Success Dragon International Holdings Limited (1182) reported interim results for the six months ended 30 September 2025, highlighting prepayments of approximately HK$36.3 million for its gold processing and trading business. These prepayments were made to two suppliers (Supplier (1) and Supplier (2)) under normal commercial terms to secure a stable supply of gold ore and gold-laden carbon.

According to the announcement, certain prepayments exceeded the thresholds set out in the Listing Rules, triggering disclosure obligations. Specific prepayments to Supplier (1) and Supplier (2) reached or exceeded 8% of the Group’s total assets or showed an increase of 3% or more over previously disclosed amounts within short timeframes. As a result, the company disclosed relevant details pursuant to Rules 13.13, 13.14, and 13.15 of the Listing Rules.

The prepayments are interest-free and unsecured, aligning with industry practices to ensure raw material availability. Supplier (1) is engaged in mineral processing and sales of metal ore, while Supplier (2) is involved in mineral resources and metal ore sales, both in the PRC. Due diligence measures—including background checks, financial assessments, and regular monitoring—were conducted to manage potential risks.

The company clarified that it initially misinterpreted the application of Rule 13.15A and did not announce the prepayments in a timely manner. To address this, it has arranged additional training on relevant Listing Rules, plans ongoing quarterly sessions for key staff, and will strengthen its internal coordination and reporting mechanisms. External legal or professional advice will be sought as needed to maintain compliance. The company will continue disclosing any updates under Rule 13.20 of the Listing Rules so long as the circumstances require.