Company Overview - Dynamic Holdings Limited is a premier property group in mainland China, focusing on property investment, with major operations in property rental in Beijing and Shanghai, and property development in Shenzhen[5][4]. Sustainability Commitment - The Group emphasizes sustainability, integrating environmental, social, and governance (ESG) issues into its corporate culture and operations, aiming to create long-term shared value for stakeholders[6][10]. - The Group has committed to reducing its carbon footprint and promoting sustainable practices, actively exploring opportunities to preserve natural resources[3][8]. - The Group aims to achieve targets for greenhouse gas (GHG) emissions reduction, energy conservation, and waste generation through specific measures and new technologies[11]. - The Group has implemented several green initiatives to demonstrate its long-term commitment to environmental protection[45]. - The Group aims to peak carbon dioxide emissions by 2030 and achieve carbon neutrality by 2060, aligning with national "dual carbon" goals[103]. ESG Reporting and Governance - The ESG Report complies with the mandatory disclosure requirements outlined in the ESG Reporting Guide of the Stock Exchange of Hong Kong Limited[15][14]. - The governance structure includes a Board of Directors and an ESG working group to oversee ESG performance and strategies[24]. - The Group has engaged an independent ESG consultant to assist in the preparation of the report and provide ESG-related consultancy services[29]. - Key performance indicators (KPIs) are disclosed quantitatively to facilitate objective evaluation of ESG performance[19]. - The Group has initiated a materiality assessment to address relevant ESG issues based on industry trends and regulatory requirements, including SASB and MSCI ESG Ratings[37]. Stakeholder Engagement - The Group prioritizes stakeholder engagement to shape sustainability strategies, utilizing various communication channels[33]. - Continuous communication with stakeholders is maintained to understand their viewpoints and expectations[33]. - Stakeholder engagement has provided valuable insights into strategic development and contributed to the preparation of the ESG report[36]. - The Group will continue to actively engage with stakeholders and review internal policies to enhance ESG management and performance[42]. Environmental Performance - Total greenhouse gas emissions for the year ended June 30, 2024, were 2,329.2 tonnes CO2e, an increase of 7.5% from 2,166.4 tonnes CO2e in the previous year[54]. - Scope 2 emissions from purchased electricity decreased significantly from 2,124.5 tonnes CO2e in 2023 to 1,146.03 tonnes CO2e in 2024, representing a reduction of approximately 46%[54]. - The intensity of greenhouse gas emissions increased from 27.2 tonnes CO2e per HK$ million in 2023 to 32.5 tonnes CO2e per HK$ million in 2024[54]. - Non-hazardous waste generated increased from 0.95 tonnes in 2023 to 1.65 tonnes in 2024, marking a 73.7% rise[60]. - The density of non-hazardous waste per HK$ million revenue rose from 11.85 kg to 23.02 kg, indicating a significant increase in waste intensity[60]. - The company aims to promote a zero-waste office culture and has implemented measures to reduce non-hazardous waste generation[63]. - Energy consumption for the year ended June 30, 2024, totaled 2,105.0 MWh, a decrease from 3,822.6 MWh for the year ended June 30, 2023, representing a reduction of approximately 45%[73]. - Total water consumption increased to 28,845.0 m³ for the year ended June 30, 2024, compared to 18,644.2 m³ for the year ended June 30, 2023, representing a 54.0% increase[86]. Employee Well-being and Safety - The Group prioritizes employee well-being by providing ergonomic office furniture to reduce fatigue and the risk of musculoskeletal disorders[126]. - The Group provides comprehensive health benefits, including group medical, personal accident, and life insurance coverage[126]. - There were no work-related fatalities or lost days due to work injury during the Reporting Period[125]. - Regular safety hazard assessments and air quality control measures are implemented to enhance workplace safety[124]. - The Group signed the Mental Health Workplace Charter and participated in the World Day for Safety and Health at Work in April 2024[129]. Training and Development - The percentage of trained employees for the year ended June 30, 2024, was 55.8%, a decrease from 57.7% for the year ended June 30, 2023[138]. - The average training hours completed per employee increased to 20.1 hours for the year ended June 30, 2024, compared to 20.4 hours for the year ended June 30, 2023[138]. - The Group offers a range of internal and external training opportunities to enable employees to acquire essential skills and knowledge[134]. Compliance and Risk Management - Compliance with relevant laws and regulations is emphasized to mitigate risks that could negatively impact the Group[31]. - The Group conducts assessments on significant environmental, social, and governance risks affecting operations[28]. - The Group has established comprehensive risk management procedures to identify, monitor, and manage climate change impacts[96]. - The Group has not been aware of any material non-compliance with laws and regulations related to providing a safe working environment during the reporting period[132]. Community Engagement - The Group participated in the "Love Teeth Day" event, donating to enhance oral health services for the needy, demonstrating commitment to community investment[162]. - The Group encourages employees to participate in the "Skip Lunch Day" event in March 2024, promoting donations to support services for street sleepers and residents in cage homes[162]. - The Group's community investment initiatives aim to enhance the well-being of the communities it serves, reflecting its commitment to social responsibility[161].

Financial Performance - The financial year ending June 30, 2024, is reported with significant developments in the company's performance[5]. - For the financial year ended 30 June 2024, the Group reported total revenue of HK$71,573,000, a decrease of approximately 10% compared to HK$79,734,000 in 2023[8]. - The gross profit for the year was HK$44,965,000, reflecting an 18% decline from HK$54,752,000 in the previous year, with a gross profit margin of 63% (2023: 69%) due to reduced rental revenue from investment properties in mainland China[8][10]. - The Group recorded other income, gains, or losses of HK$3,083,000, down from HK$17,346,000 in 2023, primarily from bank interest income of HK$7,032,000 and a net exchange gain of HK$4,297,000[9]. - The profit attributable to shareholders for the year was HK$5,353,955,000, significantly up from HK$6,634,000 in 2023, with basic earnings per share of HK$22.52 compared to HK$0.028 in the previous year[10]. - The other comprehensive income for the year was HK$18,460,000, a turnaround from an expense of HK$156,787,000 in 2023, due to a 1% appreciation of RMB against HKD[10]. Market and Operational Insights - The company aims to enhance its market presence through strategic expansions and potential acquisitions[5]. - New product and technology developments are underway, focusing on innovation to drive future growth[5]. - The rental income from investment properties in Shanghai and Beijing was RMB65,215,000, down about 8% from RMB71,093,000 in 2023, contributing to the overall revenue[15]. - The average occupancy rate in Beijing improved to 86% from 78% in the previous year, contributing to the increase in rental income[19]. - The average occupancy rate in Shanghai dropped to 83% from 89% in the previous year, primarily due to a weak leasing market and tenant defaults[20]. - The Group's total revenue composition shifted, with Beijing's contribution increasing and Shanghai's decreasing compared to the previous year[19][20]. Corporate Governance - The company is committed to maintaining transparency and good corporate governance practices[2]. - The board of directors includes key executives such as Dr. Tan Lucio C. as Chairman and Chiu Siu Hung, Allan as CEO[2]. - The company has established a robust audit committee led by independent directors to ensure financial integrity[2]. - The Company has established an internal corporate governance code to facilitate compliance with the Corporate Governance Code[62]. - The Board is responsible for setting the overall strategic direction and monitoring the financial performance and internal controls of the group[66]. - The Company has adopted a shareholders communication policy to enhance transparency and regularly collects feedback from shareholders[114]. Risk Management - The Group faces significant financial risks due to fair value fluctuations of investment properties, which constitute the highest proportion of total assets[138]. - The Group is exposed to higher risks from macroeconomic factors, particularly volatility in the Renminbi and market interest rates, which could significantly affect operational results[150]. - The Company aims to enhance its enterprise risk management framework and policies as part of its sustainable development goals[106]. - The ongoing litigation regarding relocation compensation claims may lead to significant financial liabilities for the Group[144]. - The Group's proactive measures include optimizing tenant mix and providing competitive rental packages to mitigate risks in property leasing[147]. Shareholder Information - The annual general meeting is scheduled for December 13, 2024, with a last registration date of December 9, 2024[4]. - The final dividend payment is set for January 7, 2025, following the last registration date of December 16, 2024[4]. - A final dividend of 0.5 Hong Kong cents per share was paid on January 9, 2024, for the year ended June 30, 2023, with an interim dividend of 0.5 Hong Kong cents per share totaling HK$1,189,000 paid during the year[161]. - The total dividends for the year ended June 30, 2024, will amount to 1 Hong Kong cent per share, aggregating to HK$1,189,000[161]. - The company's distributable reserves as of June 30, 2024, amounted to HK$163,303,000 in retained profits[170]. Board Composition and Diversity - The Board currently consists of three female members and seven male members, indicating a diversified gender composition[88]. - The Company has established three committees: Remuneration Committee, Nomination Committee, and Audit Committee, each with defined terms of reference[82]. - The Nomination Committee is responsible for reviewing the composition, structure, and diversity of the Board, ensuring candidates meet the standards set out in the Listing Rules[84]. - All Independent Non-executive Directors confirmed their independence annually, with those serving over 9 years requiring separate shareholder approval for further appointment[80]. - The independent non-executive directors have extensive senior managerial experience in various industries, including banking and aluminum products[59][60]. Financial Position and Liquidity - As of June 30, 2024, the equity attributable to the owners amounted to RMB 6,712,492,000, a significant increase from RMB 1,830,193,000 on June 30, 2023[31]. - The net asset value per share increased to HK$30.94 as of June 30, 2024, compared to HK$8.35 on June 30, 2023[33]. - The Group maintained a total bank borrowing of nil as of June 30, 2024, consistent with the previous year[33]. - The Group's net current assets rose to HK$13,057,439,000 as of June 30, 2024, compared to HK$346,741,000 on June 30, 2023, reflecting improved liquidity[34]. - The current ratio increased to 74.17 as of June 30, 2024, up from 3.82 in the previous year, indicating enhanced financial stability[34]. Development and Future Outlook - The Group is actively collaborating with various parties to explore development options for the Group Allocated Land in line with city planning and infrastructure optimization[23]. - The Group Allocated Land is designated for multi-purpose development, including residential and commercial use[22]. - The Group plans to actively adjust leasing and market strategies to maintain occupancy rates and recurring income amid a challenging economic environment[36]. - The Chinese government is expected to implement policies to stabilize the real estate sector and support domestic consumption, which may positively impact the Group's operations[36]. - Future development value of the Group Allocated Land is expected to be enhanced by optimized city planning and infrastructure projects near the opera house in Shenzhen[43].

Financial Performance - For the fiscal year ending June 30, 2024, the company reported a total revenue of HKD 71,573,000, a decrease of 10.3% from HKD 79,734,000 in the previous year[1] - The gross profit for the year was HKD 44,965,000, down from HKD 54,752,000, reflecting a decline of 18%[1] - The profit before tax was HKD 12,612,129, significantly higher than the previous year's profit before tax of HKD 1,006, indicating a substantial increase[1] - The net profit attributable to the company's owners was HKD 5,353,955, a decrease of 19.3% from HKD 6,634,000 in the prior year[2] - The total comprehensive income attributable to the company's owners was HKD 5,372,015, compared to a loss of HKD 147,116 in the previous year[2] - Basic earnings per share for the year was HKD 2,252.4, a significant increase from HKD 2.8 in the previous year[2] - The operating profit for 2024 is HKD 2,407,000, a decrease from HKD 5,513,000 in 2023, indicating a decline of about 56.3%[15] - The basic earnings per share for 2024 is HKD 5,353,955, compared to HKD 6,634 in 2023, showing a decrease of approximately 19.2%[20] - The company recorded a substantial profit attributable to shareholders of HKD 5,353,955,000 for the year, down from HKD 6,634,000 in 2023, with basic earnings per share of HKD 22.52 compared to HKD 2.8 cents[31] Assets and Liabilities - Non-current assets totaled HKD 1,846,256, a decrease from HKD 1,926,739 in the previous year[4] - Current assets increased significantly to HKD 13,235,899 from HKD 469,694, primarily due to the development of properties[4] - The total equity attributable to the company's owners rose to HKD 7,354,705 from HKD 1,985,068, reflecting a strong growth in reserves[7] - The total liabilities decreased to HKD 7,509,051 from HKD 249,194, indicating improved financial stability[7] - Trade receivables at the end of the reporting period were HKD 4,771,000, down from HKD 9,439,000 in 2023, with a net allowance for credit losses of HKD 2,124,000[28] - Trade payables at the end of June 30, 2024, were HKD 1,114,000, a decrease from HKD 2,150,000 in 2023[29] - Deferred tax liabilities increased primarily due to the deferred tax on the fair value gains of land distribution, with total deferred tax liabilities of HKD 7,496,793 as of June 30, 2024[30] Investment and Property Development - The group has acquired land use rights in Nanshan District, Shenzhen, China, for future property development, classified under new operating segments as per HKFRS 8[14] - The group’s property investment portfolio primarily includes office, residential, and commercial units in Shanghai and Beijing, along with parking spaces[14] - The group recorded a loss of HKD 939,000 from property development in Shenzhen, with no income generated in 2023[34] - The fair value of investment properties as of June 30, 2024, is HKD 1,838,227,000, slightly down from HKD 1,840,814,000 in 2023, indicating a decrease of about 0.1%[21] - The fair value of investment properties in Beijing decreased by RMB 11,369,000 (approximately HKD 12,477,000) during the year[35] - The fair value of investment properties in Shanghai decreased by RMB 10,433,000 (approximately HKD 11,450,000) during the year[36] - The group recognized a fair value decrease of HKD 23,927,000 in investment properties for the year 2024, compared to HKD 22,664,000 in 2023, indicating ongoing market challenges[21] Financial Management and Cash Flow - The financing costs for 2024 are reported at HKD (199,000), a significant reduction from HKD (3,133,000) in 2023, indicating improved financial management[15] - The group has fully repaid all bank financing, resulting in no borrowings, compared to zero borrowings as of June 30, 2023[43] - The group has eliminated all collateral related to bank financing, including rental income and sale proceeds from properties, and has no bank mortgage guarantees for residential buyers in Beijing[43] - The group's cash flow was bolstered by rental income from properties in Shanghai and Beijing, with total bank deposits and cash amounting to HKD 422,338,000 as of June 30, 2024, up from HKD 212,955,000 as of June 30, 2023[42] - The group's current assets net value reached HKD 13,057,439,000 as of June 30, 2024, compared to HKD 346,741,000 as of June 30, 2023, with a current ratio of 74.17[42] Market Conditions and Future Outlook - The Chinese economy faces challenges such as long-term real estate downturn and weak domestic consumption, but government policies are expected to stabilize the real estate sector and support economic growth[44] - In Beijing, the retail market is expected to remain stable, with government support policies likely to stimulate consumption and enhance market vitality[44] - The office market in Shanghai is facing challenges with expected rent declines and increased vacancy rates due to economic downturn[45] - Shenzhen is anticipated to continue its quality development supported by government initiatives, with recent sales of high-quality residential projects showing positive trends[45] - The group plans to adjust leasing and market strategies to maintain occupancy rates and regular income by introducing diverse retailers and upgrading services[44] Corporate Governance and Compliance - The company has adhered to the corporate governance code principles as per the listing rules, with a deviation noted in section F.2.2 due to the chairman's absence at the annual general meeting[50] - The audit committee has reviewed the applicable accounting principles and discussed financial reporting matters, confirming that the consolidated financial statements for the year ending June 30, 2024, have been audited by Deloitte with an unqualified opinion[51] - Deloitte has agreed that the figures in the preliminary performance announcement align with the audited consolidated financial statements for the year[52] - The board expresses gratitude for the continuous support from shareholders, banks, customers, suppliers, and other stakeholders, as well as the contributions from all employees[53] Dividends - The company has proposed a final dividend of HKD 0.005 per share for the year ending June 30, 2024, consistent with the previous year[19] - The board has proposed a final dividend of HKD 0.005 per share, maintaining the total dividend for the year at HKD 0.01 per share[47]

Financial Performance - The total revenue for the six months ended December 31, 2023, was HKD 38,307,000, a decrease of approximately 3% compared to HKD 39,606,000 in the same period last year[45]. - Gross profit for the same period was HKD 24,914,000, down about 7% from HKD 26,934,000 year-on-year, resulting in a gross margin of approximately 65%[45]. - For the six months ending December 31, 2023, the company reported a profit attributable to shareholders of HKD 5,365,693, a significant increase from HKD 1,476,257 in the same period of 2022, representing a growth of approximately 263%[119]. - The total comprehensive income attributable to shareholders for the same period was HKD 5,436,647, compared to a loss of HKD 88,954 in the previous year, indicating a strong turnaround[119]. - The earnings per share for the period was HKD 2,257.30, a substantial increase from HKD 0.62 in the prior year[119]. - The pre-tax profit increased significantly to HKD 12,615,624, compared to HKD 312 in the previous year, indicating a substantial growth[133]. - Net profit for the period was HKD 5,365,934, a significant increase from HKD 1,733 in the prior year[133]. - The group reported a significant increase in financing costs, with share of losses from joint ventures amounting to HKD 12,635,773, compared to a loss of HKD 3,828 in the previous year[144]. Assets and Liabilities - The company's right-of-use assets increased to HKD 6,553,000 as of December 31, 2023, up from HKD 1,053,000 as of June 30, 2023, indicating a substantial rise of 521.5%[33]. - The lease liabilities also saw a significant increase, rising to HKD 6,598,000 as of December 31, 2023, compared to HKD 1,134,000 as of June 30, 2023, representing an increase of 482.5%[33]. - The deferred tax liabilities increased significantly, primarily due to the deferred tax on fair value gains from land distribution, which will be settled upon completion and sale of related properties[26]. - The group's total equity as of December 31, 2023, was HKD 7,460,669, compared to HKD 2,024,286 as of June 30, 2023[135]. - Non-current liabilities, including deferred tax liabilities, increased to HKD 7,543,949 from HKD 234,029[135]. - The group has no bank borrowings as of December 31, 2023, maintaining a debt ratio of zero[77]. Cash Flow and Investments - As of December 31, 2023, the group's cash and bank deposits totaled HKD 450,822,000, up from HKD 212,955,000 as of June 30, 2023, indicating a significant increase in cash flow[64]. - The net cash from operating activities for the six months ended December 31, 2023, was HKD 3,908,000, a decrease of 71.5% compared to HKD 13,708,000 in the same period of 2022[152]. - The net cash used in investing activities was HKD 122,869,000, compared to a net cash outflow of HKD 6,998,000 in the previous year[152]. - The total cash and cash equivalents at the end of the period amounted to HKD 255,592,000, an increase from HKD 161,556,000 year-on-year[152]. Rental Income and Property Performance - The company reported a significant increase in rental income, with trade and other payables amounting to HKD 3,459,000 as of December 31, 2023, compared to HKD 2,150,000 as of June 30, 2023, reflecting a growth of approximately 60.5%[26]. - The rental income from the shopping mall in Beijing increased by approximately 11% year-on-year, totaling RMB 13,588,000 (equivalent to HKD 14,874,000), which accounted for 39% of the group's total revenue[69]. - In Shanghai, rental income from the premium office building decreased by about 8% year-on-year, amounting to RMB 21,407,000 (equivalent to HKD 23,433,000), representing 61% of the group's total revenue[71]. - The group's investment properties in Shanghai and Beijing generated rental income of RMB 34,995,000, a slight decrease of 1% compared to RMB 35,432,000 last year[54]. Joint Ventures and Development - The company has maintained a strong focus on its joint ventures, with a 80% profit share from the redevelopment of land in Shenzhen, China, as per the arbitration ruling[20]. - The group has acquired land use rights for a plot of land in Shenzhen, which is planned for development into properties for sale[40]. - The group holds an 80% equity interest in the joint venture, with an investment cost of RMB 42,840,000[197]. - The registered capital of the joint venture is confirmed at RMB 21,000,000, with the group contributing RMB 10,290,000, representing a 49% equity interest[197]. - The group expects to fully recover the receivable from the joint venture upon completion of land exchange and allocation with the planning authority[200]. Corporate Governance and Strategy - The company is actively pursuing new strategies, including the adoption of a new share option scheme approved by shareholders, aimed at incentivizing directors and employees[27]. - The audit committee has reviewed the accounting standards and practices adopted by the group, ensuring compliance with financial reporting matters[128]. - The company aims to enhance the retail market in Beijing through new branding and environmental improvements, focusing on maintaining occupancy rates and recurring income[98]. - The company plans to actively adjust leasing and market strategies to attract new retailers and retain existing ones, ensuring competitive and effective leasing strategies[98]. Market Outlook - The real estate market in Shenzhen is expected to recover and maintain optimism, supported by strong economic fundamentals and population growth[82]. - The office space market in Shanghai is anticipated to face challenges due to increased supply and weak demand, leading to rental and occupancy pressure[80]. - The group will continue to monitor the impact of RMB fluctuations to mitigate negative effects on financial performance[77].

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].