CTFSERVICES：INTERIMREPORT2024-2025.pdf

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1、Corporate Prof ileListed on The Stock Exchange of Hong Kong Limited,CTF Services Limited(the“Company”and its subsidiaries,collectively,“CTF Services”or the“Group”;Hong Kong Stock Code:659)is a conglomerate with a diversified portfolio of market-leading businesses,predominantly in Hong Kong and the M

2、ainland.The Groups businesses include toll roads,insurance,logistics,construction and facilities management.Through the Groups sustainable business model,it is committed to creating more value for all stakeholders and the community.219320614226417182466267165IndependentAuditors ReviewReportCondensed

3、Consolidated IncomeStatementChairmansStatementCondensedConsolidatedStatement ofComprehensiveIncomeNotes to CondensedConsolidated InterimFinancial StatementsCorporateInformationFinancialHighlightsCondensedConsolidatedStatement of FinancialPositionFinancialResourcesManagementDiscussion andAnalysisCond

4、ensedConsolidatedStatement of Changesin EquityCondensedConsolidatedStatement of CashFlowsAdditionalInformationWhere the English and the Chinese texts conflict,the English text prevails.This interim report is also available at .hk.CTF Services Limited 2025Interim OrdinaryDividend andSpecial DividendD

5、isclosure Pursuantto Rule 13.22 of theListing RulesContentsChairmans Statement2CTF Services LimitedChairmans StatementDear Shareholders,Stay the Course to Seize Progress and Opportunities for Sustainable Growth.The Group remains resolute in its unwavering commitment to sharing success and prosperity

6、 with shareholders,steadfastly advancing towards sustainable growth.With an impressive track record of twenty-two consecutive years of dividend distribution,the Groups dedication is incontestable.Despite facing structural macroeconomic challenges,the Groups diversified and counter-cyclical businesse

7、s have consistently showcased exceptional resilience.Robust cash flow,driven by operational excellence and proactive capital management,has empowered the Group to uphold its sustainable and progressive dividend policy,even in a world rife with uncertainties.The recent rebranding to CTF Services Limi

8、ted marks a strategic alignment with,and the full support of,the Chow Tai Fook Group.Leveraging a diverse ecosystem,the Group is better positioned for the future and poised to create value for stakeholders.Maximizing shareholder returns remains a key strategic priority for the Group,with continuous

9、optimization of business portfolio at the forefront.This has yielded tangible benefits by reallocating capital to pursue ventures with growth potential and higher cash flow visibility through well-planned acquisitions under favourable circumstances.The divestiture of Free Duty business and Hyva Grou

10、p has sharpened the Groups focus,enhanced operational efficiency,and unlocked value for stakeholders.Set to officially open in the first quarter of 2025,Kai Tak Sports Park is poised to become Hong Kongs premier“Sportainment”landmark.Kai Tak Sports Park Limited,in which the Group holds a 25%interest

11、,was awarded a 25-year contract by the Hong Kong government to design,build,and operate the Kai Tak Sports Park project in 2018.The Group is proud to have played a pivotal role in this project from its inception,beginning with the construction phase.Now equipped with state-of-the-art facilities for

12、sports,entertainment,leisure,and shopping,Kai Tak Sports Park aligns with the Groups vision to Foster Connectivity that Enables Our Community to Thrive.While the Group has now successfully achieved all targets set in the 2018 Sustainable Development Vision,and to further elevate ESG commitment,the G

13、roup has introduced“Breakthrough 2050”,a new framework setting goals to address the evolving economic landscape.This initiative reaffirms dedication to enhancing business resilience and future readiness,positioning the Group to seize emerging opportunities and drive sustainable growth.Looking ahead,

14、the unwavering dedication of our experienced management team and colleagues,combined with the empowerment and support from our stakeholders,will enable the Group to transform challenges into opportunities.By devising agile yet prudent business strategies,the Group aims to deliver consistent and stea

15、dily growing returns,fostering growth and resilience across economic cycles.Dr Cheng Kar Shun,HenryChairmanHong Kong,26 February 20253Interim Report 2025Financial HighlightsFor the six months ended31 December 20242023HK$mHK$m Revenue12,109.713,978.5Profit attributable to shareholders of the Company1

16、,157.61,008.8Attributable Operating Profit(1)2,225.32,134.0Adjusted EBITDA(2)3,556.83,727.3Dividend per share Interim ordinary dividendHK$0.30HK$0.30 Special dividendHK$0.30HK$1.79 As atAs at31 December30 June20242024HK$mHK$m Total assets161,677.7155,083.7Net assets(3)40,836.043,351.7Net assets per

17、share(4)HK$10.22HK$10.84Cash and bank balances18,612.214,788.0Net debt(5)16,083.515,107.4Net gearing ratio(6)39%35%Remarks:(1)Attributable Operating Profit/(Loss)(“AOP”/“AOL”)is a non-HKFRS measure used by the Executive Committee of the Company to assess the performance of the operating segments as

18、detailed in note 4 to the condensed consolidated interim financial statements.The overall AOP of the Group represents the profit available for appropriation before non-operating and unallocated corporate office items.It may not be comparable to similar measures presented by other companies.(2)Adjust

19、ed earnings before interest,taxes,depreciation and amortization(“EBITDA”,collectively“Adjusted EBITDA”)is a non-HKFRS measure of the Groups operating profitability and calculated as operating profit excluding depreciation and amortization and other non-operating/non-cash items,plus dividends receive

20、d from associated companies and joint ventures,and any other relevant adjustments.The calculation is set out on page 8 on this interim report.It may not be comparable to similar measures presented by other companies.(3)Total assets less total liabilities.(4)Net assets divided by number of issued sha

21、res at the end of the period/year.(5)The aggregate of borrowings and other interest-bearing liabilities less cash and bank balances.(6)Net debt divided by total equity.4CTF Services LimitedManagement Discussion and AnalysisBUSINESS REVIEWGroup overviewDuring the six months ended 31 December 2024(the

22、“Current Period”),the Group adeptly navigated a dynamic economic landscape,capitalizing on opportunities while addressing challenges.Despite market fluctuations,the Group achieved a 4%year-on-year uptick in overall AOP reaching HK$2,225.3 million.This performance underscores our strong resilience an

23、d strategic focus.This increase in overall AOP was mainly attributable to(i)continued strong earnings growth of the Insurance segment;(ii)a substantial reduction in the AOL of Gleneagles Hospital Hong Kong(“GHK Hospital”);and(iii)increased AOP contributions from ATL Logistics Centre Hong Kong Limite

24、d(“ATL”)and China United International Rail Containers Co.,Limited(“CUIRC”)within the Logistics segment.These positive factors were partly offset by(i)underperformance of Free Duty business(which the Group disposed of in the Current Period)and Hong Kong Convention and Exhibition Centre(“HKCEC”)withi

25、n the Facilities Management segment;and(ii)a slight decline in the AOP of the Roads segment,mainly due to the expiration of concession period for Guangzhou City Northern Ring Road in March 2024.The Groups Operating Businesses,namely Roads,Insurance,Logistics,Construction and Facilities Management(ex

26、cluding Free Duty business which has been disposed of),experienced steady growth as a whole,achieving a solid 8%year-on-year AOP increase in the Current Period.The Insurance segment and Logistics segment were the primary drivers of this growth,showcasing the resilience and quality of the Groups busi

27、ness portfolio.In addition to the growth in overall AOP of the Groups businesses,there was a significant reduction in profit attributable to holders of perpetual capital securities following the redemption of the 5.75%senior perpetual capital securities(“2019 Perpetual Capital Securities”)with an ou

28、tstanding principal amount of US$1,019.1 million in January 2024 and the Groups share of non-operating income from Goshawk Aviation Limited(“Goshawk”,a joint venture of the Group)resulting from the partial insurance settlements with its insurers over the loss of six aircraft.These positive factors w

29、ere partly offset by higher net finance costs and net fair value loss on investment properties during the Current Period.Taking all these factors into account,profit attributable to shareholders of the Company increased robustly by 15%to HK$1,157.6 million.The Group continues to proactively refine i

30、ts business portfolio by divesting stagnant assets.The successful sale of its Free Duty business in December 2024 marked a full exit from this sector.Additionally,the Groups joint venture entity completed the disposal of its entire interests in Hyva III B.V.and its subsidiaries(“Hyva Group”)in Janua

31、ry 2025.These strategic moves will enable the Group to recuperate cash for future acquisitions and allocate resources to segments with stronger growth prospects.The announced acquisition of Hsin Chong Aster Building Services Limited(“Hsin Chong Aster”),a leading contractor in electrical and mechanic

32、al(“E&M”)engineering services,is expected to be completed in the first quarter of 2025.This will strengthen CTFS Construction Groups E&M capabilities,facilitating comprehensive,one-stop solutions for clients and thereby contributing to improved profitability.Management Discussion and Analysis5Interi

33、m Report 2025During the Current Period,the Groups contribution from operations in Hong Kong accounted for 58%of its AOP(for the six months ended 31 December 2023(the“Last Period”):56%),while the Mainland contributed 39%of its AOP(Last Period:43%).Adjusted EBITDA decreased by 5%year-on-year to HK$3,5

34、56.8 million.Basic earnings per share was HK$0.29 in the Current Period,reflecting a growth of 2%year-on-year.The Groups average borrowing costs reduced to approximately 4.2%(Last Period:4.8%)per annum for the Current Period.In view of the higher-for-longer interest rate environment for Hong Kong Do

35、llar borrowings,the Group proactively managed its financing cost by using Renminbi(“RMB”)debt with lower financing costs to replace a portion of offshore debt with higher financing costs.The RMB debt proportion rose to 63%of its total debt as at 31 December 2024,compared to 60%as at 30 June 2024 and

36、 49%as at 31 December 2023.Furthermore,the ratio of RMB liabilities to RMB assets increased further to about 78%(30 June 2024:about 65%).As RMB-denominated debts serve as a natural hedge against the Groups RMB assets,this enables the Group to reduce substantially the negative impact on its equity re

37、sulting from potential further depreciation of the RMB against the Hong Kong Dollar.Net finance costs increased by 85%year-on-year in the Current Period due to an increase in net debt balance following the redemption of the 2019 Perpetual Capital Securities with an outstanding principal amount of US

38、$1,019.1 million in January 2024 and the special dividend payment in April 2024.On the other hand,profit attributable to holders of perpetual capital securities fell significantly by 65%during the Current Period and substantially offset the impact from higher net finance costs.During the Current Per

39、iod,the Group further enhanced its debt structure to navigate the volatile market environment.In August 2024,the Group issued US$400 million 6.375%senior notes due 2028 at the issue price of 99.265%,thereby strengthening the debt profile by diversifying funding source and optimizing the maturity pro

40、file.As at 31 December 2024,the ratio of fixed-rate debt to total debt expanded to 68%from 54%as of 30 June 2024.In January 2025,the Group received the notice of acceptance of registration from the China Securities Regulatory Commission(“CSRC”)and the Shanghai Stock Exchange for the registration of

41、perpetual corporate bonds in an aggregate amount of up to RMB5.0 billion,to be issued in multiple tranches over two years.This will enable the Group to judiciously time the issuance of the perpetual corporate bonds in the Mainland in the near future.In January 2025,the Company issued HK$780 million

42、4%convertible bonds due July 2025 with the primary objective of restoring its public float to meet the minimum requirement of 25%as stipulated in Rule 8.08(1)(a)of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited(the“Hong Kong Stock Exchange”)(the“Listing Rule

43、s”).The initial conversion price for the convertible bonds is HK$8.043 per share,and the bonds are convertible into a maximum of 96,978,739 new shares upon conversion.Assuming full conversion of the bonds into new shares,the public float of the Company will increase from approximately 23.83%to appro

44、ximately 25.64%.As a result of the declaration of the Interim Ordinary Dividend and the Special Dividend(both as defined below),the conversion price for the convertible bonds will be adjusted from HK$8.043 per share to HK$7.39 per share on 22 March 2025 and hence the maximum number of new shares tha

45、t will be issued by the Company upon full conversion of the convertible bonds will be 105,548,037 shares.For further details,please refer to the announcement of the Company entitled“Adjustment to Conversion Price of HK$780,000,000 4.00 per cent.Convertible Bonds due 2025”dated 26 February 2025.Manag

46、ement Discussion and Analysis6CTF Services LimitedThe Group adheres to prudent financial management and maintains robust credit ratings.In January 2025,China Lianhe Credit Rating Co.,Ltd.（聯合資信評估股份有限公司）affirmed the credit rating of the Company at“AAA”with a stable outlook.Additionally,the Group was a

47、warded the inaugural“A+”Foreign Currency Long-term Issuer Rating and“A+”Local Currency Long-term Issuer Rating with a stable outlook from Japan Credit Rating Agency,Ltd.in April 2024.These will facilitate the Groups financing activities and cooperations with financial institutions and investors.The

48、Group has also been exploring various sustainable,social and green finance options to demonstrate its commitment to Environmental,Social and Governance(“ESG”).As at 31 December 2024,the Groups sustainability-linked and green facilities amounted to approximately HK$15.5 billion(30 June 2024:approxima

49、tely HK$14.1 billion).During the Current Period,the Groups financial position remained healthy.Total available liquidity stood at approximately HK$29.9 billion as at 31 December 2024,comprising cash and bank balances of approximately HK$18.6 billion and unutilized committed banking facilities of app

50、roximately HK$11.3 billion,far exceeded the short-term debts of approximately HK$2.3 billion that come due in less than a year.The Groups net debt balance edged up to approximately HK$16.1 billion(30 June 2024:approximately HK$15.1 billion),primarily attributable to the redemption of US$268.2 millio

51、n principal amount of perpetual capital securities during the Current Period.Net gearing ratio,calculated as net debt over total equity,rose slightly to 39%(30 June 2024:35%).The Group remained committed to its sustainable and progressive dividend policy in respect of the ordinary dividend,which aim

52、s to steadily increase or at least maintain the Hong Kong Dollar value of ordinary dividend per share in each financial year.The board of directors of the Company(the“Board”)has resolved to declare an interim ordinary dividend of HK$0.30 per share for the Current Period(the“Interim Ordinary Dividend

53、”)(Last Period:interim ordinary dividend of HK$0.30 per share).In addition to the cash proceeds from the disposal of Free Duty business and Hyva Group,up to the preceding day of this report,Goshawk has received an aggregate amount of approximately US$145.2 million(equivalent to approximately HK$1.1

54、billion),before professional fees incurred,upon completion of certain settlement procedures with the insurers over the loss of six aircraft,of which the Group is entitled to 50%of these insurance settlements.In light of these favorable developments,the Board has resolved to declare a special dividen

55、d of HK$0.30 per share during the Board meeting held on 26 February 2025(the“Special Dividend”).This decision underscores the Companys commitment to creating value for shareholders and attests to its strong financial position.Including the Interim Ordinary Dividend and the Special Dividend,total int

56、erim dividend for the Current Period amounts to HK$0.60 per share(“Total Interim Dividend”).Management Discussion and Analysis7Interim Report 2025Profit ContributionFor the six months ended 31 December20242023HK$mHK$m Attributable Operating Profit2,225.32,134.0 Non-operating itemsNet loss on fair va

57、lue of investment properties,net of tax(89.7)(22.4)Impairments,remeasurement and provisions,net(307.4)(295.0)Gain on disposal of a project42.7Share of non-operating income of a joint venture,net81.1Share-based payment(44.4)Unallocated corporate office itemsNet finance costs(505.3)(273.6)Net exchange

58、(loss)/gain(0.5)20.7Expenses and others(179.6)(198.6)(958.7)(813.3)Profit for the period after tax and non-controlling interests(1)1,266.61,320.7 Profit attributable to:Shareholders of the Company1,157.61,008.8Holders of perpetual capital securities109.0311.9 1,266.61,320.7 Note:(1)Reconciliation fr

59、om Attributable Operating Profit to profit for the period after tax and non-controlling interests is set out in note 4 to the condensed consolidated interim financial statements.Management Discussion and Analysis8CTF Services LimitedAdjusted EBITDAFor the six months ended 31 December20242023HK$mHK$m

60、 Operating profit1,846.61,718.4AdjustmentsDepreciation and amortization(2)903.2892.3Other non-operating/non-cash itemsNet loss on fair value of investment properties(3)223.248.4Profit on disposal of assets held-for-sale(3)(42.7)Impairment losses related to associated companies(3)179.9Share-based pay

61、ment(4)44.4Dividends received from associated companies and joint ventures(5)581.0743.4Other adjustment(6)45.5100.5 Adjusted EBITDA3,556.83,727.3 Notes:(2)Being the sum of amortization of intangible assets and intangible concession rights as well as depreciation of property,plant and equipment and r

62、ight-of-use assets as individually disclosed in note 5 to the condensed consolidated interim financial statements.(3)As disclosed in note 6 to the condensed consolidated interim financial statements.(4)As disclosed in note 5(a)to the condensed consolidated interim financial statements.(5)As disclose

63、d in condensed consolidated statement of cash flows.(6)Adjustment is made to include dividends from joint ventures which were reinvested by the Group.Management Discussion and Analysis9Interim Report 2025OPERATIONAL REVIEWAOP Contribution by SegmentFor the six months ended 31 December20242023HK$mHK$

64、m Roads767.1816.7Insurance614.3413.0Logistics387.8356.8Construction390.9394.7Facilities Management#9.3124.2Strategic Investments55.928.6 Total2,225.32,134.0#If excluding the divested Free Duty business,the Facilities Management segment reported an AOP of HK$48.5 million in the Current Period,compare

65、d to an AOP of HK$71.7 million in the Last Period.RoadsThe Group is currently managing fourteen toll roads projects in the following areas in the Mainland:Guangdong Province,Zhejiang Province,Tianjin Municipality,Shanxi Province,Hubei Province,Hunan Province and Guangxi Zhuang Autonomous Region unde

66、r its Roads segment.During the Current Period,the resilient business performance of the Roads segment was bolstered by the strategic locations of the Groups road portfolio.Overall like-for-like average daily traffic flow increased by 2%year-on-year,while like-for-like average daily toll revenue saw

67、a decline of 3%year-on-year.This was primarily caused by a rise in short-distance travelling traffic,coupled with a decrease in long-distance travelling traffic of Beijing-Zhuhai Expressway(Guangzhou-Zhuhai Section)following the opening of Shenzhen-Zhongshan Link in June 2024.In the first half of fi

68、nancial year ending 30 June 2025(“FY2025”),despite steady travel demand for the Groups expressways,the total AOP of the Roads segment declined by 6%year-on-year to HK$767.1 million mainly due to the expiry of concession period for Guangzhou City Northern Ring Road in March 2024.The Groups major expr

69、essways,namely Hangzhou Ring Road,Tangjin Expressway(Tianjin North Section),Beijing-Zhuhai Expressway(Guangzhou-Zhuhai Section)and the three expressways in Central region(namely Suiyuenan Expressway,Sui-Yue Expressway and Changliu Expressway),contributed over 80%of the Roads segments AOP.Like-for-li

70、ke average daily traffic flow of these expressways grew by 3%year-on-year,while like-for-like average daily toll revenue decreased by 4%year-on-year.During the Current Period,the Zhiyi West Lake Service Area on the Groups wholly owned Hangzhou Ring Road achieved the Platinum certification,the highes

71、t level of LEED certification,from the U.S.Green Building Council.This accomplishment made it the first service area in the Mainland to receive this prestigious recognition,highlighting the markets acknowledgement of its efforts.The Zhiyi West Lake Service Area has been thoughtfully designed with mu

72、ltifunctional features,including sustainable building practices,photovoltaic power generation,electric vehicle charging stations,water conservation system,and smart technology.These initiatives collectively reflect the Groups commitment to sustainable development.Management Discussion and Analysis10

73、CTF Services LimitedAs at 31 December 2024,the overall average remaining concession period of the Groups road portfolio was approximately 11.5 years.The expansion works of Beijing-Zhuhai Expressway(Guangzhou-Zhuhai Section)and Guangzhou-Zhaoqing Expressway have been underway since November 2022 and

74、the end of 2023,respectively.The Group will be eligible to apply for extension of concession period upon expansion completion to lengthen the Groups average concession period.InsuranceThe Groups Insurance segment achieved an impressive 49%rise in AOP,reaching HK$614.3 million in the Current Period.T

75、his remarkable growth is mainly driven by the increase in the Contractual Service Margin(“CSM”)release owing to business growth.Supported by the profitable business growth and favourable economic movements,the CSM release surged by 52%year-on-year to HK$570.2 million,while CSM balance,net of reinsur

76、ance,grew by 13%to approximately HK$9.2 billion as of 31 December 2024 as compared to 30 June 2024.This will fuel profits to be booked over the contract period in the future.Chow Tai Fook Life Insurance Company Limited(“CTF Life”)experienced a 26%decline in overall Annual Premium Equivalent(“APE”),t

77、otalling HK$1,547.4 million in the Current Period.This reduction is primarily attributed to the release of pent-up demand from Mainland Chinese visitors following the border reopening in the Last Period.Weaker performance in the partnership and premier business channels also led to this decline,alth

78、ough it was partially mitigated by robust performance from the agency channel.Mainland Chinese visitors accounted for approximately 57%(Last Period:56%)of APE.The Value of New Business(“VONB”)decreased by 22%to HK$525.9 million in the Current Period,primarily due to slowdown in APE.To mitigate this

79、effect,CTF Life has continued its existing initiatives to strengthen its agency force.These efforts have resulted in a significant improvement in agency productivity.There is also an expansion of the VONB margin(representing VONB as a percentage of APE)to 34%(Last Period:32%)driven by effective capi

80、tal management and product design catered specifically for the Hong Kong Risk Based Capital(“HKRBC”)regime which was effective since July 2024.CTF Lifes investment income from its fixed income portfolio further increased to 4.6%per annum in the Current Period(Last Period:4.5%).In the first nine mont

81、hs of 2024,CTF Lifes market position remained competitive,ranking 11th among Hong Kong life insurance companies by APE.In response to the increasing demand for wealth management solutions,CTF Life proudly launched two innovative products in the first half of FY2025:the Prime Treasure Savings Insuran

82、ce Plan and the MyWealth Savings Insurance Plan 2(“MyWealth 2”).Both products provide guaranteed cash value accumulation,establishing a secure financial foundation.They include a“Policy Split Option”for flexible asset planning,and feature a“Dual Succession Scheme”that enables seamless wealth transfe

83、r across generations.“MyWealth 2”further enhances its offerings with a“Wealth Booster Option”for improved returns,alongside flexible“Wealth Accumulation Switching Options”and a“Currency Switching Option”,granting our customers greater autonomy.CTF Lifes financial position remained robust during the

84、Current Period.The solvency regime transitioned from the past Hong Kong Insurance Ordinance basis to HKRBC basis in the first half of FY2025.As at 31 December 2024,the HKRBC solvency ratio stood at 266%,which is distinctly higher than the minimum regulatory requirement of 100%.Embedded value increas

85、ed by 11%from 30 June 2024 to HK$23.5 billion as of 31 December 2024 contributed by expected return on embedded value,value brought from new business,and the transition of solvency regime to HKRBC basis since 1 July 2024 amid CTF Lifes effective capital management.Moodys has continued to maintain th

86、e insurance financial strength rating of CTF Life at“A3/Stable”,while Fitch Ratings has affirmed CTF Lifes A-insurer financial strength rating with stable rating outlook.Management Discussion and Analysis11Interim Report 2025During the Current Period,CTF Life garnered notable recognition for its inn

87、ovative products and commitment to excellence across multiple categories.“FamCare 198”Critical Illness Protector was honored as a Top 3 Finalist in the Most Innovative Product/Service Award at the 2024 Hong Kong Insurance Awards.Furthermore,CTF Life proudly secured the Gold Award for Outstanding ESG

88、(Non-Listed Company)at the 2023/2024 ESG Achievement Awards,marking its third consecutive year of recognition in this domain.CTF Life also received several awards and notable recognitions across various events,including the Spark Awards 2024.Additionally,CTF Lifes IT efforts were recognized in the D

89、ata Insurance category at the Hong Kong Business Technology Excellence Awards 2024.CTF Life also took a pioneering step as the first company from the banks,diverse financials and insurance sector focusing in the Greater Bay Area to commit to the Science Based Targets initiative(SBTi).This commitment

90、 represents a pivotal milestone in the dedication to combating climate change and fostering sustainability through science-based targets that support the Paris Agreement.By prioritizing the long-term value for its stakeholders,CTF Life is embracing sustainable growth that transcends traditional insu

91、rance offerings.The strategic transition towards net-zero emissions underscores CTF Lifes commitment to integrating ESG considerations into every facet of its operations and investment portfolio.LogisticsThe Logistics segment noted operational improvement during the Current Period.ATL achieved susta

92、ined growth,and CUIRC demonstrated a substantial surge,which was partially offset by a decline in profits from logistics properties in the Mainland.These collectively resulted in an overall increase in the Logistics segments AOP by 9%year-on-year,reaching HK$387.8 million.The Logistics Asset&Managem

93、ent portfolio consists of ATL in Hong Kong and seven logistics properties in the Mainland,with a gross leasable area of approximately 5.9 million square feet and 6.5 million square feet,respectively,as at 31 December 2024.ATLs exceptional warehouse location and convenient facilities have established

94、 it as a best-in-class asset,consistently delivering resilient rental performance and maintaining high occupancy rates.As at 31 December 2024,ATLs occupancy rate stood at a healthy level of 93.6%(30 June 2024:96.3%),accompanied by a remarkable average rental growth of 10%year-on-year.Additionally,as

95、 at 31 December 2024,the average occupancy rate of six logistics properties in Chengdu and Wuhan was stable at 85.0%(30 June 2024:85.4%),while the logistics property in Suzhou remained fully let(30 June 2024:100.0%).Overall,the logistics properties in the Mainland experienced an average rental decli

96、ne of 9%year-on-year,owing to rental adjustments aligned with prevailing market prices for tenancy renewals with short-term destocking pressures impacting pricing and occupancy rates in the near-term.The burgeoning demand for multimodal transportation services and China-Europe Express Rail,augmented

97、 terminal capacity and an elevated necessity for ancillary logistics services have increasingly contributed to the success of CUIRCs operation.During the Current Period,CUIRC recorded a strong year-on-year growth of 25%in AOP,with throughput increasing by 6%year-on-year to 3,485,000 TEUs.In response

98、 to the growing demand,CUIRC has been actively expanding the capacity of its terminal.The project to double the handling capacity of the Tianjin terminal is proceeding as planned and is expected to be completed in the first half of 2025.Management Discussion and Analysis12CTF Services LimitedConstru

99、ctionThe Construction segment of the Group was mainly represented by CTFS Construction Group,which comprises(i)Hip Hing Group,focusing on the design and construction of building works within the Hong Kong market;(ii)Vibro Group,the oldest foundation contractor in Hong Kong;and(iii)Quon Hing Group,on

100、e of the largest concrete products suppliers in Hong Kong.During the Current Period,CTFS Construction Group demonstrated resilience by maintaining a steady AOP of HK$390.9 million,despite facing challenges from intense competition and rising material costs.Major projects undertaken by CTFS Construct

101、ion Group during the Current Period included residential development at Kai Tak,commercial development in Causeway Bay and residential development at Yin Ping Road,Tai Wo Ping.As at 31 December 2024,the gross value of contracts on hand was approximately HK$48.9 billion,while the remaining works to b

102、e completed was HK$28.3 billion.To mitigate the impact from the slowdown in the private sector of the Hong Kong property market,CTFS Construction Group has strategically shifted its focus towards procuring projects from institutional clients as well as the Hong Kong Government.As of 31 December 2024

103、,about 53%of the remaining works to be completed were from government and institutional related projects,a significant increase from 34%as of 31 December 2023.Conversely,the proportion of private-sector projects(including commercial and residential)was down from 66%to 47%.During the Current Period,C

104、TFS Construction Group secured approximately HK$4.5 billion in new contracts,including,but not limited to,excavation and lateral support works(stages 1&2)for the integrated basement and underground road in zones 2A,2B&2C of The West Kowloon Cultural District,foundation,excavation and lateral support

105、,pile cap and basement slab works for New Kowloon Inland Lot No.6590,Kai Tak,Area 2A Site 3,and residential redevelopment at No.30,34,36&38 Magazine Gap Road(Mansion C superstructure).Hip Hing Groups technological proficiency has been recognized globally,with its Kai Tak Sports Park(“KTSP”)project w

106、inning the Design for Buildings category at the buildingSMART openBIM Awards 2024,selected from among 164 submissions worldwide.This accolade underscores the projects exceptional use of openBIM in the built asset industry.Additionally,the project secured a runner-up position in the Construction for

107、Buildings category,highlighting its innovative design and cutting-edge engineering achievements.Facilities ManagementThe Facilities Management segment,excluding Free Duty business which was divested during the Current Period,reported an AOP of HK$48.5 million in the Current Period,compared to an AOP

108、 of HK$71.7 million in the Last Period.GHK Hospital demonstrated considerable improvement,with a significantly reduced AOL compared to the Last Period,contributing positively to the segment.However,this was partially offset by subdued food and beverage revenue at HKCEC,resulting from reduced banquet

109、 events amid a sluggish economy,and KTSP remaining in its pre-operational phase.Divestment of the Free Duty business,which recorded an AOP of HK$52.5 million in the Last Period but shifted to an AOL of HK$39.2 million in the Current Period,is expected to enhance the Facilities Management segments fu

110、ture profitability.Driven by its premier healthcare service and enhanced reputation,GHK Hospital has shown consistent progress during the Current Period.This advancement is evidenced by the increase in the number of inpatients,outpatients and day cases by 2%,5%and 28%year-on-year,respectively.Conseq

111、uently,revenue demonstrated a stable growth and AOL further narrowed in the Current Period.EBITDA surged by 35%year-on-year,with the EBITDA margin continuing to grow.As at 31 December 2024,the number of regularly utilized beds remained at 313(30 June 2024:313),and the average occupancy rate stood at

112、 64%(30 June 2024:65%).Management Discussion and Analysis13Interim Report 2025To support GHK Hospitals development,additional ancillary healthcare services have been introduced,facilitating seamless patients referrals.In November 2024,the Groups business venture with IHH Healthcare Berhad,namely,Par

113、kway Medical Services(Hong Kong)Limited(“Parkway Medical”),opened a new clinic on Western District of Hong Kong Island,offering comprehensive primary healthcare services,including general outpatient consultations,health screenings,vaccinations and traditional Chinese medicine services such as intern

114、al medicine,acupuncture and bone-setting.In September 2024,the Gleneagles Primo Surgical Centre was launched in Central,providing diagnostic and treatment services for head,neck and breast-related diseases,as well as minor surgical procedures.These expansions,alongside Gleneagles Healthcare Wong Chu

115、k Hang Hong Kong,Gleneagles Healthcare South Horizons Hong Kong,Gleneagles Medical Clinic Central Hong Kong,Gleneagles Pro-HEART Cardiac Centre and Parkway Laboratory Services Central Hong Kong,collectively form a robust service network for GHK Hospital.Additionally,GHK Hospital unveiled the first p

116、rivate hospital clinical trials centre in Hong Kong in September 2024,in partnership with the Faculty of Medicine of The University of Hong Kong.This centre focuses on conducting clinical research on treatments,procedures,drugs,vaccines and medical devices,with an initial emphasis on oncology.It mar

117、ked an important step in GHK Hospitals commitment to advancing medical research and patient care.HKCEC has been focusing on attracting a diverse range of exhibitions and events to be held in Hong Kong,augmented by the return of international and regional activities,along with new events.In the Curre

118、nt Period,total patronage grew by 9%year-on-year,reaching approximately 4.6 million under 426 events hosted by HKCEC.Kai Tak Sports Park Limited(“KTSPL”),in which the Group holds a 25%interest,was awarded a 25-year Design-Build-and-Operate(DBO)contract by the Hong Kong government for the KTSP projec

119、t in end-2018.KTSP features state-of-the-art venues and facilities designed to host large-scale vibrant events,enhance community engagement and boost Hong Kongs mega event economy.The retail mall spanning nearly 700,000 square feet across three main buildings within KTSP now features over 30 leading

120、 sports brands and a total of 70 restaurants.During the Current Period,KTSP remained in its pre-operational phase.The Group completed the disposal of its entire stake in Free Duty business during the Current Period,marking a full exit from all investments in duty free-related businesses.Strategic In

121、vestmentsThis segment includes investments with strategic value to the Group and with growth potential,which will enhance and create value for our shareholders.In the Current Period,AOP grew remarkably by 95%to HK$55.9 million(Last Period:HK$28.6 million),which mainly comprised the share of results,

122、net fair value change,interest and dividend income from a range of investments.The respectable increase in AOP was mainly attributable to the positive contributions from certain businesses with improvement in operating performance within the segment as well as the decrease in expected credit loss pr

123、ovision recorded.To demonstrate the Groups commitment to optimizing its business portfolio and unlocking value for shareholders,the Groups joint venture entity completed the disposal of its entire interests in Hyva Group,along with the Groups shareholder loan,to Jost-Werke International Beteiligungs

124、verwaltung GmbH in January 2025.The enterprise value of Hyva Group under the disposal amounted to US$425 million,with the Groups share of net proceeds of approximately HK$1.2 billion.The Groups share of remeasurement loss of HK$319.9 million arising from the disposal of this legacy project was recor

125、ded in the Current Period as a non-operating item.Management Discussion and Analysis14CTF Services LimitedBUSINESS OUTLOOKRoadsThe government of the Peoples Republic of China(“PRC”)has proposed multiple easing policies to stimulate domestic demand.While the anticipated macroeconomic rebound may fuel

126、 the resurgence of truck traffic and support the ongoing recovery of passenger car traffic,the toll road sector still faces uncertainties,which may lead to unpredictable revenue volatilities.Looking ahead,the Group will maintain agility and efficiency in daily operations,closely monitoring market tr

127、ends while navigating potential difficulties.InsuranceAs CTF Life embarks on its rebranding journey,the company anticipates increasing synergies within the Chow Tai Fook Group.This collaboration is expected to foster integrated development across various sectors,particularly through strategic partne

128、rships that leverage the strengths of the Chow Tai Fook Groups diverse businesses.Alongside the new brand,the“CTF Life CIRCLE”membership programme was launched to fully embody the brand promise.It offers“diverse experience”,“lifestyle privileges”and access to the Chow Tai Fook Groups“membership alli

129、ance”,providing customers and their families with exceptional lifestyle experiences.Members can enjoy exclusive offers across the Chow Tai Fook Groups extensive portfolio,including hotel accommodation,retail,food&beverage,education,healthcare services and more.In addition,CTF Life will continue to b

130、olster its agency force,enhance its distribution capabilities and expand its market reach.This strategy includes augmenting the number of agents who can sell higher-margin products,boosting agency productivity and diversifying the backgrounds of its agents.CTF Life strives to continue improving on c

131、ustomer engagement and service delivery.Strengthening the agency network will ensure its competitive edge in the evolving insurance landscape.To meet the rising demand for healthcare safeguards and investment products with death protection,CTF Life has introduced the“ChampCare”Medical Insurance Plan

132、(VHIS)(“ChampCare”)and the“We Shine”Protection Linked Plan(ILAS)in January 2025.In addition to providing tax deduction benefits,“ChampCare”fully covers eligible medical expenses under key basic benefit items,ensuring that treatment is not hindered by inadequate group medical coverage or personal fin

133、ancial constraints.It also offers a comprehensive array of thoughtfully designed enhanced benefits,promoting the overall protection of both physical and mental well-being.As CTF Life steps into its 40th anniversary,the company remains committed to innovation and excellence,positioning itself for sus

134、tained growth and profitability in the years to come.The alignment with Chow Tai Fook Groups initiatives,along with an increased agency force,sets a promising trajectory for the wealth management business,enabling CTF Life to deliver exceptional value to its stakeholders.In line with this,the Group

135、will also leverage on its life insurance business to expand as a holistic wealth management platform,offering a more comprehensive suite of services.LogisticsATL will continue to surpass the competition and maintain its preeminent position by leveraging its superior warehouse facilities and unparall

136、eled location.The solid demand for ATL is non-discretionary,as it mainly serves as a distribution hub for the major retailers and the third-party logistics in Hong Kong.Management Discussion and Analysis15Interim Report 2025The logistics industry plays a pivotal role in the Mainland economy.Fuelled

137、by sustained demand in e-commerce,ongoing consumption recovery,continued export activities and favourable governmental policies,the Mainland logistics industry is poised for sustainable development in the medium term.Business customers increasingly prioritize logistics service quality and reliabilit

138、y.The competitive landscape is transitioning from a focus on cost-cutting to the provision of integrated,high-standard logistics services,which the Group strives to provide.The Group has been vigilant in exploring price dislocation of logistics assets in the Mainland that may provide above-average r

139、isk-adjusted returns from a low valuation point,particularly targeting high-standard logistics warehouses in strategic locations within the Greater Bay Area,to cultivate an ecosystem within the Logistics segment and bolster recurring cash flow.Supply chain reconfiguration and the need for efficient

140、distribution networks will continue to serve as a fundamental cornerstone of the Groups Logistics segment,buoyed by the desirable locations of the Groups logistics properties in the strategic hubs of Hong Kong,Chengdu,Wuhan and Suzhou.In November 2024,the government of the PRC unveiled reforms to th

141、e comprehensive transportation system aimed at reducing the logistics costs across society and improving economic efficiency.These reforms include further optimization of the freight transportation structure and an increase in the proportion of railway freight volume and railway freight turnover.Thi

142、s initiative is expected to secure robust demand and a promising outlook for CUIRC.ConstructionThe Hong Kong Governments development initiative of the Northern Metropolis in the coming decade aims to create a new economic growth engine and address land shortages.The Northern Metropoliss total land a

143、rea of approximately 30,000 hectares will potentially house up to 2.5 million residents,indicating a sustained demand for building construction projects in the medium to long term,which will benefit CTFS Construction Group.With its proven track record and technical expertise,CTFS Construction Group

144、is well positioned to stand out from the competition to secure new projects.The Groups continuous efforts in optimizing building procedures and adopting technologies like Building Information Modelling(BIM)will further improve efficiency and mitigate cost pressures.Additionally,the upcoming completi

145、on of the acquisition of Hsin Chong Aster,an E&M engineering specialist,will strengthen CTFS Construction Groups competitive position.This acquisition will enable the delivery of comprehensive solutions that align with the growing demand for integrated construction services in Hong Kong in a more co

146、st-efficient manner.Facilities ManagementThe Group remains confident in the future of the Facilities Management segment.The Chief Executives 2024 Policy Address introduced the Incentive Scheme for Recurrent Exhibitions 2.0,with an additional HK$500 million allocated to support new and international

147、exhibitions of large scale.This initiative aims to boost the mega-event economy and the convention and exhibition industry.HKCEC will capitalize on this opportunity by consistently delivering exceptional customer service through its world-class facilities.By leveraging emerging technologies and inno

148、vative event formats,HKCEC aims to enhance attendee engagement and bolster Hong Kongs international image.Management Discussion and Analysis16CTF Services LimitedGHK Hospitals operational and financial metrics are on an upward trajectory.It continues to elevate service quality and strengthen its bra

149、nd reputation through a meticulously curated set of strategic initiatives aimed at attracting a broader patient demographic.By leveraging innovation and cutting-edge technology,GHK Hospital is poised to introduce sophisticated medical systems and state-of-the-art robotic surgical systems to signific

150、antly enhance clinical outcomes.Additionally,Parkway Medical is set to grow its service network by inaugurating more clinics and centres at selected locations across the city.A hallmark of this expansion is the forthcoming ambulatory care centre,which will provide an array of services,including day

151、surgeries,oncology services and endoscopic procedures,with a grand opening anticipated by the end of 2025.KTSP is on track for its official opening in early 2025,with a promising outlook ahead.KTSP will become a vital part of Hong Kongs event landscape.The KTSP stadium will serve as a key venue for

152、both local and international events,contributing to Hong Kongs economic growth.Notable events already confirmed include the World Grand Prix 2025,Hong Kong Rugby Sevens,concerts by internationally renowned superstars,and the 15th National Games of the PRC.Additional events in the pipeline promise a

153、dynamic calendar ahead.These events will draw large crowds and fans from overseas,engaging the community as well as bringing benefits to surrounding businesses.The Group is dedicated to enhancing its operations,optimizing venue usage and leasing strategies,which should lead to progressively improvin

154、g financial results in the future.LOOKING FORWARDThe Group remains steadfast in its commitment to prudent capital and cash flow management,ensuring a healthy liquidity profile.We will continue to rigorously evaluate,while maintaining a disciplined approach,compelling investment opportunities in logi

155、stics and wealth management businesses arising from market challenges.This strategy aims to enhance long-term growth prospects and further strengthen the quality of our business portfolio.Operational excellence across our diversified portfolio remains a cornerstone of our strategy,providing foundati

156、onal strength to safeguard cash flow resilience and solid performance.This resilience supports our sustainable and progressive dividend policy,even amidst market volatilities.Our focus on the interests of our stakeholders and creating value over economic cycles is unwavering,underpinned by a stringe

157、nt risk management policy.As the market landscape evolves rapidly,the Group will stay vigilant,agile,and adaptive to navigate risks and seize opportunities.This proactive approach ensures sustainable growth and enhances value for our stakeholders.17Interim Report 2025Independent Auditors Review Repo

158、rtREPORT ON REVIEW OF INTERIM FINANCIAL STATEMENTSTO THE BOARD OF DIRECTORS OF CTF SERVICES LIMITED(incorporated in Bermuda with limited liability)INTRODUCTIONWe have reviewed the interim financial statements set out on pages 18 to 60,which comprise the condensed consolidated statement of financial

159、position of CTF Services Limited(the“Company”)and its subsidiaries(together,the“Group”)as at 31 December 2024 and the condensed consolidated income statement,the condensed consolidated statement of comprehensive income,the condensed consolidated statement of changes in equity and the condensed conso

160、lidated statement of cash flows for the six-month period then ended,and notes,comprising material accounting policy information and other explanatory information.The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited require the preparation of a report on interim fi

161、nancial statements to be in compliance with the relevant provisions thereof and Hong Kong Accounting Standard 34“Interim Financial Reporting”issued by the Hong Kong Institute of Certified Public Accountants.The directors of the Company are responsible for the preparation and presentation of these in

162、terim financial statements in accordance with Hong Kong Accounting Standard 34“Interim Financial Reporting”.Our responsibility is to express a conclusion on these interim financial statements based on our review and to report our conclusion solely to you,as a body,in accordance with our agreed terms

163、 of engagement and for no other purpose.We do not assume responsibility towards or accept liability to any other person for the contents of this report.SCOPE OF REVIEWWe conducted our review in accordance with Hong Kong Standard on Review Engagements 2410,“Review of Interim Financial Information Per

164、formed by the Independent Auditor of the Entity”issued by the Hong Kong Institute of Certified Public Accountants.A review of interim financial statements consists of making inquiries,primarily of persons responsible for financial and accounting matters,and applying analytical and other review proce

165、dures.A review is substantially less in scope than an audit conducted in accordance with Hong Kong Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit.Accordingly,we do not express an

166、 audit opinion.CONCLUSIONBased on our review,nothing has come to our attention that causes us to believe that the interim financial statements of the Group is not prepared,in all material respects,in accordance with Hong Kong Accounting Standard 34“Interim Financial Reporting”.PricewaterhouseCoopers

167、Certified Public AccountantsHong Kong,26 February 202518CTF Services LimitedCondensed Consolidated Income Statement(Unaudited)For the six months ended31 December 20242023NoteHK$mHK$m RevenueNon-insurance10,120.812,361.6Insurance1,988.91,616.9 412,109.713,978.5Cost of sales5,7(8,770.6)(10,804.4)Insur

168、ance service expenses5(1,420.7)(1,253.1)Net(expenses)/income from reinsurance contracts held(18.9)79.5Insurance finance expenses(890.5)(1,332.9)Other income and gains,net61,329.71,625.4Selling and marketing expenses5(85.7)(84.5)General and administrative expenses5(406.4)(490.1)Operating profit51,846

169、.61,718.4Finance costs(727.2)(537.5)Share of results ofAssociated companies111.143.3Joint ventures357.8475.5 Profit before income tax1,588.31,699.7Income tax expenses8(323.3)(359.6)Profit for the period1,265.01,340.1 Profit/(loss)attributable toShareholders of the Company1,157.61,008.8Holders of per

170、petual capital securities109.0311.9Non-controlling interests(1.6)19.4 1,265.01,340.1 Basic and diluted earnings per share attributable to shareholders of the Company9HK$0.29HK$0.28 19Interim Report 2025Condensed Consolidated Statement of Comprehensive Income(Unaudited)For the six months ended31 Dece

171、mber 20242023HK$mHK$m Profit for the period1,265.01,340.1 Other comprehensive(loss)/incomeItems that will not be reclassified to profit or lossNet fair value change on equity instruments as financial assets at fair value through other comprehensive income(“FVOCI”)(80.9)(92.5)Remeasurement of post-em

172、ployment benefit obligation0.50.3Items that have been reclassified/may be subsequently reclassified to profit or lossNet fair value change on debt instruments as financial assets at FVOCI and other net movement7.6230.8Release of reserve upon disposal of debt instruments as financial assets at FVOCI6

173、6.9(3.0)Share of other comprehensive loss of associated companies and a joint venture(1.2)(4.9)Cash flow hedges(113.6)(54.3)Net insurance finance(expenses)/income(2.3)49.6Currency translation differences(66.8)174.5 Other comprehensive(loss)/income for the period,net of tax(189.8)300.5 Total comprehe

174、nsive income for the period1,075.21,640.6 Total comprehensive income/(loss)attributable toShareholders of the Company967.91,308.2Holders of perpetual capital securities109.0311.9Non-controlling interests(1.7)20.5 1,075.21,640.6 20CTF Services LimitedCondensed Consolidated Statement of Financial Posi

175、tion(Unaudited)(Audited)As at 31 December 2024As at 30 June 2024NoteHK$mHK$m ASSETSIntangible assets105,977.35,928.8Intangible concession rights1111,537.312,226.1Investment properties125,229.15,479.1Property,plant and equipment131,203.61,252.2Right-of-use assets895.2974.4Associated companies144,646.

176、74,540.3Joint ventures1517,310.217,403.8Insurance contract assets241,252.0548.3Reinsurance contract assets2468.9221.2Debt instruments as financial assets at amortized cost161,390.41,391.4Financial assets at FVOCI1712,721.211,624.4Financial assets at fair value through profit or loss(“FVPL”)1862,566.

177、159,746.6Derivative financial instruments211.6367.2Inventories21.218.4Trade and other receivables199,004.09,158.9Investments related to unit-linked contracts20(a)9,030.79,041.3Cash and bank balances18,612.214,788.0Assets held-for-sale373.3 Total assets161,677.7155,083.7 21Interim Report 2025 Condens

178、ed Consolidated Statement of Financial Position(Unaudited)(Audited)As at 31 December 2024As at 30 June 2024NoteHK$mHK$m EQUITYShare capital213,997.53,997.5Reserves2234,472.134,898.7 Shareholders funds38,469.638,896.2Perpetual capital securities232,349.14,436.4Non-controlling interests17.319.1 Total

179、equity40,836.043,351.7 LIABILITIESDeferred tax liabilities1,191.01,266.5Insurance contract liabilities2469,322.664,565.9Reinsurance contract liabilities2421.855.5Financial liabilities related to unit-linked contracts20(b)3,994.44,188.8Borrowings and other interest-bearing liabilities2534,695.729,895

180、.4Derivative financial instruments684.1384.9Trade and other payables269,964.89,699.2Lease liabilities656.4738.9Taxation310.9570.9Liabilities directly associated with assets held-for-sale366.0 Total liabilities120,841.7111,732.0 Total equity and liabilities161,677.7155,083.7 22CTF Services LimitedCon

181、densed Consolidated Statement of Changes in Equity(Unaudited)For the six months ended 31 December 2024 Shareholders funds HK$mNoteShare capitalShare premiumRevenue reserveOther reservesTotalPerpetual capital securitiesNon-controlling interestsTotal As at 30 June 2024 and 1 July 20243,997.518,303.614

182、,464.52,130.638,896.24,436.419.143,351.7 Total comprehensive income/(loss)for the period1,158.1(190.2)967.9109.0(1.7)1,075.2 Transactions with ownersDividend paid toShareholders of the Company22,27(1,399.1)(1,399.1)(1,399.1)Non-controlling interests(0.1)(0.1)Distribution to perpetual capital securit

183、ies holders(104.3)(104.3)Share of reserve of an associated company4.64.64.6Redemption of perpetual capital securities23(2,092.0)(2,092.0)Transfer of reserves22(384.3)384.3 Total transactions with owners(1,778.8)384.3(1,394.5)(2,196.3)(0.1)(3,590.9)As at 31 December 20243,997.518,303.613,843.82,324.7

184、38,469.62,349.117.340,836.0 23Interim Report 2025 Condensed Consolidated Statement of Changes in Equity(Unaudited)For the six months ended 31 December 2023 Shareholders funds HK$mNoteShare capitalShare premiumRevenue reserveOther reservesTotalPerpetual capital securitiesNon-controlling interestsTota

185、l As at 1 July 20233,910.517,817.022,133.71,755.945,617.110,353.650.856,021.5 Total comprehensive income for the period1,009.1299.11,308.2311.920.51,640.6 Transactions with ownersDividend paid toShareholders of the Company27(1,212.7)(1,212.7)(1,212.7)Non-controlling interests(0.1)(0.1)Distribution t

186、o perpetual capital securities holders(323.8)(323.8)Share optionsValue of services provided44.444.444.4New shares issued1.49.811.211.2Share of reserve of a joint venture(35.2)(35.2)(35.2)Derecognition of perpetual capital securities as equity102.7102.7(8,242.5)(8,139.8)Transfer of reserves89.3(89.3)

187、Total transactions with owners1.49.8(1,020.7)(80.1)(1,089.6)(8,566.3)(0.1)(9,656.0)As at 31 December 20233,911.917,826.822,122.11,974.945,835.72,099.271.248,006.1 24CTF Services LimitedCondensed Consolidated Statement of Cash Flows(Unaudited)For the six months ended31 December 20242023NoteHK$mHK$m C

188、ash flows from operating activitiesNet cash generated from operations30(a)5,013.06,646.6Finance costs paid(660.8)(458.4)Interest received1,644.01,371.1Dividends received from financial assets in relation to insurance business and investments related to unit-linked contracts319.5208.7Hong Kong profit

189、s tax paid(391.5)(345.3)The Mainland and overseas taxation paid(243.5)(276.3)Net cash generated from operating activities before net purchase of financial assets in relation to insurance business5,680.77,146.4 Purchases of financial assets in relation to insurance business(24,176.7)(30,790.9)Disposa

190、l of financial assets in relation to insurance business20,085.623,414.1 (4,091.1)(7,376.8)Net cash generated from/(used in)operating activities1,589.6(230.4)Cash flows from investing activitiesDividends received from associated companies and joint ventures581.0743.4Decrease/(increase)in investments

191、in and advances to associated companies305.6(26.2)(Increase)/decrease in investments in and advances to joint ventures(123.2)60.0Disposal of subsidiaries,net of cash disposed of30(b)214.4Proceeds received from disposals of interests in subsidiaries and associated companies115.06.3Additions of intang

192、ible assets,intangible concession rights and property,plant and equipment(216.7)(254.1)Purchases of debt instruments as financial assets at amortized cost(49.9)Purchases of financial assets at FVPL(189.1)(217.0)Disposal of debt instruments as financial assets at amortized cost39.0Disposal of financi

193、al assets at FVOCI20.0Disposal of financial assets at FVPL0.746.6Settlement of derivative financial instruments9.79.5Dividends received from financial assets at FVOCI and financial assets at FVPL1.9Others20.7(4.3)Net cash generated from investing activities738.1355.2 25Interim Report 2025 Condensed

194、Consolidated Statement of Cash Flows(Unaudited)For the six months ended31 December 20242023NoteHK$mHK$m Cash flows from financing activitiesIssuance of new shares from share options exercised11.2New bank loans and other borrowings5,940.95,140.9Issuance of fixed rate bonds25(b)3,074.12,137.6Repayment

195、 of bank loans and other borrowings(4,005.8)(4,947.6)Repayment of financing received under a financial reinsurance arrangement(155.7)(41.8)Settlement of derivative financial instruments261.5Distribution to perpetual capital securities holders(104.3)(323.8)Redemption of perpetual capital securities23

196、(2,092.0)Capital elements of lease liabilities payments(123.2)(125.7)Dividend paid to shareholders of the Company27(1,399.1)(1,212.7)Dividend paid to non-controlling interests(0.1)(0.1)(Decrease)/increase in cash collateral received from counterparties(1.6)3.6 Net cash from financing activities1,394

197、.7641.6 Net increase in cash and cash equivalents3,722.4766.4Cash and cash equivalents at the beginning of the period14,950.719,257.9Currency translation differences(29.6)55.4 Cash and cash equivalents at the end of the period18,643.520,079.7 Analysis of cash and cash equivalentsCash and bank balanc

198、es18,612.220,070.5Cash and bank balances attributable to investments related to unit-linked contracts20(a)44.222.9Time deposits with original maturity more than three months(12.9)(13.7)18,643.520,079.7 26CTF Services LimitedNotes to Condensed Consolidated Interim Financial Statements1.GENERAL INFORM

199、ATIONCTF Services Limited(formerly known as“NWS Holdings Limited”)is a limited liability company incorporated in Bermuda.The address of its registered office is Clarendon House,2 Church Street,Hamilton HM 11,Bermuda.The principal activity of the Company is investment holding.The principal activities

200、 of its subsidiaries include the development of,investment in and/or operation of toll roads,insurance,logistics,construction and facilities management businesses.The Company has its listing on the Main Board of the Hong Kong Stock Exchange.The unaudited condensed consolidated interim financial stat

201、ements(the“interim financial statements”)were approved for issuance by the Board on 26 February 2025.2.BASIS OF PREPARATION AND ACCOUNTING POLICIESThe interim financial statements have been prepared in accordance with Hong Kong Accounting Standard 34“Interim Financial Reporting”issued by the Hong Ko

202、ng Institute of Certified Public Accountants(“HKICPA”)and Appendix D2 of the Listing Rules.The interim financial statements should be read in conjunction with the annual financial statements for the financial year ended 30 June 2024(“FY2024”).The accounting policies used in the preparation of the in

203、terim financial statements are consistent with those set out in the annual report for FY2024 except as described in note 2(a)below.(a)Adoption of amendments to standards and interpretationDuring the Current Period,the Group has adopted the following amendments to standards and interpretation which a

204、re relevant to the Groups operations and are mandatory for FY2025:HKAS 1(Amendments)Classification of Liabilities as Current or Non-currentHKAS 1(Amendments)Non-current Liabilities with CovenantsHKAS 7 and HKFRS 7(Amendments)Supplier Finance ArrangementsHKFRS 16(Amendments)Lease Liability in a Sale

205、and LeasebackHK Interpretation 5(Revised)Presentation of Financial Statements Classification by the Borrower of a Term Loan that Contains a Repayment on Demand ClauseThe adoption of the amendments to standards and interpretation does not have significant effect on the results and financial position

206、of the Group.27Interim Report 2025 Notes to Condensed Consolidated Interim Financial Statements2.BASIS OF PREPARATION AND ACCOUNTING POLICIES(CONTINUED)(b)Standards and amendments to standards which are not yet effectiveThe following new standards and amendments to standards are mandatory for accoun

207、ting period beginning on or after 1 July 2025 or later periods but which the Group has not early adopted:HKAS 21(Amendments)Lack of ExchangeabilityHKFRS 9 and HKFRS 7(Amendments)Amendments to the Classification and Measurement of Financial InstrumentsHKFRS 9 and HKFRS 7(Amendments)Contracts Referenc

208、ing Nature-dependent ElectricityHKFRS 10 and HKAS 28(Amendments)Sale or Contribution of Assets between an Investor and its Associate or Joint VentureHKFRS 18Presentation and Disclosure in Financial StatementsHKFRS 19Subsidiaries without Public Accountability:DisclosuresHKFRSs AmendmentsAnnual Improv

209、ements to HKFRS Accounting Standards Volume 11The Group has commenced the assessment on the impact of adoption of the new standards and amendments to standards,certain of which may be relevant to the Groups operations and may give rise to changes in accounting policies,changes in disclosures and rem

210、easurement of certain items in the consolidated financial statements.3.FINANCIAL AND INSURANCE RISKS MANAGEMENT AND FAIR VALUE ESTIMATION(a)Financial and insurance risksThe Groups activities expose it to a variety of financial risks:market risk(interest rate risk,foreign exchange risk and price risk

211、),credit risk and liquidity risk.The Group is also exposed to insurance risk relating to the activities of its insurance business.The interim financial statements do not include all financial and insurance risks management information and disclosures required in the annual financial statements,and s

212、hould be read in conjunction with the Groups FY2024 annual financial statements.There has been no significant change in any risk management policies since the last year end.(b)Fair value estimationThe carrying amounts and fair value disclosures of the financial instruments of the Group are as follow

213、s:(i)Listed investments are stated at market prices.The quoted market price used for financial assets held by the Group is the bid price at the end of the reporting period.Unlisted investments are stated at fair values based on quoted market price or estimated using other prices observed in recent t

214、ransactions or valuation techniques when the market is not readily available.(ii)The fair value of unlisted long-term financial assets and liabilities is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Group for similar financia

215、l instruments.28CTF Services LimitedNotes to Condensed Consolidated Interim Financial Statements3.FINANCIAL AND INSURANCE RISKS MANAGEMENT AND FAIR VALUE ESTIMATION(CONTINUED)(b)Fair value estimation(continued)(iii)The carrying values of bank balances,short-term receivables and payables approximate

216、their fair values due to the short-term maturities of these assets and liabilities.(iv)The fair value of debt instruments as financial assets at amortized cost are detailed in note 16(a).(v)The following table presents the Groups financial instruments,including“financial assets at FVOCI”,“financial

217、assets at FVPL”,“derivative financial instruments”,financial assets at FVPL under“investments related to unit-linked contracts”and“financial liabilities related to unit-linked contracts”,that are measured at fair value at 31 December 2024 and 30 June 2024 respectively:Quotedprices(unadjusted)inactiv

218、emarketsforidenticalassetsorliabilities(Level1).InputsotherthanquotedpricesincludedwithinLevel1thatareobservablefortheassetorliability,either directly(that is,as prices)or indirectly(that is,derived from prices)(Level 2).Inputsfortheassetorliabilitythatarenotbasedonobservablemarketdata(thatis,unobse

219、rvable inputs)(Level 3).As at 31 December 2024HK$mLevel 1Level 2Level 3Total AssetsFinancial assets at FVOCI Equity instruments584.64.5589.1 Debt instruments9,659.52,472.612,132.1Financial assets at FVPL Equity instruments1,306.9114.31,421.2 Debt instruments39,395.32,799.11,378.043,572.4 Investment

220、funds12,459.70.25,112.617,572.5Derivative financial instruments211.6211.6Investments related to unit-linked contracts Investment funds8,986.58,986.5 72,392.55,483.56,609.484,485.4 LiabilitiesDerivative financial instruments(684.1)(684.1)Financial liabilities related to unit-linked contracts(3,994.4)

221、(3,994.4)(4,678.5)(4,678.5)29Interim Report 2025 Notes to Condensed Consolidated Interim Financial Statements3.FINANCIAL AND INSURANCE RISKS MANAGEMENT AND FAIR VALUE ESTIMATION(CONTINUED)(b)Fair value estimation(continued)(v)(continued)As at 30 June 2024HK$mLevel 1Level 2Level 3Total AssetsFinancia

222、l assets at FVOCI Equity instruments899.44.5903.9 Debt instruments8,777.91,942.610,720.5Financial assets at FVPL Equity instruments1,187.4189.21,376.6 Debt instruments42,028.52,568.51,325.945,922.9 Investment funds7,903.60.24,543.312,447.1Derivative financial instruments367.2367.2Investments related

223、 to unit-linked contracts Investment funds8,967.150.99,018.0 69,763.94,929.46,062.980,756.2 LiabilitiesDerivative financial instruments(384.9)(384.9)Financial liabilities related to unit-linked contracts(4,188.8)(4,188.8)(4,573.7)(4,573.7)During the Current Period,there were transfer of assets relat

224、ing to the Groups insurance business as financial assets at FVOCI and financial assets at FVPL with fair values of HK$136.6 million(2023:HK$628.7 million)and HK$605.8 million(2023:nil)respectively from Level 1 to Level 2 fair value hierarchy.Assets are transferred into or out of Level 1 based on whe

225、ther they are transacted with sufficient frequency and volume in an active market.30CTF Services LimitedNotes to Condensed Consolidated Interim Financial Statements3.FINANCIAL AND INSURANCE RISKS MANAGEMENT AND FAIR VALUE ESTIMATION(CONTINUED)(b)Fair value estimation(continued)(v)(continued)The foll

226、owing table presents the changes of financial instruments categorized within Level 3 fair value hierarchy for the Current Period:Assets FinancialFinancialassets atassets atHK$mFVOCIFVPLTotal As at 30 June 2024 and 1 July 20244.56,058.46,062.9Translation differences(10.4)(10.4)Purchases575.9575.9Disp

227、osals/derecognized(189.1)(189.1)Net fair value change recognized in condensed consolidated income statement170.1170.1 As at 31 December 20244.56,604.96,609.4 Net unrealized fair value change recognized in condensed consolidated income statement relating to balances held as at 31 December 2024176.817

228、6.8 As at 31 December 2024,financial instruments categorized within Level 3 fair value hierarchy comprise investment funds and unlisted debt and equity instruments.The fair value of these financial instruments is determined by using valuation techniques as detailed below:Forinvestmentsinunlistedinve

229、stmentfunds,managementdiscussedwiththerespectivefund managers to understand the performance of the underlying investments and fair value measurement basis conducted by the respective fund managers in order to evaluate whether the fair values as stated in the fund statements at the end of reporting p

230、eriod is appropriate;Forinvestmentsinequityanddebtinstrumentswithrecenttransactions,managementdetermined the fair value at the end of reporting period with reference to recent transaction prices of these financial assets;andForinvestmentsinequityanddebtinstrumentswithoutrecenttransactions,management

231、has established fair values of these investments by using appropriate valuation techniques such as discounted cash flow with the credit risk of the issuer taken into consideration for investments in bonds and the purchase price paid by the Group with consideration to the latest financial information

232、,movement of market comparable/market indices and the latest business development of the investee companies,where applicable.Independent external valuer has been involved in determining the fair value,when appropriate.31Interim Report 2025 Notes to Condensed Consolidated Interim Financial Statements

233、4.REVENUE AND SEGMENT INFORMATIONThe Groups revenue is analyzed as follows:For the six months ended 31 December 2024 HK$mHong KongThe MainlandTotal Roads1,439.61,439.6Insurance1,988.91,988.9Logistics75.775.7Construction7,365.87,365.8Facilities Management1,236.43.31,239.7 10,591.11,518.612,109.7 For

234、the six months ended 31 December 2023 HK$mHong KongThe MainlandTotal Roads1,468.41,468.4Insurance1,616.91,616.9Logistics84.384.3Construction9,375.59,375.5Facilities Management1,424.19.31,433.4 12,416.51,562.013,978.5 32CTF Services LimitedNotes to Condensed Consolidated Interim Financial Statements4

235、.REVENUE AND SEGMENT INFORMATION(CONTINUED)Revenue from insurance business is further analyzed as follows:For the six months ended31 December 20242023HK$mHK$m Contractual service margin(“CSM”)recognized for services provided570.2376.2Change in risk adjustment for non-financial risk for risk expired2

236、.91.8Expected incurred claims and other insurance service expenses809.2755.4Recovery of insurance acquisition cash flows429.0297.6Others85.788.9 Amounts related to changes in liabilities for remaining coverage1,897.01,519.9 Fee income on insurance and investment contracts88.794.7General insurance co

237、mmission under agency agreements3.12.3Others0.1 Fee and commission income91.997.0 1,988.91,616.9 Management has determined the operating segments based on the reports reviewed by the Executive Committee of the Company that are used to make strategic decisions in accordance with HKFRS 8“Operating Seg

238、ments”.The Executive Committee reviews the Groups internal reporting in order to assess performance and allocate resources.The Executive Committee considers the businesses of the Group from product and service perspectives,which comprised(i)Roads;(ii)Insurance;(iii)Logistics;(iv)Construction;(v)Faci

239、lities Management;and(vi)Strategic Investments.The Executive Committee assesses the performance of the operating segments based on a measure of Attributable Operating Profit(including share of results from associated companies and joint ventures).This measurement basis excludes the effects of non-op

240、erating and unallocated corporate office items.Corporate interest income,finance costs and expenses are not allocated to segments.33Interim Report 2025 Notes to Condensed Consolidated Interim Financial Statements4.REVENUE AND SEGMENT INFORMATION(CONTINUED)(a)The information of the reportable segment

241、s provided to the Executive Committee for the Current Period and related comparative figures is as follows:HK$mRoadsInsuranceLogistics ConstructionFacilities ManagementStrategic InvestmentsTotal For the six months ended 31 December 2024Total revenue1,439.61,990.375.77,365.81,243.712,115.1Inter-segme

242、nt(1.4)(4.0)(5.4)Revenue external1,439.61,988.975.77,365.81,239.712,109.7 Revenue from contracts with customersRecognized at a point in time1,439.6619.62,059.2Recognized over time91.97,365.8620.18,077.8 1,439.691.97,365.81,239.710,137.0 Revenue from other sources1,897.075.71,972.7 1,439.61,988.975.7

243、7,365.81,239.712,109.7 Attributable Operating Profit/(Loss)Company and subsidiaries448.2614.346.6356.986.532.21,584.7Associated companies129.2(1.9)34.0(77.2)43.3127.4Joint ventures189.7343.1(19.6)513.2 767.1614.3387.8390.99.355.92,225.3ReconciliationNon-operating itemsNet loss on fair value of inves

244、tment properties,net of tax(89.7)(i)Impairments,remeasurement and provisions,net(307.4)(ii)Gain on disposal of a project42.7(iii)Share of non-operating income of a joint venture,net81.1(iv)Unallocated corporate office itemsNet finance costs(505.3)Net exchange loss(0.5)Expenses and others(179.6)Profi

245、t for the period after tax and non-controlling interests1,266.6Profit attributable to holders of perpetual capital securities(109.0)Profit attributable to shareholders of the Company1,157.6 (i)Net loss on fair value of investment properties recognized in the condensed consolidated income statement i

246、s HK$223.2 million(note 6),in which a loss of HK$37.6 million is recognized as part of Attributable Operating Profit in various reportable segments.The amount also includes gain on fair value of an investment property shared from a joint venture of HK$93.5 million(net of tax)which is included in“sha

247、re of results of joint ventures”.(ii)The amount mainly represents share of remeasurement loss of a joint venture of HK$319.9 million(note 15(b)which is included in“share of results of joint ventures”.(iii)The amount represents profit on disposal of assets held-for-sale of HK$42.7 million(note 6)whic

248、h is included in“other income and gains,net”.(iv)The amount represents share of non-operating income of a joint venture of HK$95.6 million(note 15(c)less professional fee incurred,which is included in“share of results of joint ventures”.34CTF Services LimitedNotes to Condensed Consolidated Interim F

249、inancial Statements4.REVENUE AND SEGMENT INFORMATION(CONTINUED)(a)The information of the reportable segments provided to the Executive Committee for the Current Period and related comparative figures is as follows:(continued)HK$mRoadsInsuranceLogistics ConstructionFacilities ManagementStrategic Inve

250、stmentsCorporateTotal For the six months ended 31 December 2024Amortization of intangible assets41.01.415.658.0Amortization of intangible concession rights570.8570.8Depreciation of property,plant and equipment50.415.826.352.47.4152.3Depreciation of right-of-use assets0.253.818.645.14.4122.1Insurance

251、 finance expenses890.5890.5Net loss/(gain)on fair value of financial assets at FVPL224.31.4(0.9)224.8Interest income(27.0)(1,482.8)(1.0)(22.1)(53.1)(44.9)(123.1)(1,754.0)Finance costs54.19.94.220.210.20.2628.4727.2Income tax expenses155.260.012.069.521.15.5323.3Additions to assets(remark)47.3163.10.

252、135.714.82.4263.4As at 31 December 2024Company and subsidiaries14,785.898,104.42,998.28,627.92,659.34,211.68,333.6139,720.8Associated companies2,390.1261.6162.8146.51,683.22.54,646.7Joint ventures5,735.99,616.11,588.0370.217,310.2 Total assets22,911.898,104.412,875.98,790.72,805.87,482.88,706.3161,6

253、77.7Total liabilities4,940.674,582.0362.47,991.7887.590.731,986.8120,841.7 Remark:Represented assets expected to be recovered more than 12 months after the reporting period other than financial instruments,deferred tax assets,post-employment benefit assets,insurance contract assets and reinsurance c

254、ontract assets.35Interim Report 2025 Notes to Condensed Consolidated Interim Financial Statements4.REVENUE AND SEGMENT INFORMATION(CONTINUED)(a)The information of the reportable segments provided to the Executive Committee for the Current Period and related comparative figures is as follows:(continu

255、ed)HK$mRoadsInsuranceLogisticsConstructionFacilities ManagementStrategic InvestmentsTotal For the six months ended 31 December 2023Total revenue1,468.41,618.384.39,376.21,434.813,982.0Inter-segment(1.4)(0.7)(1.4)(3.5)Revenue external1,468.41,616.984.39,375.51,433.413,978.5 Revenue from contracts wit

256、h customersRecognized at a point in time1,468.4752.02,220.4Recognized over time97.09,375.5681.410,153.9 1,468.497.09,375.51,433.412,374.3 Revenue from other sources1,519.984.31,604.2 1,468.41,616.984.39,375.51,433.413,978.5 Attributable Operating Profit/(Loss)Company and subsidiaries408.8413.054.636

257、3.2221.631.61,492.8Associated companies89.6(8.2)31.5(97.4)38.554.0Joint ventures318.3310.4(41.5)587.2 816.7413.0356.8394.7124.228.62,134.0ReconciliationNon-operating itemsNet loss on fair value of investment properties(22.4)(v)Impairments and provisions(295.0)(vi)Share-based payment(note 5(a)(44.4)U

258、nallocated corporate office itemsNet finance costs(273.6)Net exchange gain20.7Expenses and others(198.6)Profit for the period after tax and non-controlling interests1,320.7Profit attributable to holders of perpetual capital securities(311.9)Profit attributable to shareholders of the Company1,008.8 (

259、v)Net loss on fair value of investment properties recognized in the condensed consolidated income statement for the Last Period was HK$48.4 million(note 6),in which a loss of HK$26.0 million was recognized as part of Attributable Operating Profit in various reportable segments.(vi)The amount mainly

260、represented impairment losses related to associated companies of HK$179.9 million(note 6)included in“other income and gains,net”and share of impairment loss of a joint venture of HK$99.7 million included in“share of results of joint ventures”.36CTF Services LimitedNotes to Condensed Consolidated Int

261、erim Financial Statements4.REVENUE AND SEGMENT INFORMATION(CONTINUED)(a)The information of the reportable segments provided to the Executive Committee for the Current Period and related comparative figures is as follows:(continued)HK$mRoadsInsuranceLogistics ConstructionFacilities ManagementStrategi

262、c InvestmentsCorporateTotal For the six months ended 31 December 2023Amortization of intangible assets37.015.652.6Amortization of intangible concession rights562.8562.8Depreciation of property,plant and equipment52.121.40.525.545.47.7152.6Depreciation of right-of-use assets0.352.519.747.44.4124.3Ins

263、urance finance expenses1,332.91,332.9Net(gain)/loss on fair value of financial assets at FVPL(5.9)1.0(6.6)(11.5)Interest income(29.4)(1,325.5)(0.1)(18.6)(58.2)(42.4)(125.5)(1,599.7)Finance costs74.923.64.323.312.20.1399.1537.5Income tax expenses/(credit)206.060.62.172.028.8(7.0)(2.9)359.6Additions t

264、o assets(remark)89.096.50.294.834.212.2326.9As at 30 June 2024Company and subsidiaries14,331.692,981.33,192.59,035.53,563.74,019.76,015.3133,139.6Associated companies2,234.5266.3149.8166.31,720.92.54,540.3Joint ventures5,644.69,506.31,967.3285.617,403.8 Total assets22,210.792,981.312,965.19,185.33,7

265、30.07,707.96,303.4155,083.7Total liabilities5,159.970,188.3347.18,036.21,342.786.326,571.5111,732.0 Remark:Represented assets expected to be recovered more than 12 months after the reporting period other than financial instruments,deferred tax assets,post-employment benefit assets,insurance contract

266、 assets and reinsurance contract assets.37Interim Report 2025 Notes to Condensed Consolidated Interim Financial Statements4.REVENUE AND SEGMENT INFORMATION(CONTINUED)(b)Additional information of assets and liabilities by the following line items:As at 31 December 2024HK$mNon-insurance and corporateI

267、nsuranceTotal AssetsIntangible assets136.65,840.75,977.3Intangible concession rights11,537.311,537.3Investment properties4,585.1644.05,229.1Associated companies4,646.74,646.7Joint ventures17,310.217,310.2Insurance contract assets1,252.01,252.0Reinsurance contract assets68.968.9Debt instruments as fi

268、nancial assets at amortized cost117.21,273.21,390.4Financial assets at FVOCI747.111,974.112,721.2Financial assets at FVPL2,476.860,089.362,566.1Trade and other receivables8,246.0758.09,004.0Investments related to unit-linked contracts9,030.79,030.7Cash and bank balances11,716.76,895.518,612.2Others2

269、,053.6278.02,331.6 63,573.398,104.4161,677.7 LiabilitiesInsurance contract liabilities69,322.669,322.6Reinsurance contract liabilities21.821.8Financial liabilities related to unit-linked contracts3,994.43,994.4Borrowings and other interest-bearing liabilities34,329.4366.334,695.7Trade and other paya

270、bles9,595.6369.29,964.8Others2,334.7507.72,842.4 46,259.774,582.0120,841.7 (c)Information by geographical areas:Assets expected to be recovered more than 12 months(remark)As atAs at31 December 30 JuneHK$m20242024 Hong Kong10,173.410,299.7The Mainland14,641.615,533.3Others27.527.6 24,842.525,860.6 Re

271、mark:Represented assets expected to be recovered more than 12 months after the reporting period other than financial instruments,deferred tax assets,post-employment benefit assets,insurance contract assets and reinsurance contract assets.38CTF Services LimitedNotes to Condensed Consolidated Interim

272、Financial Statements5.OPERATING PROFITOperating profit of the Group is arrived at after crediting and charging the following:For the six months ended 31 December 20242023NoteHK$mHK$m CreditingGross rental income from investment properties117.3126.3Less:outgoings(29.0)(31.1)88.395.2 ChargingCost of i

273、nventories sold505.8552.7Cost of construction6,156.58,214.9Amortization of intangible assets1058.052.6Amortization of intangible concession rights11570.8562.8Depreciation of property,plant and equipment13152.3152.6Depreciation of right-of-use assets122.1124.3Agency commission and allowances1,164.81,

274、364.7Expenses on short-term leases4.85.5Expenses on variable lease payments68.972.9Staff costs(including directors emoluments and share-based payment)(a)1,484.01,459.0Other costs and expenses701.0682.9 10,989.013,244.9Amounts attributed to insurance contracts(1,726.3)(1,865.9)Amortization of insuran

275、ce acquisition cash flows442.8311.7Incurred claims and other directly attributable expenses917.7942.9Losses on onerous contracts,net of reversal60.2(1.5)10,683.412,632.1 Represented byCost of sales78,770.610,804.4Insurance service expenses1,420.71,253.1Selling and marketing expenses85.784.5General a

276、nd administrative expenses406.4490.1 10,683.412,632.1 (a)The Group recognized the total share-based payment expense of HK$44.4 million in the Last Period in relation to share options granted by the Company.39Interim Report 2025 Notes to Condensed Consolidated Interim Financial Statements6.OTHER INCO

277、ME AND GAINS,NETFor the six months ended31 December 20242023NoteHK$mHK$m Net gain associated with investments related to unit-linked contracts191.1178.9Profit on disposal of assets held-for-sale30(b)42.7Interest income Debt instruments as financial assets at FVPL1,160.91,061.6 Debt instruments as fi

278、nancial assets at FVOCI279.8212.8 Debt instruments as financial assets at amortized cost29.423.2 Bank deposits and others283.9302.1Dividend income202.7149.4Others102.563.9Net(loss)/gain on fair value of derivative financial instruments(304.6)0.9Net(loss)/gain on fair value of financial assets at FVP

279、L(224.8)11.5Net loss on fair value of investment properties12(223.2)(48.4)Charges associated with financial liabilities related to unit-linked contracts(89.9)(71.4)Net exchange loss(67.5)(14.9)Net(loss)/profit on disposal of debt instruments as financial assets at FVOCI(66.9)3.0Impairment losses rel

280、ated to associated companies(179.9)Expected credit loss provision,net of reversal Debt instruments as financial assets at FVOCI(8.0)(83.5)Debt instruments as financial assets at amortized cost(0.3)0.2 Trade and other receivables21.916.0 1,329.71,625.4 Represented byNet investment income and gains fr

281、om insurance business1,089.01,474.5Others240.7150.9 1,329.71,625.4 40CTF Services LimitedNotes to Condensed Consolidated Interim Financial Statements7.COST OF SALESFor the six months ended31 December 20242023NoteHK$mHK$m Cost of inventories sold505.8552.7Cost of construction6,156.58,214.9Cost of ser

282、vices rendered2,108.32,036.8 58,770.610,804.4 8.INCOME TAX EXPENSESHong Kong profits tax is provided at the rate of 16.5%(2023:16.5%)on the estimated assessable profits for the Current Period.Taxation on the Mainland and overseas profits has been calculated on the estimated taxable profits for the C

283、urrent Period at the rates of tax prevailing in the regions in which the Group operates.These rates range from 12%to 25%(2023:12%to 25%).Withholding tax on dividends is mainly provided at the rate of 5%or 10%(2023:5%or 10%).The assessable profits of the Groups insurance business are computed in acco

284、rdance with the special provisions of the Hong Kong Inland Revenue Ordinance(“IRO”).Profits tax for the long-term insurance business,as defined by IRO,is computed at a rate of 16.5%(2023:16.5%)of 5%of net premiums(gross premiums received less reinsurance premiums ceded)of the life insurance business

285、 in accordance with Section 23(1)(a)of IRO.The amount of income tax charged to the condensed consolidated income statement represents:For the six months ended31 December 20242023HK$mHK$m Current taxHong Kong profits tax139.9130.6The Mainland and overseas taxation233.7261.3Deferred tax credit(50.3)(3

286、2.3)323.3359.6 Share of taxation of associated companies and joint ventures of HK$59.2 million(2023:HK$49.1 million)and HK$160.3 million(2023:HK$168.6 million)respectively are included in the condensed consolidated income statement as share of results of associated companies and joint ventures respe

287、ctively.41Interim Report 2025 Notes to Condensed Consolidated Interim Financial Statements8.INCOME TAX EXPENSES(CONTINUED)Pillar Two income taxesIn December 2021,the Organisation for Economic Co-operation and Development released the Pillar Two model rules(the Global Anti-Base Erosion Model Rules,or

288、“GloBE”)for a new global minimum tax reform,which multinational enterprise groups are required to calculate their GloBE effective tax rate for each jurisdiction they operate and will be liable to pay a top-up tax for the difference between their GloBE effective tax rate per jurisdiction and the 15%m

289、inimum rate.The Group,as a subsidiary of a wider group,will be in the scope of the Pillar Two tax reform.As the Group is operating in jurisdictions where the Pillar Two legislation has not been enacted or substantially enacted,there is no current tax exposure.The Group will observe the development o

290、f the legislations and assess the potential impact.9.EARNINGS PER SHAREThe calculation of basic earnings per share is based on earnings of HK$1,157.6 million(2023:HK$1,111.5 million),which represented profit attributable to shareholders of the Company of HK$1,157.6 million(2023:comprised profit attr

291、ibutable to shareholders of the Company of HK$1,008.8 million and gain on derecognition of perpetual capital securities as equity of HK$102.7 million);on the weighted average of 3,997,540,085(2023:3,911,133,705)ordinary shares outstanding during the Current Period.There is no dilutive potential ordi

292、nary share outstanding for the Current Period.For the Last Period,diluted earnings per share was based on earnings of HK$1,111.5 million(as stated above)and on the weighted average number of ordinary shares outstanding adjusted by assuming the conversion of all dilutive potential ordinary shares.The

293、 calculation of weighted average number of shares for calculating diluted earnings per share for the Last Period was as follows:Number of shares Weighted average number of shares for calculating basic earnings per share3,911,133,705Effect of dilutive potential ordinary sharesShare options8,846,617 W

294、eighted average number of shares for calculating diluted earnings per share3,919,980,322 42CTF Services LimitedNotes to Condensed Consolidated Interim Financial Statements10.INTANGIBLE ASSETSHK$mNoteGoodwillOperating right and othersTotal CostAs at 30 June 2024 and 1 July 20245,576.31,078.16,654.4Ad

295、ditions106.5106.5Written off(0.2)(0.2)As at 31 December 20245,576.31,184.46,760.7 Accumulated amortization and impairmentAs at 30 June 2024 and 1 July 2024725.6725.6Amortization558.058.0Written off(0.2)(0.2)As at 31 December 2024783.4783.4 Net book valueAs at 31 December 20245,576.3401.05,977.3 As a

296、t 30 June 20245,576.3352.55,928.8 11.INTANGIBLE CONCESSION RIGHTSNoteHK$m CostAs at 30 June 2024 and 1 July 202423,858.9Translation differences(253.8)As at 31 December 202423,605.1 Accumulated amortization and impairmentAs at 30 June 2024 and 1 July 202411,632.8Amortization5570.8Translation differen

297、ces(135.8)As at 31 December 202412,067.8 Net book valueAs at 31 December 202411,537.3 As at 30 June 202412,226.1 43Interim Report 2025 Notes to Condensed Consolidated Interim Financial Statements12.INVESTMENT PROPERTIESHK$mNoteCommercial properties in Hong KongCommercial properties in the MainlandRe

298、sidentialproperties in the MainlandOthersTotal As at 30 June 2024 and 1 July 20242,608.02,839.84.926.45,479.1Fair value changes6(60.0)(163.0)(0.2)(223.2)Translation differences(26.8)(26.8)As at 31 December 20242,548.02,650.04.926.25,229.1 13.PROPERTY,PLANT AND EQUIPMENTHK$mNoteLand and propertiesOth

299、er plant and equipmentMotor vehiclesTotal CostAs at 30 June 2024 and 1 July 2024251.93,250.323.23,525.4Additions106.83.4110.2Disposals(13.6)(13.6)Translation differences(0.1)(9.7)(9.8)As at 31 December 2024251.83,333.826.63,612.2 Accumulated depreciation and impairmentAs at 30 June 2024 and 1 July 2

300、02438.62,214.220.42,273.2Depreciation53.3148.40.6152.3Disposals(11.8)(11.8)Translation differences(5.1)(5.1)As at 31 December 202441.92,345.721.02,408.6 Net book valueAs at 31 December 2024209.9988.15.61,203.6 As at 30 June 2024213.31,036.12.81,252.2 44CTF Services LimitedNotes to Condensed Consolid

301、ated Interim Financial Statements14.ASSOCIATED COMPANIESAs atAs at31 December 202430 June 2024NoteHK$mHK$m Groups share of net assets,including goodwillListed shares Hong Kong(a)958.41,054.9Listed shares overseas(a)707.6635.9Unlisted shares2,876.82,730.6 4,542.84,421.4Amounts receivableGross amount2

302、,075.52,042.3Less:provision(1,971.6)(1,923.4)(b),(c)4,646.74,540.3 (a)As at 31 December 2024,the share of market value of the Groups listed associated companies amounts to HK$1,157.2 million(30 June 2024:HK$1,449.2 million).(b)As at 31 December 2024,the carrying amount mainly represents the Groups i

303、nvestments in various roads,logistics,healthcare,strategic investments and other projects.(c)Management is of the view that there is no material impairment of the Groups investments in associated companies as at 31 December 2024.45Interim Report 2025 Notes to Condensed Consolidated Interim Financial

304、 Statements15.JOINT VENTURESAs atAs at31 December 202430 June 2024NoteHK$mHK$m Co-operative joint ventureGroups share of net assets,including goodwill2,701.22,627.5Amounts receivable44.3 2,701.22,671.8 Equity joint venturesGroups share of net assets,including goodwill(d)4,969.24,965.4Amounts receiva

305、ble311.4269.6 5,280.65,235.0 Companies limited by sharesGroups share of net assets,including goodwill7,979.78,183.2Amounts receivableGross amount2,583.22,589.8Less:provision(1,234.5)(1,276.0)9,328.49,497.0 (a),(b),(c)17,310.217,403.8 (a)As at 31 December 2024,the carrying amount mainly represents th

306、e Groups investments in various roads,logistics,strategic investments and other projects.(b)Hyva I B.V.,a joint venture of the Group,is principally engaged in manufacturing and supply of components used in hydraulic loading and unloading systems.During the Current Period,Hyva I B.V.and one of its su

307、bsidiaries(together the“Hyva Sellers”)entered into a conditional sale and purchase agreement to dispose all of their entire interests in Hyva Group.In accordance with HKFRS 5“Non-current Assets Held for Sale and Discontinued Operations”,the carrying value of interests in Hyva Group shall be remeasur

308、ed to the lower of carrying amount or fair value less costs to sell.The fair value less costs to sell is determined with reference to the sale consideration by Hyva Sellers.Accordingly,the Groups share of remeasurement loss of HK$319.9 million was included in the share of results of joint ventures i

309、n the Current Period.The transaction was subsequently completed in January 2025.Except for above,management is of the view that there is no other material impairment of the Groups investments in joint ventures as at 31 December 2024.46CTF Services LimitedNotes to Condensed Consolidated Interim Finan

310、cial Statements15.JOINT VENTURES(CONTINUED)(c)Goshawk,a joint venture with 50%equity interest held by the Group and previously engaged in commercial aircraft leasing,has made full impairment for six aircraft in the financial year ended 30 June 2022.Goshawk filed insurance claims in this regard.Durin

311、g the Current Period,Goshawk has successfully concluded certain settlement arrangements with some of its insurers.Accordingly,an income of HK$95.6 million for the insurance claim is shared by the Group upon the execution of these settlement agreements and included in“share of results of joint ventur

312、es”.Up to the preceding day of this report,Goshawk has received an aggregate amount of approximately US$145.2 million(equivalent to approximately HK$1.1 billion)upon completion of certain settlement procedures with the insurers,of which the Group is entitled to 50%of these insurance settlements.Ther

313、efore,the Group is expected to further share an income of approximately HK$0.45 billion for the insurance claim in the second half of FY2025(excluding the aforementioned HK$95.6 million shared by the Group during the Current Period).(d)As at 31 December 2024,the Group has provided a pledge over a pr

314、oportion of equity interest in a joint venture,which the carrying amount of the pledged portion is HK$1,380.0 million(30 June 2024:HK$1,393.4 million),as a security for a bank loan of that joint venture.16.DEBT INSTRUMENTS AS FINANCIAL ASSETS AT AMORTIZED COSTAs atAs at31 December 202430 June 2024HK

315、$mHK$m Listed overseas1,273.21,285.7Unlisted117.2105.7 1,390.41,391.4 Expected to recover after 12 months1,390.41,391.4 (a)The aggregate fair value of debt instruments as financial assets at amortized cost is HK$1,069.5 million(30 June 2024:HK$1,078.3 million).47Interim Report 2025 Notes to Condense

316、d Consolidated Interim Financial Statements17.FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOMEAs atAs at31 December 202430 June 2024HK$mHK$m Equity instrumentsListed in Hong Kong545.8885.3Listed overseas38.814.1Unlisted4.54.5 589.1903.9 Debt instrumentsListed in Hong Kong1,240.1760.

317、2Listed overseas9,097.08,194.7Unlisted1,795.01,765.6 12,132.110,720.5 12,721.211,624.4 Expected to recover after 12 months12,331.010,618.5Expected to recover within 12 months390.21,005.9 12,721.211,624.4 48CTF Services LimitedNotes to Condensed Consolidated Interim Financial Statements18.FINANCIAL A

318、SSETS AT FAIR VALUE THROUGH PROFIT OR LOSSAs atAs at31 December 202430 June 2024HK$mHK$m Equity instrumentsListed in Hong Kong1,127.01,036.1Listed overseas179.9151.3Unlisted114.3189.2 1,421.21,376.6 Debt instrumentsListed in Hong Kong5,070.55,481.7Listed overseas35,694.937,568.3Unlisted2,807.02,872.

319、9 43,572.445,922.9 Investment fundsListed8,019.35,130.4Unlisted9,553.27,316.7 17,572.512,447.1 62,566.159,746.6 Expected to recover after 12 months62,126.659,133.1Expected to recover within 12 months439.5613.5 62,566.159,746.6 Financial assets at FVPL related to unit-linked contracts are detailed in

320、 note 20(a).49Interim Report 2025 Notes to Condensed Consolidated Interim Financial Statements19.TRADE AND OTHER RECEIVABLESAs atAs at31 December 202430 June 2024NoteHK$mHK$m Trade receivables(a)1,334.31,927.4Other receivables,deposits and prepayments(b)1,806.71,645.1Retention money receivables2,142

321、.02,216.5Contract assets2,776.32,023.4Deferred tax assets71.184.9Amounts due from associated companies42.1392.6Amounts due from joint ventures831.5869.0 9,004.09,158.9 Expected to recover after 12 months2,409.22,431.6Expected to recover within 12 months6,594.86,727.3 9,004.09,158.9 (a)The ageing ana

322、lysis of trade receivables based on invoice date is as follows:As atAs at31 December 202430 June 2024HK$mHK$m Under 3 months1,253.51,836.34 to 6 months22.158.8Over 6 months58.732.3 1,334.31,927.4 (b)The balance includes construction related receivables amounting to HK$245.8 million(30 June 2024:HK$2

323、98.5 million)which have not yet been billed at period/year end.50CTF Services LimitedNotes to Condensed Consolidated Interim Financial Statements20.INVESTMENTS/FINANCIAL LIABILITIES RELATED TO UNIT-LINKED CONTRACTS(a)Investments related to unit-linked contracts are analyzed as follows:As atAs at31 D

324、ecember 202430 June 2024HK$mHK$m Financial assets at FVPL Investment funds8,986.59,018.0Cash and bank balances44.223.3 9,030.79,041.3 The balance is expected to recover within 12 months.(b)Financial liabilities related to unit-linked contracts are analyzed as follows:As atAs at31 December 202430 Jun

325、e 2024HK$mHK$m Expected to settle after 12 months0.5125.3Expected to settle within 12 months3,993.94,063.5 3,994.44,188.8 21.SHARE CAPITALOrdinary shares No.of sharesHK$m AuthorizedAs at 30 June 2024,1 July 2024 and 31 December 20246,000,000,0006,000.0 Issued and fully paidAs at 30 June 2024,1 July

326、2024 and 31 December 20243,997,540,0853,997.5 Share Option SchemeThe Group operates equity-settled,share-based compensation plans.A share option scheme was adopted by the Company on 23 November 2021(the“2021 Share Option Scheme”),which is valid and effective for a period of ten years from the date o

327、f adoption.The Board may,at their discretion,grant options to any eligible participant as defined under the 2021 Share Option Scheme to subscribe for the shares of the Company.During the Current Period,there is no share options outstanding.51Interim Report 2025 Notes to Condensed Consolidated Interi

328、m Financial Statements22.RESERVESHK$mNoteShare premiumSpecial reservesProperty revaluation reserveHedge reservesFVOCI reserve(non-recycling)FVOCI reserve(recycling)Insurance finance reserveExchange reserveRevenue reserveTotal As at 30 June 2024 and 1 July 202418,303.6444.36,335.381.8(647.0)(2,025.8)

329、(137.1)(1,920.9)14,464.534,898.7Profit attributable to shareholders of the Company1,157.61,157.6Dividend paid to shareholders of the Company27(1,399.1)(1,399.1)Release of reserve upon disposal of debt instruments as financial assets at FVOCI66.966.9Net fair value change on equity instruments as fina

330、ncial assets at FVOCICompany and subsidiaries(15.2)(15.2)Associated company(65.7)(65.7)Net fair value change on debt instruments as financial assets at FVOCI and other net movement7.67.6Currency translation differences(66.7)(66.7)Share of reserves of associated companies and a joint venture(1.2)4.63

331、.4Insurance finance expenses(2.3)(2.3)Cash flow hedges(113.6)(113.6)Remeasurement of post-employment benefit obligation0.50.5Transfer of reserves upon disposal of equity instruments as financial assets at FVOCI370.1(370.1)Other transfer of reserves14.2(14.2)As at 31 December 202418,303.6457.36,335.3

332、(31.8)(357.8)(1,951.3)(139.4)(1,987.6)13,843.834,472.1 Special reserves include statutory reserves which are created in accordance with the relevant laws and regulations of the PRC and/or terms of the joint venture agreements of subsidiaries and joint ventures established in the Mainland and are req

333、uired to be retained in the financial statements of these subsidiaries and joint ventures for specific purposes.Special reserves also include capital redemption reserve,contributed surplus and share option reserve.52CTF Services LimitedNotes to Condensed Consolidated Interim Financial Statements23.PERPETUAL CAPITAL SECURITIESDuring the Current Period,the Group redeemed in whole the outstanding pri