Revenue and Profit Performance - Revenue for the six months ended December 31, 2023, was HKD 38,307 thousand, compared to HKD 39,606 thousand in the same period in 2022[5] - Total revenue for the six months ended December 31, 2023, was HKD 38,307,000, a 3% decrease compared to HKD 39,606,000 in the same period last year[81] - Gross profit for the period was HKD 24,914 thousand, down from HKD 26,934 thousand in 2022[5] - Gross profit for the period was HKD 24,914,000, down 7% from HKD 26,934,000 in the previous year, with a gross margin of 65% compared to 68% last year[81] - Profit before tax for the six months ended December 31, 2023, was HKD 12,615,624 thousand, a significant increase from HKD 312 thousand in 2022[5] - Net profit for the period was HKD 5,365,934 thousand, compared to HKD 1,733 thousand in 2022[5] - The company recorded a profit before tax of HKD 12,615,624 thousand, with a significant contribution from joint venture profit sharing of HKD 12,635,773 thousand[19] - The group's profit attributable to shareholders was HKD 5,365,693,000, with basic earnings per share of HKD 22.57, compared to HKD 1,476,000 and HKD 0.62 in 2022[61] - The company's total comprehensive income for the period was HKD 5,437,572 thousand, with a profit attributable to owners of the company of HKD 5,365,693 thousand[14] - The company's total comprehensive income attributable to shareholders was HKD 5,436,647,000, compared to a total comprehensive loss of HKD 88,954,000 last year[83] - Basic earnings per share for the period were HKD 2,257.30[14] - The weighted average number of ordinary shares used to calculate basic earnings per share was 237,703,681[30] Asset and Equity Changes - Total assets as of December 31, 2023, were HKD 15,024,355 thousand, up from HKD 2,273,480 thousand as of June 30, 2023[10] - Development properties increased to HKD 12,855,598 thousand as of December 31, 2023, from HKD 0 as of June 30, 2023[9] - Investment properties increased slightly to HKD 1,860,753 thousand as of December 31, 2023, from HKD 1,840,814 thousand as of June 30, 2023[9] - Total equity as of December 31, 2023, was HKD 7,460,669 thousand, up from HKD 2,024,286 thousand as of June 30, 2023[10] - Deferred tax liabilities increased significantly to HKD 7,543,949 thousand as of December 31, 2023, from HKD 234,029 thousand as of June 30, 2023[10] - The company's equity attributable to owners amounted to RMB 6,724,629,000 as of December 31, 2023, with a net asset value per share of RMB 28.29 (approximately HKD 31.22)[91] - The company's net current assets amounted to HKD 13,154,091,000 as of December 31, 2023, with a current ratio of 74.81, compared to HKD 346,741,000 and a current ratio of 3.82 as of June 30, 2023[110] - The company's bank balances and cash, including bank time deposits, totaled HKD 450,822,000 as of December 31, 2023, compared to HKD 212,955,000 as of June 30, 2023[110] - The company has no bank borrowings as of December 31, 2023, resulting in a debt-to-equity ratio of 0%[91] - The company has fully repaid all bank financing, releasing collateral with a total book value of HKD 771,336,000 as of December 31, 2023[97] - The company maintains an unused credit facility of HKD 1,000,000 as of December 31, 2023, for liquidity purposes[110] Investment Properties and Development - Development properties are accounted for at the lower of cost and net realizable value, with cost including land cost, development expenses, and other attributable costs[13] - The company's investment property portfolio primarily includes office buildings, residential and commercial units, and parking lots in Shanghai and Beijing, with property development focused on Shenzhen[44] - The company acquired the land use rights for a plot near Dongjiaotou, Nanshan District, Shenzhen, which is intended for development as a property for sale, classified under a new operating segment[44] - The company signed a memorandum of understanding (MOU) with a joint venture partner on April 14, 2023, agreeing to a land swap with the Shenzhen Planning and Natural Resources Bureau, dividing the new land into two parcels allocated to the company and the joint venture partner[36] - The company signed a land use rights transfer contract with the planning bureau on December 14, 2023, for the allocation of land parcel K709-0003 to its subsidiary, Dynamic (B.V.I.) Limited[55] - The company's joint venture, Shenzhen Zhenhua Port Enterprise Co., Ltd., had its compulsory liquidation withdrawn by court order on May 4, 2023[53] - The company's joint venture partner and the planning authority signed land use right transfer contracts for allocated land parcels in Shenzhen[66] - The company allocated land (K709-0003) covers an area of approximately 65,000 square meters with a developable construction area of 179,000 square meters, including 143,000 square meters for residential use and 29,000 square meters for commercial use[88] - The fair value gain of the allocated land was confirmed at RMB 11,537,708,000 (approximately HKD 12,629,669,000) during the review period, leading to a profit of RMB 11,543,284,000 (approximately HKD 12,635,773,000) for the company[89] - The company's development properties are expected to incur significant development costs, to be funded by internal resources, bank financing, and other applicable methods[110] Rental Income and Property Leasing - Rental income from properties included variable lease payments of HKD 1,036,000, with the remaining amounts being fixed lease payments[45] - The company's rental income in Shanghai accounted for 61% of total revenue, down from 66% in 2022, due to increased office supply and economic challenges[64] - The average occupancy rate of the "Yujing International Business Plaza" in Shanghai was 86%, with rental income of RMB 21,407,000 (HKD 23,433,000), a decrease of 8% compared to the previous year[64] - The company's investment properties in Beijing and Shanghai generated rental income of RMB 34,995,000, a slight decrease of 1% compared to RMB 35,432,000 last year[85] - Average occupancy rate of the shopping mall in Chaoyang District, Beijing increased to 85% (2022: 79%)[118] - Rental income from the shopping mall reached RMB 13,588,000 (HKD 14,874,000), a 11% increase compared to the previous year[118] - Rental income accounted for 39% of the company's total revenue (2022: 34%)[118] - Profit from the property leasing segment was RMB 4,611,000 (HKD 5,048,000), up from RMB 4,355,000 (HKD 4,868,000) in 2022[118] - Basic profit excluding fair value changes and related tax impacts was RMB 6,894,000 (HKD 7,547,000), compared to RMB 6,655,000 (HKD 7,439,000) in 2022[118] Fair Value and Investment Property Adjustments - The fair value of investment properties increased by HKD 1,840,814 as of July 1, 2023, and further adjustments resulted in a total fair value of HKD 1,860,753 as of December 31, 2023[37] - The group recorded a net loss of HKD 24,000 in other income, gains, or losses, compared to a gain of HKD 6,582,000 in 2022, primarily due to a decrease in fair value of investment properties by HKD 13,338,000[60] - The company recorded a net fair value loss of HKD 13,338,000 on investment properties, compared to HKD 10,812,000 in the same period last year[75] - The fair value of investment properties in Shanghai decreased by RMB 9,902,000 (HKD 10,839,000), with a profit of RMB 5,763,000 (HKD 6,309,000) excluding fair value changes and related tax impacts[64] - The fair value of investment properties in Beijing and Shanghai decreased by RMB 12,185,000 (equivalent to HKD 13,338,000), compared to RMB 9,673,000 (equivalent to HKD 10,812,000) last year[85] - Fair value of investment properties decreased slightly by RMB 2,283,000 (HKD 2,499,000)[118] - The company recognized a significant fair value gain of HKD 12,635,773,000 from the distribution of land by a joint venture[82] Tax and Financial Adjustments - Current China income tax (excluding Hong Kong) was HKD 2,380 thousand, with deferred tax credits of HKD 7,247,310 thousand[26] - The company's deferred tax liability increased due to the fair value gain on land allocation, which will be paid upon the development and sale of the related property[80] - The company's other comprehensive income was HKD 71,638,000, driven by a 1.71% appreciation of RMB against HKD, compared to a 4.5% depreciation last year[83] - The company recorded a net exchange gain of HKD 4,097,000 due to the depreciation of RMB against HKD during the review period[91] - The group's financial performance was impacted by a net exchange gain of HKD 4,097,000 due to the appreciation of the Hong Kong dollar against the RMB[60] Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.5 per share, totaling HKD 1,189,000[29] - The company declared an interim dividend of HKD 0.5 cents per share for the six months ended December 31, 2023, the same as the previous year[105] Legal and Administrative Matters - A former tenant filed multiple administrative lawsuits against the relocation compensation agreement signed in 2021, and the case is currently under appeal[119] - Trade and other payables increased to HKD 3,459,000 as of December 31, 2023, compared to HKD 2,150,000 as of June 30, 2023, with an additional provision for tenant relocation compensation of HKD 51,905,000[58] Joint Ventures and Partnerships - The company is entitled to 80% of the profit from the redevelopment of a land parcel in Shenzhen, China, as per a 2010 arbitration award[35] - Shenzhen Zhenhua Bay Enterprise Co., Ltd. repaid the group HKD 230,564,000 for land price advances and interest, funded by the joint venture partner[68] - The company's receivable from a joint venture was largely settled during the interim period, with a remaining balance of HKD 2,165,000 as of December 31, 2023[104] - The company's share of profit from a joint venture, Shenzhen Hua, was HKD 10,368,000 as of December 31, 2023, the same as June 30, 2023[103] Market Outlook and Strategy - The company expects continued challenges in the Shanghai office market due to increased supply and weak demand, but plans to implement competitive leasing strategies to maintain occupancy rates[94] - The Shenzhen real estate market is expected to recover and grow, supported by strong economic and population fundamentals, which will enhance the development value of the company's allocated land in Nanshan District[95] - The company plans to further develop the retail market in Beijing through new brands and environmental upgrades to enhance the consumer atmosphere[107] Other Income and Expenses - Other income, gains, and losses included bank deposit interest income of HKD 2,490 thousand and exchange gains of HKD 4,097 thousand[24] - The company paid and recognized a replacement cost of HKD 1,360,000 for new investment properties during the interim period[47] - The company's investment cost for non-listed acquisitions and profit (loss) allocation and reserves was HKD 74,386 as of December 31, 2023, compared to HKD 210,790 as of June 30, 2023[102]

Financial Performance - As of June 30, 2023, the equity attributable to owners amounted to RMB 1,830,193,000, with a net asset value per share of RMB 7.70[15]. - The Group reported a profit of RMB34,332,000 from property rental, down from RMB37,222,000 in the previous year, primarily due to decreased fair value and rental income[44]. - The profit attributable to shareholders for the year was HK$6,634,000, significantly down from HK$31,152,000 in 2022, with basic earnings per share of 2.8 Hong Kong cents[74]. - For the financial year ended June 30, 2023, the Group reported total revenue of HK$79,734,000, a decrease of approximately 8% compared to HK$86,892,000 in 2022[72]. - The gross profit for the same period was HK$54,752,000, down about 12% from HK$61,927,000 in 2022, resulting in a gross profit margin of approximately 69%[72]. Liquidity and Financial Position - Total bank borrowings of the Group were nil, down from HK$ 91,833,000 as of June 30, 2022, resulting in a gearing ratio of nil compared to 4.3% in the previous year[15]. - The Group's net current assets increased to HK$ 346,741,000, with a current ratio of 3.82, up from 1.48 as of June 30, 2022[16]. - The bank balance and deposits stood at HK$ 212,955,000, down from HK$ 286,481,000 as of June 30, 2022[16]. - The group maintained a debt ratio of 0% as of June 30, 2023, compared to 4.3% on June 30, 2022, indicating no bank borrowings[29]. Exchange and Currency Impact - The Group reported a net exchange loss of HK$ 10,408,000 due to the depreciation of RMB against HKD, compared to HK$ 2,526,000 in the previous year[15]. - The total comprehensive expense from exchange differences amounted to HK$ 156,787,000, compared to HK$ 60,881,000 in the previous year[15]. - The depreciation of RMB against HKD was 7.8% during the year, impacting the Group's financial results[75]. - The Group will continue to monitor the impact of RMB fluctuations to mitigate negative effects on financial performance[29]. Real Estate Market and Rental Income - The Group's rental income from investment properties in Shanghai and Beijing totaled RMB71,093,000, a slight decrease of 1% compared to RMB71,978,000 in the previous year[43]. - The overall revenue from property rental in mainland China decreased due to a drop in fair value of investment properties and reduced rental income, translating to a total revenue of HK$79,734,000, down from HK$86,892,000[43]. - The average occupancy rate in Beijing remained stable at 78%, with rental income decreasing by about 10% to RMB24,108,000 from RMB26,675,000[46]. - In Shanghai, the average occupancy rate improved to 89%, with rental income increasing by 4% to RMB46,986,000 from RMB45,303,000[47]. - The fair value of investment properties in Beijing decreased by RMB13,325,000, while in Shanghai, it depreciated by RMB6,883,000[46][47]. Corporate Governance - The Board of Directors consists of six Executive Directors and four Independent Non-executive Directors, with the latter representing more than one-third of the Board[110]. - The Company has established an Internal Corporate Governance Code to facilitate compliance with the Corporate Governance Code and guide Directors and senior management[111]. - The Board is responsible for setting corporate objectives, monitoring performance, and ensuring sound corporate governance and risk management[112]. - The Company has continuously reviewed and enhanced its corporate governance practices, contributing to business growth and sustainability[109]. - The Company has adhered to the principles and code provisions of the Corporate Governance Code as set out in the Listing Rules[109]. Strategic Initiatives and Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10-12% driven by new product launches and market expansion strategies[108]. - The company is exploring market expansion opportunities in Southeast Asia, targeting a 25% increase in market share within the next two years[108]. - The management team emphasized the importance of sustainability in their new strategies, aiming for a 30% reduction in carbon emissions by 2025[108]. - The Group plans to actively adjust leasing and marketing strategies to maintain occupancy rates and recurring revenues amid a sluggish retail market in Beijing[22]. - The Group plans to implement competitive leasing strategies to attract new tenants and retain existing ones amid sluggish leasing activity in core business districts[55].

Financial Performance - The gross profit for the year ended June 30, 2023, was HKD 54,752,000, a decrease of 11.4% from HKD 61,927,000 in 2022[1]. - The total comprehensive expenses for the year amounted to HKD (149,540,000), significantly higher than HKD (30,197,000) in the previous year[3]. - The pre-tax profit for the year was HKD 1,006,000, down 86.1% from HKD 7,233,000 in 2022[2]. - The company's net profit attributable to owners was HKD 7,247,000, a decline of 76.4% compared to HKD 30,684,000 in the prior year[14]. - The total revenue for the year was HKD 79,734,000, down 8.2% from HKD 86,892,000 in 2022[13]. - The financing costs increased to HKD 3,133,000 from HKD 1,857,000, representing a rise of 68.5%[1]. - The company's total equity attributable to owners was HKD 1,985,068,000, down from HKD 2,134,562,000 in 2022[7]. - The cash and cash equivalents at the end of the period were HKD 130,020,000, a decrease from HKD 188,107,000 in the previous year[17]. - The company reported a significant foreign exchange loss of HKD (156,787,000) compared to HKD (60,881,000) in the prior year[14]. - The group's overall performance showed a loss of HKD 5,513,000 in 2023 compared to a loss of HKD 38,818,000 in 2022, reflecting an improvement in financial results[32]. - The group reported an operating loss of HKD 40,365,000 in 2023, slightly better than the loss of HKD 42,257,000 in 2022[32]. - The deferred tax expense for the current year was HKD 3,663,000, compared to HKD 6,565,000 in the previous year, indicating a decrease of approximately 44.5%[35]. - The total comprehensive income for the year was impacted by a lack of taxable profits, resulting in no provision for Hong Kong profits tax[35]. Joint Ventures and Investments - The loss from joint ventures was HKD 3,449,000, a significant improvement from HKD 11,661,000 in the previous year[1]. - The group's share of losses from joint ventures was HKD 3,449,000 in 2023, down from HKD 11,661,000 in 2022, showing a significant reduction of about 70.5%[32]. - The group holds a 49% equity interest in a joint venture, with profits distributed based on the equity method, amounting to HKD 10,368,000 for the current year[64]. - The group has invested RMB 42,840,000 in a joint venture, representing 80% of the equity interest in the venture[63]. - The group’s investment cost is reported at HKD 210,790,000, with post-acquisition losses and reserves allocated at HKD (128,459,000)[61]. - The group has not recognized additional profits from the joint venture due to pending agreements with local authorities regarding land swaps[65]. Property and Rental Income - For the fiscal year ending June 30, 2023, property rental income was HKD 2,609,000, an increase from HKD 2,475,000 in 2022, representing a growth of approximately 5.4%[30]. - The group's rental income from investment properties was RMB 34,332,000 (HKD 38,505,000), down from RMB 37,222,000 (HKD 44,935,000) in the previous year, reflecting a decline due to economic downturn and reduced rental income[90]. - Rental income from the community shopping mall in Beijing was RMB 24,108,000, a decrease of approximately 10% compared to RMB 26,675,000 in the previous year, representing 34% of total revenue[111]. - The average occupancy rate of the "Yujing International Business Plaza" in Shanghai was approximately 89%, up from 87% in the previous year, with total rental income of RMB 46,986,000 (HKD 52,697,000), representing a 4% increase year-on-year[91]. - The average occupancy rate for the shopping mall in Beijing remained stable at 78%, unchanged from the previous year[111]. Dividends and Shareholder Returns - The company declared a final dividend of HKD 0.005 per share for the year ending June 30, 2023, totaling HKD 1,189,000, compared to HKD 2,377,000 in 2022[37]. - The board proposed a final dividend of HKD 0.005 per share, totaling HKD 1,189,000, consistent with the previous year[57]. - The basic earnings per share for the year were HKD 0.028, down from HKD 0.131 in the previous year, with total attributable profit to shareholders of HKD 6,634,000 compared to HKD 31,152,000 previously[87]. Financial Position and Assets - The fair value of the company's investment properties was HKD 1,840,814,000 as of June 30, 2023, down from HKD 2,005,063,000 on June 30, 2022[78]. - The company's share of equity in joint ventures was HKD 82,331,000 as of June 30, 2023, a decrease from HKD 91,163,000 in the previous year[79]. - Trade receivables amounted to HKD 9,439,000 as of June 30, 2023, down from HKD 14,491,000 in the previous year, with a net allowance for credit losses of HKD 1,983,000[85]. - The company reported a debt ratio of 0% as of June 30, 2023, a significant decrease from 4.3% on June 30, 2022[77]. - The group has no bank borrowings as of June 30, 2023, compared to HKD 91,833,000 in borrowings on June 30, 2022[77]. - The group's current assets net value as of June 30, 2023, was HKD 346,741,000, significantly up from HKD 112,553,000 on June 30, 2022, with a current ratio of 3.82 compared to 1.48 the previous year[118]. Market Outlook and Strategies - The group anticipates that the Chinese government will implement urgent policies and aggressive monetary measures to stabilize the economy, which will support leasing activities in the office and retail sectors[99]. - The Shenzhen real estate market is expected to recover and maintain optimism due to strong economic fundamentals and favorable government policies aimed at promoting healthy development in the real estate sector[101]. - The group plans to actively adjust leasing and promotional strategies to maintain occupancy rates and regular income amid a recovering retail market in Beijing[120]. - In Shanghai, the group anticipates a prolonged recovery in leasing activity, with continued soft demand for office rentals in core business districts[121]. - The group is implementing competitive leasing strategies to attract new tenants and retain existing ones[120][121]. Governance and Compliance - The company has adhered to corporate governance principles as per the listing rules throughout the year[108]. - The company has not adopted new accounting standards that have been issued but are not yet effective, indicating a cautious approach to regulatory changes[24]. - The group’s financial statements are prepared in accordance with Hong Kong Accounting Standard 8, with no significant impact expected from the recent amendments[47].

Financial Performance - The total revenue for the six months ended December 31, 2022, was HKD 39,606,000, a decrease of approximately 8% compared to HKD 42,989,000 in the previous year[11]. - Gross profit for the same period was HKD 26,934,000, down about 10% from HKD 29,901,000, resulting in a gross margin of approximately 68% compared to 70% last year[11]. - The company recorded a net profit attributable to shareholders of HKD 1,476,000, significantly down from HKD 48,534,000 in the previous year, with basic earnings per share of HKD 0.0062 compared to HKD 0.2042[12]. - Total comprehensive expenses for the period amounted to HKD 92,204,000, compared to total comprehensive income of HKD 39,663,000 in the previous year[12]. - The profit before tax for the period was HKD 312,000, a sharp decline from HKD 60,389,000 in the previous year[83]. - The net profit for the period was HKD 1,733,000, down from HKD 49,118,000, representing a decrease of 96.5%[83]. - Total comprehensive income for the period was a loss of HKD 90,471,000, compared to a gain of HKD 88,781,000 in the previous year[83]. - Basic earnings per share decreased to HKD 0.62 from HKD 20.42, reflecting a significant drop in profitability[85]. Investment Properties - The fair value of investment properties decreased by HKD 10,812,000 during the period, contrasting with an increase of HKD 48,041,000 in the previous year[11]. - The company reported a loss from investment properties of HKD 10,812,000, compared to a gain of HKD 48,041,000 in the prior year[83]. - The fair value of investment properties decreased to HKD 1,910,697,000 as of December 31, 2022, down from HKD 2,005,063,000 on July 1, 2022, reflecting a net loss of HKD 10,812,000[138]. Rental Income - Rental income from investment properties in Shanghai and Beijing was RMB 35,432,000 (equivalent to HKD 39,606,000), showing stable income compared to RMB 35,499,000 (HKD 42,989,000) last year[14]. - The rental income from the shopping mall in Beijing decreased by about 10% to RMB 12,194,000 (HKD 13,631,000) compared to RMB 13,606,000 (HKD 16,477,000) last year[15]. - Rental income from property leasing was HKD 25,975,000 for the six months ended December 31, 2022, slightly down from HKD 26,512,000 in the same period of 2021[122]. - Rental income from related parties was HKD 467,000 for the six months ended December 31, 2022, down from HKD 528,000 in the same period of 2021[162]. Financial Position - The group's total equity attributable to owners was RMB 1,826,218,000 as of December 31, 2022, with a net asset value per share of RMB 7.70[27]. - The group's bank borrowings totaled approximately HKD 69,918,000, with a debt ratio of 3.4% as of December 31, 2022, down from 4.3% in June 2022[27]. - The group maintained a cash balance of HKD 282,386,000 as of December 31, 2022, with a current ratio of 1.56[29]. - Total equity as of December 31, 2022, was HKD 2,084,544,000, down from HKD 2,176,204,000 as of June 30, 2022[88]. - Non-current liabilities included lease liabilities of HKD 248,925,000, indicating a stable financial position despite the operational losses[88]. Cash Flow - The net cash generated from operating activities for the six months ended December 31, 2022, was HKD 13,708,000, compared to HKD 12,423,000 for the same period in 2021, representing an increase of 10.3%[109]. - The net cash used in investing activities was HKD 165,272,000, significantly higher than HKD 58,180,000 in the previous year, indicating increased investment activity[109]. - The net cash used in financing activities was HKD 24,579,000, compared to HKD 4,064,000 in the prior year, reflecting a substantial increase in financing outflows[109]. - The total cash and cash equivalents at the end of the period decreased to HKD 161,556,000 from HKD 239,661,000, a decline of 32.6%[109]. Management and Governance - The company has adopted the corporate governance code principles and complied with its provisions as of December 31, 2022[73]. - The audit committee reviewed the accounting standards and practices adopted by the group, ensuring compliance with financial reporting matters[76]. - The company employed around 50 staff members, including directors, as of December 31, 2022, with compensation aligned with current market levels[69]. - The total remuneration for key management personnel was HKD 1,859,000 for the six months ended December 31, 2022, compared to HKD 1,258,000 for the same period in 2021[165]. Future Outlook - The management anticipates a rebound in China's economy following the easing of pandemic restrictions, which is expected to boost leasing activities in office and retail sectors[48]. - In Beijing, the retail market is expected to improve with the lifting of zero-COVID policies, leading to better economic and consumer recovery[48]. - The outlook for the Shenzhen real estate market is optimistic due to strong economic fundamentals and supportive government reforms[51]. - The group plans to implement competitive leasing strategies, including renovations and rental subsidies, to attract new tenants and retain existing ones[48]. Joint Ventures and Liquidation - The group is actively working on land exchange matters related to the liquidation of its joint venture partner, Zhenhua, with a new land area of approximately 109,000 square meters designated for mixed-use development[22]. - The court has extended the liquidation period for Zhenhua by six months until July 2023[25]. - The joint venture, Shenzhen Qunhua, has ceased operations and is currently undergoing liquidation[149]. - The company recognized a net loss of HKD 10,368,000 from additional profit allocation in joint ventures, which has not been confirmed as of December 31, 2022[145].

Financial Performance - For the financial year ended 30 June 2022, the Group reported total revenue of HK$86,892,000, a slight increase from HK$86,719,000 in 2021[11]. - Gross profit for the year was HK$61,927,000, reflecting a 6% increase compared to HK$58,614,000 in the previous year, with a gross profit margin improvement to 71% from 68%[11]. - The profit attributable to shareholders was HK$31,152,000, a significant increase of approximately 321% from a loss of HK$14,065,000 in 2021, with basic earnings per share of HK$0.131[13]. - The overall revenue and results were primarily derived from property rental operations in mainland China, benefiting from improved infrastructure and stable business conditions before the pandemic resurgence[19]. - The significant rise in profit indicates a recovery trajectory for the Group following the previous year's losses[13]. Comprehensive Income and Expenses - The other comprehensive expense amounted to HK$60,881,000, compared to other comprehensive income of HK$198,816,000 in 2021, resulting in total comprehensive expense attributable to shareholders of HK$28,574,000[14]. - The Group's comprehensive expense due to exchange differences amounted to HK$60,881,000, compared to other comprehensive income of HK$198,816,000 in the previous year[30]. - The fair value decrease of investment properties recognized in profit or loss amounted to HK$1,006,000[136]. Investment Properties - The Group recognized a decrease in the fair value of investment properties totaling HK$17,223,000, down from HK$22,069,000 in the previous year[12]. - The fair value of the Group's investment properties depreciated by RMB14,267,000, translating to HK$17,223,000, compared to RMB18,800,000 in 2021[21]. - The Group's investment properties include shopping malls, car parks, and office units, with performance impacted by subdued market sentiment[21]. - As of June 30, 2022, the Group's investment properties amounted to HK$2,005,063,000, representing approximately 75% of the Group's total assets[198]. Rental Income - The rental income from investment properties in mainland China improved, contributing to the overall gross profit margin increase[11]. - The Group's rental income from investment properties in Shanghai and Beijing was RMB71,978,000, a decrease of 3% compared to RMB73,874,000 in 2021, with total revenue presented as HK$86,892,000[20]. - In Beijing, rental income from the community mall improved, totaling RMB26,675,000, a 7% increase year-on-year, accounting for 37% of total revenue[23]. - In Shanghai, rental income decreased by 7% to RMB45,303,000, representing 63% of total revenue, with an average occupancy rate of 87%[23]. Dividends - The Board has recommended a final dividend of 0.5 Hong Kong cents per share, down from 1 Hong Kong cent in 2021, resulting in a total dividend of 1 Hong Kong cent per share for the year[18]. - The total dividend is subject to approval at the upcoming annual general meeting scheduled for December 9, 2022[18]. - The Group's retained earnings available for distribution to shareholders amounted to HK$146,385,000 as of June 30, 2022[140]. Financial Position - As of June 30, 2022, the equity attributable to owners amounted to RMB 1,825,456,000, an increase from RMB 1,802,869,000 on June 30, 2021, with a net asset value per share of RMB 7.70[28]. - Total bank borrowings were approximately HK$ 91,833,000 as of June 30, 2022, down from HK$ 95,667,000 on June 30, 2021, with a gearing ratio of 4.3%[30]. - The net current assets amounted to HK$ 112,553,000 with a current ratio of 1.48 as of June 30, 2022, compared to 2.28 a year earlier[31]. Management and Governance - The Board of Directors comprises six Executive Directors and four Independent Non-executive Directors, ensuring more than one-third of the Board is independent[62]. - The Company has established an Internal Corporate Governance Code to facilitate compliance with the Corporate Governance Code[60]. - The Company has adopted a code for securities transactions by Directors, confirming compliance by all Directors for the year ended 30 June 2022[61]. - The Company has received annual written confirmations of independence from all Independent Non-executive Directors, affirming their compliance with independence guidelines[77]. Market Conditions and Risks - The resurgence of COVID-19 in Beijing is expected to impact retail market consumption and leasing demands, but recovery is anticipated once the pandemic is under control[36]. - The ongoing threat of COVID-19 has led to a slow economic recovery and a downward trend in rental performance, creating market uncertainty[131]. - The uncertain economic environment in China due to the COVID-19 pandemic may weaken customer spending power, adversely affecting the property leasing market[135]. Stakeholder Relations - The Group has established a close relationship with stakeholders, including shareholders, employees, and customers, to enhance collaboration[130]. - The Company maintains communication with shareholders through various channels, including annual general meetings and corporate communications on its website[105]. Audit and Compliance - The independent auditor's report confirms that the consolidated financial statements present a true and fair view of the Group's financial position as of June 30, 2022[193]. - The Audit Committee is responsible for reviewing the financial reporting system and the effectiveness of the audit process[94]. - The Group's risk management and internal control systems are continuously monitored and reviewed by the Board to ensure effectiveness[96].

Financial Performance - For the six months ended December 31, 2021, the total revenue was HKD 42,989,000, a slight increase of approximately 2% compared to HKD 42,337,000 in the previous year[14]. - Gross profit for the same period was HKD 29,901,000, reflecting a 1% increase from HKD 29,607,000 year-on-year, with a gross margin of approximately 70%[14]. - The net profit attributable to shareholders was HKD 48,534,000, a significant turnaround from a loss of HKD 34,086,000 in the previous year, resulting in a basic earnings per share of HKD 0.2042[15]. - The profit before tax for the six months ended December 31, 2021, was HKD 60,389,000, a significant recovery from a loss of HKD 63,973,000 in the previous year[49]. - The net profit for the period was HKD 49,118,000, compared to a loss of HKD 34,099,000 in the same period of 2020, marking a turnaround[49]. - Total comprehensive income for the period was HKD 88,781,000, down from HKD 138,116,000 in the previous year, reflecting a decrease of 35.73%[50]. - The company reported a basic earnings per share of HKD 20.42 for the period, compared to a loss per share of HKD 14.34 in the previous year[50]. Revenue and Income Sources - Other income for the period was HKD 11,926,000, down from HKD 19,384,000 in the previous year, primarily due to a decrease in foreign exchange gains[14]. - Rental income from investment properties in major cities (Shanghai and Beijing) totaled RMB 35,499,000, a decrease of approximately 4% from RMB 36,852,000 in the previous year[18]. - Rental income in Beijing increased to RMB 13,606,000, a 19% rise compared to RMB 11,460,000 in the previous year, contributing 38% to total revenue[19]. - Average occupancy rate in Shanghai's "Yujing International Business Plaza" was approximately 80%, with rental income decreasing to RMB 21,893,000, a 14% decline from RMB 25,392,000[20]. - The group's revenue for the six months ended December 31, 2021, was reported in thousands of HKD, with a significant increase in bank interest income to HKD 3,072,000 from HKD 2,499,000 in the previous year, representing a growth of 23%[65]. Investment Properties and Fair Value - The fair value of investment properties increased by HKD 48,041,000 during the period, compared to a decrease of HKD 84,669,000 in the previous year[14]. - The fair value of investment properties in Shanghai appreciated by RMB 32,941,000, compared to a depreciation of RMB 60,000,000 in the previous year, resulting in a profit of HKD 59,837,000[20]. - The fair value of investment properties increased to HKD 2,162,708,000 as of December 31, 2021, up from HKD 2,074,921,000, marking an increase of HKD 48,041,000[74]. - The group incurred a revaluation loss of HKD 84,669,000 in the previous year, contrasting with the current period's revaluation gain of HKD 48,041,000, highlighting improved asset performance[74]. Equity and Debt - The group's total equity attributable to owners was RMB 1,841,031,000 as of December 31, 2021, up from RMB 1,802,869,000 on June 30, 2021, with a net asset value per share of RMB 7.75[25]. - The group's debt ratio was 4.2% as of December 31, 2021, slightly down from 4.4% on June 30, 2021, calculated based on total liabilities relative to total equity[25]. - The company's cash and cash equivalents amounted to HKD 239,661,000, an increase from HKD 209,614,000 as of June 30, 2021[51]. - The group's net current assets were HKD 206,416,000 as of December 31, 2021, compared to HKD 198,291,000 as of June 30, 2021, maintaining a current ratio of 2.28[26]. Operational Challenges and Market Outlook - The group anticipates challenges in China's economic growth due to COVID-19 outbreaks, real estate market downturns, and global economic risks, but expects government measures to support demand in office and retail leasing[28]. - The upcoming 2022 Winter Olympics in Beijing is expected to boost retail activity, while policies affecting tutoring centers may suppress rental income and occupancy rates[28]. - In Shanghai, competition for office space is expected to intensify, impacting rental income and occupancy rates, despite new metro lines enhancing leasing positions[29]. - Shenzhen's real estate market outlook remains optimistic due to economic reforms and government support, which may enhance the value of new land developments[30]. Legal and Compliance Matters - The group is actively monitoring the administrative litigation related to land transfer compensation agreements, with ongoing legal proceedings[24]. - The group will continue to monitor and seek legal advice regarding the liquidation of its subsidiary, Zhenhua, which may involve complex legal proceedings[31]. - The company adhered to the corporate governance code principles as of December 31, 2021, with a noted deviation regarding the attendance of the chairman at the annual general meeting due to travel restrictions[43]. Shareholder Information - The company declared an interim dividend of HKD 0.005 per share, down from HKD 0.01 per share in the previous year[16]. - As of December 31, 2021, the total number of issued shares was 237,703,681, with Zedra Asia Limited holding 89,321,279 shares, representing 37.58% of the total equity[37]. - The weighted average number of ordinary shares used for calculating basic earnings per share remained constant at 237,703,681 shares for both periods[73]. Management and Employee Information - The company employed approximately 50 staff members, including directors, with compensation aligned with current market levels, including benefits such as medical insurance and provident fund plans[40]. - The total compensation for key management personnel was HKD 1,258,000, down from HKD 1,428,000 for the same period last year, a decrease of 11.9%[89].

Financial Performance - For the financial year ended 30 June 2021, the Group reported total revenue of HK$86,719,000, a decrease of approximately 6% compared to HK$92,054,000 in 2020[12]. - Gross profit for the same period was HK$58,614,000, down about 11% from HK$65,587,000 in 2020, with a gross profit margin of 68% (2020: 71%) due to reduced rental income from investment properties in mainland China[12][9]. - Other income increased to HK$32,419,000 from HK$16,180,000 in 2020, primarily driven by imputed and bank interest income of HK$19,525,000[13]. - The loss attributable to shareholders for the year was HK$14,065,000, an improvement from HK$28,413,000 in 2020, with a basic loss per share of HK$0.059 (2020: HK$0.12)[14]. - The total comprehensive income for the year was HK$187,028,000, compared to a loss of HK$105,459,000 in the previous year[192]. - The Group's overall comprehensive income attributable to shareholders was HK$181,050,000, compared to a total comprehensive expense of HK$105,884,000 in 2020[10]. Investment Properties - The decrease in fair value of investment properties amounted to HK$22,069,000, significantly lower than HK$80,332,000 in 2020[13]. - The Group's investment properties amounted to HK$2,074,921,000, representing approximately 75% of the Group's total assets as of June 30, 2021[188]. - The fair value of investment properties in Beijing increased by RMB66,200,000, compared to RMB51,560,000 in 2020, resulting in a profit of HK$98,650,000 for the segment, up from HK$74,864,000 in 2020[25]. - The fair value of investment properties in Shanghai depreciated by RMB85,000,000, compared to RMB124,000,000 in 2020, leading to a segment loss of HK$59,146,000, improved from a loss of HK$90,333,000 in 2020[26]. - The valuations of residential portions and carparks under direct comparison approach amounted to HK$326,291,000, dependent on key inputs including market unit sales rate[188]. - The valuations of commercial portions and office units under income capitalization approach amounted to HK$1,748,630,000, reliant on key inputs including capitalization rates and market unit rents[188]. Rental Income - The decline in rental income was primarily due to subdued market conditions affecting investment properties in mainland China[12]. - The Group's rental income from investment properties in Shanghai and Beijing was RMB73,874,000, a decrease of 11% compared to RMB83,011,000 in the previous year[21]. - The average occupancy rate for community shopping malls in Beijing dropped to 80%, down from 89% in the previous year, leading to rental income of RMB24,906,000, a decline of approximately 9%[23]. - The rental income from the Group's premium office building in Shanghai was RMB48,968,000, reflecting a 9% decline from RMB54,099,000 in the previous year[24]. - The average occupancy rate of the community mall in Chaoyang District, Beijing, was about 80%, down from 89% in 2020, leading to a rental income of RMB24,906,000, a decrease of approximately 9% compared to RMB28,912,000 in 2020[25]. - In Shanghai, the average occupancy rate of "Eton Place" was about 82%, up from 79% in 2020, with rental income totaling RMB48,968,000, also a decline of 9% from RMB54,099,000 in 2020[26]. Exchange Gains and Losses - The Group recognized a net exchange gain of HK$9,629,000, compared to a net exchange loss of HK$3,951,000 in 2020, attributed to the appreciation of RMB against HKD[13]. - The Group reported a net exchange gain of HK$9,629,000 due to RMB appreciation against HKD, compared to a net exchange loss of HK$3,951,000 in 2020[32][34]. Dividends - The final dividend recommended by the Board is 1 Hong Kong cent per share, totaling 2 Hong Kong cents per share for the year, including the interim dividend[19]. - The total dividend for the year is subject to approval at the upcoming annual general meeting scheduled for December 17, 2021[19]. - An interim dividend of HK$2,377,000 was paid to shareholders, with a final dividend of HK$2,377,000 recommended, totaling 2 Hong Kong cents per share for the year ended 30 June 2021[142]. Corporate Governance - The Company has established an internal corporate governance code to facilitate compliance with the Corporate Governance Code and provide guidance to Directors and senior management[72]. - The Board believes that its efforts in enhancing corporate governance practices have contributed to sustained business growth in past years[70]. - The Company has adhered to the principles and code provisions of the Corporate Governance Code, with some deviations disclosed[71]. - The Board is responsible for establishing overall strategic development and monitoring the performance of the business and senior management[75]. - The Company continuously reviews and enhances its corporate governance practices with reference to local and international best practices[70]. - The Company aims to ensure transparency and accountability to its stakeholders, including shareholders, customers, suppliers, employees, and the public[69]. Management and Directors - Dr. TAN Lucio C. has been the Chairman and Executive Director since 2019, with extensive experience in real estate, banking, and other industries[50]. - Mr. CHIU Siu Hung has served as the Chief Executive Officer since 2019 and has over 30 years of experience in real estate and finance[51]. - The management team has a strong background in various sectors, including real estate, banking, and manufacturing, enhancing the company's strategic capabilities[52]. - The Board of Directors currently comprises seven Executive Directors and four Independent Non-executive Directors, with the latter representing more than one-third of the Board[74]. - The Company has established three committees: Remuneration Committee, Nomination Committee, and Audit Committee, each with defined terms of reference[85]. Risk Management and Internal Control - The Board is responsible for establishing and overseeing the Group's risk management and internal control systems, ensuring their effectiveness is reviewed regularly[107]. - The Audit Committee is tasked with reviewing and monitoring corporate governance functions delegated by the Board[106]. - The risk management and internal control systems provide reasonable assurance against material misstatement or loss, and the Board considers them effective and adequate based on the annual review results[113]. - For the year ended June 30, 2021, the Board and Audit Committee conducted an annual review of the effectiveness and adequacy of the risk management and internal control systems, covering all material controls[111]. Environmental and Social Responsibility - The Group is committed to supporting environmental sustainability and complying with applicable laws and regulations regarding environmental protection[133]. - Further details of environmental, social, and governance reporting will be disclosed in the "Environment, Social and Governance Report 2020-2021" within three months after the publication of the annual report[185]. - The Company will upload the environmental, social, and governance report to the Stock Exchange and its website no later than three months after the annual report publication[185].

Financial Performance - For the six months ended December 31, 2020, the group recorded total revenue of HKD 42,337,000, a decrease of approximately 13% compared to HKD 48,782,000 in the same period last year[9]. - Gross profit for the same period was HKD 29,607,000, reflecting a decline of about 15% from HKD 34,823,000 year-on-year, with a gross margin of approximately 70%[9]. - The group reported a loss attributable to shareholders of HKD 34,086,000, compared to a profit of HKD 7,377,000 in the prior year, resulting in a basic loss per share of HKD 0.1434[10]. - The company reported a loss before tax of HKD 63,973,000, compared to a loss of HKD 14,009,000 in the previous year, indicating a significant increase in losses[49]. - Basic and diluted loss per share was HKD (14.34), compared to earnings of HKD 3.14 in the same period last year[50]. - Total comprehensive income for the period was HKD 138,116,000, a turnaround from a loss of HKD 32,402,000 in the prior year[50]. Revenue and Income Sources - Other income increased to HKD 19,384,000 from HKD 7,249,000, primarily due to bank interest income and a net exchange gain of HKD 5,995,000[9]. - Rental income from investment properties in Shanghai and Beijing totaled RMB 36,852,000, down approximately 16% from RMB 43,733,000 in the previous year[14]. - The company recorded a significant foreign exchange gain of HKD 172,215,000, compared to a loss of HKD 40,017,000 in the previous year[50]. - The interest income received during the period was HKD 2,584,000, an increase from HKD 1,694,000 in the prior year, reflecting a growth of 52.5%[56]. - Property rental income included variable lease payments of HKD 1,975,000, down from HKD 3,066,000 in the previous year, showing a decline of 35.6%[62]. Investment Properties and Market Conditions - The fair value of investment properties decreased by HKD 84,669,000, compared to a decrease of HKD 33,463,000 in the previous year, indicating a significant decline in market conditions[9]. - The total fair value reduction of investment properties in Shanghai amounted to RMB 60,000,000, compared to RMB 24,000,000 in the previous year, resulting in a loss of HKD 47,651,000 for the period[16]. - The total fair value reduction of investment properties in Beijing was RMB 13,700,000, leading to a loss of HKD 5,505,000 for the period[15]. - The overall performance was impacted by the COVID-19 pandemic and a weak rental market in China, leading to a decline in revenue from leasing operations[13]. Administrative and Operational Expenses - The group’s administrative expenses increased to HKD 23,188,000 from HKD 15,581,000 year-on-year, reflecting higher operational costs[9]. - The company incurred financing costs of HKD 985,000 for the six months ended December 31, 2020, down from HKD 2,038,000 in the same period of 2019[66]. - Administrative expenses were reduced to HKD 271,000 from HKD 15,581,000, reflecting cost-cutting measures[49]. Equity and Liabilities - The company’s total equity attributable to owners was RMB 1,786,784,000 as of December 31, 2020, with a net asset value per share of RMB 7.52[24]. - The company’s total bank borrowings were approximately HKD 97,586,000, with a debt ratio of 5% as of December 31, 2020[24]. - The company reported a net liability of HKD 10,822,000 for Shenzhen Zhenhua, with total liabilities of HKD 284,790,000[42]. - The company’s total liabilities to related parties included lease liabilities of HKD 6,792,000 and other receivables of HKD 1,864,000 as of December 31, 2020[94]. Future Outlook and Strategic Plans - The group anticipates a stabilization in vacancy rates in Beijing in 2021, although rental rates may take additional time to recover to pre-COVID levels[29]. - In Shanghai, the group expects a better business environment due to economic recovery, but office rental income may face downward pressure due to competitive leasing terms[29]. - The group plans to adjust leasing and marketing strategies to maintain tenant occupancy and regular income[29]. - Shenzhen is expected to develop further as a high-tech hub, enhancing the value of new land developments in the area[30]. - The group will continue to monitor the impact of RMB fluctuations to mitigate negative effects on its financial performance[24]. Shareholder Information - As of December 31, 2020, the total number of shares held by Dr. Chan Wing Choi is 93,701,279, representing approximately 39.42% of the total issued shares of 237,703,681[34]. - Zedra Asia Limited holds 89,321,279 shares, accounting for approximately 37.58% of the total issued shares[38]. - The company’s total issued shares as of December 31, 2020, represented approximately 10% of the total shares approved for the stock option plans[87]. Joint Ventures and Related Parties - The company holds a 49% equity interest in Shenzhen Zhenhua Port Bay Enterprises Co., Ltd., which has ceased operations since January 16, 2014[77]. - The joint venture's net assets will be distributed to the partners upon completion of the liquidation process, which is expected to take more than a year[78]. - The company has recognized a profit distribution of HKD 10,368,000 from the joint venture as of December 31, 2020, which has not been confirmed due to the need for unanimous consent from the Chinese partner[76].

Financial Performance - For the financial year ended 30 June 2020, the Group recorded total revenue of HK$92,054,000, a decrease of approximately 13% compared to HK$106,206,000 in 2019[10]. - Gross profit for the same period was HK$65,587,000, down 19% from HK$80,799,000 in 2019, with a gross profit margin of 71% (2019: 76%) due to reduced rental income from investment properties in mainland China[14]. - The loss attributable to shareholders for the year was HK$28,413,000, contrasting with a profit of HK$48,730,000 in 2019, resulting in a basic loss per share of HK$0.12[16]. - The total comprehensive expense attributable to shareholders was HK$105,884,000, compared to HK$40,919,000 in 2019, reflecting the impact of currency translation losses[17]. - The profit for the year ended June 30, 2020, was HKD 48,730,000, with total comprehensive income showing a loss of HKD 105,884,000[196]. - The basic loss per share was HK$12.0 compared to earnings of HK$21.5 per share in 2019[193]. Rental Income and Property Valuation - The Group's total rental income from investment properties in Beijing and Shanghai was RMB83,011,000, representing a 10% decrease compared to RMB92,474,000 in 2019[20]. - The average occupancy rate for the community mall in Chaoyang District, Beijing, was approximately 89%, down from 91% in 2019, with rental income totaling RMB28,912,000, a decline of about 10% from RMB32,019,000 in 2019[23]. - The rental income from the Group's premium office building in Shanghai was RMB54,099,000, reflecting an 11% decrease from RMB60,454,000 in 2019, with an average occupancy rate dropping to about 79% from 90%[22]. - The fair value of the Group's investment properties decreased by RMB72,440,000, translating to HK$80,332,000, compared to an appreciation of RMB3,100,000 in 2019[20]. - The segment results for property rental recorded a loss of RMB13,949,000, down from a profit of RMB73,596,000 in 2019[20]. - The fair value of investment properties decreased in fair value by HK$168,560,000, contrasting with an increase of HK$3,560,000 in the previous year[193]. Currency and Exchange Impact - The Group experienced a 3.8% devaluation of the renminbi against the Hong Kong dollar during the year, compared to a 4.3% devaluation in 2019, affecting financial results[12]. - The net exchange loss due to currency fluctuations was HK$3,951,000, down from HK$5,841,000 in 2019, indicating some improvement in currency risk management[15]. - The comprehensive expense due to exchange differences amounted to HK$78,898,000, a decrease from HK$91,249,000 in the previous year[29]. - The exchange differences arising on translation resulted in a loss of HKD 89,649,000 for the year[196]. - The Group experienced an exchange loss of HKD 77,471,000 during the year[196]. Administrative and Operational Efficiency - Administrative expenses decreased to HK$37,053,000 from HK$43,730,000 in the previous year, indicating cost management efforts[15]. - The Group's net current assets increased to HK$169,050,000 as of June 30, 2020, from HK$77,356,000 in the previous year, resulting in a current ratio of 2.21 compared to 1.32[31]. - The Group maintained un-utilised credit facilities of HK$11,000,000 as of June 30, 2020, compared to HK$16,000,000 in the previous year[31]. - The Group has not made any significant capital expenditure commitments during the year[31]. Corporate Governance and Management - The Company has established an internal corporate governance code to facilitate compliance with the Corporate Governance Code[61]. - The Board believes that its efforts in enhancing corporate governance practices have contributed to sustained business growth in past years[59]. - The Company has adopted a code for securities transactions by Directors in line with the Listing Rules, confirming compliance by all Directors for the year ended 30 June 2020[62]. - The Board consists of five Independent Non-executive Directors, representing more than one-third of the Board, with several possessing relevant professional qualifications in accounting or financial management[67]. - The Company has established three committees: Remuneration Committee, Nomination Committee, and Audit Committee to oversee specific aspects of the Group's affairs[81]. Future Outlook and Market Conditions - The overall economic downturn due to COVID-19 led to increased vacancy rates and lower effective rental income, impacting the profitability of the Group[20]. - The economic outlook remains challenging due to uncertainties from the COVID-19 pandemic and trade tensions, but recovery is anticipated driven by strong domestic demand and digital innovation[34]. - Despite challenges, it is anticipated that China's economy will rebound, driven by robust domestic demand and digital innovation, leading to gradual improvements in leasing activities in the office and retail sectors in Beijing and Shanghai[37]. - In Beijing, retail operations are gradually resuming, with expectations of improved retail leasing and turnover volumes as consumer confidence returns post-pandemic[39]. - The Group will continue to adopt competitive rental strategies to attract new tenants and retain existing ones, including property refurbishment and value-added services[39]. Shareholder and Dividend Information - The Group did not recommend a final dividend for the year ended June 30, 2020, compared to a dividend of 4 Hong Kong cents per share in 2019[19]. - The Group's retained earnings available for distribution to shareholders amounted to HK$125,913,000 as of 30 June 2020[138]. - A final dividend of 4 Hong Kong cents per share was paid to shareholders for the year ended June 30, 2019[135]. - An interim dividend of 2 Hong Kong cents per share totaling HK$4,754,000 was distributed during the year[135]. Risks and Challenges - The Group faces significant risks due to economic uncertainties, particularly from the ongoing COVID-19 pandemic and trade frictions between the US and China, impacting the property rental segment in Beijing and Shanghai[36]. - The Group is actively monitoring the progress of land swaps and related approvals, although there is no assurance against significant delays or impediments[41]. - The assets of Zhen Wah are expected to be sold through public auction or other means, with complexities involved in the compulsory liquidation process that may lead to delays and disputes[42].

Financial Performance - The total revenue for the six months ended December 31, 2019, was HKD 48,782,000, a decrease of approximately 8% compared to HKD 53,286,000 in the same period of 2018[9]. - Gross profit for the same period was HKD 34,823,000, down 16% from HKD 41,505,000 in 2018, resulting in a gross margin of approximately 71%[9]. - The profit attributable to shareholders for the period was HKD 7,377,000, significantly down from HKD 44,418,000 in 2018, with basic earnings per share at HKD 0.0314[10]. - The company reported a loss before tax of HKD 14,009,000, compared to a profit of HKD 40,315,000 in the previous year[45]. - Net profit for the period was HKD 7,615,000, significantly lower than HKD 45,148,000 in the prior year, indicating a decline of 83.1%[46]. - Basic earnings per share decreased to HKD 3.14 from HKD 19.69, representing a drop of 84.1%[46]. - The company's total equity was HKD 2,103,127,000, down from HKD 2,132,518,000, indicating a slight reduction in shareholder value[48]. Income and Expenses - Other income amounted to HKD 7,249,000, primarily from bank interest income, which totaled HKD 8,746,000, down from HKD 9,170,000 in 2018[10]. - Administrative expenses for the period were HKD 15,581,000, compared to HKD 14,557,000 in 2018[10]. - The company experienced a significant foreign exchange loss of HKD 40,017,000, compared to a loss of HKD 82,932,000 in the previous year[46]. - The net cash generated from operating activities for the six months ended December 31, 2019, was HKD 16,748,000, a decrease of 34.5% compared to HKD 25,769,000 in the same period of 2018[51]. - The net cash used in investing activities was HKD 14,664,000, compared to a net cash inflow of HKD 6,533,000 in the previous year, indicating a significant shift in investment strategy[51]. Rental Income and Property Valuation - Rental income from investment properties in mainland China was RMB 43,733,000, a decrease of approximately 7% from RMB 46,776,000 in 2018[15]. - The fair value of investment properties decreased by HKD 33,463,000 during the period, contrasting with an increase of HKD 14,923,000 in 2018[10]. - The rental income from the Beijing property amounted to RMB 16,050,000, representing a slight increase from RMB 16,043,000 in 2018, accounting for approximately 37% of the group's total revenue[16]. - The average occupancy rate for the Beijing shopping mall was about 90%, down from 92% in 2018[16]. - In Shanghai, the rental income totaled RMB 27,683,000, reflecting a decline of about 10% compared to RMB 30,733,000 in 2018, with an average occupancy rate of approximately 80%[17]. - The fair value of investment properties in Shanghai decreased by RMB 24,000,000, contrasting with an increase of RMB 11,000,000 in 2018[17]. Debt and Equity - As of December 31, 2019, the total equity attributable to the owners of the company was RMB 1,851,306,000, with a net asset value per share of RMB 7.79[23]. - The group's total bank borrowings amounted to approximately HKD 93,881,000, with a debt ratio of about 5%[23]. - The group has maintained an unused credit facility of HKD 16,000,000 for working capital purposes[24]. - The group has mortgaged properties with a total book value of HKD 885,262,000, down from HKD 918,536,000 as of June 30, 2019[25]. Shareholder Information - As of December 31, 2019, Dr. Chen Yongzai holds a total of 93,701,279 shares, representing approximately 39.42% of the issued share capital[30]. - The total number of issued shares was 237,703,681, with major shareholders Carnation Investments Inc. and Zedra (Hong Kong) Limited each holding 89,321,279 shares, representing 37.58% of the total shares[36]. - The interim dividend declared was HKD 0.02 per share, down from HKD 0.03 per share in 2018[13]. COVID-19 Impact and Future Outlook - The COVID-19 pandemic and US-China trade tensions are expected to pressure China's economic outlook, impacting rental demand for office and retail spaces in Beijing and Shanghai[26]. - The group anticipates a significant reduction in rental demand for retail spaces in Beijing due to consumer spending constraints and lockdown measures[26]. - The group will implement strict measures to protect tenants and maintain occupancy rates, including enhanced online and offline leasing strategies[27]. Accounting Policies and Compliance - The company applied HKFRS 16 "Leases" for the first time, which replaced HKAS 17, impacting the accounting policies related to lease agreements[55]. - The application of new accounting standards did not have a significant impact on the financial performance and position of the company during the reporting period[54]. - The company confirmed compliance with the securities trading standards as per the listing rules by all directors during the six months ending December 31, 2019[34]. Management and Staff - The company employed approximately 50 staff members as of December 31, 2019, with compensation aligned with market levels, including benefits such as medical insurance and stock option plans[37]. - The total remuneration for key management personnel was HKD 1,121,000 for the six months ended December 31, 2019, down from HKD 1,723,000 in the same period of 2018[112].