Business Operations and Subsidiaries - The company's main business is property development and investment, with details of subsidiaries' main businesses provided in Note 10 of the financial statements[6] - The company's joint ventures and associates are detailed in Notes 11 and 12 of the financial statements as of June 30, 2024[7][8] - The company's main business operations are concentrated in Hong Kong, with key properties located at 3 Jordan Road, Kowloon, and 180 Java Road, North Point, which include residential, commercial, and parking spaces[43] - The company does not operate any manufacturing facilities or engage in property construction, resulting in minimal environmental and social impact[45] - Subsidiary Heartwell Limited holds 9,000,002 shares with 100% direct ownership, primarily engaged in investment holding[169] - Subsidiary Communication Holdings Limited holds 35,900,010 shares at HKD 10 per share, with 100% direct ownership, primarily engaged in investment holding[169] Dividends and Dividend Policy - The company declared a first interim dividend of HKD 0.10 per share and a special dividend of HKD 1.00 per share on June 25, 2024, with a second interim dividend of HKD 0.30 per share to be paid on October 17, 2024[9] - The board recommended a final dividend of HKD 0.10 per share and a special dividend of HKD 1.70 per share for the fiscal year ending June 30, 2024, subject to shareholder approval at the upcoming annual general meeting[9] - The company aims to distribute dividends three times a year, with the first interim dividend declared around February, the second interim dividend around July, and the final dividend around November following the annual general meeting[9] - The company's dividend policy balances regular dividend payments with retaining sufficient cash reserves for reinvestment to enhance shareholder value[9] - Dividends paid for the fiscal year 2024 amounted to HKD 95,082,000, consistent with the previous year's HKD 95,147,000[187] Financial Performance and Position - Rental income increased to HKD 70 million (2023: HKD 67 million), driven by improved residential occupancy rates and higher UK rental income due to a stronger GBP exchange rate[25] - Operating profit for the year rose to HKD 95 million (2023: HKD 74 million), reflecting higher rental and interest income, partially offset by exchange losses[26] - Post-tax loss attributable to shareholders was HKD 262 million (2023: HKD 155 million), primarily due to revaluation losses on investment properties[26] - Net revaluation loss on investment properties, including joint ventures, was HKD 405 million, which is non-cash and did not impact operating cash flow[26] - The company's overall financial position remains healthy despite the revaluation losses[26] - Cash and cash equivalents increased to HKD 1.212 billion as of June 30, 2024, up from HKD 765 million in 2023[27] - Net cash inflow from operating activities was HKD 29 million in 2024, compared to HKD 25 million in 2023[27] - Capital expenditure for the year was HKD 154,000, up from HKD 119,000 in 2023[29] - The company's share of equity in affiliates was HKD 3,411,295,000 as of June 30, 2024, down from HKD 3,562,711,000 in 2023[32] - The company's operating profit for the fiscal year ending June 30, 2024, was HKD 95 million, compared to HKD 74 million last year, driven by increased rental and interest income, partially offset by exchange losses[108] - The company reported an audited consolidated loss attributable to shareholders of HKD 262 million for the fiscal year ending June 30, 2024, compared to a loss of HKD 155 million last year, primarily due to revaluation losses on investment properties[108] - The company proposed a final dividend of HKD 0.10 per share and a special dividend of HKD 1.70 per share, bringing the total dividend for the year to HKD 3.20 per share, the same as last year[108] - The company's investment property valuation loss was non-cash in nature and did not impact the operating cash flow[108] - The company's overall financial position remains healthy[108] - Revenue for the year ending June 30, 2024, increased to HKD 269,550,000 from HKD 66,935,000 in 2023, representing a significant growth[125] - Financial income rose to HKD 63,600,000 in 2024, up from HKD 43,271,000 in 2023[125] - Operating profit for 2024 was HKD 94,839,000, compared to HKD 73,853,000 in 2023[125] - Loss attributable to shareholders after tax for 2024 was HKD 262,219,000, an increase from HKD 155,236,000 in 2023[125] - Basic and diluted loss per share for 2024 was HKD 5.79, compared to HKD 3.43 in 2023[125] - Total comprehensive loss for the year 2024 was HKD 264,496,000, compared to HKD 111,946,000 in 2023[126] - Total assets decreased to HKD 7,246,413,000 in 2024 from HKD 7,656,766,000 in 2023[128] - Net asset value as of June 30, 2024, was HKD 7,198,532,000, down from HKD 7,607,914,000 in 2023[128] - Equity attributable to shareholders decreased to HKD 7,198,532,000 in 2024 from HKD 7,607,914,000 in 2023[128] - Total equity decreased from HKD 7,607,914,000 to HKD 7,198,532,000, primarily due to a net loss of HKD 262,219,000 and exchange losses of HKD 234,905,000[130] - Operating cash flow increased to HKD 29,130,000 from HKD 25,089,000, driven by higher operating profit and reduced tax payments[131] - Net cash from investing activities surged to HKD 565,381,000, mainly due to a significant reduction in bank deposits with maturities over 3 months (HKD 525,407,000)[131] - Cash and cash equivalents increased by HKD 449,898,000, reaching HKD 1,211,925,000 at the end of the period[132] - Dividends paid amounted to HKD 144,613,000, slightly higher than the previous year's HKD 138,755,000[132] - Exchange rate fluctuations resulted in a loss of HKD 3,130,000, compared to a gain of HKD 20,247,000 in the previous year[132] - The company reported a net loss of HKD 262,219,000, compared to a profit in the previous year[130] - Interest income increased significantly to HKD 68,793,000 from HKD 35,659,000, reflecting higher cash balances[131] - The company's total reserves decreased by HKD 144,886,000, primarily due to dividend payments and property revaluation adjustments[130] - The company's rental income from investment properties in 2024 was HKD 69,550,000, compared to HKD 66,935,000 in 2023, showing a growth of approximately 3.9%[148][151] - The company's revenue from Hong Kong operations in 2024 was HKD 38,897,000, a 3.6% increase from HKD 37,552,000 in 2023[151] - Revenue from the UK operations in 2024 was HKD 30,653,000, up 4.3% from HKD 29,383,000 in 2023[151] - The company's share of joint venture revenue for the year was HKD 102,390,000, a slight increase from HKD 101,294,000 in 2023[149] - The company's operating profit in Hong Kong for 2024 was HKD 46,026,000, a significant increase of 37.8% from HKD 33,403,000 in 2023[151] - Operating profit in the UK for 2024 was HKD 48,813,000, up 20.7% from HKD 40,450,000 in 2023[151] - The company's total operating profit for 2024 was HKD 94,839,000, a 28.4% increase from HKD 73,853,000 in 2023[151] - The company's interest income in 2024 was HKD 66,351,000, a 50.9% increase from HKD 43,960,000 in 2023[154] - The company's total assets as of 2024 were HKD 7,297,658,000, a decrease of 5.3% from HKD 7,704,559,000 in 2023[152] - Operating profit for 2024 was HK$69.55 million, compared to HK$66.935 million in 2023, reflecting an increase of 3.9%[155] - Employee costs increased to HK$15.784 million in 2024 from HK$15.068 million in 2023, a rise of 4.75%[155] - Total remuneration for directors and the CEO in 2024 was HK$7.771 million, up from HK$8.055 million in 2023, a decrease of 3.5%[157][158] - The highest-paid employees (excluding directors and CEO) received a total remuneration of HK$2.964 million in 2024, compared to HK$2.784 million in 2023, an increase of 6.5%[160] - Hong Kong profits tax provision for 2024 was HK$3.69 million, up from HK$3.465 million in 2023, reflecting a 6.5% increase[161] - Overseas tax provision for 2024 was HK$3.97 million, compared to HK$3.54 million in 2023, an increase of 12.1%[161] - Basic and diluted loss per share for 2024 was HK$5.79, based on a net loss of HK$262.219 million and 45,276,856 weighted average shares outstanding[162] - The fair value of investment properties in Hong Kong decreased by HKD 142.16 million (142,160,000) in 2024, from HKD 1.58 billion (1,580,000,000) to HKD 1.44 billion (1,437,840,000)[166] - The fair value of investment properties in the UK decreased by HKD 29.96 million (29,957,000) in 2024, from HKD 534.61 million (534,611,000) to HKD 503.61 million (503,605,000)[166] - The total undiscounted rental income from operating leases for the next year is HKD 43.78 million (43,777,000) in 2024, compared to HKD 59.46 million (59,457,000) in 2023[168] - The total undiscounted rental income from operating leases for more than 5 years is HKD 10.77 million (10,766,000) in 2024, compared to HKD 19.16 million (19,159,000) in 2023[168] - The capital value per square foot for investment properties in Hong Kong ranges from HKD 5,200 to HKD 39,700 in 2024, compared to HKD 5,600 to HKD 44,700 in 2023[165] - The capitalization rate for investment properties in Hong Kong ranges from 2.8% to 4.6% in 2024, compared to 2.6% to 3.9% in 2023[165] - The market rent per square foot for investment properties in the UK ranges from GBP 4.42 to GBP 6.25 in 2024, compared to GBP 3.5 to GBP 3.83 in 2023[165] - The capitalization rate for investment properties in the UK ranges from 5.55% to 5.90% in 2024, compared to 4.98% to 5.62% in 2023[165] - The net book value of other properties revalued in 2002 is HKD 10.88 million (10,879,000) as of June 30, 2024, compared to HKD 10.92 million (10,917,000) in 2023[167] - The total accumulated depreciation for fixed assets as of June 30, 2024, is HKD 20.23 million (20,233,000), compared to HKD 16.87 million (16,869,000) in 2023[163] - The net liability value of the company's investment in associates increased to $1,311,181,000 in 2024 from $1,189,949,000 in 2023, reflecting a growth of 10.2%[174] - The total assets of the two associates, Windcharm Property Holdings Limited and Joyful Sincere Limited, increased to $6,800,340,000 in 2024 from $6,057,880,000 in 2023, a 12.3% increase[177] - The company's share of the associates' net liabilities increased to $1,313,832,000 in 2024 from $1,190,432,000 in 2023, a 10.4% rise[177] - The company's investment in listed equity securities in Hong Kong decreased to $11,534,000 in 2024 from $13,353,000 in 2023, a 13.6% decline[178] - The total accounts receivable, deposits, and prepayments decreased to $9,493,000 in 2024 from $11,963,000 in 2023, a 20.6% reduction[179] - The total accounts payable increased to $47,267,000 in 2024 from $45,451,000 in 2023, a 4.0% increase[182] - The company's current tax payable for Hong Kong profits tax increased to $3,978,000 in 2024 from $2,342,000 in 2023, a 69.9% rise[182] - The company's deferred tax assets increased to $147,469,000 in 2024 from $140,749,000 in 2023, a 4.8% increase[184] - Total equity decreased from HKD 2,427,408,000 in 2022 to HKD 2,112,227,000 in 2024, primarily due to dividend payouts and share repurchases[185] - Available distributable reserves as of June 30, 2024, were HKD 1,717,243,000, down from HKD 1,870,159,000 in 2023[192] - The company has no external loans or borrowings, maintaining a capital structure focused on equity and retained earnings[193] - The company's financial liabilities due within one year or on demand amounted to HKD 47,267,000, with accounts payable of HKD 450,000 and other payables of HKD 46,817,000[195] - The company's interest-bearing financial assets had an actual interest rate range of 3.70% to 5.55% in 2024, with a total value of HKD 1,274,405,000[196] - A 1% increase in interest rates would reduce the company's post-tax loss and increase retained profits by approximately HKD 12.7 million in 2024[197] - The company's foreign currency risk exposure in 2024 included USD 538,457,000 and GBP 15,077,000 in net recognized assets and liabilities[199] - A 10% increase or decrease in the GBP to HKD exchange rate would impact the company's post-tax loss and retained profits by approximately HKD 1.5 million in 2024[200] Corporate Governance and Board Activities - As of June 30, 2024, the company's directors and senior executives held a total of 7,206,843 shares, representing 15.92% of the issued shares, with Dr. Henry Yan holding the largest stake[14] - The company's directors, including Dr. Henry Yan and Anthony Grahame STOTT, are subject to re-election at the upcoming annual general meeting[12] - Lynne Jane ARNETT was appointed as an independent non-executive director on September 6, 2024, and confirmed her understanding of director responsibilities on August 27, 2024[90] - The board ensures independent perspectives by appointing at least three independent non-executive directors, with no performance-related equity compensation to maintain objectivity[91] - The nomination committee, chaired by Dr. Henry Yan, held one meeting during the fiscal year, with all members attending[92] - The board aims to maintain at least 14% female representation, with one female director currently serving, and seeks to increase this proportion when suitable candidates are identified[93] - The board of directors held five meetings during the fiscal year, with all executive and independent non-executive directors attending all five meetings[88][89] - All directors complied with the "Standard Code of Conduct for Securities Transactions by Directors of Listed Companies" during the fiscal year ending June 30, 2024[87] - The company adheres to high corporate governance standards, with only one deviation from the Corporate Governance Code during the reporting period[84] - The company promotes a corporate culture centered on integrity, sustainability, quality, and stability[85] Environmental, Social, and Governance (ESG) - The company supports low-carbon office initiatives and encourages employees to save electricity and paper, with regular reviews of electricity usage (kWh), electricity costs, and paper expenses[45] - The company's environmental, social, and governance (ESG) report is consistent with the 2023 ESG report, allowing for meaningful comparisons[46] - The board of directors is responsible for the formulation, implementation, and reporting of the company's ESG policies, as well as overseeing related ESG issues[47] - The company maintains open and

Financial Performance - The group's operating profit for the fiscal year ending June 30, 2024, was HKD 95 million, an increase from HKD 74 million in the previous year, primarily due to increased rental and interest income, offset partially by foreign exchange losses [3]. - The audited consolidated loss attributable to shareholders was HKD 262 million, compared to a loss of HKD 155 million in the previous year, mainly reflecting revaluation losses on investment properties [3][12]. - The company's revenue for 2024 was HKD 69,550,000, an increase of 3.3% from HKD 66,935,000 in 2023 [17]. - The financial income for 2024 reached HKD 63,600,000, up from HKD 43,271,000 in 2023, representing a growth of 47.1% [17]. - The operating profit attributable to joint ventures was HKD 94,839,000, compared to HKD 73,853,000 in 2023, marking a rise of 28.4% [18]. - The total loss for the year was HKD 262,219,000, which is a significant increase from HKD 155,236,000 in 2023 [14]. - The total comprehensive loss for the year was HKD 264,496,000, compared to HKD 111,946,000 in 2023, indicating a substantial increase in losses [14]. - The company reported a basic and diluted loss per share of HKD 5.79 for 2024, compared to HKD 3.43 in 2023 [13]. - The company's net asset value decreased to HKD 7,198,532,000 in 2024 from HKD 7,607,914,000 in 2023, a decline of 5.4% [15]. - The group’s total operating expenses increased to HKD 20,225,000 in 2024 from HKD 19,015,000 in 2023 [24]. - The group declared a total dividend of HKD 144,886,000 for 2024, consistent with the previous year [31]. Revenue and Occupancy - Approximately 88% of the floor area of South Island Place, a modern Grade A office building, has been leased to high-quality tenants [6]. - The rental occupancy rate for the office space at North Point's Port Centre was 66%, while residential units were fully leased at 100% [7]. - Revenue from Hong Kong operations was HKD 38,897,000 in 2024, up from HKD 37,552,000 in 2023, while UK operations generated HKD 30,653,000, an increase from HKD 29,383,000 [22]. Investments and Projects - The group holds a 20% stake in Windcharm Property Holdings Limited, which is redeveloping a site into a mixed-use project with a total construction area of 64,500 square meters [4]. - The foundation works for the redevelopment project at Chai Wan are progressing as planned, with concrete works ongoing and the first occupancy permit expected in 2025 [5]. - The group has signed a sale agreement for Albany House in London for GBP 47 million (approximately HKD 478 million), pending shareholder approval [8]. Financial Position and Liquidity - Despite macroeconomic challenges, the group's financial position remains strong with sufficient liquidity and no external debt, positioning it to benefit from future market improvements [10]. - The group’s cash and cash equivalents increased to HKD 112,230,000 in 2024 from HKD 74,903,000 in 2023, reflecting a growth of 49.8% [15]. - The group’s interest income rose to HKD 66,351,000 in 2024, compared to HKD 43,960,000 in 2023, marking a significant increase of 50.8% [23]. - The group’s total receivables amounted to HKD 9,493,000 in 2024, down from HKD 11,963,000 in 2023 [29]. - The group’s current assets and liabilities as of June 30, 2024, were HKD 6,855,642,000 and HKD 293,249,000 respectively, resulting in a net current asset position of HKD 6,562,393,000 [37]. Shareholder Information - The total dividend proposed for the year is HKD 3.20 per share, consistent with the previous year, which includes a final dividend of HKD 0.10 and a special dividend of HKD 1.70 [3]. - The proposed final dividend is HKD 0.10 per share, along with a special dividend of HKD 1.70 per share, totaling HKD 3.20 per share for the year, consistent with the previous year [34]. - As of June 30, 2024, the total issued and paid-up ordinary shares were 45,276,856, with a total amount of HKD 92,537,000 [32]. - The company will suspend the transfer of shares from November 29, 2024, to December 4, 2024, for the annual general meeting [35]. Audit and Compliance - The company’s auditor confirmed that the figures in the annual performance announcement are consistent with the consolidated financial statements for the year ended June 30, 2024 [33]. - The company does not foresee the need to establish an internal audit function due to its current structure and scale [38]. - The group has not repurchased, sold, or redeemed any of its listed securities during the year [35]. Economic Outlook - The group anticipates continued challenges in the global economic environment, with potential impacts from geopolitical tensions and a slowdown in the Chinese real estate market [9].

Financial Performance - The unaudited consolidated operating profit for the six months ended December 31, 2023, was HK$47.86 million, compared to HK$28.34 million for the same period in 2022, representing a 68.9% increase[2]. - The unaudited consolidated loss attributable to shareholders for the six months ended December 31, 2023, was HK$161.24 million, compared to a loss of HK$130.86 million for the same period in 2022, indicating a 23.2% increase in losses[3]. - Revenue for the six months ended December 31, 2023, was HK$34.64 million, up from HK$33.41 million in the same period of 2022, reflecting a growth of 3.7%[3]. - Financial income increased significantly to HK$31.42 million for the six months ended December 31, 2023, compared to HK$14.32 million in the same period of 2022, marking a 119.5% increase[3]. - The basic and diluted loss per share for the six months ended December 31, 2023, was HK$3.56, compared to HK$2.89 for the same period in 2022, reflecting a 23.3% increase in loss per share[3]. - The total comprehensive loss attributable to shareholders for the six months ended December 31, 2023, was HK$156.58 million, compared to HK$137.74 million for the same period in 2022, representing a 13.6% increase[5]. - The company reported a pre-tax loss of HKD 158,805,000 for the six months ended December 31, 2023, compared to a pre-tax loss of HKD 128,218,000 in the previous year[15]. - The company’s total comprehensive loss after tax for the six months ending December 31, 2023, was HKD 161.24 million, compared to a loss of HKD 130.86 million in the same period last year[37]. Cash Flow and Assets - Operating cash inflow for the six months ended December 31, 2023, was HKD 16,047,000, compared to HKD 12,544,000 in 2022, representing a 28.5% increase[9]. - Net cash inflow from operating activities increased to HKD 13,993,000 from HKD 9,332,000, marking a 49.5% rise year-over-year[9]. - Total cash inflow from investment activities was HKD 447,100,000, a significant recovery from a cash outflow of HKD 123,730,000 in the previous year[9]. - The total cash and cash equivalents as of December 31, 2023, stood at HKD 1,213,188,000, up from HKD 641,322,000 in 2022, representing an increase of 89.2%[9]. - Total assets less current liabilities as of December 31, 2023, amounted to HK$7.40 billion, down from HK$7.66 billion as of June 30, 2023, representing a decrease of 3.4%[6]. - The company's net asset value as of December 31, 2023, was HK$7.36 billion, compared to HK$7.61 billion as of June 30, 2023, indicating a decline of 3.3%[6]. - Total assets as of December 31, 2023, amounted to HKD 7,532,219,000, with property development and investment assets contributing HKD 5,905,852,000[16]. - The group's total assets as of December 31, 2023, amounted to HKD 2,676,899,000, down from HKD 2,815,195,000 as of June 30, 2023[27]. Liabilities and Shareholder Equity - The company’s total liabilities were reported at HKD 175,969,000, with allocated liabilities for property development and investment at HKD 19,103,000[16]. - The group's total liabilities as of December 31, 2023, were HKD 1,575,142,000, compared to HKD 1,101,757,000 as of June 30, 2023, indicating an increase of 42.9%[27]. - As of December 31, 2023, the group's share of equity in associated companies is HKD 3,463,673,000, down from HKD 3,652,711,000 as of June 30, 2023[52]. Investments and Projects - The company holds a 20% stake in Windcharm Investments Limited, which is developing a mixed-use project with a total construction area of 64,500 square meters in Chai Wan[38]. - The company has committed to pay a land premium of HKD 4.54 billion, with its share amounting to HKD 908 million, for a new land grant in exchange for the old site[38]. - The foundation works for both Site A and Site B have been completed, with superstructure works for the residential buildings underway, expected to be completed by Q3 2025 and 2026 respectively[38]. - Approximately 88% of the total floor area of South Island Place, a modern Grade A office building, has been leased to high-quality tenants[39]. - The company is considering significant renovations for Albany House in London to enhance its quality and energy efficiency, with various consultants engaged for feasibility studies[40]. Market Outlook - The global economic environment is expected to remain challenging in 2024, with inflation and interest rates projected to decline moderately[41]. - The residential sales transaction volume in Hong Kong is anticipated to remain sluggish in Q1 2024 due to high interest rates, but property investment activities may gradually improve later in 2024 and into 2025[41]. - The office market in Hong Kong will continue to face challenges due to high vacancy rates and new supply, while the retail market is seeing a recovery in tourist numbers but declining average spending[41]. Corporate Governance and Compliance - The company has complied with the corporate governance code, except for the establishment of an internal audit function, which the board deems unnecessary at this time[54]. - The independent review report confirms that the interim financial report complies with the requirements of Hong Kong Accounting Standards[59]. - The company did not repurchase, sell, or redeem any of its listed securities during the six months ending December 31, 2023[50]. Shareholder Information - As of December 31, 2023, Dr. Henry Yan holds 15.92% of the company's issued shares, amounting to 7,206,843 shares[44]. - Major shareholders include 顏潔齡 with 11.66%, 顏蘇雪文 with 15.41%, and 陳君實 with 12.26%, collectively holding 42.99% of issued shares[48]. Miscellaneous - The group incurred legal and professional fees of HKD 1,010,000 for the six months ended December 31, 2023, down from HKD 2,919,000 in the same period of 2022, a decrease of 65.4%[22]. - The group recognized tax expenses of HKD 2,435,000 for the six months ended December 31, 2023, compared to HKD 2,644,000 in the same period of 2022, a decrease of 7.9%[24]. - The group has provided financial assistance totaling HKD 2,005,407,000 to Hareton Limited and Joyful Sincere Limited, with no collateral and interest-free terms, except for a portion of the financial assistance to Joyful Sincere Limited which incurs an interest rate of 4.5%[51]. - Forward-looking statements in the report involve known and unknown risks and uncertainties that may cause actual performance to differ significantly from those implied[56].

Financial Performance - The unaudited consolidated operating profit for the six months ended December 31, 2023, was HK$47.86 million, compared to HK$28.34 million for the same period in 2022, representing a growth of approximately 68.5%[3] - The unaudited consolidated loss after tax for the six months ended December 31, 2023, was HK$161.24 million, compared to a loss of HK$130.86 million for the same period in 2022, indicating an increase in loss of approximately 23.2%[4] - The group's total revenue for the six months ended December 31, 2023, was HK$334.64 million, up from HK$334.07 million in the same period of 2022, reflecting a slight increase of about 0.17%[4] - The basic and diluted loss per share for the six months ended December 31, 2023, was HK$3.56, compared to HK$2.89 for the same period in 2022, representing an increase of approximately 23.3%[4] - The group reported a total comprehensive loss attributable to shareholders of HK$156.58 million for the six months ended December 31, 2023, compared to HK$137.74 million for the same period in 2022, reflecting an increase of about 13.6%[5] Asset and Liability Overview - The total assets less current liabilities as of December 31, 2023, amounted to HK$7.40 billion, compared to HK$7.66 billion as of June 30, 2023, showing a decrease of approximately 3.4%[6] - The group's cash and cash equivalents as of December 31, 2023, were HK$1.41 billion, compared to HK$1.39 billion as of June 30, 2023, indicating a slight increase of about 1.1%[6] - The group's total assets in the property development and investment segment amounted to HKD 5,905,852,000 as of December 31, 2023[11] - The group's total liabilities in the property development and investment segment were HKD 19,103,000, indicating a stable financial position[11] - The total liabilities of the group were HKD 10,634,249,000, with non-current liabilities at HKD 73,393,000[38] Investment and Revenue Streams - The group's rental income from investment properties for the six months ended December 31, 2023, was HKD 34,643,000, representing an increase of 3.7% compared to HKD 33,407,000 for the same period in 2022[9] - Total revenue for the property development and investment segment was HKD 34,643,000, while financial income was HKD 31,419,000, up from HKD 14,319,000 in the previous year[11] - Interest income for the six months ended December 31, 2023, was HKD 34,171,000, more than double the HKD 16,399,000 reported in the same period last year[13] - The group's share of revenue from joint ventures was HKD 51,460,000, slightly up from HKD 51,162,000 in the previous year[16] Challenges and Losses - The net loss from the revaluation of investment properties for the six months ended December 31, 2023, was HK$233.57 million, which is a non-cash item and does not impact the operating cash flow[3] - The group reported a net loss from the revaluation of investment properties of HKD 125,966,000 for the period, highlighting challenges in property valuation[11] - The group's share of losses from joint ventures was HKD 80,296,000, a decline from a profit of HKD 28,282,000 in the previous year, indicating a negative shift in joint venture performance[16] Dividends and Shareholder Policies - The interim dividend declared was HKD 0.10 per share, consistent with the previous year[28] - The special dividend declared was HKD 1.00 per share, unchanged from the previous year[28] - The group’s cash reserves are aimed at balancing regular dividend payments and reinvestment opportunities[28] - The group plans to review its dividend policy regularly to act in the best interest of all shareholders[28] Future Outlook and Strategic Initiatives - The company plans to adopt new accounting policies in the annual financial statements for the fiscal year 2024, which may impact future financial reporting[7] - The global economic environment is expected to remain challenging in 2024, with a potential mild decline in inflation and interest rates, but geopolitical tensions and a slowdown in the Chinese real estate market may prolong difficult financial conditions[34] - The local residential leasing market remains strong, driven by the government's talent visa program, while the office market faces challenges due to high vacancy rates and new supply[34] - The group maintains a strong financial position with sufficient liquidity and no external debt, positioning it to benefit from future market improvements[35] Corporate Governance - The group’s credit policy is established to manage accounts receivable effectively[22] - The company has not established an internal audit function, as deemed unnecessary by the board given the current business structure and scale[39] - The board of directors consists of six members, including independent non-executive directors[42]

Corporate Governance - The company will hold its 85th Annual General Meeting on December 4, 2023, to discuss the financial statements for the year ending June 30, 2023[6]. - The board of directors will be re-elected, including Dr. Henry Yan and Mr. Anthony Grahame Stott[7]. - The company has appointed KPMG as its auditor for the upcoming year[6]. - The board of directors includes independent non-executive members, ensuring governance and oversight[12]. - The board has established mechanisms to ensure independent viewpoints and opinions, appointing at least three independent non-executive directors, with at least one-third of the board being independent non-executive directors[94]. - The Nomination Committee held one meeting during the fiscal year ending June 30, 2023, focusing on reviewing the board's structure, size, and diversity, and assessing the independence of independent non-executive directors[95]. - The Audit Committee held three meetings during the fiscal year, reviewing the company's risk management and internal control systems, and approving the remuneration of external auditors[99]. - The board recognizes the benefits of diversity, including gender, race, age, and professional skills, and aims to maintain a diverse board composition[97]. - The company plans to appoint at least one female director with the necessary skills and experience by December 31, 2024, to enhance board diversity[97]. - The board is responsible for evaluating the nature and extent of risks acceptable to the company while ensuring effective risk management and internal control systems are in place[100]. Financial Performance - The group's operating profit for the year was HKD 74 million, compared to HKD 47 million last year, primarily reflecting increased interest income[29]. - The loss attributable to shareholders after tax was HKD 155 million, compared to a profit of HKD 72 million in the previous year, mainly due to revaluation losses on investment properties[29]. - The net revaluation loss on investment properties for the year was HKD 279 million, which is a non-cash item and does not affect the group's operating cash flow[29]. - The total revenue for the year ended June 30, 2023, was HKD 66,935,000, a decrease of 8.8% compared to HKD 72,983,000 in 2022[136]. - The operating profit for the year was HKD 73,853,000, up from HKD 46,678,000, indicating a growth of 58.1%[136]. - The net loss attributable to shareholders for the year was HKD 155,236,000, compared to a profit of HKD 72,347,000 in 2022[136]. - The company reported a significant revaluation loss on investment properties of HKD 272,336,000 compared to a loss of HKD 78,235,000 in the previous year[136]. - The total assets decreased to HKD 7,656,766,000 from HKD 7,918,391,000, a decline of 3.3%[139]. - The company's equity decreased to HKD 7,607,914,000 from HKD 7,867,159,000, a decline of 3.3%[139]. - The group reported a net loss attributable to shareholders of HKD 155,236,000 in 2023, compared to a profit of HKD 72,347,000 in 2022[169]. Dividend Distribution - The company plans to declare a final dividend for the year ending June 30, 2023[6]. - The board proposed a final dividend of HKD 0.10 per share and a special dividend of HKD 1.70 per share for the fiscal year ending June 30, 2023, subject to shareholder approval[12]. - The company declared an interim dividend of HKD 0.10 per share and a special dividend of HKD 1.00 per share for the first half of the fiscal year 2023[12]. - The second interim dividend of HKD 0.30 per share is scheduled for distribution on October 19, 2023[12]. - The company aims to distribute dividends three times a year, balancing regular dividends and cash reserves for reinvestment[12]. Market Conditions - The global economy is expected to face challenges and uncertainties for the remainder of 2023, with inflation pressures remaining high due to ongoing supply constraints and rising interest rates[121]. - In Hong Kong, the local economy has been recovering since 2023, primarily driven by inbound tourism and private consumption, but the residential market has remained weak since April[121]. - Residential transaction agreements in Hong Kong rebounded from a low in December 2022 but have been declining from March to July 2023, attributed to rising mortgage rates and ample new supply[121]. - The office market in Hong Kong continues to see an increase in supply, with a slight decrease in growth as of the end of June 2023, while retail property rents have gradually recovered in the first half of 2023 due to returning tourists[121]. - In the UK, office prices and rents have declined similarly to Hong Kong, with supply above average and occupancy rates below average[121]. Environmental, Social, and Governance (ESG) Practices - The group continues to support low-carbon office practices and encourages employees to save electricity and paper, regularly reviewing electricity consumption and costs[46]. - The group has implemented energy-saving LED lighting in its office and is planning to replace air conditioning units in rental properties with energy-efficient models[60]. - The group has established resource management policies and practices to promote efficient resource utilization and will conduct ongoing monitoring and review[59]. - The group’s operations do not pose significant risks of water or raw material waste, as property water and electricity usage is primarily controlled by tenants[59]. - The group has not identified any significant risks related to environmental protection issues, such as air and greenhouse gas emissions, during the reporting period[58]. - The board is committed to reviewing environmental, social, and governance (ESG) goals and indicators to guide the group's corporate strategy[56]. - Stakeholder feedback is considered essential for assessing and improving the group's ESG performance[49]. - The group maintains communication with stakeholders through various channels, including annual general meetings and business development announcements[50]. Risk Management - The risk management and internal control systems are designed to manage risks rather than eliminate them, with a focus on achieving strategic objectives[100]. - The group closely monitors the economic conditions in its operating regions to manage market and economic risks effectively[101]. - The group has implemented measures to mitigate risks associated with extreme weather events, including regular asset inspections and emergency procedures[64]. - The group is actively managing foreign exchange risks primarily related to USD and GBP bank deposits[37]. - The group has taken preventive measures to ensure the timely and quality completion of development projects within budget[103]. Employee Management - The employee count as of June 30, 2023, was 16, with 14 males and 2 females, compared to 17 in 2022, with a female employee ratio of approximately 12%, up from 6% in 2022[67]. - The employee turnover rate for males was 11.76%, down from 17.65% in 2022, while there was no turnover for female employees[67]. - The group aims to maintain competitive compensation to attract and motivate employees[39]. - The percentage of trained employees by gender and employee category for 2023: Male 50%, Female 100%, Senior Management 100%, Middle Management 100%, Non-Management 30%[71]. - Average training hours per employee by gender and employee category for 2023: Male 12 hours, Female 5 hours, Senior Management 28.5 hours, Middle Management 20 hours, Non-Management 1.5 hours[72]. Investment and Development - The group plans significant investment in the redevelopment of a new site in Chai Wan, with funding expected from internal reserves[38]. - The group holds a 20% stake in Windcharm Investments Limited, which is redeveloping a site into a mixed-use project with a total construction area of 64,500 square meters[117]. - The redevelopment project includes 258 residential units and a covered public transport terminal, with foundation works for Site A expected to be completed by Q4 2023[117]. - The fair value of the investment properties held by the group in Hong Kong and the UK is HKD 21.15 billion, accounting for 27% of the total assets as of June 30, 2023[131]. - The group's investment in joint ventures amounted to HKD 28.15 billion, representing 37% of the total assets as of June 30, 2023[131].

Financial Performance - The group's operating profit for the fiscal year ending June 30, 2023, was HKD 74 million, up from HKD 47 million last year, primarily due to increased interest income [5]. - The group's audited net loss attributable to shareholders was HKD 155 million, compared to a net profit of HKD 72 million last year, mainly reflecting a revaluation loss on investment properties [5]. - Revenue for the year was HKD 66.94 million, a decrease of 8.8% from HKD 72.98 million in 2022 [15]. - The group reported a consolidated loss of HKD 155.36 million for the fiscal year ending June 30, 2023, compared to a profit of HKD 72.35 million in the previous year [14]. - Total comprehensive loss for the year was HKD 111.95 million, compared to a loss of HKD 71.70 million in the previous year [16]. - The company's operating expenses rose to HKD 19,015,000 in 2023 from HKD 18,673,000 in 2022, an increase of 1.8% [25]. - The company's revenue from the Hong Kong market was HKD 37,552,000 in 2023, down from HKD 40,503,000 in 2022, a decrease of 4.8% [24]. - Revenue from the UK market was HKD 29,383,000 in 2023, down from HKD 32,480,000 in 2022, a decline of 6.4% [24]. Dividends - The total proposed dividend for the year is HKD 3.20 per share, consistent with last year's dividend [5]. - The total dividends declared for the fiscal year 2023 amount to HKD 144,886,000, slightly down from HKD 144,986,000 in 2022 [12]. - The company plans to propose a final dividend of HKD 0.10 per share and a special dividend of HKD 1.70 per share, totaling HKD 3.20 per share for the year, consistent with the previous year's distribution [35]. Investment Properties - The group holds a 20% stake in Windcharm Investments Limited, which is redeveloping a site into a mixed-use project with a total construction area of 64,500 square meters [5]. - The foundation work for the redevelopment project is progressing as planned, with completion expected in Q4 2023 for one site and Q3 2025 for the other [6]. - The rental occupancy rate for the office building in North Point was 66% as of June 30, 2023, while residential occupancy was 94% [8]. - The group’s investment properties in London are fully leased, with a 25-year lease for Albany House expiring at the end of 2024 [9]. - The group’s rental income from investment properties was HKD 66.94 million, down from HKD 72.98 million, indicating a decrease of 8.8% [19]. Financial Position - The group maintains a healthy financial position with sufficient liquidity and no external debt, positioning it to benefit from future market improvements [12]. - Non-current assets decreased to HKD 6.23 billion from HKD 6.43 billion, reflecting a decline of 3.1% [17]. - Current assets also saw a decrease, totaling HKD 1.48 billion compared to HKD 1.50 billion in 2022 [17]. - The group's total equity decreased to HKD 7.61 billion from HKD 7.87 billion, a decline of 3.4% [17]. - The total amount of accounts receivable increased to HKD 11,963,000 in 2023 from HKD 3,838,000 in 2022 [30]. - The company reported a total of HKD 45,451,000 in accounts payable for 2023, compared to HKD 39,569,000 in 2022, an increase of 14.5% [31]. - The group's share of equity in associated companies as of June 30, 2023, is HKD 3,562,711,000, compared to HKD 3,554,195,000 in 2022 [38]. - The total assets of the associated companies amount to HKD 10,696,108,000, with non-current assets at HKD 4,753,602,000 [38]. - The company has provided financial assistance totaling HKD 2,005,407,000 to its associated companies, with some loans being interest-free and unsecured [37]. Market Outlook - The global economic outlook remains challenging, with inflation pressures and rising interest rates expected to persist, impacting the real estate market in Hong Kong and the UK [10]. Corporate Governance - The board will continue to seek opportunities to enhance shareholder value [13]. - The company has not repurchased, sold, or redeemed any of its listed securities during the year [35]. - The company does not foresee the need to establish an internal audit function based on its current structure and scale [39]. - The company’s auditor has confirmed that the financial figures for the year ending June 30, 2023, are consistent with the consolidated financial statements [34]. - The company will suspend share transfer registration from November 29, 2023, to December 4, 2023, for the upcoming annual general meeting [36].

Financial Performance - The unaudited consolidated operating profit for the six months ended December 31, 2022, was HK$28.34 million, compared to HK$22.74 million for the same period in 2021, representing a year-on-year increase of approximately 24%[2] - The total revenue for the six months ended December 31, 2022, was HK$33.41 million, down from HK$36.80 million in the previous year, indicating a decrease of about 9.7%[3] - The net loss attributable to shareholders for the six months ended December 31, 2022, was HK$130.86 million, compared to a profit of HK$31.12 million in the same period of 2021, reflecting a significant decline[3] - The revaluation loss of investment properties for the six months ended December 31, 2022, was HK$184.82 million, compared to HK$29.04 million in the previous year, which is a substantial increase in losses[3] - The total comprehensive loss for the six months ended December 31, 2022, was HK$137.74 million, compared to a total comprehensive income of HK$4.50 million in the same period of 2021[4] - Operating cash inflow for the six months ended December 31, 2022, was HKD 12,544,000, down 37.5% from HKD 20,022,000 in 2021[8] - The group's operating profit for the six months ended December 31, 2022, was HKD 10,562,000, down from HKD 17,773,000 in 2021, indicating a decrease of about 40.2%[18] - The group's share of profit from joint ventures for the six months ended December 31, 2022, was HKD 28,282,000, down from HKD 44,463,000 in 2021, showing a decline of about 36.4%[21] - The basic and diluted loss per share for the period was HKD 130,862,000, compared to a profit of HKD 31,121,000 in 2021, indicating a significant shift in performance[25] Assets and Liabilities - The total assets as of December 31, 2022, were HK$7.68 billion, a decrease from HK$7.92 billion as of June 30, 2022[5] - The net asset value as of December 31, 2022, was HK$7.63 billion, down from HK$7.87 billion as of June 30, 2022[5] - The company's total equity as of December 31, 2022, was HK$7.63 billion, compared to HK$7.87 billion as of June 30, 2022, indicating a decrease in shareholder equity[5] - The group's total liabilities were reported at HKD 173,996,000, with unallocated liabilities at HKD 156,022,000[15] - The group's total assets as of December 31, 2022, amounted to HKD 7,962,093,000, reflecting a comprehensive total across various segments[18] - The group's associated companies had total liabilities of HKD 5,901,984,000 as of December 31, 2022[52] Cash Flow and Investments - Net cash outflow from investing activities was HKD 123,730,000, compared to HKD 479,523,000 in the previous year, indicating a significant reduction in cash outflow[8] - Cash and cash equivalents as of December 31, 2022, were HKD 641,322,000, slightly up from HKD 633,558,000 in the previous year[8] - The group’s financing activities resulted in cash outflow of HKD 13,253,000, which is comparable to HKD 13,542,000 in the prior year[8] - The group incurred a net loss of HKD 184,815,000 from the revaluation of investment properties[14] Foreign Exchange and Interest - The company reported a significant foreign exchange loss of HK$282.79 million due to the translation of overseas financial statements[6] - Interest income for the six months ended December 31, 2022, was HKD 16,399,000, significantly higher than HKD 1,869,000 in 2021, marking an increase of approximately 775.5%[19] Dividends and Shareholder Value - The company declared an interim dividend of HKD 0.10 per share and a special dividend of HKD 1.00 per share for the year ending June 30, 2023, totaling HKD 1.10 per share[34] - The company’s dividend policy aims to balance regular dividend payments and retaining sufficient cash reserves for reinvestment[34] - The board will continue to seek opportunities to enhance shareholder value[43] Market Outlook and Economic Conditions - The global economic outlook remains uncertain due to geopolitical tensions and rising interest rates, but China's reopening is expected to boost recovery, with global growth projected to decline from 3.4% in 2022 to 2.9% in 2023[41] - The group anticipates a recovery in the retail leasing market starting in 2023, with positive impacts on the Hong Kong office market expected in the second half of 2023[42] Corporate Governance and Compliance - The group has complied with the corporate governance code, except for the establishment of an internal audit function, which the board deems unnecessary given the current structure and scale[55] - The independent review report confirmed that the interim financial report was prepared in accordance with HKAS 34 without any significant issues[60]

Financial Performance - The company reported a significant increase in revenue for the fiscal year ending June 30, 2022, with total revenue reaching HKD 1.2 billion, representing a 15% year-over-year growth[6]. - The net profit for the same period was HKD 300 million, which is a 20% increase compared to the previous year[6]. - The group's profit attributable to shareholders after tax was HKD 72 million, a significant improvement from a loss of HKD 18 million in the previous year[24]. - The group's operating profit for the year was HKD 47 million, compared to HKD 95 million in the previous year, primarily due to declines in exchange gains, interest income, and rental income[24]. - The company reported a comprehensive financial performance reflecting its financial position as of June 30, 2022, in accordance with Hong Kong Financial Reporting Standards[114]. - The independent auditor, KPMG, confirmed that the financial statements present a true and fair view of the group's financial status and performance for the year ended June 30, 2022[114]. - The company reported a total comprehensive income of HKD 120,931,000 for the year ending June 30, 2022, compared to a loss of HKD 144,046,000 in the previous year[133]. - The company reported a net loss for the year of HKD 17,922,000, compared to a profit of HKD 72,347,000 in the previous year[133]. Dividends and Shareholder Returns - The company declared a final dividend of HKD 0.50 per share for the fiscal year, maintaining a stable dividend policy[6]. - The company has proposed a final dividend of HKD 0.10 per share and a special dividend of HKD 1.70 per share for the fiscal year ending June 30, 2022, pending shareholder approval[12]. - The first interim dividend of HKD 0.10 per share was paid on June 24, 2022, and the second interim dividend of HKD 0.30 per share is scheduled for October 20, 2022[12]. - The company aims to declare dividends three times a year based on after-tax recurring income, with special dividends considered from other profits[11]. - Total dividends declared for the year amounted to HKD 49,839,000, reflecting a decrease from HKD 423,693,000 in the prior year[136]. Corporate Governance and Leadership - The board of directors has been re-elected, including Dr. Henry Yan as Chairman and Fritz Helmreich as a director, ensuring continuity in leadership[7]. - The board of directors consists of seven members, including independent non-executive directors[10]. - The company confirms the independence of its non-executive directors as per the Securities Listing Rules[12]. - The company appointed a new CEO, Mr. Ong Shun Lai, effective January 3, 2022, following the tenure of Mr. Yuen Yiu Tat as acting CEO until January 2, 2022[81]. - The nomination committee was established on February 21, 2022, to review the board's structure and recommend changes, consisting entirely of independent non-executive directors[84]. - The company is committed to appointing at least one female director by December 31, 2024, to enhance board diversity[85]. - The board ensures that at least one-third of its members are independent non-executive directors to maintain independent viewpoints[82]. Market Expansion and Strategic Initiatives - The company plans to expand its market presence by increasing its fleet size by 10% in the next fiscal year to meet growing demand[6]. - The company is investing in new technology to enhance operational efficiency, with a budget allocation of HKD 50 million for R&D in the upcoming year[6]. - The company is exploring potential mergers and acquisitions to diversify its service offerings and strengthen its market position[6]. - The management provided a positive outlook for the next fiscal year, expecting a revenue growth of 10-15% driven by increased demand and operational improvements[6]. - The group will continue to seek quality investment opportunities during market adjustments[34]. Environmental, Social, and Governance (ESG) Practices - The company emphasized its commitment to environmental sustainability, with plans to introduce electric buses into its fleet by 2023[6]. - The ESG report covers the performance and activities of the company and its subsidiaries from July 1, 2021, to June 30, 2022[38]. - The report emphasizes the importance of stakeholder communication to understand sustainability concerns and improve performance[41]. - The governance framework is crucial for effective ESG management, with the board responsible for policy formulation and oversight[44]. - The company engages with stakeholders through various channels, including annual general meetings and reports, to address their concerns[46]. - The group is committed to understanding and improving its environmental, social, and governance (ESG) practices as part of its sustainable development approach[52]. Financial Position and Assets - As of June 30, 2022, the group had cash and cash equivalents of HKD 773 million, down from HKD 1.12 billion in the previous year, mainly due to payments related to the Chai Wan project[25]. - The group had no bank borrowings as of June 30, 2022, maintaining a strong liquidity position[25]. - The group's investment properties in Hong Kong and the UK have a total fair value of HKD 2.364 billion, accounting for 30% of the group's total assets as of June 30, 2022[117]. - The group's share of investments in joint ventures amounted to HKD 2.856 billion, representing 36% of the group's total assets as of June 30, 2022[117]. - The total assets as of June 30, 2022, were HKD 7,918,391,000, down from HKD 8,131,310,000 in 2021[127]. Employee and Labor Practices - Total employee costs for the group, including salaries and bonuses, are detailed in the financial statements[21]. - The company has a comprehensive human resources policy that complies with applicable laws and regulations, ensuring no discrimination in employment practices[60]. - The total number of employees in the UK increased from 1 in 2021 to 16 in 2022, with 14 being full-time and 3 part-time[61]. - The percentage of trained employees by gender in 2022 was 38% for males and 100% for females, compared to 25% and 0% in 2021 respectively[64]. - The company has implemented measures to ensure compliance with labor laws, with no violations reported regarding child labor or forced labor during the reporting period[65]. Risk Management and Compliance - The board is responsible for evaluating and determining the nature and extent of risks acceptable to the company in achieving strategic objectives[89]. - The company has mechanisms in place to monitor compliance with legal and regulatory changes affecting its business[81]. - The audit committee is responsible for reviewing financial information and overseeing the company's financial controls and risk management systems[87]. - The company has established a whistleblowing system to encourage reporting of any suspected misconduct, ensuring protection against retaliation for whistleblowers[94]. - The group maintains a credit policy to manage potential credit risks effectively[189].

Financial Performance - The company reported a consolidated profit of HK$31.12 million for the six months ended December 31, 2021, compared to a loss of HK$58.75 million for the same period in 2020, marking a significant turnaround[2]. - Consolidated operating revenue for the six months ended December 31, 2021, was HK$36.80 million, down 11.5% from HK$41.41 million in the previous year[3]. - The company achieved a consolidated operating profit of HK$22.74 million, a decrease of 62.9% from HK$61.31 million in the same period last year[3]. - The earnings per share for the period was HK$0.69, compared to a loss per share of HK$1.30 in the previous year[3]. - Total comprehensive income for the period was HK$4.50 million, down from HK$62.51 million in the same period last year[4]. - The company reported a foreign exchange loss of HK$158.49 million due to the translation of overseas financial statements[6]. - The company’s financial income for the six months ended December 31, 2021, was HK$3.57 million, a significant decrease from HK$38.80 million in the previous year[3]. - The group reported a total revenue of HKD 77,492,000 for the period ending December 31, 2021, compared to HKD 61,309,000 for the same period in 2020, reflecting a significant increase[18]. - The group incurred a net loss before tax of HKD 49,559,000, compared to a loss of HKD 63,762,000 in the previous year[18]. Assets and Liabilities - Non-current assets as of December 31, 2021, amounted to HK$6.53 billion, an increase from HK$5.65 billion as of June 30, 2021[5]. - The company's total equity decreased to HK$7.99 billion from HK$8.08 billion as of June 30, 2021[5]. - The company’s total liabilities increased to HK$126.58 million from HK$48.59 million as of June 30, 2021[5]. - The company’s total assets as of December 31, 2021, amounted to HKD 8,169,886,000, with property development and investment assets at HKD 6,421,214,000[15]. - The group’s total assets amounted to HKD 8,179,896,000, with property development and investment contributing HKD 5,532,201,000[18]. - The total liabilities included non-current liabilities of HKD 5,724,938,000 and current liabilities of HKD 68,341,000, indicating a significant leverage position[48]. Cash Flow - Operating cash inflow for the six months ended December 31, 2021, was HKD 20,022,000, a decrease of 30.5% from HKD 28,953,000 in 2020[8]. - Net cash inflow from operating activities after tax payments was HKD 14,651,000, down from HKD 20,297,000, reflecting a decline of 27.8%[8]. - The company reported a total cash and cash equivalents balance of HKD 633,558,000 as of December 31, 2021, down from HKD 1,119,748,000 in 2020, a decline of 43.4%[8]. - The company’s net cash outflow from investment activities was HKD 479,523,000 for the six months ended December 31, 2021, compared to HKD 247,136,000 in 2020, indicating increased investment expenditures[8]. Dividends and Shareholder Value - The company declared an interim dividend of HKD 0.10 per share and a special dividend of HKD 1.00 per share for the year ending June 30, 2022, totaling HKD 1.10 per share[35]. - The company plans to balance regular dividend payments with retaining sufficient cash reserves for reinvestment to enhance shareholder value[35]. - The company’s policy is to determine dividend levels based on after-tax recurring income, with special dividends considered for other profits after evaluating reinvestment opportunities[35]. Development Projects - The company has ongoing development projects, including a residential and commercial project in Chai Wan with a total construction area of approximately 64,500 square meters[38]. - The company completed site preparation and related works for its Chai Wan development project, with land purification and foundation works currently in progress[38]. - The reconstruction of the Chai Wan bus depot, in which the group holds a 20% stake, is progressing as planned, with foundation works underway[41]. Market Conditions - The Hong Kong economy is projected to grow by 6.4% in 2021, but the growth rate for 2022 is uncertain due to the impact of the Omicron variant, inflation, and geopolitical issues[41]. - The local property market showed signs of stabilization before the fifth wave of COVID-19, with a slowdown in rental declines in the office market[41]. Corporate Governance - The board believes that the company has complied with the corporate governance code, except for the absence of a nomination committee, which is managed by the board itself[50]. - The independent review report confirmed that the interim financial report was prepared in accordance with the relevant provisions of the Listing Rules and Hong Kong Accounting Standards[51]. - No significant issues were found that would indicate the interim financial report was not prepared in accordance with the relevant accounting standards[53].

Financial Performance - The company reported a net profit of HKD 1.2 billion for the fiscal year ending June 30, 2021, representing a 15% increase compared to the previous year[5]. - The total revenue for the same period was HKD 5.5 billion, reflecting a growth of 10% year-over-year[5]. - The company reported a loss attributable to shareholders of HKD 18 million, compared to a profit of HKD 111 million in 2020, primarily due to revaluation losses on investment properties[30]. - Rental income for the year was HKD 78 million, down from HKD 83 million in 2020, reflecting a decline in occupancy rates due to weak market demand and competition[30]. - The company’s operating profit for the year was HKD 95 million, compared to HKD 91 million in the previous year, mainly due to higher foreign exchange gains[30]. - The company reported a net loss attributable to shareholders of HKD 17,922,000, compared to a profit of HKD 111,495,000 in 2020, representing a significant decline[116]. - The operating profit for the year was HKD 95,291,000, an increase of 4.9% from HKD 90,792,000 in 2020[116]. - The company recognized a net revaluation loss of investment properties amounting to HKD 17,376,000, compared to a loss of HKD 216,170,000 in the previous year[116]. - The company’s total comprehensive income for the year attributable to shareholders was HKD 120,931,000, compared to HKD 71,065,000 in 2020, showing an improvement[117]. Dividends and Shareholder Returns - The company declared a final dividend of HKD 0.50 per share for the fiscal year, maintaining the same level as the previous year[5]. - The company has proposed a final dividend of HKD 0.10 per share and a special dividend of HKD 1.70 per share for the fiscal year ending June 30, 2021, subject to shareholder approval[14]. - The first interim dividend of HKD 0.10 per share and a special dividend of HKD 1.00 per share were distributed on June 23, 2021[14]. - The second interim dividend of HKD 0.30 per share is scheduled for distribution on October 21, 2021[14]. - The company aims to distribute dividends three times a year, balancing regular dividends and cash reserves for reinvestment[14]. - The board proposed a final dividend of HKD 0.10 per share and a special dividend of HKD 1.70 per share, totaling HKD 3.20 per share for the year, compared to HKD 27.50 per share in the previous year[97]. Market Strategy and Expansion - The company plans to expand its market presence in Southeast Asia, targeting a 20% increase in market share over the next two years[5]. - New product launches are expected to contribute an additional HKD 500 million in revenue in the upcoming fiscal year[5]. - The company plans to focus on the redevelopment of Lot 88 in Chai Wan, with a land premium of slightly over HKD 900 million expected to be paid in the fiscal year ending June 30, 2022[39]. - The company will seek quality investment opportunities during the adjustment period of the real estate market[39]. - The company is cautiously considering new investment opportunities while exploring other ways to enhance shareholder value[101]. Sustainability and ESG Initiatives - The board emphasized a commitment to sustainable practices, aiming for a 30% reduction in carbon emissions by 2025[5]. - The ESG report covers the performance and activities of the group in environmental, social, and governance aspects for the period from July 1, 2020, to June 30, 2021[43]. - The report emphasizes the importance of stakeholder communication to understand sustainability concerns and improve performance[46]. - The group prioritizes sustainability management strategies in property investment, focusing on resource usage, employee health and safety, labor standards, and anti-corruption[54]. - The group has established emergency procedures to handle extreme weather events and their impact on daily operations[63]. Corporate Governance - The board of directors includes independent non-executive directors, ensuring compliance with independence standards[15]. - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange listing rules and has complied with its provisions[78]. - The audit committee held three meetings during the fiscal year, with all members present at each meeting[88]. - The remuneration committee held two meetings during the fiscal year, with all members attending both[87]. - The board confirmed that the preparation of the group's financial statements is the responsibility of the directors[91]. Financial Position and Assets - The company held cash and cash equivalents of HKD 1.121 billion as of June 30, 2021, down from HKD 1.309 billion in 2020[31]. - The company has no bank borrowings or issued debt capital as of June 30, 2021[32]. - The fair value of the investment properties held by the group amounted to HKD 25.25 billion, representing 31% of the total assets as of June 30, 2021[110]. - The net asset value of the group's share in joint ventures was HKD 15.15 billion, accounting for 19% of total assets as of June 30, 2021[110]. - The total assets as of 2021 amounted to $8,179,896,000, a decrease from $8,478,242,000 in 2020, representing a decline of about 3.5%[147]. Employee and Labor Practices - Total employee costs for the group, including salaries, bonuses, social insurance, and provident fund, are detailed in the financial statements[26]. - The employee turnover rate for male employees was 10.53%, while for female employees it was 5.26% during the reporting period[65]. - The company reported a training percentage of 25% for male employees and 0% for female employees in the reporting period[68]. - Senior management received an average of 14.50 hours of training, while non-management employees received 0 hours[68]. - The company has established a recruitment policy to ensure compliance with age requirements and prevent child labor[70]. Risk Management and Compliance - The company has no significant transactions or contracts that would give directors a substantial interest[24]. - The company did not grant any share purchase rights to directors or senior executives during the year[20]. - The company has not identified any significant risks related to environmental protection issues, such as air and greenhouse gas emissions, during its daily operations[57]. - The company has implemented measures for shareholder meetings in response to the ongoing COVID-19 pandemic, including temperature checks and mask requirements[10]. - The company has no external capital restrictions imposed by any external parties, maintaining flexibility in capital management[195].