VANHEEL MANAGEMENT LIMITED

VANHEEL MANAGEMENT LIMITED REPORTING DOCUMENTS Financial year ended 30 June 2025 HORIZON (HK) CPA Limited 中瑞誠(香港)會計師事務所有限公司  VANHEEL MANAGEMENT LIMITED REPORTING DOCUMENTS TABLE OF CONTENTS Pages DIRECTORS' REPORT 1 - 2 INDEPENDENT AUDITOR’S REPORT 3 - 5 ANNUAL FINANCIAL STATEMENTS Statement of profit or loss and other comprehensive income 6 Statement of financial position 7 Statement of cash flows 8 Statement of changes in equity 9 Notes to financial statements 10 - 32  VANHEEL MANAGEMENT LIMITED DIRECTORS' REPORT The Directors present their report and the annual financial statements of the Company for the financial year ended 30 June 2025. Directors The names of persons who were the directors of the Company during the financial year and up to the date of this report are as follows: Harald Frederik, Dudok Van Heel Anthea Jane, Dudok Van Heel Bruce Douglas, VonCannon There is no provision in the Company's article of association for the retirement and rotation of directors. All the existing directors continue in office. Principal activities The Company's principal activities are set out in note 1(b) to the financial statements. Permitted indemnity provision Article 143 of the Company's Articles provides that every director, managing director, agent, auditor, secretary or other officer for the time being of the Company may be indemnified out of the assets of the Company against all liability incurred by him in relation to the Company in defending any proceedings, whether civil or criminal, in which judgment is given in his favour, or in which he is acquitted, or in connection with any application under section 358 of the Predecessor Companies Ordinance (equivalent to sections 902 to 904 of the Hong Kong Companies Ordinance) in which relief is granted to him by the Court. This permitted indemnity provision is in force during the financial year and at the time of approval of this report. Management contract No contracts concerning the management and/or administration of the whole or any substantial part of the business of the Company were entered into or subsisted during the year. Business review The Company is a private company and its members has passed a special resolution not to prepare a business review as required by Schedule 5 to the Hong Kong Companies Ordinance. Accordingly, the Company is exempted from preparing a business review. Equity-linked agreements During the financial year, the Company entered into no equity-linked agreement. At the end of the financial year, the Company subsisted of no equity-linked agreement. - 1 -  VANHEEL MANAGEMENT LIMITED DIRECTORS' REPORT Recommended dividends The Directors recommend the payment of dividend of HK$4,261.836 per share (2023: HK$1,368) for the financial year. Approval of directors' report This report was approved by the Directors on [date of approval]. On behalf of the directors Harald Frederik, Dudok Van Heel Director Hong Kong - 2 -  Suite 1601, 16/F, AXA Tower, Landmark East, 100 How Ming Street, Kwun Tong, Kowloon, Hong Kong. 香港九龍觀塘巧明街100號 城東誌安盛金融大樓16樓1601室 Tel : (852) 2832 9718 Fax : (852) 2573 8611 VANHEEL MANAGEMENT LIMITED INDEPENDENT AUDITOR'S REPORT To the members Vanheel Management Limited (incorporated in Hong Kong with limited liability) Opinion We have audited the financial statements of Vanheel Management Limited ("the Company") set out on pages 6 to 32, which comprise the statement of financial position as at 30 June 2025, and the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including material accounting policy information. In our opinion, the financial statements give a true and fair view of the financial position of the Company as at 30 June 2025, and of its financial performance and its cash flows for the year then ended in accordance with the HKFRS Accounting Standards issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA") and have been properly prepared in compliance with the Hong Kong Companies Ordinance. Basis for opinion We conducted our audit in accordance with Hong Kong Standards on Auditing ("HKSAs") and withe reference to Practice Note 820 (Revised), The Audit of Licensed Corporations and Associated Entities of Intermediaries issued by the HKICPA. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the HKICPA's Code of Ethics for Professional Accountants ("the Code"), and we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Other information The Directors are responsible for the other information. The other information comprises the information included in the directors' report, but does not include the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. - 3 -  Suite 1601, 16/F, AXA Tower, Landmark East, 100 How Ming Street, Kwun Tong, Kowloon, Hong Kong. 香港九龍觀塘巧明街100號 城東誌安盛金融大樓16樓1601室 Tel : (852) 2832 9718 Fax : (852) 2573 8611 VANHEEL MANAGEMENT LIMITED INDEPENDENT AUDITOR'S REPORT To the members Vanheel Management Limited (incorporated in Hong Kong with limited liability) Responsibilities of the Directors for the financial statements The Directors are responsible for the preparation of the financial statements that give a true and fair view in accordance with HKFRS Accounting Standards as issued by the HKICPA and the Hong Kong Companies Ordinance, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. In addition, the Directors are required to ensure that the financial statements are in accordance with the records kept under the Securities and Futures (Keeping of Records) Rules and satisfy the requirements of the Securities and Futures (Accounts and Audit) Rules. Auditor’s responsibilities for the audit of the financial statements It is our responsibility to form an independent opinion, based on our audit, on those financial statements and to report our opinion solely to you, as a body, in accordance with section 405 of the Hong Kong Companies Ordinance and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with HKSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with HKSAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. - 4 -  Suite 1601, 16/F, AXA Tower, Landmark East, 100 How Ming Street, Kwun Tong, Kowloon, Hong Kong. 香港九龍觀塘巧明街100號 城東誌安盛金融大樓16樓1601室 Tel : (852) 2832 9718 Fax : (852) 2573 8611 VANHEEL MANAGEMENT LIMITED INDEPENDENT AUDITOR'S REPORT To the members Vanheel Management Limited (incorporated in Hong Kong with limited liability) Auditor’s responsibilities for the audit of the financial statements (continued) • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Directors. • Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Report on matters under the Securities and Futures (Keeping of Records) Rules and Securities and Futures (Accounts and Audit) Rules of the Securities and Futures Ordinance In our opinion, the financial statements are in accordance with the records kept under the Securities and Futures (Keeping of Records) Rules and satisfy the requirements of the Securities and Futures (Accounts and Audit) Rules. HORIZON (HK) CPA Limited Certified Public Accountants Ho Ka Shun Practising Certificate Number P05097 Hong Kong, [Date] - 5 -  VANHEEL MANAGEMENT LIMITED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME YEAR ENDED 30 JUNE 2025 Notes 2024 HK$ 2025 HK$ 7,557,047 6,619,272 Revenue Other income 4 4 7,620,210 3,451,117 11,071,327 14,176,319 Operating expenses Administrative and operating expenses Finance costs 6 ( ( ( 9,962,231) 46,039) 10,008,270) ( ( ( ( 4,168,049 451,315) ( 8,996,204) 72,907) 9,069,111) 2,002,216 158,951) 7 10 1,843,265 3,716,734 Profit before taxation Taxation Profit for the year - 6 -  VANHEEL MANAGEMENT LIMITED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2025 Notes 2024 HK$ 2025 HK$ Non-current assets Property, plant and equipment Right-of-use asset 11 12 53,204 952,269 1,005,473 138,038 2,094,992 2,233,030 Current assets Trade receivables Deposits and other receivables Cash and cash equivalents 13,14 13,14 13,15 1,684,441 1,131,707 6,176,420 8,992,568 1,585,891 1,298,450 7,508,911 10,393,252 13,16 13,16 13,17 Current liabilities Amount due to a director Accrued charges and other payables Lease liabilities Current tax liabilities 7,655 4,487,001 978,174 611,221 6,084,051 22,197 6,544,874 1,147,252 71,350 7,785,673 2,607,579 Net current assets 2,908,517 - 978,174 Non-current liabilities Lease liabilities 13,17 3,862,435 3,913,990 18 1,926,122 1,987,868 1,926,122 1,936,313 Equity Share capital Reserves 3,862,435 3,913,990 On behalf of the Directors ---------------------------------------- Harald Frederik, Dudok Van Heel Director ---------------------------------------- Bruce Douglas, VonCannon Director - 7 -  VANHEEL MANAGEMENT LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2025 2025 HK$ 2024 HK$ Notes 4,168,049 84,834 1,142,723 240,854) ( 37,581 2,002,216 313,936 1,142,723 252,755) ( 65,878 Cash flows from operating activities Profit before taxation Depreciation - Property, plany and equipment Depreciation - Right-of-use asset Interest income Interest on lease liabilities 5,192,333 2,057,873) ( 14,542) ( 166,743 ( 98,550) 3,271,998 319,875 6,819 158,769) ( ( 28,969) 3,188,111 88,556 3,276,667 3,410,954 6,000 3,416,954 (Decrease) / Increase in accrued charges and other payables (Decrease) / Increase in amount due to a director Decrease / (Increase) in deposits and prepayments Increase in trade receivables Cash generated from operations Income tax refunded/(paid) Net cash generated from operating activities - 240,854 240,854 8,528) ( 252,755 244,227 Cash flows from investing activities Payments to acquire property, plant and equipment Interest received Net cash generated from investing activities 1,147,252) ( 3,665,179) ( ( 37,581) ( 4,850,012) 1,118,954) ( 1,421,641) ( ( 65,878) ( 2,606,473) Cash flows from financing activities Principal payments for obligation under finance lease Dividend paid Interest on lease liabilities Net cash used in fiancing activities 1,332,491) ( 7,508,911 6,176,420 1,054,708 6,454,203 7,508,911 Net changes in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 6,176,420 7,508,911 Components of cash and cash equivalents Cash and bank balances 15 - 8 -  VANHEEL MANAGEMENT LIMITED STATEMENT OF CHANGES IN EQUITY YEAR ENDED 30 JUNE 2025 Notes 2024 HK$ 2025 HK$ 1,926,122 1,926,122 Share capital Balance at beginning and end of year ( ( 1,936,313 3,716,734 3,665,179) 1,987,868 1,270,187 1,843,265 1,177,139) 1,936,313 Retained profits Balance at beginning of year Profit for the year Dividends Balance at end of year 3,862,435 3,913,990 Total equity - 9 -  VANHEEL MANAGEMENT LIMITED NOTES TO FINANCIAL STATEMENTS 30 JUNE 2025 1. GENERAL (a) Definition In these reporting documents, the following terms shall have the following meanings: The Company Vanheel Management Limited The Directors all directors of the Company Hong Kong Companies Ordinance Hong Kong Companies Ordinance (Cap. 622), including all amendments made under the Companies (Amendment) (No. 2) Ordinance 2018 HKICPA Hong Kong Institute of Certified Public Accountants HKFRS Individual Hong Kong Financial Reporting Standard issued by HKICPA HKAS Individual Hong Kong Accounting Standard issued by HKICPA HKFRSs HKFRS Accounting Standards issued by HKICPA FVTPL for the purpose of financial assets and financial liabilities, means fair value through profit or loss FVTOCI for the purpose of financial assets, means fair value through other comprehensive income Cash equivalents short-term, highly liquid investments those are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value Related company a company in which one or more related parties have beneficial interests thereon or are in a position to exercise significant influence (b) issue of Corporate information The Company is a company incorporated in Hong Kong under Hong Kong Companies Ordinance with limited liability. At the date of these financial statements, the registered office of the Company is located at Suite 1702, St. George's Building, 2 Ice House Street, Central, Hong Kong. The principal activities of the Company consist of the provision of asset management and advising on securities services. On 27 April 2005, the Company received a license under the Securities and Futures Ordinance, subject to the specific licensing conditions, to conduct Type 4 and 9 regulated activities. (c) Presentation currency and level of rounding Unless stated otherwise, all currency figures in these financial statements are presented in Hong Kong Dollars (HK$) rounded to the nearest one dollar. - 10 -  VANHEEL MANAGEMENT LIMITED NOTES TO FINANCIAL STATEMENTS 30 JUNE 2025 2. BASIS OF PREPARATION (a) Statement of compliance These financial statements comply with all the requirements of each applicable standard and each applicable interpretation in HKFRSs effective at the beginning of the reporting period and have been prepared under the accrual basis of accounting and on the basis that the Company is a going concern. (b) these financial statements is the Basis of measurement The measurement basis used in the preparation of historical cost. (c) Critical accounting judgments The judgements that the management has been made in the process of applying the Company's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are set out below. liabilities at Fair value The fair value applicable to financial assets and financial fair value is determined by reference to quoted market price or, if such price is not available, by using valuation technique such as discounted cash flow analysis and option price model. Discounting factor For the purpose of measuring the recoverable amount of an asset in use, discounting factor shall be estimated by reference to the generally expected return rate in the market on such kind of assets. In case the market information is not available, discounting factor shall be estimated by reference to the expected annual return from the asset at the time of recognition. Effective interest rates For the purpose of measuring the financial assets and financial liabilities at amortised cost held under non-current assets and non-current liabilities, effective interest rates shall be determined by reference to the estimated future cash flow throughout the expected life of financial instrument or, if appropriate, a shorter period to the net carrying amount of the financial assets or financial liabilities. (d) Assumptions and other major sources of estimation uncertainty Assumptions made about the future and other major sources of estimation uncertainty at the end of the reporting period that have significant risks of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next reporting period are set out below. - 11 -  VANHEEL MANAGEMENT LIMITED NOTES TO FINANCIAL STATEMENTS 30 JUNE 2025 2. BASIS OF PREPARATION (CONTINUED) (d) Assumptions and other major sources of estimation uncertainty (continued) Depreciation of property, plant and equipment and right-of-use assets The depreciation method and rates of the property, plant and equipment and right-of-use assets are based on the management's best estimate to their expected residual value, useful lives, consumption pattern, whether exercising purchase option, wear-and-tear and potential technical obsolescence to usage of the assets. Management uses all readily available information in determining all above factors. Any change in these factors may have a significant impact on the carrying amounts of the property, plant and equipment and right-of-use assets as stated in the statement of financial position and the profit or loss for the next reporting period. At present, the management is unable to provide information about the sensitivity and expected resolution of the uncertainty. The possible effect of the assumptions and sources of estimation uncertainty is unable to be estimated reliably; it is impracticable to disclose the extent of possible effects within the next reporting period. the impairments of property, plant and equipment, the management is unable to provide information about Impairment of financial and non-financial assets Loss allowances for lifetime and 12-month expected credit losses on debt instruments, lease receivables, contract assets or loan commitments and financial guarantee contracts are projected by management based on reasonable and supportable information using various valuation techniques such as provision matrix and expected future cash flow. Moreover, right-of-use assets, investment property measured at cost-depreciation-impairment model, intangible assets and other non-financial assets are based on the management's best estimate to the expected recoverable amounts of the assets that would be determined by reference to fair value less costs to sell and value in use estimated using the discounted cash flow method. Because of inherent risks associated with the available information and estimations, their accuracy may have a significant impact on the carrying amounts of these assets as stated in the statement of financial position and the profit or loss for the next reporting period. At present, the sensitivity and expected resolution of the uncertainty. The possible effect of the assumptions and sources of estimation uncertainty is unable to be estimated reliably; it is impracticable to disclose the extent of possible effects within the next reporting period. Income tax Significant jugdement is required in determining the provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Company recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the current tax provisions in the period in which such determination is made. - 12 -  VANHEEL MANAGEMENT LIMITED NOTES TO FINANCIAL STATEMENTS 30 JUNE 2025 3. MATERIAL ACCOUNTING POLICY INFORMATION These financial statements present financial information of the Company. The followings are the specific accounting policies that are necessary for a proper understanding of the financial statements. (a) Revenue Revenue consists of revenue generated from the principal activities of the Company and other revenue but excludes the reversal of impairment and of provisions. Other revenue includes other net gain such as exchange gain (net of exchange loss) and gain on disposal of capital assets. identification of performance obligations, determination of Revenue from contracts with customers Having gone through the 5-step revenue recognition process (that are identification of contracts, transaction price, allocation of transaction price to performance obligations and recognising revenue having satisfied a performance obligation), revenue from contracts with customers is measured on the following bases. Asset management fee income Asset management fee income is the consideration for the daily management of the funds and are calculated as a percentage of the net asset values as at the respective valuation date of each funds under management. Asset management income is recognised over time. As these fees are highly susceptible to factors outside the Company's influence, they are only included in the transaction price when it is highly probable that a significant in the amount of cumulative revenue recognised will not occur and when the reversal uncertainty associated with the variability is subsequently resolved. Interest income Interest income is recognised as it accrues using the effective interest method using the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of the financial asset. (b) Employee benefits Salaries, annual bonuses, paid annual leave and other leave, contributions to defined contribution retirement plans and the cost of non-monetary benefits are accrued in the year in which the associated services are rendered by employees. Where payment or settlement is deferred and the effect would be material, these amounts are measured at their present values. The Company operates a defined contribution plan under mandatory provident fund plan. The Company pays contributions to the independent administrator on a mandatory basis. The Company has no further payment obligations once the contributions are paid. The contributions are recognised as employee benefit expense when they are incurred and the cost can be measured reliably. - 13 -  VANHEEL MANAGEMENT LIMITED NOTES TO FINANCIAL STATEMENTS 30 JUNE 2025 3. MATERIAL ACCOUNTING POLICY INFORMATION (CONTINUED) (b) Employee benefits (continued) The Company recognises long service payments to be made by the Company to its employees upon the termination of services as a defined benefit plan under post- employment benefits. The cost of providing benefits is measured using projected unit credit method with actuarial valuations to determine its present value and service cost. When the calculation results in a benefit to the Company, the recognised asset is limited to lower of the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan and the asset ceiling. The net defined benefit liabilities recognised in the statement of financial position represent the present value of the obligation under defined benefit plan minus the fair value of plan assets. The Company carried out comprehensive actuarial valuation at the end of reporting period. The remeasurements of the net defined benefit liabilities during a period are recognised as cost of defined benefit plan during the period. the portion of Service cost and net interest expense/income on the defined benefit liability are recognised in profit or loss and allocated by function as part of cost of sales, selling and distribution expenses or administrative expenses. Current service cost is measured as the increase in the present value of the defined benefit obligation resulting from employee service in the current period. When the plan amendment or curtailment occurs and when the related the changed restructuring costs or termination benefits are recognised, benefit related to past service by employees, or the gain or loss on curtailment, is recognised as an expense in profit or loss at the earlier of when the plan amendment or curtailment occurs and when related restructuring costs or termination benefits are recognised. Net interest expense/income for the period is determined by multiplying the net defined benefit liability/asset by the discount rate, both as determined at the beginning of reporting period, taking account of any changes in the net defined benefit liability/asset during the period as a result of contribution and benefit payments. The discount rate is determined by reference to the market yield of government bonds. Remeasurements of net defined benefit liabilities or assets such as actuarial gains and losses, return on plan assets and any change in the effect of the asset ceiling are recognised in other comprehensive income. (c) if undeterminable, Leases Act as a lessee Except for the recognition exemption, if applicable, right-of-use assets and lease liabilities are recognised for all contracts that are, or contain, leases of identified assets at the commencement date of leases. Right-of-use assets are initially measured at cost and subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities. Lease liabilities are initially measured at the present value of unpaid lease payments using interest rate implicit to the lessee's incremental borrowing rates and subsequently lease or, adjusted with interest on and the settlement of the lease liabilities, and the re-measurement arising from any reassessment of the lease liabilities or lease modifications. Since the lease and non-lease components of leasehold land and buildings held by the Company as the lessee do not have reliable fair value for reference, the Company, by applying practical expedient, elects not to separate non-lease components from lease components, and instead account for each lease component and any associated non-lease components of leasehold land and buildings as a single lease component in accordance with paragraph 15 of HKFRS 16. - 14 -  VANHEEL MANAGEMENT LIMITED NOTES TO FINANCIAL STATEMENTS 30 JUNE 2025 3. MATERIAL ACCOUNTING POLICY INFORMATION (CONTINUED) (c) life of Leases (continued) Depreciation is calculated using the straight-line method to write off the depreciable amount of each right-of-use asset to profit or loss unless it is included in the carrying amount of another asset. If the ownership of the identified asset will be transferred to the Company by the end of the lease term or the Company will exercise a purchase option, depreciation shall be allocated over the estimated useful the right-of-use assets; otherwise, depreciation shall be allocated over the shorter of lease term or the estimated useful life of the right-of-use assets. (d) Borrowing costs Borrowing costs include interest on bank overdrafts and short-term and long-term borrowings calculated using the effective interest method, finance charges in respect of lease liabilities and exchange difference arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs. Borrowing costs that are directly attributable to the acquisition, construction or production of an asset which necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of that asset. Other borrowing costs are expensed in the period in which they are incurred. The capitalised borrowing costs shall not exceed the amount of borrowing costs incurred during the reporting period. The capitalisation commences when the expenditures for the qualifying assets and the borrowing costs are being incurred; and activities that are necessary to prepare the qualifying assets for their intended use or sale are in progress. Capitalisation of borrowing cost ceases when substantially all the activities necessary to prepare the qualifying assets for their intended use or sale are completed. (e) Income tax Income tax comprises current tax and deferred tax. The tax currently payable is based on taxable profit for the year. Taxable profit may differ from profit or loss as reported in the statement of profit or loss because of permanent difference and temporary difference. Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases using in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences, except to the extent that the deferred tax liabilities arise from the initial recognition of goodwill or from the initial recognition (other than in a business combination) of an asset or liability in a transaction that affects neither accounting profit nor taxable profit or tax loss and, at the time of transaction, does not give rise to equal taxable and deductible temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that is probable that taxable profit will be available against which those deductible temporary differences can be utilised. Such deferred tax assets are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of an asset and liability in a transaction that affects neither the accounting profit nor the taxable profit or tax loss and, at the time of transaction, does not give rise to equal taxable and deductible temporary differences. - 15 -  VANHEEL MANAGEMENT LIMITED NOTES TO FINANCIAL STATEMENTS 30 JUNE 2025 3. MATERIAL ACCOUNTING POLICY INFORMATION (CONTINUED) (e) Income tax (continued) The net carrying amount of deferred tax assets is reviewed at the end of each reporting period and is adjusted to reflect the current assessment of future taxable profits. Any adjustments are recognised in profit or loss. Current and deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted at the end of reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of reporting period, to recover or settle the carrying amount of its assets and liabilities. However, the measurement of deferred tax liabilities associated with a non-depreciable asset measured using valuation model or an investment property measured at fair value shall reflect the tax consequences of recovering the carrying amount of the non-depreciable asset or investment property through sale. Current and deferred taxes are generally recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case the current and deferred taxes are also recognised in other comprehensive income or directly in equity respectively. When different tax rates apply to different levels of taxable income, deferred tax assets and liabilities are measured using the average rates that are expected to apply to the taxable profit or tax loss of the periods in which the temporary differences are expected to reverse. (f) Property, plant and equipment Property, plant and equipment are measured at initial recognition at cost and subsequently measured at cost less accumulated depreciation and accumulated impairment losses, if any. Cost comprises purchase price, conversion cost and estimated cost of dismantling and restoration. Expenditure such as repairs and maintenance, overhaul costs and borrowing costs are normally charged to profit or loss when they are incurred. Where expenditure has resulted in increases in the future economic benefits from the use of the property, plant and equipment, the expenditure is capitalised. life. The following estimated useful The residual values and useful lives of the property, plant and equipment are reviewed annually. If necessary, the residual value, depreciation method or useful life of that asset is amended prospectively to reflect the new expectation. Depreciation is calculated using the straight-line method to write off the depreciable amount of each property, plant and equipment to profit or loss unless it is included in the carrying amount of another asset over its estimated useful lives (or rates) are used for the depreciation of property, plant and equipment. Leasehold improvement Office equipment Furniture and fixture Motor vehicle 2025 25% 20% 20% 30% 2024 25% 20% 20% 30% - 16 -  VANHEEL MANAGEMENT LIMITED NOTES TO FINANCIAL STATEMENTS 30 JUNE 2025 3. MATERIAL ACCOUNTING POLICY INFORMATION (CONTINUED) (f) the cost revalued amount) if any, of losses, Property, plant and equipment (continued) On disposal or together with associated (or retirement, accumulated depreciation and impairment the property, plant and equipment are derecognised and any gain or loss resulting from the disposal is recognised in profit or loss. (g) liability not at FVTPL, Financial instruments A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. A financial asset or a financial liability will be recognised when, and only when, the Company becomes a party to the contractual provisions of the instrument. At initial recognition, financial instruments are accounted for at trade date basis and measured at fair value plus or minus, in the case of a financial asset transaction costs thereon. After initial recognition, or financial financial assets and financial liabilities are measured at fair value or at amortised cost based on their respective business models, contractual cash flows characteristics and classifications. Financial assets other than those measured at amortised cost or at FVTOCI are classified as financial assets at FVTPL. Financial assets that are classified as held for trading or are designated at FVTPL at initial recognition for the purposes of avoiding accounting mismatch are classified as financial assets at FVTPL too. Derivatives are also categorised as held for trading unless they are designated as hedges. After initial recognition, financial assets at FVTPL are measured at fair value prior to the deduction of transaction costs. Gains or losses arising from changes in fair value or otherwise are recognised in profit or loss. Such gains or losses are presented separately from interest and dividends. Non-derivative debt instruments that are held within a business model whose objective is to hold assets for collection of contractual cash flows and have specified settlement dates with fixed or determinable payments of principal and interest thereon are classified as financial assets at amortised cost. After initial recognition, financial assets at amortised cost are measured at amortised cost using effective interest method, less credit loss allowances. Interest income together with gains or losses resulting from derecognition are recognised in profit or loss. At each reporting date, expected credit losses are recognised for individual or collective financial assets at amortised cost in profit or loss. The amounts of expected credit losses are measured at the present value of the difference between the contractual cash flows and the expected future cash flows. the purposes of avoiding accounting mismatch, financial Financial liabilities, including derivatives that are liabilities, that are trading in active markets and their fair value can be measured reliably are classified as financial liabilities at FVTPL. liabilities may also be For irrevocably designated as measured at FVTPL at initial recognition. After initial recognition, financial liabilities at FVTPL are measured at fair value prior to the deduction of transaction costs. Gains or losses arising from change in fair value or otherwise are recognised in profit or loss. Such gains or losses are presented separately from interest. - 17 -  VANHEEL MANAGEMENT LIMITED NOTES TO FINANCIAL STATEMENTS 30 JUNE 2025 3. MATERIAL ACCOUNTING POLICY INFORMATION (CONTINUED) (g) right Financial instruments (continued) Non-derivative financial liabilities with fixed or determinable payments that are not quoted in an active market are classified as financial liabilities at amortised cost. After initial recognition, financial liabilities at amortised cost are measured at amortised cost using the effective interest method. All financial liabilities at amortised cost are classified as current liabilities unless the Company has a pre-defined repayment schedule or an unconditional right to defer settlement of the liability for at least twelve months after the reporting period. Interest expenses are recognised in profit or loss. When the borrowing agreement contains to demand repayment at any time clause that gives the lender unconditional disregarding the pre-defined repayment schedule, the financial liabilities at amortised cost is presented as a current liability in the statement of financial position irrespective of the probability that the lender will invoke the clause without cause. transferred nor retained, When the contractual rights to the cash flows from financial assets expire or substantially all the risks and rewards of ownership of financial assets are transferred, the financial assets will be derecognised. The rights and obligations created or retained in the transfer are recognised separately as assets or liabilities. However, if substantially all the risks and rewards of ownership of transferred financial assets are retained, the financial assets will not be derecognised. In this situation, the transferred financial assets will be recognised in their entirety and the considerations received, if any, will be recognised as financial liabilities. In subsequent periods, income on the transferred financial assets and expense incurred on the recognised financial liabilities will be recognised in profit or loss separately. In the case substantially all the risks and rewards of ownership of transferred financial assets are neither the transferred financial assets will be recognised to the extent of the Company's continuous involvement if the Company retains control over the financial assets; otherwise, the financial assets will be derecognised and the rights and obligations created or retained in the transfer are recognised separately as assets or liabilities. The difference of the carrying amount of the transferred assets which are qualified for derecognition and the sum of consideration received (including any new asset obtained less any new liability assumed) is recognised in profit or loss. financial liabilities specified in the contract the terms of existing financial is discharged or When the obligation of cancelled or expires, the financial liabilities are regarded as extinguished and are removed from the statement of liabilities or substantial financial position. An exchange of modification of liabilities are also accounted for as an extinguishment of the original financial liabilities. Gain or loss on derecognition of financial liabilities is recognised in profit or loss. - 18 -  VANHEEL MANAGEMENT LIMITED NOTES TO FINANCIAL STATEMENTS 30 JUNE 2025 3. MATERIAL ACCOUNTING POLICY INFORMATION (CONTINUED) (h) impairment. the recoverable amount of any affected asset it shall determine the recoverable amount of Impairment of non-current assets other than financial assets At the end of each reporting period, non-current assets other than financial assets are reviewed to determine whether there is any indication of Irrespective of whether there is any indication of impairment, intangible assets with indefinite useful live or not yet available for use are tested for impairment annually. If there is any indication of possible impairment, is estimated and compared with its carrying amount. For an asset of which the recoverable amount is indeterminable individually, the cash- generating unit to which the asset belongs. If the recoverable amount of an asset (or cash- generating unit) is less than its carrying amount, its carrying amount is reduced to its recoverable amount. An impairment loss is normally recognised immediately in profit or loss, unless the asset is carried at revalued amount. Impairment loss of a revalued asset is firstly charged against revaluation surplus; any excessive amount is recognised in profit or loss. If the recoverable amount is higher than its carrying amount, the carrying amount Impaired assets and cash-generating units are subject to annual review. If there is any indication of reversal, it shall estimate recoverable amount and compare with its carrying amount. the previously recognised impairment loss is reversed and the carrying amount of the asset (or assets in the cash-generating unit) is/are increased to the revised recoverable amount, but not in that would have been determined (net of any excess of depreciation/amortisation) had no impairment loss been recognised for the asset (or cash- generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the asset is carried at revalued amount. Impairment loss of a revalued asset previously recognised in profit or loss is firstly reversed; any excess will be reversed to revaluation surplus. Reversal of impairment loss for a cash-generating unit shall be allocated to the assets of the cash-generating unit on a prorata basis. (i) Foreign currency transactions the Company is Hong Kong Dollar. Foreign currency The functional currency of transactions are translated into the functional currency at the approximate rates of exchange ruling at the transaction dates. Monetary assets and liabilities denominated in foreign currencies at the end of reporting period are translated at the approximate rates of exchange ruling at that date. Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated using the exchange rates at that date when the fair value was measured. Exchange differences arising on the settlement or translation of foreign currency monetary items are recognised in profit or loss. However, exchange differences relating to a gain or loss on a non-monetary item that is recognised in other comprehensive income is recognised in other comprehensive income too. (j) Trade receivables Trade receivables are measured at initial recognition at transaction price and subsequently measured at amortised cost using the effective interest method, less lifetime expected credit losses. - 19 -  VANHEEL MANAGEMENT LIMITED NOTES TO FINANCIAL STATEMENTS 30 JUNE 2025 3. MATERIAL ACCOUNTING POLICY INFORMATION (CONTINUED) (k) Components of cash and cash equivalents Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other financial institutions, and short-term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value, having been within three months of maturity at acquisition. Bank overdrafts that are repayable on demand and form an integral part of the Company's cash management are also included as a component of cash and cash equivalents for the statement of cash flows. (l) Trade and other payables Trade and other payables are measured at initial recognition at the fair value (including transaction costs) and subsequently measured at amortised cost using the effective interest method. (m) Fair value measurement Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between a knowledgeable, willing buyer and a knowledgeable, willing seller in an arm's length transaction. Fair value can be determined based on quoted market price in an active market for identical assets or by valuation techniques such as market approach, cost approach or income approach. When valuation techniques are applied, observable inputs other than quoted market price and/or unobservable inputs will be used to estimate the fair value of the assets or liabilities. The Company shall use one or more valuation techniques to measure fair value consistently. For those assets and liabilities measured at fair value, the assets or liabilities shall initially be measured at fair value. If the transaction price of the assets and liabilities differs from their fair value, the resulting gains or losses shall be recognised in profit or loss. The fair value of the Company's assets and liabilities measured at the end of reporting period on a recurring and non-recurring basis, are categorised into the three-level fair value hierarchy as defined in HKFRS 13: Fair Value Measurement. The level into which a fair value measurement is classified is determined based on the observability and significance of the inputs used in the valuation technique. The fair value of Level 1 fair value hierarchy is measured using only unadjusted quoted prices in active markets for identical assets or the measurement date. The fair value of Level 2 fair value hierarchy is liabilities at measured using observable inputs other than quoted market prices and not using significant unobservable inputs. Unobservable inputs are inputs for which market data are not available. The fair value of Level 3 fair value hierarchy is measured using significant unobservable inputs. Depending on the availability of the various inputs at the time of measurement, assets and liabilities measured at fair value may be classified in Level 1, 2 or 3 fair value hierarchy from time to time. If necessary, such assets and liabilities may be transferred from a level to another. - 20 -  VANHEEL MANAGEMENT LIMITED NOTES TO FINANCIAL STATEMENTS 30 JUNE 2025 3. MATERIAL ACCOUNTING POLICY INFORMATION (CONTINUED) (n) Related Parties (a) A person or a close member of that person’s family is related to the Company if that person: (i) (ii) (iii) has control or joint control over the Company; has significant influence over the Company; or is a member of key management personnel of the Company or the Company’s parent. (b) An entity is related to the Company if any of the following conditions applies: (i) The entity and the Company are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others). (ii) (iii) The entity or the Company is an associate or joint venture of the other (or an associate or joint venture of a member of a group of which the other is a member). Both the entity and the Company are joint ventures of the same third party. (iv) (v) (vi) (vii) influence over the entity or is a Either the entity is a joint venture of a third entity and the Company is an associate of the third entity or the entity is an associate of a third entity and the Company is a joint venture of the third entity. The entity is a post-employment benefit plan for the benefit of the employees of the Company or an entity related to the Company. The entity is controlled or jointly controlled by a person identified in (a). A person identified in (a)(i) has significant member of key management personnel of the entity (or of a parent of the entity). (viii) is a part, provides key The entity, or any member of a group of which it management personnel services to the Company or to the Company’s parent. Close members of the family of a person are those family members who may be expected to influence, or be influenced by, that person in their dealings with the Company and include (i) that person’s children and spouse or domestic partner; (ii) children of that person’s spouse or domestic partner; and (iii) dependents of that person or that person’s spouse or domestic partner. - 21 -  VANHEEL MANAGEMENT LIMITED NOTES TO FINANCIAL STATEMENTS 30 JUNE 2025 4. REVENUE 2025 HK$ 2024 HK$ Revenue from contracts with customers (Note 4.1 and Note 4.2) Asset management fee income 7,557,047 7,620,210 252,755 11,237 - Other income Bank interest income Gain on exchange difference Reversal of provision for bonus Sundry income 240,854 180,661 3,041,254 3,156,503 3,187,125 6,619,272 3,451,117 14,176,319 11,071,327 Total Note 4.1 Revenue from contracts with customers contain no revenue included in the contract liabilities balance at beginning of the year or from performance obligations satisfied in previous year. Note 4.2 Information about the performance obligation for the revenue from contracts with customers is set out below. Type of revenue Service income Timing of satisfaction Delivery of service Significant payment terms Payable on demand Other terms N/A - 22 -  VANHEEL MANAGEMENT LIMITED NOTES TO FINANCIAL STATEMENTS 30 JUNE 2025 5. CREDIT LOSS ALLOWANCES AND IMPAIRMENT OF ASSETS 2025 HK$ 2024 HK$ Credit loss allowances Trade receivables (Note 5.1) - - Note 5.1 The Company measures lifetime expected credit losses of trade receivables based on the categories of customers (see note 21 to financial statements), expected credit loss rates and ageing analysis of gross carrying amount. Expected loss rates are determined by reference to historical data over the past 3 years (2024: 3 years) adjusted with the credit quality of individual customers, current economic conditions and the forecast economic conditions over the expected lives of the trade receivables. Although the macroeconomic in Hong Kong show unfavourable factors to the customers of the Company, the management does not expect significant credit loss due to credit curtailment. There are no changes in the estimation techniques or significant assumptions made from the preceding reporting period to the current year. The following table provides information about the Company's exposure to credit risk and expected credit loss for trade receivables and the expected credit loss/(gain) recognised in profit or loss. 2025 2024 Expected credit loss rates HK$ Gross carrying amount HK$ Expected credit loss HK$ Expected credit loss rates HK$ Gross carrying amount HK$ Expected credit loss HK$ - - Low-Risk Customers No past due 0.0% 1,684,441 0.0% 1,585,891 Total 1,684,441 - 1,585,891 - Less: Outstanding expected credit loss (Note 14) - - Expected credit loss/(gain) recognised in profit or loss - - 6. FINANCE COSTS 2025 HK$ 2024 HK$ 8,458 37,581 7,029 65,878 Bank charges Interest on lease liabilities 46,039 72,907 - 23 -  VANHEEL MANAGEMENT LIMITED NOTES TO FINANCIAL STATEMENTS 30 JUNE 2025 7. PROFIT BEFORE TAXATION 2025 HK$ 2024 HK$ This is arrived at after charging: 6,737,330 105,333 5,859,038 100,513 Employee benefits costs Fees, salaries, wages and other short-term benefits Expenses for defined contribution scheme 6,842,663 5,959,551 Other items Depreciation - Property, plant and equipment (note 11) Depreciation - Right-of-use assets (note 12) Interest expenses on lease liabilities 84,834 1,142,723 37,581 313,936 1,142,723 65,878 8. DIRECTORS' REMUNERATION, LOANS AND OTHER MATERIAL INTERESTS 2025 HK$ 2024 HK$ Emoluments (including benefit in kind) Directors' fees Salaries, allowances and benefits other in cash Contribution to defined contribution plan 1,023,559 912,000 18,000 757,240 1,104,000 18,000 1,953,559 1,879,240 No loans, quasi-loans and other dealings in favour of the directors of the Company were entered into during the year nor subsisted of at the end of the year (2024: Nil). Material interests of directors (including shadow directors) of the Company disclosed pursuant to section 383(1)(e) of the Companies the Hong Kong Companies Ordinance and Part 4 of (Disclosure of Information about Benefits of Directors) Regulation are as follows: In the opinion of the Directors, the directors or shadow directors, if any, of the Company had no material interests in those significant transactions, arrangements or contracts in relation to the Company's business entered into by the Company or another company in the same group of companies or subsisted during the financial year (2024: Nil). 9. AUDITOR'S REMUNERATION Auditor's remuneration and expenses for the year disclosed pursuant to Part 2 of Schedule 4 of the Hong Kong Companies Ordinance are as follow: 2025 HK$ 59,000 - 2024 HK$ 58,000 - Auditor's remuneration Auditor's expenses 59,000 58,000 - 24 -  VANHEEL MANAGEMENT LIMITED NOTES TO FINANCIAL STATEMENTS 30 JUNE 2025 10. TAXATION Under the two-tiered profits tax rates regime, the first HK$2 million taxable profits of qualifying corporations will be taxed at 8.25%, and taxable profits above HK$2 million will be taxed at 16.5%. Hong Kong profits tax has been provided in accordance with the two-tiered profits tax rates regime (2024: same) on the estimated assessable profits arising in Hong Kong during the year. 2025 HK$ 2024 HK$ 455,815 (4,500) 164,951 (6,000) Current tax expenses/(income) Hong Kong profits tax Adjustment on current tax in prior periods 451,315 158,951 2025 HK$ 2024 HK$ 4,168,049 16.50% 2,002,216 16.50% Reconciliation statement Profit before taxation Applicable tax rate Product of accounting profit multiplied by applicable tax rate 687,728 (71,039) 13,251 330,365 (241,041) 251,218 (9,125) (10,640) (165,000) (4,500) (164,951) (6,000) Tax effect of non-taxable income Tax effect of disallowed expenses Tax effect of depreciation allowances and other statutory deductions Tax effect of lower tax rate under two-tiered profits tax rate in Hong Kong Adjustment on current tax of prior periods 451,315 158,951 Tax expenses - 25 -  VANHEEL MANAGEMENT LIMITED NOTES TO FINANCIAL STATEMENTS 30 JUNE 2025 11. PROPERTY, PLANT AND EQUIPMENT Leasehold improvement Office equipment HK$ HK$ Furniture and fixture HK$ Motor vehicles HK$ Total HK$ 1,046,932 - 326,172 8,528 29,250 - 93,500 - 1,495,854 8,528 Cost Balance at beginning of 2024 Additions 1,046,932 334,700 29,250 93,500 1,504,382 1,046,932 334,700 29,250 93,500 1,504,382 Balance at end of 2024 and beginning of 2025 Balance at end of 2025 Accumulated depreciation Balance at beginning of 2024 798,356 234,161 207,069 45,875 4,908 5,850 42,075 28,050 1,052,408 313,936 Depreciation 1,032,517 14,415 252,944 41,194 10,758 5,850 70,125 23,375 1,366,344 84,834 Balance at end of 2024 and beginning of 2025 Depreciation 1,046,932 294,138 16,608 93,500 1,451,178 Balance at end of 2025 Carrying amount - 40,562 12,642 - 53,204 As at 30 June 2025 14,415 81,756 18,492 23,375 138,038 As at 30 June 2024 - 26 -  VANHEEL MANAGEMENT LIMITED NOTES TO FINANCIAL STATEMENTS 30 JUNE 2025 12. RIGHT-OF-USE ASSETS 2025 HK$ 2024 HK$ Leasehold land and buildings Balance at beginning of year 7,843,598 7,843,598 7,843,598 7,843,598 Balance at end of year Accumulated depreciation Balance at beginning of year Depreciation (5,748,606) (1,142,723) (4,605,883) (1,142,723) (6,891,329) (5,748,606) Balance at end of year 952,269 2,094,992 Total 13. FINANCIAL INSTRUMENTS 2025 HK$ 2024 HK$ Trade and other receivables Financial assets at amortised cost Trade receivable Deposits and other receivables 1,684,441 1,131,707 2,816,148 1,585,891 1,298,450 2,884,341 Cash and cash equivalents Financial assets at amortised cost 6,176,420 6,176,420 7,508,911 7,508,911 Trade and other payables Financial liabilities at amortised cost Amount due to a director Accrued charges and other payables 7,655 4,487,001 4,494,656 22,197 6,544,874 6,567,071 978,174 2,125,426 Lease liabilities Financial liabilities at amortised cost Total Financial assets at amortised cost Less: Financial liabilities at amortised cost 8,992,568 (5,472,830) 3,519,738 10,393,252 (8,692,497) 1,700,755 - 27 -  VANHEEL MANAGEMENT LIMITED NOTES TO FINANCIAL STATEMENTS 30 JUNE 2025 14. TRADE AND OTHER RECEIVABLES Related parties Third parties HK$ HK$ Total HK$ 2025 Trade receivables Deposits and other receivables - - 1,684,441 1,131,707 1,684,441 1,131,707 - 2,816,148 2,816,148 2024 Trade receivables Deposits and other receivables - - 1,585,891 1,298,450 1,585,891 1,298,450 - 2,884,341 2,884,341 15. CASH AND CASH EQUIVALENTS 2025 HK$ 2024 HK$ Cash and cash equivalents comprise: 924,375 5,252,045 805,693 6,703,218 Cash at banks: General accounts Cash at banks: Call deposit 6,176,420 7,508,911 16. TRADE AND OTHER PAYABLES Related parties HK$ Third parties HK$ Total HK$ - 2025 Amount due to a director Accrued charges and other payables 7,655 - 4,487,001 7,655 4,487,001 Current liabilities 7,655 (7,655) 4,487,001 (4,487,001) 4,494,656 (4,494,656) Non-current liabilities - - - - 2024 Amount due to a director Accrued charges and other payables 22,197 - 6,544,874 22,197 6,544,874 22,197 (22,197) 6,544,874 (6,544,874) 6,567,071 (6,567,071) Current liabilities Non-current liabilities - - - - 28 -  VANHEEL MANAGEMENT LIMITED NOTES TO FINANCIAL STATEMENTS 30 JUNE 2025 17. LEASE LIABILITIES At the end of reporting period, the remaining contractual maturities of the Company's lease liabilities which are based on contractual undiscounted cash flows (including interest payments computed using interest rates implicit to the leases or lessee's incremental borrowing rates) and the earliest date of the Company can be required to pay are as follows: 2025 HK$ 987,360 Payable within one year Payable after one year and not later than two years - 2024 HK$ 1,184,832 987,360 987,360 2,172,192 18. SHARE CAPITAL No. of shares HK$ 860 1,926,122 Issued and fully paid Ordinary share without par value Balance at beginning and end of 2024 and 2025 Managing capital Managing capital of the Company comprises: 2025 HK$ 1,926,122 5,653,047 2024 HK$ 1,926,122 3,113,452 Issued and paid-up share capital Retained profits Less: Interim dividend (2025: HK$4,261.836 per share) / (2024: HK$1,368 per share) (3,665,179) (1,177,139) 3,913,990 3,862,435 The primary objective of the Company's capital management is to ensure that it meets the minimum liquid capital as defined in the Securities and Futures (Financial Resources) Rule ("FRR") and maintains a strong credit rating and healthy capital ratios in order to support its business and maximize shareholder value. The Company holds a license granted by the Securities and Futures Commission ("SFC") to carry on Type 4 and 9 regulated activities subject to specified licensing conditions. The Company is required to meet a minimum liquid capital requirement which is determined as the higher of HK$100,000 and 5% of the adjusted liabilities of the Company in accordance with the FRR. The Company manages its capital structure and makes adjustments to it, in light of changes in the capital requirement. To maintain or adjust the capital structure, the Company may issue new shares to the existing shareholders. During the year, the Company maintained its liquid capital in excess of the minimum requirement of the FRR. - 29 -  VANHEEL MANAGEMENT LIMITED NOTES TO FINANCIAL STATEMENTS 30 JUNE 2025 19. RELATED PARTY DISCLOSURES 2025 HK$ 2024 HK$ Related parties transactions Directors and other key management personnel Director's quarter rental charges payable to a related company (note 1) 912,000 1,104,000 7,655 22,197 Amounts due to related parties Director (note 2) Note 1: The director of the Company has control over the related company. Note 2: The amount is unsecured, interest free and repayable on demand. 20. LEASE COMMITMENT Maturity analysis of the lease payments receivable under operating lease are as follows: 2025 HK$ 2024 HK$ 987,360 Undiscounted lease payments The first year after reporting period The second year after reporting period - 1,184,832 987,360 987,360 2,172,192 21. FINANCIAL RISK MANAGEMENT Exposure to financial risks on the financial instruments of the Company comprises credit risk on credit period offered to its trade debtors and advances to other debtors, liquidity risk on withdrawal or cutting of credit limit and credit period offered by trade creditors and/or bankers and market risk on the changes in fair value or future cash flows of financial instruments due to the fluctuation of market factors such as exchange rates, interest rates and market prices. Credit risk The Company's major source of credit risk comes from its trade receivables and deposits and other receivables. The payment terms of trade receivables and deposits and other receivables are payable on demand. The following table provides an ageing analysis of the trade receivables and deposits and other receivables. Trade receivables HK$ Deposits and other receivables HK$ Total HK$ 2025 Payable on demand 1,684,441 1,131,707 2,816,148 1,684,441 1,131,707 2,816,148 2024 Payable on demand 1,585,891 1,298,450 2,884,341 1,585,891 1,298,450 2,884,341 - 30 -  VANHEEL MANAGEMENT LIMITED NOTES TO FINANCIAL STATEMENTS 30 JUNE 2025 21. FINANCIAL RISK MANAGEMENT (CONTINUED) Credit risk (continued) Objective, policy and processes Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Credit evaluations are performed on all parties requiring credit over a certain amount. The Company does not require collateral in respect of financial assets. At the end of reporting period, there were no material credit risks. The maximum exposure to credit risk represents the carrying amount of each financial asset on that date. The Company does not change the exposure and policy from the preceding year. Liquidity risk The Company's major sources of liquidity risk come from amount due to a director, accrued charges and other payables and lease liabilities. The following table depicts the recognised financial liabilities together with their maximum liabilities. Maximum liabilities Recognised 2025 HK$ 7,655 2024 HK$ 22,197 2025 HK$ 22,197 2024 HK$ 22,197 4,487,001 978,174 6,544,874 2,125,426 6,544,874 2,125,426 6,544,874 3,244,380 Amount due to a director Accrued charges and other payables Lease liabilities 5,472,830 8,692,497 8,692,497 9,811,451 Objective, policy and processes It is the Company's policy to maximise the credit period provided by trade creditors but not overdue the payment of trade debts. The Company has maintained good relationship with its employees, landlords, suppliers, bankers and shareholders. The Directors expect that the major bankers, landlords and suppliers would not withdraw or cut credit limit and credit period in the foreseeable future. If necessary, the Directors may raise additional funds from shareholders, other related parties and bankers for long term investments. The Directors regard that the liquidity risk is controlled at an optimal level. The Company does not change the exposure to liquidity risk and policy from the preceding year. Maturity analysis of financial liabilities At the end of reporting period, the remaining contractual maturities of the Company's financial liabilities which are based on contractual undiscounted cash flows (including interest payments computed using contractual rates or, if floating, based on rates current at the end of reporting period) and the earliest date of the Company can be required to pay/repay are as follows: - 31 -  VANHEEL MANAGEMENT LIMITED NOTES TO FINANCIAL STATEMENTS 30 JUNE 2025 21. FINANCIAL RISK MANAGEMENT (CONTINUED) Liquidity risk (continued) 2025 HK$ 2024 HK$ 7,655 22,197 Amount due to a director Repayable on demand 4,487,001 6,544,874 Accrued charges and other payables Payable on demand 4,494,656 6,567,071 Total The maturity analysis of lease liabilities is set out in note 17 to financial statements. The Company did not have derivative financial liabilities at the end of reporting period (2024: Same). Accordingly, it provides no maturity analysis for derivative financial liabilities. The Company maintains rolling cash flow forecasts for the current month, next three months, next six months and next twelve months. The Directors closely monitor the rolling cash flow forecasts and discuss the financing policies and procedures on a regular basis. Market risk The Company's major sources of market risk come from currency risk and interest rate risk . The Company's exposures to each of these risks and its objectives, policies and processes for managing the risks and methods used to measure the risks are set out below. Currency risk The Company has no significant concentration of currency risk. Interest rate risk The Company has no significant concentration of interest rate risk. 22. FAIR VALUE MEASUREMENT the Company's financial assets and liabilities, Financial assets and financial liabilities at amortised cost including trade The carrying amount of receivables, deposits and prepayments, cash and cash equivalents, accrued charges and other payables and amount due to a director approximates their fair values, which due to their short- term maturities, or they are subject to floating rates. 23. APPROVAL AND ISSUE OF FINANCIAL STATEMENTS The statement of financial position was approved and the financial statements were authorised for issue by the Directors on [date of approval]. - 32 -