Financial Performance - The company reported a profit attributable to shareholders of HKD 520.0 million for the year ended December 31, 2023, compared to a loss of HKD 445.3 million in 2022, marking a turnaround from loss to profit [4]. - Earnings per share for the year were HKD 1.40, a significant improvement from a loss of HKD 1.19 per share in the previous year [4]. - Total revenue for the year was HKD 875.2 million, up from HKD 699.7 million in 2022, representing a year-over-year increase of approximately 25.1% [7]. - The financial management business contributed a net profit of HKD 162.4 million, recovering from a loss of HKD 861.0 million in 2022 [4]. - Operating profit for the year was HKD 386.8 million, a recovery from an operating loss of HKD 578.6 million in 2022 [7]. - The consolidated profit before tax for 2023 was HKD 339,406,000, a significant recovery from a loss of HKD 672,593,000 in 2022 [30]. - Other income for 2023 included a net gain from the sale of properties amounting to HKD 98,007,000, compared to a loss of HKD 615,080,000 in 2022 [32]. - The company reported a fair value change of financial assets amounting to HKD 152,218,000 in 2023, a recovery from a loss of HKD 480,831,000 in 2022 [32]. Revenue Sources - The company’s total income from customer contracts was HKD 684.3 million, an increase from HKD 570.4 million in the previous year [7]. - The revenue from operating driving school courses was HKD 670,465,000, up from HKD 556,888,000, reflecting a growth of 20.3% [23]. - The group's customer contract revenue for 2023 was HKD 684,265,000, an increase of 19.9% from HKD 570,388,000 in 2022 [23]. - The group reported interest income from bank deposits of HKD 111,256,000, significantly up from HKD 29,355,000, representing a growth of 278.5% [25]. - Revenue from the driving school increased by 20.4% to HKD 670.5 million (2022: HKD 556.9 million) due to higher demand for driving courses and increased average class fees [61]. Dividends and Shareholder Returns - The company declared a total dividend of HKD 0.42 per share for the year, consistent with the previous year, amounting to a total payout of approximately HKD 156.5 million [5]. - The company declared an interim dividend of HKD 0.18 per share for 2023, consistent with the previous year, totaling HKD 67,084,000 [45]. - The company plans to continue diversifying its investments, including non-listed funds, equity securities, and debt securities, to enhance shareholder returns [54]. - The group aims to enhance shareholder returns through a prudent investment strategy that includes non-listed fund investments and equity securities [66]. Assets and Liabilities - Total assets less current liabilities increased to HKD 7,686,853,000 in 2023 from HKD 7,057,551,000 in 2022, representing an increase of approximately 8.8% [12]. - The company's net asset value reached HKD 7,413,033,000 in 2023, up from HKD 7,043,600,000 in 2022, reflecting a growth of about 5.2% [12]. - Total liabilities increased to HKD 828,992,000 in 2023 from HKD 782,585,000 in 2022, reflecting a rise of about 5.9% [12]. - The total liabilities increased to HKD 130,455,000 in 2023 from HKD 111,348,000 in 2022, marking an increase of approximately 17.2% [43]. - The group held an investment portfolio with a book value of HKD 4,926.2 million as of December 31, 2023, up from HKD 4,459.0 million in 2022 [62]. Market and Operational Insights - The company plans to focus on market expansion and new product development in the upcoming fiscal year [30]. - The company plans to expand its business into the Greater Bay Area, focusing on smart city service opportunities [52]. - The overall business environment and investment portfolio of the company may face pressure due to external uncertainties, including high interest rates and geopolitical conflicts [48]. - The driving training market in Hong Kong is anticipated to weaken in 2024 compared to 2023, despite expected economic growth [49]. - The implementation of the "Easy Pay" system began on May 7, 2023, with expectations of increased total revenue from payment services in 2024 [51]. Governance and Compliance - The company has complied with the Corporate Governance Code as per the Main Board Listing Rules, except for the absence of formal appointment letters for directors, which deviates from the code [70]. - All directors confirmed adherence to the Securities Trading Standard Code throughout the year [71]. - The company or its subsidiaries did not purchase, sell, or redeem any shares during the year [72]. - The 2023 annual report will be published on the company's website and the HKEX news website, and will be sent to shareholders [72].

Financial Performance - Total revenue for the six months ended June 30, 2023, was HKD 412,205,000, representing a 35.8% increase from HKD 303,508,000 in the same period of 2022[5]. - The company reported a net profit of HKD 460,386,000 for the six months ended June 30, 2023, compared to a net loss of HKD 163,719,000 in the prior year[6]. - Earnings per share for the period was HKD 1.13, a significant improvement from a loss per share of HKD 0.52 in the previous year[5]. - The company's operating profit for the period was HKD 230,363,000, recovering from an operating loss of HKD 301,944,000 in the same period last year[5]. - Other income for the period included a net gain of HKD 73,591,000, a substantial recovery from a net loss of HKD 394,841,000 in the previous year[5]. - The total comprehensive income for the period was HKD 457,909,000, compared to a total comprehensive loss of HKD 189,052,000 in the same period of 2022[6]. - The total comprehensive income for the six months ended June 30, 2023, was HKD 420,212,000, with a profit of HKD 422,658,000[11]. - The total comprehensive loss for the period was HKD 217,549, which includes other comprehensive losses[10]. Assets and Liabilities - As of June 30, 2023, total assets minus current liabilities increased to HKD 7,626,206, up from HKD 7,057,551 as of December 31, 2022, representing an increase of approximately 8%[9]. - Non-current assets, including property, plant, and equipment, rose to HKD 476,357 from HKD 236,037, indicating a growth of 102%[8]. - The company's net asset value increased to HKD 7,386,553, compared to HKD 7,043,600 at the end of 2022, reflecting a growth of about 5%[9]. - Cash and cash equivalents stood at HKD 2,433,095, slightly down from HKD 2,453,206, a decrease of approximately 0.8%[8]. - Trade and other receivables decreased to HKD 124,508 from HKD 158,405, a decline of about 21%[8]. - The company's total liabilities decreased to HKD 8,399,299,000 as of June 30, 2023, from HKD 7,811,589,000 at the end of 2022, showing a reduction in financial leverage[27]. - The total current financial assets increased to HKD 1,175,484,000 as of June 30, 2023, compared to HKD 1,115,170,000 as of December 31, 2022[34]. Dividends and Shareholder Returns - The company declared dividends totaling HKD 22,361 during the fiscal year, reflecting ongoing shareholder returns despite the losses[10]. - The company declared an interim dividend of HKD 0.06 per share for both the first and second quarters, totaling HKD 44,722,000, consistent with the previous year[48]. - The company plans to declare a second-quarter interim dividend on August 22, 2023, with further details provided in the notes[60]. Market and Operational Outlook - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[6]. - The management expressed optimism about future performance, citing strong user data and market demand as key drivers[6]. - The outlook for the second half of 2023 remains cautious due to global economic uncertainties, despite expected strong local demand and inbound tourism[68]. Investment and Financial Management - The financial management segment generated income from dividends and interest, managing a portfolio that includes non-listed funds, equity securities, and debt securities[21]. - The group has decided to change its accounting policies to align with the new guidelines issued by the Hong Kong Institute of Certified Public Accountants, although the impact of this change has not yet been fully assessed[18]. - The group anticipates the implementation of a subsidy plan by the government to assist employers after the cancellation of the offsetting mechanism for long service payments[18]. - The group recorded a profit attributable to shareholders of HKD 422.7 million for the six months ended June 30, 2023, compared to a loss of HKD 192.2 million for the same period in 2022[65]. - The financial management business contributed a net profit of HKD 117.0 million, a significant recovery from a loss of HKD 375.6 million in the previous year[73]. Employee and Governance - The total employee costs for the period were HKD 158.5 million, an increase from HKD 124.0 million as of June 30, 2022[87]. - The company has complied with the Corporate Governance Code during the reporting period, with the exception of not having formal appointment letters for directors[97]. - The audit committee has reviewed the interim report and discussed accounting principles, internal controls, and risk management with management[99]. Changes in Management - There have been changes in the board of directors, with Mr. Lu Yujing resigning and Mr. Huang Longde appointed as an independent non-executive director[101].

Financial Performance - The group recorded a profit attributable to shareholders of HKD 422.7 million for the six months ended June 30, 2023, compared to a loss of HKD 192.2 million for the same period in 2022[4]. - Earnings per share for the period were HKD 1.13, a significant improvement from a loss per share of HKD 0.52 in the previous year[4]. - Total comprehensive income for the period was HKD 457.9 million, compared to a loss of HKD 189.1 million in the previous year[9]. - The group reported a significant reduction in financial management losses, with net profit from financial management activities reaching HKD 117.0 million, compared to a loss of HKD 375.6 million in the previous year[4]. - The operating profit before tax for the reportable segments was HKD 510,275,000, compared to a loss of HKD 118,521,000 in the previous year[23]. - The group recorded a net profit attributable to shareholders of HKD 422,658,000 for the six months ended June 30, 2023, compared to a loss of HKD 192,206,000 in the same period of 2022[27]. Revenue Growth - Revenue from customer contracts under HKFRS 15 was HKD 324.2 million, up from HKD 243.6 million in the prior year, representing a growth of approximately 33%[7]. - The total revenue for the six months ended June 30, 2023, was HKD 412,205,000, an increase from HKD 303,508,000 in the same period of 2022, representing a growth of approximately 35.8%[18]. - Revenue from driving school courses amounted to HKD 320,574,000, up from HKD 240,248,000, reflecting a growth of about 33.4% year-on-year[18]. - In the first half of 2023, the group's operating income from driving schools increased significantly by 33.4% compared to the same period last year, driven by higher demand for non-motorcycle driving training courses and an increase in average class fees[38]. - The group's total revenue for the first half of 2023 was HKD 412.2 million, a 35.8% increase from HKD 303.5 million in the same period last year, primarily due to increased income from driving schools[42]. Assets and Liabilities - The group's total assets less current liabilities increased to HKD 7.63 billion as of June 30, 2023, compared to HKD 7.06 billion at the end of 2022[11]. - Non-current assets amounted to HKD 4.64 billion, up from HKD 4.07 billion at the end of 2022, indicating a growth of approximately 14%[10]. - The net asset value attributable to equity shareholders increased to HKD 7.17 billion, compared to HKD 6.86 billion at the end of 2022[11]. - The total liabilities decreased to HKD 26,174,000 from HKD 28,547,000 year-over-year[23]. - The total current financial assets, after deducting loss provisions, were HKD 1,175,484,000 as of June 30, 2023, compared to HKD 1,098,568,000 at the end of 2022[31]. Dividends - The company declared an interim dividend of HKD 0.06 per share for the first quarter, totaling approximately HKD 22.4 million, with a similar dividend planned for the second quarter[5]. - The company declared an interim dividend of HKD 0.06 per share for both the first and second quarters, totaling HKD 44,722,000 for the first half of 2023, consistent with the previous year[28]. - The company approved and distributed a final dividend of HKD 0.24 per share for the last fiscal year, amounting to HKD 89,445,000, unchanged from the previous year[29]. Financial Management - The interest income from debt securities measured at fair value through profit or loss was HKD 13,818,000, significantly up from HKD 1,170,000 in the previous year[18]. - The interest income from bank deposits increased significantly to HKD 47,785,000 from HKD 3,182,000, marking a substantial rise[18]. - The total income from financial operations and others was HKD 22,808,000, down from HKD 27,959,000, indicating a decrease of approximately 18.5%[18]. - The financial management segment generated dividend income of HKD 21,857,000, down from HKD 26,808,000 in the previous year[21]. - Interest income increased significantly to HKD 65,173,000 for the six months ended June 30, 2023, compared to HKD 31,951,000 in the same period of 2022[21]. Investments - The group’s investment portfolio value slightly increased to HKD 4,835.5 million as of June 30, 2023, from 87 investments at the end of 2022 to 92 investments[41]. - New financial assets added during the period amounted to HKD 561.1 million, including investments in non-listed funds of HKD 235.5 million and treasury bills of HKD 207.2 million[50]. - The total investment in listed and non-listed equity securities was HKD 1,242.5 million, a marginal increase from HKD 1,234.0 million as of December 31, 2022[47]. - The group held a total of 51 non-listed funds with a fair value of HKD 2,703.9 million, representing 32.1% of total assets as of June 30, 2023[52]. - The fair value gain on financial assets measured at fair value through profit or loss was HKD 73.5 million, compared to a loss of HKD 394.9 million in the same period last year[43]. Market and Operations - The average daily traffic volume for the West Tunnel increased by 40.7% to 62,677 vehicles in the first half of 2023, up from 44,531 vehicles in the same period last year[40]. - The market share of the West Tunnel increased from approximately 20.9% in the previous year to about 25.5% in the first half of 2023[40]. - The company plans to continue expanding its operations in the electronic toll collection and smart city services sectors[21]. - The group anticipates continued strong local demand and inbound tourism in the second half of 2023, supported by government initiatives such as consumption vouchers and various promotional activities[37]. Compliance and Governance - The group has complied with the Corporate Governance Code, with minor deviations noted regarding the formal appointment of directors[56]. - The company is currently assessing the impact of new accounting guidelines on its financial policies, but the effects have not yet been fully estimated[16]. - The company has not applied any new standards or interpretations that have not yet come into effect during the reporting period[14].

Financial Performance - The company reported a loss attributable to shareholders of HKD 445.3 million for the year ended December 31, 2022, compared to a loss of HKD 49.2 million in 2021, primarily due to a net loss in financial management business of HKD 861.0 million [7]. - Earnings per share for the year were HKD 1.19, compared to a loss of HKD 0.13 per share in 2021 [7]. - The company declared a final dividend of HKD 0.24 per share for the year, maintaining the total dividend at HKD 0.42 per share, amounting to a total payout of approximately HKD 156.5 million [8]. - Total revenue for the year was HKD 702.2 million, a slight increase from HKD 699.7 million in 2021, with driving school revenue rising to HKD 569.5 million from HKD 540.5 million [44]. - The financial management business recorded a net loss of HKD 861.0 million, which included a fair value loss of HKD 615.0 million on financial assets measured at fair value through profit or loss [45]. Economic Environment - The fifth wave of COVID-19 significantly impacted Hong Kong's economic activities, with GDP contracting by 4.2% in the fourth quarter of 2022 [9]. - The unemployment rate rose to 5.4% in April 2022, but improved to 3.5% by December 2022 [11]. - Global economic growth is expected to slow further, with inflation remaining high, posing risks to the company's overall performance [9]. - The group anticipates that the Hong Kong economy will recover in 2023 due to the reopening of the mainland economy, despite ongoing global economic challenges [18]. Business Operations - The driving school segment saw increased revenue due to higher demand for motorcycle training, despite challenges from the pandemic [11]. - The operating revenue increased by 3% compared to the previous year, driven by higher income from motorcycle driving training courses and stable performance in non-motorcycle training courses [22]. - The group plans to continue diversifying its investment portfolio, focusing on non-listed funds and equity securities, while reducing investments in interest-bearing instruments to minimize credit risk [17]. - The group is focusing on expanding its business from Hong Kong to the Greater Bay Area, targeting opportunities in smart city services [12]. Investment Portfolio - The group's investment portfolio increased slightly to HKD 4,459.0 million as of December 31, 2022, up from HKD 4,310.2 million in 2021, with 87 investments in total [17]. - The investment portfolio included non-listed fund investments of HKD 3,125.6 million, listed and non-listed equity securities of HKD 1,234.0 million, and listed debt securities of HKD 82.8 million [51]. - The investment portfolio's total value increased by HKD 148.8 million during the year, reaching a book value of HKD 4,459.0 million as of December 31, 2022 [51]. - The group aims to enhance shareholder returns by increasing the value of its financial management business through a prudent investment strategy [55]. Governance and Compliance - The company has a strong governance structure, ensuring compliance with the Corporate Governance Code and regular reviews of governance policies [68]. - The board of directors is responsible for the company's governance functions and has conducted annual reviews of governance policies and practices [68]. - The company has established a risk management committee to oversee compliance with licensing conditions related to electronic payment tools [62]. - The company has adopted a code to regulate securities trading by directors, ensuring compliance with the standards set forth in the Securities Code [105]. Environmental, Social, and Governance (ESG) Initiatives - The company has identified significant environmental, social, and governance (ESG) issues and integrated them into its operational strategies, emphasizing the importance of sustainability in investment decisions [128]. - The company has committed to achieving carbon neutrality by 2050, establishing a dedicated team to identify climate impacts and solutions, and setting new greenhouse gas emission reduction targets [130]. - The company aims to reduce its greenhouse gas emission intensity by 3% over the next five years, using 2021 as the baseline year [140]. - The company has implemented measures to promote green practices in daily operations, including energy-saving initiatives and waste reduction strategies [140]. Employee Management - The employee turnover rate for the year was 34%, up from 28% in 2021, primarily due to increased competition for technical personnel in the labor market [30]. - The company provides competitive compensation packages, including medical insurance, retirement plans, and paid leave, to attract and retain talent [171]. - Approximately 66.67% of employees participated in training in 2022, with an average training duration of 7.10 hours per employee [180]. - The company emphasizes equal employment opportunities, ensuring no discrimination based on age, race, gender, or other personal characteristics [172]. Supplier Management - All suppliers are evaluated based on a strict and standardized procurement system, with regular monitoring and assessment conducted [187]. - The group collaborates with 171 local suppliers and 13 overseas suppliers in 2022 [188]. - The group prioritizes local suppliers to reduce greenhouse gas emissions from overseas procurement and transportation [190]. - The group expects suppliers to adopt fair labor practices and demonstrate their commitment to ethical standards [189].

Financial Performance - The group recorded a loss attributable to shareholders of HKD 445.3 million for the year ended December 31, 2022, compared to a loss of HKD 49.2 million in 2021, primarily due to a net loss in financial management business of HKD 861.0 million[4]. - Total revenue for the year was HKD 702.2 million, a slight increase from HKD 699.7 million in 2021, with customer contract revenue at HKD 572.9 million, up from HKD 552.9 million[7]. - The basic and diluted loss per share for the year was HKD 1.19, compared to a loss of HKD 0.13 per share in 2021[4]. - Operating loss for the year was HKD 576.1 million, compared to an operating loss of HKD 448.5 million in 2021[7]. - The group reported a loss before tax of HKD 326,664,000 for 2022, compared to a profit of HKD 57,086,000 in 2021, indicating a significant decline in profitability[26]. - The group’s total comprehensive loss for the year was HKD 242.7 million, compared to a loss of HKD 1.6 billion in 2021[10]. Revenue and Income Sources - Financial management business revenue increased to HKD 57.6 million from HKD 29.9 million in the previous year[7]. - Revenue from driving school operations increased to HKD 556,888,000 in 2022 from HKD 537,787,000 in 2021, reflecting a growth of about 3.1%[24]. - The segment revenue from electronic road toll facilities rose to HKD 13,500,000 in 2022, compared to HKD 12,600,000 in 2021, marking an increase of approximately 7.1%[24]. - Dividend income from equity instruments increased significantly to HKD 53,822,000 in 2022 from HKD 27,503,000 in 2021, representing a growth of about 95.9%[24]. - Interest income from debt securities measured at fair value through profit or loss rose to HKD 9,814,000 in 2022, up from HKD 3,874,000 in 2021, an increase of approximately 153.5%[24]. Assets and Liabilities - Total assets less current liabilities decreased to HKD 7,057,551,000 in 2022 from HKD 7,567,350,000 in 2021, representing a decline of approximately 6.7%[12]. - The company's equity attributable to shareholders decreased to HKD 6,860,316,000 in 2022 from HKD 7,336,578,000 in 2021, reflecting a decline of approximately 6.5%[12]. - Cash and cash equivalents decreased to HKD 2,453,206,000 in 2022 from HKD 2,805,940,000 in 2021, a reduction of approximately 12.5%[11]. - The company reported trade receivables and other receivables of HKD 158,405,000 in 2022, significantly up from HKD 45,172,000 in 2021, an increase of approximately 250.5%[11]. - The company’s total assets amounted to HKD 7,043,600,000 in 2022, down from HKD 7,537,973,000 in 2021, a decrease of about 6.6%[12]. Impairments and Losses - The company's financial assets impairment loss was HKD 62.9 million, up from HKD 37.6 million in 2021[7]. - The group recognized a total impairment provision of HKD 85,000,000 for overdue interest-bearing instruments, reflecting a significant increase in financial risk[37]. - The fair value changes of financial assets through profit or loss included a loss of HKD 480,831,000 for non-listed fund investments in 2022, compared to a loss of HKD 20,892,000 in 2021[28]. - The company reported a net loss of HKD 615,080,000 from the sale of properties, plant, and equipment in 2022, compared to a loss of HKD 532,636,000 in 2021[28]. Dividends - The board proposed a final dividend of HKD 0.24 per share, maintaining the total annual dividend at HKD 0.42 per share, consistent with 2021, amounting to a total dividend payout of approximately HKD 156.5 million[5]. - The group declared an interim dividend of HKD 0.18 per share for 2022, consistent with 2021, totaling HKD 67,084,000[43]. Economic and Market Conditions - The overall economic environment in Hong Kong faced challenges, with GDP contracting by 4.2% in the fourth quarter of 2022, influenced by the COVID-19 pandemic and global economic conditions[46]. - The group anticipates a recovery in consumer spending and foreign investment in 2023, although global economic growth may continue to slow[46]. - The group faces potential risks from geopolitical tensions and inflation, which could adversely affect overall performance and financial condition[46]. Strategic Focus and Future Outlook - Management is focusing on expanding business opportunities in smart city services, including smart transportation and logistics[48]. - The company plans to continue its proactive marketing strategies and efforts in market segmentation to maintain its leading position in the market[47]. - The outlook for 2023 is cautious, with expectations of improved market conditions as inflation may have peaked and interest rate hikes could slow down[53].

Financial Performance - Total revenue for the six months ended June 30, 2022, was HKD 303,508,000, a decrease of 10.7% from HKD 339,829,000 in the same period of 2021[9] - The company reported a net loss of HKD 163,719,000 for the period, compared to a profit of HKD 473,696,000 in the prior year, representing a significant decline[9] - Earnings per share for the period was a loss of HKD 0.52, down from earnings of HKD 1.20 per share in the previous year[9] - The total comprehensive loss for the period was HKD 189,052,000, compared to a comprehensive income of HKD 351,760,000 in the prior year[10] - The company reported a loss of HKD 192,206 for the six months ended June 30, 2022, compared to a profit of HKD 446,285 for the same period in 2021, indicating a significant decline in profitability[16] - Total comprehensive income for the six months ended June 30, 2022, was HKD (217,549), compared to HKD 324,341 for the same period in 2021, marking a decrease of approximately 167%[17] - The company declared dividends totaling HKD 22,361 during the fiscal year, compared to HKD 89,445 in the previous fiscal year, indicating a reduction in dividend payouts[17] Asset and Liability Management - The company's non-current assets, including property, plant, and equipment, totaled HKD 295,951,000 as of June 30, 2022, down from HKD 320,433,000 at the end of 2021[13] - Current assets amounted to HKD 4,060,898,000, slightly down from HKD 4,087,440,000 at the end of 2021[13] - Total assets decreased to HKD 7,239,276, down from HKD 7,567,350 as of December 31, 2021, representing a decline of approximately 4.35%[14] - Net asset value decreased to HKD 7,217,045 from HKD 7,537,973, reflecting a decrease of about 4.26%[14] - The company's equity attributable to shareholders decreased to HKD 7,007,223 from HKD 7,336,578, a decline of about 4.22%[17] - The total liabilities decreased from HKD 120,766,000 in 2021 to HKD 51,304,000 in 2022, indicating a significant reduction of approximately 57.5%[63] Cash Flow and Investments - Operating cash flow for the six months ended June 30, 2022, was HKD 39,245,000, a decrease of 64.9% from HKD 111,791,000 in the same period of 2021[18] - Net cash used in investing activities was HKD 6,886,000, a significant improvement compared to a net cash outflow of HKD 220,200,000 in the prior year[18] - The company received dividends from associates amounting to HKD 327,500,000, down from HKD 348,500,000 in the same period last year[18] - The company reported a decrease in interest income from financial instruments, with HKD 32,279,000 received compared to HKD 84,660,000 in the previous year[18] - The total fair value of financial assets measured at fair value through other comprehensive income was HKD 144,872,000, with HKD 63,040,000 in equity securities listed in Hong Kong[69] Market and Operational Insights - Revenue from driving school operations was HKD 240,248,000, slightly down from HKD 243,941,000, representing a decrease of 1.1%[33] - Revenue from electronic road toll facilities increased to HKD 2,100,000 from HKD 1,800,000, marking a growth of 16.7%[33] - The average daily traffic for the Western Cross Harbour Tunnel decreased by 16.8% to 44,531 vehicles in the first half of 2022, down from 53,553 vehicles in the same period last year[90] - The total number of users for the electronic road pricing system was approximately 359,000 as of June 30, 2022, with an overall usage rate of about 48%[89] Strategic Focus and Future Outlook - The company plans to focus on enhancing operational efficiency and exploring new market opportunities to recover from the current financial downturn[9] - The group anticipates significant challenges and unexpected risks to its overall performance and financial condition due to ongoing uncertainties from COVID-19, the Russia-Ukraine conflict, and supply chain disruptions[86] - The investment strategy focuses on diversifying across various asset classes to reduce investment concentration risk and enhance shareholder returns[107] - The future outlook for non-listed fund investments and equity securities will depend on multiple factors, including political, economic, and industry-specific risks[107] Corporate Governance and Compliance - The company has complied with the Corporate Governance Code, with the exception of not having formal appointment letters for directors[120] - The company has adopted a code of conduct for securities trading that meets or exceeds the standards set out in the Listing Rules[121] - The audit committee has reviewed the interim report and discussed accounting principles and internal controls with management[122]

Financial Performance - The company reported a loss attributable to shareholders of HKD 492 million for the year ended December 31, 2021, compared to a profit of HKD 725.2 million in 2020, primarily due to a net loss in financial management operations of HKD 529.3 million[12]. - The earnings per share for the year was HKD 0.13, down from earnings of HKD 1.95 per share in 2020[12]. - Total revenue for the year was HKD 699.7 million, a decrease from HKD 760.5 million in 2020, primarily due to a decline in financial management business revenue[52]. - The financial management business incurred a net loss of HKD 529.3 million, significantly worsening from a profit of HKD 288.1 million in 2020[53]. - Revenue from the driving school operations increased by 13.3% to HKD 537.8 million, driven by higher demand for driving courses[55]. - The profit attributable to the company's share of the Hong Kong Western Tunnel increased by 10.3% to HKD 460.2 million, with toll revenue rising by 13.9% to HKD 1,697.4 million due to a 15.8% increase in traffic flow[55]. Dividends - A final dividend of HKD 0.24 per share has been proposed, bringing the total dividend for the year to HKD 0.42 per share, amounting to a total of HKD 156.5 million[13]. - The total dividend for the year was HKD 0.42 per share, amounting to approximately HKD 156.5 million, consistent with the previous year[183]. - The proposed final dividend is HKD 0.24 per share, totaling HKD 89,445,000, consistent with the previous year's dividend[186]. Economic Environment - The local GDP of Hong Kong rebounded by 6.4% in 2021, supported by the stabilization of local pandemic conditions and strong recovery in the Chinese economy[14]. - The unemployment rate in December 2021 dropped to 3.9%, with retail sales increasing by 6.1% year-on-year[14]. - The company anticipates that the global economy will face uncertainties due to the ongoing COVID-19 pandemic and geopolitical tensions, which may hinder stable recovery[14]. - The group anticipates continued severe impacts from COVID-19 in 2022, with economic pressures from new variants and global inflation affecting financial and investment markets[25]. Operations and Strategy - The driving school operations showed improvement with increased revenue due to a rise in the number of driving courses offered and higher unit fees[16]. - The company plans to continue effective marketing strategies and market segmentation to maintain its leading position in the driving training market[16]. - The operational leases for driving schools in Kwun Tong, Ap Lei Chau, and Siu Lek Yuen will expire in July 2023, August 2023, and February 2028, respectively, which may impact future operations[16]. - The company will closely monitor the pandemic's progress and take necessary actions to protect customers and employees, ensuring business continuity[16]. - Autotoll operates 52 automatic toll lanes across ten different toll roads and tunnels in Hong Kong, with a net increase in tagged users primarily from motorcycle tags despite challenges from COVID-19 and competition[17]. - The average daily traffic for the Western District Tunnel increased by 15.8% to 57,231 vehicles, while the average toll per vehicle decreased from HKD 82.3 to HKD 81.3, resulting in a market share increase to 23.4%[20]. Investment Portfolio - The group recorded a fair value decrease of HKD 1,472.8 million in its investment portfolio for 2021, compared to a fair value increase of HKD 1,216.9 million in 2020, due to significant price volatility in the new energy vehicle sector[24]. - The group has diversified its investment portfolio by increasing non-listed fund investments while reducing exposure to the Chinese real estate sector to mitigate risks associated with the debt crisis[24]. - The company recorded a net fair value loss of HKD 1,572.2 million on financial assets measured at fair value through other comprehensive income[54]. - The loss from fair value of equity securities was HKD 496 million, primarily due to losses from China Evergrande Group[53]. - The group maintains a cautious outlook on the performance of Hong Kong and overseas financial markets, expecting significant fluctuations in the value of its investment portfolio[24]. - The group’s investment strategy aims to enhance shareholder returns by diversifying investments across liquid listed equity securities, stable income-generating listed debt securities, and high-growth non-listed fund investments[61]. Risk Management and Governance - The company has established a risk management committee to oversee compliance with licensing conditions related to electronic payment tools[67]. - The company’s business strategy focuses on creating long-term value and sustainable returns for shareholders[66]. - The company is committed to enhancing risk monitoring and management mechanisms across its business segments[68]. - The company has maintained a commitment to good corporate governance principles, emphasizing effective board management and robust risk management systems[74]. - The board is responsible for ensuring compliance with the Corporate Governance Code and has conducted annual reviews of governance policies and practices[75]. - The company has a dedicated disclosure team to oversee and coordinate the handling of inside information, ensuring compliance with the Securities and Futures Ordinance[76]. - The board has reviewed the training and continuous professional development of directors, ensuring adherence to legal and regulatory compliance[75]. - The company has a strong focus on balancing the interests of various stakeholders while improving overall performance[74]. Environmental, Social, and Governance (ESG) Initiatives - The company has adopted a comprehensive Corporate Social Responsibility policy to ensure sustainable development and social responsibility[126]. - The company is accelerating its low-carbon transition in response to the government's climate action plan to achieve carbon neutrality by 2050, including the establishment of a dedicated team to identify climate impacts and solutions[128]. - New greenhouse gas emission reduction targets have been set as part of the company's roadmap for operational decarbonization, alongside commitments to energy saving, water conservation, and waste reduction[128]. - The company has conducted a materiality assessment to identify key ESG issues that significantly impact its business and stakeholders, prioritizing these for strategic planning and resource allocation[133]. - The company is committed to enhancing stakeholder awareness of environmental protection through sustainable practices in its offices and workplaces[135]. - The group aims to reduce its greenhouse gas emission intensity by 3% over the next five years, using 2021 as the baseline year[136]. - The group has implemented measures to monitor vehicle emissions and adhere to emission control measures[136]. - The group promotes environmental awareness among employees through various initiatives, including recycling and the use of eco-friendly stationery[139]. Employee Management - The employee turnover rate increased to 28% from 19.5% in 2020, primarily affecting frontline staff and technical personnel[37]. - The total number of employees decreased from 690 in 2020 to 662 in 2021, representing a reduction of approximately 4.06%[153]. - Employee turnover rate for 2021 was approximately 20.85%, with male turnover at 18.78% and female turnover at 26.74%[155]. - The company provided various employee benefits including medical insurance, retirement plans, and training subsidies to attract and retain talent[159]. - Approximately 73.11% of employees participated in training in 2021, with an average training duration of 6.52 hours per employee[163]. - The company emphasizes the importance of occupational health and safety, implementing measures to manage workplace hazards and ensure a safe working environment[161]. Supplier and Customer Relations - The company has maintained strong relationships with suppliers, ensuring timely services at favorable prices[31]. - The company collaborated with 96 local suppliers and 2 overseas suppliers, focusing on the automotive and parts, printing materials, and office equipment sectors[167]. - The company implemented supplier hiring practices for all suppliers in 2021, ensuring compliance with ethical and legal standards[167]. - In 2021, there were no significant claims or complaints from customers, and the costs arising from corrective actions were not substantial[168]. Compliance and Legal Matters - The company reported no significant violations of anti-corruption laws in 2021, including the Prevention of Bribery Ordinance[171]. - The company has established strict management requirements for protecting customer privacy and confidential information[168]. - The company has a policy in place to ensure compliance with health and safety, advertising, labeling, and privacy matters[168].

Financial Performance - Total revenue for the six months ended June 30, 2021, was HKD 339.829 million, a decrease of 9.3% from HKD 374.740 million in the same period of 2020[9]. - Operating profit for the period was HKD 265.753 million, significantly up from HKD 259, indicating a strong operational performance[9]. - Net profit attributable to equity shareholders was HKD 446.285 million, an increase of 142.5% compared to HKD 184.347 million in the previous year[9]. - Basic earnings per share rose to HKD 1.20, compared to HKD 0.49 in the same period last year, reflecting improved profitability[9]. - Total comprehensive income for the period was HKD 324,341,000, down from HKD 1,633,256,000 in the previous year, a decline of 80.2%[15]. - The company reported a profit of HKD 446,285,000 for the six months ended June 30, 2021, compared to HKD 540,896,000 for the same period in 2020, indicating a decrease of 17.5%[15]. - The group’s profit attributable to shareholders for the first half of 2021 was HKD 446.3 million, an increase of 142.1% compared to HKD 184.3 million in the same period of 2020[75]. - Earnings per share for the first half of 2021 were HKD 1.20, compared to HKD 0.49 in the same period of 2020[75]. Assets and Liabilities - Non-current assets totaled HKD 6.011 billion as of June 30, 2021, up from HKD 5.528 billion at the end of 2020[12]. - Current assets decreased to HKD 4.284 billion from HKD 4.638 billion at the end of 2020, primarily due to a reduction in cash and bank deposits[12]. - The company’s total liabilities decreased to HKD 740.849 million from HKD 800.260 million at the end of 2020, indicating improved financial stability[12]. - Total assets decreased to HKD 9,553,756,000 as of June 30, 2021, compared to HKD 9,365,501,000 on December 31, 2020, representing an increase of 2%[13]. - Net asset value increased to HKD 9,514,249,000 from HKD 9,298,865,000, reflecting a growth of 2.3%[13]. - The group’s total liabilities as of June 30, 2021, were HKD 595,048,000, compared to HKD 504,063,000 as of December 31, 2020, indicating an increase of 17.9%[56]. Cash Flow - Operating cash flow for the six months ended June 30, 2021, was HKD 111,791,000, an increase of 15.5% from HKD 96,591,000 in the same period of 2020[16]. - Net cash generated from operating activities was HKD 105,017,000, up 70.5% compared to HKD 61,661,000 in the prior year[16]. - Cash and cash equivalents decreased by HKD 258,862,000, compared to an increase of HKD 373,424,000 in the same period of 2020[16]. - Investment activities resulted in a net cash outflow of HKD 220,200,000, compared to a net cash inflow of HKD 446,370,000 in the same period of 2020[16]. Dividends - The company declared dividends totaling HKD 22,361,000 during the fiscal year, compared to HKD 89,445,000 in the previous year, a reduction of 75%[15]. - The company declared an interim dividend of HKD 0.06 per share for both the first and second quarters, totaling HKD 44,722,000 for the six months ended June 30, 2021, consistent with the previous year[57]. - The company approved and distributed a final dividend of HKD 0.24 per share for the last fiscal year, amounting to HKD 89,445,000, unchanged from the previous year[58]. Investments - The group held investments in Evergrande Auto valued at HKD 1,567,970,000 as of June 30, 2021, down from HKD 1,638,501,000 at the end of 2020[40]. - The group’s total financial assets measured at fair value through profit or loss amounted to HKD 2,178,517,000 as of June 30, 2021, compared to HKD 1,754,345,000 as of December 31, 2020[39]. - The fair value of the investment in Evergrande Auto was HKD 1,568.0 million, representing 15.2% of the group's total assets, with a fair value loss of HKD 70.5 million during the period[93]. - The investment portfolio's book value as of June 30, 2021, was HKD 7,150.9 million, up from HKD 5,946.4 million as of December 31, 2020[89]. Operational Highlights - Revenue from driving school courses increased to HKD 243,941,000, up 12.3% from HKD 217,080,000 in the previous year[21]. - The segment profit before tax for the driving school segment rose to HKD 93,191 thousand in the first half of 2021, compared to HKD 68,908 thousand in the same period of 2020, an increase of 35.19%[27]. - The group experienced a 12.4% increase in operating income from its driving school business due to an increase in the number of driving courses offered[80]. - Revenue from tunnel fees for the six months ended June 30, 2021, was HKD 788,086,000, an increase of 8.8% compared to HKD 724,142,000 for the same period in 2020[45]. Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[9]. - The management expressed optimism about future performance, citing a strong pipeline of new products and strategic initiatives[9]. - Future performance of the investment portfolio will depend on various factors including political, economic, and industry-specific risks[97]. - The group is expected to benefit from a diversified investment portfolio that aims to generate higher long-term returns while mitigating individual investment risks[97]. Corporate Governance - The company has complied with the Corporate Governance Code during the reporting period, with some deviations noted regarding formal appointment letters for directors[114]. - All directors confirmed compliance with the established standards for securities trading during the reporting period[115]. - The mid-term report has been reviewed by the Audit Committee and KPMG, focusing on accounting principles and internal controls[116].

Financial Performance - The group's profit attributable to shareholders for the year ended December 31, 2020, was HKD 725.2 million, a slight decrease of 0.3% compared to HKD 727.3 million in 2019[9]. - Earnings per share remained stable at HKD 1.95, unchanged from 2019[9]. - The proposed final dividend is HKD 0.24 per share, maintaining the total dividend for the year at HKD 0.42 per share, consistent with the previous year[10]. - Total revenue for the year was HKD 760.5 million, an increase of 9.3% from HKD 695.9 million in 2019, driven by higher income from the driving school and financial investment segments[49]. - The financial investment segment reported a net fair value gain of HKD 68.4 million, a significant improvement from a loss of HKD 45.6 million in 2019, primarily due to gains from the Diversified Absolute Return Fund[49]. - The driving school segment recorded a revenue increase of 4.4% to HKD 474.5 million, with a pre-tax profit of HKD 198.2 million, up 40.1% from HKD 141.5 million in the previous year[51]. - The group’s share of profits from joint ventures decreased by 32.3% to HKD 417.4 million, primarily due to poor performance from the West Tunnel Company[51]. Economic Environment - The Hong Kong economy contracted by 6.1% in 2020, marking a more severe decline than the 2.5% during the 2009 global financial crisis[11]. - Retail sales in Hong Kong dropped sharply by 24.3% in 2020 due to extensive travel restrictions and weak local demand[11]. - The unemployment rate surged to 7.0% during the fourth wave of COVID-19, nearing a 17-year high[11]. - The company anticipates a challenging operating environment for the Alpha Hero group in 2021, with the driving training market expected to remain sluggish[14]. - The company expects new opportunities from China's 14th Five-Year Plan and regional cooperation agreements, despite uncertainties in U.S.-China relations[11]. Operational Challenges - The company anticipates continued challenges in 2021 due to the ongoing pandemic and has implemented necessary measures to ensure operational continuity[22]. - The management will continue to implement effective marketing strategies and monitor the pandemic's progress to ensure business continuity[14]. - The operational leases for driving training schools will expire in August 2021, February 2023, and July 2023, respectively, depending on government land supply[14]. Traffic and Toll Operations - Average daily traffic for the Western Harbour Tunnel decreased by 29.1% to 49,442 vehicles, down from 69,778 vehicles last year[17]. - The average toll per vehicle for the Western Harbour Tunnel increased from HKD 78.9 to HKD 82.3, while market share dropped to 21.8% from 27.3%[17]. - The average daily processing volume for the electronic toll collection system was approximately 365,000 transactions, involving an amount of about HKD 9.1 million[31]. - The total number of users for the electronic toll collection system reached 361,609, a 2.0% increase from 354,571 in 2019, with an average penetration rate of approximately 45% for licensed vehicles[31]. - The average traffic volume for the Western Harbour Tunnel decreased by 29.1% to 18,095,744 vehicles in the fiscal year, down from 25,469,064 vehicles in 2019[38]. - The market share for the Western Harbour Tunnel dropped from 27.3% in 2019 to 21.8% in 2020 due to COVID-19 and social distancing measures[38]. Employee Management - The employee turnover rate improved to 6.1% from 14.7% in 2019, indicating enhanced employee retention strategies[28]. - The company maintained strong relationships with suppliers, ensuring timely services at favorable prices[28]. - The total employee cost for the year, after deducting the "Employment Support" scheme subsidy, was HKD 272.8 million, down from HKD 284.3 million in 2019[64]. - The company employs 676 staff, with compensation determined based on job nature and market trends[64]. - Employee compensation is reviewed annually to ensure alignment with market standards and shareholder interests[155]. - The company provides comprehensive employee benefits, including medical insurance and retirement plans, to enhance employee satisfaction[156]. Environmental Initiatives - The company emphasizes sustainable development and aims to minimize environmental impact through the "Reduce, Recycle, Reuse" principles[128]. - The company actively participates in environmental initiatives and has implemented green office measures to enhance stakeholder awareness[128]. - The company has established strict procedures for the safe handling of hazardous waste, ensuring proper classification and disposal by licensed agents[142]. - The company encourages community investment through donations to education, charity, and cultural initiatives[165]. - The company has implemented measures to reduce emissions, including optimizing fleet management and encouraging the use of electric or hybrid vehicles[140]. Corporate Governance - The company emphasizes maintaining good corporate governance principles, focusing on effective board management and risk control systems[74]. - The board is responsible for ensuring compliance with the Corporate Governance Code and has conducted annual reviews of governance policies and practices[75]. - The company has established a risk management committee to oversee compliance with licensing conditions related to electronic payment tools[67]. - The board conducts an annual review of its arrangements to ensure they meet the company's needs and comply with applicable regulations[89]. - The company has established a communication policy with shareholders, which is reviewed annually to ensure effectiveness[120]. Investment Strategy - The investment strategy includes increasing investments in non-listed funds and debt securities while reducing equity securities to enhance recurring income[18]. - The group’s investment portfolio increased to HKD 5,946.4 million as of December 31, 2020, up from HKD 4,792.0 million in 2019, with significant increases in both listed and non-listed equity securities[52]. - The Group's significant investment in Evergrande New Energy Vehicle Group recorded a fair value of HKD 1,638.5 million, representing 16.1% of total assets and a fair value gain of HKD 1,216.9 million compared to a loss of HKD 137.3 million in 2019[56]. - The Group's total fair value of unlisted fund investments was HKD 933.8 million, representing 9.2% of total assets, with a focus on various industries including biotechnology and e-commerce[59]. Shareholder Relations - The total dividend for the year is HKD 0.42 per share, consistent with the previous year, amounting to approximately HKD 156.5 million[173]. - The proposed final dividend of HKD 0.24 per share is subject to shareholder approval at the upcoming annual general meeting[175]. - Shareholders holding at least 5% of total voting rights can request the board to convene a general meeting[121]. - A written request must specify the general nature of the matters to be addressed and include proposed resolutions, signed by the relevant shareholders[121]. Risk Management - The company has established a risk management framework, including a board, audit committee, internal audit function, and management, to oversee risk and internal controls[96]. - The company has implemented internal control measures to manage and disclose insider information effectively[98]. - The risk management process includes setting risk contexts, identifying risk factors, analyzing and assessing risk levels based on established rating standards, and implementing control mechanisms[99]. - The company maintains a diversified investment portfolio to mitigate risks associated with equity investments and non-listed funds[67].

Financial Performance - Total revenue for the six months ended June 30, 2020, was HKD 374,740,000, an increase of 12.3% from HKD 333,771,000 in the same period of 2019[19] - Customer contract revenue under Financial Reporting Standard No. 15 was HKD 220,130,000, up from HKD 217,504,000, reflecting a growth of 0.75%[19] - The net profit for the period was HKD 208,056,000, a significant decrease of 56.2% compared to HKD 474,970,000 in the previous year[20] - Basic and diluted earnings per share decreased to HKD 0.49 from HKD 1.22, representing a decline of 60.7%[19] - Total comprehensive income for the six months ended June 30, 2020, was HKD 293,938,000, down from HKD 378,038,000 in the previous year, indicating a decline of about 22.3%[26] - The company reported a net profit of HKD 184,347,000 for the six months ended June 30, 2020, compared to HKD 455,361,000 for the same period in 2019, representing a decrease of approximately 59.6%[25] - The consolidated profit before tax for the six months ended June 30, 2020, was HKD 220,229,000, down from HKD 486,238,000 in the same period of 2019, indicating a decline of about 54.7%[44] - The group’s unaudited profit attributable to shareholders for the first half of 2020 was HKD 184.3 million, a decrease of 59.5% compared to HKD 455.4 million in the same period of 2019[94] Cash Flow and Assets - The company's cash and cash equivalents increased to HKD 2,135,725,000 from HKD 1,926,867,000, showing a growth of 10.8%[22] - Cash generated from operating activities increased to HKD 62,861,000 in 2020 from HKD 32,862,000 in 2019, reflecting an increase of approximately 91.2%[29] - The company reported a decrease in cash and cash equivalents to HKD 2,068,112,000 as of June 30, 2020, compared to HKD 1,651,919,000 at the end of the previous year, an increase of 25.4%[29] - Total assets less current liabilities as of June 30, 2020, were HKD 7,783,334,000, an increase from HKD 7,623,226,000 at the end of 2019[23] - The company’s total equity as of June 30, 2020, was HKD 7,526,072,000, an increase from HKD 7,325,698,000 at the end of the previous year, representing a growth of approximately 2.7%[26] - As of June 30, 2020, the total non-current financial assets measured at amortized cost amounted to HKD 2,742,236,000, an increase from HKD 2,312,796,000 as of December 31, 2019, representing a growth of 18.6%[56] - Total reported assets as of June 30, 2020, amounted to HKD 8,362,625,000, compared to HKD 8,190,086,000 as of December 31, 2019, reflecting an increase of approximately 2.1%[44] Dividends and Shareholder Returns - The company declared dividends totaling HKD 22,361,000 during the fiscal year, compared to HKD 81,991,000 in the previous year, a reduction of approximately 72.7%[25] - The company declared an interim dividend of HKD 0.06 per share, totaling HKD 44,722,000, consistent with the previous year[75] - The company declared an interim dividend of HKD 0.06 per share for the first quarter, totaling approximately HKD 22.4 million, with a similar dividend planned for the second quarter[95] Operational Highlights - The company experienced a decrease in investment activities cash inflow to HKD 446,370,000 in 2020 from HKD 458,042,000 in 2019, a decline of about 2.9%[29] - The average daily traffic for the West Tunnel decreased by 30.3% to 48,421 vehicles in the first half of 2020, compared to 69,476 vehicles in the same period last year[101] - The total number of users for the electronic toll collection system was approximately 357,400, with a daily processing volume of about 359,600 vehicles, amounting to approximately HKD 8.9 million[100] - The new driving school in Kwun Tong contributed positively to the operating income, which increased by 1.4% due to higher demand for motorcycle training courses[99] Investment Performance - The fair value of investments in Evergrande Health was HKD 563,167,000 as of June 30, 2020, compared to HKD 421,561,000 as of December 31, 2019, indicating a significant increase of 33.5%[58] - The fair value of China Evergrande Group shares held by the company is HKD 458.0 million, representing a gain over the purchase cost of HKD 125.7 million, accounting for 5.5% of total assets and 9.2% of the investment portfolio[113] - The fair value of Evergrande Health shares is HKD 563.2 million, exceeding the purchase cost of HKD 62.2 million, making up 6.7% of total assets and 11.3% of the investment portfolio, with a fair value gain of HKD 141.6 million recorded[114] - The total fair value of real estate-related investments is HKD 1,726.9 million, including HKD 582.0 million in equity securities and HKD 1,144.9 million in debt securities, representing approximately 34.7% of the investment portfolio[118] Market Conditions and Challenges - The company noted that the COVID-19 pandemic and ongoing social unrest have led to a significant decline in local demand and a deteriorating business environment[97] - The company anticipates that the overall performance in the short term may be adversely affected by the changing local and external environment, including the ongoing pandemic and geopolitical tensions[97] - The Hong Kong GDP fell by 9.1% year-on-year in the first quarter of 2020, marking the third consecutive quarter of contraction[97] - The Hang Seng Index dropped to 21,696 points in March 2020, the lowest level in the first half of the year, and closed at 24,427 points by the end of June, down 13.3% from December 2019[102] Compliance and Governance - The company has complied with the Corporate Governance Code during the accounting period, with some deviations noted[131] - The audit committee reviewed the interim report and discussed accounting principles, internal controls, and financial reporting matters with management[133] - The company has adopted a code of conduct for securities trading that meets or exceeds the standards set out in the Listing Rules[132]