Financial Performance - Total revenue for the six months ended June 30, 2024, was HKD 470,185,000, an increase of 14.4% compared to HKD 410,955,000 for the same period in 2023[5] - Operating profit for the same period was HKD 303,173,000, up 32.3% from HKD 229,113,000 in 2023[5] - Profit attributable to equity shareholders from continuing operations was HKD 231,970,000, representing a 32% increase from HKD 175,929,000 in the previous year[5] - The company reported a profit of HKD 235,172,000, compared to HKD 422,658,000 for the same period in 2023, representing a decrease of approximately 44.4%[20] - Total comprehensive income for the six months ended June 30, 2024, was HKD 236,178,000, down from HKD 420,212,000 in the previous year, indicating a decline of about 43.7%[20] - Reported segment revenue for the six months ended June 30, 2024, was HKD 469,897,000, an increase of 14.5% compared to HKD 410,004,000 in 2023[39] - Reported segment profit before tax for the same period was HKD 326,788,000, up 23.9% from HKD 263,546,000 in 2023[40] Earnings and Dividends - The company reported a basic and diluted earnings per share of HKD 0.63, down from HKD 1.13 in the same period last year[5] - The company declared dividends of HKD 22,361,000 during the current fiscal year, consistent with the previous year[20] - The company declared an interim dividend of HKD 0.06 per share for the first quarter, totaling HKD 22,361,000, consistent with the previous year[66] Assets and Liabilities - Total assets less current liabilities as of June 30, 2024, were HKD 7,806,255,000, compared to HKD 7,686,853,000 at the end of 2023[14] - The net asset value increased to HKD 7,573,276,000 from HKD 7,413,033,000 at the end of 2023[14] - The company’s total liabilities decreased to HKD 730,837,000 from HKD 828,992,000 at the end of 2023[11] - The company’s cash and cash equivalents amounted to HKD 2,677,142,000, a decrease from HKD 2,764,791,000 at the end of 2023[11] - As of June 30, 2024, total equity attributable to shareholders was HKD 7,339,557,000, an increase from HKD 7,168,722,000 as of June 30, 2023, representing a growth of about 2.4%[20] Cash Flow and Investments - The company’s cash and cash equivalents decreased by HKD 83,045,000 during the six months ended June 30, 2024, compared to an increase of HKD 336,439,000 in the same period of 2023[23] - Operating cash flow for the six months ended June 30, 2024, was HKD 9,139,000, significantly lower than HKD 30,996,000 for the same period in 2023, reflecting a decline of approximately 70.6%[23] - The company reported a decrease in cash generated from investment activities, totaling HKD 72,235,000 for the six months ended June 30, 2024, compared to HKD 413,646,000 in the same period of 2023[23] - The company incurred financial costs of HKD 9,358,000, which is an increase of 52.5% compared to HKD 6,143,000 in 2023[40] Segment Performance - Revenue from driving school operations increased to HKD 379,908,000 in 2024 from HKD 320,574,000 in 2023, reflecting a growth of 18.5%[30] - The group’s revenue from electronic road tolling services decreased by 75.0% in the first half of 2024, primarily due to the full implementation of the EasyPass system starting January 2024[96] - The financial management segment recorded a net profit of HKD 169.3 million in the first half of 2024, significantly up from the previous year, with fair value gains from financial assets contributing HKD 116.8 million[101] Economic Environment - Hong Kong's GDP grew by 2.7% and 3.3% in the first and second quarters of 2024, respectively, compared to a growth rate of 4.3% in the fourth quarter of 2023[92] - The total value of goods exported and imported in the first five months of 2024 increased by 12.5% and 7.4% year-on-year, respectively[92] - Retail sales in April and May 2024 decreased by 14.7% and 11.4% year-on-year, reflecting changes in consumer behavior[92] - The company anticipates that the business environment in Hong Kong will stabilize, with economic recovery expected to continue in the second half of 2024[92] Accounting and Compliance - The report is unaudited, but KPMG has conducted a review in accordance with the relevant standards[26] - The financial report is prepared in accordance with the applicable disclosure requirements of the Hong Kong Stock Exchange and the Hong Kong Financial Reporting Standards[28] - The company has not applied any new accounting standards or interpretations that have not yet come into effect during the reporting period[28] - The interim report has been reviewed by the audit committee and KPMG, ensuring adherence to accounting principles and internal controls[134] Investment Portfolio - The group's investment portfolio includes 52 private equity funds as of June 30, 2024, down from 55 funds as of December 31, 2023[56] - The total fair value of non-listed funds held as of June 30, 2024, was HKD 2,959.7 million, accounting for 34.7% of total assets[112] - The total fair value of equity securities held was HKD 1,165.9 million, representing 13.7% of total assets[113] - The company has diversified its investment portfolio by investing in various non-listed funds across different industries and regions, while also selling interests in five non-listed funds and some US-listed equity securities to enhance financial resources for future investment opportunities[97]

[2024 Interim Results Announcement](index=1&type=section&id=2024%20Interim%20Results%20Announcement) [Group Performance Overview](index=1&type=section&id=Group%20Performance%20Overview) The Group's profit attributable to shareholders fell 44.4% to HK$235.2 million due to the cessation of its tunnel business | Metric | H1 2024 (HK$ million) | H1 2023 (HK$ million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Profit attributable to shareholders | 235.2 | 422.7 | -44.4% | | Earnings per share (HK$) | 0.63 | 1.13 | -44.3% | - The decrease in profit was mainly due to the termination of the tunnel operation business in August 2023, which contributed **HK$246.7 million** in H1 2023[41](index=41&type=chunk) - The company paid a Q1 interim dividend of **HK$0.06 per share** on July 12, 2024, and will pay a Q2 interim dividend of **HK$0.06 per share** on September 16, 2024[3](index=3&type=chunk) [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) This section presents the unaudited consolidated statements of profit or loss, comprehensive income, and financial position [Consolidated Statement of Profit or Loss](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) Total revenue grew 14.4% to HK$470.2 million, but total profit for the period fell 40.1% due to discontinued operations | Metric | For the six months ended June 30, 2024 (HK$ thousand) | For the six months ended June 30, 2023 (HK$ thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total revenue | 470,185 | 410,955 | +14.4% | | Operating profit | 303,173 | 229,113 | +32.3% | | Profit before tax | 294,660 | 233,889 | +26.0% | | Profit from continuing operations | 272,345 | 213,657 | +27.5% | | Profit from discontinued operations | 3,202 | 246,729 | -98.7% | | Profit for the period | 275,547 | 460,386 | -40.1% | | Profit attributable to equity shareholders of the Company | 235,172 | 422,658 | -44.4% | | Basic and diluted earnings per share (HK$) | 0.63 | 1.13 | -44.3% | [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=4&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Total comprehensive income decreased by 39.6% to HK$276.5 million, impacted by discontinued operations | Metric | For the six months ended June 30, 2024 (HK$ thousand) | For the six months ended June 30, 2023 (HK$ thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Profit for the period | 275,547 | 460,386 | -40.1% | | Other comprehensive income for the period | 1,002 | (2,477) | From loss to profit | | Total comprehensive income for the period | 276,549 | 457,909 | -39.6% | | Total comprehensive income attributable to equity shareholders of the Company | 236,178 | 420,212 | -43.8% | [Consolidated Statement of Financial Position](index=5&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) The Group's financial position remained solid with growth in net current assets, net assets, and total equity | Metric | June 30, 2024 (HK$ thousand) | December 31, 2023 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 4,412,350 | 4,670,100 | -5.5% | | Current assets | 4,124,742 | 3,845,745 | +7.2% | | Current liabilities | 730,837 | 828,992 | -11.9% | | Net current assets | 3,393,905 | 3,016,753 | +12.5% | | Total assets less current liabilities | 7,806,255 | 7,686,853 | +1.6% | | Net assets | 7,573,276 | 7,413,033 | +2.2% | | Total equity attributable to equity shareholders of the Company | 7,339,557 | 7,215,185 | +1.7% | [Notes to the Financial Information](index=7&type=section&id=Notes%20to%20the%20Financial%20Information) This section details the Group's accounting policies, revenue sources, segment reporting, and other financial breakdowns [General Information and Basis of Preparation](index=7&type=section&id=General%20Information%20and%20Basis%20of%20Preparation) The Group's principal activities are investment holding, driving schools, financial management, and electronic toll collection - The Company's principal activity is investment holding, with subsidiaries in driving schools, financial management, and securities investment, and a joint venture in electronic toll collection facilities[10](index=10&type=chunk) - The interim financial report is prepared in accordance with **HKAS 34** and the applicable disclosure requirements of the Listing Rules of The Stock Exchange of Hong Kong Limited[11](index=11&type=chunk) - This interim financial report is unaudited but has been reviewed by **KPMG** in accordance with HKSRE 2410[11](index=11&type=chunk) [Changes in Accounting Policies](index=8&type=section&id=Changes%20in%20Accounting%20Policies) The adoption of new Hong Kong Financial Reporting Standards had no material impact on the Group's financial position - The amendments to Hong Kong Financial Reporting Standards effective in this accounting period had **no material impact** on the Group's results and financial position[13](index=13&type=chunk) [Revenue and Segment Reporting](index=8&type=section&id=Revenue%20and%20Segment%20Reporting) The Group's revenue is primarily from driving schools and financial management, with the latter showing significant profit growth **Revenue from Contracts with Customers by Service (HK$ thousand):** | Service | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Course fees from driving school operations | 379,908 | 320,574 | | Consultancy and management fees from electronic toll collection facilities | 2,400 | 2,400 | **Other Interest Income (HK$ thousand):** | Source | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Interest income from interest-bearing instruments | 3,590 | 3,570 | | Bank interest income | 64,326 | 47,785 | **Total Revenue (HK$ thousand):** | Total Revenue | 470,185 | 410,955 | **Reportable Segment Profit Before Tax (HK$ thousand):** | Segment | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Driving school operations | 154,274 | 133,369 | | Electronic toll collection facilities operations | 3,223 | 13,212 | | Financial management | 169,291 | 116,965 | | Total | 326,788 | 263,546 | - The profit before tax for the electronic toll collection facilities segment **decreased significantly** due to reduced administrative fee income following the full implementation of HKeToll[19](index=19&type=chunk)[39](index=39&type=chunk)[44](index=44&type=chunk) [Other Net Income](index=12&type=section&id=Other%20Net%20Income) Other net income increased significantly, driven by fair value gains on financial assets, particularly listed equity securities **Other Net Income (HK$ thousand):** | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Fair value changes of financial assets at FVTPL | 116,806 | 73,464 | | - Unlisted fund investments | 58,909 | 53,240 | | - Listed equity securities | 116,839 | 93,316 | | - Unlisted equity securities | (58,953) | - | | - Debt securities | 11 | (58,881) | | Net gain on disposal of property, plant and equipment | 73 | 127 | | Total | 116,879 | 73,591 | [Details of Profit Before Tax](index=12&type=section&id=Details%20of%20Profit%20Before%20Tax) Finance costs and depreciation increased, while impairment losses on financial assets were reduced to zero **Items Deducted in Profit Before Tax (HK$ thousand):** | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Finance costs (interest on lease liabilities) | 9,358 | 6,143 | | Depreciation | 47,829 | 42,076 | | Impairment loss on financial assets | - | 16,602 | | Contributions to defined contribution retirement scheme | 5,046 | 4,665 | | Salaries, wages and other benefits | 172,699 | 153,786 | | Cost of inventories consumed | 5,336 | 3,830 | [Income Tax](index=13&type=section&id=Income%20Tax) Total income tax for H1 2024 was HK$22.3 million, an increase from the prior year due to higher Hong Kong Profits Tax **Income Tax (HK$ thousand):** | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Current tax - Hong Kong Profits Tax | 22,715 | 19,205 | | Deferred tax | (400) | 1,027 | | Total | 22,315 | 20,232 | - Hong Kong Profits Tax is calculated at a rate of **16.5%**, with one subsidiary qualifying for a rate of **8.25%** on its first two million of assessable profits[23](index=23&type=chunk) [Discontinued Operations](index=13&type=section&id=Discontinued%20Operations) The Western Harbour Tunnel Company Limited's franchise expired in August 2023, leading to a 98.7% drop in profit from this discontinued operation - The franchise of Western Harbour Tunnel Company Limited (a **50%-owned associate**) expired on August 1, 2023, and its operations are classified as discontinued[24](index=24&type=chunk) **Profit for the Year from Discontinued Operations (HK$ thousand):** | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Management fee from an associate | - | 1,250 | | Share of profit of an associate | 3,202 | 245,479 | | Total | 3,202 | 246,729 | [Earnings Per Share](index=13&type=section&id=Earnings%20Per%20Share) Basic and diluted earnings per share for H1 2024 decreased to HK$0.63, reflecting the impact of discontinued operations **Earnings Per Share (HK$):** | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Basic and diluted | 0.63 | 1.13 | | From continuing operations, basic and diluted | 0.62 | 0.47 | | From discontinued operations, basic and diluted | 0.01 | 0.66 | - Basic and diluted EPS are calculated based on the profit attributable to ordinary equity shareholders of **HK$235,172,000** and a weighted average of **372,688,000** ordinary shares in issue[26](index=26&type=chunk) [Dividends](index=14&type=section&id=Dividends) The company declared and paid Q1 and Q2 interim dividends of HK$0.06 per share, consistent with the prior year **Dividends Payable to Equity Shareholders During the Interim Period (HK$ thousand):** | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | First quarterly interim dividend (HK$0.06 per share) | 22,361 | 22,361 | | Second quarterly interim dividend (HK$0.06 per share) | 22,361 | 22,361 | | Total | 44,722 | 44,722 | **Dividends Payable to Equity Shareholders in Respect of the Previous Financial Year (HK$ thousand):** | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Final dividend (HK$0.24 per share) | 89,445 | 89,445 | [Other Financial Assets](index=15&type=section&id=Other%20Financial%20Assets) The Group's total financial assets stood at HK$4,807.1 million, primarily composed of unlisted funds and listed equity securities **Total Other Financial Assets (HK$ thousand):** | Category | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Non-current financial assets | 3,724,428 | 3,942,069 | | Current financial assets | 1,082,698 | 984,143 | | Total | 4,807,126 | 4,926,212 | - The unlisted fund investments comprise **52 private equity funds** with a diversified portfolio across various industries and regions[33](index=33&type=chunk) **Fair Value and Gains of Listed Equity Securities (HK$ thousand):** | Category | Fair Value at June 30, 2024 | Fair Value at Dec 31, 2023 | Net Fair Value Gain in H1 2024 | Net Fair Value Gain in H1 2023 | | :--- | :--- | :--- | :--- | :--- | | Equity securities listed in Hong Kong | 819,412 | 726,966 | 92,446 | 58,276 | | Equity securities listed outside Hong Kong | 262,964 | 256,866 | 24,393 | 35,040 | [Trade and Other Receivables, Deposits and Prepayments](index=17&type=section&id=Trade%20and%20Other%20Receivables%2C%20Deposits%20and%20Prepayments) Trade and other receivables increased significantly to HK$335.8 million due to consideration receivable from the sale of unlisted fund investments **Trade and Other Receivables (HK$ thousand):** | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Trade receivables (net of allowance for doubtful debts) | 13,268 | 12,780 | | Consideration receivable | 255,094 | - | | Other receivables | 14,016 | 14,553 | | Deposits and prepayments | 101,037 | 88,029 | | Less: non-current portion | (47,610) | (44,880) | | Total | 335,805 | 70,482 | - The consideration receivable of **HK$255,094,000** primarily arose from the disposal of partnership investments in five unlisted funds[35](index=35&type=chunk) [Trade and Other Payables](index=17&type=section&id=Trade%20and%20Other%20Payables) Total trade and other payables decreased to HK$73.3 million as of June 30, 2024, indicating sound liability management **Trade and Other Payables (HK$ thousand):** | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Trade payables | 7,597 | 7,279 | | Other payables and accruals | 65,675 | 123,176 | | Total | 73,272 | 130,455 | [Business Review and Outlook](index=18&type=section&id=Business%20Review%20and%20Outlook) This section reviews the performance of the Group's main business segments and discusses the economic environment and future outlook [Economic Review and Outlook](index=18&type=section&id=Economic%20Review%20and%20Outlook) Hong Kong's economy continued to recover in H1 2024, driven by net exports, with further recovery expected in H2 - Hong Kong's GDP grew by **2.7% and 3.3%** in Q1 and Q2 2024 respectively, with net exports as the main growth driver[37](index=37&type=chunk) - Total retail sales fell by **14.7% and 11.4%** year-on-year in April and May 2024, and investment sentiment was cautious due to high interest rates[37](index=37&type=chunk) - Looking ahead, Hong Kong's business environment is stable, and the economy is expected to continue its recovery in H2 2024, with potential interest rate cuts by major central banks improving investment sentiment[37](index=37&type=chunk) [Driving School Operations](index=18&type=section&id=Driving%20School%20Operations) The driving school business saw an 18.5% increase in operating revenue, driven by higher demand for non-motorcycle training - Revenue from driving school operations increased by **18.5%** year-on-year to **HK$379.9 million**, with a **16.1%** increase in the number of non-motorcycle driving courses[38](index=38&type=chunk)[44](index=44&type=chunk) - Profit before tax for driving school operations increased by **15.7%** to **HK$154.3 million**, though the market may stagnate in the second half of the year[38](index=38&type=chunk)[44](index=44&type=chunk) [Electronic Toll Collection Facilities Operations](index=18&type=section&id=Electronic%20Toll%20Collection%20Facilities%20Operations) While total revenue from HKeToll increased, a sharp decline in administrative fee income led to a significant drop in the Group's share of profit - The full implementation of HKeToll since January 2024 led to a **24.4% increase** in total HKeToll revenue but a **75.0% decrease** in administrative fee income from electronic toll collection[39](index=39&type=chunk) - The Group's share of profit from the joint venture, Autotoll (BVI) Limited, was **HK$0.8 million**, a sharp decrease from **HK$10.9 million** in the prior year[44](index=44&type=chunk) [Financial Management Business](index=18&type=section&id=Financial%20Management%20Business) The financial management segment recorded a net profit of HK$169.3 million, mainly from fair value gains on financial assets - The Group disposed of five unlisted funds and some US-listed equity securities, reinvesting part of the proceeds into Japanese-listed equity securities[40](index=40&type=chunk) - The financial management segment recorded a net profit of **HK$169.3 million** in H1 2024, primarily contributed by a net fair value gain of **HK$116.8 million** on FVTPL financial assets[42](index=42&type=chunk) **Financial Management Segment Key Income (HK$ million):** | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Net fair value gain on FVTPL financial assets | 116.8 | 73.5 | | Portfolio dividend and interest income | 23.3 | 25.5 (Estimated) | | Bank interest income | 44.4 | 31.4 | | Impairment loss on interest-bearing instruments | 0 | 16.6 | | Financial management segment profit before tax | 169.3 | 117.0 | *Note: 2023 portfolio dividend and interest income is estimated as HK$21.9 million from listed equity securities + HK$3.6 million from interest-bearing instruments = HK$25.5 million* - As of June 30, 2024, the Group's investment portfolio was valued at **HK$4,807.1 million**, a decrease from **HK$4,926.2 million** at December 31, 2023[40](index=40&type=chunk)[47](index=47&type=chunk) - During the period, **HK$250.8 million** of financial assets were added, and **HK$487.7 million** were disposed of[48](index=48&type=chunk) - The Diversified Absolute Return Fund (DARF) had a fair value of **HK$681.2 million**, representing **8.0%** of total assets, and recorded a fair value loss of **HK$12.4 million** during the period[49](index=49&type=chunk) [Liquidity and Financial Resources](index=21&type=section&id=Liquidity%20and%20Financial%20Resources) The Group maintained a strong liquidity position with bank balances and deposits of HK$2,677.1 million and no bank borrowings **Bank Balances and Deposits (HK$ million):** | Date | Amount | | :--- | :--- | | June 30, 2024 | 2,677.1 | | December 31, 2023 | 2,764.8 | - The Group had **no bank borrowings** as of June 30, 2024[51](index=51&type=chunk) [Employees](index=21&type=section&id=Employees) The Group had 656 employees, with total staff costs increasing to HK$177.7 million in the first half of 2024 - The Company and its subsidiaries had a total of **656 employees**[52](index=52&type=chunk) **Total Staff Costs (HK$ million):** | Period | Amount | | :--- | :--- | | H1 2024 | 177.7 | | H1 2023 | 158.5 | [Corporate Governance](index=22&type=section&id=Corporate%20Governance) The company complied with the Corporate Governance Code during the period, with a noted deviation regarding directors' appointment letters - The Company complied with the code provisions of the Corporate Governance Code in Appendix C1 of the Main Board Listing Rules, except for a deviation regarding directors' letters of appointment (Code C.3.3)[53](index=53&type=chunk) - All directors have confirmed their compliance with the Model Code for Securities Transactions by Directors of Listed Issuers and the Company's adopted code of conduct[54](index=54&type=chunk) - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's shares during the period[55](index=55&type=chunk)

Financial Performance - The company reported a net 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 significant turnaround [5]. - Earnings per share for the year were HKD 1.40, compared to a loss per share of HKD 1.19 in the previous year [5]. - Total revenue increased by 25.1% to HKD 875.2 million in 2023, up from HKD 699.7 million in 2022, driven by higher income from driving schools and financial management services [36]. - The financial management segment recorded a net profit of HKD 162.4 million, a substantial improvement from a loss of HKD 861.0 million in the previous year [37]. - Income from driving schools rose by 20.4% to HKD 670.5 million, attributed to increased demand for driving courses and higher average class fees [39]. - The company declared a final dividend of HKD 0.24 per share, maintaining the total annual dividend at HKD 0.42 per share, consistent with 2022, amounting to a total dividend payout of approximately HKD 156.5 million [6]. Market Environment - The company anticipates continued economic recovery in Hong Kong for 2024, but faces external challenges such as global economic slowdown and geopolitical tensions [7]. - The Hang Seng Index closed at 17,047 points for 2023, reflecting a decline of 13.8% over the year, indicating a challenging market environment [7]. - The overall business environment and investment portfolio of the company are expected to be impacted by high interest rates and ongoing geopolitical conflicts, posing risks to financial performance [7]. Driving School Operations - The driving school segment saw a significant increase in revenue due to a rise in demand for non-motorcycle driving training courses, benefiting from the recovery of driving test services [8]. - The driving school business recorded a 20% increase in revenue, attributed to a 17% rise in non-motorcycle training course numbers and improved average class fees [18]. - The company plans to enhance customer service and training quality in its driving schools while maintaining an active marketing strategy to retain market leadership [8]. Investment Portfolio - The group's investment portfolio increased slightly to HKD 4,926.2 million in 2023, up from HKD 4,459.0 million in 2022, with 92 investments in total [14]. - The company 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 [41]. - The group plans to diversify investments, including non-listed funds and equity securities outside Hong Kong, to enhance portfolio diversification [14]. Risk Management - The company is committed to enhancing risk monitoring and management mechanisms across all business segments [52]. - The financial management business faces price volatility risks from listed and unlisted equity investments, influenced by global economic and geopolitical factors [50]. - Credit risk is primarily associated with listed debt investments and interest-bearing instruments, affected by economic conditions and market fluctuations [52]. - Joint ventures in tunnel operations face risks from natural disasters and operational interruptions, with management implementing insurance and emergency plans [52]. - Regulatory risks in electronic toll collection operations include changes in government policies and compliance with licensing regulations [52]. Corporate Governance - The board emphasizes the importance of high corporate governance standards to protect shareholder interests and enhance corporate value [58]. - The company has established a culture of integrity and honesty among its directors and employees, promoting sustainable development [58]. - The board is responsible for leading and monitoring the company, balancing the interests of a wide range of stakeholders [60]. - The company has a structured approach to risk management and internal controls, ensuring transparency and accountability [58]. - The board conducts annual reviews of corporate governance policies and practices, ensuring compliance with the Corporate Governance Code [57]. Environmental, Social, and Governance (ESG) Initiatives - The group has identified significant environmental, social, and governance (ESG) issues and integrated them into its operations, focusing on sustainable development and stakeholder expectations [122]. - A dedicated team has been established to accelerate low-carbon transformation, aiming to reduce greenhouse gas emissions and set new targets for operational decarbonization [123]. - The company aims to reduce its greenhouse gas emission intensity by 3% over the next five years, using 2021 as the baseline year [133]. - The company has set a goal to improve energy efficiency and reduce electricity consumption through various initiatives, including the use of energy-efficient lighting [145]. - The company is committed to reducing greenhouse gas emissions and has integrated climate change factors into its business strategy [151]. Employee Management - The employee turnover rate increased to 36% in 2023 from 34% in 2022, primarily due to intensified competition for technical personnel [25]. - The total employee cost for the year was HKD 390.6 million, up from HKD 324.1 million in 2022 [49]. - Approximately 68.80% of employees participated in training programs in 2023, with an average training duration of 14.72 hours per employee [166]. - The company promotes work-life balance by providing social and recreational activities for employees [162]. - The company emphasizes equal employment opportunities and prohibits discrimination based on age, race, gender, or other personal characteristics [161]. Community Engagement - The company made a total of HKD 231,500 in charitable donations in 2023, supporting various sectors including arts, health, sports, and social welfare [184]. - The company encourages employee participation in community activities, including charitable fundraising and volunteer work [183]. - The company has resumed participation in public community activities following the lifting of pandemic restrictions, promoting road safety through sponsorships [184].

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].