Financial Performance - For the year ended December 31, 2023, the group recorded revenue of approximately HKD 38.3 million, a decrease of about HKD 1.6 million or 4.0% compared to the revenue of approximately HKD 39.9 million for the year ended December 31, 2022[2]. - The group achieved a net profit of approximately HKD 2.2 million for the year, a significant turnaround from a net loss of approximately HKD 47.0 million in the previous year, primarily due to a fair value gain of approximately HKD 2.0 million on investment properties compared to a fair value loss of approximately HKD 46.0 million in the prior year[2]. - Total comprehensive income for the year amounted to HKD 1.6 million, compared to a total comprehensive loss of HKD 48.0 million in the previous year[4]. - The group reported a basic and diluted earnings per share of HKD 0.09, recovering from a loss per share of HKD 1.67 in the previous year[6]. - The company reported a profit of HKD 2,509,000 for 2023, a significant recovery from a loss of HKD 47,007,000 in 2022[67]. - The company reported a pre-tax profit of 2,417 thousand HKD for the year 2023, a recovery from a pre-tax loss of 46,617 thousand HKD in 2022[39]. Revenue Breakdown - Revenue from property management and related services decreased to HKD 25,365,000 in 2023, down 8.9% from HKD 27,768,000 in 2022[25]. - Total revenue for the group in 2023 was HKD 38,267,000, a decline of 4% compared to HKD 39,875,000 in 2022[25]. - Revenue from major customer A in property management services was 3,652 thousand HKD in 2023, down from 4,454 thousand HKD in 2022, representing a decline of 18%[55]. - The group’s total income from gardening services and plant sales was HKD 6,504,000 in 2023, a slight increase from HKD 6,343,000 in 2022[31]. - Rental income from investment properties increased by HKD 634,000 or 11% to HKD 6,398,000 for the year ending December 31, 2023, compared to HKD 5,764,000 in the previous year[95]. Assets and Liabilities - As of December 31, 2023, the group had total assets of approximately HKD 388.8 million, compared to HKD 240.9 million in the previous year[8]. - The group’s net current liabilities were approximately HKD 140.2 million, an improvement from HKD 216.1 million in the previous year[8]. - Total assets increased to 598,619 thousand HKD in 2023 from 372,078 thousand HKD in 2022, reflecting a growth of 60.8%[47]. - Total liabilities rose to 465,575 thousand HKD in 2023 from 240,889 thousand HKD in 2022, an increase of 93.3%[47]. - The total value of mortgaged investment properties and bank deposits was HKD 363,332,000 as of December 31, 2023, compared to HKD 360,891,000 in 2022[110]. Financial Support and Governance - The company has confirmed that its controlling shareholder will continue to provide financial support for the repayment of all debts if the company is unable to do so within at least the next twelve months[107]. - The board of directors did not recommend the payment of a final dividend for the year[2]. - The board does not recommend the payment of a final dividend for the year ended December 31, 2023, compared to no dividend in 2022[120]. - The audit committee has reviewed the financial statements for the year ended December 31, 2023, and found no discrepancies[113]. - The company has complied with all provisions of the corporate governance code, except for the separation of the roles of chairman and CEO, which are held by the same individual[119]. Operational Insights - The group has three operating segments: property investment, gardening services and plant sales, and property management and related services[29]. - The company aims to strengthen its property management and related services to stimulate future revenue and profit growth[104]. - The company plans to enhance its service portfolio and provide comprehensive property management solutions to tenants, generating synergies in property management[104]. - The group is currently evaluating the impact of the revised long service payment regulations on its obligations[23]. - The group has not adopted new Hong Kong Financial Reporting Standards that have been issued but are not yet effective, and is assessing their potential impact[18]. Cost Management - The group plans to take measures to improve its financial position, including cost reduction and securing sufficient funding from the controlling shareholder to meet its obligations[13]. - Total employee costs rose to HKD 20,922,000 in 2023, up from HKD 18,503,000 in 2022, marking an increase of 12.9%[61]. - Other operating and administrative expenses increased by HKD 512,000 or 7.0% to HKD 7,809,000 for the year ending December 31, 2023[97]. - The cost of goods sold decreased to HKD 1,039,000 in 2023 from HKD 1,121,000 in 2022, a reduction of 7.3%[65]. - Financing costs increased by HKD 3,435,000 or 70.8% to HKD 8,289,000 for the year, attributed to rising bank loan interest rates[100].

Financial Performance - The company reported revenue of HKD 20,007,000 for the six months ended June 30, 2023, a decrease of 3.8% compared to HKD 20,800,000 in the same period of 2022[42]. - Operating loss for the period was HKD 2,797,000, compared to a profit of HKD 2,130,000 in the previous year, indicating a significant decline in performance[42]. - The loss attributable to owners of the company for the period was HKD 2,684,000, compared to a profit of HKD 2,130,000 in the previous period[11]. - Basic and diluted loss per share was HKD (0.10), compared to earnings of HKD 0.08 per share in the prior year[43]. - The group reported a profit of HKD 4,023,000 before tax for the six months ended June 30, 2023, compared to a loss of HKD 10,000 in the previous year[95]. - Other income for the period was HKD 721,000, an increase from HKD 569,000 in the previous year, reflecting some growth in non-core revenue streams[42]. - The company experienced a foreign exchange gain of HKD 188,000 during the period, compared to a loss of HKD 184,000 in the previous year[42]. Assets and Liabilities - The company recorded a net current liability of approximately HKD 218,549,000, raising concerns about its ability to continue as a going concern[51]. - The total assets as of June 30, 2023, were HKD 374,799,000, a slight increase from HKD 372,078,000 as of December 31, 2022[104]. - The group’s total liabilities as of June 30, 2023, were HKD 245,974,000, an increase from HKD 240,889,000 as of December 31, 2022[104]. - The company’s total liabilities to equity ratio as of June 30, 2023, was 179%, up from 172% as of December 31, 2022[143]. - The fair value of investment properties remained stable at HKD 346,000,000 as of June 30, 2023, unchanged from December 31, 2022[73]. Revenue Streams - Total revenue for the six months ended June 30, 2023, was HKD 20,007,000, a decrease of 3.8% compared to HKD 20,800,000 for the same period in 2022[77]. - Rental income from investment properties amounted to HKD 16,951,000, down from HKD 17,932,000 in the previous year, reflecting a decrease of 5.5%[77]. - The segment profit from property investment was HKD 1,477,000, while the profit from property management and related services was HKD 4,725,000, contributing to a total segment profit of HKD 7,277,000[80]. - Property management and related services revenue decreased by HKD 1,021,000 or 6.9% to HKD 13,804,000 from HKD 14,825,000 in the previous year, mainly due to a reduction in managed area[116]. - Rental income from investment properties increased by HKD 188,000 or 6.6% to HKD 3,056,000 from HKD 2,868,000 in the previous year, driven by an increase in average rental income per apartment unit[117]. Costs and Expenses - Employee costs rose by HKD 2,239,000 or 26.5% to HKD 10,685,000 from HKD 8,446,000 in the previous year, primarily due to salary increases and growth in employee numbers[134]. - Other operating and administrative expenses increased by HKD 1,066,000 or 35.2% to HKD 4,092,000 from HKD 3,026,000 in the previous year, mainly due to increased legal and professional fees[135]. - Financing costs increased by 117.5% to HKD 3,848,000 due to rising bank loan interest rates[159]. Shareholder and Corporate Governance - Major shareholder China Asia Holdings Group Limited holds 2,112,395,735 ordinary shares, representing 74.93% of the company's equity[175]. - The company has complied with all provisions of the Corporate Governance Code, except for the separation of the roles of Chairman and CEO, which are held by the same individual[181]. - The Audit Committee has reviewed the interim results and confirmed compliance with relevant accounting standards and regulations during the reporting period[182]. - The company has adopted the Standard Code for Securities Transactions by Directors and confirmed that all directors complied with its provisions during the reporting period[191]. Future Plans and Strategies - The company plans to take actions to reduce costs in response to the financial challenges faced during the reporting period[68]. - The group aims to enhance shareholder value in the foreseeable future while focusing resources on business development[151]. - The group will continue to explore diversified investment opportunities across different industries to enhance financial stability and shareholder returns[168]. - The company plans to adopt a new share option or share reward scheme in the future to enhance its compensation structure and attract talent[178]. Other Notable Information - The board does not recommend any interim dividend for the reporting period, consistent with the previous period[3]. - The company had no significant investments or capital asset plans as of June 30, 2023[145]. - The company has not changed its valuation techniques during the reporting period[74]. - The group has no significant events that may affect its operations after the reporting period[154].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 CHINA ASIA VALLEY GROUP LIMITED 中 亞 烯 谷 集 團 有 限 公 司 （於百慕達註冊成立之有限公司） （股份代號： 63） 截至二零二三年六月三十日止六個月 未經審核綜合中期業績公告 中亞烯谷集團有限公司（「本公司」）董事會（「董事會」）公佈本公司及其附屬公司（統稱「本 集團」）截至二零二三年六月三十日止六個月（「報告期間」）之未經審核綜合中期業績，連 同截至二零二二年六月三十日止六個月的比較數字。 簡明綜合損益及其他全面收益表 截至二零二三年六月三十日止六個月 截至六月三十日止六個月 附註 二零二三年 二零二二年 千港元 千港元 （未經審核） （未經審核） ...

Financial Performance - The company reported a total equity of HKD 131,189,000 as of December 31, 2022, down from HKD 179,228,000 at the beginning of the year, reflecting a loss of HKD 47,007,000 during the year[26]. - The company recognized a total comprehensive expense of HKD 48,039,000 for the year, which includes a loss of HKD 47,007,000 and other comprehensive expenses of HKD 1,032,000[26]. - The company’s retained earnings decreased to HKD (35,857,000) by the end of 2022, compared to HKD 11,150,000 at the beginning of the year[26]. - The company’s loss attributable to owners increased significantly from HKD 330 million in 2021 to HKD 47.007 million in 2022, primarily due to a fair value loss on investment properties of approximately HKD 46 million[56]. - The company incurred a net loss of HKD 47,007,000 for the year, compared to a loss of HKD 330,000 in the previous year, indicating a significant decline in performance[103]. - Basic and diluted loss per share for the year was HKD 1.67, compared to HKD 0.01 in the previous year[103]. Revenue and Expenses - The group's revenue increased by HKD 2,065,000 or 5.5% to HKD 39,875,000 for the year ended December 31, 2022, primarily due to growth in property management and related services[33]. - The group recorded revenue of HKD 27,768,000 from property management services, up from HKD 25,407,000 in the previous year[33]. - Employee costs rose by HKD 1,317,000 or 7.7% to HKD 18,503,000, attributed to salary increases and a growth in employee numbers[38]. - Other property management-related expenses increased by HKD 2,308,000 or 32.8% to HKD 9,355,000, mainly due to one-time repair and maintenance costs in Shenzhen[39]. - Financing costs increased by HKD 1,426,000 or 41.6% to HKD 4,854,000, due to rising bank borrowing rates[42]. Assets and Liabilities - The total liabilities decreased from HKD 244.221 million in 2021 to HKD 240.889 million in 2022, while current liabilities net amount was (HKD 216.066 million) in 2022 compared to (HKD 215.020 million) in 2021[54]. - The group recorded a net current liability of approximately HKD 216,066,000 as of December 31, 2022, compared to HKD 215,020,000 in 2021[76]. - The total value of mortgaged investment properties and bank deposits was not less than approximately HKD 360,891,000 as of December 31, 2022, down from HKD 405,248,000 in 2021[76]. Investments and Acquisitions - The company sold its investments in Taiwan and Japan in January and July 2022, respectively, and plans to focus resources on business development if audit issues are resolved[21]. - The company completed the sale of its wholly-owned subsidiary Sky Heritage Holdings Limited for HKD 10,000, which held a 28% stake in Five Color Stone Technology Corporation[91]. - The company sold all issued shares of WI Capital Co. Limited for HKD 10,000, completed on July 29, 2022, with no significant adverse impact on overall financial condition and operations[119]. - The company has not disclosed any major acquisitions or disposals other than the sale of Sky Heritage Holdings Limited[107]. Cash Flow and Financing - The company reported cash flow from operating activities of HKD 8.428 million in 2022, a significant increase from HKD 383,000 in 2021[54]. - The company’s operating capital needs were met through bank loans totaling HKD 65.357 million in 2022, compared to HKD 68 million in 2021[61]. - The company has a bank loan of HKD 160 million as of December 31, 2022, unchanged from the previous year[67]. - The group had bank borrowings with repayment terms totaling HKD 160,000,000, due on March 30, 2023[86]. - The group provided a loan of HKD 15,357,000 to the ultimate holding company during the financing activities[79]. Shareholder and Governance - The company’s management expressed gratitude to shareholders and customers for their continued support, which is seen as a driving force for the company[22]. - The board does not recommend any dividend payment for the fiscal year ending December 31, 2022[135]. - The company plans to adopt a new stock option plan after the current plan expires, pending shareholder approval at a forthcoming meeting[189]. - The board believes that the audit opinions will be removed for the fiscal year ending December 31, 2023, due to the sale of certain investments[131]. - The current auditor issued a qualified opinion for the financial statements for the year ended December 31, 2021, due to scope limitations related to the investments in Five Color Stone and WI Capital[159]. Future Outlook and Strategy - The group plans to enhance its competitive advantages and synergies across regions, focusing on property management and related services to stimulate future revenue and profitability[45]. - The group aims to accelerate investments in the Greater Bay Area and other key cities, leveraging supportive policies for the real economy in China[32]. - The company aims to focus resources on developing its business in Japan and Taiwan, resolving previous audit issues related to these investments[69]. - The company aims to adopt sustainable business practices while seeking growth and has made progress in its environmental policies[112]. Compliance and Risk Management - The company closely monitors government policies and regulations that may impact operations and compliance[124]. - The company relies on reputable third-party service providers to mitigate risks associated with service failures[125]. - The company has not been able to find suitable directors' liability insurance since 2022, resulting in no insurance arrangements being made[152].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不對因本公告全 部或任何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 CHINA ASIA VALLEY GROUP LIMITED 中 亞 烯 谷 集 團 有 限 公 司 （於百慕達註冊成立之有限公司） （股份代號： 63） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 全 年 業 績 公 告 摘要 • 截至二零二二年十二月三十一日止年度（「本年度」）本集團錄得收益約 3,990萬港元，較截至二零二一年十二月三十一日止年度的收益約3,780 萬港元增加約210萬港元或5.5%。 • 本年度，本集團錄得本公司擁有人應佔虧損淨額約4,700萬港元，較本集 團截至二零二一年十二月三十一日止年度虧損淨額約30萬港元增加約 4,670萬港元。本年度虧損大幅增加的主要原因在於年內計入投資物業 之公允值虧損約4,600萬港元。 ...

Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 20,800,000, an increase of 20.8% compared to HKD 17,353,000 for the same period in 2021[10] - Operating profit for the same period was HKD 5,792,000, up 127.9% from HKD 2,544,000 in 2021[10] - Net profit for the six months ended June 30, 2022, was HKD 2,130,000, compared to HKD 529,000 in 2021, representing a significant increase[10] - Basic and diluted earnings per share for the period were both HKD 0.08, compared to HKD 0.02 in the previous year[10] - Other income for the six months ended June 30, 2022, was HKD 569,000, compared to HKD 184,000 in 2021, indicating growth in additional revenue streams[10] - The group reported a total segment profit of HKD 9,204,000 for the six months ended June 30, 2022, compared to HKD 6,193,000 for the same period in 2021, representing an increase of 48.7%[61] - The group’s profit before tax for the six months ended June 30, 2022, was HKD 4,023,000, significantly higher than HKD 804,000 for the same period in 2021[61] - The group's profit for the period increased by HKD 1,601,000 or 302.6% to HKD 2,130,000, mainly due to increased revenue from the property management services segment[114] Assets and Liabilities - Total assets as of June 30, 2022, were HKD 393,989,000, slightly down from HKD 394,432,000 as of December 31, 2021[14] - The company's net asset value increased to HKD 181,174,000 as of June 30, 2022, from HKD 179,228,000 at the end of 2021[14] - The company maintained a stable level of current liabilities at HKD 243,894,000, compared to HKD 244,221,000 in the previous year[14] - The group’s total liabilities as of June 30, 2022, were HKD 14,237,000, compared to HKD 11,854,000 as of December 31, 2021[60] - Total liabilities rose to HKD 14,237 thousand as of June 30, 2022, compared to HKD 11,854 thousand as of December 31, 2021, marking an increase of about 19.98%[64] Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2022, was HKD 9,309,000, a significant increase from HKD 1,410,000 in the same period of 2021, representing a growth of approximately 558%[18] - The net cash used in investing activities was HKD 1,912,000 for the six months ended June 30, 2022, compared to a net cash outflow of HKD 1,742,000 in the previous year, indicating a positive shift in investment cash flow[18] - The net cash used in financing activities was HKD 5,953,000 for the six months ended June 30, 2022, a decrease from a net cash inflow of HKD 2,737,000 in the same period of 2021, reflecting changes in financing strategies[18] - The total cash and cash equivalents at the end of the reporting period increased to HKD 10,807,000, up from HKD 5,502,000 at the end of June 2021, marking an increase of approximately 96%[18] Revenue Breakdown - Revenue from property management and related services was HKD 14,825,000, up 37.0% from HKD 10,825,000 in the previous year[51] - Revenue from gardening services and plant sales was HKD 3,107,000, a slight decrease of 6.3% from HKD 3,316,000 in the previous year[51] - Rental income from investment properties in Hong Kong was HKD 2,868,000, down 10.7% from HKD 3,212,000 in the previous year[51] - The revenue from property management and related businesses in mainland China increased from HKD 10.8 million to HKD 14.8 million for the six months ended June 30, 2022[129] Shareholder Information - The company did not recommend any interim dividend for the reporting period, consistent with the previous year[78] - As of June 30, 2022, the company’s director Huang Binghuang holds 2,112,395,735 shares, representing 74.93% of the total ordinary shares[156] - Major shareholders include China Asia Valley Group Limited, which holds 74.93% of the shares[160] Governance and Compliance - The audit committee reviewed the interim financial statements and confirmed compliance with relevant accounting standards[167] - The company has adopted corporate governance practices in line with the listing rules, with some deviations noted[165] - The chairman and CEO roles are held by the same individual, which the board believes enhances operational efficiency[165] - The company expressed gratitude to shareholders, partners, and employees for their support during the reporting period[169] Strategic Initiatives - The company plans to improve its financial position and liquidity by reducing costs and securing sufficient funding from its controlling shareholder for debt repayment[28] - The group entered a memorandum of understanding for potential leasing cooperation with Zhongya Electronic City Group, aimed at expanding business and enhancing market competitiveness[130] - The company has a strong focus on innovation and market expansion strategies moving forward[171]

Financial Performance - The group's revenue increased by 119.6% from HKD 17,216,000 in the previous year to HKD 37,810,000 in the current year, primarily due to growth in property management and related services[32]. - Revenue from property management and related services reached HKD 25,407,000, a significant increase from HKD 3,847,000 in the previous year[33]. - The gardening services and plant sales segment saw a slight increase of 3.2%, with revenue rising from HKD 6,310,000 to HKD 6,514,000[34]. - Rental income from investment properties decreased by 16.6%, falling from HKD 7,059,000 to HKD 5,889,000 due to a decline in average rental income per apartment[35]. - The group reported a loss attributable to owners of HKD 330,000, a significant reduction from a loss of HKD 22,961,000 in the previous year, mainly due to increased profits in property management and reduced financing costs[40]. Expenses and Costs - Operating and administrative expenses rose by 14.2%, increasing from HKD 25,276,000 to HKD 28,868,000, mainly due to higher employee costs in the property management segment in China[36]. - Financing costs decreased by 28.8%, from HKD 4,814,000 to HKD 3,428,000, attributed to a reduction in the average outstanding balance of bank borrowings and lease liabilities[39]. - Employee compensation and benefits expenses for the year ended December 31, 2021, were approximately HKD 16,733,000, up from HKD 11,447,000 in 2020[56]. Strategic Initiatives - The group plans to launch an online business platform based on intelligent risk decision-making models to expand its customer base and improve operational efficiency[28]. - The company aims to enhance its competitive advantages and synergies across regions while adhering to a prudent operational strategy[29]. - The group is actively seeking investment projects and business opportunities in core cities across the country to leverage its management experience[28]. Financial Position and Ratios - The debt-to-equity ratio as of December 31, 2021, was 127%, up from 125% in 2020, while the debt-to-asset ratio was 54%, compared to 52% in 2020[42]. - As of December 31, 2021, the company had outstanding bank loans amounting to HKD 160,000,000, unchanged from 2020[55]. - The group's net current liabilities were approximately HKD 215,020,000 as of December 31, 2021, a decrease from HKD 221,717,000 in 2020[55]. Shareholder and Governance Matters - The company aims to enhance shareholder value in the foreseeable future[52]. - The company does not recommend any dividend payment for the year ended December 31, 2021[75]. - The company has no significant transactions, arrangements, or contracts involving its directors and related parties that require disclosure[120]. - The remuneration of directors is subject to shareholder approval at the annual general meeting, with other compensation determined by the board based on performance and group results[122]. Audit and Compliance - The company received a qualified opinion from the auditor regarding the financial statements for the year ended December 31, 2021, due to insufficient audit evidence from overseas subsidiaries[86]. - The company has made multiple attempts to resolve the auditor's concerns regarding the qualified opinion from previous years, including investigations and legal consultations[86]. - The independent auditor's report expressed a qualified opinion due to insufficient evidence regarding the accounting records of an associate company[197]. Corporate Structure and Control - The company lost control over its subsidiaries WI Capital and WI Graphene as of December 31, 2021, and ceased consolidating their financial statements[47]. - The company has terminated the consolidation of WI Capital and WI Graphene due to the inability to exercise control over these subsidiaries[92]. - The management believes that the sale of the non-consolidated subsidiaries will not impact the consolidated financial statements for the year ended December 31, 2022[91]. Board and Management - The board believes that having the same individual serve as both Chairman and CEO is appropriate for implementing the company's business strategy and enhancing operational efficiency[142]. - The company has established a nomination committee responsible for reviewing the structure, size, and composition of the board[166]. - The audit committee is composed entirely of independent non-executive directors, ensuring compliance with relevant listing rules[159]. Risk Management - The board has established a risk management and internal control system, which is reviewed annually and deemed effective and adequate[183]. - The company has appointed an external consultant to review its financial reporting procedures and internal controls, providing recommendations for improvement[183]. - The board is responsible for evaluating risks associated with achieving strategic objectives and has implemented policies for insider information disclosure applicable to all employees[183].

Financial Performance - The company reported revenue of HKD 17,353,000 for the six months ended June 30, 2021, a significant increase from HKD 6,943,000 in the same period of 2020, representing a growth of 149%[18]. - Gross profit for the same period was HKD 16,170,000, compared to HKD 6,559,000 in 2020, indicating a gross margin improvement[18]. - The operating profit for the first half of 2021 was HKD 2,544,000, a turnaround from an operating loss of HKD 3,623,000 in the previous year[18]. - The net profit for the period was HKD 529,000, recovering from a net loss of HKD 6,526,000 in the first half of 2020[18]. - The company reported total comprehensive income attributable to owners of HKD 896,000, compared to a loss of HKD 6,531,000 in the same period last year[18]. - The total profit for the reportable segments was HKD 6,193,000, compared to HKD 940,000 in the previous year, indicating a substantial increase of about 558%[56]. - The group reported a profit attributable to shareholders of HKD 896,000 for the six months ended June 30, 2021, compared to a loss of HKD 6,531,000 for the same period in 2020, primarily due to increased revenue from property management services and reduced financing costs[109]. Cash Flow and Financial Position - Cash and cash equivalents increased to HKD 5,502,000 as of June 30, 2021, up from HKD 2,732,000 at the end of 2020[20]. - The net cash generated from operating activities for the six months ended June 30, 2021, was HKD 1,410,000, compared to HKD 631,000 for the same period in 2020, representing a significant increase of 123%[26]. - The net cash used in investing activities amounted to HKD (1,742,000) for the six months ended June 30, 2021, compared to HKD (110,000) in 2020, indicating a substantial increase in investment outflows[26]. - The net cash generated from financing activities was HKD 2,737,000 for the six months ended June 30, 2021, compared to a net cash used of HKD (706,000) in 2020, reflecting a positive shift in financing cash flow[26]. - The company recorded a net current liability of HKD 233,073,000 as of June 30, 2021, but the board believes that the company has sufficient financial resources to meet its obligations for at least the next twelve months[30]. - The company plans to improve its financial position by reducing costs and has received agreement from its controlling shareholder to provide sufficient funds for debt repayment[32]. Revenue Breakdown - Revenue from property management services was HKD 10,825,000 for the six months ended June 30, 2021, compared to HKD 3,254,000 in the same period of 2020, indicating an increase of about 233%[46]. - Revenue from gardening services and plant sales was HKD 3,316,000 for the six months ended June 30, 2021, compared to HKD 3,689,000 in the same period of 2020, showing a decrease of approximately 10%[46]. - The group’s revenue from customer contracts for the six months ended June 30, 2021, was HKD 14,141,000, compared to HKD 3,254,000 in the same period of 2020, marking an increase of approximately 335%[46]. - Revenue from external customers in Hong Kong was HKD 6,528,000, while revenue from mainland China reached HKD 10,825,000, indicating a strong performance in the Chinese market[61]. Assets and Liabilities - Total assets less current liabilities stood at HKD 175,524,000, slightly up from HKD 174,951,000 at the end of 2020[20]. - The total assets of the group as of June 30, 2021, were HKD 404,880,000, compared to HKD 401,573,000 as of December 31, 2020, showing a slight increase[53]. - The total liabilities of the group as of June 30, 2021, were HKD 12,063,000, compared to HKD 13,693,000 as of December 31, 2020, indicating a decrease of approximately 12%[54]. - The total assets as of June 30, 2021, amounted to HKD 422,001,000, up from HKD 417,578,000 as of December 31, 2020, reflecting a growth of approximately 1%[59]. - The total liabilities decreased to HKD 247,209,000 from HKD 243,682,000, showing a slight increase of about 1.1%[59]. Corporate Governance and Compliance - The company has adopted the corporate governance code and has complied with all provisions except for the separation of the roles of chairman and CEO, which are held by the same individual[170]. - As of June 30, 2021, the company had two independent non-executive directors, which is below the minimum requirement of three[171]. - The company appointed new independent non-executive directors in June and July 2021, restoring compliance with listing rules regarding independent directors[173]. - The audit committee reviewed the unaudited interim financial statements for the six months ending June 30, 2021, confirming compliance with relevant accounting standards and regulations[174]. - The company has committed to regular reviews of its corporate governance practices to ensure compliance and effectiveness[170]. Future Plans and Strategies - The company aims to continue expanding its market presence and enhancing its product offerings in the upcoming periods[18]. - The group aims to expand its property management services segment to enhance future revenue and profitability[114]. - The group is considering several property development projects in Southeast Asia and strategic cooperation with Shenzhen Xinzhou City Property Management Co., Ltd[115]. - The company plans to seek potential buyers for entities under the audit qualification, aiming for compliance and resolution by the end of 2021[141]. - The company anticipates that the audit qualification will be removed from the auditor's report for the fiscal year ending December 31, 2023, contingent on successful sales of the relevant entities[141].

Financial Performance - The company recorded a net loss attributable to shareholders of approximately HKD 22,961,000 for the year ended December 31, 2020, compared to a net loss of HKD 10,000 for the year ended December 31, 2019, indicating a significant increase in losses [17]. - Revenue for the year ended December 31, 2020, was approximately HKD 17,216,000, representing a 28% increase from approximately HKD 13,458,000 for the year ended December 31, 2019, primarily due to new income generated from property management services [18]. - The company achieved a 28% reduction in operating and administrative expenses, decreasing from approximately HKD 34,951,000 to approximately HKD 25,276,000 [21]. - Financing costs decreased by 41% to approximately HKD 4,814,000, down from HKD 8,104,000 in 2019, primarily due to the repayment of bank loans amounting to HKD 40,000,000 [21]. - The company reported a total administrative expense of HKD 2,227,000 for the year ended December 31, 2020, compared to HKD 2,263,000 in 2019, indicating a decrease of approximately 1.6% [194]. - The operating loss for the year ended December 31, 2020, was HKD 2,227,000, which is consistent with the previous year's loss of HKD 2,263,000 [194]. - The total comprehensive expenses for the year amounted to HKD 2,295,000, slightly increasing from HKD 2,267,000 in 2019, reflecting a rise of about 1.2% [194]. Revenue Sources - Rental income increased by 3% year-on-year to approximately HKD 7,059,000, up from HKD 6,874,000 in 2019 [21]. - Gardening service revenue decreased by 4% to approximately HKD 6,310,000, down from HKD 6,584,000 in 2019 [21]. - Revenue from gardening services decreased by 4% to approximately HKD 6,310,000, down from HKD 6,584,000 in 2019 due to the impact of the COVID-19 pandemic [24]. - Rental income from investment properties rose by 3% to approximately HKD 7,059,000, while after deducting trade receivables impairment losses of HKD 182,000, it recorded zero growth [23]. Assets and Liabilities - As of December 31, 2020, the total equity attributable to the owners of the company was approximately HKD 173,883,000, a decrease from HKD 196,842,000 in 2019 [22]. - The company recorded a net current liability of approximately HKD 232,799,000 as of December 31, 2020, compared to HKD 221,464,000 in 2019 [35]. - The debt-to-equity ratio as of December 31, 2020, was 125%, compared to 108% in 2019, while the debt-to-asset ratio was 52%, up from 50% in 2019 [36]. - As of December 31, 2020, the group's current liabilities exceeded its current assets by approximately HKD 232,799,000, indicating significant uncertainty regarding the ability to continue as a going concern [200]. - Non-current assets decreased from HKD 1,901,000 in 2019 to HKD 1,508,000 in 2020, reflecting a decline of approximately 20.7% [196]. - Current liabilities, including trade and other payables, rose significantly from HKD 7,108,000 in 2019 to HKD 9,107,000 in 2020, an increase of approximately 28.1% [196]. Corporate Strategy and Development - The company plans to launch smart home technology products and community value-added services to expand its customer base and enhance operational efficiency [13]. - The company aims to continue its business expansion in core cities across the country, leveraging its management experience to maximize intrinsic value [13]. - The company plans to expand its property management services and enhance its "Xingu Property" service brand, focusing on customer value and community platform development [32]. - The company has made progress in sustainable development and environmental responsibility while seeking business growth [53]. Governance and Compliance - The board emphasized the importance of compliance and risk control in its operations amidst a series of regulatory policies introduced during the year [13]. - The company has adopted a dividend policy that allows for the distribution of dividends in cash or shares, emphasizing continuity, stability, and sustainability [42]. - The company has engaged an independent internal control consultant to conduct an annual review of its internal control system, risk management, and financial reporting [82]. - The company has established policies and procedures for disclosing inside information applicable to all employees [179]. - The company’s board consists of independent non-executive directors, with a requirement to have at least three independent members as per listing rules [149]. Audit and Financial Reporting - The independent auditor's report highlighted concerns regarding the adequacy of evidence for investments in Five Color Stone Technology Corporation, with a book value of HKD 12,211,000 as of December 31, 2019 [191]. - The company’s independent auditor expressed a qualified opinion on the financial statements due to the issues identified with the investments and accounting records [190]. - The company has been actively working to resolve the audit qualifications raised by auditors regarding the financial years ending December 31, 2018, and December 31, 2019, to avoid further qualifications for the year ending December 31, 2020 [69]. - The company has established a dialogue with its auditors regarding the actions and plans that may be taken to ultimately remove the audit qualifications [75]. - The audit committee reviewed and recommended the approval of the consolidated financial statements for the year ending December 31, 2020, which included a positive profit forecast announcement [156]. Shareholder Information - The company did not recommend any dividend payment for the year ended December 31, 2020 [57]. - The company’s available distributable reserves as of December 31, 2020, were zero, consistent with the previous year [64]. - Major shareholders hold a total of 2,112,533,229 shares, representing 74.94% of the company [114]. - As of December 31, 2020, the company’s executive director, Mr. Huang, holds 2,112,533,229 shares, representing 74.94% of the company’s ordinary shares [92].

Financial Performance - Revenue for the six months ended June 30, 2020, was HKD 6,943,000, compared to HKD 6,647,000 for the same period in 2019, representing an increase of 4.45%[18] - Gross profit for the same period was HKD 6,559,000, up from HKD 6,253,000 in 2019, indicating a growth of 4.89%[18] - The operating loss increased to HKD 3,623,000 from HKD 2,882,000, reflecting a deterioration of 25.67%[18] - The net loss attributable to shareholders for the period was HKD 6,526,000, compared to HKD 7,375,000 in 2019, showing an improvement of 11.5%[18] - Basic and diluted loss per share was HKD 0.23, compared to HKD 0.26 for the same period last year[18] - The company reported a comprehensive loss before tax of HKD (6,526) million for the six months ended June 30, 2020, an improvement from a loss of HKD (7,375) million in the same period of 2019[54] - The company reported a loss per share of HKD (2.31) for the six months ended June 30, 2020, compared to a loss per share of HKD (2.61) in the same period of 2019, indicating an improvement in loss per share[71] Assets and Liabilities - Total assets as of June 30, 2020, were HKD 425,394,000, slightly down from HKD 427,154,000 at the end of 2019[20] - Current liabilities increased to HKD 235,083,000 from HKD 230,308,000, indicating a rise of 2.5%[20] - The company's net asset value decreased to HKD 190,311,000 from HKD 196,842,000, a decline of 3.34%[20] - The total liabilities as of June 30, 2020, were HKD 18,600,000, compared to HKD 17,094,000 as of December 31, 2019, showing an increase of approximately 8.8%[52] - The total trade and other payables as of June 30, 2020, were HKD 72,240,000, an increase from HKD 27,540,000 as of December 31, 2019[80] - Bank borrowings as of June 30, 2020, were HKD 160,000,000, reduced from HKD 200,000,000 as of December 31, 2019[82] - The company's asset-liability ratio as of June 30, 2020, was 113%, compared to 108% as of December 31, 2019[109] Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2020, was HKD 631,000, compared to a net cash used of HKD 14,771,000 in the same period of 2019[24] - The net cash used in investing activities was HKD 110,000, a significant decrease from HKD 10,887,000 in the previous year[24] - The net cash and cash equivalents at the end of the period were HKD 1,525,000, down from HKD 1,945,000 at the end of the same period in 2019[24] - The company raised HKD 40,000,000 from the ultimate parent company during the period[24] - The company incurred interest payments of HKD 2,867,000, a decrease from HKD 3,853,000 in the same period of 2019[24] Revenue Sources - Revenue from plant sales and gardening services was HK$3,254,000 for the six months ended June 30, 2020, down from HK$3,468,000 in 2019, a decrease of about 6.2%[44] - Rental income for the same period was HK$3,689,000, compared to HK$3,179,000 in 2019, reflecting an increase of approximately 15.9%[44] - The group's revenue from external customers for the property investment segment was HK$3,689,000 for the six months ended June 30, 2020, compared to HK$3,179,000 in 2019, an increase of approximately 15.9%[52] - Rental income from property-related business increased by approximately 16.0% to HKD 3,689,000 compared to HKD 3,179,000 in the first half of 2019, driven by increased occupancy rates despite lower average rental income per residential unit[98] - Revenue from horticultural services decreased by approximately 6.2% to HKD 3,254,000 from HKD 3,468,000 in the first half of 2019, primarily due to the impact of COVID-19 in Hong Kong[99] Corporate Governance and Compliance - The company has adopted all new and revised Hong Kong Financial Reporting Standards effective from January 1, 2020, with no significant impact on its financial statements[30] - The audit committee reviewed the unaudited interim financial statements for the six months ending June 30, 2020, and found them compliant with relevant accounting standards[154] - The company has adopted the corporate governance code and confirmed compliance by all directors during the reporting period[152] Shareholder Information - The company has issued 2,819,102,084 shares, with no changes in share capital as of June 30, 2020[110] - Major shareholders hold a total of 2,112,533,229 shares, representing 74.94% of the company's equity[145] - Huang Binghuang holds 2,112,533,229 shares, representing 74.94% of the company's ordinary shares[140] - Huang Binghuang is considered to have indirect control over 2,112,533,229 shares due to holding 90% of the controlling company[147] Employment and Operations - As of June 30, 2020, the group had a total of 23 employees, down from 37 in 2019[119] - The group continues to engage in property-related businesses, plant sales, and providing gardening services, which are key revenue sources[96] Future Outlook - The company anticipates having sufficient financial resources to meet its obligations for at least the next twelve months[27] - The company aims to enhance property management through industrialization and platform consumption models, focusing on high-tech industry management systems[107]