Interim Report 2024/2025

CONTENTS

- 1 -

CORPORATE INFORMATION

• Chairman of the relevant committee

- 2 -

CORPORATE INFORMATION (Continued)

- 3 -

MANAGEMENT DISCUSSION ON RESULTS

The board of Directors (the "Board") of Chuang's Consortium International Limited (the "Company") presents the interim report including the condensed consolidated interim financial information of the Company and its subsidiaries (collectively as the "Group") for the six months ended 30 September 2024. The condensed consolidated income statement, the condensed consolidated statement of comprehensive income, the condensed consolidated cash flow statement and the condensed consolidated statement of changes in equity for the six months ended 30 September 2024, and the condensed consolidated balance sheet as at 30 September 2024 along with the notes thereon, are set out on pages 31 to 52 of this report.

HIGHLIGHTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2024

Business

1. As announced on 9 May 2024, the Group entered into an agreement with an independent third party to dispose of International Financial Centre, an office building in Mongolia for a consideration of approximately US$33 million (equivalent to approximately HK$256.7 million). The disposal was completed on 19 June 2024. Net cash proceed of approximately HK$254 million was received and has strengthened the Group's financial position. A net gain on the disposal of approximately HK$25.8 million was recorded during the period under review.
2. For ARUNA, the Ap Lei Chau project, it is developed into a 27-storey residential/commercial building comprising 105 residential units with clubhouse facilities and retail units at the podium levels. Construction works had been completed and occupation permit had been obtained on 13 June 2024. Pre-sale had commenced in April 2024 and a total of 33 residential units have been launched to the market for sale. Up to the date of this report, 10 units have been sold with an aggregate sale amount of about HK$43.7 million, in which 4 units have been handed-over to the end buyers after the period ended 30 September 2024. The Group will closely monitor the property market in Hong Kong for marketing and selling the remaining residential units. In parallel, the Group is in preparation to lease certain residential units in near future in order to generate rental income and enhance footprint in ARUNA.

- 4 -

MANAGEMENT DISCUSSION ON RESULTS (Continued)

HIGHLIGHTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2024

(Continued)

Business (Continued)

1. For ONE SOHO, the joint venture project at Mongkok, occupation permit and certificate of compliance had been obtained in March 2023 and July 2023 respectively. Up to the date of this report, all 322 residential units have been sold with an aggregate consideration of about HK$2.2 billion, in which 213 units with an aggregate consideration of about HK$1.5 billion have been handed-over to the end buyers in the last financial year. A further 101 units with an aggregate consideration of about HK$0.6 billion had been handed-over during the period under review. Besides, 9 carparking spaces with aggregate consideration of about HK$13.8 million had been sold and handed-over in this period. The joint venture company will continue to sell the remaining 3 carparking spaces of this project.
2. For Po Shan Road joint venture project, the Group is developing the property into one vertical house with 8 storeys over the podium. The 8-storey house will include a luxury living and dining area with 6m floor-to-floor height, an entertainment floor and 6 residential suite floors with at least 3.5m floor-to- floor height. The proposed GFA for the house is about 44,431 sq. ft., with an additional area of about 5,400 sq. ft. for garden and about 3,477 sq. ft. for roof. The superstructure works had been completed in July 2024, and the occupation permit was just obtained on 30 September 2024. External finishing of the property, balconies stone paving works and garden hard landscaping works are in progress and will be completed in the first quarter of 2025. Marketing work for the house is in progress.
3. For the redevelopment project at Gage Street, the Group has successfully consolidated this project with a total site area of about 3,600 sq. ft.. General building plans of the project to develop a 26-storey residential/commercial building comprising clubhouse facilities and retail units with GFA of about 34,675 sq. ft. have been approved. Foundation works are currently at the final stage and will be completed in the first quarter of 2025.

- 5 -

MANAGEMENT DISCUSSION ON RESULTS (Continued)

HIGHLIGHTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2024

(Continued)

Financial

• Total cash resources of the Group (including bond and securities investments) amounted to HK$2.0 billion, in which cash and bank balances aggregated to approximately HK$1.9 billion.
• Net assets attributable to equity holders of the Company amounted to
  HK$8,000.1 million.
• Net debt to equity ratio of the Group is 15.1%.
• Loss attributable to equity holders of the Company amounted to HK$292.8 million, representing a reduction of loss of about 39.6%.

FINANCIAL REVIEW

For the six months ended 30 September 2024, revenues of the Group decreased to HK$92.5 million (2023: HK$215.7 million) mainly due to the absence of sales of properties of HK$121.9 million recorded for the last corresponding period. Revenues of the Group comprised of revenues from rental and other income of investment properties of HK$74.1 million (2023: HK$64.5 million), revenues from cemetery business of HK$10.3 million (2023: HK$9.1 million), revenues from sales of goods and merchandises of HK$5.2 million (2023: HK$5.4 million), revenues from money lending business of HK$0.5 million (2023: HK$0.6 million), and revenues from securities investment and trading business of HK$2.4 million (2023: HK$14.2 million).

During the period under review, gross profit of HK$19.0 million was recorded (2023: gross loss of HK$20.3 million was recorded which was attributable to the impairment provision for properties for sale of the Group). Gross profit margin was 20.6% (2023: not applicable).

- 6 -

MANAGEMENT DISCUSSION ON RESULTS (Continued)

FINANCIAL REVIEW (Continued)

Other income and net loss amounted to a net income of HK$44.2 million (2023: net loss of HK$176.2 million) which was mainly due to the decrease in net loss of bond and securities investments recorded during the period under review. A breakdown of other income and net loss is shown in note 7A on page 44 of this report. Gain from disposal of a subsidiary of HK$25.8 million (2023: nil) during the period represented the gain on disposal of a subsidiary that held the investment property in Mongolia as announced by the Company on 9 May 2024. Loss from change in fair value of investment properties of the Group amounted to HK$244.5 million (2023: HK$206.3 million) mainly due to the decrease in fair value of the investment properties of the Group under the current property market.

On the costs side, selling and marketing expenses increased to HK$14.1 million (2023: HK$12.7 million) principally due to the increase in sales activities during the period. Administrative and other operating expenses amounted to HK$145.1 million (2023: HK$117.3 million) which included a provision for impairment of about HK$35.7 million (2023: nil) for a development site in the People's Republic of China (the "PRC"). Excluding this provision, the administrative and other operating expenses would amount to about HK$109.4 million (2023: HK$117.3 million), which represented a decrease of about 6.7% comparing to that of the last corresponding period. Finance costs decreased to HK$73.8 million (2023: HK$78.8 million) mainly due to the decrease in level of bank borrowings during the period. Share of loss of associated companies amounted to HK$1.1 million (2023: HK$1.1 million). Share of profit of joint ventures decreased to HK$3.8 million (2023: HK$30.6 million) mainly due to the decrease in recognition of completed sales of properties of a joint venture during the period. Taxation credit amounted to HK$23.7 million (2023: HK$15.5 million) mainly due to the reversal of deferred taxation arising from the fair value loss of investment properties recorded during the period.

Taking into account the above, loss attributable to equity holders of the Company for the six months ended 30 September 2024 amounted to HK$292.8 million (2023: HK$484.8 million), representing a reduction of loss of about 39.6%. Loss per share was 17.51 HK cents (2023: 28.99 HK cents).

- 7 -

MANAGEMENT DISCUSSION ON RESULTS (Continued)

INTERIM DIVIDEND

After taking into account the need to maintain sufficient financial resources for the working capital of the Group's projects and businesses, in particular under the current uncertain business environment, the Board has resolved not to declare an interim dividend for the six months ended 30 September 2024 (2023: nil).

BUSINESS REVIEW

1. Investment Properties
2. 1. Chuang's Tower, Nos. 30-32 Connaught Road Central, Hong Kong (100% owned)
      The property is a commercial/office building and is strategically located at the heart of Central District and close to the exits of both the Central Station of the Mass Transit Railway and the Hong Kong Station of the Airport Express Line. The property has a site area of about 3,692 sq. ft. and a total gross floor area ("GFA") of about 55,367 sq. ft.. During the period, rental and other income from this property amounted to about HK$18.0 million. With the increase in leasing supply from the newly completed properties in the district, the competition of leasing activities is more keen. The Group would be more flexible on tenant selection as well as tenancy period in order to maintain its competitiveness.
   2. Chuang's London Plaza, No. 219 Nathan Road, Tsim Sha Tsui, Kowloon (100% owned)
      Strategically located at the heart of shopping centres in Tsim Sha Tsui, Kowloon, and near the exits of the Mass Transit Railway and the Guangzhou-Shenzhen-Hong Kong Express Rail Link Hong Kong Section, the property is a shopping and entertainment complex. The property has a site area of about 9,145 sq. ft. and a total GFA of about 103,070 sq. ft.. During the period, the Group has improved the trade mix of tenants which resulted in an increase in the popularity and footprint of the plaza. As such, rental and other income from this property increased to about HK$27.2 million. The Group will continue to explore more marketing ideas on leasing so as to further enhance the yield of the property.

- 8 -

MANAGEMENT DISCUSSION ON RESULTS (Continued)

BUSINESS REVIEW (Continued)

1. Investment Properties (Continued)
2. 1. Posco Building, No. 165 Un Chau Street, Sham Shui Po, Kowloon (100% owned)
      The property is a commercial/industrial building located in between the Cheung Sha Wan (approximately 0.4 kilometre) and the Sham Shui Po (approximately 0.5 kilometre) Mass Transit Railway Stations, enjoying the convenience of good transportation network. The property has a site area of about 3,920 sq. ft. and a total GFA of about 47,258 sq. ft.. During the period, rental and other income from this property amounted to about HK$5.1 million. Currently, the property is for commercial (G/F to 3/F and 12/F) and industrial (4/F to 11/F) use. Building plans to redevelop the property into a commercial/residential property with a total GFA of about 35,280 sq. ft. had been approved by the Buildings Department. Considering the current downward trend of mass residential property market, the Group will evaluate the best timing to carry out such redevelopment (if any).
   2. House A, No. 37 Island Road, Deep Water Bay, Hong Kong (100% owned)
      Located at Deep Water Bay, a prestigious residential area, the property enjoys a glamourous sea-view. Marketing work for the house with the new decoration is in progress. The Group will adopt a flexible strategy in considering various options such as disposal in order to maximize return from this investment.
   3. 1st to 3rd Floors of Peng Building, Luohu District, Shenzhen, the PRC (100% owned)
      This property is located next to an exit of Honghu Station of Line 7, Shenzhen Metro, and it is for commercial use with a total gross area of about 5,318 sq. m.. The Group leased out the property in March 2022 to an independent third party for 10 years to operate it as a medical centre at current monthly rental of RMB714,000, with a step up by 5% for every 2 years.

- 9 -