Financial Performance - For the financial year ended 30 June 2019, the Group recorded total revenue of HK$106,206,000, a decrease of 6% compared to HK$113,030,000 in 2018[11]. - Gross profit for the same period was HK$80,799,000, reflecting a 9% decline from HK$88,714,000 in the previous year, with a gross profit margin of 76% (2018: 78%) [11]. - The net profit attributable to shareholders for the year was HK$48,730,000, a significant decrease of 61% from HK$126,125,000 in 2018[9]. - Basic earnings per share for the year were HK$0.215, down from HK$0.560 in the previous year[9]. - Total comprehensive expenses for the year were HK$91,249,000, compared to comprehensive income of HK$58,204,000 in 2018, largely due to a 4% depreciation of RMB against HKD[9]. - Other income, gains or losses amounted to HK$15,894,000, down from HK$24,482,000 in 2018, primarily due to fluctuations in currency exchange rates[8]. Investment Properties - The Group's investment properties experienced a significant decrease in fair value increase, amounting to HK$3,560,000 compared to HK$88,171,000 in the previous year[8]. - The fair value of investment properties increased by RMB3,100,000 (HK$3,560,000) during the year, a significant drop from RMB73,300,000 (HK$88,171,000) in 2018, indicating subdued market sentiment [21]. - The fair value of investment properties in Beijing decreased by RMB8,900,000, contrasting with an increase of RMB21,300,000 in 2018[24]. - The Group's investment properties in Beijing and Shanghai had an aggregate asset value of RMB1,804,200,000, slightly up from RMB1,801,100,000 in 2018[20]. Rental Income - The core rental business generated total revenue of RMB92,474,000, a slight decrease of 2% from RMB93,967,000 in 2018, with rental income presented as HK$106,206,000 (2018: HK$113,030,000) [20]. - The rental segment in Beijing generated rental income of RMB32,019,000, a 4% increase from RMB30,661,000 in 2018, contributing to 35% of the Group's total revenue [22]. - In Shanghai, the rental income from the "Yujing International Business Plaza" was RMB60,454,000, a decrease of 5% from RMB63,306,000 in 2018, with an average occupancy rate of 90% [23]. - The segment results of property rental reported a profit of RMB73,596,000, a significant drop of 53% compared to RMB147,984,000 in 2018 [21]. Administrative and Other Expenses - Administrative expenses for the year were HK$43,730,000, an increase from HK$40,461,000 in 2018[8]. - The Group incurred a loss of HK$10,140,000 from Zhen Wah, an increase from HK$9,949,000 in 2018, along with professional fees of HK$12,819,000 for liquidation and arbitration[38]. Exchange Rate Impact - The depreciation of RMB against HKD impacted the Group's financial results, leading to a net exchange loss of HK$5,841,000[8]. - The Group experienced a net exchange loss of HK$5,841,000 due to RMB fluctuations against HKD, contrasting with a net exchange gain of HK$4,006,000 in 2018[39][42]. Shareholder Information - The total dividend for the year is proposed at 7 Hong Kong cents per share, consistent with the previous year [15]. - The Directors recommended a final dividend of 4 Hong Kong cents per share, amounting to HK$9,293,000, payable on 20 December 2019[172]. - An interim dividend of 3 Hong Kong cents per share was paid, totaling HK$6,850,000 during the year[172]. - The Group's retained earnings available for distribution to shareholders amounted to HK$105,695,000 as of 30 June 2019[173]. 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[87]. - The Board is responsible for establishing overall strategic development, setting business objectives, and monitoring the performance of the business and senior management[93]. - The Company has applied the principles and adhered to the code provisions of the Corporate Governance Code, with some deviations disclosed[86]. - The Independent Non-executive Directors provide independent judgment on the Group's development, performance, internal controls, corporate governance, and risk management[94]. Risk Management - The Group's risk management and internal control systems were reviewed annually, covering all significant controls including financial, operational, and compliance monitoring[132]. - The risk management review covers all material controls, including financial, operational, compliance, and risk management functions[136]. - The Board considers the risk management and internal control systems effective and adequate based on the annual review results[138]. Management and Board Composition - The management team has extensive experience in real estate, banking, and various industries, with several members holding senior positions in multiple listed companies[63][64][68][69]. - The Board currently comprises eight executive Directors and five Independent non-executive Directors, with Independent non-executive Directors representing more than one-third of the Board[90][92]. - The Nomination Committee's main responsibilities include reviewing the Board's composition, structure, size, and diversity, and making recommendations for Director appointments and succession planning[113]. Market Outlook - The ongoing US-China trade tensions are expected to impact the economic outlook in mainland China, but government measures may support market expectations and mitigate economic slowdown effects[46]. - The office market in Shanghai is expected to face fierce competition, with net absorption of office space continuing to decline due to a glut of office projects and economic headwinds, leading to decreased demand and rental rates[51]. - In Beijing, slowing economic growth is anticipated to suppress consumer spending power, impacting retailers' leasing demands, although the integration of online and offline retail is expected to drive demand evolution[50].

Financial Performance - Total revenue for the six months ended December 31, 2018, was HKD 53,286,000, a slight decrease of 2% compared to HKD 54,536,000 in the same period last year[5] - Gross profit for the same period was HKD 41,505,000, down from HKD 42,347,000, maintaining a stable gross margin of 78%[5] - Net profit attributable to shareholders decreased by 44% to HKD 44,418,000, compared to HKD 78,876,000 in the prior year, with basic earnings per share at HKD 0.1969[6] - The total comprehensive expenses for the period amounted to HKD 37,033,000, compared to a total comprehensive income of HKD 156,376,000 in the previous year[7] - The company reported a profit before tax of HKD 40,315,000, significantly lower than HKD 83,114,000 in the previous year, reflecting a decline of approximately 51.5%[36] - The net profit for the period was HKD 45,148,000, compared to HKD 80,214,000 in the prior year, marking a decrease of around 43.7%[36] - The total comprehensive income for the period was a loss of HKD 37,784,000, contrasting with a gain of HKD 159,090,000 in the same period of 2017[36] - The company's profit attributable to owners for the six months ended December 31, 2018, was HKD 44,418,000, a decrease of 43.7% from HKD 78,876,000 in the same period of 2017[37] - Basic earnings per share decreased to HKD 19.69 from HKD 35.05, reflecting a 43.8% drop year-over-year[37] Revenue Sources - Rental income from properties in mainland China was RMB 46,776,000, slightly up from RMB 46,244,000, contributing to overall revenue[9] - Rental income from the Beijing property segment increased by 5% to RMB 16,043,000, compared to RMB 15,214,000 in the previous year[10] - Property leasing income was HKD 18,276,000, up from HKD 17,941,000 in the previous year, while property sales revenue decreased to HKD 35,010,000 from HKD 36,595,000[60] Investment Properties - The fair value of investment properties increased by HKD 14,923,000, down from HKD 47,408,000 in the previous year, reflecting a significant decline in property value appreciation[6] - The fair value of the group's investment properties decreased to HKD 2,070,532,000 as of December 31, 2018, from HKD 2,136,283,000 as of July 1, 2018[69] - The average occupancy rate for the community shopping mall in Beijing was approximately 92%, down from 95% in the previous year[10] - The average occupancy rate for the group's investment properties in Shanghai was approximately 92%, down from 94% in 2017, with rental income totaling RMB 30,733,000 (approximately HKD 35,010,000), accounting for 66% of total revenue[11] Cash Flow and Assets - The net cash balance as of December 31, 2018, was HKD 270,846,000, an increase from HKD 257,870,000 on June 30, 2018, indicating strong cash flow from rental income[15] - The company's total liabilities decreased to HKD 439,767,000 from HKD 464,668,000, indicating a reduction in financial obligations[39] - The net cash generated from operating activities for the six months ended December 31, 2018, was HKD 25,769,000, compared to HKD 10,566,000 for the same period in 2017, representing a significant increase of 143.5%[45] - The total cash and cash equivalents increased by HKD 29,256,000 for the six months ended December 31, 2018, compared to a decrease of HKD (4,513,000) in the same period of 2017[45] Shareholder Information - As of December 31, 2018, the total number of issued ordinary shares was 228,323,681[21] - The major shareholder Dr. Chen Yongzai holds 89,321,279 shares, representing 41.04% of the total issued share capital[23] - The major shareholder TAN Carmen K. holds 91,511,279 shares, also representing 41.04% of the total issued share capital[23] - Mr. Chen Junwang holds 1,500,000 shares, representing approximately 0.66% of the total issued share capital[20] - Mr. Huang Zhengshun holds a total of 1,582,000 shares, which is about 0.69% of the total issued share capital[20] - Dr. Zhao Shaohong has 1,000,000 shares, accounting for approximately 0.44% of the total issued share capital[20] Dividends - The interim dividend declared was HKD 0.03 per share, with the record date set for April 8, 2019[4] - The interim dividend declared was HKD 0.03 per share, an increase from HKD 0.025 per share in the previous year[32] - The company declared a final dividend of HKD 0.04 per share for the year ended June 30, 2018, totaling HKD 9,133,000, compared to HKD 6,752,000 for the previous year[66] Regulatory Compliance - The financial statements were prepared in accordance with the Hong Kong Financial Reporting Standards, ensuring compliance with local regulations and standards[46] - The company has adopted HKFRS 15, which replaced HKAS 18, impacting the recognition of revenue from property leasing and sales, with no significant effect on retained earnings as of July 1, 2018[48] - The company applies the Hong Kong Financial Reporting Standard 9 (HKFRS 9) for financial instruments, which has led to changes in the classification and measurement of financial assets[52] Management and Governance - The company has not appointed a new chairman or CEO following the resignation of key executives, which may impact governance compliance[31] - The company employs approximately 50 staff members, including directors, with compensation aligned with current market levels[26] - The company has adopted the standard code of conduct for securities trading by directors as per the listing rules[22] Joint Ventures and Liquidation - The complexity of the liquidation process for the joint venture partner, Shenzhen Zhenhua, has led to an extension of the liquidation period by six months, with ongoing negotiations regarding land replacement and compensation[12][19] - The group remains committed to protecting its interests in the liquidation of Zhenhua, with potential land disposals subject to approval by Chinese courts[19] - The joint venture's operating period ended on January 16, 2014, and it is currently in the process of liquidation[75] - The group has not recognized additional profits of HKD 10,368,000 from the joint venture due to pending arbitration outcomes[74]