Wong's International Holdings LimitedHKEX: 99

Interim report for 2025

Sep 11, 2025 at 8:53 AM UTC · Issued by Wong's International Holdings Limited

WONG'S INTERNATIONAL HOLDINGS LIMITED 王氏國際集團有限公司

(Incorporated in Bermuda with limited liability)

INTERIM REPORT FOR 2025

The board of directors (the "Board" or "Directors") of Wong's International Holdings Limited (the "Company") hereby presents the unaudited condensed consolidated interim financial information of the Company and its subsidiaries (the "Group") for the six months ended 30 June 2025 as follows:

CONDENSED CONSOLIDATED INTERIM INCOME STATEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2025

Unaudited

	Note	2025 HK$'000	2024 HK$'000
Revenue	6	1,302,141	1,224,403
Other income		751	1,564
Changes in inventories of finished goods
and work in progress		(23,647)	(51,128)
Raw materials and consumables used		(924,648)	(826,599)
Employee benefit expenses		(170,431)	(176,968)
Depreciation	7	(21,064)	(26,229)
Other operating expenses	7	(68,702)	(67,718)
Change in fair value of investment properties	13	(107,196)	(210,927)
Other (losses)/gains - net	8	(7,794)	10,977
Provision for write-down of stock of
completed properties		(11,760)	(21,560)
Provision for impairment losses on trade
receivables	15	(22)	(20)
Operating loss		(32,372)	(144,205)
Finance income	9	12,336	10,696
Finance costs	9	(35,729)	(37,385)
Share of losses of joint ventures	14	(83,321)	(200,847)
Loss before income tax		(139,086)	(371,741)
Income tax expense	10	(19,344)	(17,175)
Loss after income tax		(158,430)	(388,916)
Loss attributable to owners of the Company		(158,430)	(388,916)
Dividends	11	13,158	13,158
Losses per share attributable to owners of
the Company during the period
Basic	12	(HK$0.33)	(HK$0.81)
Diluted	12	(HK$0.33)	(HK$0.81)

The notes on pages 7 to 31 are an integral part of this condensed consolidated interim financial information.

COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2025

Unaudited

2025 2024

HK$'000 HK$'000

Loss for the period (158,430) (388,916)

Other comprehensive income:

Items that may be reclassified to consolidated income statement:

Cash flow hedge - fair value (losses)/gains

for the period (31,236) 14,851

Cash flow hedge - deferred income tax

recognised 5,154 (2,450)

Currency translation differences:

- Group 79,545 (59,230)

Items that will not be reclassified subsequently to consolidated income statement:

(Loss)/gain on disposal of financial assets at fair

value through other comprehensive income

(249)

312

Changes in fair value of financial assets at fair value through other comprehensive income

(6,637)

(12,875)

Other comprehensive income/(loss)

for the period, net of tax 46,577 (59,392)

Total comprehensive loss for the period

attributable to the owners of the Company (111,853) (448,308)

The notes on pages 7 to 31 are an integral part of this condensed consolidated interim financial information.

		Unaudited	Audited
		As at	As at
		30 June	31 December
	Note	2025 HK$'000	2024 HK$'000
ASSETS
Non-current assets
Property, plant and equipment	13	181,182	190,494
Investment properties	13	1,366,723	1,473,317
Right-of-use assets		114,532	79,977
Interests in joint ventures	14	1,493,969	1,591,570
Financial assets at fair value through
other comprehensive income		62,523	71,185
Deferred income tax assets		17,648	15,164
Deposits and other receivables		28,184	27,050
Derivative financial instruments		-	11,541
Restricted cash		-	531
		3,264,761	3,460,829
Current assets
Inventories		260,108	258,714
Stock of completed properties		148,384	160,144
Trade receivables	15	788,447	865,107
Prepayments, deposits and other
receivables		55,552	76,070
Financial assets at fair value through
other comprehensive income		18	31
Derivative financial instruments		-	1,987
Current income tax recoverable		784	1,009
Restricted cash		119,968	116,814
Short-term bank deposits		423,543	498,285
Cash and cash equivalents		883,592	719,846
		2,680,396	2,698,007
Total assets		5,945,157	6,158,836

(continued)
		Unaudited	Audited
		As at	As at
		30 June	31 December
	Note	2025 HK$'000	2024 HK$'000
EQUITY
Equity attributable to owners
of the Company
Share capital	18	47,848	47,848
Other reserves		424,613	376,815
Retained earnings
- Dividends		13,158	14,355
- Others		2,905,575	3,078,384
Total equity		3,391,194	3,517,402
LIABILITIES
Non-current liabilities
Derivative financial instruments		9,396	-
Accruals and other payables		5,899	6,120
Lease liabilities		26,625	-
Deferred income tax liabilities		69,157	81,523
Borrowings	17	741,026	876,430
		852,103	964,073
Current liabilities
Trade payables	16	541,104	548,021
Accruals and other payables		210,466	222,369
Contract liabilities		114,441	133,620
Lease liabilities		11,087	1,714
Derivative financial instruments		8,312	-
Current income tax liabilities		24,696	29,139
Borrowings	17	791,754	742,498
		1,701,860	1,677,361
Total liabilities		2,553,963	2,641,434
Total equity and liabilities		5,945,157	6,158,836

The notes on pages 7 to 31 are an integral part of this condensed consolidated interim financial information.

Unaudited Attributable to owners of the Company

	Share capital		Share premium		Other reserves		Total
	HK$'000		HK$'000		HK$'000		HK$'000
As at 1 January 2025	47,848		153,025		3,316,529		3,517,402
Comprehensive income Loss for the period	-		-		(158,430)		(158,430)
Other comprehensive income Currency translation differences	-		-		79,545		79,545
Loss on disposal of financial assets at fair value through other comprehensive income	-		-		(249)		(249)
Changes in fair value of financial assets at fair value through other comprehensive income	-		-		(6,637)		(6,637)
Cash flow hedge - fair value losses for the period	-		-		(31,236)		(31,236)
Cash flow hedge - deferred income tax recognised	-		-		5,154		5,154
Total other comprehensive income	-		-		46,577		46,577
Total comprehensive loss	-		-		(111,853)		(111,853)
Transactions with owners Dividend paid to owners of the Company	-		-		(14,355)		(14,355)
Total transactions with owners	-		-		(14,355)		(14,355)
As at 30 June 2025	47,848		153,025		3,190,321		3,391,194
As at 1 January 2024	47,848		153,025		4,273,394		4,474,267
Comprehensive income Loss for the period	-		-		(388,916)		(388,916)
Other comprehensive income Currency translation differences	-		-		(59,230)		(59,230)
Gain on disposal of financial assets at fair
value through other comprehensive income -		-		312		312
value through other comprehensive income -		-		(12,875)		(12,875)
Cash flow hedge - fair value gains for the period	-		-		14,851		14,851
Cash flow hedge - deferred income tax recognised	-		-		(2,450)		(2,450)
Total other comprehensive loss	-		-		(59,392)		(59,392)
Total comprehensive loss	-		-		(448,308)		(448,308)
Transactions with owners Dividend paid to owners of the Company	-		-		(14,355)		(14,355)
Total transactions with owners	-		-		(14,355)		(14,355)
As at 30 June 2024	47,848		153,025		3,810,731		4,011,604

Changes in fair value of financial assets at fair

The notes on pages 7 to 31 are an integral part of this condensed consolidated interim financial information.

Unaudited

For the six months ended 30 June

	2025 HK$'000	2024 HK$'000
Cash flows from operating activities
Net cash generated from operating activities	116,306	153,378
Cash flows from investing activities
Purchase of property, plant and equipment	(4,501)	(10,347)
Proceeds from disposal of property, plant and
equipment	898	1,665
Dividend received from financial assets at fair
value through other comprehensive income	-	252
Proceeds from disposal of investment in
financial assets at fair value through other
comprehensive income	2,309	7,270
Decrease/(increase) in short-term bank deposits	86,954	(424,116)
Decrease in restricted cash	1,021	662
Repayment from joint ventures	14,280	18,207
Interest received	12,336	10,696

Net cash generated from/(used in) investing

activities 113,297 (395,711)

Cash flows from financing activities

Increase/(decrease) in trust receipt bank loans - net	60,055	(160,672)
New bank loans	148,000	114,180
Repayment of bank loans	(294,203)	(203,268)
Payment of lease payment	(5,154)	(6,853)
Dividends paid	(14,355)	(14,355)
Net cash used in financing activities	(105,657)	(270,968)
Net increase/(decrease) in cash and cash equivalents	123,946	(513,301)
Cash and cash equivalents at beginning of the period	719,846	942,040
Currency translation differences	39,800	(5,623)
Cash and cash equivalents at end of the period	883,592	423,116
Analysis of cash and cash equivalents: Cash on hand	433	366
Cash at bank	883,159	422,750
Cash and cash equivalents at end of the period	883,592	423,116

The notes on pages 7 to 31 are an integral part of this condensed consolidated interim financial information.

Wong's International Holdings Limited (the "Company") and its subsidiaries (together the "Group") are principally engaged in the development, manufacture, marketing and distribution of electronics products as well as property holding.

This condensed consolidated interim financial information has not been audited.

BASIS OF PREPARATION
This unaudited condensed consolidated interim financial information ("Interim Financial Information") for the six months ended 30 June 2025 has been prepared in accordance with Hong Kong Accounting Standard ("HKAS") 34, "Interim financial report" issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA"). The Interim Financial Information should be read in conjunction with the annual financial statements for the year ended 31 December 2024, which have been prepared in accordance with Hong Kong Financial Reporting Standards ("HKFRSs").
SIGNIFICANT ACCOUNTING POLICIES

This Interim Financial Information has been prepared under the historical cost convention, as modified by the revaluation of derivative financial instruments, financial assets at fair value through other comprehensive income and investment properties, which are carried at fair value.

Except as described below, the accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2024, as described in those annual financial statements.

Amended standards adopted by the Group

The Group has applied the following amended standards for the first time for its annual reporting period commencing on 1 January 2025:

Standards Subject of amendment

Amendments to HKAS 21 and HKFRS 1 Lack of Exchangeability

The amended standards listed above did not have any impact on the amounts recognised in prior periods and are not expected to significantly affect the current or future periods.

New and amended standards and interpretation not yet adopted

Certain new and amended standards and interpretation have been published that are not mandatory for 31 December 2025 reporting periods and have not been early adopted by the Group.

Standards Subject of amendment

Effective for annual periods

beginning on or after

Amendments to HKFRS 9 and HKFRS 7

HKFRS 1, HKFRS 7,

HKFRS 9, HKFRS 10

and HKAS 7

Amendments to the Classification and Measurement of Financial Instruments

Annual Improvements to HKFRS Accounting Standards - Volume 11

1 January 2026

HKFRS 18 Presentation and Disclosure in Financial Statements

HKFRS 19 Subsidiaries without Public Accountability: Disclosures

Hong Kong Interpretation 5 Amendments to Hong Kong Interpretation

5 Presentation of Financial Statements - Classification by the Borrower of

a Term Loan that Contains a Repayment on Demand Clause

1 January 2027

Amendments to HKFRS 10 and HKAS 28

Sale or contribution of Assets between an investor and its Associate or Joint Venture

To be determined

The Group will adopt the above new and amended standards and interpretation as and when they become effective. Further information about those HKFRSs that are expected to be applicable to the Group is described below.

SIGNIFICANT ACCOUNTING POLICIES (continued)
New and amended standards and interpretation not yet adopted (continued)
HKFRS 18 introduces new requirements for presentation within the consolidated statement of comprehensive income, including specified totals and subtotals. Furthermore, entities are required to classify all income and expenses within the consolidated income statement into one of five categories: operating, investing, financing, income taxes and discontinued operations, whereof the first three are new. It also requires disclosure of newly defined management-defined performance measures, subtotals of income and expenses, and includes new requirements for aggregation and disaggregation of financial information based on the identified 'roles' of the primary financial statements and the notes. In addition, narrow-scope amendments have been made to HKAS 7 Statement of Cash Flows, which include changing the starting point for determining cash flows from operations under the indirect method, from 'profit or loss' to 'operating profit or loss' and removing the optionality around classification of cash flows from dividends and interest. There are also consequential amendments to several other standards. HKFRS 18 and the amendments to the other standards, are effective for reporting periods beginning on or after 1 January 2027, but earlier application is permitted and must be disclosed. HKFRS 18 will apply retrospectively. The new requirements are expected to impact the Group's presentation of the consolidated income statement and disclosures of the Group's financial performance. So far, the Group considers that the adoption of HKFRS 18 is unlikely to have a significant impact on the Group's results of operations and financial position.
The Directors of the Company have performed preliminary assessment and do not anticipate any other significant impact on the Group's financial position and results of operations upon adopting these new and amended standards and interpretation to existing HKFRSs.
ESTIMATES
The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
In preparing this condensed consolidated interim financial information, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 31 December 2024.
FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS
1. Financial risk factors
  The Group's activities expose it to a variety of financial risks: market risk (including currency risk and cash flow interest rate risk), credit risk and liquidity risk.
  The condensed consolidated interim financial information does not include all financial risk management information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's annual financial statements as at 31 December 2024.
  The Group has entered into interest rate swap contracts to partially hedge against the risk of interest increase from the Group's variable rate borrowings.
  There have been no changes in the risk management department since year end.
2. Fair value estimation
  The table below analyses financial instruments carried at fair value by valuation method. The different levels have been defined as follows:
  - Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1).
  - Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (Level 2).
  - Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (Level 3).

FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS (continued)

Fair value estimation (continued)

Level 1	Level 2	Level 3	Total
HK$'000	HK$'000	HK$'000	HK$'000
45,531	-	17,010	62,541

The following table presents the Group's financial assets and liabilities that are measured at fair value at 30 June 2025.

Assets

Financial assets at fair value through other comprehensive income

Liabilities

Derivative financial instruments - 17,708 - 17,708

The following table presents the Group's financial assets and liabilities that are measured at fair value at 31 December 2024.

	Level 1	Level 2	Level 3	Total
	HK$'000	HK$'000	HK$'000	HK$'000
Assets Financial assets at fair value through other comprehensive income	53,874	-	17,342	71,216
Derivative financial instruments	-	13,528	-	13,528

There were no transfers between Levels 1, 2 and 3 during the period. There were no other changes in valuation techniques during the period.

Valuation techniques used to derive Level 2 fair values
Level 2 derivative financial instruments comprise interest rate swaps. The fair value of interest rate swaps is determined by using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity specific estimates.
5 FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS (continued)

Valuation techniques used to derive Level 3 fair values

If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.

The following table summarises the fair value and quantitative information about the significant unobservable inputs used in Level 3 fair value measurements of investments in unlisted private investment fund and entities as at 30 June 2025 and 31 December 2024:

Description	As at 30 June 2025 HK$'000	As at 31 December 2024 HK$'000	Significant unobservable inputs	Relationship of unobservable inputs to fair value
Unlisted private	10,640	11,073	Recent transaction	The higher the
investment fund			prices of underlying	transaction prices, the
			assets	higher the fair value
Equity investment in an	5,402	5,402	Discount rate,	The higher the discount
unlisted private entity			sales growth rate	rate/sales growth rate,
				the lower/higher the
				fair value
Equity investment in an	968	867	Recent	The higher the
unlisted private entity			transaction prices	transaction prices, the
				higher the fair value
	17,010	17,342

The following table presents the changes in Level 3 instruments:

	2025 HK$'000	2024 HK$'000
At 1 January	17,342	26,878
Changes in fair value of financial assets at fair value through other comprehensive income	(332)	(779)
At 30 June	17,010	26,099

5 FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS (continued)

Group's valuation processes
The Group's finance team performs the valuations of financial assets required for financial reporting purposes. This team reports directly to the management. Discussions of valuation processes and results are held between the management and the team at least once bi-annually, in line with the Group's reporting dates.
The fair value of the following financial assets and liabilities approximate their carrying amounts:
- Trade and other receivables;
- Restricted cash;
- Short-term bank deposits;
- Cash and cash equivalents;
- Trade and other payables;
- Lease liabilities; and
- Borrowings.

SEGMENT INFORMATION

The Group's senior executive management is considered as the Chief Operating Decision Maker ("CODM"). The Group is currently organised into two operating divisions:

Electronic Manufacturing Service ("EMS") - manufacture and distribution of electronic products for EMS customers.

Property Holding - development, sale and lease of properties.

The CODM reviews the performance of the Group on a regular basis and reviews the Group's internal reporting in order to assess performance and allocate resources. The CODM assesses the performance of the operating segments based on a measure of segment results. This measurement basis includes profit or loss of the operating segments before other income, other gains - net and finance costs - net but excludes corporate and unallocated expenses. Other information provided to the CODM is measured in a manner consistent with that in the Interim Financial Information.

6 SEGMENT INFORMATION (continued)

EMS

Division

Property Holding

Division Total

HK$'000 HK$'000 HK$'000

For the six months ended 30 June 2025
External revenue
Revenue from contracts with customers
Timing of revenue recognition
- At a point of time	1,271,379	-		1,271,379
Revenue from other sources
- Rental income	-		30,762	30,762
Segment results	81,769		(179,677)	(97,908)
Depreciation	19,943		1	19,944
Share of losses of joint ventures	-		(83,322)	(83,322)
Change in fair value of investment properties	-		(107,196)	(107,196)
Provision for write-down of stock of completed
properties	-		(11,760)	(11,760)
Capital expenditure	4,501		-	4,501
			Property
	EMS		Holding
	Division HK$'000		Division HK$'000	Total HK$'000
For the six months ended 30 June 2024
External revenue
Revenue from contracts with customers
Timing of revenue recognition
- At a point of time	1,193,142		-	1,193,142
Revenue from other sources
- Rental income	-		31,261	31,261
Segment results	64,347		(409,914)	(345,567)
Depreciation	25,088		22	25,110
Share of losses of joint ventures	-		(200,847)	(200,847)
Change in fair value of investment properties	-		(210,927)	(210,927)
Provision for write-down of stock of completed
properties	-		(21,560)	(21,560)
Capital expenditure	10,347		-	10,347

	EMS Division	Property Holding Division	Total
	HK$'000	HK$'000	HK$'000
As at 30 June 2025
Segment assets	2,741,369	1,536,625	4,277,994
Interests in joint ventures	-	1,493,969	1,493,969
Total reportable segment assets	2,741,369	3,030,594	5,771,963
As at 31 December 2024
Segment assets	2,725,170	1,655,939	4,381,109
Interests in joint ventures	-	1,591,570	1,591,970
Total reportable segment assets	2,725,170	3,247,509	5,972,679

Segment assets consist primarily of property, plant and equipment, investment properties, right-of-use assets, interests in joint ventures, inventories, stock of completed properties, trade receivables, prepayments, deposits and other receivables, restricted cash, short-term bank deposits and cash and cash equivalents, but exclude financial assets at fair value through other comprehensive income, derivative financial instruments, deferred income tax assets, current income tax recoverable and corporate and unallocated assets.

A reconciliation of reportable segment results to profit before income tax is provided as follows:

For the six months ended 30 June

	2025 HK$'000	2024 HK$'000
Reportable segment results	(97,908)	(345,567)
Other income	751	1,564
Other (losses)/gains - net	(7,794)	10,977
Finance costs - net	(23,393)	(26,689)
Corporate and unallocated expenses	(10,742)	(12,026)
Loss before income tax	(139,086)	(371,741)

Reportable segment assets are reconciled to total assets as follows:

	As at 30 June	As at 31 December
	2025 HK$'000	2024 HK$'000
Reportable segment assets	5,771,963	5,972,679
Financial assets at fair value through other
comprehensive income	62,541	71,216
Derivative financial instruments	-	13,528
Deferred income tax assets	17,648	15,164
Current income tax recoverable	784	1,009
Corporate and unallocated assets	92,221	85,240
Total assets per condensed consolidated
statement of financial position	5,945,157	6,158,836
Reconciliations of other material items are as follows:
	For the six months	ended 30 June
	2025 HK$'000	2024 HK$'000
Depreciation
- Reportable segment total	19,944	25,110
- Corporate headquarters	1,120	1,119
	21,064	26,229
Capital expenditure
- Reportable segment total	4,501	10,347

The Company is domiciled in Bermuda. Analysis of the Group's revenue by geographical market, which is determined by the destination of the invoices billed, is as follows:

For the six months ended 30 June

	2025 HK$'000	2024 HK$'000
North America	208,972	157,169
Asia (excluding Hong Kong)	699,471	775,133
Europe	307,457	198,497
Hong Kong	86,241	93,604
	1,302,141	1,224,403

For the six months ended 30 June 2025, revenue of approximately HK$628,390,000 and HK$152,190,000 were derived from the top two external customers respectively. For the six months ended 30 June 2024, revenue of approximately HK$504,490,000, HK$133,179,000 and HK$129,337,000 were derived from the top three external customers respectively. These customers individually account for 10 percent or more of the Group's revenue. These revenues are attributable to the EMS Division.

Analysis of the Group's non-current assets by geographical market is as follows:

	As at 30 June	As at 31 December
	2025 HK$'000	2024 HK$'000
North America	-	6
Asia (excluding Hong Kong)	262,559	248,080
Europe	11	9
Hong Kong	2,984,543	3,197,570
	3,247,113	3,445,665

Non-current assets comprise property, plant and equipment, investment properties, right-of-use assets, interests in joint ventures, financial assets at fair value through other comprehensive income, derivative financial instruments, deposits and other receivables and restricted cash. They exclude deferred income tax assets.

Profit before income tax is analysed as follows:
	For the six months	ended 30 June
	2025 HK$'000	2024 HK$'000
Depreciation of property, plant and equipment	13,589	17,778
Depreciation of right-of-use assets	7,475	8,451
Depreciation	21,064	26,229
Auditor's remuneration	1,126	1,359
Bank charges	1,721	1,347
Building management fees	11,149	9,043
Chemicals and consumables	13,114	13,210
Cleaning expenses	984	1,015
Entertainment expenses	420	434
Government rent and rates	1,521	1,555
Government surcharges	3,861	2,692
Insurance charges	1,383	1,207
Legal and professional fees	2,059	2,604
Motor vehicle expenses	1,714	1,969
Office and factories expenses	1,923	2,304
Operating lease rental in respect of short-term lease	1,858	3,253
Recruitment, training and other staff welfares
expenses	2,061	1,625
Repairs and maintenances	3,773	3,513
Security expenses	867	919
Travelling expenses	1,159	1,245
Transportation	8,394	8,088
Utility expense	8,371	8,685
Others	1,244	1,651
Other operating expenses	68,702	67,718
Total	89,766	93,947

For the six months ended 30 June

	2025 HK$'000	2024 HK$'000
Gains on disposal of property, plant and equipment	650	1,288
Exchange (losses)/gains - net	(8,444)	9,689
	(7,794)	10,977
9 FINANCE COSTS - NET
	For the six months	ended 30 June
	2025 HK$'000	2024 HK$'000
Finance income
- Interest income	12,336	10,696
Finance costs
- Interest expenses on bank borrowings	(34,753)	(36,936)
- Interest expenses on lease liabilities	(976)	(449)
Total finance costs	(35,729)	(37,385)
Finance costs - net	(23,393)	(26,689)

Hong Kong profits tax has been provided at the rate of 16.5% (2024: 16.5%) on the estimated assessable profit arising in or derived from Hong Kong.

The Group's subsidiaries in Mainland China are subject to the China Corporate Income Tax at the rate of 25% (2024: 25%) on the estimated profits, except for Welco Technology (Suzhou) Limited, a wholly-owned subsidiary of the Group, which is subject to a rate of 15% (2024: 15%) on the estimated profits.

The amount of income tax charged to the condensed consolidated interim income statement represents:

For the six months ended 30 June 2025 2024

HK$'000 HK$'000

Current income tax

Hong Kong profits tax (290) 3,498
Overseas taxation 20,688 13,010 Dividend withholding tax paid on the distributed

retained profits of a PRC incorporated subsidiary 8,072 8,611 Deferred income tax (9,126) (7,944)

19,344 17,175

Income tax expense is recognised based on management's best estimate of the weighted average annual income tax rate expected for the full financial year.

DIVIDENDS
For the six months ended 30 June 2025 2024
HK$'000 HK$'000
Interim dividend - HK$0.0275 (2024: HK$0.0275)
per share 13,158 13,158
On 26 August 2025, the Board has resolved to pay an interim dividend of HK$0.0275 per share (2024: HK$0.0275 per share) which is payable on Friday, 26 September 2025 to the shareholders whose names appear on the Register of Members of the Company on Friday, 12 September 2025. This interim dividend, amounting to HK$13,158,000 (2024: HK$13,158,000) has not been recognised as a liability in this Interim Financial Information. It will be recognised in shareholders' equity in the year ending 31 December 2025.

LOSSES PER SHARE

Basic

Basic losses per share is calculated by dividing the loss attributable to owners of the Company by the weighted average number of ordinary shares in issue during the period.

For the six months ended 30 June

		2025	2024
Loss attributable to owners of the Company (HK$'000)		(158,430)	(388,916)
Weighted average number of ordinary
	shares in issue (in thousands)	478,484	478,484
	Basic losses per share (HK$)	(0.33)	(0.81)
(b)	Diluted

No diluted losses per share is presented for both periods because there is no dilutive potential ordinary shares outstanding throughout both periods.

13 CAPITAL EXPENDITURE
	Property,
	plant and	Investment
	equipment HK$'000	properties HK$'000
For the six months ended 30 June 2025
Opening net book amount as at 1 January 2025	190,494	1,473,317
Additions	4,501	-
Disposals	(248)	-
Fair value losses	-	(107,196)
Depreciation	(13,589)	-
Currency translation differences	24	602
Closing net book amount as at 30 June 2025	181,182	1,366,723
	Property,
	plant and	Investment
	equipment	properties
	HK$'000	HK$'000
For the six months ended 30 June 2024
Opening net book amount as at 1 January 2024	211,689	1,946,822
Additions	10,347	-
Disposals	(377)	-
Fair value losses	-	(210,927)
Depreciation	(17,778)	-
Currency translation differences	(7,722)	(626)
Closing net book amount as at 30 June 2024	196,159	1,735,269

The valuations of the investment properties at 30 June 2025 were carried out by an independent firm of surveyors, Roma Appraisals Limited, who is a fellow member of the Hong Kong Institute of Surveyors. The fair value measurement information for these investment properties in accordance with HKFRS 13 is given below.

CAPITAL EXPENDITURE (continued)

Fair value measurements

	Quoted prices	Significant
	in active	other	Significant
	markets for	observable	unobservable
	identical assets	inputs	inputs
	(Level 1) HK$'000	(Level 2) HK$'000	(Level 3) HK$'000
As at 30 June 2025
Recurring fair value measurements
Investment properties	-	-	1,366,723
As at 31 December 2024
Recurring fair value measurements
Investment properties	-	-	1,473,317

There were no transfers among Level 1, Level 2 and Level 3 during the period.

Fair value measurements using significant unobservable inputs (Level 3)

Investment properties

	Hong Kong	Outside Hong Kong	Total
	HK$'000	HK$'000	HK$'000
At 1 January 2025	1,454,100	19,217	1,473,317
Fair value losses	(106,550)	(646)	(107,196)
Currency translation differences	-	602	602
At 30 June 2025	1,347,550	19,173	1,366,723
Total unrealised losses for the
period included in the condensed
consolidated income statement for
assets held at the end of the period,
under 'Change in fair value of
investment properties'	(106,550)	(646)	(107,196)
At 1 January 2024	1,925,000	21,822	1,946,822
Fair value losses	(209,200)	(1,727)	(210,927)
Currency translation differences	-	(626)	(626)
At 30 June 2024	1,715,800	19,469	1,735,269
Total unrealised losses for the
period included in the condensed
consolidated income statement for
assets held at the end of the period,
under 'Change in fair value of
investment properties'	(209,200)	(1,727)	(210,927)

Fair values of completed investment properties have been valued by the direct comparison approach assuming sale of the properties in their existing states with the benefit of vacant possession and by making reference to comparable sales transactions as available in the relevant market.

Fair value measurements using significant unobservable inputs (Level 3) (continued)

The valuation have been made on the assumption that the owners sell the properties in the open market without the benefit of deferred term contracts, leasebacks, joint ventures, management agreements or any similar arrangements which would serve to increase the values of such properties. In addition, no account has been taken of any option or right of pre-emption concerning or affecting the sale of the properties and no allowance has been made for the properties to be sold in one lot or to a single purchaser.

There were no changes in valuation techniques during the period.

As at 30 June 2025, certain bank borrowings are secured by property, plant and equipment, right-of-use assets, investment properties and stock of completed properties with a carrying amount of approximately HK$1,556,297,000 (31 December 2024: HK$1,675,326,000) (Note 17).

14 INTERESTS IN JOINT VENTURES
	As at	As at
	30 June	31 December
	2025 HK$'000	2024 HK$'000
Share of net assets	521,374	604,695
Loans to joint ventures	972,595	986,875
	1,493,969	1,591,570
Movements in share of net assets is analysed as follows:
	2025 HK$'000	2024 HK$'000
At 1 January	604,695	1,051,442
Share of losses of joint ventures	(83,321)	(200,847)
At 30 June	521,374	850,595

Share of losses of joint ventures included the share of fair value losses, net of deferred income tax, of investment properties owned by the joint ventures of approximately HK$97,775,000 (2024: share of fair value losses, net of deferred income tax, of HK$214,327,000).

As at 30 June 2025, the Group had interests in the following principal joint ventures, which are unlisted:

Place of

Proportion of ownership

Nature of the Measurement

Name of company

incorporation

interest (%) Principal activities

relationship

method

Talent Chain Investments Limited BVI 35.7 Investment holding Note Equity Crown Opal Investment Limited Hong Kong 35.7 Property holding Note Equity Open Vantage Limited BVI 35.7 Property investment N/A Equity Note: Crown Opal Investment Limited is a subsidiary of Talent Chain Investments Limited.

The loans to joint ventures are unsecured, interest-free and will not be repaid in the coming twelve months. The Directors consider that the carrying amounts of the loans to the joint ventures approximate their fair values. The amounts are denominated in Hong Kong dollars.

Talent Chain Investments Limited, Crown Opal Investment Limited and Open Vantage Limited are private companies and there is no quoted market price available for their shares.

15 TRADE RECEIVABLES
	As at	As at
	30 June	31 December
	2025 HK$'000	2024 HK$'000
Trade receivables	788,907	865,545
Less: allowance for impairment of trade receivables	(460)	(438)
	788,447	865,107

The credit period allowed by the Group to its trade customers mainly ranges from 30 days to 120 days and no interest is charged.

15 TRADE RECEIVABLES (continued)
Ageing analysis of the Group's trade receivables by invoice date is as follows:
As at	As at
30 June	31 December
2025	2024
HK$'000	HK$'000
0 - 60 days 530,242	506,851
61 - 90 days 127,918	180,405
Over 90 days 130,747	178,289
788,907	865,545

The movement of loss allowance for trade receivables is as follows:

	2025 HK$'000	2024 HK$'000
At 1 January	438	2,325
Increase in loss allowance	22	20
At 30 June	460	2,345

The Group applies the HKFRS 9 simplified approach to measure expected credit losses which uses a lifetime expected loss allowance for all trade receivables. The carrying amounts of the Group's trade receivables approximated their fair values as at 30 June 2025.

16 TRADE PAYABLES
Ageing analysis of the Group's trade payables by invoice date	is as follows:
	As at	As at
	30 June	31 December
	2025 HK$'000	2024 HK$'000
0 - 60 days	313,930	376,770
61 - 90 days	49,587	47,815
Over 90 days	177,587	123,436
	541,104	548,021

The carrying amounts of the Group's trade payables approximated their fair values as at 30 June 2025.

17	BORROWINGS
		As at	As at
		30 June	31 December
		2025 HK$'000	2024 HK$'000
	Trust receipt bank loans, unsecured	283,445	223,390
	Short-term bank loans, unsecured	295,000	299,000
	Short-term bank loans, secured	115,700	115,700
	Portion of long-term bank loans due for repayment
	within one year, secured	97,609	104,408
	Portion of long-term bank loans due for repayment
after one year, secured		741,026		876,430
Total borrowings		1,532,780		1,618,928
Non-current		741,026		876,430
Current		791,754		742,498
Total borrowings		1,532,780		1,618,928

BORROWINGS (continued)
As at 30 June 2025, the short-term and long-term bank loans of HK$954,334,000 (31 December 2024: HK$1,096,538,000) were secured by the following:
- Charges over property, plant and equipment with carrying amount of approximately HK$18,261,000 (31 December 2024: HK$18,556,000), right-of-use assets with carrying amount of approximately HK$51,102,000 (31 December 2024: HK$51,926,000), investment properties with carrying amount of approximately HK$1,338,550,000 (31 December 2024: HK$1,444,700,000) and stock of completed properties with carrying amount of approximately HK$148,384,000 (31 December 2024: HK$160,144,000);
- Restricted cash of HK$119,968,000 (31 December 2024: HK$116,814,000) from an indirect wholly-owned subsidiary of the Company; and
- A guarantee limited to HK$760,000,000 from an indirect wholly-owned subsidiary of the Company.
SHARE CAPITAL

Number of shares Nominal value

HK$'000

Ordinary shares of HK$0.10 each

Authorised:

At 1 January 2024 and 30 June 2024 700,000,000 70,000

At 1 January 2025 and 30 June 2025 700,000,000 70,000

Issued and fully paid:

At 1 January 2024 and 30 June 2024	478,483,794		47,848
At 1 January 2025 and 30 June 2025	478,483,794		47,848

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