Core Viewpoint - The company reported a significant decline in profit despite a slight increase in revenue, primarily due to geopolitical tensions and rumors affecting tourism demand in Japan [1] Financial Performance - Revenue for the six months ending June 30, 2025, was HKD 692 million, an increase of 8.9% year-on-year [1] - Profit attributable to owners was HKD 5.787 million, a decrease of 83% year-on-year [1] - Basic earnings per share were HKD 0.0115 [1] Industry Context - The global economy is facing challenges due to escalating geopolitical tensions and international trade disputes [1] - Evolving tariffs have increased uncertainty, severely disrupting global trade and investment [1] - Rumors of a major earthquake in Japan, originating from a 30-year-old manga, have circulated widely on social media, leading to a sharp decline in tourism demand [1] Business Strategy Impact - The company's focus on Japan-centric tourism products and services has resulted in a significant reduction in revenue and gross profit from tourism-related operations [1] - Despite satisfactory performance in the hotel business, the overall net profit for the first half of 2025 saw a substantial decrease [1]

Group 1 - The European Central Bank (ECB) President Lagarde indicated that the eurozone's economic growth is expected to slow in the third quarter due to the impact of U.S. tariff policies [1] - Despite the global economy maintaining growth, the eurozone's resilience is being distorted by high tariff policies, which have affected economic activities [1] - In the first quarter, importers increased inventory to avoid tariff impacts, which temporarily boosted international trade and investment activities, contributing to economic growth [1] Group 2 - The pharmaceutical industry, which has a high export ratio to the U.S., experienced growth exceeding expectations in the first quarter due to the tariff policy [1] - However, as the tariff policies took effect, the positive impact began to reverse, leading to a slowdown in eurozone economic growth that was already evident in the second quarter [1] - Lagarde emphasized the importance of diversifying trade relationships while acknowledging that the U.S. remains a significant trade partner for Europe [1]

Group 1: Economic Challenges - The global economy is facing a slowdown in real economic growth, characterized by low potential output growth, fiscal vulnerabilities, and increased macro-financial risks [1][2] - Factors contributing to the slowdown include declining productivity, aging populations, and challenges posed by technological changes [2] - Trade fragmentation and rising protectionism are exacerbating the decline in economic and productivity growth, leading to increased sensitivity of output changes to inflation [2] Group 2: Fiscal Vulnerabilities - Many countries are experiencing high levels of public debt, reaching or exceeding peacetime highs, which increases their vulnerability to inflation and financial stability [2] - The sustainability of fiscal policies is becoming a pressing issue due to rising costs associated with aging populations, pensions, healthcare, and infrastructure investments [2] - Maintaining fiscal sustainability is crucial for reducing risks and ensuring economic stability [2] Group 3: Macro-Financial Risks - There is a shift from bank-based financial intermediation to non-bank financial sectors, leading to increased credit and liquidity risks in non-bank financial institutions [3] - The rapid growth of private credit funds and the role of non-bank financial institutions in cross-border transactions contribute to heightened vulnerabilities in financial markets [3] - Recommendations include reducing market rigidity, increasing public investment, strengthening fiscal frameworks, and ensuring debt sustainability to address these challenges [3]