Core Viewpoint - The company reported a revenue of HKD 269 million for the six months ending September 30, 2025, reflecting a year-on-year increase of 8.47% [1] - The profit attributable to shareholders was HKD 19.174 million, representing a year-on-year growth of 17.55% [1] - The basic earnings per share stood at HKD 0.024 [1] - An interim dividend of HKD 0.005 per share was declared [1] Revenue Drivers - The increase in revenue was primarily due to higher electromechanical service income associated with the construction progress of residential development projects in Wong Chuk Hang, the Hong Kong Chinese Medicine Hospital, and the first phase of the Hong Kong-Shenzhen Innovation and Technology Park [1] - Additionally, the trading of construction materials contributed approximately HKD 5.306 million to the revenue [1]

Core Viewpoint - The company reported a revenue increase of 8.47% year-on-year, driven by growth in mechanical and electrical service income related to various construction projects [1] Financial Performance - Revenue for the six months ending September 30, 2025, was HKD 269 million [1] - Profit attributable to shareholders was HKD 19.174 million, reflecting a year-on-year increase of 17.55% [1] - Basic earnings per share were HKD 0.024 [1] - Interim dividend declared was HKD 0.005 per share [1] Revenue Drivers - The increase in revenue was primarily due to the construction progress of residential development projects in Wong Chuk Hang, the Hong Kong Chinese Medicine Hospital, and the first phase of the Hong Kong-Shenzhen Innovation and Technology Park [1] - Additionally, the trading of construction materials contributed approximately HKD 5.306 million to the revenue [1]

Core Insights - The company is facing a "growth dilemma" with both revenue and profit declining despite some recovery in the property management sector [1] - The decline in value-added services, which were previously a key growth area, has negatively impacted overall performance [1][2] - The company has opted not to distribute interim dividends due to ongoing cash flow challenges [2] Revenue and Profit Summary - For the first half of 2025, the company reported revenue of 2.015 billion yuan, a year-on-year decrease of 3.2% [1] - Basic property management service revenue increased by 5.0% to 1.8 billion yuan, accounting for approximately 89.4% of total revenue [1] - Value-added service revenue dropped from 349 million yuan in 2024 to 196 million yuan, a decline of 43.7%, representing about 9.7% of total revenue [1] - Gross profit for the first half of 2025 was 379 million yuan, down 10.2% year-on-year, while net profit fell by 11.7% to 162 million yuan [2] Cash Flow and Financial Position - The company has experienced a marginal improvement in operating cash flow, which remains negative at -10 million yuan for the first half of 2025 [2] - The board has decided against paying interim dividends to prioritize operational capital for long-term stability [2] - A significant transaction involving the transfer of assets worth 363 million yuan from a related party has raised concerns about the company's reliance on its affiliates [3][4] Related Party Transactions - The company entered into a settlement agreement with a related party, involving the conditional transfer of assets to offset debts [3] - This transaction is seen as a "debt repayment alternative" due to the ongoing financial strain in the real estate market [3][5] - While the transaction reduces accounts receivable by 363 million yuan, it does not provide actual cash inflow, leaving the company’s cash flow situation unchanged [4] Business Structure and Strategy - The company is making efforts to reduce its dependence on related parties, with third-party managed property area increasing to 62.7% [5][6] - Non-affiliated business revenue has risen to 92%, with third-party self-developed income growing by 26.9% [5] - The company views the acquired assets as strategically valuable, aiming to leverage them for better asset management in a challenging market [6]