3, establishing an audit committee chaired by an independent non-executive director, which has reviewed the interim financial statements [Standard Code for Securities Transactions by Directors](index=21&type=section&id=%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The company has adopted a code for directors' securities transactions no less exacting than the Standard Code set out in Appendix C3 of the Listing Rules, and all directors have complied with this code during the reporting period - The company has adopted a code for directors' securities transactions no less exacting than the Standard Code set out in Appendix C3 of the Listing Rules[56](index=56&type=chunk) - Following specific enquiries, all Directors confirmed compliance with the relevant code during the reporting period[56](index=56&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 company has established an Audit Committee comprising one non-executive director and two independent non-executive directors, with Mr. Zhong Guowu as chairman, and the committee has discussed and reviewed the Group's unaudited consolidated financial statements with management without disagreement - The Audit Committee comprises one non-executive director and two independent non-executive directors, with Mr. Zhong Guowu as chairman[57](index=57&type=chunk) - The Audit Committee has discussed and reviewed the Group's unaudited consolidated financial statements with management, and there were no disagreements[57](index=57&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=22&type=section&id=%E5%88%8A%E8%BC%89%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A%E5%8F%8A%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) This interim results announcement has been published on the Stock Exchange and the company's website, and the interim report for the reporting period will be published on the Stock Exchange and the company's website in due course - This interim results announcement has been published on the Stock Exchange and the company's website[58](index=58&type=chunk) - The interim report for the reporting period will be published on the Stock Exchange and the company's website in due course[58](index=58&type=chunk) [Acknowledgement](index=22&type=section&id=%E8%87%B4%E8%AC%9D) The Chairman of the Board, on behalf of the Board, expresses gratitude to all colleagues for their efforts, dedication, loyalty, and integrity, and thanks shareholders, customers, banks, and other business partners for their trust and support - The Chairman of the Board thanks all colleagues, shareholders, customers, banks, and other business partners for their support[59](index=59&type=chunk) [Board Composition](index=22&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E7%B5%84%E6%88%90) As of the announcement date, the Board of Directors comprises two executive directors, four non-executive directors, and three independent non-executive directors, with Mr. Yu Huijiao serving as Chairman - The Board of Directors includes two executive directors, four non-executive directors, and three independent non-executive directors[60](index=60&type=chunk) - Mr. Yu Huijiao serves as the Chairman of the Board[60](index=60&type=chunk)

[Financial Highlights](index=4&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) The Group's revenue increased while its loss for the period significantly narrowed, reflecting improved financial performance Financial Highlights for the Six Months Ended June 30, 2025 | Metric | Six Months Ended June 30, 2025 (thousand HKD) | Six Months Ended June 30, 2024 (thousand HKD) | | :--- | :--- | :--- | | Revenue | 51,500 | 48,300 | | Loss for the period attributable to owners of the Company | (1,000) | (5,900) | | Basic and diluted loss per share | **(0.08) HK cents** | **(0.49) HK cents** | - The Group's revenue increased by approximately **6.6%** year-on-year, and its loss significantly narrowed by approximately **83.1%**[10](index=10&type=chunk) - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[10](index=10&type=chunk) [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=5&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) This section presents the Group's financial performance, highlighting revenue, cost of sales, gross profit, and loss for the period Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Six Months Ended June 30) | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 51,490 | 48,302 | 3,188 | 6.6% | | Cost of sales | (44,449) | (43,464) | (985) | 2.3% | | Gross profit | 7,041 | 4,838 | 2,203 | 45.5% | | Other income and gains | 400 | 178 | 222 | 124.7% | | Administrative expenses | (9,601) | (12,039) | 2,438 | -20.2% | | Loss before tax | (1,008) | (5,921) | 4,913 | -83.0% | | Loss for the period | (1,008) | (5,921) | 4,913 | -83.0% | | Basic and diluted loss per share | **(0.08) HK cents** | **(0.49) HK cents** | 0.41港仙 | -83.7% | - The Group's loss for the period significantly narrowed, primarily due to a substantial increase in gross profit and a reduction in administrative expenses[12](index=12&type=chunk) [Unaudited Condensed Consolidated Statement of Financial Position](index=6&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) This section provides a snapshot of the Group's assets, liabilities, and equity, reflecting its financial health Condensed Consolidated Statement of Financial Position (As at June 30) | Metric | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Non-current assets | 10,946 | 11,929 | (983) | -8.2% | | Current assets | 33,774 | 32,943 | 831 | 2.5% | | Trade receivables | 10,115 | 16,377 | (6,262) | -38.2% | | Deposits, prepayments and other receivables | 16,086 | 10,092 | 5,994 | 59.4% | | Cash and cash equivalents | 4,995 | 3,248 | 1,747 | 53.8% | | Current liabilities | 20,395 | 19,417 | 978 | 5.0% | | Trade and other payables | 15,653 | 13,226 | 2,427 | 18.3% | | Net current assets | 13,379 | 13,526 | (147) | -1.1% | | Net assets | 22,934 | 23,990 | (1,056) | -4.4% | - Trade receivables significantly decreased, while deposits, prepayments, and other receivables substantially increased[15](index=15&type=chunk) [Unaudited Condensed Consolidated Statement of Changes in Equity](index=7&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) This section outlines changes in the Group's equity during the reporting period, including the impact of loss and exchange differences Condensed Consolidated Statement of Changes in Equity (Six Months Ended June 30) | Metric | June 30, 2025 (thousand HKD) | January 1, 2024 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | Total equity at beginning of period | 23,990 | 33,672 | (9,682) | | Loss for the period | (1,008) | (5,921) | 4,913 | | Exchange differences | (48) | (92) | 44 | | Total equity at end of period | 22,934 | 27,659 | (4,725) | - Total equity attributable to owners of the Company decreased from **HKD 23,990 thousand** at the beginning of the period to **HKD 22,934 thousand**, primarily due to the loss for the period and a decrease in exchange reserves[16](index=16&type=chunk) [Unaudited Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) This section presents the Group's cash inflows and outflows from operating, investing, and financing activities Condensed Consolidated Statement of Cash Flows (Six Months Ended June 30) | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | Net cash generated from/(used in) operating activities | 3,284 | (683) | 3,967 | | Net cash generated from/(used in) investing activities | 67 | (10) | 77 | | Net cash used in financing activities | (1,556) | (615) | (941) | | Net increase/(decrease) in cash and cash equivalents | 1,795 | (1,308) | 3,103 | | Cash and cash equivalents at end of period | 4,995 | 5,182 | (187) | - Cash flow from operating activities shifted from a net outflow to a net inflow, indicating improved operating conditions[23](index=23&type=chunk) [Notes to the Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E6%B3%A8) This section details the basis and key information for the Group's unaudited condensed consolidated financial statements [1. General Information](index=9&type=page&id=1.%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) Ying Hai Group Holdings Company Limited was incorporated in the Cayman Islands, with its shares listed on GEM of the Stock Exchange - The Company was incorporated in the Cayman Islands on December 18, 2018, and its shares were listed on GEM of the Stock Exchange on September 26, 2019[25](index=25&type=chunk) - The Company is an investment holding company, with subsidiaries primarily engaged in: Macau travel business (hotel room sales and distribution, profit income from air tickets/hotel rooms/travel packages), Macau automobile business (vehicle rental and limousine services), and Asia event and activity business (ticket sales, event organization and investment)[25](index=25&type=chunk) - The Company's functional currency is HKD, and financial statements are presented in **thousand HKD**[26](index=26&type=chunk) [2. Basis of Preparation and Accounting Policies](index=9&type=page&id=2.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96%E5%8F%8A%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The interim financial statements are prepared in accordance with HKAS 34 and GEM Listing Rules, using historical cost convention, consistent with annual financial statements, with no significant impact from new HFRS amendments - The interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the Hong Kong Institute of Certified Public Accountants and the GEM Listing Rules[27](index=27&type=chunk) - The accounting policies adopted are consistent with those applied in the audited consolidated financial statements for the year ended December 31, 2024[27](index=27&type=chunk) - The application of new and revised Hong Kong Financial Reporting Standards had no significant impact on the financial position and performance for the current period[28](index=28&type=chunk)[29](index=29&type=chunk) [3. Financial Risk Management and Financial Instruments](index=10&type=page&id=3.%20%E8%B2%A1%E5%8B%99%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86%E5%8F%8A%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7) The Group is exposed to credit, cash flow, fair value interest rate, and liquidity risks, with unchanged risk management policies since December 31, 2024, and current financial instruments' carrying amounts approximating fair values - The Group's operations are exposed to credit risk, cash flow and fair value interest rate risk, and liquidity risk[30](index=30&type=chunk) - Risk management policies remained unchanged since December 31, 2024[31](index=31&type=chunk) - The carrying amounts of current financial assets and liabilities approximate their fair values due to their short-term nature[32](index=32&type=chunk) [4. Critical Accounting Estimates and Judgements](index=11&type=page&id=4.%20%E9%97%9C%E9%8D%B5%E6%9C%83%E8%A8%88%E4%BC%B0%E8%A8%88%E5%8F%8A%E5%88%A4%E6%96%B7) The preparation of interim financial statements involves management judgments, estimates, and assumptions, consistent with those followed in the audited consolidated financial statements for the year ended December 31, 2024 - The significant judgments made by management in preparing the financial statements and the key sources of estimation uncertainty are consistent with those in the **2024** annual report[34](index=34&type=chunk) [5. Revenue and Segment Information](index=11&type=page&id=5.%20%E6%94%B6%E7%9B%8A%E5%8F%8A%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group's revenue primarily stems from hotel room sales and distribution, limousine services, and event and activity business; for the six months ended June 30, 2025, hotel room sales and distribution revenue significantly increased, while event and activity income decreased, with the Group having three reportable operating segments: travel, automobile, and event and activity businesses Revenue by Source (Six Months Ended June 30) | Revenue Source | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Hotel room sales and distribution | 39,791 | 33,444 | 6,347 | 19.0% | | Provision of limousine services | 7,987 | 7,374 | 613 | 8.3% | | Event and activity income | 2,168 | 5,202 | (3,034) | -58.3% | | Vehicle rental income | 1,209 | 2,057 | (848) | -41.2% | | **Total Revenue** | **51,490** | **48,302** | **3,188** | **6.6%** | - The Group has three reportable operating segments: travel business, automobile business, and event and activity business[37](index=37&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk)[40](index=40&type=chunk) Segment Revenue and Results (Six Months Ended June 30, 2025) | Segment | Revenue (thousand HKD) | Results (thousand HKD) | | :--- | :--- | :--- | | Travel business | 39,936 | 1,680 | | Automobile business | 9,196 | 5,065 | | Event and activity business | 2,358 | 296 | | **Total** | **51,490** | **7,041** | Segment Revenue and Results (Six Months Ended June 30, 2024) | Segment | Revenue (thousand HKD) | Results (thousand HKD) | | :--- | :--- | :--- | | Travel business | 34,302 | 1,686 | | Automobile business | 8,792 | 3,352 | | Event and activity business | 5,208 | (200) | | **Total** | **48,302** | **4,838** | [6. Other Income and Gains](index=13&type=page&id=6.%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) For the six months ended June 30, 2025, other income and gains increased to **HKD 400 thousand**, primarily due to higher exchange gains and miscellaneous income Other Income and Gains (Six Months Ended June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Interest income | 38 | 10 | 28 | 280.0% | | Exchange gains | 186 | 45 | 141 | 313.3% | | Miscellaneous income | 176 | 77 | 99 | 128.6% | | **Total** | **400** | **178** | **222** | **124.7%** | [7. Finance Costs](index=14&type=page&id=7.%20%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) For the six months ended June 30, 2025, finance costs decreased from **HKD 69 thousand** in the prior period to **HKD 33 thousand**, mainly due to lower interest on lease liabilities and bank borrowings Finance Costs (Six Months Ended June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Interest on lease liabilities | 12 | 40 | (28) | -70.0% | | Interest on bank borrowings | 21 | 29 | (8) | -27.6% | | **Total** | **33** | **69** | **(36)** | **-52.2%** | [8. Loss Before Tax](index=14&type=page&id=8.%20%E9%99%A4%E7%A8%85%E5%89%8D%E8%99%A7%E6%90%8D) For the six months ended June 30, 2025, loss before tax was **HKD 1,008 thousand**, primarily impacted by depreciation, lease payments, and employee benefit expenses, with the latter decreasing year-on-year Loss Before Tax Major Components (Six Months Ended June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 1,093 | 887 | 206 | 23.2% | | Lease payments relating to leased assets under operating leases | 452 | 526 | (74) | -14.1% | | Employee benefit expenses (including directors' emoluments) | 8,818 | 10,278 | (1,460) | -14.2% | [9. Income Tax Expense](index=14&type=page&id=9.%20%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 had no income tax expense due to the absence of assessable profits - For the six months ended June 30, 2025, and 2024, the Group had no income tax expense due to the absence of assessable profits[49](index=49&type=chunk) - The Macau Complementary Tax rate is **12%**, and the China Enterprise Income Tax rate is **25%**[49](index=49&type=chunk) [10. Loss Per Share](index=15&type=page&id=10.%20%E6%AF%8F%E8%82%A1%E8%99%A7%E6%90%8D) For the six months ended June 30, 2025, basic and diluted loss per share was **0.08 HK cents**, a significant narrowing from **0.49 HK cents** in the prior period, mainly due to reduced loss for the period Loss Per Share (Six Months Ended June 30) | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Loss for the period attributable to owners of the Company | (1,008) | (5,921) | | Weighted average number of shares (thousand shares) | 1,200,000 | 1,200,000 | | Basic and diluted loss per share | **(0.08) HK cents** | **(0.49) HK cents** | - As the Company had no potential dilutive ordinary shares during the reporting period, diluted loss per share was the same as basic loss per share[50](index=50&type=chunk) [11. Dividends](index=15&type=page&id=11.%20%E8%82%A1%E6%81%AF) The Board does not recommend the distribution of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend or propose an interim dividend for the six months ended June 30, 2025 (2024: **nil**)[51](index=51&type=chunk) [12. Property, Plant and Equipment](index=15&type=page&id=12.%20%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) For the six months ended June 30, 2025, the Group acquired property, plant and equipment of approximately **HKD 94 thousand**, a significant decrease compared to the prior period - For the six months ended June 30, 2025, property, plant and equipment acquired amounted to approximately **HKD 94 thousand** (2024: approximately **HKD 1,396 thousand**)[52](index=52&type=chunk) [13. Trade Receivables](index=15&type=page&id=13.%20%E8%B2%A3%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As at June 30, 2025, total trade receivables were **HKD 12,085 thousand**, with a net amount of **HKD 10,115 thousand** after provisions, a significant decrease from the end of 2024; credit terms generally range from **30 to 45 days**, and receivables overdue by more than **90 days** substantially increased Trade Receivables (As at June 30) | Metric | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Trade receivables, gross | 12,085 | 19,566 | (7,481) | -38.2% | | Less: Provision for expected credit losses | (1,970) | (3,189) | 1,219 | -38.2% | | **Net** | **10,115** | **16,377** | **(6,262)** | **-38.2%** | - Credit terms granted to major customers generally range from **30 to 45 days**[54](index=54&type=chunk) Trade Receivables Aging Analysis (As at June 30) | Aging | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | 0 to 30 days | 4,801 | 13,220 | (8,419) | -63.7% | | 31 to 60 days | 1,647 | 1,569 | 78 | 5.0% | | 61 to 90 days | 235 | 1,578 | (1,343) | -85.1% | | Over 90 days | 3,432 | 10 | 3,422 | 34220.0% | [14. Deposits, Prepayments and Other Receivables](index=16&type=page&id=14.%20%E6%8C%89%E9%87%91%E3%80%81%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As at June 30, 2025, total deposits, prepayments, and other receivables increased to **HKD 16,086 thousand**, primarily due to increases in prepayments and other receivables Deposits, Prepayments and Other Receivables (As at June 30) | Item | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Deposits paid | 4,518 | 4,752 | (234) | -4.9% | | Prepayments | 7,130 | 3,285 | 3,845 | 117.0% | | Other receivables | 4,438 | 2,055 | 2,383 | 115.9% | | **Total** | **16,086** | **10,092** | **5,994** | **59.4%** | [15. Trade and Other Payables](index=17&type=page&id=15.%20%E8%B2%A3%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 at June 30, 2025, total trade and other payables increased to **HKD 15,653 thousand**, primarily driven by significant increases in accruals and other payables and contract liabilities, while trade payables decreased Trade and Other Payables (As at June 30) | Item | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Trade payables | 7,239 | 8,933 | (1,694) | -19.0% | | Accruals and other payables | 4,620 | 4,023 | 597 | 14.8% | | Contract liabilities | 3,724 | 14 | 3,710 | 26500.0% | | **Total** | **15,653** | **13,226** | **2,427** | **18.3%** | - The average credit period granted by suppliers is **30 days**[60](index=60&type=chunk) Trade Payables Aging Analysis (As at June 30) | Aging | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | 0 to 30 days | 2,578 | 2,805 | (227) | -8.1% | | 31 to 60 days | 2,664 | 2,398 | 266 | 11.1% | | 61 to 90 days | 1,907 | 1,919 | (12) | -0.6% | | Over 90 days | 90 | 1,811 | (1,721) | -95.0% | [16. Share Capital](index=18&type=page&id=16.%20%E8%82%A1%E6%9C%AC) As at June 30, 2025, there were no significant changes in the Company's share capital structure, with both authorised and issued and fully paid share capital remaining unchanged Share Capital Structure (As at June 30) | Metric | Number of Ordinary Shares as at June 30, 2025 (thousand shares) | Carrying Amount as at June 30, 2025 (thousand HKD) | Number of Ordinary Shares as at December 31, 2024 (thousand shares) | Carrying Amount as at December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | :--- | :--- | | Authorised share capital | 12,000,000 | 120,000 | 12,000,000 | 120,000 | | Issued and fully paid share capital | 1,200,000 | 12,000 | 1,200,000 | 12,000 | - For the six months ended June 30, 2025, there were no significant changes in the Company's share capital structure[92](index=92&type=chunk) [17. Significant Related Party Transactions](index=18&type=page&id=17.%20%E9%87%8D%E5%A4%A7%E9%97%9C%E9%80%A3%E6%96%B9%E4%BA%A4%E6%98%93) For the six months ended June 30, 2025, the Group paid **HKD 117 thousand** in software maintenance fees to associated company Gold Faith Information Technology Limited, consistent with the prior period - Software maintenance fees of **HKD 117 thousand** were paid to associated company Gold Faith Information Technology Limited (2024: **HKD 117 thousand**)[64](index=64&type=chunk) - Gold Faith Information Technology Limited is beneficially owned by Ms. Chau Shu Yee, an executive Director of the Company[64](index=64&type=chunk) [18. Events After the Reporting Period](index=18&type=page&id=18.%20%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) As at the date of this report, the Board is not aware of any significant events after the reporting period that require disclosure - As at the date of this report, the Board is not aware of any significant events after the reporting period that require disclosure[65](index=65&type=chunk) [Management Discussion and Analysis](index=19&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) This section discusses the Group's business performance, financial position, future outlook, and key risks and uncertainties [Business Review and Prospects](index=19&type=page&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7%E5%8F%8A%E5%89%8D%E6%99%AF) The Group, as a licensed travel agent and car rental service provider in Macau, operates across tourism, automobile, and event activities; its strategic goals include consolidating its market position in Macau, expanding cooperation for mid-to-high-end hotel rooms, considering extending its tourism business to China, and diversifying revenue through event activities - The Group primarily provides travel services and car rental services in Macau, China, and Hong Kong[66](index=66&type=chunk) - Business scope includes: travel business (hotel room sales and distribution, profit income from air tickets/hotel rooms/travel packages), automobile business (vehicle rental and limousine services), and event and activity business (ticket sales, event organization and investment)[66](index=66&type=chunk) - Strategic objectives: consolidate market position in Macau's tourism industry, seek cooperation with more Macau hotel operators, travel agents, and corporate clients, increase the number and variety of mid-to-high-end hotel rooms, and attract business travelers and high-spending customers[67](index=67&type=chunk) - Plans to expand travel business to China and diversify revenue streams through event and activity business, creating synergies with existing operations[67](index=67&type=chunk) - For the six months ended June 30, 2025, the Group participated in and organized several events and activities, such as the 'Kamen Rider **50th** Anniversary Exhibition' in Malaysia, the 'Chainsaw Man Anime Exhibition' in Hong Kong, and the 'POOHPAVEL Macau Fan Meeting' in Macau[68](index=68&type=chunk) [Financial Review](index=20&type=page&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group's revenue increased by **6.6%** year-on-year to **HKD 51.5 million**, primarily driven by growth in hotel room sales and distribution; gross profit surged by **45.8%**, administrative expenses decreased by **20.0%**, leading to a significant **83.0%** narrowing of loss for the period to **HKD 1.0 million** [Revenue](index=20&type=page&id=%E6%94%B6%E7%9B%8A) Group revenue increased by **6.6%** year-on-year, primarily due to growth in hotel room sales and distribution - The Group's revenue increased by approximately **6.6%** from approximately **HKD 48.3 million** for the six months ended June 30, 2024, to approximately **HKD 51.5 million** for the six months ended June 30, 2025[69](index=69&type=chunk) - The increase in revenue was primarily due to increased revenue generated from the sales and distribution of hotel rooms[69](index=69&type=chunk) [Cost of Sales](index=20&type=page&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC) Cost of sales increased by **2.1%** year-on-year, mainly driven by increased sales of hotel rooms, event tickets, and car rental services - Cost of sales increased by approximately **2.1%** from approximately **HKD 43.5 million** to approximately **HKD 44.4 million**[70](index=70&type=chunk) - The increase was mainly driven by higher sales related to hotel room sales and distribution, event ticket sales, and provision of car rental services[70](index=70&type=chunk) [Gross Profit](index=20&type=page&id=%E6%AF%9B%E5%88%A9) Gross profit significantly increased by **45.8%**, primarily due to higher gross margins from increased revenue in car rental services - Gross profit increased by approximately **45.8%** from approximately **HKD 4.8 million** to approximately **HKD 7.0 million**[71](index=71&type=chunk) - The increase in gross profit was primarily due to increased revenue from providing car rental services, which generate higher gross margins for the Group[71](index=71&type=chunk) [Other Income and Gains](index=20&type=page&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) Other income and gains increased year-on-year, primarily due to higher exchange gains - Other income and gains increased from approximately **HKD 0.2 million** to approximately **HKD 0.4 million**[72](index=72&type=chunk) - The increase was mainly due to higher exchange gains for the six months ended June 30, 2025[72](index=72&type=chunk) [Administrative Expenses](index=20&type=page&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) Administrative expenses decreased by **20.0%** year-on-year, primarily due to a reduction in employee benefit expenses - Administrative expenses decreased by approximately **20.0%** from approximately **HKD 12.0 million** to approximately **HKD 9.6 million**[73](index=73&type=chunk) - The decrease in administrative expenses was primarily due to a reduction in employee benefit expenses[73](index=73&type=chunk) [Income Tax Expense](index=20&type=page&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) The Group had no income tax expense during the reporting period due to the absence of assessable profits - The Group had no income tax expense for the six months ended June 30, 2025, and 2024[74](index=74&type=chunk) [Finance Costs](index=20&type=page&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) Finance costs decreased year-on-year, reflecting lower interest on lease liabilities and bank borrowings - The Group's finance costs for the six months ended June 30, 2024, and 2025 were approximately **HKD 69 thousand** and **HKD 33 thousand**, respectively[75](index=75&type=chunk) [Loss for the Period](index=21&type=page&id=%E6%9C%9F%E5%85%A7%E8%99%A7%E6%90%8D) The Group's loss for the period significantly narrowed, primarily due to increased revenue, higher other income, and reduced administrative expenses - For the six months ended June 30, 2025, the Group recorded a loss of approximately **HKD 1.0 million**, compared to a loss of approximately **HKD 5.9 million** for the six months ended June 30, 2024[77](index=77&type=chunk) - The reduction in loss was primarily due to (i) increased revenue from hotel room sales and distribution and provision of car rental services; (ii) increased other income and gains; and (iii) reduced employee benefit expenses[77](index=77&type=chunk) [Use of Net Proceeds from Listing](index=21&type=page&id=%E4%B8%8A%E5%B8%82%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85%E6%B7%A8%E9%A1%8D%E7%94%A8%E9%80%94) Net proceeds from the listing were approximately **HKD 39.3 million**; as at June 30, 2025, **HKD 36.954 million** had been utilized, with the remaining **HKD 2.342 million** primarily allocated for cooperation with more hotel operators, expected to be utilized by December 2025; the use of proceeds was adjusted due to the pandemic's impact - Net proceeds from the listing were approximately **HKD 39.3 million**[78](index=78&type=chunk) Use of Net Proceeds from Listing (As at June 30, 2025) | Intended Use | Adjusted Net Proceeds (thousand HKD) | Actual Utilized as at December 31, 2024 (thousand HKD) | Utilized for the Six Months Ended June 30, 2025 (thousand HKD) | Actual Utilized as at June 30, 2025 (thousand HKD) | Unutilized Amount as at June 30, 2025 (thousand HKD) | Expected Timeline for Intended Use | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Expansion of fleet | 3,965 | 3,965 | — | 3,965 | — | — | | Cooperation with more hotel operators | 6,480 | 4,138 | — | 4,138 | 2,342 | 2025年12月 | | Increase marketing and expand sales channels | 2,319 | 2,319 | — | 2,319 | — | — | | Improve our operational efficiency | 1,485 | 1,485 | — | 1,485 | — | — | | Expand our workforce | 824 | 824 | — | 824 | — | — | | General working capital | 1,080 | 1,080 | — | 1,080 | — | — | | Cooperation with event organizers | 22,186 | 22,186 | — | 22,186 | — | — | | Expansion of travel business to China | 957 | 957 | — | 957 | — | — | | **Total** | **39,296** | **36,954** | **—** | **36,954** | **2,342** | | - The use of proceeds was adjusted due to the adverse impact of the COVID-19 pandemic on the Group's business[78](index=78&type=chunk) [Comparison of Business Strategies with Actual Business Progress](index=22&type=page&id=%E6%A5%AD%E5%8B%99%E7%AD%96%E7%95%A5%E8%88%87%E5%AF%A6%E9%9A%9B%E6%A5%AD%E5%8B%99%E9%80%B2%E5%B1%95%E7%9A%84%E6%AF%94%E8%BC%83) The Group has purchased **19 new vehicles** for fleet expansion, but is still identifying opportunities for cooperation with more hotel operators, event organizers, and expanding its tourism business into China Business Strategies and Actual Business Progress | Business Strategies as Stated in Prospectus and 2021 Announcement | Actual Business Progress as at the Date of this Report | | :--- | :--- | | Expansion of fleet | Purchased **19** new vehicles to provide point-to-point cross-border transportation services and car rental services in Macau | | Cooperation with more hotel operators | Identifying suitable hotel operators for cooperation | | Cooperation with event organizers | Will cooperate with event organizers to sponsor performances and events by renowned celebrities and artists in China, Macau, and Asia, subject to market demand | | Expansion of travel business to China | Identifying business opportunities in the tourism industry in China and Hong Kong | [Key Risks and Uncertainties in Achieving Our Business Strategies](index=22&type=page&id=%E5%AF%A6%E7%8F%BE%E6%88%91%E5%80%91%E6%A5%AD%E5%8B%99%E7%AD%96%E7%95%A5%E6%99%82%E7%9A%84%E4%B8%BB%E8%A6%81%E9%A2%A8%E9%9A%AA%E5%8F%8A%E4%B8%8D%E6%98%8E%E6%9C%97%E5%9B%A0%E7%B4%A0) The Group faces multiple risks in achieving its business strategies, including potential resurgence of pandemics, travel restrictions, failure to secure suitable hotel partners, difficulties in market timing, and changes in consumer behavior amidst intense competition - A resurgence of the pandemic or other infectious diseases could lead to travel restrictions and lockdown measures, significantly impacting business operations[82](index=82&type=chunk) - Failure to find suitable hotel operators for cooperation with attractive terms could hinder expansion plans[82](index=82&type=chunk) - Difficulties in grasping business trends and market timing exist[82](index=82&type=chunk) - Facing changes in consumer behavior and intense competition in a volatile business environment[82](index=82&type=chunk) [Key Risks and Uncertainties](index=23&type=page&id=%E4%B8%BB%E8%A6%81%E9%A2%A8%E9%9A%AA%E5%8F%8A%E4%B8%8D%E6%98%8E%E6%9C%97%E5%9B%A0%E7%B4%A0) Key risks faced by the Group include the ongoing impact of the pandemic on tourism, reliance on Macau and China's policy and economic environment, delayed or defaulted customer payments, direct dealings between suppliers and customers, termination or unfavorable renewal of hotel cooperation agreements, and inability to secure sufficient parking spaces at reasonable costs - The severe impact of the pandemic on Macau and China's tourism industry, with potential future travel restrictions adversely affecting business again[84](index=84&type=chunk) - Revenue primarily derived from Macau, making it susceptible to changes in Macau and China's policies and economic environment[84](index=84&type=chunk) - Customers may delay or default on payments, while the Group still needs to pay hotel room fees and bear costs[84](index=84&type=chunk) - Key suppliers may deal directly with customers, or travel agent customers may procure hotel rooms from each other, bypassing the Group[84](index=84&type=chunk) - Hotel operators may terminate or refuse to renew cooperation agreements, or renewal terms may be unfavorable[84](index=84&type=chunk) - Failure to sell or distribute guaranteed quantities of hotel rooms at high prices, or reduced supply from hotel operators, could lead to reduced profits or losses[84](index=84&type=chunk) - Failure to obtain and maintain sufficient parking spaces at reasonable costs could impact growth opportunities[84](index=84&type=chunk) [Employees and Remuneration Policy](index=23&type=page&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As at June 30, 2025, the Group had **62 employees** with staff costs of approximately **HKD 8.8 million**, a year-on-year decrease primarily due to the cancellation of a one-off bonus scheme and a reduction in headcount; remuneration packages are determined based on individual performance, experience, and market levels - As at June 30, 2025, the Group had **62 employees** (June 30, 2024: **83 employees**)[83](index=83&type=chunk) - For the six months ended June 30, 2025, the Group's staff costs (including directors' emoluments) were approximately **HKD 8.8 million** (June 30, 2024: approximately **HKD 10.3 million**)[83](index=83&type=chunk) - The decrease in staff costs was mainly due to the introduction of a one-off staff bonus scheme for the six months ended June 30, 2024, and a reduction in the number of employees[83](index=83&type=chunk) - Remuneration packages are determined with reference to individual performance, work experience, and prevailing market salary levels, including basic salary, mandatory provident fund contributions, medical insurance plans, and potential share options[83](index=83&type=chunk) [Significant Acquisitions and Disposals of Subsidiaries](index=24&type=page&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) For the six months ended June 30, 2025, and up to the date of this report, there were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, and up to the date of this report, there were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures[85](index=85&type=chunk) [Significant Investments Held](index=24&type=page&id=%E6%8C%81%E6%9C%89%E7%9A%84%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) The Group's significant investments include financial assets at fair value through profit or loss (primarily event activity investments) and investment properties (Macau parking spaces); as at June 30, 2025, financial assets were settled, and investment properties' fair value remained unchanged, generating rental income - The Group's significant investments include financial assets at fair value through profit or loss and investment properties[86](index=86&type=chunk) Financial Assets at Fair Value Through Profit or Loss Movement (Six Months Ended June 30, 2025) | Metric | Investment Cost (thousand HKD) | Fair Value at Beginning of Year (thousand HKD) | Fair Value Gains Recognized (thousand HKD) | Settlement (thousand HKD) | Fair Value at End of Period (thousand HKD) | | :--- | :--- | :--- | :--- | :--- | :--- | | Financial assets at fair value through profit or loss | 1,411 | 525 | 190 | 715 | — | - Financial assets at fair value through profit or loss refer to investments in various activities (such as the 'Kamen Rider **50th** Anniversary Exhibition' and 'Chainsaw Man Anime Exhibition'), where the Group is entitled to **20%** of the profits, and these activities were completed during the period[86](index=86&type=chunk) Investment Property Movement (Six Months Ended June 30, 2025) | Investment Property | Usage | Fair Value at Beginning of Year (thousand HKD) | Change in Fair Value (thousand HKD) | Fair Value at End of Period (thousand HKD) | Fair Value at End of Period as % of Total Assets | | :--- | :--- | :--- | :--- | :--- | :--- | | Parking Space No. 374, 1st Floor, Edificio Fu Tat Fa Yuen, No. 68 Rua de Paris, Macau | Parking space | 922 | — | 922 | 2.2% | | Parking Spaces Nos. 339 and 340, Mezzanine Floor, Dynasty Plaza, No. 463 Rua de Xangai, Macau | Parking space | 1,750 | — | 1,750 | 4.1% | | **Total** | | **2,672** | **—** | **2,672** | **6.3%** | - Investment properties refer to the Group's investments in parking spaces in Macau, which were leased out for rental income of approximately **HKD 28 thousand** for the six months ended June 30, 2025[88](index=88&type=chunk) [The Company's Investment Strategy for Investment Activities](index=26&type=page&id=%E6%9C%AC%E5%85%AC%E5%8F%B8%E5%B0%8D%E6%8A%95%E8%B3%87%E6%B4%BB%E5%8B%95%E7%9A%84%E6%8A%95%E8%B3%87%E7%AD%96%E7%95%A5) The Company aims to diversify revenue streams by organizing and participating in renowned performances and events, leveraging Group resources - The Group's strategy is to identify opportunities, organize, and participate in renowned performances and events to diversify its revenue streams by leveraging its resources[90](index=90&type=chunk) [The Company's Investment Strategy for Investment Properties](index=26&type=page&id=%E6%9C%AC%E5%85%AC%E5%8F%B8%E5%B0%B1%E6%8A%95%E8%B3%87%E7%89%A9%E6%A5%AD%E7%9A%84%E6%8A%95%E8%B3%87%E7%AD%96%E7%95%A5) The Company aims to generate cash inflows and capital appreciation from parking spaces, with no current plans to strategically increase its investment property portfolio - The Group's strategy is to utilize parking spaces to generate cash inflows and capital appreciation[91](index=91&type=chunk) - Currently, the Group has no plans to strategically increase its investment property portfolio; additional investment properties will only be acquired if suitable investment opportunities arise and the Group has surplus funds[91](index=91&type=chunk) [Liquidity and Financial Resources](index=26&type=page&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) The Group's total cash and bank deposits increased to **HKD 7.6 million**, while total borrowings and lease liabilities decreased to **HKD 1.7 million**; the gearing ratio fell to **7.6%**, indicating reduced financial leverage; the Group has no significant commitments or contingent liabilities and closely monitors foreign exchange risks [Capital Structure](index=26&type=page&id=%E8%B3%87%E6%9C%AC%E7%B5%90%E6%A7%8B) As at June 30, 2025, there were no significant changes in the Company's share capital structure, and no treasury shares were held or disposed of - For the six months ended June 30, 2025, there were no significant changes in the Company's share capital structure[92](index=92&type=chunk) - For the six months ended June 30, 2025, the Group did not hold or dispose of any treasury shares[92](index=92&type=chunk) [Cash Position](index=26&type=page&id=%E7%8F%BE%E9%87%91%E7%8B%80%E6%B3%81) The Group's total cash and bank deposits increased to **HKD 7.6 million**, primarily due to net cash inflow from operating activities - Cash and cash equivalents and bank deposits with maturities over three months ('Total Bank Balances') increased from approximately **HKD 5.9 million** as at December 31, 2024, to approximately **HKD 7.6 million** as at June 30, 2025[93](index=93&type=chunk) - The increase in cash and cash equivalents and bank deposits was primarily due to net cash inflow from operating activities for the six months ended June 30, 2025[93](index=93&type=chunk) - As at June 30, 2025, out of the **HKD 7.6 million** Total Bank Balances: approximately **HKD 5.0 million** represented the Group's cash and cash equivalents; and approximately **HKD 2.6 million** represented the Group's bank deposits with maturities over three months[93](index=93&type=chunk) [Borrowings and Lease Liabilities](index=26&type=page&id=%E5%80%9F%E6%AC%BE%E5%8F%8A%E7%A7%9F%E8%B3%83%E8%B2%A0%E5%82%B5) The Group's total borrowings and lease liabilities decreased to **HKD 1.7 million**, primarily comprising bank borrowings and lease liabilities - As at June 30, 2025, the Group's total borrowings and lease liabilities were approximately **HKD 1.7 million** (December 31, 2024: approximately **HKD 2.3 million**)[93](index=93&type=chunk) - Of this, approximately **HKD 1.5 million** represented bank borrowings with a fixed annual interest rate of **2.75%**[93](index=93&type=chunk) - Approximately **HKD 0.2 million** represented the Group's lease liabilities for right-of-use leases, with annual interest rates ranging from **4.3%** to **8.0%**[93](index=93&type=chunk) [Pledge of Assets](index=27&type=page&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) The Group has pledged bank deposits and certain properties to secure bank financing, trade guarantees, and travel agency license guarantees - As at June 30, 2025, the Group pledged bank deposits amounting to approximately **HKD 2.6 million** with maturities over three months as collateral for general banking facilities granted to the Group, as general trade deposit guarantees issued to the Group's suppliers, and as guarantees issued to the Macau government for obtaining travel agency licenses[94](index=94&type=chunk) - As at June 30, 2025, the Group pledged properties (parking spaces in Macau) with a carrying amount of approximately **HKD 1.8 million** to secure bank borrowings with a carrying amount of approximately **HKD 1.5 million**[94](index=94&type=chunk) [Gearing Ratio](index=27&type=page&id=%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) The Group's gearing ratio decreased to **7.6%**, reflecting reduced financial leverage - As at June 30, 2025, the Group's gearing ratio was approximately **7.6%** (December 31, 2024: approximately **9.4%**)[95](index=95&type=chunk) - The gearing ratio is calculated as total borrowings and lease liabilities divided by equity attributable to owners of the Company at the end of each period or year[95](index=95&type=chunk) [Dividends](index=27&type=page&id=%E8%82%A1%E6%81%AF) The Company did not declare or propose any interim dividend during the reporting period - For the six months ended June 30, 2025, the Company did not declare or propose any interim dividend (six months ended June 30, 2024: **nil**)[96](index=96&type=chunk) [Commitments](index=27&type=page&id=%E6%89%BF%E6%93%94) As at June 30, 2025, the Group had no significant capital commitments - As at June 30, 2025, the Group had no significant capital commitments (December 31, 2024: **nil**)[97](index=97&type=chunk) [Contingent Liabilities](index=27&type=page&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As at June 30, 2025, the Group had no significant contingent liabilities - As at June 30, 2025, the Group had no significant contingent liabilities (December 31, 2024: **nil**)[98](index=98&type=chunk) [Foreign Exchange Risk](index=27&type=page&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) The Group operates in Macau, Hong Kong, and China, with transactions involving multiple currencies, and closely monitors foreign exchange risks - The Group operates in Macau, Hong Kong, and China, with most transactions settled in MOP, HKD, USD, SGD, TWD, and RMB[99](index=99&type=chunk) - As long as the HKD remains pegged to the MOP and USD, the Group is not exposed to significant foreign exchange risk related to HKD against MOP and USD[100](index=100&type=chunk) - Transactions and monetary assets and liabilities denominated in RMB are minimal, thus the Group considers there is no significant foreign exchange risk related to RMB[101](index=101&type=chunk) - The Group currently has no foreign exchange hedging policy for assets and liabilities denominated in foreign currencies; it will closely monitor foreign exchange risks and consider hedging significant exposures when necessary[101](index=101&type=chunk) [Treasury and Risk Management](index=28&type=page&id=%E5%BA%AB%E5%8B%99%E5%8F%8A%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86) The Board continues to follow a prudent policy to manage cash and maintain liquidity to seize growth opportunities; the Group's credit risk primarily stems from trade receivables, deposits paid and other receivables, bank deposits, and cash and cash equivalents - The Directors will continue to follow a prudent policy to manage the Group's cash and maintain robust and sufficient liquidity, ensuring the Group can seize opportunities for future growth[102](index=102&type=chunk) - As at June 30, 2025, the Group's credit risk primarily arose from trade receivables, deposits paid and other receivables, bank deposits with original maturities over three months, and cash and cash equivalents[102](index=102&type=chunk) [Future Plans for Material Investments and Capital Assets](index=28&type=page&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E7%9A%84%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) As at June 30, 2025, the Group had no other significant investment and capital asset plans - Save as disclosed in this report, as at June 30, 2025, the Group had no other significant investment and capital asset plans[103](index=103&type=chunk) [Corporate Governance Practices](index=28&type=page&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A6%8F) The Company is committed to maintaining high standards of corporate governance, having adopted the Corporate Governance Code in Appendix C1 of the GEM Listing Rules, and complied with the code in all material respects during the reporting period, except for the combined roles of Chairman and Chief Executive Officer - The Company has adopted the Corporate Governance Code as set out in Appendix C1 to the GEM Listing Rules[104](index=104&type=chunk) - The Board believes that, save for the deviation from Code Provision C.2.1 of Part **2** of the Corporate Governance Code (where the roles of Chairman and Chief Executive Officer are combined), the Company has complied in all material respects with the Corporate Governance Code for the six months ended June 30, 2025[104](index=104&type=chunk) [Chairman and Chief Executive Officer](index=28&type=page&id=%E4%B8%BB%E5%B8%AD%E8%88%87%E8%A1%8C%E6%94%BF%E7%B8%BD%E8%A3%81) Mr. Choi Wai Chun serves as both the Company's Chairman and Chief Executive Officer, an arrangement the Board believes is in the Group's best interest - Mr. Choi Wai Chun is currently the Chairman and Chief Executive Officer of the Company[105](index=105&type=chunk) - The Board believes that Mr. Choi's dual role is in the best interests of the Group, given his expertise in the tourism industry and the collective discussion of all major decisions by the Board, Board committees, and senior management[105](index=105&type=chunk) [Directors' Interests in Competing Businesses](index=28&type=page&id=%E8%91%A3%E4%BA%8B%E6%96%BC%E7%AB%B6%E7%88%AD%E6%A5%AD%E5%8B%99%E7%9A%84%E6%AC%8A%E7%9B%8A) As at the date of this report, no Director or controlling shareholder held any interest in businesses competing with the Group's operations - For the six months ended June 30, 2025, and up to the date of this report, no Director, controlling shareholder, or their close associates had any interest in a business that competes or is likely to compete, directly or indirectly, with the Group's business[106](index=106&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=28&type=page&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B3%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) As at the date of this report, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - For the six months ended June 30, 2025, and up to the date of this report, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[107](index=107&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in the Shares, Underlying Shares and Debentures of the Company and its Associated Corporations](index=29&type=page&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E4%B8%BB%E8%A6%81%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E5%9C%A8%E6%9C%AC%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E7%9B%B8%E8%81%AF%E6%B3%95%E5%9C%98%E7%9A%84%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E5%8F%8A%E5%82%B5%E6%AC%8A%E8%AD%89%E4%B8%AD%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) As at June 30, 2025, Mr. Choi Wai Chun held a **75.0%** long position in the Company's shares through his wholly-owned Silver Esteem Limited, and a **100.0%** beneficial interest in Silver Esteem Limited Directors' Long Positions in Shares (As at June 30, 2025) | Director's Name | Capacity | Number of Ordinary Shares | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Choi Wai Chun | Interest of controlled corporation | 900,000,000 | 75.0% | - These **900,000,000** shares are held by Silver Esteem Limited, a company wholly-owned by Mr. Choi Wai Chun[110](index=110&type=chunk) Directors' Long Positions in Shares of Associated Corporations (As at June 30, 2025) | Director's Name | Name of Associated Corporation | Capacity | Number of Ordinary Shares | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Choi Wai Chun | Silver Esteem Limited | Beneficial owner | 1 | 100.0% | [Substantial Shareholders' and Other Persons' Interests and Short Positions in the Shares, Underlying Shares and Debentures of the Company](index=30&type=page&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E5%8F%8A%E5%85%B6%E4%BB%96%E4%BA%BA%E5%A3%AB%E5%9C%A8%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E5%8F%8A%E5%82%B5%E6%AC%8A%E8%AD%89%E4%B8%AD%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) As at June 30, 2025, substantial shareholder Silver Esteem Limited held a **75.0%** long position in the Company's shares, and Ms. Wong Pui King, Mr. Choi Wai Chun's spouse, is also deemed to hold the same percentage of shares due to spousal interest Substantial Shareholders' Long Positions in Shares (As at June 30, 2025) | Shareholder's Name | Capacity | Number of Ordinary Shares | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Silver Esteem Limited | Beneficial owner | 900,000,000 | 75.0% | | Ms. Wong Pui King | Interest of spouse | 900,000,000 | 75.0% | - Silver Esteem Limited is wholly-owned by Mr. Choi Wai Chun[115](index=115&type=chunk) - Ms. Wong Pui King, being the spouse of Mr. Choi Wai Chun, is deemed to be interested in all the shares held by Mr. Choi Wai Chun for the purpose of the Securities and Futures Ordinance[115](index=115&type=chunk) [Share Option Scheme](index=30&type=page&id=%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) The Company adopted a share option scheme on September 3, 2019, but as at the date of this report, no share options have been granted, exercised, cancelled, forfeited, or lapsed under the scheme - The Company adopted a share option scheme on September 3, 2019[113](index=113&type=chunk) - No share options were granted, agreed to be granted, exercised, cancelled, lapsed, or forfeited under the scheme for the six months ended June 30, 2025, and up to the date of this report[113](index=113&type=chunk) [Standard of Dealings by Directors in Securities](index=30&type=page&id=%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E4%B9%8B%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The Group has adopted the required standard of dealings set out in the GEM Listing Rules, and all Directors confirmed compliance with the code during the reporting period - The Group has adopted the required standard of dealings set out in Rules **5.48** to **5.67** of the GEM Listing Rules as the code of conduct for directors' dealings in securities[114](index=114&type=chunk) - Following specific enquiries with all Directors, all Directors confirmed that they have complied with the required standard of dealings and the code of conduct for directors' dealings in securities for the six months ended June 30, 2025, and up to the date of this report[114](index=114&type=chunk) [Events After the Reporting Period](index=31&type=page&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) As at the date of this report, no significant events requiring disclosure occurred after the reporting period - No significant events requiring disclosure occurred after June 30, 2025, and up to the date of this report[116](index=116&type=chunk) [Audit Committee](index=31&type=page&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 with Mr. Wu Chung Ming as Chairman, has reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2025, and found them compliant with applicable accounting standards and GEM Listing Rules - The Audit Committee comprises three independent non-executive Directors, namely Mr. Wu Chung Ming (Chairman), Mr. So Siu Kei, and Mr. Sze Lik Tao[117](index=117&type=chunk) - The Audit Committee has reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2025, and is of the opinion that they were prepared in accordance with applicable accounting standards and the GEM Listing Rules, and that adequate disclosures have been made[117](index=117&type=chunk)

[Financial Highlights](index=4&type=section&id=Financial%20Highlights) This section provides an overview of key financial data, including revenue, loss attributable to owners, and EPS, showing significant loss reduction Key Financial Data Overview | Indicator | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | Change (HKD thousands) | Growth Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | 51,500 | 48,300 | 3,200 | 6.6% | | Loss for the period attributable to owners of the Company | (1,000) | (5,900) | 4,900 (narrowed) | -83.1% | | Basic and diluted loss per share | (0.08) HK cents | (0.49) HK cents | 0.41 HK cents (improved) | -83.7% | - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[12](index=12&type=chunk) [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement presents the group's financial performance for the six months, showing revenue growth and a reduced loss Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Six Months Ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | 51,490 | 48,302 | 3,188 | 6.6% | | Cost of sales | (44,449) | (43,464) | (985) | 2.3% | | Gross profit | 7,041 | 4,838 | 2,203 | 45.5% | | Other income and gains | 400 | 178 | 222 | 124.7% | | Administrative expenses | (9,601) | (12,039) | 2,438 | -20.2% | | Loss before tax | (1,008) | (5,921) | 4,913 | -83.0% | | Loss for the period | (1,008) | (5,921) | 4,913 | -83.0% | | Basic and diluted loss per share | (0.08) HK cents | (0.49) HK cents | 0.41 HK cents | -83.7% | [Unaudited Condensed Consolidated Statement of Financial Position](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement details the group's assets, liabilities, and equity as of June 30, 2025, indicating changes in financial position Condensed Consolidated Statement of Financial Position (As at June 30, 2025) | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | **Non-current assets** | | | | | | Property, plant and equipment | 7,561 | 8,560 | (999) | -11.7% | | Investment properties | 2,672 | 2,672 | 0 | 0.0% | | Investment in an associate | 713 | 697 | 16 | 2.3% | | **Total non-current assets** | **10,946** | **11,929** | **(983)** | **-8.2%** | | **Current assets** | | | | | | Trade receivables | 10,115 | 16,377 | (6,262) | -38.2% | | Deposits, prepayments and other receivables | 16,086 | 10,092 | 5,994 | 59.4% | | Cash and cash equivalents | 4,995 | 3,248 | 1,747 | 53.8% | | **Total current assets** | **33,774** | **32,943** | **831** | **2.5%** | | **Current liabilities** | | | | | | Trade and other payables | 15,653 | 13,226 | 2,427 | 18.3% | | Borrowings | 139 | 139 | 0 | 0.0% | | Lease liabilities | 218 | 658 | (440) | -66.9% | | **Total current liabilities** | **20,395** | **19,417** | **978** | **5.0%** | | **Net assets** | **22,934** | **23,990** | **(1,056)** | **-4.4%** | [Unaudited Condensed Consolidated Statement of Changes in Equity](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement outlines changes in the group's equity attributable to owners, primarily due to the period's loss and exchange reserve movements Condensed Consolidated Statement of Changes in Equity (Six Months Ended June 30, 2025) | Indicator | January 1, 2025 (HKD thousands) | June 30, 2025 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Total equity attributable to owners of the Company | 23,990 | 22,934 | (1,056) | -4.4% | - The **loss for the period of HKD 1,008 thousand** and a **decrease in exchange reserve of HKD 48 thousand** were the primary reasons for the decrease in total equity[18](index=18&type=chunk) [Unaudited Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This statement summarizes cash flows from operating, investing, and financing activities, showing a positive shift in operating cash flow Condensed Consolidated Statement of Cash Flows (Six Months Ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | | :--- | :--- | :--- | :--- | | Net cash generated from/(used in) operating activities | 3,284 | (683) | 3,967 | | Net cash generated from/(used in) investing activities | 67 | (10) | 77 | | Net cash used in financing activities | (1,556) | (615) | (941) | | Net increase/(decrease) in cash and cash equivalents | 1,795 | (1,308) | 3,103 | | Cash and cash equivalents at end of period | 4,995 | 5,182 | (187) | - Operating cash flow shifted from a net outflow to a **net inflow of HKD 3,284 thousand**, indicating improved operational efficiency[25](index=25&type=chunk) - Cash outflow from financing activities increased, primarily due to repayment of borrowings and lease liabilities[25](index=25&type=chunk) [Notes to the Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements [1. General Information](index=9&type=section&id=1.%20General%20Information) This section introduces the company's incorporation, listing, and primary business segments in Macau, China, and Hong Kong - The Company was incorporated in the Cayman Islands on **December 18, 2018**, and listed on GEM of the Stock Exchange on **September 26, 2019**[27](index=27&type=chunk) - Principal business activities include **tourism business** (Macau hotel room sales and distribution, air ticket, hotel room, and travel package related product profit income), **automobile business** (Macau vehicle rental and limousine services), and **performance and event business** (ticket sales, organization, and related support services for performances and events in Asia, and event investments)[27](index=27&type=chunk) - Silver Esteem Limited is the direct and ultimate holding company, wholly owned by Mr. Choi Wai Chun, an executive Director[27](index=27&type=chunk) [2. Basis of Preparation and Accounting Policies](index=9&type=section&id=2.%20Basis%20of%20Preparation%20and%20Accounting%20Policies) This section explains the basis of preparing interim financial statements and the adoption of new accounting standards - The financial statements are prepared in accordance with **Hong Kong Accounting Standard 34 "Interim Financial Reporting"** issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of the GEM Listing Rules[29](index=29&type=chunk) - All new and revised Hong Kong Financial Reporting Standards effective for financial years beginning on or after **January 1, 2025**, including HKAS 21 (Amendment) "Lack of Exchangeability," have been applied[30](index=30&type=chunk)[31](index=31&type=chunk) - The application of new and revised standards has no significant impact on the amounts reported and disclosures made in these financial statements for the current period[31](index=31&type=chunk) [3. Financial Risk Management and Financial Instruments](index=10&type=section&id=3.%20Financial%20Risk%20Management%20and%20Financial%20Instruments) This section addresses the group's exposure to credit, interest rate, and liquidity risks, with unchanged risk management policies [3.1 Financial Risk Factors](index=10&type=section&id=3.1%20Financial%20Risk%20Factors) This section identifies the primary financial risks faced by the group and confirms consistent risk management policies - The Group's operations are exposed to various financial risks: **credit risk, cash flow and fair value interest rate risk, and liquidity risk**[32](index=32&type=chunk) - The risk management policies have remained unchanged since **December 31, 2024**[33](index=33&type=chunk) [3.2 Fair Value Estimation](index=10&type=section&id=3.2%20Fair%20Value%20Estimation) This section states that the carrying amounts of liquid financial instruments approximate their fair values - The carrying amounts of the Group's liquid financial assets and liabilities at the reporting date approximate their fair values[34](index=34&type=chunk) - The carrying amounts of non-current lease liabilities are assumed to approximate their fair values because these amounts are interest-bearing at commercial rates[34](index=34&type=chunk) [4. Critical Accounting Estimates and Judgements](index=11&type=section&id=4.%20Critical%20Accounting%20Estimates%20and%20Judgements) This section highlights the management's use of judgments and estimates in financial reporting, consistent with prior annual statements - The preparation of the unaudited condensed consolidated interim financial statements requires management to make judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income, and expenses[36](index=36&type=chunk) - The significant judgments made by management and the key sources of estimation uncertainty are consistent with those followed in the Company's audited consolidated financial statements for the year ended **December 31, 2024**[36](index=36&type=chunk) [5. Revenue and Segment Information](index=11&type=section&id=5.%20Revenue%20and%20Segment%20Information) This section details the group's revenue sources and segment performance, with tourism and auto businesses being key contributors Revenue Composition (Six Months Ended June 30) | Revenue Source | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Hotel room sales and distribution | 39,791 | 33,444 | 6,347 | 19.0% | | Provision of limousine services | 7,987 | 7,374 | 613 | 8.3% | | Performance and event income | 2,168 | 5,202 | (3,034) | -58.3% | | Gain on financial assets at fair value through profit or loss | 190 | — | 190 | N/A | | Vehicle rental income | 1,209 | 2,057 | (848) | -41.2% | | **Total Revenue** | **51,490** | **48,302** | **3,188** | **6.6%** | - The Group has three reportable operating segments: **tourism business, automobile business, and performance and event business**[39](index=39&type=chunk)[40](index=40&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk) [Segment Revenue and Results](index=12&type=section&id=Segment%20Revenue%20and%20Results) Segment Revenue and Results (Six Months Ended June 30, 2025) | Segment | Revenue (HKD thousands) | Results (HKD thousands) | | :--- | :--- | :--- | | Tourism business | 39,936 | 1,680 | | Automobile business | 9,196 | 5,065 | | Performance and event business | 2,358 | 296 | | **Total** | **51,490** | **7,041** | Segment Revenue and Results (Six Months Ended June 30, 2024) | Segment | Revenue (HKD thousands) | Results (HKD thousands) | | :--- | :--- | :--- | | Tourism business | 34,302 | 1,686 | | Automobile business | 8,792 | 3,352 | | Performance and event business | 5,208 | (200) | | **Total** | **48,302** | **4,838** | - The **automobile business results increased by 51.1%** from HKD 3,352 thousand in the same period of 2024 to **HKD 5,065 thousand** in the same period of 2025[43](index=43&type=chunk)[45](index=45&type=chunk) - Revenue from the performance and event business decreased from HKD 5,208 thousand in the same period of 2024 to **HKD 2,358 thousand** in the same period of 2025, while results turned from a loss of HKD 200 thousand to a **profit of HKD 296 thousand**[43](index=43&type=chunk)[45](index=45&type=chunk) [6. Other Income and Gains](index=13&type=section&id=6.%20Other%20Income%20and%20Gains) This section explains the increase in other income and gains, primarily driven by exchange and miscellaneous income Other Income and Gains Composition (Six Months Ended June 30) | Source | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Interest income | 38 | 10 | 28 | 280.0% | | Exchange gains | 186 | 45 | 141 | 313.3% | | Miscellaneous income | 176 | 77 | 99 | 128.6% | | **Total** | **400** | **178** | **222** | **124.7%** | [7. Finance Costs](index=14&type=section&id=7.%20Finance%20Costs) This section reports a decrease in finance costs due to reduced interest on lease liabilities and bank borrowings Finance Costs Composition (Six Months Ended June 30) | Source | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Interest on lease liabilities | 12 | 40 | (28) | -70.0% | | Interest on bank borrowings | 21 | 29 | (8) | -27.6% | | **Total** | **33** | **69** | **(36)** | **-52.2%** | [8. Loss Before Tax](index=14&type=section&id=8.%20Loss%20Before%20Tax) This section shows a significant reduction in loss before tax, mainly attributed to lower administrative expenses Key Deductions for Loss Before Tax (Six Months Ended June 30) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 1,093 | 887 | 206 | 23.2% | | Lease payments under operating leases for leased assets | 452 | 526 | (74) | -14.1% | | Employee benefits expense (including Directors' emoluments) | 8,633 | 10,093 | (1,460) | -14.5% | | Contributions to retirement benefit schemes | 185 | 185 | 0 | 0.0% | - **Employee benefits expense decreased by HKD 1,460 thousand**, which is a significant factor in the narrowed loss[50](index=50&type=chunk) [9. Income Tax Expense](index=14&type=section&id=9.%20Income%20Tax%20Expense) This section states no income tax expense incurred due to the absence of taxable profits, outlining applicable tax rates - The Group had no income tax expense for the six months ended June 30, 2025 and 2024, as it did not generate any taxable profits[51](index=51&type=chunk) - Macau Complementary Tax is calculated at a rate of **12%**, and Chinese subsidiaries are subject to China Enterprise Income Tax at a rate of **25%**[51](index=51&type=chunk) [10. Loss Per Share](index=15&type=section&id=10.%20Loss%20Per%20Share) This section reports a significant improvement in basic and diluted loss per share due to the reduced period loss Loss Per Share (Six Months Ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Basic and diluted loss per share | (0.08) HK cents | (0.49) HK cents | - The weighted average number of shares used to calculate basic and diluted loss per share is **1,200,000 thousand shares**[52](index=52&type=chunk) - Diluted loss per share is the same as basic loss per share because the Company had no potential dilutive ordinary shares during the reporting period[52](index=52&type=chunk) [11. Dividends](index=15&type=section&id=11.%20Dividends) This section confirms that the board does not recommend an interim dividend for the period - The Directors do not recommend or propose an interim dividend for the six months ended June 30, 2025[53](index=53&type=chunk) [12. Property, Plant and Equipment](index=15&type=section&id=12.%20Property,%20Plant%20and%20Equipment) This section notes a substantial decrease in property, plant, and equipment acquisitions compared to the prior year Property, Plant and Equipment Acquired (Six Months Ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Property, plant and equipment acquired | 94 | 1,396 | (1,302) | -93.3% | [13. Trade Receivables](index=15&type=section&id=13.%20Trade%20Receivables) This section details a significant decrease in net trade receivables, with credit terms typically 30-45 days Trade Receivables (As at June 30, 2025) | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Trade receivables, gross | 12,085 | 19,566 | (7,481) | -38.2% | | Less: Provision for expected credit losses | (1,970) | (3,189) | 1,219 | -38.2% | | **Net** | **10,115** | **16,377** | **(6,262)** | **-38.2%** | - The credit period granted to major customers generally ranges from **30 to 45 days**[56](index=56&type=chunk) - Trade receivables over 90 days significantly increased from **HKD 10 thousand** at the end of 2024 to **HKD 3,432 thousand** as of June 30, 2025[57](index=57&type=chunk) [14. Deposits, Prepayments and Other Receivables](index=16&type=section&id=14.%20Deposits,%20Prepayments%20and%20Other%20Receivables) This section reports a notable increase in deposits, prepayments, and other receivables, driven by prepayments and other receivables Deposits, Prepayments and Other Receivables (As at June 30, 2025) | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Deposits paid | 4,518 | 4,752 | (234) | -4.9% | | Prepayments | 7,130 | 3,285 | 3,845 | 117.0% | | Other receivables | 4,438 | 2,055 | 2,383 | 115.9% | | **Total** | **16,086** | **10,092** | **5,994** | **59.4%** | [15. Trade and Other Payables](index=17&type=section&id=15.%20Trade%20and%20Other%20Payables) This section shows an increase in trade and other payables, primarily due to accrued expenses and contract liabilities Trade and Other Payables (As at June 30, 2025) | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Trade payables | 7,239 | 8,933 | (1,694) | -19.0% | | Accrued expenses and other payables | 4,620 | 4,023 | 597 | 14.8% | | Deposits received | 70 | 256 | (186) | -72.7% | | Contract liabilities | 3,724 | 14 | 3,710 | 26500.0% | | **Total** | **15,653** | **13,226** | **2,427** | **18.3%** | - The average credit period granted by suppliers is **30 days**[62](index=62&type=chunk) - Contract liabilities significantly increased from **HKD 14 thousand** at the end of 2024 to **HKD 3,724 thousand** as of June 30, 2025[61](index=61&type=chunk) [16. Share Capital](index=18&type=section&id=16.%20Share%20Capital) This section states that the company's authorized and issued share capital remained unchanged during the period - Both authorized and issued and fully paid share capital remained unchanged during the reporting period, at **HKD 120,000 thousand** and **HKD 12,000 thousand**, respectively[65](index=65&type=chunk) - The number of issued and fully paid ordinary shares is **1,200,000 thousand shares**[65](index=65&type=chunk) [17. Significant Related Party Transactions](index=18&type=section&id=17.%20Significant%20Related%20Party%20Transactions) This section discloses software maintenance fees paid to an associated company beneficially owned by an executive director Significant Related Party Transactions (Six Months Ended June 30) | Transaction Type | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Software maintenance fees paid to an associated company (Kam Shun Information Technology Limited) | 117 | 117 | - Kam Shun Information Technology Limited is beneficially owned by Ms. Zou Shu Er, an executive Director of the Company[66](index=66&type=chunk) [18. Events After the Reporting Period](index=18&type=section&id=18.%20Events%20After%20the%20Reporting%20Period) This section confirms no significant disclosable events occurred after the reporting period - The Board is not aware of any significant disclosable events after the reporting period from June 30, 2025, up to the date of this report[67](index=67&type=chunk) [Management Discussion and Analysis](index=19&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the group's business performance, financial position, and future strategies [Business Review and Prospects](index=19&type=section&id=Business%20Review%20and%20Prospects) This section reviews the group's diversified business in tourism, auto, and events, outlining expansion plans in Hong Kong and China - The Group is primarily a tourism service and car rental service provider focusing on Macau, China, and Hong Kong, with businesses covering tourism, automobile, and performance and events[68](index=68&type=chunk) - On **March 22, 2023**, Ying Hoi Travel Agency Limited, a subsidiary of the Company, was granted a Hong Kong Travel Agent License by the Travel Industry Authority, expanding its business to Hong Kong[68](index=68&type=chunk) - The Group strategically plans to seek cooperation with more hotel operators, other travel agents, and corporate clients in Macau, and considers expanding its tourism business to China to consolidate its market position and diversify revenue streams[69](index=69&type=chunk) - For the six months ended June 30, 2025, the Group completed and participated in several activities and organized certain events, aiming to broaden revenue sources and create synergies with its existing tourism business[70](index=70&type=chunk) [Financial Review](index=20&type=section&id=Financial%20Review) This section summarizes the group's financial performance, highlighting revenue growth, increased gross profit, and reduced loss - The Group's revenue increased by approximately **6.6%** from approximately **HKD 48.3 million** for the six months ended June 30, 2024, to approximately **HKD 51.5 million** for the six months ended June 30, 2025, primarily due to increased revenue from sales and distribution of hotel rooms[71](index=71&type=chunk) - Gross profit increased by approximately **45.8% to HKD 7.0 million**, mainly due to increased revenue from providing car rental services, which generates higher gross profit margins for the Group[73](index=73&type=chunk) - Administrative expenses decreased by approximately **20.0% to HKD 9.6 million**, primarily due to a reduction in employee benefits expense[75](index=75&type=chunk) - Loss for the period significantly narrowed to **HKD 1.0 million**, mainly due to increased revenue from hotel room sales and distribution and car rental services, increased other income and gains, and reduced employee benefits expense[79](index=79&type=chunk) [Use of Net Proceeds from Listing](index=21&type=section&id=Use%20of%20Net%20Proceeds%20from%20Listing) This section details the utilization of listing proceeds, with a portion remaining for future strategic collaborations - The net proceeds from the listing were approximately **HKD 39.3 million**[80](index=80&type=chunk) Use of Net Proceeds from Listing (As at June 30, 2025) | Intended Use | Adjusted Net Proceeds (HKD thousands) | Actual Utilized as at Dec 31, 2024 (HKD thousands) | Utilized for Six Months Ended June 30, 2025 (HKD thousands) | Actual Utilized as at June 30, 2025 (HKD thousands) | Unutilized Amount as at June 30, 2025 (HKD thousands) | Expected Timeline for Intended Use | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Expanding our fleet | 3,965 | 3,965 | — | 3,965 | — | — | | Collaborating with more hotel operators | 6,480 | 4,138 | — | 4,138 | 2,342 | December 2025 | | Increasing marketing and expanding sales channels | 2,319 | 2,319 | — | 2,319 | — | — | | Improving our operational efficiency | 1,485 | 1,485 | — | 1,485 | — | — | | Expanding our workforce | 824 | 824 | — | 824 | — | — | | General working capital | 1,080 | 1,080 | — | 1,080 | — | — | | Collaborating with performance and event organizers | 22,186 | 22,186 | — | 22,186 | — | — | | Expanding tourism business to China | 957 | 957 | — | 957 | — | — | | **Total** | **39,296** | **36,954** | **—** | **36,954** | **2,342** | | - In view of the adverse impact of the pandemic on the Group's business, the Board resolved on **May 3, 2021**, to revise the intended use of proceeds to diversify business operational risks[80](index=80&type=chunk) [Comparison of Business Strategies with Actual Business Progress](index=22&type=section&id=Comparison%20of%20Business%20Strategies%20with%20Actual%20Business%20Progress) This section compares planned business strategies with actual progress, noting achievements in fleet expansion and ongoing efforts in other areas - **Expanding our fleet**: As of the date of this report, the Group has purchased **19 new vehicles** to provide point-to-point cross-border transportation services and car rental services in Macau[82](index=82&type=chunk) - **Collaborating with more hotel operators**: The Group is identifying suitable hotel operators for cooperation[82](index=82&type=chunk) - **Collaborating with performance and event organizers**: The Group will collaborate with performance and event organizers to sponsor performances and events by renowned celebrities and artists in China, Macau, and Asia, subject to market demand[82](index=82&type=chunk) - **Expanding tourism business to China**: The Group plans to expand its tourism business to China and Hong Kong to diversify its business and is currently identifying business opportunities[82](index=82&type=chunk) [Key Risks and Uncertainties in Achieving Our Business Strategies](index=22&type=section&id=Key%20Risks%20and%20Uncertainties%20in%20Achieving%20Our%20Business%20Strategies) This section identifies key risks to strategy implementation, including pandemic impact, partnership challenges, market timing, and competition - A resurgence of the pandemic or other infectious diseases, and future travel restrictions and lockdown measures, may have a significant adverse impact on the tourism industry and the Group's business[84](index=84&type=chunk) - The Group may not be able to find suitable hotel operators to cooperate with and offer attractive terms to achieve its expansion plans[84](index=84&type=chunk) - Timing is crucial for implementing business plans, and the Group may not be able to grasp business trends to determine the best time to enter markets or expand new sales channels[84](index=84&type=chunk) - In an increasingly volatile and complex business environment, the Group may face changes in consumer behavior and intense competition when implementing its business plans[84](index=84&type=chunk) - To mitigate risks, the Group will ensure its business plans are as flexible as possible and will carefully monitor business trends[83](index=83&type=chunk) [Key Risks and Uncertainties](index=23&type=section&id=Key%20Risks%20and%20Uncertainties) This section outlines the primary risks, such as pandemic impact, reliance on Macau revenue, payment defaults, and supplier/customer bypass - The pandemic has severely impacted the Group's business and operations following travel restrictions imposed by the Macau and Chinese governments, with future uncertainties remaining[86](index=86&type=chunk) - The Group's revenue primarily originates from Macau, making its sales performance susceptible to changes in Macau and China's policies and economic environment[86](index=86&type=chunk) - Customers may delay or default on payments, while the Group may still be required to pay hotel room fees and incur costs[86](index=86&type=chunk) - The Group's major suppliers may choose to deal directly with the Group's customers, and the Group's travel agent customers may obtain hotel rooms from each other, thereby bypassing the Group[86](index=86&type=chunk) - If the Group fails to sell and distribute hotel rooms at prices higher than their respective predetermined room rates, or if hotel operators reduce the number of hotel rooms sold to the Group, the Group may suffer reduced profits or incur losses from the sales and distribution of guaranteed hotel rooms[86](index=86&type=chunk) [Employees and Remuneration Policies](index=23&type=section&id=Employees%20and%20Remuneration%20Policies) This section reports a decrease in employee numbers and staff costs, with remuneration based on performance and market levels - As of June 30, 2025, the Group had **62 employees** (June 30, 2024: 83 employees)[85](index=85&type=chunk) Staff Costs (Six Months Ended June 30) | Indicator | 2025 (HKD millions) | 2024 (HKD millions) | Change (HKD millions) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Staff costs (including Directors' emoluments) | 8.8 | 10.3 | (1.5) | -14.6% | - The decrease in staff costs was mainly due to the introduction of a one-off staff bonus scheme for the six months ended June 30, 2024, and a reduction in the number of employees[85](index=85&type=chunk) - The Group's remuneration packages are determined with reference to individual performance, work experience, and prevailing market remuneration levels, and are reviewed regularly[85](index=85&type=chunk) [Significant Acquisitions and Disposals of Subsidiaries](index=24&type=section&id=Significant%20Acquisitions%20and%20Disposals%20of%20Subsidiaries) This section confirms no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the period - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures for the six months ended June 30, 2025, and up to the date of this report[87](index=87&type=chunk) [Material Investments Held](index=24&type=section&id=Material%20Investments%20Held) This section describes the group's material investments, including financial assets at fair value through profit or loss and investment properties - The Group's material investments include **financial assets at fair value through profit or loss** and **investment properties**[88](index=88&type=chunk) - Financial assets at fair value through profit or loss refer to investments in various activities, such as the "Kamen Rider 50th Anniversary Exhibition" in Malaysia and the "Chainsaw Man Anime Exhibition" in Hong Kong, where the Group is entitled to **20% of the profits** from these activities, which were completed during the reporting period[88](index=88&type=chunk) - Investment properties refer to the Group's investment in parking spaces in Macau, from which the Group earned approximately **HKD 28,000** in rental income for the six months ended June 30, 2025[90](index=90&type=chunk) [The Company's Investment Strategy for Investment Activities](index=26&type=section&id=The%20Company's%20Investment%20Strategy%20for%20Investment%20Activities) The group's strategy is to identify and participate in prominent events to diversify revenue streams - The Group's strategy is to identify opportunities to organize and participate in renowned performances and events, with the aim of utilizing the Group's resources to diversify its income streams[92](index=92&type=chunk) [The Company's Investment Strategy for Investment Properties](index=26&type=section&id=The%20Company's%20Investment%20Strategy%20for%20Investment%20Properties) The group aims to generate cash flow and capital appreciation from parking spaces, with no immediate plans for further expansion - The Group's strategy is to utilize parking spaces to generate cash inflow and capital appreciation[93](index=93&type=chunk) - Currently, the Group has no plans to strategically increase its investment property portfolio and will only invest in additional investment properties when suitable investment opportunities arise and the Group has surplus funds[93](index=93&type=chunk) [Liquidity and Financial Resources](index=26&type=section&id=Liquidity%20and%20Financial%20Resources) This section discusses the group's capital structure, cash position, borrowings, and risk management, showing a stable financial position [Capital Structure](index=26&type=section&id=Capital%20Structure) This section states no significant changes in the company's capital structure or treasury shares during the period - There were no significant changes in the Company's capital structure for the six months ended June 30, 2025[94](index=94&type=chunk) - The Group did not hold or dispose of any treasury shares for the six months ended June 30, 2025[94](index=94&type=chunk) [Cash Position](index=26&type=section&id=Cash%20Position) This section reports an increase in total bank balances, primarily due to net cash inflow from operating activities - Cash and cash equivalents and bank deposits with maturity dates over three months (collectively, "total bank balances") increased from approximately **HKD 5.9 million** as of December 31, 2024, to approximately **HKD 7.6 million** as of June 30, 2025[95](index=95&type=chunk) - The increase in cash and cash equivalents and bank deposits was primarily due to net cash inflow from operating activities for the six months ended June 30, 2025[95](index=95&type=chunk) [Borrowings and Lease Liabilities](index=26&type=section&id=Borrowings%20and%20Lease%20Liabilities) This section details the group's borrowings and lease liabilities, including their interest rates Borrowings and Lease Liabilities (As at June 30, 2025) | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Total borrowings and lease liabilities | 1,700 | 2,300 | (600) | -26.1% | | Bank borrowings | 1,500 | 1,600 | (100) | -6.3% | | Lease liabilities | 200 | 700 | (500) | -71.4% | - Bank borrowings bear a fixed annual interest rate of **2.75%**, while lease liabilities bear annual interest rates ranging from **4.3% to 8.0%**[95](index=95&type=chunk) [Pledge of Assets](index=27&type=section&id=Pledge%20of%20Assets) This section describes the assets pledged as collateral for bank financing, trade deposits, and a travel agency license - As of June 30, 2025, the Group had pledged bank deposits amounting to approximately **HKD 2.6 million** with maturity dates over three months as collateral for general banking facilities granted to the Group, as general trade deposit guarantees issued to the Group's suppliers, and as a guarantee to the Macau government for obtaining a Macau travel agency license[96](index=96&type=chunk) - As of June 30, 2025, the Group had pledged properties (parking spaces in Macau) with a carrying value of approximately **HKD 1.8 million** to secure bank borrowings with a carrying value of approximately **HKD 1.5 million**[96](index=96&type=chunk) [Gearing Ratio](index=27&type=section&id=Gearing%20Ratio) This section presents the gearing ratio, which decreased, calculated as borrowings and lease liabilities over equity Gearing Ratio | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Gearing ratio | 7.6% | 9.4% | -1.8 percentage points | - The gearing ratio is calculated as borrowings and lease liabilities divided by equity attributable to owners of the Company at the end of each period or year[97](index=97&type=chunk) [Dividends](index=27&type=section&id=Dividends) This section confirms no interim dividend was declared or proposed for the period - The Company did not declare or propose an interim dividend for the six months ended June 30, 2025[98](index=98&type=chunk) [Commitments](index=27&type=section&id=Commitments) This section states that the group had no significant capital commitments at the reporting date - As of June 30, 2025, the Group had no significant capital commitments[99](index=99&type=chunk) [Contingent Liabilities](index=27&type=section&id=Contingent%20Liabilities) This section confirms the absence of significant contingent liabilities at the reporting date - As of June 30, 2025, the Group had no significant contingent liabilities[100](index=100&type=chunk) [Foreign Exchange Risk](index=27&type=section&id=Foreign%20Exchange%20Risk) This section discusses the group's exposure to foreign exchange risk, primarily from transactions in various currencies, and its hedging policy - The Group operates in Macau, Hong Kong, and China, with most transactions settled in **Macanese Pataca, Hong Kong Dollars, US Dollars, Singapore Dollars, New Taiwan Dollars, and Renminbi**[101](index=101&type=chunk) - As long as the Hong Kong Dollar remains pegged to the Macanese Pataca and the US Dollar, the Group is not exposed to significant foreign exchange risk related to the Hong Kong Dollar against the Macanese Pataca and the US Dollar[102](index=102&type=chunk) - Transactions and monetary assets and liabilities denominated in Renminbi are minimal, thus the Group considers there is no significant foreign exchange risk related to Renminbi[103](index=103&type=chunk) - The Group currently has no foreign exchange hedging policy for assets and liabilities denominated in foreign currencies but will closely monitor and consider hedging significant foreign exchange risks[103](index=103&type=chunk) [Treasury and Risk Management](index=28&type=section&id=Treasury%20and%20Risk%20Management) This section outlines the board's prudent policy for cash and liquidity management and identifies key credit risk sources - The Directors will continue to follow a prudent policy to manage the Group's cash and maintain robust and adequate liquidity, ensuring the Group can seize opportunities for future growth[104](index=104&type=chunk) - As of June 30, 2025, the Group's credit risk primarily arose from trade receivables, deposits paid and other receivables, bank deposits with original maturity dates over three months, and cash and cash equivalents[104](index=104&type=chunk) [Future Plans for Material Investments and Capital Assets](index=28&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) This section states that the group has no other significant future plans for investments or capital assets beyond those disclosed - Except as disclosed in this report, as of June 30, 2025, the Group had no other significant future plans for material investments and capital assets[105](index=105&type=chunk) [Corporate Governance Practices](index=28&type=section&id=Corporate%20Governance%20Practices) This section affirms the company's commitment to high corporate governance standards, generally complying with the GEM Listing Rules - The Company is committed to maintaining high standards of corporate governance to ensure the transparency of the Group and safeguard shareholders' interests[106](index=106&type=chunk) - The Company has adopted the Corporate Governance Code set out in Appendix C1 to the GEM Listing Rules[106](index=106&type=chunk) - Except for the deviation from Code Provision C.2.1 of the Corporate Governance Code (combined roles of Chairman and Chief Executive Officer), the Company has complied with the Corporate Governance Code in all material aspects during the reporting period[106](index=106&type=chunk) [Chairman and Chief Executive Officer](index=28&type=section&id=Chairman%20and%20Chief%20Executive%20Officer) This section addresses the combined roles of Chairman and CEO, noting the board's view on its benefit and balance of power - Mr. Choi Wai Chun currently serves as both the Chairman and Chief Executive Officer of the Company, which deviates from Code Provision C.2.1 of the Corporate Governance Code[107](index=107&type=chunk) - The Board believes that Mr. Choi's dual role is in the best interests of the Group, and with competent independent non-executive Directors, it does not impair the balance of power and authority between the Board and its management in the Group's business[107](index=107&type=chunk) [Directors' Interests in Competing Business](index=28&type=section&id=Directors'%20Interests%20in%20Competing%20Business) This section confirms no directors or controlling shareholders had interests in competing businesses during the period - For the six months ended June 30, 2025, and up to the date of this report, no Director or controlling shareholder or their close associates had any interests in businesses that compete or may compete, directly or indirectly, with the Group's business[108](index=108&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=28&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) This section states that neither the company nor its subsidiaries purchased, sold, or redeemed listed securities during the period - For the six months ended June 30, 2025, and up to the date of this report, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[109](index=109&type=chunk) - The Company did not hold any treasury shares for the six months ended June 30, 2025[109](index=109&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in the Shares, Underlying Shares and Debentures of the Company and its Associated Corporations](index=29&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20the%20Shares,%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20and%20its%20Associated%20Corporations) This section discloses the interests of directors and chief executives in the company's shares and associated corporations [Long Positions in Shares](index=29&type=section&id=Long%20Positions%20in%20Shares) This section details the long position of Mr. Choi Wai Chun through his controlled corporation Directors' Long Positions in Shares (As at June 30, 2025) | Director's Name | Capacity | Number of Ordinary Shares | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Choi Wai Chun | Interest in controlled corporation | 900,000,000 | 75.0% | - The **900,000,000 shares** are held by Silver Esteem Limited, a company wholly owned by Mr. Choi Wai Chun, who is deemed to have an interest in all these shares[112](index=112&type=chunk) [Long Positions in Shares of Associated Corporations](index=29&type=section&id=Long%20Positions%20in%20Shares%20of%20Associated%20Corporations) This section shows Mr. Choi Wai Chun's 100% beneficial ownership in Silver Esteem Limited Directors' Long Positions in Shares of Associated Corporations (As at June 30, 2025) | Director's Name | Name of Associated Corporation | Capacity | Number of Ordinary Shares | Percentage of Shareholding | | :--- | :--- | :--- | :--- | :--- | | Mr. Choi Wai Chun | Silver Esteem Limited | Beneficial owner | 1 | 100.0% | [Substantial Shareholders' and Other Persons' Interests and Short Positions in the Shares, Underlying Shares and Debentures of the Company](index=30&type=section&id=Substantial%20Shareholders'%20and%20Other%20Persons'%20Interests%20and%20Short%20Positions%20in%20the%20Shares,%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company) This section discloses the long positions of substantial shareholders and other persons in the company's shares [Long Positions in Shares](index=30&type=section&id=Long%20Positions%20in%20Shares) This section details the long positions of Silver Esteem Limited and Ms. Wong Pui King Substantial Shareholders' Long Positions in Shares (As at June 30, 2025) | Shareholder Name/Name | Capacity | Number of Ordinary Shares | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Silver Esteem Limited | Beneficial owner | 900,000,000 | 75.0% | | Ms. Wong Pui King | Interest of spouse | 900,000,000 | 75.0% | - Silver Esteem Limited is wholly owned by Mr. Choi Wai Chun, and Ms. Wong Pui King, being the spouse of Mr. Choi Wai Chun, is deemed to have an interest in all shares held by Mr. Choi Wai Chun[117](index=117&type=chunk) [Share Option Scheme](index=30&type=section&id=Share%20Option%20Scheme) This section mentions the adoption of a share option scheme but confirms no options were granted, exercised, or lapsed during the period - The Company adopted a share option scheme on **September 3, 2019**[115](index=115&type=chunk) - For the six months ended June 30, 2025, and up to the date of this report, no share options were granted, agreed to be granted, exercised, cancelled, forfeited, or lapsed under the scheme[115](index=115&type=chunk) [Standard of Dealings in Securities by Directors](index=30&type=section&id=Standard%20of%20Dealings%20in%20Securities%20by%20Directors) This section states the company's adoption of the required standard for directors' securities dealings and confirms compliance - The Group has adopted the required standard of dealings set out in Rules 5.48 to 5.67 of the GEM Listing Rules as the code of conduct for Directors' dealings in securities of the Company[116](index=116&type=chunk) - Following specific enquiries made to all Directors, all Directors confirmed that they have complied with the required standard of dealings and the code of conduct for Directors' dealings in securities for the six months ended June 30, 2025, and up to the date of this report[116](index=116&type=chunk) [Events After the Reporting Period](index=31&type=section&id=Events%20After%20the%20Reporting%20Period) This section confirms no significant disclosable events occurred after the reporting period - No significant disclosable events occurred after June 30, 2025, and up to the date of this report[118](index=118&type=chunk) [Audit Committee](index=31&type=section&id=Audit%20Committee) This section describes the composition and responsibilities of the Audit Committee, confirming its review of the interim financial statements - The Audit Committee comprises three independent non-executive Directors: Mr. Wu Chung Ming (Chairman), Mr. So Siu Kei, and Mr. Sze Lik Tao[119](index=119&type=chunk) - The primary responsibilities of the Audit Committee are to provide recommendations to the Board on the appointment, re-appointment, and removal of external auditors; review the Company's financial statements and judgments related to financial reporting; and oversee the effectiveness of the Group's internal control procedures[119](index=119&type=chunk) - The Audit Committee has reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2025, and is of the opinion that they were prepared in accordance with applicable accounting standards, the GEM Listing Rules, and contain sufficient disclosures[119](index=119&type=chunk) [By Order of the Board](index=31&type=section&id=By%20Order%20of%20the%20Board) This section states the report's issuance by the Chairman, CEO, and Executive Director on behalf of the Board - This report was issued by Mr. Choi Wai Chun, Chairman, Chief Executive Officer, and Executive Director of Ying Hai Group Holdings Company Limited, in Hong Kong, on **August 21, 2025**[120](index=120&type=chunk)

Announcement Overview [Announcement Overview](index=1&type=section&id=Announcement%20Header) This announcement presents Binjiang Service Group Co. Ltd.'s unaudited consolidated interim results for the six months ended June 30, 2025, reviewed by the Audit Committee and approved by the Board, with an unmodified review report from KPMG - Binjiang Service Group Co. Ltd. (Stock Code: 3316) announced its unaudited consolidated interim results for the six months ended June 30, 2025[2](index=2&type=chunk)[3](index=3&type=chunk) - The interim results were reviewed by the Company's Audit Committee and approved by the Board on August 21, 2025[3](index=3&type=chunk) - The interim financial information was reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants, resulting in an unmodified review report[3](index=3&type=chunk) Financial Highlights [Financial Highlights](index=2&type=section&id=%E6%91%98%E8%A6%81) During the reporting period, Binjiang Service Group's revenue increased by **22.7%** year-on-year to **RMB 2.025 billion**, driven by significant growth in property management and 5S value-added services, despite a decrease in gross profit margin Key Financial and Operating Indicators for the Six Months Ended June 30, 2025 | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 2,025,041 | 1,650,407 | 22.7% | | - Property Management Services | 1,158,370 | 905,335 | 27.9% | | - Value-Added Services to Non-Property Owners | 214,129 | 250,748 | -14.6% | | - 5S Value-Added Services | 652,542 | 494,324 | 32.0% | | Gross Profit | 455,076 | 421,745 | 7.9% | | Gross Profit Margin | 22.5% | 25.6% | | | Profit for the Period | 305,562 | 272,347 | 12.2% | | Profit for the Period Attributable to Equity Holders of the Company | 297,707 | 265,315 | 12.2% | | Net Profit Margin | 15.1% | 16.5% | | | Net Cash Generated from Operating Activities | 398,947 | 171,070 | 133.2% | | Earnings Per Share (RMB) | 1.08 | 0.96 | 12.5% | | GFA Under Management ('000 sq.m.) | 75,083 | 63,119 | 19.0% | | Contracted GFA ('000 sq.m.) | 96,355 | 89,996 | 7.1% | - The Board resolved to declare an interim dividend of **HKD 0.826 per share** for the six months ended June 30, 2025, with a payout ratio of approximately **70%** of net profit attributable to equity holders of the Company[4](index=4&type=chunk) Consolidated Statement of Profit or Loss and Other Comprehensive Income [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&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%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the Group's revenue grew to **RMB 2.025 billion**, with gross profit reaching **RMB 455.08 million** and profit for the period at **RMB 305.56 million** Consolidated Statement of Profit or Loss and Other Comprehensive Income (for the six months ended June 30) | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 2,025,041 | 1,650,407 | | Cost of Sales | (1,569,965) | (1,228,662) | | Gross Profit | 455,076 | 421,745 | | Operating Profit | 378,378 | 350,668 | | Profit Before Tax | 414,239 | 391,681 | | Income Tax | (108,677) | (119,334) | | Profit for the Period | 305,562 | 272,347 | | Profit for the Period Attributable to Equity Holders of the Company | 297,707 | 265,315 | | Profit for the Period Attributable to Non-controlling Interests | 7,855 | 7,032 | | Total Comprehensive Income for the Period | 293,182 | 263,941 | | Basic and Diluted Earnings Per Share (RMB) | 1.08 | 0.96 | Consolidated Statement of Financial Position [Consolidated Statement of Financial Position](index=5&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 less current liabilities amounted to **RMB 1.694 billion**, with net assets of **RMB 1.662 billion**, driven by significant increases in current assets Consolidated Statement of Financial Position (as of June 30, 2025) | Indicator | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 47,296 | 43,405 | | Time Deposits | 429,104 | 1,081,425 | | **Current Assets** | | | | Inventories | 317,795 | 290,053 | | Trade and Other Receivables | 857,887 | 590,221 | | Financial Assets at Fair Value Through Profit or Loss | 501,716 | 301,623 | | Time Deposits | 1,515,511 | 941,074 | | Cash and Cash Equivalents | 1,180,831 | 890,658 | | **Current Liabilities** | | | | Contract Liabilities | 1,840,012 | 1,555,366 | | Trade and Other Payables | 1,152,441 | 1,008,995 | | Dividends Payable | 221,818 | — | | Net Current Assets | 1,157,793 | 429,407 | | Total Assets Less Current Liabilities | 1,694,429 | 1,606,056 | | Net Assets | 1,661,960 | 1,591,874 | | Total Equity Attributable to Equity Holders of the Company | 1,593,034 | 1,528,960 | Notes [Notes](index=7&type=section&id=%E9%99%84%E8%A8%BB) This section details the basis of preparation for interim financial information, adherence to HKEX Listing Rules and IAS 34, and disclosures on revenue, segment reporting, other income/expenses, income tax, EPS, and receivables/payables [1.1 Basis of Preparation](index=7&type=section&id=1%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The interim financial information is prepared in accordance with HKEX Listing Rules and IAS 34 "Interim Financial Reporting," adopting the same accounting policies as the 2024 annual financial statements - The interim financial information is prepared in accordance with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and in compliance with International Accounting Standard 34 "Interim Financial Reporting"[11](index=11&type=chunk) - The Company was incorporated in the Cayman Islands on July 6, 2017, and its shares were listed on the Main Board of the Hong Kong Stock Exchange on March 15, 2019[11](index=11&type=chunk) - The interim financial information is prepared on the basis of the same accounting policies adopted in the 2024 annual financial statements, except for changes in accounting policies expected to be reflected in the 2025 annual financial statements[11](index=11&type=chunk) [1.2 Changes in Accounting Policies](index=8&type=section&id=2%20%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E8%AE%8A%E5%8B%95) The Group has applied amendments to IAS 21 "The Effects of Changes in Foreign Exchange Rates—Lack of Exchangeability," which had no material impact on the interim financial information as the Group has no transactions involving non-exchangeable foreign currencies - The Group has applied the amendments to International Accounting Standard 21 "The Effects of Changes in Foreign Exchange Rates—Lack of Exchangeability," which had no material impact on the interim financial information[12](index=12&type=chunk) - The Group did not enter into any foreign currency transactions involving currencies that are not exchangeable into other currencies[12](index=12&type=chunk) - The Group has not applied any new standards or interpretations that are not yet effective for the current accounting period[13](index=13&type=chunk) [1.3 Revenue and Segment Reporting](index=8&type=section&id=3%20%E6%94%B6%E5%85%A5%E5%8F%8A%E5%88%86%E9%83%A8%E5%A0%B1%E5%91%8A) The Group's revenue primarily stems from property management, value-added services to non-property owners, and 5S value-added services, with property management and 5S services showing significant growth, while non-property owner services declined [1.3.1 Revenue Composition](index=9&type=section&id=3(a)%20%E6%94%B6%E5%85%A5) The Group's revenue is primarily derived from property management services, value-added services to non-property owners, and 5S value-added services, totaling **RMB 2.025 billion** for the six months ended June 30, 2025 - The Group's principal businesses are property management services, value-added services to non-property owners, and 5S value-added services[14](index=14&type=chunk) Revenue from Contracts with Customers (for the six months ended June 30) | Revenue Source | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Property Management Services | 1,158,370 | 905,335 | | Value-Added Services to Non-Property Owners | 214,129 | 250,748 | | 5S Value-Added Services (recognized over time) | 592,355 | 439,423 | | 5S Value-Added Services (recognized at a point in time) | 60,187 | 54,901 | | **Total** | **2,025,041** | **1,650,407** | [1.3.2 Segment Reporting](index=10&type=section&id=3(b)%20%E5%88%86%E9%83%A8%E5%A0%B1%E5%91%8A) The Group manages its business across three operating segments: property management, value-added services to non-property owners, and 5S value-added services, with gross profit as the key performance indicator - The Group manages its business across three operating and reportable segments: property management services, value-added services to non-property owners, and 5S value-added services[17](index=17&type=chunk)[18](index=18&type=chunk) - Segment results represent the profit earned by each segment (before unallocated central corporate expenses), with gross profit used as the measure for reporting segment performance[17](index=17&type=chunk) Revenue and Gross Profit by Operating Segment (for the six months ended June 30) | Segment | 2025 Revenue (RMB '000) | 2025 Gross Profit (RMB '000) | 2024 Revenue (RMB '000) | 2024 Gross Profit (RMB '000) | | :--- | :--- | :--- | :--- | :--- | | Property Management Services | 1,158,370 | 210,413 | 905,335 | 178,432 | | Value-Added Services to Non-Property Owners | 214,129 | 74,219 | 250,748 | 107,771 | | 5S Value-Added Services | 652,542 | 170,444 | 494,324 | 135,542 | | **Total** | **2,025,041** | **455,076** | **1,650,407** | **421,745** | - All of the Group's revenue is derived from businesses and customers located in China, and almost all of the carrying value of non-current assets is located in China[19](index=19&type=chunk) [1.4 Other Income and Expenses](index=12&type=section&id=4%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%EF%BC%8F%EF%BC%88%E虧%E6%90%8D%EF%BC%89%E6%B7%A8%E9%A1%8D) This section details the Group's other income, net gains/losses, net finance income, staff costs, and other expense items, showing increases in government grants and net gains, but decreases in net finance income [1.4.1 Other Income and Net Gains/(Losses)](index=12&type=section&id=4%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%EF%BC%8F%EF%BC%88%E虧%E6%90%8D%EF%BC%89%E6%B7%A8%E9%A1%8D) For the six months ended June 30, 2025, the Group's other income increased to **RMB 5.579 million**, primarily from government grants, and net gains reached **RMB 2.985 million**, driven by realized and unrealized gains from financial assets at fair value through profit or loss Other Income (for the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Government Grants | 2,901 | 1,732 | | Others | 2,678 | 1,023 | | **Total** | **5,579** | **2,755** | Net Gains/(Losses) (for the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Net Loss on Disposal of Property, Plant and Equipment | (155) | (131) | | Net Realized and Unrealized Gains from Financial Assets at Fair Value Through Profit or Loss | 3,140 | 104 | | **Total** | **2,985** | **(27)** | [1.4.2 Composition of Profit Before Tax](index=12&type=section&id=5%20%E9%99%A4%E7%A8%85%E5%89%8D%E5%88%A9%E6%BD%A4) Profit before tax is influenced by net finance income, staff costs, and depreciation, with net finance income decreasing due to lower bank interest rates, while staff costs and depreciation increased with business expansion Net Finance Income (for the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Interest Income from Bank Deposits | (35,440) | (40,530) | | Interest on Lease Liabilities | 65 | 62 | | **Net Finance Income** | **(35,375)** | **(40,468)** | Staff Costs (for the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Salaries and Other Benefits | 644,914 | 515,504 | | Contributions to Defined Contribution Plans | 58,282 | 42,913 | | **Total** | **703,196** | **558,417** | Other Expense Items (for the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Depreciation — Property, Plant and Equipment | 8,594 | 6,987 | | Depreciation — Right-of-use Assets | 1,065 | 898 | | Expenses Relating to Short-term Leases | 8,916 | 7,711 | | Cost of Inventories | 26,721 | 22,417 | [1.4.3 Income Tax](index=14&type=section&id=6%20%E6%89%80%E5%BE%97%E7%A8%85) The Group's total income tax amounted to **RMB 108.68 million**, a decrease from the prior period, with PRC subsidiaries subject to a 25% tax rate, and some enjoying preferential rates Income Tax (for the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Current tax - PRC enterprise income tax | 99,812 | 105,116 | | Current tax - (Over)/under provision in prior years | (1,342) | 1,803 | | Deferred tax - Origination and reversal of temporary differences | (7,993) | (1,085) | | Deferred tax - Withholding tax on profits of PRC subsidiaries | 18,200 | 13,500 | | **Total** | **108,677** | **119,334** | - The Group's PRC subsidiaries are subject to PRC income tax at a rate of **25%**, with some small profit enterprises enjoying preferential tax rates[32](index=32&type=chunk) - Eligible Hong Kong subsidiaries are subject to a **5%** withholding tax rate on dividends received from PRC subsidiaries starting from 2023[33](index=33&type=chunk) - As of June 30, 2025, a deferred tax liability of **RMB 31.3 million** was recognized for the **5%** PRC withholding tax on distributable retained profits of PRC subsidiaries[33](index=33&type=chunk) [1.4.4 Earnings Per Share](index=15&type=section&id=7%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) For the six months ended June 30, 2025, basic and diluted earnings per share increased to **RMB 1.08** from **RMB 0.96** in the prior period, with diluted EPS equaling basic EPS due to no dilutive potential ordinary shares outstanding - Basic and diluted earnings per share are calculated based on profit attributable to equity holders of the Company of **RMB 297,707,000** and the weighted average number of ordinary shares in issue of **276,407,000** during the period[34](index=34&type=chunk) Earnings Per Share (for the six months ended June 30) | Indicator | 2025 (RMB) | 2024 (RMB) | | :--- | :--- | :--- | | Basic and Diluted Earnings Per Share | 1.08 | 0.96 | - As there were no dilutive potential ordinary shares outstanding for the six months ended June 30, 2025 and 2024, diluted earnings per share are equal to basic earnings per share[34](index=34&type=chunk) [1.5 Trade and Other Receivables and Liabilities](index=16&type=section&id=8%20%E8%B2%A8%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) This section details the Group's trade and other receivables, contract liabilities, and trade and other payables, all of which increased due to business expansion, with higher impairment losses on trade receivables due to stricter bad debt policies [1.5.1 Trade and Other Receivables](index=16&type=section&id=8%20%E8%B2%A8%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade and other receivables increased by **45.4%** to **RMB 857.89 million**, primarily due to business growth, with impairment provisions for trade receivables rising due to stricter bad debt policies for some third-party developers Trade and Other Receivables (as of June 30, 2025) | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade receivables (net of impairment allowance) | 624,822 | 343,938 | | Other receivables from related parties | 1,818 | 1,802 | | Deposits and prepayments | 119,654 | 137,134 | | Payments on behalf of property owners | 69,855 | 57,450 | | Advances to employees | 7,886 | 4,549 | | Other receivables | 33,852 | 45,348 | | **Total** | **857,887** | **590,221** | - Trade receivables are primarily related to revenue recognized from providing property management services, value-added services to non-property owners, and home decoration services[35](index=35&type=chunk) Ageing Analysis of Trade Receivables (as of June 30, 2025) | Ageing | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 1 year | 589,270 | 304,799 | | 1 to 2 years | 35,552 | 39,139 | | **Total** | **624,822** | **343,938** | [1.5.2 Contract Liabilities](index=17&type=section&id=9%20%E5%90%88%E7%B4%84%E8%B2%A0%E5%82%B5) As of June 30, 2025, contract liabilities increased by **18.3%** to **RMB 1.840 billion**, primarily due to an increase in the number of projects and prepaid property management fees Contract Liabilities (as of June 30, 2025) | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Property Management Services | 576,000 | 264,851 | | Value-Added Services to Non-Property Owners | 3,263 | 826 | | 5S Value-Added Services | 1,260,749 | 1,289,689 | | **Total** | **1,840,012** | **1,555,366** | - The increase in contract liabilities is mainly due to an increase in the number of projects and prepaid property management fees by **RMB 311.1 million**[85](index=85&type=chunk) [1.5.3 Trade and Other Payables](index=18&type=section&id=10%20%E8%B2%A8%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, total trade and other payables increased by **14.2%** to **RMB 1.152 billion**, primarily driven by business expansion Trade and Other Payables (as of June 30, 2025) | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade payables | 405,330 | 275,054 | | Other payables to related parties | 35,086 | 41,901 | | Refundable deposits | 94,635 | 76,279 | | Other tax and levies payable | 101,092 | 93,322 | | Accrued salaries and other benefits | 215,848 | 248,221 | | Cash collected on behalf of owners' committees | 63,728 | 61,503 | | Temporary receipts from property owners/purchasers | 169,536 | 148,039 | | Other payables and accrued charges | 67,186 | 64,676 | | **Total** | **1,152,441** | **1,008,995** | Ageing Analysis of Trade Payables (as of June 30, 2025) | Ageing | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 3 months | 163,784 | 97,552 | | After 3 months but within 1 year | 155,966 | 167,033 | | Over 1 year | 85,580 | 10,469 | | **Total** | **405,330** | **275,054** | [1.6 Dividends](index=19&type=section&id=11%20%E8%82%A1%E6%81%AF) The Board resolved to declare an interim dividend of **HKD 0.826 per share** for the six months ended June 30, 2025, representing a payout ratio of approximately **70%** - The Board proposed an interim dividend of **HKD 0.826 per share** for the six months ended June 30, 2025 (2024: HKD 0.630 per share)[40](index=40&type=chunk) - The payout ratio of net profit attributable to equity holders of the Company is approximately **70%**, with the total interim dividend amounting to approximately **HKD 228.3 million**[101](index=101&type=chunk) - For the six months ended June 30, 2025, the final dividend of **HKD 0.876 per share** for the year ended December 31, 2024, totaling approximately **RMB 221.8 million**, was approved[41](index=41&type=chunk) Chairman's Statement [Chairman's Statement](index=21&type=section&id=%E4%B8%BB%E5%B8%AD%E5%A0%B1%E5%91%8A) The Chairman's Statement reviews the Group's H1 2025 performance and strategic focus, highlighting quality expansion in Hangzhou and the Yangtze River Delta, high renewal rates for property management services, and significant growth in 5S value-added services [2.1 Quality Expansion, Strengthening Brand Moat](index=21&type=section&id=%E6%9C%89%E8%B3%AA%E6%93%B4%E5%BC%B5%EF%BC%8C%E5%8A%A0%E5%9B%BA%E5%93%81%E7%89%8C%E8%AD%B7%E5%9F%8E%E6%B2%B3) The Group achieved high-quality expansion in property services through a "regional deep cultivation + brand expansion" strategy, with **100% renewal rates** for mature projects and a **14.1% average increase** in property fees for 10 projects - In H1 2025, mature projects like Wulin No. 1 and Xianghu No. 1 achieved **100% renewal rates**, and 10 projects saw an average property fee increase of **14.1%** through service upgrades[43](index=43&type=chunk) - As of the end of the reporting period, GFA under management from independent third parties accounted for **55.5%**, with third-party revenue contribution increasing by **26.8%** year-on-year[43](index=43&type=chunk) - As of June 30, 2025, the Group's GFA under management in Hangzhou accounted for approximately **63.6%** of total GFA under management, reaching **75.1 million sq.m.**, a year-on-year increase of **19.0%**[44](index=44&type=chunk) - Hangzhou's GFA under management contributed **RMB 818.1 million** in revenue, accounting for **70.6%** of total property management revenue[44](index=44&type=chunk) [2.2 Reputation First, Activating Value-Added Services Ecosystem](index=22&type=section&id=%E5%8F%A3%E7%A2%91%E8%87%B3%E4%B8%8A%EF%BC%8C%E6%BF%80%E6%B4%BB%E5%A2%9E%E5%80%BC%E6%9C%8D%E5%8B%99%E7%94%A2%E6%A5%AD%E7%94%9F%E6%85%8B) The Group's 5S value-added services revenue grew by **32.0%** year-on-year to **RMB 652.5 million**, with significant increases in Youjia brokerage signing amounts and Youju services hard decoration and soft decoration revenue - In H1 2025, the Group's 5S value-added services system achieved revenue of **RMB 652.5 million**, a year-on-year increase of **32.0%**[45](index=45&type=chunk) - Youjia second-hand home brokerage signing amount was approximately **RMB 853 million**, with signing amount and number of transactions increasing by **20.1%** and **102.0%** year-on-year, respectively[45](index=45&type=chunk) - Youju services hard decoration business revenue increased by **34.4%** year-on-year; soft decoration revenue increased by **502.8%** year-on-year[45](index=45&type=chunk) - Youxiang Life Services' revenue growth rate reached **41.8%** in H1 2025, surpassing property services GFA and revenue growth indicators for the first time[46](index=46&type=chunk) [2.3 Embracing Innovation, Building Efficient Organizational Management](index=23&type=section&id=%E6%93%81%E6%8A%B1%E9%9D%A9%E6%96%B0%EF%BC%8C%E6%89%93%E9%80%A0%E9%AB%98%E6%95%88%E7%B5%84%E7%B9%94%E7%AE%A1%E7%90%86) The Group significantly improved management efficiency through organizational flattening, talent strengthening, and intelligent empowerment, reducing the management expense ratio to **2.3%** - In H1 2025, the Group's management expense ratio decreased to **2.3%**, a year-on-year decrease of **0.7 percentage points**[47](index=47&type=chunk) - The Group continued to advance organizational flattening reforms, compressing management levels and decentralizing management decisions to achieve precise cost control and efficient communication[47](index=47&type=chunk) - The Group independently developed a systematic training system, building a full-cycle talent development chain to strengthen team capabilities[47](index=47&type=chunk) - The Group positions "AI intelligent empowerment" as a key engine for management upgrades, increasing investment in information system construction and launching multiple digital tools[48](index=48&type=chunk) [2.4 Starting from the Heart, Building Harmonious Communities](index=24&type=section&id=%E5%從%E5%BF%83%E5%87%BA%E7%99%BC%EF%BC%8C%E6%A7%8B%E5%BB%BA%E5%92%8C%E8%AB%A7%E5%85%B1%E8%9E%8D%E7%A4%BE%E5%8D%80) The Group is committed to fostering harmonious communities through "Ginkgo Services" for the elderly, family activities like "I Am a Little Swimmer," and multi-age convenience services, earning numerous national and provincial honors for service excellence - The Group launched the "Ginkgo Services" program to accompany the elderly, offering regular visits, health care, and interest activities[49](index=49&type=chunk) - The Group has continuously held the "I Am a Little Swimmer" swimming competition for 13 years and innovatively launched family activities such as the "Binjiang Tide Carnival"[49](index=49&type=chunk) - In H1 2025, the Group received multiple honors, including "National Smart Park Pilot" and "Zhejiang Province High-Standard Domestic Waste Classification Demonstration Community"[49](index=49&type=chunk) Management Discussion and Analysis [Management Discussion and Analysis](index=25&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) This section details the Group's H1 2025 business review, model, future strategies, and financial performance, highlighting steady expansion in the Yangtze River Delta, increased revenue and gross profit, but a slight decline in gross profit margin due to reduced high-margin non-property owner value-added services [3.1 Business Review](index=25&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) In H1 2025, the Group maintained steady growth, expanding to **21 cities** in the Yangtze River Delta, serving over **340,000 property owners**, with GFA under management increasing by **19.0%** to **75.1 million sq.m.** and total revenue growing by **22.7%** to **RMB 2.025 billion** - As of June 30, 2025, the Group's GFA under management was approximately **75.1 million sq.m.**, a year-on-year increase of **19.0%**; contracted GFA was approximately **96.4 million sq.m.**, a year-on-year increase of **7.1%**[50](index=50&type=chunk) - As of June 30, 2025, the Group's revenue increased by **22.7%** to **RMB 2.025 billion**; gross profit was **RMB 455.1 million**, an increase of **7.9%** from the same period in 2024; gross profit margin was **22.5%**, a decrease of **3.1 percentage points** from the same period in 2024[51](index=51&type=chunk) - In H1 2025, high-quality services led to property management fee adjustments in **10 projects**, solidifying the brand's competitive advantage[51](index=51&type=chunk) - Binjiang Group's total sales amounted to **RMB 52.75 billion** in H1 2025, ranking **10th** among national real estate developers by CRIC, continuously supplying a large number of high-quality projects to the Group[52](index=52&type=chunk) [3.2 The Group's Business Model](index=26&type=section&id=%E6%9C%AC%E9%9B%86%E5%9C%98%E7%9A%84%E6%A5%AD%E5%8B%99%E6%A8%A1%E5%BC%8F) The Group's business model encompasses property management, value-added services to non-property owners, and 5S value-added services, forming a comprehensive service range covering the entire property management value chain, with residential properties and Hangzhou being key revenue drivers - The Group's management divides its business segments into property management services, value-added services to non-property owners, and 5S value-added services, forming a comprehensive service scope covering the entire property management value chain[54](index=54&type=chunk) - Property management services include security, cleaning, gardening, repair, maintenance, and ancillary services; value-added services to non-property owners include pre-delivery services, consultancy services, and community space services; 5S value-added services include Youjia services, Youju services, and Youxiang Life services[56](index=56&type=chunk)[57](index=57&type=chunk) Changes in Contracted GFA and GFA Under Management (for the six months ended June 30) | Indicator | 2025 Contracted GFA ('000 sq.m.) | 2025 GFA Under Management ('000 sq.m.) | 2024 Contracted GFA ('000 sq.m.) | 2024 GFA Under Management ('000 sq.m.) | | :--- | :--- | :--- | :--- | :--- | | At beginning of period | 92,866 | 67,945 | 82,168 | 54,847 | | Additions | 4,179 | 7,664 | 9,046 | 9,199 | | Terminations | (690) | (526) | (1,218) | (927) | | **At end of period** | **96,355** | **75,083** | **89,996** | **63,119** | Details of Property Management Services Revenue, GFA Under Management and Number of Projects (by Property Type, for the six months ended June 30) | Property Type | 2025 Revenue (RMB '000) | 2025 GFA Under Management ('000 sq.m.) | 2025 Number of Projects | 2024 Revenue (RMB '000) | 2024 GFA Under Management ('000 sq.m.) | 2024 Number of Projects | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Residential | 914,866 | 64,238 | 360 | 689,428 | 51,589 | 287 | | Non-residential | 241,858 | 10,846 | 110 | 212,829 | 11,530 | 111 | | Land Management | 1,646 | — | — | 3,078 | — | — | | **Total** | **1,158,370** | **75,083** | **470** | **905,335** | **63,119** | **398** | Details of Property Management Services Revenue, GFA Under Management and Number of Projects (by Developer Type, for the six months ended June 30) | Developer Type | 2025 Revenue (RMB '000) | 2025 GFA Under Management ('000 sq.m.) | 2025 Number of Projects | 2024 Revenue (RMB '000) | 2024 GFA Under Management ('000 sq.m.) | 2024 Number of Projects | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Properties developed by Binjiang Group | 582,325 | 33,416 | 201 | 449,162 | 26,729 | 160 | | Properties developed by independent property developers | 574,399 | 41,667 | 269 | 453,095 | 36,390 | 238 | | Land Management | 1,646 | — | — | 3,078 | — | — | | **Total** | **1,158,370** | **75,083** | **470** | **905,335** | **63,119** | **398** | Details of Property Management Services Revenue, GFA Under Management and Number of Projects (by Region, for the six months ended June 30) | Region | 2025 Revenue (RMB '000) | 2025 GFA Under Management ('000 sq.m.) | 2025 Number of Projects | 2024 Revenue (RMB '000) | 2024 GFA Under Management ('000 sq.m.) | 2024 Number of Projects | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Hangzhou | 818,125 | 47,746 | 323 | 642,761 | 40,174 | 271 | | Zhejiang Province (excluding Hangzhou) | 305,190 | 24,944 | 130 | 234,246 | 21,151 | 116 | | Outside Zhejiang Province | 35,055 | 2,393 | 17 | 28,328 | 1,794 | 11 | | **Total** | **1,158,370** | **75,083** | **470** | **905,335** | **63,119** | **398** | [3.3 Future Development Strategies](index=30&type=section&id=%E6%8C%81%E7%BA%8C%E6%8E%A8%E9%80%B2%E5%93%81%E8%B3%AA%E5%93%81%E7%89%8C%E5%BB%BA%E8%A8%AD) The Group aims to be a brand leader in the property industry by enhancing quality and customer service, expanding its market share in the Yangtze River Delta, East China, and Greater Bay Area, and leveraging AI technology to optimize management and operations - The Group will continue to strengthen its brand responsibility, striving to become a brand leader and a standard-setter for high-end service quality in the property industry[61](index=61&type=chunk) - Future plans include continuously expanding brand influence, deeply cultivating the Yangtze River Delta, radiating across East China, exploring the Greater Bay Area, and focusing on China's central and western regions[62](index=62&type=chunk) - Value-added services will focus on building a 5S-centric service system, aiming to become a trusted manager and maintainer of clients' property assets[63](index=63&type=chunk) - The Group will leverage Artificial Intelligence (AI) technology to progressively implement intelligent patrols and energy saving, automated upgrades of public areas, and personalized in-home robot services, creating a new paradigm for high-end smart property management[64](index=64&type=chunk) - The Group will continue to enhance its corporate management level, continuously improve internal controls and risk management, and strengthen corporate culture development[65](index=65&type=chunk) [3.4 Financial Review](index=32&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) This section reviews the Group's H1 2025 financial performance, noting a **22.7%** increase in total revenue driven by property management and 5S value-added services, a **7.9%** increase in gross profit, but a decline in gross profit margin due to reduced high-margin non-property owner services [3.4.1 Revenue Analysis](index=32&type=section&id=%E6%94%B6%E5%85%A5%E5%88%86%E6%9E%90) Total revenue increased by **22.7%** year-on-year to **RMB 2.025 billion**, with property management services revenue growing by **27.9%** to **RMB 1.158 billion** and 5S value-added services revenue increasing by **32.0%** to **RMB 652.5 million** Revenue Composition and YoY Change (for the six months ended June 30) | Business Segment | 2025 (RMB '000) | % of Total Revenue (2025) | 2024 (RMB '000) | % of Total Revenue (2024) | YoY Change % | | :--- | :--- | :--- | :--- | :--- | :--- | | Property Management Services | 1,158,370 | 57.2 | 905,335 | 54.9 | 27.9 | | - Residential Property Management Services | 914,866 | 45.2 | 689,428 | 41.8 | 32.7 | | - Non-residential Property Management Services | 241,858 | 11.9 | 212,829 | 12.9 | 13.6 | | - Land Management | 1,646 | 0.1 | 3,078 | 0.2 | -46.5 | | Value-Added Services to Non-Property Owners | 214,129 | 10.6 | 250,748 | 15.2 | -14.6 | | - Pre-delivery Services | 200,666 | 9.9 | 228,951 | 13.9 | -12.4 | | - Consultancy Services | 8,121 | 0.4 | 11,254 | 0.7 | -27.8 | | - Community Space Services | 5,342 | 0.3 | 10,543 | 0.6 | -49.3 | | 5S Value-Added Services | 652,542 | 32.2 | 494,324 | 29.9 | 32.0 | | - Youjia Services | 47,932 | 2.4 | 52,868 | 3.2 | -9.3 | | - Youju Services | 573,788 | 28.3 | 419,718 | 25.4 | 36.7 | | - Youxiang Life Services | 30,822 | 1.5 | 21,738 | 1.3 | 41.8 | | **Total** | **2,025,041** | **100.0** | **1,650,407** | **100.0** | **22.7** | - The decrease in revenue from value-added services to non-property owners was primarily due to Binjiang Group, a key partner, acquiring more high-end project land plots in H1 2025, leading to extended design and planning cycles and delayed contract signings, resulting in a reduction in business volume for these services[68](index=68&type=chunk) - Among 5S value-added services, Youju services revenue increased by **36.7%** to **RMB 573.8 million**, mainly due to continuous business scale growth[69](index=69&type=chunk) [3.4.2 Gross Profit and Gross Profit Margin Analysis](index=34&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87%E5%88%86%E6%9E%90) Total gross profit increased by **7.9%** to **RMB 455.1 million**, but the overall gross profit margin decreased by **3.1 percentage points** to **22.5%**, primarily due to a reduction in the volume of higher-margin value-added services to non-property owners - The Group's gross profit increased by **7.9%** from **RMB 421.7 million** to **RMB 455.1 million**; the gross profit margin decreased by **3.1 percentage points** from **25.6%** to **22.5%**, mainly due to a reduction in the volume of higher-margin value-added services to non-property owners[70](index=70&type=chunk) Gross Profit and Gross Profit Margin (for the six months ended June 30) | Business Segment | 2025 Gross Profit (RMB '000) | 2025 Gross Profit Margin % | 2024 Gross Profit (RMB '000) | 2024 Gross Profit Margin % | | :--- | :--- | :--- | :--- | :--- | | Property Management Services | 210,413 | 18.2 | 178,432 | 19.7 | | Value-Added Services to Non-Property Owners | 74,219 | 34.7 | 107,771 | 43.0 | | 5S Value-Added Services | 170,444 | 26.1 | 135,542 | 27.4 | | **Total** | **455,076** | **22.5** | **421,745** | **25.6** | - The gross profit margin for value-added services to non-property owners decreased by **8.3 percentage points** to **34.7%**, primarily impacted by the overall upstream real estate development industry[72](index=72&type=chunk) - The gross profit margin for 5S value-added services decreased by **1.3 percentage points** to **26.1%**, mainly due to the continuous increase in the proportion of hard decoration services within Youju services, which have relatively lower gross profit margins[73](index=73&type=chunk) [3.4.3 Expense Analysis](index=35&type=section&id=%E9%96%8B%E6%94%AF%E5%88%86%E6%9E%90) Cost of sales increased by **27.8%** to **RMB 1.570 billion** due to business growth, while administrative expenses decreased by **6.6%** to **RMB 46.6 million**, reflecting improved management efficiency; impairment losses on trade receivables significantly increased by **107.9%** to **RMB 26.4 million** due to stricter bad debt policies for some third-party developers - Cost of sales increased by **27.8%** to **RMB 1.570 billion**, primarily due to the growth in the Group's business scale[74](index=74&type=chunk) - Selling and marketing expenses increased by **5.6%** to **RMB 11.3 million**, primarily due to higher business development costs[75](index=75&type=chunk) - Administrative expenses decreased by **6.6%** to **RMB 46.6 million**, primarily due to the Group's efforts to enhance management efficiency, optimize management levels, and control management costs[76](index=76&type=chunk) - Impairment losses on trade receivables increased by **107.9%** to **RMB 26.4 million**, primarily due to the implementation of stricter bad debt provisioning policies for some third-party developers, considering their operational and financial conditions[77](index=77&type=chunk) [3.4.4 Net Finance Income and Share of Profits/Losses of Associates/Joint Ventures](index=36&type=section&id=%E8%9E%8D%E8%B3%87%E6%94%B6%E5%85%A5%E6%B7%A8%E9%A1%8D%E5%8F%8A%E8%81%AF%E7%87%9F%2F%E5%90%88%E7%87%9F%E5%85%AC%E5%8F%B8%E6%90%8D%E7%9B%8A) Net finance income decreased by **12.6%** to **RMB 35.4 million** due to lower bank interest rates, while the share of profits less losses from associates and joint ventures remained stable at **RMB 0.5 million** - Net finance income decreased by **12.6%** to **RMB 35.4 million**, primarily due to the overall decline in bank interest rates[78](index=78&type=chunk) - The share of profits less losses from associates and joint ventures amounted to a profit of **RMB 0.5 million**, remaining consistent with the prior period[79](index=79&type=chunk) [3.4.5 Profit Before Tax, Income Tax and Profit for the Period](index=36&type=section&id=%E7%A8%85%E5%89%8D%E5%88%A9%E6%BD%A4%E3%80%81%E6%89%80%E5%BE%97%E7%A8%85%E5%8F%8A%E6%9C%9F%E5%85%A7%E5%88%A9%E6%BD%A4) Profit before tax increased by **5.7%** to **RMB 414.2 million** due to higher operating gross profit, while income tax decreased by **8.9%** to **RMB 108.7 million** due to prior period withholding tax payments - Profit before tax was **RMB 414.2 million**, an increase of **5.7%** from the same period in 2024, primarily due to higher operating gross profit in the current reporting period[80](index=80&type=chunk) - Income tax was **RMB 108.7 million**, a decrease of **8.9%** from the same period in 2024, primarily due to withholding tax paid in the prior period[81](index=81&type=chunk) - Profit for the period was **RMB 305.6 million**, an increase of **12.2%** from the same period in 2024, primarily due to the Group's business volume growth[82](index=82&type=chunk) - Profit for the period attributable to equity holders of the Company was **RMB 297.7 million**, an increase of **12.2%** from the same period in 2024; net profit margin was **15.1%**, a decrease of **1.4 percentage points** from **16.5%** in the same period in 2024[82](index=82&type=chunk) [3.4.6 Current Assets, Financial Resources and Current Ratio](index=37&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E7%94%A2%E3%80%81%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90%E5%8F%8A%E6%B5%81%E5%8B%95%E6%AF%94%E7%8E%87) The Group maintained a strong financial position, with current assets increasing by **44.3%** to **RMB 4.448 billion** and cash and cash equivalents rising by **32.6%** to **RMB 1.181 billion**, primarily due to business growth - As of June 30, 2025, current assets amounted to **RMB 4.448 billion**, an increase of **44.3%** from December 31, 2024[83](index=83&type=chunk) - Cash and cash equivalents reached **RMB 1.181 billion** as of June 30, 2025, an increase of **32.6%** from December 31, 2024, primarily due to the growth in the Group's business scale[83](index=83&type=chunk) - The current ratio as of June 30, 2025, was **1.4**, largely consistent with **1.2** as of December 31, 2024[83](index=83&type=chunk) - As of June 30, 2025, the Group had no loans or borrowings[84](index=84&type=chunk) - Total equity was **RMB 1.662 billion**, an increase of **4.4%** from December 31, 2024, mainly due to business scale growth and increased operating profit[84](index=84&type=chunk) - Trade and other receivables increased by **45.4%** to **RMB 857.9 million**, and trade and other payables increased by **14.2%** to **RMB 1.152 billion**, both primarily due to business scale growth[90](index=90&type=chunk)[91](index=91&type=chunk) - Inventories increased by **9.5%** to **RMB 317.8 million**, primarily due to the Group's continuous acquisition of parking space usage rights assets, increasing inventory reserves for parking space sales business[87](index=87&type=chunk) [3.4.7 Human Resources](index=38&type=section&id=%E4%BA%BA%E5%8A%9B%E8%B3%87%E6%BA%90) As of June 30, 2025, the Group employed **15,091 staff**, with staff costs totaling **RMB 703.2 million**, offering competitive remuneration, social security, housing provident fund contributions, and systematic training programs - As of June 30, 2025, the Group employed a total of **15,091 staff** (December 31, 2024: 14,022 staff)[93](index=93&type=chunk) - During the reporting period, the Group's staff costs amounted to **RMB 703.2 million** (for the six months ended June 30, 2024: RMB 558.4 million)[93](index=93&type=chunk) - The Group determines staff remuneration based on their duties, qualifications, individual performance, and prevailing market standards, and provides social security funds and housing provident fund contributions[94](index=94&type=chunk) - The Group also provides employees with systematic and extensive training programs and promotion rotation plans[94](index=94&type=chunk) Other Information [Other Information](index=39&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) This section covers the Group's material investments, acquisitions/disposals, future investment plans, treasury policy, foreign exchange risk, interim dividend, corporate governance compliance, Audit Committee review, directors' securities dealing code, dealings in listed securities, and post-reporting period events [4.1 Material Investments and Acquisitions/Disposals](index=39&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) During the reporting period, the Company had no material investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures, and no plans for significant investments or capital asset purchases as of June 30, 2025 - The Company had no material investments (including material investments accounting for **5%** or more of the Group's total assets) during the reporting period[95](index=95&type=chunk) - During the reporting period, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[96](index=96&type=chunk) - As of June 30, 2025, the Group had no plans for material investments or purchases of capital assets[97](index=97&type=chunk) [4.2 Treasury Policy and Foreign Exchange Risk](index=39&type=section&id=%E5%BA%AB%E5%8B%99%E6%94%BF%E7%AD%96) The Group adopts a prudent financial management approach for its treasury policy, ensuring liquidity and investing surplus cash to generate interest income, with minimal foreign exchange risk as its primary functional currency is RMB - The Group adopts a prudent financial management approach for its treasury policy, ensuring liquidity needs for daily operations and capital expenditures are met[98](index=98&type=chunk) - The Group's primary functional currency and main operating currency is RMB, thus the Group considers its foreign exchange risk to be minimal[100](index=100&type=chunk) - Currently, the Group has not entered into any hedging agreements[100](index=100&type=chunk) [4.3 Interim Dividend](index=40&type=section&id=%E4%B8%AD%E6%9C%9F%E8%B2%A1%E6%81%AF) The Board resolved to declare an interim dividend of **HKD 0.826 per share** for the six months ended June 30, 2025, with a payout ratio of approximately **70%**, totaling approximately **HKD 228.3 million**, payable on September 19, 2025 - The Board resolved to declare an interim dividend of **HKD 0.826 per share** for the six months ended June 30, 2025, with a payout ratio of approximately **70%** of net profit attributable to equity holders of the Company, totaling approximately **HKD 228.3 million**[101](index=101&type=chunk) - The interim dividend is expected to be paid to shareholders on Friday, September 19, 2025[101](index=101&type=chunk) - To determine shareholders entitled to the interim dividend, the Company's share register will be closed from Friday, September 5, 2025, to Friday, September 12, 2025[102](index=102&type=chunk) - The record date for determining shareholders entitled to the interim dividend will be Friday, September 12, 2025[102](index=102&type=chunk) [4.4 Corporate Governance](index=41&type=section&id=%E9%BC%8E%E6%A5%AD%E7%AE%A1%E6%B2%BB) The Group is committed to high corporate governance standards, complying with Appendix C1 of the Listing Rules' Corporate Governance Code, with the Audit Committee reviewing interim results and directors confirming compliance with the standard code for securities transactions - The Company has adopted and complied with all applicable code provisions of the Corporate Governance Code in Appendix C1 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[103](index=103&type=chunk) - The roles of Chairman and Chief Executive Officer are both held by Mr. Yu Zhongxiang, which the Board believes facilitates consistent leadership and more efficient overall strategic planning within the Group[103](index=103&type=chunk) - The Audit Committee, comprising three independent non-executive directors, has reviewed the results for the reporting period, accounting policies, and financial statement matters[105](index=105&type=chunk) - All Directors have confirmed their compliance with the Model Code for Securities Transactions by Directors of Listed Issuers throughout the six months ended June 30, 2025[106](index=106&type=chunk) [4.5 Dealings in Listed Securities](index=42&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%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) During the six months ended June 30, 2025, neither the Company nor its subsidiaries repurchased, sold, or redeemed any of the Company's listed securities, and the Company held no treasury shares at the end of the reporting period - During the six months ended June 30, 2025, neither the Company nor any of its subsidiaries repurchased, sold, or redeemed any of the Company's listed securities[107](index=107&type=chunk) - As of the end of the reporting period, the Company held no treasury shares[107](index=107&type=chunk) [4.6 Events After Reporting Period](index=43&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) On August 21, 2025, the Board resolved to declare an interim dividend; no other material events requiring disclosure occurred after the reporting period up to the date of this announcement - On August 21, 2025, the Board resolved to declare an interim dividend[108](index=108&type=chunk) - Other than this, no other matters with a material impact on the Group occurred after the reporting period up to the date of this announcement that require disclosure[108](index=108&type=chunk)

[2025 Interim Results Financial Summary](index=1&type=section&id=2025%20Interim%20Results%20Financial%20Summary) [Condensed Consolidated Interim Income Statement](index=1&type=section&id=Condensed%20Consolidated%20Interim%20Income%20Statement) The company reported HKD 1.676 billion in revenue, a 13% decrease, with profit attributable to equity holders significantly down to HKD 1.675 million and basic EPS at HKD 0.006 Key Data from Condensed Consolidated Interim Income Statement | Metric | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 1,676,431 | 1,926,401 | -13.0% | | Gross Profit | 686,900 | 794,933 | -13.6% | | Operating Profit | 47,394 | 125,387 | -62.2% | | Profit for the Period | 3,546 | 63,903 | -94.5% | | Profit Attributable to Equity Holders of the Company | 1,675 | 62,532 | -97.3% | | Basic Earnings Per Share | HKD 0.006 | HKD 0.23 | -97.4% | [Condensed Consolidated Interim Statement of Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Comprehensive%20Income) Total comprehensive income for the period significantly increased to HKD 98.9 million, primarily driven by favorable exchange differences from overseas subsidiaries Key Data from Condensed Consolidated Interim Statement of Comprehensive Income | Metric | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Profit for the Period | 3,546 | 63,903 | -94.5% | | Exchange differences arising from translation of financial statements of overseas subsidiaries | 94,405 | (36,347) | Turned from loss to profit | | Total Comprehensive Income for the Period | 98,900 | 25,978 | +280.7% | | Total Comprehensive Income Attributable to Equity Holders of the Company | 97,029 | 24,607 | +294.3% | [Condensed Consolidated Interim Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Financial%20Position) Total assets less current liabilities reached HKD 2.061 billion, with net assets at HKD 1.307 billion, showing growth, while cash and bank balances decreased Key Data from Condensed Consolidated Interim Statement of Financial Position | Metric | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Total Assets Less Current Liabilities | 2,061,022 | 1,999,278 | +3.1% | | Net Assets | 1,306,873 | 1,255,923 | +4.1% | | Net Current Assets | 808,769 | 807,774 | +0.1% | | Cash and Bank Balances | 348,043 | 466,554 | -25.4% | [Notes to the Financial Statements](index=4&type=section&id=Notes%20to%20the%20Financial%20Statements) [1. Compliance Statement and Basis of Preparation](index=4&type=section&id=1.%20Compliance%20Statement%20and%20Basis%20of%20Preparation) Interim financial statements are prepared under HKEX Listing Rules and HKAS 34, using consistent accounting policies with the 2024 annual financial statements - Financial statements are prepared in compliance with the Listing Rules and Hong Kong Accounting Standard 34[7](index=7&type=chunk) - Accounting policies are consistent with the 2024 annual financial statements, except for changes detailed in Note 2[7](index=7&type=chunk) [2. Changes in Accounting Policies](index=4&type=section&id=2.%20Changes%20in%20Accounting%20Policies) The Group applied HKAS 21 amendments on foreign currency exchange rates, which had no significant impact, and no other new standards were applied - Amendments to Hong Kong Accounting Standard 21 were applied, but with no significant impact on the Group[8](index=8&type=chunk) - No new standards or interpretations not yet effective were applied in this accounting period[9](index=9&type=chunk) [3. Estimates](index=4&type=section&id=3.%20Estimates) Management's judgments, estimates, and assumptions in financial statement preparation may lead to actual results differing from reported amounts - Management is required to make judgments, estimates, and assumptions when preparing financial statements[10](index=10&type=chunk) - Actual results may differ from these estimates[10](index=10&type=chunk) [4. Segment Information](index=5&type=section&id=4.%20Segment%20Information) The Group operates in garment manufacturing and brand business segments, with performance assessed by profit or loss before tax, and revenue from key international markets - The Group has two reportable segments: garment manufacturing and brand business[11](index=11&type=chunk) - Key operating decision-makers assess segment performance based on profit or loss before tax[11](index=11&type=chunk) [Business Segment Performance](index=5&type=section&id=Business%20Segment%20Performance) Garment manufacturing saw decreased revenue, EBITDA, and profit before tax, while brand business revenue and EBITDA also fell, but its loss before tax narrowed Segment Results Overview | Metric | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | **Garment Manufacturing Segment** | | | | | Revenue | 796,690 | 973,595 | -18.2% | | EBITDA | 84,276 | 137,528 | -38.7% | | Profit Before Tax | 66,333 | 122,085 | -45.6% | | **Brand Business Segment** | | | | | Revenue | 879,741 | 952,806 | -7.6% | | EBITDA | 78,135 | 79,486 | -1.7% | | Profit/(Loss) Before Tax | (40,003) | (61,448) | Loss narrowed | | **Total** | | | | | Revenue | 1,676,431 | 1,926,401 | -13.0% | | EBITDA | 164,174 | 260,270 | -36.9% | | Profit Before Tax | 23,687 | 97,141 | -75.6% | Other Segment Activities | Metric | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Impairment provision for receivables (net) | (1,869) | (3,226) | Loss reduced | | Reversal of write-down/(write-down) of inventories to net realisable value (net) | 13,686 | (27,564) | Turned from loss to profit | | Additions to property, plant and equipment (including right-of-use assets) | 72,352 | 99,561 | -27.3% | [Geographical Segment Revenue and Assets](index=7&type=section&id=Geographical%20Segment%20Revenue%20and%20Assets) Revenue is concentrated in China, UK, Canada, Italy, and Singapore, with China's share slightly down; non-current assets are mainly in China, Switzerland, and Thailand Revenue Analysis by Customer Location | Region | 2025 Revenue (Thousand HKD) | 2024 Revenue (Thousand HKD) | 2025 Share | 2024 Share | | :--- | :--- | :--- | :--- | :--- | | China | 483,648 | 580,312 | 28.8% | 30.1% | | United Kingdom | 340,460 | 430,296 | 20.3% | 22.3% | | Canada | 248,396 | 286,443 | 14.8% | 14.9% | | Italy | 183,000 | 204,151 | 10.9% | 10.6% | | Singapore | 73,276 | 72,064 | 4.4% | 3.7% | | Other Countries | 347,651 | 353,135 | 20.7% | 18.3% | | **Total** | **1,676,431** | **1,926,401** | **100%** | **100%** | - Non-current assets are primarily located in China (**HKD 658,820 thousand**), Switzerland (**HKD 244,816 thousand**), and Thailand (**HKD 71,914 thousand**)[17](index=17&type=chunk) - Revenue from two customers in the garment manufacturing segment accounted for approximately **13% and 13%** of the Group's total revenue (2024: 15% and 13%)[16](index=16&type=chunk) [5. Net Other Income](index=8&type=section&id=5.%20Net%20Other%20Income) Net other income significantly decreased to HKD 0.766 million, mainly due to the absence of a prior-year one-off asset sale gain and current-period impairment losses Composition of Net Other Income | Item | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Government grants | 3,078 | 323 | | Impairment loss on property, plant and equipment | (4,999) | – | | Net (loss)/gain on disposal of property, plant and equipment | (1,205) | 19,465 | | Net gain on derecognition of right-of-use assets and lease liabilities | 1,666 | 855 | | Miscellaneous income | 2,226 | 2,334 | | **Total** | **766** | **22,977** | - The first half of 2024 included a gain of **HKD 20,923 thousand** from the disposal of certain unused leasehold land use rights and ancillary buildings in Mainland China[19](index=19&type=chunk) - The first half of 2025 recorded an impairment loss of **HKD 4,999 thousand** on property, plant and equipment for certain underperforming cash-generating units within the brand business[19](index=19&type=chunk) [6. Operating Profit](index=8&type=section&id=6.%20Operating%20Profit) Operating profit significantly decreased to HKD 47.394 million, driven by lower revenue, reduced net other income, and impairment losses, despite a slight rise in employee costs Items Deducted From/Included In Operating Profit | Item | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Amortisation of intangible assets | 26,057 | 28,620 | | Depreciation expense – owned property, plant and equipment | 30,832 | 43,206 | | Depreciation expense – right-of-use assets | 54,892 | 63,057 | | Employee costs and staff welfare expenses | 378,438 | 373,354 | - Operating profit significantly decreased, primarily due to reduced revenue and a substantial decline in net other income[3](index=3&type=chunk)[34](index=34&type=chunk) [7. Finance Income and Costs](index=9&type=section&id=7.%20Finance%20Income%20and%20Costs) Finance income increased to HKD 3.969 million from bank deposits, while finance costs decreased to HKD 27.676 million due to lower interest expenses Finance Income and Costs | Item | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | **Finance Income** | | | | Interest income from bank deposits | 3,545 | 1,783 | | Imputed interest on long-term rental deposits | 424 | 354 | | **Total Finance Income** | **3,969** | **2,137** | | **Finance Costs** | | | | Interest on bank loans | 389 | 851 | | Interest on franchise fees payable | 22,602 | 24,361 | | Interest on lease liabilities | 4,685 | 5,171 | | **Total Finance Costs** | **27,676** | **30,383** | [8. Income Tax Expense](index=9&type=section&id=8.%20Income%20Tax%20Expense) Income tax expense was HKD 20.141 million, a decrease from HKD 33.238 million in the prior period, primarily due to lower profit from the garment manufacturing business Composition of Income Tax Expense | Item | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Hong Kong profits tax | 5,564 | 16,204 | | Non-Hong Kong taxes | 9,942 | 15,147 | | Under/(over) provision in prior years | 2,913 | (100) | | Deferred income tax | 1,722 | 1,987 | | **Total Income Tax Expense** | **20,141** | **33,238** | - The decrease in income tax expense was primarily due to lower profit from the garment manufacturing business in the first half[47](index=47&type=chunk) [9. Earnings Per Share](index=10&type=section&id=9.%20Earnings%20Per%20Share) Basic earnings per share significantly decreased to HKD 0.006, down from HKD 0.23, mainly due to a substantial reduction in profit attributable to equity holders Earnings Per Share Data | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Profit Attributable to Equity Holders of the Company | 1,675 Thousand HKD | 62,532 Thousand HKD | | Weighted Average Number of Ordinary Shares in Issue During the Period | 272,775,684 shares | 271,776,561 shares | | Basic Earnings Per Share | HKD 0.006 | HKD 0.23 | | Diluted Earnings Per Share | HKD 0.006 | HKD 0.23 | [10. Dividends](index=10&type=section&id=10.%20Dividends) The Board resolved not to declare an interim dividend for H1 2025 (2024: HKD 0.06 per share), while the 2024 final dividend was paid - No interim dividend declared for the first half of 2025 (2024: **HKD 0.06 per share**)[25](index=25&type=chunk)[61](index=61&type=chunk) - The 2024 annual final dividend of **HKD 0.17 per share** was paid on July 17, 2025[25](index=25&type=chunk) [11. Inventories](index=11&type=section&id=11.%20Inventories) Total inventories increased to HKD 855 million, reflecting seasonal demand for the garment manufacturing segment's second-half shipments Composition of Inventories | Item | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Raw materials | 141,922 | 74,862 | | Work in progress | 213,994 | 159,291 | | Finished goods | 475,307 | 517,785 | | Goods in transit | 23,715 | 29,264 | | **Total** | **854,938** | **781,202** | - The increase in raw materials and work in progress reflects seasonal demand for the garment manufacturing segment's second-half shipments[26](index=26&type=chunk) [12. Trade and Bills Receivables](index=11&type=section&id=12.%20Trade%20and%20Bills%20Receivables) Trade and bills receivables increased to HKD 541 million, with most customers having good credit and terms of 45-90 days; some receivables are sold for cash flow Trade and Bills Receivables | Item | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Trade receivables measured at amortised cost (net of loss allowance) | 375,893 | 330,538 | | Trade receivables to be sold measured at fair value through other comprehensive income (revolving) | 165,007 | 122,507 | | **Total** | **540,900** | **453,045** | - Most customers for trade receivables have appropriate credit records, with credit terms mainly ranging from **45 to 90 days**[28](index=28&type=chunk) - The Group may sell certain trade receivables to financial institutions before their due date under customers' supplier financing programs[29](index=29&type=chunk) [13. Trade and Bills Payables](index=13&type=section&id=13.%20Trade%20and%20Bills%20Payables) Trade and bills payables decreased to HKD 301 million, with most supplier payment terms within 60 days Ageing Analysis of Trade and Bills Payables | Ageing | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Less than 3 months | 267,182 | 289,622 | | 3 to 6 months | 8,970 | 19,757 | | Over 6 months | 24,476 | 19,633 | | **Total** | **300,628** | **329,012** | - Supplier payment terms are mostly within **60 days**[30](index=30&type=chunk) [14. Capital Commitments](index=13&type=section&id=14.%20Capital%20Commitments) Contracted capital commitments for property, plant and equipment totaled HKD 38.67 million, mainly for a new logistics facility in Hefei Industrial Park Capital Commitments | Item | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Contracted but not provided for property, plant and equipment | 38,670 | – | - Capital commitments primarily include the construction of a new three-story logistics facility in Hefei Industrial Park, with a contract sum of **RMB 45,139,583.50**[32](index=32&type=chunk) [Management Discussion and Analysis](index=14&type=section&id=Management%20Discussion%20and%20Analysis) [Overview](index=14&type=section&id=Overview) Profit attributable to equity holders significantly decreased to HKD 2 million, impacted by challenging market conditions, reduced garment business profit, and no prior-year one-off asset sale gain - Profit attributable to equity holders: **HKD 2 million** (2024: **HKD 63 million**)[34](index=34&type=chunk) - The profit decline was mainly due to challenging and competitive market conditions, coupled with ongoing global trade uncertainties, leading to reduced demand from certain customers and a decrease in both revenue and profit for the garment manufacturing business[34](index=34&type=chunk) - No one-off gain of **HKD 21 million** was recognised in the first half of 2025 from the disposal of certain leasehold land use rights and ancillary buildings in Mainland China, as was the case in the first half of 2024[34](index=34&type=chunk) [Business Review](index=14&type=section&id=Business%20Review) C.P. Company maintained profitability, while licensed brands Nautica, Spyder, and Reebok faced declining revenue and worsening losses; garment manufacturing also saw reduced revenue and profit [Own Brands](index=14&type=section&id=Own%20Brands) C.P. Company revenue grew with increased profit, Cissonne shifts to online, while licensed brands Nautica and Spyder saw increased losses, and Reebok's loss narrowed [C.P. Company](index=14&type=section&id=C.P.%20Company) C.P. Company revenue grew 1% at constant exchange rates, driven by retail expansion, with brand profit increasing despite higher store expenses - C.P. Company's revenue increased by **1%** at constant exchange rates[35](index=35&type=chunk) - Retail channel revenue recorded high double-digit growth, primarily driven by the opening of new full-price and outlet stores[35](index=35&type=chunk) - The brand recorded profit growth, though partially offset by increased store expenses[35](index=35&type=chunk) [Cissonne](index=14&type=section&id=Cissonne) Cissonne, with five stores, will shift to an online-focused, pull-based operating model in H2 to reduce inventory and increase sales flexibility - Cissonne operates **five** stores[36](index=36&type=chunk) - The brand's sales model will change in the second half, using its own brand as the business foundation and online platforms as sales points, piloting a pull-based operating model[36](index=36&type=chunk) [Licensed Brands (Nautica, Spyder, Reebok)](index=15&type=section&id=Licensed%20Brands%20%28Nautica%2C%20Spyder%2C%20Reebok%29) Nautica and Spyder saw revenue declines and increased losses, while Reebok's revenue fell but operating losses decreased due to cost control - Nautica's revenue in the first half of 2025 decreased by **8%** year-on-year, with losses increasing compared to the prior period[37](index=37&type=chunk) - Spyder's revenue in the first half of 2025 also decreased by **26%** compared to the first half of 2024, with losses increasing year-on-year[37](index=37&type=chunk) - Reebok's revenue decreased by **21%** compared to the first half of 2024, but operating losses decreased year-on-year[38](index=38&type=chunk) - The Group has conducted a strategic review of its licensed brand portfolio to optimize resource allocation and support long-term growth[38](index=38&type=chunk) [Garment Manufacturing Business](index=15&type=section&id=Garment%20Manufacturing%20Business) Garment manufacturing revenue and profit declined due to market challenges and reduced demand, though Vietnamese factory orders increased, with ongoing efforts to enhance efficiency - Revenue and profit for the garment manufacturing business both decreased, primarily due to challenging and competitive market conditions, coupled with ongoing global trade uncertainties, leading to reduced demand from certain customers[39](index=39&type=chunk) - Orders for Vietnamese factories still increased during the period[39](index=39&type=chunk) - The Group continues to enhance production efficiency and competitiveness through implementing automation and streamlined operational measures[39](index=39&type=chunk) [Financial Performance Analysis](index=17&type=section&id=Financial%20Performance%20Analysis) Total revenue decreased by 13%, gross profit declined with stable margin, net other income significantly reduced, and expenses decreased, leading to lower garment profit but narrowed brand loss [Revenue](index=17&type=section&id=Revenue) Total revenue decreased by 13% to HKD 1.676 billion, with both brand and garment segments declining, and a seasonal skew towards the second half - The Group's total revenue for the first half of 2025 was **HKD 1.676 billion** (2024: **HKD 1.926 billion**), a **13%** decrease compared to the first half of 2024[41](index=41&type=chunk) - Revenue from the brand business decreased by **8%**, and revenue from the garment manufacturing business decreased by **18.2%**[41](index=41&type=chunk) - The Group's business is skewed towards the second half, primarily due to seasonal impacts from higher garment manufacturing and brand business product shipments during the autumn/winter and holiday seasons[42](index=42&type=chunk) [Gross Profit](index=17&type=section&id=Gross%20Profit) Total gross profit was HKD 687 million, with a gross margin of 41.0%, slightly down from 41.3%, primarily due to reduced revenue and mixed segment gross margin changes - The Group recorded an overall gross profit of **HKD 687 million** (2024: **HKD 795 million**), with a gross margin of **41.0%** (2024: **41.3%**)[43](index=43&type=chunk) - The decrease in gross profit was primarily due to reduced revenue[43](index=43&type=chunk) - Changes in customer revenue mix led to a slight decrease in the gross margin of the garment manufacturing business year-on-year, while the overall gross margin of the brand business slightly increased[43](index=43&type=chunk) [Net Other Income](index=18&type=section&id=Net%20Other%20Income) Net other income significantly decreased due to the absence of a prior-year one-off gain of HKD 21 million from asset disposals - In the first half of 2024, net other income included a gain of **HKD 21 million** from the disposal of certain unused leasehold land use rights and ancillary buildings in Mainland China[44](index=44&type=chunk) - No such one-off items were recorded in the current reporting period[44](index=44&type=chunk) [Selling and Distribution Expenses](index=18&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses decreased due to lower commissions and store expenses for licensed brands, and reduced marketing and e-commerce costs for C.P. Company - Selling and distribution expenses decreased compared to the first half of 2024, primarily due to reduced retail partner commissions and store expenses for licensed brands[45](index=45&type=chunk) - C.P. Company's advertising and promotion expenses, as well as e-commerce and agency commissions, decreased[45](index=45&type=chunk) [General and Administrative Expenses](index=18&type=section&id=General%20and%20Administrative%20Expenses) General and administrative expenses increased year-on-year, despite cost control efforts, mainly due to higher exchange gains recorded in the prior period - General and administrative expenses reported in the current period increased compared to the first half of 2024, primarily due to higher exchange gains recorded in the first half of 2024[46](index=46&type=chunk) - The Group has controlled and reduced its general and administrative expenses[46](index=46&type=chunk) [Income Tax Expense](index=18&type=section&id=Income%20Tax%20Expense) Income tax expense decreased year-on-year, mainly due to reduced profit from the garment manufacturing business in the first half - Income tax expense decreased compared to the prior period, primarily due to lower profit from the garment manufacturing business in the first half[47](index=47&type=chunk) [Segment Results](index=18&type=section&id=Segment%20Results) Garment manufacturing profit declined due to lower revenue; brand business overall loss narrowed, with C.P. Company profit up, but Nautica and Spyder losses increased - The garment manufacturing business recorded a profit decrease due to reduced revenue[48](index=48&type=chunk) - The overall loss of the brand business narrowed compared to the prior period[48](index=48&type=chunk) - C.P. Company recorded an increase in profit; among licensed brands, Nautica and Spyder's operating losses increased, while Reebok's decreased[48](index=48&type=chunk) [Financial Resources and Liquidity](index=18&type=section&id=Financial%20Resources%20and%20Liquidity) Cash and bank balances were HKD 348 million, with short-term bank loans at HKD 77 million; shareholder equity increased due to Euro appreciation - As of June 30, 2025, cash and bank balances were **HKD 348 million** (December 31, 2024: **HKD 467 million**)[49](index=49&type=chunk) - As of June 30, 2025, the Group's short-term bank loans amounted to **HKD 77 million** (December 31, 2024: nil)[49](index=49&type=chunk) - Shareholders' equity increased compared to December 31, 2024, primarily due to exchange gains from the translation of overseas subsidiaries' financial statements (mainly from the significant appreciation of the Euro against the HKD since April of the current year)[51](index=51&type=chunk) [Contingent Liabilities and Capital Commitments](index=19&type=section&id=Contingent%20Liabilities%20and%20Capital%20Commitments) The main capital commitment is a RMB 45.14 million contract for a new logistics facility in Hefei, serving as the China brand business distribution center - Major capital commitments include a construction contract with Hefei Luen Thai for a new three-story logistics facility on land owned by Hefei Luen Thai within the Hefei Economic and Technological Development Zone Industrial Park[52](index=52&type=chunk) - The contract sum is **RMB 45,139,583.50**[52](index=52&type=chunk) - Upon completion, this logistics facility will create synergies with existing facilities in Hefei Industrial Park and serve as the distribution center for the Group's China brand business[52](index=52&type=chunk) [Human Resources](index=19&type=section&id=Human%20Resources) The Group had approximately 6,220 employees, a decrease from 6,530, with competitive remuneration and benefits, including discretionary bonuses and share options for top performers - As of June 30, 2025, the Group had approximately **6,220** employees (December 31, 2024: **6,530** employees)[54](index=54&type=chunk) - Employees are provided with reasonable and competitive remuneration and benefits, with outstanding performers also receiving discretionary bonuses and share options[54](index=54&type=chunk) [Outlook](index=20&type=section&id=Outlook) The market remains challenging; C.P. Company expects stable performance with D2C and new markets offsetting European wholesale decline; licensed brands will boost online investment; garment manufacturing will focus on efficiency; the Group will control costs and innovate for sustainable growth - C.P. Company anticipates a further decline in wholesale revenue from existing mature markets, but growth in Eastern Europe and Spain, along with new market opportunities in South America, Southeast Asia, and the Middle East, are expected to partially offset this decline[55](index=55&type=chunk) - The licensed brand business will increase investment in online channels to drive growth, enhance resource allocation for digital operations, and adopt data-driven marketing strategies[56](index=56&type=chunk) - The garment manufacturing business will continue to streamline operations and improve efficiency, leveraging its multi-region production bases, unique production systems, and flexible supply chain to collaborate closely with customers and navigate headwinds[56](index=56&type=chunk) - The Group will strictly control operating costs, continuing to focus on enhancing operational efficiency, brand innovation, and product optimization to strengthen its competitiveness and drive long-term value creation and sustainable growth[57](index=57&type=chunk) [Other Information](index=21&type=section&id=Other%20Information) [Compliance with Corporate Governance Code](index=21&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Company complied with the Corporate Governance Code, except for the Chairman and CEO roles being combined, which the Board deems in the Group's best interest - The Company has consistently applied the principles and complied with all code provisions of Appendix C1, "Corporate Governance Code," of the Listing Rules, except for a deviation from code provision C.2.1[58](index=58&type=chunk) - Mr. Wang Jianzhong serves as both the Chairman and Chief Executive Officer, which constitutes a deviation from the aforementioned code provision C.2.1[58](index=58&type=chunk) - The Board believes that Mr. Wang Jianzhong holding both the Chairman and Chief Executive Officer roles is in the best interest of the Group[58](index=58&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=21&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%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 - During the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[60](index=60&type=chunk) [Interim Dividend](index=21&type=section&id=Interim%20Dividend) The Board resolved not to declare an interim dividend for the six months ended June 30, 2025 (2024: HKD 0.06 per share) - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025 (2024: **HKD 0.06 per share**)[61](index=61&type=chunk) [Review of Financial Statements by Audit Committee](index=21&type=section&id=Review%20of%20Financial%20Statements%20by%20Audit%20Committee) The Company's condensed consolidated interim financial statements and interim report for H1 2025 were reviewed by the Audit Committee and management - The Company's condensed consolidated interim financial statements and interim report for the six months ended June 30, 2025, have been reviewed by the Company's Audit Committee in conjunction with the Group's management[62](index=62&type=chunk)

[Summary](index=1&type=section&id=摘要) This section provides key financial highlights for the first half of 2025, including revenue, gross profit, and profit attributable to owners, along with dividend declarations Key Financial Highlights for H1 2025 | Metric | H1 2025 (RMB Million) | H1 2024 (RMB Million) | YoY Growth/Decrease (%) | | :--- | :--- | :--- | :--- | | Revenue | 3,460.8 | 3,371.0 | 2.7% | | Gross Profit | 645.4 | 716.8 | -10.0% | | Profit | 270.2 | 325.4 | -17.0% | | Profit Attributable to Owners of the Company | 213.8 | 265.1 | -19.4% | - The Board resolved to declare an interim dividend of **HKD 0.0678 per share** for the six months ended June 30, 2025 (H1 2024: HKD 0.0839 per share)[3](index=3&type=chunk) - The Board further resolved to declare a special dividend of **HKD 0.0271 per share** for the six months ended June 30, 2025 (H1 2024: HKD 0.0336 per share) to reward shareholder support[3](index=3&type=chunk) [Financial Statements](index=2&type=section&id=財務報表) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=簡明綜合損益及其他全面收益表) This section presents the unaudited consolidated profit or loss and other comprehensive income of Yongsheng Services Group for the six months ended June 30, 2025, showing a slight increase in revenue but a decrease in gross profit and profit compared to the same period in 2024 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (RMB Thousand) | Metric | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Revenue | 3,460,843 | 3,371,025 | | Cost of Services | (2,815,409) | (2,654,268) | | Gross Profit | 645,434 | 716,757 | | Other Income and Other Gains and Losses | 31,211 | 14,637 | | Administrative Expenses | (175,324) | (193,791) | | Selling Expenses | (52,263) | (47,477) | | Net Expected Credit Loss on Financial Assets | (96,251) | (64,610) | | Profit Before Tax | 348,129 | 417,887 | | Income Tax Expense | (77,971) | (92,528) | | Profit and Total Comprehensive Income for the Period | 270,158 | 325,359 | | Profit Attributable to Owners of the Company | 213,778 | 265,053 | | Basic and Diluted Earnings Per Share (RMB) | 0.12 | 0.15 | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=簡明綜合財務狀況表) This section outlines the assets, liabilities, and equity of Yongsheng Services Group as of June 30, 2025, indicating growth in total assets and equity but a decrease in cash and cash equivalents compared to December 31, 2024 Condensed Consolidated Statement of Financial Position (RMB Thousand) | Metric | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | **Non-Current Assets** | | | | Property, Plant and Equipment | 88,865 | 96,775 | | Investment Properties | 548,715 | 549,125 | | Intangible Assets | 290,320 | 297,557 | | Goodwill | 1,488,171 | 1,488,171 | | Total Non-Current Assets | 3,236,587 | 3,241,675 | | **Current Assets** | | | | Trade and Bills Receivables | 2,861,187 | 2,445,015 | | Cash and Cash Equivalents | 2,241,313 | 2,617,846 | | Total Current Assets | 6,076,502 | 5,974,978 | | **Current Liabilities** | | | | Trade and Bills Payables | 1,518,921 | 1,307,537 | | Contract Liabilities | 732,224 | 940,075 | | Total Current Liabilities | 3,704,140 | 3,752,531 | | **Equity** | | | | Equity Attributable to Owners of the Company | 5,108,359 | 5,001,126 | | Total Equity | 5,522,254 | 5,386,041 | [Notes to the Financial Statements](index=6&type=section&id=財務報表附註) [Basis of Preparation](index=6&type=section&id=1.%20編製基準) The condensed consolidated financial statements are prepared in accordance with HKAS 34 and HKEX Listing Rules, applying consistent accounting policies and methods as the 2024 annual financial statements - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[12](index=12&type=chunk) - The accounting policies and methods of computation adopted in preparing these condensed consolidated financial statements are consistent with those applied in the Group's financial statements for the year ended December 31, 2024[12](index=12&type=chunk) [Application of Amendments to HKFRSs](index=6&type=section&id=2.%20應用香港財務報告準則會計準則的修訂) During this interim period, the Group first applied amendments to HKFRSs, which did not cause significant changes to its accounting policies, financial position, or performance presentation - During this interim period, the Group first applied amendments to Hong Kong Financial Reporting Standards (HKFRSs) issued by the Hong Kong Institute of Certified Public Accountants, including HKAS 21 (Amendment) Lack of Exchangeability[13](index=13&type=chunk) - The application of these amendments did not result in significant changes to the Group's accounting policies, the presentation of the Group's financial position and performance for the current and prior periods, and/or the disclosures contained in these condensed consolidated financial statements[13](index=13&type=chunk) [Revenue and Segment Information](index=7&type=section&id=3.%20收入及分部資料) The Group's revenue primarily derives from property management, community value-added, value-added services to non-property owners, and city services, all generated within China, with management reviewing the business as a single operating segment - The Group's revenue refers to income from property management services, community value-added services, value-added services to non-property owners, and city services[14](index=14&type=chunk) - The Group's principal operating entities are all located in the People's Republic of China ("China"), thus all revenue is derived from China[14](index=14&type=chunk) Revenue Analysis by Category (RMB Thousand) | Revenue Category | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Property Management Services | 2,668,749 | 2,462,483 | | Community Value-Added Services | 396,403 | 399,398 | | Value-Added Services to Non-Property Owners | 269,609 | 356,613 | | City Services | 125,474 | 149,021 | | Others | 608 | 3,510 | | **Total** | **3,460,843** | **3,371,025** | Revenue Analysis by Timing of Recognition (RMB Thousand) | Timing of Recognition | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | At a point in time | 146,934 | 156,326 | | Over time | 3,313,301 | 3,211,189 | | **Total** | **3,460,235** | **3,367,515** | [Profit Before Tax](index=8&type=section&id=4.%20除稅前溢利) This section details the main expenses affecting profit before tax, including depreciation, amortization, lease expenses, and staff costs, providing insight into profit composition Expense Details Affecting Profit Before Tax (RMB Thousand) | Expense Item | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Depreciation of Property, Plant and Equipment | 18,377 | 26,061 | | Amortization of Intangible Assets | 18,331 | 23,084 | | Expenses related to short-term leases - leased properties | 3,448 | 3,495 | | Expenses related to leases of low-value assets - plant and machinery | 741 | 703 | | Staff Costs (including directors' emoluments) - Wages, salaries and other benefits | 1,041,538 | 1,065,460 | | Staff Costs (including directors' emoluments) - Bonuses | 70,431 | 78,301 | | Staff Costs (including directors' emoluments) - Contributions to retirement schemes | 156,696 | 158,210 | [Income Tax Expense](index=9&type=section&id=5.%20所得稅開支) This section discloses the Group's income tax expense for the six months ended June 30, 2025, comprising PRC corporate income tax and deferred tax Income Tax Expense Details (RMB Thousand) | Tax Category | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | PRC Corporate Income Tax - Current tax | 105,304 | 114,070 | | PRC Corporate Income Tax - Under-provision in prior periods | 478 | 582 | | Deferred Tax - Credited to profit or loss for the period | (27,811) | (22,124) | | **Total Income Tax Expense** | **77,971** | **92,528** | [Dividends](index=9&type=section&id=6.%20股息) This section details the final dividends declared and paid, along with interim and special dividends resolved by the Board, to reward shareholder support - For the year ended December 31, 2024, a final dividend of **HKD 0.0668 per share** was declared and paid to owners of the Company (for the six months ended June 30, 2024: HKD 0.0914 per share)[21](index=21&type=chunk) - The Board has resolved to declare an interim dividend of **HKD 0.0678 per share** and a special dividend of **HKD 0.0271 per share** for the six months ended June 30, 2025[21](index=21&type=chunk) - The interim dividend for the six months ended June 30, 2024, was **HKD 0.0839 per share**, and the special dividend was **HKD 0.0336 per share**[21](index=21&type=chunk) [Earnings Per Share](index=10&type=section&id=7.%20每股盈利) This section provides the basis and specific values for basic and diluted earnings per share attributable to the Company's equity holders, reflecting changes in profitability Earnings Per Share Calculation (RMB Thousand) | Metric | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Profit Attributable to Owners of the Company | 213,778 | 265,053 | | Weighted Average Number of Ordinary Shares (Thousand Shares) | 1,728,554 | 1,737,452 | | **Basic and Diluted Earnings Per Share (RMB)** | **0.12** | **0.15** | [Trade and Bills Receivables](index=10&type=section&id=8.%20貿易應收款項及應收票據) This section discloses the composition and aging analysis of the Group's trade and bills receivables, showing an increase primarily due to slower collection speeds amid a downward market trend Trade and Bills Receivables (RMB Thousand) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Trade Receivables - Related Parties | 942,710 | 878,789 | | Trade Receivables - Third Parties | 2,343,629 | 1,907,086 | | Bills Receivable | 6,633 | 4,093 | | Less: Provision for Credit Losses | (431,785) | (344,953) | | **Total** | **2,861,187** | **2,445,015** | Aging Analysis of Trade and Bills Receivables (RMB Thousand) | Aging | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Within 1 year | 1,782,741 | 1,589,620 | | 1 to 2 years | 542,219 | 510,796 | | 2 to 3 years | 332,292 | 229,695 | | 3 to 4 years | 136,330 | 76,949 | | 4 to 5 years | 67,605 | 37,955 | | **Total** | **2,861,187** | **2,445,015** | [Trade and Bills Payables](index=11&type=section&id=9.%20貿易應付款項及應付票據) This section discloses the composition and aging analysis of the Group's trade and bills payables, showing an increase primarily due to business expansion Trade and Bills Payables (RMB Thousand) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Trade Payables - Related Parties | 31,728 | 25,132 | | Trade Payables - Third Parties | 1,469,920 | 1,257,593 | | Bills Payable | 17,273 | 24,812 | | **Total** | **1,518,921** | **1,307,537** | Aging Analysis of Trade and Bills Payables (RMB Thousand) | Aging | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Within 1 year | 1,163,372 | 959,602 | | 1 to 2 years | 156,309 | 180,289 | | 2 to 3 years | 104,797 | 121,511 | | 3 to 4 years | 50,937 | 44,644 | | 4 to 5 years | 43,506 | 1,491 | | **Total** | **1,518,921** | **1,307,537** | [Business Review](index=13&type=section&id=業務回顧) [Overview](index=13&type=section&id=概覽) Yongsheng Services Group is a rapidly growing integrated property management service provider in China, covering 100 cities with approximately 253.7 million sqm under management, serving over 1.12 million households across four business segments - As of June 30, 2025, the Company provides property management services, value-added services, and city services in **100 cities** in mainland China, with a total contracted GFA of approximately **354.9 million sqm** and a total GFA under management of approximately **253.7 million sqm**, serving over **1.12 million households**[26](index=26&type=chunk) - Business covers residential and non-residential properties, including office buildings, shopping malls, schools, hospitals, scenic spots, government buildings, highway service stations, rail transit, and ferry terminals[26](index=26&type=chunk) - The Company has four major business segments: property management services, community value-added services, value-added services to non-property owners, and city services[27](index=27&type=chunk) [Business Development and Scale](index=15&type=section&id=持續高質量發展) The Group adheres to a city-deepening strategy, achieving high-quality growth in contracted and GFA under management through multi-driven approaches, with approximately 7.7% and 7.4% year-on-year increases respectively as of June 30, 2025 - As of June 30, 2025, contracted GFA was approximately **354.9 million sqm** with **1,966 contracted projects**, representing increases of approximately **7.7%** and **13.6%** respectively compared to June 30, 2024[28](index=28&type=chunk) - As of June 30, 2025, GFA under management was approximately **253.7 million sqm** with **1,531 projects under management**, representing increases of **7.4%** and **7.4%** respectively compared to June 30, 2024[28](index=28&type=chunk) Changes in Contracted GFA and GFA Under Management (Thousand Sqm) | Metric | 2025 Contracted GFA | 2025 GFA Under Management | 2024 Contracted GFA | 2024 GFA Under Management | | :--- | :--- | :--- | :--- | :--- | | At beginning of period | 350,935 | 250,642 | 308,265 | 221,408 | | New additions | 20,756 | 18,778 | 37,588 | 24,464 | | Terminations | (16,837) | (15,679) | (16,323) | (9,526) | | At end of period | 354,854 | 253,741 | 329,530 | 236,346 | GFA Under Management and Property Management Service Revenue by Geographical Region (June 30, 2025) | Region | GFA (Thousand Sqm) | Revenue (RMB Thousand) | Revenue Share (%) | | :--- | :--- | :--- | :--- | | Eastern Region | 142,492 | 1,568,920 | 58.8 | | Northern Region | 35,244 | 359,743 | 13.5 | | Central-Southern Region | 37,429 | 337,362 | 12.6 | | Western Region | 28,448 | 302,813 | 11.4 | | Northeastern Region | 10,128 | 99,911 | 3.7 | | **Total** | **253,741** | **2,668,749** | **100.0** | [Market Strategy and Cooperation](index=18&type=section&id=市場策略與合作) Amid a challenging real estate market, the Company maintains market-oriented business with CIFI Group, continuously enhancing independent third-party market development and significantly increasing external expansion contract saturated revenue this period - The Company adheres to the principle of "conducting business with CIFI Group on market-oriented principles," effectively mitigating the negative impact of the severe real estate market[34](index=34&type=chunk) - The Company is committed to developing third-party markets through diversified approaches, primarily targeting regional property developers, existing residential properties, government bidding projects, and industrial parks and office buildings for commercial clients[35](index=35&type=chunk) - During this period, the Company's saturated revenue from external expansion contracts significantly increased year-on-year, achieving its best performance in history[36](index=36&type=chunk) [Strategic Acquisitions](index=19&type=section&id=戰略併購) Strategic acquisitions are a key part of the Company's history, adhering to 'pre-acquisition selection, post-acquisition management' principles to boost market share and expand business, with no acquisitions in H1 2025 - The Company adheres to the principle of "careful selection before investment and refined management after investment" in acquisitions, aiming to increase market share, expand regional business scale, and break industry barriers through strategic acquisitions[37](index=37&type=chunk) - Since 2022, due to external environmental disturbances and internal risk control requirements, the Company has significantly reduced the number of acquisition projects[37](index=37&type=chunk) - In the first half of 2025, the Company did not undertake any project acquisitions, but historical acquisition projects have achieved good integration and met performance targets[37](index=37&type=chunk)[38](index=38&type=chunk) [Property Portfolio Analysis](index=20&type=section&id=物業組合分析) The Group's GFA under management is detailed by property developer type, property type (residential/non-residential), and revenue model (lump-sum/commission), showing increasing contributions from third-party developers and non-residential properties Total GFA Under Management by Property Developer Type (Thousand Sqm) | Developer Type | June 30, 2025 (Thousand Sqm) | 2025 Share (%) | June 30, 2024 (Thousand Sqm) | 2024 Share (%) | | :--- | :--- | :--- | :--- | :--- | | CIFI Group | 58,857 | 23.2 | 60,477 | 25.6 | | Third-Party Property Developers | 194,884 | 76.8 | 175,869 | 74.4 | | **Total** | **253,741** | **100.0** | **236,346** | **100.0** | Total GFA Under Management and Property Management Service Revenue by Property Type | Property Type | 2025 GFA (Thousand Sqm) | 2025 Revenue (RMB Thousand) | 2025 Revenue Share (%) | 2024 GFA (Thousand Sqm) | 2024 Revenue (RMB Thousand) | 2024 Revenue Share (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Residential Properties | 154,368 | 1,334,666 | 50.0 | 151,779 | 1,457,526 | 59.2 | | Non-Residential Properties | 99,373 | 1,334,083 | 50.0 | 84,567 | 1,004,957 | 40.8 | | **Total** | **253,741** | **2,668,749** | **100.0** | **236,346** | **2,462,483** | **100.0** | Total GFA Under Management and Property Management Service Revenue by Revenue Model | Revenue Model | 2025 GFA (Thousand Sqm) | 2025 Revenue (RMB Thousand) | 2025 Revenue Share (%) | 2024 GFA (Thousand Sqm) | 2024 Revenue (RMB Thousand) | 2024 Revenue Share (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Lump-Sum | 251,450 | 2,664,929 | 99.9 | 234,476 | 2,460,204 | 99.9 | | Commission | 2,291 | 3,820 | 0.1 | 1,870 | 2,279 | 0.1 | | **Total** | **253,741** | **2,668,749** | **100.0** | **236,346** | **2,462,483** | **100.0** | [Community Value-Added Services](index=22&type=section&id=社區增值服務) Amid a weak macroeconomy and property market, community value-added service revenue slightly decreased by 0.8% this period, prompting the Company to focus on higher-margin businesses and optimize services for sustainable development - During this period, revenue from community value-added services was approximately **RMB 396.4 million**, a decrease of approximately **0.8%** compared to approximately RMB 399.4 million in the same period of 2024[43](index=43&type=chunk) - The Company is more focused on the development of community value-added services and has exited some low-margin and less sustainable businesses[43](index=43&type=chunk) Community Value-Added Service Revenue Details (RMB Thousand) | Service Category | 2025 (RMB Thousand) | 2025 Share (%) | 2024 (RMB Thousand) | 2024 Share (%) | | :--- | :--- | :--- | :--- | :--- | | Home Life Services | 207,433 | 52.3 | 221,493 | 55.4 | | Parking Space Management and Leasing Services | 72,576 | 18.3 | 76,153 | 19.1 | | Property Brokerage Services | 67,662 | 17.1 | 62,270 | 15.6 | | Value-Added Services for Public Areas | 48,732 | 12.3 | 39,482 | 9.9 | | **Total** | **396,403** | **100.0** | **399,398** | **100.0** | [Value-Added Services to Non-Property Owners](index=25&type=section&id=對非業主的增值服務) Revenue from value-added services to non-property owners significantly decreased by approximately 24.4% this period due to the weak Chinese real estate market, leading the Company to adopt a more cautious strategy and exit lower-expected-return projects - Revenue from value-added services to non-property owners decreased by approximately **24.4%** to approximately **RMB 269.6 million** compared to RMB 356.6 million in the same period of 2024, primarily due to the weak Chinese real estate market[47](index=47&type=chunk) - The Company is more cautious in providing value-added services to non-property owners and has exited some service projects with relatively low expected returns[47](index=47&type=chunk) Value-Added Services to Non-Property Owners Revenue Details (RMB Thousand) | Service Category | 2025 (RMB Thousand) | 2025 Share (%) | 2024 (RMB Thousand) | 2024 Share (%) | | :--- | :--- | :--- | :--- | :--- | | Co-selling Services | 79,097 | 29.3 | 109,069 | 30.6 | | Additional Specialized Customization Services | 130,795 | 48.5 | 151,115 | 42.4 | | Early-stage Planning and Design Consulting Services | 10,943 | 4.1 | 18,615 | 5.2 | | Property Repair Services | 39,404 | 14.6 | 58,636 | 16.4 | | Pre-delivery Inspection Services | 9,370 | 3.5 | 19,178 | 5.4 | | **Total** | **269,609** | **100.0** | **356,613** | **100.0** | [City Services](index=26&type=section&id=城市服務) The Company actively explores city services, enhancing professional capabilities through acquisitions and positioning itself as a municipal service manager, urban asset operator, and future development partner, aiming to be the preferred smart city service brand - The Company has gradually expanded from traditional residential property to non-residential areas and extended to urban service operations, actively exploring and accumulating experience since 2020[49](index=49&type=chunk) - Through the acquisition of Meizhong Environment in 2021, the Company further enhanced its professional capabilities in urban services[49](index=49&type=chunk) - The Company's city services are positioned as: urban municipal service manager (environmental sanitation and greening, renovation of old communities), urban asset operation assistant (management of idle urban spaces and regional resources), and urban future development partner (smart city construction)[49](index=49&type=chunk) [Future Outlook](index=27&type=section&id=未來展望) [Business Expansion Strategy](index=27&type=section&id=高質量發展引領，穩步拓展業務規模與區域佈局) The Company will pursue high-quality development, steadily expanding management area and service types, optimizing market expansion, deepening presence in key regions, and exploring high-potential non-residential sectors while strengthening cooperation with state-owned enterprises - The Company will be guided by high-quality development, steadily expanding its management area and service types, promoting simultaneous growth in scale and density[51](index=51&type=chunk) - Focus on deeply cultivating key regions such as the Yangtze River Delta, Guangdong-Hong Kong-Macao Greater Bay Area, and Beijing-Tianjin-Hebei, which have concentrated populations and active economies, gradually achieving a hundred-city layout and regional intensive operation[51](index=51&type=chunk) - Continuously expand non-residential businesses, with particular attention to high-potential sectors such as commercial complexes, medical and elderly care, logistics parks, and urban public buildings[51](index=51&type=chunk) - Deepen strategic cooperation with state-owned construction platforms, urban investment companies, and high-quality real estate enterprises, exploring integrated models of "build-operate-transfer + operation" and "government + market-oriented" approaches[52](index=52&type=chunk) [Enhancing Value-Added Service Capabilities](index=28&type=section&id=提升多元增值服務能力，打造全鏈條服務體系) The Company will refine pre-delivery consulting, construction inspection, delivery acceptance, and property repair services to enhance overall solution delivery, transitioning from single to full-chain management, and exploring management output and digitalization for smaller property companies - Actively improve service modules such as pre-delivery consulting, construction inspection, delivery acceptance, and property repair management to enhance overall solution delivery capabilities and consolidate market advantages in value-added services to non-property owners[53](index=53&type=chunk) - Promote the transformation of services from single management to full-chain management to achieve greater value co-creation[53](index=53&type=chunk) - Explore providing management output and digital transformation services for small and medium-sized regional property companies, realizing a shift from "property manager" to "property solution provider"[53](index=53&type=chunk) [Deepening Community Value-Added Services](index=29&type=section&id=深耕社區增值服務，打造業主全場景生活生態圈) Community value-added services remain a strategic core, with the Company strengthening business unit models, iterating services around high-frequency, essential owner needs, and building a full-lifecycle service system for 'people, things, and spaces' to achieve sustainable growth through 'deep service, light assets, strong stickiness' - Community value-added services will remain the strategic core of "building a larger and stronger platform, optimizing and thoroughly developing the ecosystem," strengthening the business unit model and optimizing the independent operation of owner service lines[54](index=54&type=chunk) - Focus on continuously iterating services around high-frequency, essential owner needs, such as community housekeeping, space renovation, age-friendly renovation, neighborhood commerce, and community live-streaming sales[54](index=54&type=chunk) - Adopt "deep service, light assets, strong stickiness" as the community operation strategic direction, continuously exploring potential market demand to achieve sustainable growth in service revenue[54](index=54&type=chunk) [Talent and Organizational Development](index=29&type=section&id=人才與組織升級雙驅動，打造強執行力團隊) The Company will build a stable and efficient core team through campus recruitment and external talent acquisition, implement a 'cage-for-birds' strategy for senior management, and promote flat organizational reform to enhance cross-departmental synergy and a 'results-oriented, accountability-driven' culture - Build a stable, efficient, and professional grassroots and middle-level core team through a dual-driven approach of "Yongdongli" campus recruitment and external talent introduction[55](index=55&type=chunk) - Adhere to the "cage-for-birds" strategy for the senior management team, focusing on managers with consistent values, strong execution, and systemic thinking[55](index=55&type=chunk) - Promote flat organizational reform, enhance cross-departmental collaboration efficiency, and strengthen a "results-oriented, accountability-driven" culture to improve overall organizational resilience and response speed[55](index=55&type=chunk) [Technology and Smart Operations](index=30&type=section&id=全面投入技術與智慧運營，打造數字驅動型企業) The Company will increase investment in smart technology R&D, enhance AI, IoT, and big data applications in property management, upgrade internal systems, and establish a 'centralized command center' to transition property management from 'human governance' to 'digital governance' - Continuously increase investment in smart technology companies and R&D, strengthening the integrated application of artificial intelligence, Internet of Things, and big data in property management service scenarios[56](index=56&type=chunk) - Comprehensively upgrade internal management systems, financial data platforms, HR cloud, contract management cloud, and other basic infrastructures to build a data foundation and enhance management efficiency and risk controllability[56](index=56&type=chunk) - Plan to build a "centralized command center" integrating smart central control, data decision-making, and remote collaboration, achieving centralized operation and real-time monitoring of city-level projects[56](index=56&type=chunk) [Financial Analysis](index=31&type=section&id=財務分析) [Revenue Analysis](index=31&type=section&id=收入) The Group's total revenue increased by 2.7% to RMB 3,460.8 million this period, with property management services as the largest contributor at 77.1%, while community value-added and city services saw slight declines, and value-added services to non-property owners significantly decreased due to the weak real estate market - During this period, the Group recorded revenue of approximately **RMB 3,460.8 million**, an increase of approximately **2.7%** compared to approximately RMB 3,371.0 million in the same period of 2024[57](index=57&type=chunk) Revenue by Business Line (RMB Thousand) | Business Line | 2025 (RMB Thousand) | 2025 Share (%) | 2024 (RMB Thousand) | 2024 Share (%) | | :--- | :--- | :--- | :--- | :--- | | Property Management Services | 2,668,749 | 77.1 | 2,462,483 | 73.1 | | Community Value-Added Services | 396,403 | 11.4 | 399,398 | 11.8 | | Value-Added Services to Non-Property Owners | 269,609 | 7.8 | 356,613 | 10.6 | | City Services | 125,474 | 3.6 | 149,021 | 4.4 | | Others | 608 | 0.1 | 3,510 | 0.1 | | **Total Revenue** | **3,460,843** | **100.0** | **3,371,025** | **100.0** | Property Management Service Revenue by Property Developer Type (RMB Thousand) | Developer Type | 2025 (RMB Thousand) | 2025 Share (%) | 2024 (RMB Thousand) | 2024 Share (%) | | :--- | :--- | :--- | :--- | :--- | | CIFI Group | 614,349 | 23.0 | 717,025 | 29.1 | | Third-Party Property Developers | 2,054,400 | 77.0 | 1,745,458 | 70.9 | | **Total Revenue** | **2,668,749** | **100.0** | **2,462,483** | **100.0** | - Revenue from value-added services to non-property owners decreased by approximately **24.4%** to **RMB 269.6 million**, primarily due to the weak Chinese real estate industry[60](index=60&type=chunk) - City services revenue decreased by approximately **15.8%** to **RMB 125.5 million**, mainly due to the Company's strategy of reallocating resources and exiting some low-profit businesses[61](index=61&type=chunk) [Costs and Gross Profit](index=33&type=section&id=服務成本) Service costs increased by 6.1% to RMB 2,815.4 million this period, leading to a 10.0% decrease in gross profit to RMB 645.4 million. The overall gross profit margin fell by 2.7 percentage points to 18.6%, primarily due to declines in property management and value-added services - Cost of services increased by approximately **6.1%** from approximately RMB 2,654.3 million in the same period of 2024 to approximately **RMB 2,815.4 million** in this period, mainly due to the expansion of business scale[62](index=62&type=chunk) - Gross profit decreased by approximately **10.0%** from approximately RMB 716.8 million in the same period of 2024 to approximately **RMB 645.4 million** in this period[63](index=63&type=chunk) Gross Profit Margin by Business Line (%) | Business Line | 2025 (%) | 2024 (%) | | :--- | :--- | :--- | | Property Management Services | 18.5 | 20.5 | | Community Value-Added Services | 28.2 | 37.1 | | Value-Added Services to Non-Property Owners | 8.9 | 12.4 | | City Services | 12.3 | 11.7 | | **Total** | **18.6** | **21.3** | - The Group's gross profit margin was **18.6%**, a decrease of **2.7 percentage points** from **21.3%** in the same period of 2024, mainly due to a decrease in gross profit margins for property management services and value-added services[65](index=65&type=chunk) [Other Income and Other Gains/Losses](index=34&type=section&id=其他收入及其他收益及虧損) This period, the Group's other income and other gains and losses significantly increased by 113.7% to RMB 31.2 million, primarily due to a reduction in fair value losses on financial assets at fair value through profit or loss - The Group's other income and other gains and losses were approximately **RMB 31.2 million**, an increase of approximately **113.7%** compared to approximately RMB 14.6 million in the same period of 2024[66](index=66&type=chunk) - The increase was mainly due to a decrease in fair value losses on financial assets at fair value through profit or loss during this period[66](index=66&type=chunk) [Administrative and Selling Expenses](index=35&type=section&id=行政及銷售開支) The Group's total administrative and selling expenses decreased by approximately 5.7% to RMB 227.6 million this period compared to RMB 241.3 million in the same period of 2024 - The Group's total administrative and selling expenses were approximately **RMB 227.6 million**, a decrease of approximately **5.7%** compared to approximately RMB 241.3 million in the same period of 2024[67](index=67&type=chunk) [Other Expenses](index=35&type=section&id=其他開支) The Group recorded other expenses of approximately RMB 4.5 million this period, a decrease from approximately RMB 6.0 million in the same period of 2024 - The Group recorded other expenses of approximately **RMB 4.5 million**, a decrease from approximately RMB 6.0 million in the same period of 2024[68](index=68&type=chunk) [Profit Before Income Tax Expense](index=35&type=section&id=除所得稅開支前溢利) The Group's profit before income tax expense for this period was approximately RMB 348.1 million, a decrease of approximately 16.7% from RMB 417.9 million in the same period of 2024 - Profit before income tax expense was approximately **RMB 348.1 million**, a decrease of approximately **16.7%** compared to approximately RMB 417.9 million in the same period of 2024[69](index=69&type=chunk) [Income Tax Expense](index=35&type=section&id=所得稅開支) The Group's income tax expense for this period was approximately RMB 78.0 million, representing 22.4% of profit before income tax expense, a slight decrease compared to the same period in 2024 - The Group's income tax expense was approximately **RMB 78.0 million**, accounting for **22.4%** of profit before income tax expense[70](index=70&type=chunk) - In the same period of 2024, income tax expense was approximately RMB 92.5 million, accounting for 22.1% of profit before income tax expense[70](index=70&type=chunk) [Profit Attributable to Owners of the Company](index=35&type=section&id=本公司擁有人應佔溢利) For the six months ended June 30, 2025, profit attributable to owners of the Company was approximately RMB 213.8 million, a decrease of approximately 19.4% from RMB 265.1 million in the same period of 2024 - Profit attributable to owners of the Company was approximately **RMB 213.8 million**, a decrease of approximately **19.4%** compared to approximately RMB 265.1 million in the same period of 2024[71](index=71&type=chunk) [Assets and Liabilities Analysis](index=36&type=section&id=資產負債分析) This section analyzes the Group's asset and liability structure, showing decreases in non-current assets like property, plant and equipment, investment properties, and intangible assets, while goodwill remained stable; trade and bills receivables increased, cash and cash equivalents decreased, and trade and bills payables increased while contract liabilities decreased - Property, plant and equipment were approximately **RMB 88.9 million**, a decrease from approximately RMB 96.8 million as of December 31, 2024[72](index=72&type=chunk) - Investment properties were approximately **RMB 548.7 million**, a decrease from approximately RMB 549.1 million as of December 31, 2024, mainly due to changes in fair value[73](index=73&type=chunk) - Intangible assets were approximately **RMB 290.3 million**, a decrease from approximately RMB 297.6 million as of December 31, 2024, mainly due to amortization of intangible assets during this period[74](index=74&type=chunk) - Goodwill was approximately **RMB 1,488.2 million**, remaining unchanged compared to December 31, 2024[75](index=75&type=chunk) - Trade and bills receivables were approximately **RMB 2,861.2 million**, an increase from approximately RMB 2,445.0 million as of December 31, 2024, mainly due to slower collection speeds amid a downward market trend[76](index=76&type=chunk) - Cash and cash equivalents were approximately **RMB 2,241.3 million**, a decrease from approximately RMB 2,617.8 million as of December 31, 2024[78](index=78&type=chunk) - Trade and bills payables were approximately **RMB 1,518.9 million**, an increase from approximately RMB 1,307.5 million as of December 31, 2024, mainly due to business expansion[79](index=79&type=chunk) - Contract liabilities were approximately **RMB 732.2 million**, a decrease from approximately RMB 940.1 million as of December 31, 2024[81](index=81&type=chunk) [Cash Flow Analysis](index=38&type=section&id=現金流) This period, the Group generated a net cash outflow from operating activities of approximately RMB 229.9 million, primarily due to increased trade receivables; net cash outflow from investing activities was RMB 17.3 million, and net cash outflow from financing activities was approximately RMB 128.3 million - Net cash outflow from operating activities was approximately **RMB 229.9 million** (H1 2024: net inflow of approximately RMB 101.6 million), mainly due to an increase in trade and bills receivables[82](index=82&type=chunk) - Net cash outflow from investing activities was **RMB 17.3 million** (H1 2024: net inflow of approximately RMB 22.4 million), mainly due to a decrease in proceeds from the disposal of financial assets at fair value through profit or loss[82](index=82&type=chunk) - Net cash outflow from financing activities was approximately **RMB 128.3 million** (H1 2024: approximately RMB 204.8 million), mainly due to a decrease in dividend payments[82](index=82&type=chunk) [Gearing Ratio](index=38&type=section&id=資產負債比率及計算基礎) As of June 30, 2025, the Group's gearing ratio increased to 0.85% (December 31, 2024: 0.66%), calculated as the sum of long-term and short-term interest-bearing borrowings divided by total equity - As of June 30, 2025, the Group's gearing ratio was **0.85%** (December 31, 2024: 0.66%)[83](index=83&type=chunk) - The gearing ratio is calculated as the sum of long-term and short-term interest-bearing borrowings divided by total equity[83](index=83&type=chunk) [Capital Structure and Liquidity](index=39&type=section&id=資本架構) The Group's cash and bank balances are held in RMB, HKD, and USD, with all borrowings denominated in RMB at fixed interest rates; both equity attributable to owners of the Company and net current assets increased, maintaining a stable financial position - The Group's cash and bank balances are held in RMB, HKD, and USD, with all borrowings denominated in RMB and at fixed interest rates[84](index=84&type=chunk) - Equity attributable to owners of the Company was approximately **RMB 5,108.4 million** (December 31, 2024: approximately RMB 5,001.1 million)[84](index=84&type=chunk) - The Group's net current assets were approximately **RMB 2,372.4 million** (December 31, 2024: approximately RMB 2,222.4 million)[84](index=84&type=chunk) [Liquidity and Financial Resources](index=39&type=section&id=流動資金及財務資源) The Group's cash is primarily used for working capital, funded mainly by operating cash flow; as of June 30, 2025, borrowings totaled RMB 46.8 million, with certain property, plant, and equipment pledged as collateral - The Group's cash is primarily used for working capital, mainly funded by operating cash flow[85](index=85&type=chunk) - As of June 30, 2025, the Group's borrowings amounted to **RMB 46.8 million** (December 31, 2024: RMB 35.5 million)[85](index=85&type=chunk) - The Group has pledged property, plant and equipment with a carrying amount of approximately **RMB 14.9 million** as collateral for borrowings with a balance of approximately **RMB 13.9 million**[86](index=86&type=chunk) [Contingent Liabilities](index=40&type=section&id=或然負債) As of June 30, 2025, the Group had no significant unquantified contingent liabilities, and legal claims are not expected to materially adversely affect its business, financial position, or operating results - As of June 30, 2025, the Group had no significant unquantified contingent liabilities[87](index=87&type=chunk) - The Group is involved in certain legal claims arising in the ordinary and daily course of business, which, after considering relevant legal advice, are not expected to have any material adverse effect on its business, financial position, or operating results[87](index=87&type=chunk) [Material Investments and Future Plans](index=40&type=section&id=持有的重大投資) As of June 30, 2025, the Group held no material investments, made no significant acquisitions or disposals of subsidiaries, associates, or joint ventures, and had no immediate future plans for material investments or capital assets - As of June 30, 2025, the Group held no material investments[88](index=88&type=chunk) - For the six months ended June 30, 2025, the Group did not have any material acquisitions or disposals of subsidiaries, associates, or joint ventures[89](index=89&type=chunk) - As of June 30, 2025, the Group had no immediate plans for any material investments and capital assets[90](index=90&type=chunk) [Interest Rate Risk](index=41&type=section&id=利率風險) The Group's interest rate risk is limited to market risk from interest rate changes, primarily related to floating-rate bank balances, which management mitigates through monitoring and prudent measures - The Group's interest rate risk is limited to market risk arising from changes in interest rates, which is primarily related to floating-rate bank balances[91](index=91&type=chunk) - Management monitors interest rate risk and takes prudent measures to mitigate it[91](index=91&type=chunk) [Foreign Exchange Risk](index=41&type=section&id=外匯風險) The Group's primary operations are in China, with most revenue and expenses denominated in RMB, while some bank balances are in HKD and USD; no contracts are currently in place to hedge foreign exchange risk, but management continuously monitors and takes prudent measures - The Group's principal operations are conducted in China, and the majority of the Group's revenue and expenses are denominated in RMB[92](index=92&type=chunk) - Certain bank balances are denominated in HKD and USD[92](index=92&type=chunk) - Currently, the Group has not entered into any contracts to hedge its foreign exchange risk, but management will continue to monitor foreign exchange risk and take prudent measures to mitigate it[92](index=92&type=chunk) [Employment and Remuneration Policies](index=41&type=section&id=僱傭及薪酬政策) The Group adopts remuneration policies comparable to industry peers, based on responsibilities, market levels, and performance, and contributes to social welfare schemes; as of June 30, 2025, the Group employed 22,072 staff - The Group adopts remuneration policies similar to its peers, with employee remuneration determined by reference to their responsibilities and current market levels in the region[93](index=93&type=chunk) - Discretionary performance bonuses are paid to employees after evaluation, and the Group participates in various social welfare schemes in accordance with applicable statutory requirements in China[93](index=93&type=chunk) - As of June 30, 2025, the Group employed **22,072 staff** (December 31, 2024: 25,734 staff)[93](index=93&type=chunk) [Other Information](index=41&type=section&id=其他信息) [Use of Proceeds from Initial Public Offering](index=41&type=section&id=首次公開發售籌集所得款項用途) This section reviews the planned and actual use of net proceeds from the Company's IPO; as of June 30, 2025, most funds were utilized as planned, with remaining amounts primarily for developing a one-stop service community platform and 'Yue Life' online service platform - The Company raised net proceeds of approximately **HKD 619.8 million** from its initial public offering and an additional approximately **HKD 63.2 million** from the partial exercise of the over-allotment option on January 4, 2019[94](index=94&type=chunk) - The net proceeds were originally planned for strategic acquisitions and investment opportunities (**55%**), establishing smart communities and utilizing internet technology (**26%**), developing a one-stop service community platform (**9%**), and general corporate purposes (**10%**)[95](index=95&type=chunk) Use of Net Proceeds from Initial Public Offering (HKD Million) | Use | Net Proceeds Percentage | Net Proceeds Allocated (as of Jan 1, 2025) | Amount Utilized During Period (up to June 30, 2025) | Amount Utilized (as of June 30, 2025) | Unutilized Amount | Expected Timeline for Unutilized Net Proceeds | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Strategic acquisitions and investment opportunities | 55% | 375.6 | — | 375.6 | — | Not applicable | | Utilizing latest internet and information technology and establishing smart communities | 26% | 177.6 | — | 177.6 | — | Not applicable | | Developing a one-stop service community platform and our "Yue Life" online service platform | 9% | 61.5 | 17.8 | 48.3 | 13.2 | Before December 31, 2025 | | General corporate purposes and working capital | 10% | 68.3 | — | 68.3 | — | Not applicable | | **Total Net Proceeds** | **100%** | **683.0** | **17.8** | **669.8** | **13.2** | | [2020 Placing and Subscription](index=44&type=section&id=2020年配售事項及2020年認購事項) This section details the completion of the 2020 Placing and Subscription, where the Company received net proceeds of approximately HKD 1,564.5 million, primarily allocated for strategic acquisitions, IT-related development, and working capital/general corporate purposes - The 2020 Placing and 2020 Subscription were completed on June 8, 2020, and June 16, 2020, respectively, with a placing price of **HKD 11.78 per share**[99](index=99&type=chunk) - The Company received net proceeds of approximately **HKD 1,564,476,000** from the 2020 Subscription[100](index=100&type=chunk) Use of Net Proceeds from 2020 Subscription (HKD Million) | Use | Net Proceeds Percentage | Net Proceeds Allocated (HKD Million) | Unutilized Amount (as of Jan 1, 2025) | Amount Utilized During Period (up to June 30, 2025) | Amount Utilized (as of June 30, 2025) | Unutilized Amount (as of June 30, 2025) | Expected Timeline for Unutilized Net Proceeds | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Strategic acquisitions and investment opportunities | 80% | 1,251.6 | — | — | 1,251.6 | — | Not applicable | | Information technology related development | 5% | 78.2 | 36.8 | 0.9 | 42.3 | 35.9 | Before December 31, 2025 | | Working capital and general corporate purposes | 15% | 234.7 | — | — | 234.7 | — | Not applicable | | **Total** | **100%** | **1,564.5** | **36.8** | **0.9** | **1,528.6** | **35.9** | | [Dividend Policy](index=46&type=section&id=中期股息及特別股息) The Board resolved to declare an interim dividend of HKD 0.0678 per share and a special dividend of HKD 0.0271 per share for the six months ended June 30, 2025; share transfer registration will be suspended from September 4 to September 8, 2025, to determine dividend entitlements - The Board has resolved to declare an interim dividend of **HKD 0.0678 per share** and a special dividend of **HKD 0.0271 per share** for the six months ended June 30, 2025, totaling approximately **HKD 117.2 million** and approximately **HKD 46.8 million** respectively[101](index=101&type=chunk) - The interim dividend and special dividend are expected to be paid on **September 15, 2025**, to shareholders whose names appear on the Company's register of members at the close of business on September 8, 2025[101](index=101&type=chunk) - The Company will suspend share transfer registration from **September 4, 2025, to September 8, 2025** (both dates inclusive), to determine dividend entitlements[102](index=102&type=chunk) [Corporate Governance](index=46&type=section&id=遵守企業管治守則) The Company applied good corporate governance principles and complied with the Corporate Governance Code provisions in Appendix C1 Part 2 of the HKEX Listing Rules during this period - The Company has applied the principles of good corporate governance and complied with the code provisions set out in the Corporate Governance Code in Appendix C1 Part 2 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[103](index=103&type=chunk) [Standard Code for Securities Transactions by Directors](index=46&type=section&id=董事進行證券交易的標準守則) The Company adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules, and all directors confirmed compliance during this period after specific inquiry - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules as the code of conduct for directors' securities transactions[104](index=104&type=chunk) - Following specific inquiries made to all directors, all directors confirmed compliance with the Standard Code during this period[104](index=104&type=chunk) [Audit Committee](index=47&type=section&id=審核委員會及審閱中期業績) The Audit Committee, comprising three independent non-executive directors with Mr. Zhang Weicong as Chairman, reviewed the unaudited interim results for the six months ended June 30, 2025, without disagreement with the Board on auditor recommendations - The Audit Committee comprises three independent non-executive directors, namely Mr. Yu Tiecheng, Mr. Ma Yongyi, and Mr. Zhang Weicong, with Mr. Zhang Weicong serving as Chairman[105](index=105&type=chunk) - The Audit Committee has reviewed the unaudited interim results for the six months ended June 30, 2025, and there were no disagreements with the Board regarding any recommendations provided by the external auditors concerning their selection, appointment, dismissal, or removal[105](index=105&type=chunk) - The Company's auditor, BDO Limited, has reviewed the Group's unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025[105](index=105&type=chunk) [Dealings in Listed Securities](index=47&type=section&id=購買、出售或贖回本公司上市證券) During this period, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and as of June 30, 2025, the Company held no treasury shares - During this period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities (including the sale or transfer of treasury shares)[106](index=106&type=chunk) - As of June 30, 2025, the Company held no treasury shares[106](index=106&type=chunk) [Events After Reporting Period](index=47&type=section&id=報告期後事項) No discloseable events that could materially impact the Group's operations and financial results occurred after June 30, 2025, up to the date of this announcement - No discloseable events that could materially impact the Group's operations and financial results occurred after June 30, 2025, up to the date of this announcement[107](index=107&type=chunk) [Publication of Interim Results](index=48&type=section&id=刊發中期業績公告及中期報告) The Company's interim report for the six months ended June 30, 2025, containing all information required by the Listing Rules, will be dispatched to shareholders and published on the HKEX and Company websites in due course - The Company's interim report for the six months ended June 30, 2025, containing all information required by the Listing Rules, will be dispatched to shareholders (upon request) in due course[108](index=108&type=chunk) - The interim report will be published on the HKEX website www.hkexnews.hk and the Company's website www.ysservice.com.cn[108](index=108&type=chunk) [Acknowledgements and Board of Directors](index=48&type=section&id=致謝) Chairman Lin Zhong, on behalf of the Board, expressed sincere gratitude to customers, suppliers, shareholders, and all management and staff for their support and contributions during this period, and listed the Board members as of the announcement date - Chairman Lin Zhong, on behalf of the Board, sincerely thanked customers, suppliers, and shareholders for their continuous support to the Group, and also expressed gratitude to all management and staff for their hard work and contributions during this period[109](index=109&type=chunk) - As of the date of this announcement, the executive directors are Mr. Lin Zhong, Mr. Zhou Hongbin, and Mr. Zhou Di; the non-executive directors are Ms. Cui Xiaoqing and Mr. Lin Zhubo; and the independent non-executive directors are Mr. Ma Yongyi, Mr. Yu Tiecheng, and Mr. Zhang Weicong[110](index=110&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 EVERBRIGHT GRAND CHINA ASSETS LIMITED 光大永年有限公司 （於英屬維爾京群島註冊成立並以存續方式 在開曼群島註冊的有限公司） （股份代號：3699） 截至2025年6月30日止六個月中期業績公告 財務摘要 光大永年有限公司（「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日止六個月的未經審核財務業績， 連同2024年同期的比較數字。中期財務業績雖未經審核，惟本公司已聘請畢馬 威會計師事務所（「畢馬威」）按照香港會計師公會頒佈之香港審閱工作準則第 2410號「由實體之獨立核數師執行之中期財務資料審閱」審閱中期財務業績。畢 馬威就中期財務資料之審閱而出具之報告載於即將寄予本公司股東（「股東」） 之中期報告內。中期財務業績亦已由審核委員會審閱。 – 1 – ‧ 收益約為人民幣24.5百萬元，較2024年增加約人 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因依賴 該等內容而引致的任何損失承擔任何責任。 Pharmaron Beijing Co., Ltd. 康 龍 化 成（ 北 京 ）新 藥 技 術 股 份 有 限 公 司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：3759） 截至2025年6月30日止六個月中期業績公告 財務摘要及要點 | | 截至6月30日止六個月 | | | | --- | --- | --- | --- | | | 2025年 | 2024年 | 變動 | | | 人民幣千元 | 人民幣千元 | % | | 收益 | 6,440,951 | 5,604,463 | 14.9 | | 毛利 | 2,172,201 | 1,848,051 | 17.5 | | 母公司擁有人應佔利潤 | 701,396 | 1,113,403 | (37.0) | | 母公司擁有人應佔非國際財務報告 | | | | | 準則經調整淨利潤 | 755,701 | 690,266 | 9.5 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 Mulsanne Group Holding Limited 慕尚集團控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1817） 截至2025年6月30日止六個月之中期業績公告 財務摘要 慕尚集團控股有限公司（「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（「本期間」）之中期業 績，連同2024年同期的比較數字。 1 • 截至2025年6月30日止六個月，自營店的銷售額保持相對穩定為人民幣 448.7百萬元，2024年同期則為人民幣456.5百萬元。其中，GXG自營店的 銷售額亦保持相對穩定。 • 於本期間，通過降本增效措施，本集團加強了費用控制。行政開支和財務 成本佔收入的比重分別下降至8.6%及1.7%，2024年同期則分別為10.3%及 2.7%。 • 截至2025年6月30日止六個月的淨利潤約為人民幣8.9百 ...