Financial Performance - Revenue for the six months ended June 30, 2024, reached HKD 42,705,000, a significant increase of 113.5% compared to HKD 20,007,000 for the same period in 2023[4] - Operating profit for the same period was HKD 15,544,000, compared to HKD 1,201,000 in the previous year, reflecting a substantial growth[4] - The net profit for the six months ended June 30, 2024, was HKD 3,349,000, a turnaround from a loss of HKD 2,797,000 in the prior year[4] - Basic earnings per share for the period was HKD 0.10, compared to a loss per share of HKD 0.10 in the same period last year[6] - Total comprehensive income for the period amounted to HKD 3,065,000, compared to a loss of HKD 2,609,000 in the previous year[5] - The company reported a pre-tax profit of HKD 3,405,000 after accounting for various expenses, including financing costs of HKD 5,943,000[24] - The group recorded a profit of approximately 3,405,000 HKD for the reporting period, compared to a loss of about 2,647,000 HKD for the six months ended June 30, 2023[77] Assets and Liabilities - Non-current assets as of June 30, 2024, totaled HKD 1,275,457,000, compared to HKD 349,981,000 as of December 31, 2023[7] - The total assets of the group as of June 30, 2024, amounted to HKD 1,364,643,000, up from HKD 598,619,000 as of December 31, 2023, indicating a growth of 128.3%[27] - The total liabilities of the group as of June 30, 2024, were HKD 875,174,000, compared to HKD 465,575,000 at the end of 2023, representing an increase of 88.0%[27] - The company has a net current liability of approximately HKD 186,648,000, raising significant doubts about its ability to continue as a going concern[13] - The company's total equity as of June 30, 2024, was HKD 489,469,000, up from HKD 133,044,000 as of January 1, 2024[9] Cash Flow - The company reported a net cash outflow from operating activities of HKD 14,856,000 for the six months ended June 30, 2024, compared to HKD 975,000 for the same period in 2023[10] - The company recorded a net cash outflow from investing activities of HKD 300,042,000, compared to an inflow of HKD 3,637,000 in the same period last year[10] - Cash and cash equivalents at the end of the period increased to HKD 27,131,000 from HKD 5,720,000 in the previous year[10] - The group’s cash and cash equivalents as of June 30, 2024, were HKD 257,255,000, compared to HKD 176,516,000 at the end of 2023, reflecting a growth of 45.7%[27] Revenue Segmentation - Revenue from property management and related services was HKD 9,639,000, down from HKD 13,804,000 in the previous year, indicating a decline of 30.5%[22] - Revenue from rental income from investment properties was HKD 26,567,000, compared to HKD 16,951,000 in the previous year, marking a growth of 56.8%[22] - Revenue from a major customer (Customer A) for property investment and management services was HKD 2,955,000, up from HKD 2,126,000 in the previous year, indicating a growth of 39.1%[32] - The company operates three main business segments: property investment, gardening services and plant sales, and property management and related services[20] Cost Management - Employee costs decreased to HKD 8,733,000 from HKD 10,685,000, reflecting cost management efforts[4] - The company plans to take actions to reduce costs and has received commitments from its controlling shareholder to provide sufficient funds to meet its obligations[13] - Financing costs for the six months ended June 30, 2024, totaled HKD 12,139,000, compared to HKD 3,848,000 in the previous year, representing an increase of 215.5%[34] Shareholder Information - The company’s major shareholder, Zhongya Holdings Group Limited, holds 3,812,395,735 shares, representing 60.01% of the total ordinary shares[98] - Li Jun and Zhongjun Holdings Group Limited each hold 951,500,000 shares, accounting for 14.98% of the total ordinary shares[101] - The company has not issued any stock options under its stock option plan since it expired on June 22, 2023, and no stock options were granted, exercised, or canceled during the reporting period[104] Corporate Governance - 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[106][108] - The audit committee has reviewed the interim performance report and confirmed compliance with relevant accounting standards and regulations[109] Future Outlook - The group expects improved overall financial performance and business development following the completion of leasing agreements, leveraging the lower cost environment in China and Hong Kong[94] - The company plans to adopt a new stock option plan or share incentive plan in the future to enhance its compensation structure and attract talent[104]

Financial Performance - The company reported a revenue of HKD 42,705,000 for the six months ended June 30, 2024, representing a significant increase of 113.5% compared to HKD 20,007,000 for the same period in 2023[1] - The operating profit for the period was HKD 15,544,000, compared to an operating loss of HKD 12,139,000 in the previous year, indicating a turnaround in operational performance[1] - The net profit for the period was HKD 3,349,000, a recovery from a net loss of HKD 2,797,000 in the prior year[2] - The total comprehensive income for the period was HKD 3,068,000, compared to a comprehensive loss of HKD 2,609,000 in the same period last year[2] - Basic and diluted earnings per share for the period were both HKD 0.10, unchanged from the previous year[2] - The company reported a pre-tax loss of HKD 2,647,000 for the six months ended June 30, 2023, while for the same period in 2024, it achieved a pre-tax profit of HKD 3,405,000[19] - The company reported other income of HKD 2,303,000 for the six months ended June 30, 2024, compared to HKD 721,000 in the same period of 2023, representing an increase of 219.4%[27] - The company recorded a profit of approximately HKD 3,405,000, compared to a loss of about HKD 2,647,000 in the previous period[65] Assets and Liabilities - The company's total assets as of June 30, 2024, were HKD 1,275,457,000, a substantial increase from HKD 349,981,000 as of December 31, 2023[3] - The total non-current assets as of June 30, 2024, were HKD 1,275,457,000, compared to HKD 349,981,000 as of December 31, 2023, showing a growth of 264.5%[26] - The total liabilities increased to HKD 875,174,000 as of June 30, 2024, compared to HKD 465,575,000 at the end of 2023, marking an increase of 88.0%[21] - The company reported a net current liability of approximately HKD 186,648,000, raising concerns about its ability to continue as a going concern[7] - The company reported bank borrowings of HKD 144,000,000 as of June 30, 2024, down from HKD 160,000,000 as of December 31, 2023, indicating a reduction in leverage[47] - Lease liabilities as of June 30, 2024, were HKD 616,560,000, compared to HKD 873,000 as of December 31, 2023, reflecting a significant adjustment in lease accounting[46] Revenue Breakdown - Revenue from property management and related services was HKD 9,639 thousand, down 30.5% from HKD 13,804 thousand in the previous year[16] - Revenue from gardening services and plant sales was HKD 3,043 thousand, a slight decrease of 3.3% from HKD 3,147 thousand in the previous year[16] - Rental income from investment properties was HKD 3,456 thousand, an increase of 13.1% compared to HKD 3,056 thousand in the previous year[16] - The group reported total revenue of HKD 42,705 thousand for the six months ended June 30, 2024, a decrease of 32.5% compared to HKD 63,656 thousand for the same period in 2023[16] - The company's revenue increased from approximately HKD 20,007,000 to about HKD 42,705,000, representing a growth of 113.5%[55] - Rental income from investment properties surged from approximately HKD 3,056,000 to about HKD 30,023,000, marking an increase of 882.4%[56] - Property management and related services revenue decreased from approximately HKD 13,804,000 to about HKD 9,639,000, a decline of 30.2%[57] Financial Condition and Risks - The group has implemented several measures to improve its financial condition, including cost reduction actions and support from the controlling shareholder for debt obligations[8] - The group has received a letter from the bank indicating that it does not expect to demand repayment or cancel loans within the next twelve months, barring any default events[8] - The company has a floating interest rate on bank loans, which exposes it to cash flow interest rate risk, with a current borrowing rate of 3.95%[48] - The company is closely monitoring foreign exchange risks and may consider hedging against significant currency risks if necessary[73] Strategic Focus and Future Outlook - The company is focused on property investment and related services, with plans for future expansion in these areas[5] - The company expects to benefit from a strengthened project portfolio following the completion of leasing agreements, which is anticipated to enhance overall financial performance and business development[75] - Future outlook includes potential market expansion and new product development to drive growth[82] - The management emphasizes the importance of innovation in technology to stay competitive in the industry[82] - The company is exploring opportunities for mergers and acquisitions to strengthen its market presence[82] Corporate Governance - The board of directors includes executive directors Huang Binghuang (Chairman and CEO), Xia Ping, and Wang Lijiao, as well as independent non-executive directors Cao Siwei, Wang Rongfang, and Duan Rihuang[82] - The board is committed to transparency and regular updates on financial performance and strategic direction[82] Miscellaneous - The company did not recommend any interim dividend for the reporting period, consistent with the previous year[32] - The company has no major investment or capital asset plans as of June 30, 2024[74] - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period[74] - The announcement date is August 28, 2024, indicating a recent update on company performance[82]

Revenue and Financial Performance - For the fiscal year ending December 31, 2023, the group's revenue decreased by HKD 1,608,000 or 4.0% to HKD 38,267,000, primarily due to a decline in property management and related services revenue, partially offset by an increase in rental income from investment properties[30]. - Revenue from property management and related services recorded HKD 25,365,000, down from HKD 27,768,000 in the previous year[27]. - The group’s gardening services and plant sales revenue increased by HKD 161,000 or 2.5% to HKD 6,504,000[32]. - Rental income from investment properties in Hong Kong rose by HKD 634,000 or 11% to HKD 6,398,000, attributed to an increase in average rental income per apartment[33]. - The group recorded a profit of HKD 2,182,000 for the year, compared to a loss of HKD 47,007,000 for the year ended December 31, 2022, primarily due to a fair value gain of HKD 2,000,000 on investment properties, while the previous year had a fair value loss of HKD 46,000,000[38]. - As of December 31, 2023, the fair value of pledged investment properties was HKD 348,000,000, slightly up from HKD 346,000,000 in 2022[39]. - The group has pledged investment properties and bank deposits valued at HKD 363,332,000 as of December 31, 2023, to secure bank borrowings[190]. Costs and Expenses - Employee costs increased by HKD 2,419,000 or 13.1% to HKD 20,922,000, mainly due to salary increases and growth in employee numbers[36]. - Other property management-related expenses decreased by HKD 2,260,000 or 24.2% to HKD 7,095,000, mainly due to the absence of one-time repair and maintenance costs in Shenzhen[43]. - Other operating and administrative expenses increased by HKD 512,000 or 7.0% to HKD 7,809,000, primarily due to higher legal and professional fees incurred during the year[44]. - The total employee cost for the year ended December 31, 2023, was approximately HKD 20,922,000, an increase from HKD 18,503,000 in 2022[189]. Financing and Debt - Financing costs rose by HKD 3,435,000 or 70.8% to HKD 8,289,000, due to an increase in bank borrowing rates[37]. - Bank loans remained unchanged at HKD 160,000,000 as of December 31, 2023, secured by investment properties valued at HKD 348,000,000 and other collateral[41]. - The company has a bank loan principal of HKD 160,000,000 outstanding as of December 31, 2023, unchanged from the previous year[102]. - The company will repay the bank loan principal of HKD 16,000,000 by March 2024[94]. - The group has outstanding bank borrowings amounting to HKD 160,000,000, unchanged from the previous year[187]. - The group received written confirmation from its controlling shareholder to continue providing financial support for debt repayment for at least the next twelve months[189]. Corporate Governance - The company has established a Nomination Committee, which is responsible for reviewing the board's structure, composition, and diversity, ensuring fair and transparent nominations[78]. - The board has achieved a measurable target of having at least one female director, with the current gender ratio being 2:1 in favor of male directors[82]. - The company is committed to maintaining gender diversity and equality among its employees, with a current gender ratio of 5:2 among staff, including senior management[82]. - The company has established a Compensation Committee to review the overall compensation policy for all directors and senior management, making recommendations to the board[90]. - The company has complied with all corporate governance code provisions except for the separation of the roles of Chairman and CEO, which are held by the same individual[109]. - The company has established mechanisms to ensure independent opinions and suggestions are available to the board[115]. - The company has a structured approach to review its corporate governance policies regularly[109]. - The company has adopted a shareholder communication policy to ensure effective and timely information dissemination[150]. Shareholder Information - As of December 31, 2023, the major shareholder, Central Asia Holdings Group Limited, holds 2,112,395,735 ordinary shares, representing 74.93% of the company's equity[85]. - The company has not disclosed any interests held by directors or their close associates in competing businesses as of December 31, 2023[75]. - The company has not identified any other individuals with interests in its shares, aside from the disclosed major shareholders[76]. - The company has not purchased, sold, or redeemed any of its listed securities during the year ended December 31, 2023[119]. Audit and Compliance - The Audit Committee held two meetings and one meeting with external auditors, reviewing the financial statements for the year ending December 31, 2022, and the interim report for the six months ending June 30, 2023[87]. - The Audit Committee is responsible for monitoring the company's financial reporting procedures and internal control systems, ensuring compliance with listing rules and legal requirements[89]. - The audit committee, composed of three independent non-executive directors, reviewed the financial statements for the year ending December 31, 2023, with no objections raised[199]. - The external auditor's fee for the year was HKD 550,000, with no non-audit services provided[146]. - The company has appointed a new auditor to replace the previous one as of December 6, 2023[106]. Future Outlook and Strategy - The group aims to strengthen its property management and related services to stimulate future revenue and profit growth[4]. - The completion of leasing and subscription agreements is expected to provide stable rental income and ensure cash flow from leased properties[25]. - The group will enhance its competitive advantages and synergies across regions while adhering to a prudent development strategy[25]. - The group continues to engage in property investment and related services, focusing on the Greater Bay Area[24]. - The group expects stable rental income from the Silicon Valley Industrial Park lease agreement, which will enhance cash flow and property management solutions[47]. - A lease agreement was signed for a total area of 350,855 square meters with a total rent of approximately RMB 1,413.4 million (about HKD 1,526.5 million) for a term of 10 years[67]. - The group issued convertible bonds totaling HKD 353,360,000 with a 3.6% interest rate, to fund the deposit under the lease agreement[68]. - The net proceeds from the bond issuance amount to approximately HKD 352,360,000, which will be used to provide funding for a deposit of RMB 282.6 million under a leasing agreement[120]. - The total number of shares to be issued upon full conversion of the bonds is 3,533,600,000, with a total par value of HKD 176,680,000[120]. - The closing price of the company's shares on the Stock Exchange on June 6, 2023, was HKD 0.150[120]. - The company maintained the required public float level as per the listing rules as of the annual report date[121]. - The group has no significant investment or capital asset plans for the year, aside from leasing agreements[191]. - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the year[195].

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].