Financial Performance - The Group's revenue increased by approximately 3% to HK$36,492,000 in 2021, driven by the full-year operation of the North Point guesthouse, which contributed a 33% increase in its segment revenue[26] - The net loss attributable to the owners decreased by 48% to HK$12,491,000 in 2021, compared to HK$24,063,000 in 2020[12] - Basic and diluted loss per share improved by 48% to HK$3.83 in 2021 from HK$7.38 in 2020[12] - Total revenue increased by approximately 3% to HK$36,492,000, driven by the full-year operation of the North Point hotel, which contributed a revenue increase of about 33%[28] - The group's net loss decreased by 44% to approximately HK$14,312,000, attributed to a fair value gain of HK$900,000 from investment properties and a reduction in financing costs by HK$2,001,000[28] Assets and Liabilities - Total equity decreased by 4% to HK$308,280,000 in 2021 from HK$322,012,000 in 2020[12] - The Group's total assets as of December 31, 2021, were HK$547,198,000, down from HK$572,298,000 in 2020[23] - Total liabilities decreased to HK$238,918,000 in 2021 from HK$250,286,000 in 2020[23] - As of December 31, 2021, the group's net asset value was approximately HK$308,280,000, with total assets and total liabilities at approximately HK$547,198,000 and HK$238,918,000 respectively[31] - The Group's total borrowings amounted to HK$201,783,000, a decrease from HK$204,371,000 in 2020[127][131] Investment Properties - The Group experienced a fair value gain on investment properties of HK$900,000 in 2021, compared to no gain in 2020[25] - The valuation of investment properties increased by HK$900,000 to HK$131,000,000 during the year under review[33] - Total rental income from Hong Kong and Macau investment properties amounted to HK$4,303,000, an increase of approximately 1% compared to the previous year[32] - The average yield from Macau properties was recorded at about 5%, despite a 4% decrease in rental income to HK$2,827,000 due to vacancies and early termination of tenancies[37] - The group's Hong Kong investment properties achieved nearly 100% occupancy, supported by a resilient local residential market and modest price increases[38] Operational Performance - The property management segment experienced a substantial revenue drop, offsetting some of the gains from the guesthouse operations[26] - Turnover for the hospitality service segment increased by 33% to HK$11,982,000, but the segment loss rose to HK$5,635,000 due to increased operational costs and reduced rental concessions[48] - The hair styling business segment turnover increased by 7% to HK$16,314,000, but the net loss increased to HK$108,000 due to the absence of government subsidies and decreased rental concessions[43] - The occupancy rate of the two hostels averaged 90% in 2021, compared to 85% in the previous year, while the average room rate dropped by approximately 2%[49] Government Support and Subsidies - Government subsidies received decreased to HK$244,000 in 2021 from HK$2,167,000 in 2020[25] - Other income decreased by 37% to HK$7,212,000, primarily due to a reduction in government subsidies by HK$1,923,000 and a decrease in unrealized exchange gains on RMB deposits by HK$2,452,000[30] Digital Transformation and Initiatives - The Group is focusing on digital transformation initiatives, including contactless check-in and AI analytics, to enhance guest experience in response to changing customer demands[54] - The Group is exploring digital transformation initiatives, including non-contact check-in and AI systems, to enhance guest experience[57] Strategic Planning and Future Outlook - The Group is committed to Environmental, Social, and Governance initiatives, including waste and energy management, as part of its strategic priorities[54] - The Group anticipates that as the business environment in Hong Kong stabilizes, the prices of securities investments will gradually reflect their intrinsic value[56] - The Group is looking to capitalize on opportunities to convert Renminbi holdings to reap exchange gains amid increasing international trade demand[85] - The Group is exploring potential hotel operations in neighboring cities to mitigate reliance on a single geographical market[86] Share Capital and Governance - The Board of Directors did not recommend the payment of a final dividend for the year ended December 31, 2021, consistent with the previous year[76] - The total number of ordinary shares available for issue under the share option scheme is 29,347,742 shares, representing 9% of the issued share capital[116] - The maximum entitlement of each eligible participant under the share option scheme must not exceed 1% of the shares in issue in any 12-month period unless approved by shareholders[116] - The remaining life of the share option scheme is 7 years, expiring on May 29, 2029[118] Employee and Management Information - Total staff costs (excluding Directors' emoluments) for the year ended December 31, 2021, amounted to approximately HK$12,512,000, an increase from HK$11,396,000 in 2020[75] - Employee remuneration packages are reviewed annually based on performance appraisals and business performance, with additional benefits including medical insurance and performance-related bonuses[109] - The Company has a diverse management team with expertise across various sectors, including finance, human resources, and corporate affairs[179] Shareholder Information - The Group's largest customer accounted for 4% of sales, while the five largest customers combined represented 12% of total sales[140][143] - The largest supplier accounted for 38% of purchases, and the five largest suppliers combined represented 87% of total purchases[140][143] - The company has disclosed substantial shareholders' interests and short positions as required under Section 336 of the SFO[195]

[Corporate Information](index=2&type=section&id=Corporate%20Information) This report outlines Century Sunshine (Group) Holdings Limited's corporate structure, including board members, committee chairs, legal advisors, auditors, and bankers - This report outlines the corporate structure of Century Sunshine (Group) Holdings Limited, including information on board members, chairpersons and members of various committees, principal legal advisors, auditors, and bankers[3](index=3&type=chunk)[4](index=4&type=chunk)[6](index=6&type=chunk) - The company's shares are listed on the Stock Exchange of Hong Kong under stock code **00079**[7](index=7&type=chunk) [Interim Results](index=4&type=section&id=Interim%20Results) The interim results highlight the group's financial performance and position, detailing income, financial status, equity changes, and cash flows [I. Condensed Consolidated Statement of Comprehensive Income](index=4&type=section&id=I.%20CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20COMPREHENSIVE%20INCOME) For the six months ended June 30, 2021, group revenue increased by **15%** to **HKD 18.293 million** year-on-year, with loss significantly narrowing by **95%** to **HKD 1.29 million** primarily due to fair value gains on financial assets 2021 Half-Year Key Financial Performance | Metric | 2021 Half-Year (HKD Thousands) | 2020 Half-Year (HKD Thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Revenue** | 18,293 | 15,919 | +15.0% | | **Gross Profit** | 6,343 | 5,838 | +8.6% | | **Fair value gains/(losses) on financial assets at fair value through profit or loss** | 5,198 | (17,950) | N/A | | **Loss for the period** | (1,290) | (27,913) | -95.4% | | **Loss for the period attributable to owners of the Company** | (337) | (27,514) | -98.8% | | **Basic loss per share** | (0.10) HK cents | (8.44) HK cents | -98.8% | [II. Condensed Consolidated Statement of Financial Position](index=6&type=section&id=II.%20CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20FINANCIAL%20POSITION) As of June 30, 2021, total group assets were **HKD 566 million**, a slight decrease from year-end 2020, with net assets remaining relatively stable at **HKD 321 million** and net current liabilities at **HKD 28.3 million** Financial Position Summary | Metric | June 30, 2021 (HKD Thousands) | December 31, 2020 (HKD Thousands) | | :--- | :--- | :--- | | **Non-current assets** | 370,797 | 375,288 | | **Current assets** | 195,305 | 197,010 | | **Current liabilities** | 223,606 | 225,266 | | **Net current liabilities** | (28,301) | (28,256) | | **Net assets** | 321,467 | 322,012 | | **Total equity** | 321,467 | 322,012 | [III. Condensed Consolidated Statement of Changes in Equity](index=8&type=section&id=III.%20CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CHANGES%20IN%20EQUITY) As of June 30, 2021, total group equity slightly decreased to **HKD 321 million** from **HKD 322 million** at the beginning of the year, with the loss for the period partially offset by fair value changes in equity instruments - Equity attributable to owners of the company slightly increased from **HKD 319.8 million** to **HKD 320.3 million** during the period, primarily due to **HKD 0.745 million** in other comprehensive income (fair value changes in equity instruments) offsetting a **HKD 0.337 million** loss for the period[22](index=22&type=chunk) [IV. Condensed Consolidated Statement of Cash Flows](index=10&type=section&id=IV.%20CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CASH%20FLOWS) In the first half of 2021, the group's net cash and cash equivalents decreased by **HKD 9.668 million**, ending the period at **HKD 16.657 million**, with significantly reduced cash outflow from operating activities Cash Flow Summary | Metric | 2021 Half-Year (HKD Thousands) | 2020 Half-Year (HKD Thousands) | | :--- | :--- | :--- | | **Net cash used in operating activities** | (51) | (7,419) | | **Net cash used in investing activities** | (2,668) | 9,853 | | **Net cash used in financing activities** | (6,949) | (7,610) | | **Net decrease in cash and cash equivalents** | (9,668) | (5,176) | | **Cash and cash equivalents at end of period** | 16,657 | 16,690 | [V. Notes to the Interim Financial Report](index=11&type=section&id=V.%20NOTES%20TO%20THE%20INTERIM%20FINANCIAL%20REPORT) The notes detail the financial statement preparation basis, accounting policies, and item specifics, highlighting significant growth in hotel services revenue and a turnaround in securities investment, with no interim dividend proposed - The group primarily engages in six main businesses: hair styling, hotel and hospitality services, property investment, securities investment, property project management, and money lending[30](index=30&type=chunk)[34](index=34&type=chunk)[46](index=46&type=chunk) Revenue and Results by Business Segment (Six Months Ended June 30) | Business Segment | 2021 Revenue (HKD Thousands) | 2020 Revenue (HKD Thousands) | 2021 Results (HKD Thousands) | 2020 Results (HKD Thousands) | | :--- | :--- | :--- | :--- | :--- | | Hair Styling | 8,264 | 7,761 | 51 | 162 | | Hotel and Hospitality Services | 5,921 | 2,589 | (1,317) | (1,366) | | Property Investment | 2,141 | 2,182 | (2,156) | (1,916) | | Securities Investment | 1,535 | 1,587 | 6,733 | (16,363) | | Property Project Management | 428 | 1,800 | (35) | (42) | | Money Lending | 4 | – | (11) | (15) | | **Total** | **18,293** | **15,919** | **3,265** | **(19,540)** | - The directors do not recommend the payment of any interim dividend for the six months ended June 30, 2021[72](index=72&type=chunk)[76](index=76&type=chunk) [Business Review](index=27&type=section&id=Business%20Review) This section provides a detailed review of the group's diverse business segments, highlighting performance drivers and strategic initiatives [I. Overall Performance](index=28&type=section&id=I.%20OVERALL%20PERFORMANCE) In the first half of 2021, group turnover increased by **15%** to **HKD 18.293 million**, primarily due to the North Point hotel, with net loss significantly narrowing by **95%** to **HKD 1.29 million** driven by fair value gains on financial assets and reduced finance costs - Turnover increased by **15%** to **HKD 18.293 million**, mainly due to the North Point hotel, which commenced operations in May 2020, contributing six months of operating income in this reporting period[106](index=106&type=chunk)[108](index=108&type=chunk) - Net loss significantly decreased from **HKD 27.925 million** in the prior period to **HKD 1.29 million**, primarily due to **HKD 5.198 million** fair value gains on financial assets at fair value through profit or loss (compared to a **HKD 17.95 million** loss in the prior period), **HKD 1.409 million** unrealized exchange gains from RMB deposits (compared to a **HKD 1.672 million** loss in the prior period), and a **47%** reduction in finance costs to **HKD 1.75 million** due to lower interest rates[107](index=107&type=chunk)[109](index=109&type=chunk) [II. Property Investment Business](index=29&type=section&id=II.%20PROPERTY%20INVESTMENT%20BUSINESS) Rental income from property investment slightly decreased by **2%** to **HKD 2.141 million**, with challenges in Macau's leasing market due to travel restrictions, while Hong Kong's residential market remained resilient - Rental income from the Hong Kong and Macau property portfolio was **HKD 2.141 million**, a **2%** year-on-year decrease[110](index=110&type=chunk)[112](index=112&type=chunk) - Macau's leasing market faced difficulties with vacant residential and office units due to travel restrictions, while Hong Kong's residential market remained robust due to limited supply and a low-interest rate environment[111](index=111&type=chunk)[112](index=112&type=chunk) [III. Hair Styling Business](index=30&type=section&id=III.%20HAIR%20STYLING%20BUSINESS) Hair styling business turnover grew **6%** to **HKD 8.264 million**, but segment profit dropped **69%** to **HKD 0.051 million** due to the absence of prior-period rental concessions and government subsidies - Turnover increased by **6%** year-on-year to **HKD 8.264 million**, but segment profit decreased by **69%** to **HKD 0.051 million**, primarily because of rental concessions and government subsidies in the prior period that were not present in the current period[114](index=114&type=chunk)[116](index=116&type=chunk) - The group is developing a new e-platform with government funding from the 'Distance Business Programme (D-Biz)' to offer online appointments and product sales, aiming for launch by year-end[115](index=115&type=chunk)[117](index=117&type=chunk) [IV. Hospitality Service Business](index=31&type=section&id=IV.%20HOSPITALITY%20SERVICE%20BUSINESS) Hospitality service turnover surged **129%** to **HKD 5.921 million**, driven by the North Point hotel's full-period contribution, with segment loss narrowing **4%** to **HKD 1.317 million** despite reduced government subsidies - Turnover significantly increased by **129%** year-on-year to **HKD 5.921 million**, mainly because the North Point hotel operated for six months in this reporting period compared to only two months in the prior period[118](index=118&type=chunk)[121](index=121&type=chunk) - The business shifted its focus to the local market, attracting long-stay local customers with attractive packages, and the co-living business received positive market feedback[119](index=119&type=chunk)[121](index=121&type=chunk) [V. Securities Investments Business](index=32&type=section&id=V.%20SECURITIES%20INVESTMENTS%20BUSINESS) As of period-end, the group held **HKD 76.244 million** in financial assets at fair value through profit or loss, primarily Link REIT, generating **HKD 1.535 million** in interest and dividend income and **HKD 5.198 million** in fair value gains Details of Significant Investments (As of June 30, 2021) | Company Name / (Stock Code) | Number of Shares Held | Investment Cost (HKD Thousands) | Dividend Income for the Period (HKD Thousands) | Fair Value Gain for the Period (HKD Thousands) | Fair Value at Period-End (HKD Thousands) | Approximate Percentage of Total Assets | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Link Real Estate Investment Trust (823) | 704,583 | 66,549 | 1,039 | 3,276 | 53,020 | 9.4% | [VI. Property Project Management Business](index=33&type=section&id=VI.%20PROPERTY%20PROJECT%20MANAGEMENT%20BUSINESS) The property project management business generated **HKD 0.428 million** in revenue from an ongoing office project, resulting in a segment loss of **HKD 0.035 million** - An ongoing office project generated **HKD 0.428 million** in revenue during the period, with a segment loss of **HKD 0.035 million**[127](index=127&type=chunk)[130](index=130&type=chunk) [VII. Other Business Segments](index=33&type=section&id=VII.%20OTHER%20BUSINESS%20SEGMENTS) The money lending business had minimal activity, recording only one private loan with **HKD 4,000** in revenue and a segment loss of **HKD 0.011 million** - The money lending business recorded one private loan with total revenue of **HKD 4,000** and a segment loss of **HKD 0.011 million**[128](index=128&type=chunk)[131](index=131&type=chunk) [Financial Review](index=33&type=section&id=Financial%20Review) This section provides an overview of the group's financial position, liquidity, and capital structure, along with details on employee remuneration [I. Liquidity and Financial Resources](index=34&type=section&id=I.%20LIQUIDITY%20AND%20FINANCIAL%20RESOURCES) As of June 30, 2021, the group held **HKD 113 million** in cash and pledged deposits but had net current liabilities of **HKD 28.3 million**, with a current ratio of **0.87** and improved gearing ratio of **4%** Liquidity and Capital Structure Indicators | Metric | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Cash and bank balances (including pledged)** | HKD 112,988,000 | N/A | | **Net current liabilities** | HKD 28,301,000 | HKD 28,256,000 | | **Current ratio** | 0.87 | 0.87 | | **Gearing Ratio** | 4% | 6% | - The group holds substantial RMB deposits, facing exchange rate fluctuation risks, but the board believes long-term exchange rates will remain stable[136](index=136&type=chunk)[138](index=138&type=chunk) [IV. Employee and Remuneration Policy](index=35&type=section&id=IV.%20EMPLOYEE%20AND%20REMUNERATION%20POLICY) As of period-end, the group employed **44** staff with total employee costs (excluding directors) of **HKD 6.167 million**, and **12.548 million** unexercised share options were held by an executive director - As of June 30, 2021, the group employed **44** staff, with related employee costs totaling **HKD 6.167 million**[141](index=141&type=chunk)[144](index=144&type=chunk) - As of June 30, 2021, all **12.548 million** unexercised share options were held by Ms. Tsang Siu Wan, an executive director, with no changes in options granted, exercised, or lapsed during the period[148](index=148&type=chunk)[149](index=149&type=chunk)[150](index=150&type=chunk) [Prospects](index=36&type=section&id=Prospects) This section outlines the group's future outlook, strategic responses to market uncertainties, and opportunities for business expansion and asset optimization [Prospects Summary](index=36&type=section&id=Prospects%20Summary) Despite global uncertainties, Hong Kong's economic recovery, rising vaccination rates, and government consumption vouchers are expected to stimulate local consumption, with the group adopting prudent strategies to control costs and capitalize on local tourism recovery - Despite global economic uncertainties, Hong Kong's economy shows signs of improvement (GDP growth of **7.8%** in H1 2021), with rising vaccination rates and government consumption voucher schemes expected to stimulate local consumption[153](index=153&type=chunk)[154](index=154&type=chunk) - The hotel business benefited from local long-stay traveler demand and the 'Return2HK Scheme,' with occupancy and room rates recovering, and the group will seize local tourism recovery opportunities by participating in initiatives like 'Green Lifestyle Local Tours'[156](index=156&type=chunk)[158](index=158&type=chunk) - The group will adopt prudent measures to navigate the 'new normal,' including flexible adjustment of frontline manpower, strict cost control, deferral of non-essential capital expenditures, and consideration of divesting non-core investment properties when attractive offers arise[160](index=160&type=chunk)[161](index=161&type=chunk) [Corporate Governance](index=39&type=section&id=Corporate%20Governance) This section details the group's adherence to corporate governance principles, including board and shareholder interests, and compliance with listing rules [Directors' and Shareholders' Interests](index=40&type=section&id=Directors'%20and%20Shareholders'%20Interests) This section discloses directors' and major shareholders' interests in company shares, with Executive Chairman Mr. Tsang Chiu Wu and his associates holding approximately **33%**, and Ms. Szeto Yuk Lin and her associates holding about **15.64%** - Executive Chairman Mr. Tsang Chiu Wu and Executive Director Ms. Tsang Siu Wan, through their controlled entity ST Investments Holding Limited, collectively hold **33.00%** of the company's shares[165](index=165&type=chunk)[178](index=178&type=chunk) - Major shareholder Ms. Szeto Yuk Lin holds **15.64%** of the company's shares through her controlled entities[179](index=179&type=chunk) - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[183](index=183&type=chunk)[185](index=185&type=chunk) [Compliance and Committees](index=45&type=section&id=Compliance%20and%20Committees) The company complied with Listing Rules' Corporate Governance Code during the period, with two deviations noted, and all directors confirmed adherence to the standard code for securities transactions - The company had two deviations from the Corporate Governance Code: Executive Chairman Mr. Tsang Chiu Wu concurrently performed the duties of Chief Executive Officer, and Independent Non-executive Director Mr. Hui Yan Kit was unable to attend the Annual General Meeting on May 28, 2021[191](index=191&type=chunk) - The Audit Committee reviewed the unaudited condensed financial statements for the six months ended June 30, 2021[188](index=188&type=chunk) - All directors confirmed compliance with the standard code for securities transactions by directors during the reporting period[189](index=189&type=chunk)[190](index=190&type=chunk)

[Corporate Information](index=3&type=section&id=Corporate%20Information) The report provides key corporate information including the Board of Directors, committee members, company secretary, auditor, bankers, and registered office - The report provides key corporate information including the Board of Directors, committee members, company secretary, auditor, bankers, and registered office[4](index=4&type=chunk)[5](index=5&type=chunk)[7](index=7&type=chunk) [Financial Highlights](index=5&type=section&id=Financial%20Highlights) In FY2020, the company's revenue increased by 14% year-on-year, but loss attributable to owners expanded by 13%, with basic loss per share widening from 6.63 HK cents to 7.38 HK cents - In FY2020, the company's revenue increased by **14%** year-on-year, but loss attributable to owners expanded by **13%**, with basic loss per share widening from **6.63 HK cents** to **7.38 HK cents**[11](index=11&type=chunk) FY2020 Financial Highlights | Metric | 2020 (HKD thousands) | 2019 (HKD thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | **Revenue** | 35,348 | 31,023 | +14% | | **Loss Attributable to Owners** | (24,063) | (21,234) | +13% | | **Basic Loss Per Share (HK cents)** | (7.38) | (6.63) | +11% | | **Total Equity** | 322,012 | 349,370 | -8% | | **Net Asset Value Per Share (HKD)** | 0.99 | 1.07 | -7% | [Financial Summary](index=6&type=section&id=Financial%20Summary) The report presents a summary of performance, assets, and liabilities for the past five financial years, showing fluctuating revenue, increasing losses since 2018, stable total assets, and declining shareholders' equity since 2017 - The report presents a summary of performance, assets, and liabilities for the past five financial years, showing fluctuating revenue, increasing losses since 2018, stable total assets, and declining shareholders' equity since 2017[19](index=19&type=chunk)[22](index=22&type=chunk)[24](index=24&type=chunk) Five-Year Performance Summary (As of December 31) | Metric (HKD thousands) | 2016 | 2017 | 2018 | 2019 | 2020 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | 28,457 | 28,390 | 26,350 | 31,023 | 35,348 | | **(Loss)/Profit for the Year** | (19,263) | 11,024 | (12,793) | (21,780) | (25,738) | Five-Year Assets and Liabilities Summary (As of December 31) | Metric (HKD thousands) | 2016 | 2017 | 2018 | 2019 | 2020 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Assets** | 625,516 | 639,116 | 587,191 | 572,675 | 572,298 | | **Total Liabilities** | (262,218) | (260,427) | (222,049) | (223,305) | (250,286) | | **Shareholders' Funds** | 363,298 | 378,689 | 365,142 | 349,370 | 322,012 | [Management Discussion and Analysis](index=7&type=section&id=Management%20Discussion%20and%20Analysis) The management discussion and analysis provides insights into the company's operational and financial performance, strategic outlook, and corporate governance practices [Operating Review](index=7&type=section&id=OPERATION%20REVIEW) In 2020, the Group's net loss expanded by 18% to HKD 25.74 million due to COVID-19, despite a 14% revenue increase from hotel and property project management businesses, which also led to a 33% decline in gross profit [Overall Performance](index=7&type=section&id=General%20Performance) Amidst the COVID-19 pandemic, the Group's net loss increased by 18% to approximately HKD 25.74 million in 2020, primarily due to the absence of fair value gains and disposal gains on investment properties recorded in 2019 FY2020 Key Operating Data Changes | Metric | 2020 (HKD thousands) | 2019 (HKD thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | **Revenue** | 35,348 | 31,023 | +14% | | **Gross Profit** | 12,256 | 18,294 (Restated) | -33% | | **Administrative Expenses** | 28,898 | 36,287 (Restated) | -20% | | **Net Loss** | 25,738 | 21,780 (Restated) | +18% | - The increase in net loss was primarily due to the absence of HKD **10.8 million** in fair value gains and disposal gains on investment properties in 2020 compared to 2019, partially offset by a turnaround in RMB exchange from a loss of HKD **4.375 million** to a gain of HKD **5.547 million**, government COVID-19 subsidies of HKD **2.167 million**, and a HKD **2.402 million** increase in income tax expense due to deferred tax asset adjustments[27](index=27&type=chunk)[29](index=29&type=chunk) [Property Investment Business](index=9&type=section&id=Property%20Investments%20Business) This segment turned from profit to loss, recording a loss of HKD 4.16 million in 2020, mainly due to a 53% year-on-year decrease in total rental income to HKD 4.26 million, with a significant reduction in Hong Kong due to a boutique hotel conversion Property Investment Business Segment Performance | Metric | 2020 (HKD thousands) | 2019 (HKD thousands) | | :--- | :--- | :--- | | **Segment Profit/(Loss)** | (4,161) | 1,948 | | **Total Rental Income** | 4,257 | 9,097 | | Of which: Hong Kong | 1,313 | 4,700+ (Partial) | | Of which: Macau | 2,944 | Approx. 2,800 | - Hong Kong rental income significantly decreased, primarily because a boutique hotel that previously contributed HKD **4.7 million** in rent was converted to the Group's self-operated hospitality services business at the end of 2019[36](index=36&type=chunk) [Hair Styling Business](index=10&type=section&id=Hair%20Styling%20Business) Despite a 16% decline in turnover to HKD 15.24 million due to the pandemic, this segment's net loss significantly narrowed from HKD 0.96 million to HKD 0.022 million, driven by the absence of one-off relocation expenses, rent concessions, and government subsidies Hair Styling Business Segment Performance | Metric | 2020 (HKD thousands) | 2019 (HKD thousands) | | :--- | :--- | :--- | | **Turnover** | 15,236 | 18,120 | | **Segment Net Loss** | (22) | (964) | | **Retail Product Sales** | 834 | Approx. 463 | [Hospitality Services Business](index=11&type=section&id=Hospitality%20Service%20Business) Commencing operations in late December 2019, this business recorded HKD 8.98 million in turnover and a segment loss of HKD 1.87 million in 2020, adapting to the pandemic by shifting to local clientele and introducing co-living options - This segment commenced operations in late December 2019, recording turnover of HKD **8.976 million** and a segment loss of HKD **1.869 million** in 2020[49](index=49&type=chunk) - To cope with the pandemic, the Group adopted flexible pricing, focused on local communities, offered accommodation packages and limited-time promotions, and reconfigured facilities to develop co-living businesses for recurring revenue[50](index=50&type=chunk) [Securities Investments](index=13&type=section&id=Securities%20Investments) As of end-2020, the Group's financial assets at fair value through profit or loss decreased to approximately HKD 69.95 million from HKD 88.84 million, recording an unrealized loss of HKD 11.96 million and dividend income of HKD 2.97 million Securities Investment Portfolio Overview (As of December 31, 2020) | Metric | Amount (HKD thousands) | | :--- | :--- | | **Financial Assets at Fair Value Through Profit or Loss** | 69,946 | | **Unrealized Loss** | (11,958) | | **Dividend Income** | 2,969 | Significant Investment Details: Link REIT (823) | Metric | Value | | :--- | :--- | | **Number of Shares Held** | 704,583 | | **Investment Cost** | 66,549 HKD thousands | | **2020 Dividend Income** | 2,077 HKD thousands | | **2020 Fair Value Loss** | (7,996) HKD thousands | | **Fair Value as of December 31, 2020** | 49,744 HKD thousands | | **Approximate Percentage of Group's Total Assets** | 8.7% | [Property Project Management Business](index=15&type=section&id=Property%20Project%20Management%20Business) Launched in late 2019, this business completed multiple residential property projects in 2020, generating total revenue of HKD 3.91 million and a segment profit of HKD 0.084 million by leveraging the Group's property investment experience - In 2020, the property project management business generated total revenue of HKD **3.908 million** and a segment profit of HKD **0.084 million**[64](index=64&type=chunk) [Other Business Segments](index=15&type=section&id=Other%20Business%20Segments) The money lending business segment recorded a private loan during the review period, generating total revenue of HKD 2,000 and a segment loss of HKD 19,000 - The money lending business recorded total revenue of HKD **2,000** and a segment loss of HKD **19,000**[65](index=65&type=chunk) [Financial Review](index=16&type=section&id=FINANCIAL%20REVIEW) As of end-2020, the Group held HKD 119 million in cash and bank balances but had a net current liability of HKD 28.26 million, with the current ratio decreasing from 0.97 to 0.87 times, and the debt-to-equity ratio rising from 3.4% to 5.7% Key Financial Indicators (As of December 31, 2020) | Metric | 2020 | 2019 | | :--- | :--- | :--- | | **Total Cash and Bank Balances** | 118,794 HKD thousands | - | | **Net Current Liabilities** | 28,256 HKD thousands | 6,135 HKD thousands | | **Current Ratio** | 0.87 times | 0.97 times | | **Debt-to-Equity Ratio** | 5.7% | 3.4% | | **Total Equity** | 322,012 HKD thousands | 349,370 HKD thousands | - Due to the commencement of new hotel and hospitality businesses, the Group's total number of employees increased from **37** in 2019 to **47** in 2020[75](index=75&type=chunk) - The Directors do not recommend the payment of a final dividend for the year ended December 31, 2020[76](index=76&type=chunk) [Prospects](index=18&type=section&id=PROSPECTS) The Group anticipates Asia to lead global economic recovery post-pandemic, with China's stable growth and the Greater Bay Area initiative providing new impetus for regional business development, while remaining confident in Hong Kong's long-term tourism prospects - The Group believes that China's stable economic growth and the Greater Bay Area initiative will inject new impetus into its business development in the region[81](index=81&type=chunk) - The Group is confident in the recovery of the tourism industry, viewing it as "not a matter of if but rather when," and will closely monitor market developments to seize opportunities for expansion plans[82](index=82&type=chunk) - Looking ahead, the Group plans to apply digital technology to enhance operational efficiency and achieve further growth as the economy recovers from the pandemic[86](index=86&type=chunk) [Corporate Social Responsibility](index=19&type=section&id=CORPORATE%20SOCIAL%20RESPONSIBILITY) The Group is committed to being a responsible community member, earning multiple awards in 2020, including "Caring Company" for 13 consecutive years, "Good MPF Employer" for 6 consecutive years, and certifications as a "Hong Kong Green Organisation" and "Happy Company" - The Group received several social responsibility awards in 2020, including: - "Caring Company" from The Hong Kong Council of Social Service for **13** consecutive years - "Good MPF Employer" from the Mandatory Provident Fund Schemes Authority for **6** consecutive years - Certification as a "Hong Kong Green Organisation" and "Happy Company"[93](index=93&type=chunk) [Directors' Report](index=21&type=section&id=Directors%27%20Report) The Directors' Report provides an overview of the company's principal activities, financial results, share capital, share options, and information on directors and senior management [Principal Activities and Results](index=21&type=section&id=PRINCIPAL%20ACTIVITIES%20AND%20RESULTS) The company's principal business is investment holding, with subsidiaries engaged in property investment, hair styling, securities investment, hotel services, and property project management, with the latter being a new segment in FY2020, and no dividend recommended for the year - The company's principal business is investment holding, with a new property project management business segment added during the year[96](index=96&type=chunk)[101](index=101&type=chunk) - The Directors do not recommend the payment of a dividend for the financial year ended December 31, 2020[97](index=97&type=chunk)[102](index=102&type=chunk) [Share Capital and Share Options](index=23&type=section&id=SHARE%20CAPITAL%20AND%20SHARE%20OPTIONS) During the reporting period, the company's authorized share capital remained unchanged, and no new share options were granted under the 2019 scheme, with Executive Director Ms. Tsang Siu Wan holding 12,548,000 outstanding share options as of year-end - During the review year, the company's authorized share capital remained unchanged, and no new share options were granted[115](index=115&type=chunk) Outstanding Share Options Held by Director Ms. Tsang Siu Wan (As of December 31, 2020) | Grant Date | Exercise Price (HKD) | Number of Outstanding Options | | :--- | :--- | :--- | | September 14, 2016 | 0.732 | 3,096,000 | | September 19, 2017 | 0.698 | 3,096,000 | | October 3, 2018 | 0.395 | 3,096,000 | | October 16, 2019 | 0.250 | 3,260,000 | | **Total** | | **12,548,000** | [Directors and Senior Management](index=29&type=section&id=DIRECTORS%20AND%20SENIOR%20MANAGEMENT) The report provides detailed biographies of executive directors, independent non-executive directors, and senior management, noting the appointment of Ms. Ho Ting Mei as an independent non-executive director and the resignation of Mr. Au Chi Wai on January 1, 2020 - Ms. Ho Ting Mei was appointed as an Independent Non-executive Director on January 1, 2020, and Mr. Au Chi Wai resigned on the same day[151](index=151&type=chunk) - The report provides detailed personal resumes for Executive Directors Mr. Tsang Siu Mo, Ms. Tsang Siu Wan, Ms. Chu Ming Tak, Independent Non-executive Directors Mr. Hui Yan Kit, Mr. Lau Pui Wing, Ms. Ho Ting Mei, and Senior Management Mr. Kwok Tsz Kit, Ms. Sze Tak On, Ms. Wong Yim Chui[165](index=165&type=chunk)[167](index=167&type=chunk)[169](index=169&type=chunk)[172](index=172&type=chunk)[173](index=173&type=chunk)[174](index=174&type=chunk)[177](index=177&type=chunk)[179](index=179&type=chunk)[180](index=180&type=chunk) [Directors' and Chief Executives' Interests and Short Positions in Shares, Underlying Shares and Debentures](index=34&type=section&id=DIRECTORS%27%20AND%20CHIEF%20EXECUTIVES%27%20INTERESTS%20AND%20SHORT%20POSITIONS) As of end-2020, Executive Directors Mr. Tsang Siu Mo and Ms. Tsang Siu Wan jointly held 33% of the company's shares through controlled corporations, with Ms. Tsang Siu Wan also beneficially holding 0.94% of shares and 12,548,000 share options, and Ms. Chu Ming Tak beneficially holding 2.74% of shares Directors' Interests in Company Shares (As of December 31, 2020) | Director Name | Nature of Interest | Number of Shares Held | Approximate Percentage of Total Share Capital | | :--- | :--- | :--- | :--- | | **Mr. Tsang Siu Mo** | Interest in Controlled Corporation | 107,604,772 | 33.00% | | **Ms. Tsang Siu Wan** | Beneficial Interest | 3,064,000 | 0.94% | | | Interest in Controlled Corporation | 107,604,772 | 33.00% | | **Ms. Chu Ming Tak** | Beneficial Interest | 8,930,087 | 2.74% | [Substantial Shareholders' Interests](index=38&type=section&id=SUBSTANTIAL%20SHAREHOLDERS%27%20INTERESTS) Excluding directors, the company's substantial shareholders include ST Investments Holding Limited, which holds 33% of shares through its wholly-owned subsidiaries, and Ms. Szeto Yuk Lin, who holds 15.64% of shares through her controlled corporations Substantial Shareholders' Shareholdings (As of December 31, 2020) | Shareholder Name | Nature of Interest | Number of Shares Held | Approximate Percentage of Total Share Capital | | :--- | :--- | :--- | :--- | | **ST Investments Holding Limited** | Interest in Controlled Corporation | 107,604,772 | 33% | | **Ms. Szeto Yuk Lin** | Interest in Controlled Corporation | 50,996,250 | 15.64% | [Corporate Governance Report](index=42&type=section&id=Corporate%20Governance%20Report) The Corporate Governance Report details the company's adherence to corporate governance principles, including board composition, committee structures, internal controls, and shareholder communication [The Board and Management](index=42&type=section&id=THE%20BOARD%20AND%20THE%20MANAGEMENT) The Board comprises six directors, including three executive and three independent non-executive directors, meeting listing rule requirements and adopting a board diversity policy, though the roles of Chairman and CEO are combined in Mr. Tsang Siu Mo - The Board comprises **six** directors, with **three** executive directors and **three** independent non-executive directors, meeting the Listing Rules' requirements for the number and professional qualifications of independent non-executive directors[228](index=228&type=chunk)[232](index=232&type=chunk) - The company deviates from the Corporate Governance Code's provision for the separation of Chairman and Chief Executive roles, as Executive Chairman Mr. Tsang Siu Mo concurrently performs the duties of Chief Executive, which the Board believes is in the best interests of the company and its shareholders[260](index=260&type=chunk) [Committees of the Board](index=49&type=section&id=COMMITTEES%20OF%20THE%20BOARD) The company has established Nomination, Remuneration, Executive, and Audit Committees, with the Nomination and Remuneration Committees chaired by independent non-executive directors, and the Audit Committee responsible for reviewing financial reports, internal controls, and risk management systems - The Nomination Committee is chaired by Ms. Ho Ting Mei, with members including two independent non-executive directors and one executive director[265](index=265&type=chunk) - The Remuneration Committee is chaired by Mr. Hui Yan Kit, with members including two independent non-executive directors and one executive director[272](index=272&type=chunk) - The Audit Committee comprises three independent non-executive directors, chaired by Mr. Lau Pui Wing, and is responsible for reviewing financial reports and internal control systems[289](index=289&type=chunk)[290](index=290&type=chunk) [Internal Control and Risk Management](index=56&type=section&id=INTERNAL%20CONTROL%20AND%20RISK%20MANAGEMENT) The Board is responsible for the effectiveness of the Group's internal control system and, having engaged a consultant for internal audit, deemed the risk management and internal control systems satisfactory and effective in safeguarding Group assets as of end-2020 - The Board engaged a consultant to conduct an internal audit and assessed the risk management and internal control systems for 2020 as satisfactory and operating effectively[308](index=308&type=chunk)[310](index=310&type=chunk) [Shareholders' Rights and Investor Relations](index=57&type=section&id=SHAREHOLDERS%20%27%20RIGHTS%20AND%20INVESTOR%20RELATIONS) The company communicates with shareholders through financial reports, announcements, and its website, with annual general meetings providing a forum for interaction, and shareholders holding at least 10% of paid-up capital having the right to requisition an extraordinary general meeting - Shareholders holding not less than one-tenth of the paid-up share capital have the right to requisition an extraordinary general meeting in writing to the Board[314](index=314&type=chunk) [Independent Auditor's Report](index=58&type=section&id=Independent%20Auditor%27s%20Report) The Independent Auditor's Report provides the auditor's opinion on the consolidated financial statements and highlights key audit matters [Auditor's Opinion and Key Audit Matters](index=58&type=section&id=Auditor%27s%20Opinion%20and%20Key%20Audit%20Matters) The auditor, BDO Limited, issued an unmodified opinion on the company's 2020 consolidated financial statements, affirming their true and fair presentation of the Group's financial position and performance, with the sole key audit matter being the valuation of investment properties - The auditor issued an unmodified opinion, stating that the consolidated financial statements present a true and fair view of the Group's financial position and performance[318](index=318&type=chunk) - The sole key audit matter is the valuation of investment properties, which management estimated at HKD **130.1 million**, and the auditor performed procedures including evaluating the external valuer's competence, assessing valuation methodologies, and sampling input data[323](index=323&type=chunk)[324](index=324&type=chunk)[327](index=327&type=chunk) [Consolidated Financial Statements](index=64&type=section&id=Consolidated%20Financial%20Statements) The Consolidated Financial Statements provide a comprehensive overview of the Group's financial performance, position, equity changes, and cash flows for the reporting period [Consolidated Statement of Comprehensive Income](index=64&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) In FY2020, the Group's revenue increased by 14% to HKD 35.35 million, but gross profit declined from HKD 18.29 million to HKD 12.26 million due to a significant increase in cost of revenue, resulting in an expanded loss for the year of HKD 25.74 million Consolidated Statement of Comprehensive Income Summary | Metric (HKD thousands) | 2020 | 2019 (Restated) | | :--- | :--- | :--- | | **Revenue** | 35,348 | 31,023 | | **Gross Profit** | 12,256 | 18,294 | | **Loss Before Income Tax** | (23,347) | (20,873) | | **Loss for the Year** | (25,738) | (21,780) | | **Total Comprehensive Income for the Year** | (27,358) | (21,319) | [Consolidated Statement of Financial Position](index=66&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of end-2020, the Group's total assets remained stable at HKD 572 million, but total liabilities increased from HKD 223 million to HKD 250 million, leading to a decrease in net assets from HKD 349 million to HKD 322 million, and net current liabilities expanded to HKD 28.26 million Consolidated Statement of Financial Position Summary | Metric (HKD thousands) | December 31, 2020 | December 31, 2019 | | :--- | :--- | :--- | | **Non-current Assets** | 375,288 | 371,697 | | **Current Assets** | 197,010 | 200,978 | | **Total Assets** | 572,298 | 572,675 | | **Current Liabilities** | 225,266 | 207,113 | | **Non-current Liabilities** | 25,020 | 16,192 | | **Total Liabilities** | 250,286 | 223,305 | | **Net Assets** | 322,012 | 349,370 | | **Total Equity** | 322,012 | 349,370 | [Consolidated Statement of Changes in Equity](index=68&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) The Group's total equity decreased by HKD 27.36 million from HKD 349 million at the beginning of the year to HKD 322 million at year-end, primarily due to a total comprehensive loss for the year of HKD 27.36 million - Equity attributable to owners of the Company decreased from HKD **345.5 million** at the beginning of the year to HKD **319.8 million** at year-end, primarily due to a total comprehensive loss for the year of HKD **25.68 million**[356](index=356&type=chunk) [Consolidated Statement of Cash Flows](index=69&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) In 2020, the Group generated a net cash inflow of HKD 1.49 million from operating activities, a significant improvement from the previous year's net outflow of HKD 115 million, with net cash inflows from investing and financing activities contributing to a HKD 4.46 million net increase in cash and cash equivalents Consolidated Statement of Cash Flows Summary | Metric (HKD thousands) | 2020 | 2019 | | :--- | :--- | :--- | | **Net Cash From/(Used In) Operating Activities** | 1,489 | (114,948) | | **Net Cash From Investing Activities** | 636 | 71,565 | | **Net Cash From/(Used In) Financing Activities** | 2,334 | (6,798) | | **Net Increase/(Decrease) in Cash and Cash Equivalents** | 4,459 | (50,181) | | **Cash and Cash Equivalents at End of Period** | 26,325 | 21,866 | [Notes to the Consolidated Financial Statements](index=72&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) The notes provide detailed accounting policies and specific item breakdowns for the financial statements, including segment revenue and performance, bank borrowings, related party transactions, and the impact of COVID-19 Segment Performance (2020) | Segment | Revenue (HKD thousands) | Performance (HKD thousands) | | :--- | :--- | :--- | | **Hair Styling** | 15,236 | (22) | | **Money Lending** | 2 | (19) | | **Property Investment** | 4,257 | (4,161) | | **Securities Investment** | 2,969 | (9,845) | | **Hospitality Services** | 8,976 | (1,869) | | **Property Project Management** | 3,908 | 84 | - As of end-2020, the Group's total bank borrowings amounted to HKD **204 million**, all of which were secured and bore floating interest rates, with HKD **196 million** classified as current liabilities[695](index=695&type=chunk)[699](index=699&type=chunk) - The Group engaged in related party transactions with companies controlled by or having significant influence over Directors Mr. Tsang Siu Mo and Ms. Tsang Siu Wan, primarily involving office property leases, car leases, and company secretarial services[761](index=761&type=chunk)[764](index=764&type=chunk)[765](index=765&type=chunk) [Particulars of Investment Properties](index=184&type=section&id=Particulars%20of%20Investment%20Properties) This section details the Group's investment property portfolio, including commercial and residential properties in Macau, and commercial and residential properties in Sheung Wan and Taikoo Shing, Hong Kong, all held with 100% interest - This section details the Group's investment property portfolio, including commercial and residential properties in Macau, and commercial and residential properties in Sheung Wan and Taikoo Shing, Hong Kong, all held with **100%** interest[840](index=840&type=chunk)[841](index=841&type=chunk)

| CONTENTS | | Pages | | --- | --- | --- | | 目錄 | | 頁次 | | Corporate Information | 公司資料 | 2 | | Interim Results | 中期業績 | 4 | | Condensed Consolidated: | 簡明綜合： | | | Statement of Comprehensive Income | 全面收入報表 | 4 | | Statement of Financial Position | 財務狀況表 | 6 | | Statement of Changes in Equity | 權益變動表 | 8 | | Statement of Cash Flows | 現金流量表 | 10 | | Notes to the Interim | | | | Financial Report | 中期財務報告附註 | 11 | | Business Review | 業務回顧 | 27 | | Financial Review | 財務回顧 | 32 | | Prospects | 前景 | 35 | | Corpo ...

世紀建業( 集團 )有限公司 • 二零一九年年報 1 Pages 頁次 CONTENTS 目錄 | Corporate Information | 公司資料 | 2 | | --- | --- | --- | | Financial Highlights | 財務概要 | 4 | | Financial Summary | 財務摘要 | 5 | | Management Discussion and Analysis | 管理層討論及分析 | 6 | | Directors' Report | 董事會報告 | 15 | | Corporate Governance Report | 企業管治報告 | 35 | | Independent Auditor's Report | 獨立核數師報告 | 51 | | Consolidated Statement of | | | | Comprehensive Income | 綜合全面收入報表 | 57 | | Consolidated Statement of | | | | Financial Position | 綜合財務狀況表 | 59 | | Consol ...

| CONTENTS | | Pages 頁次 | | --- | --- | --- | | 目錄 | | | | Corporate Information | 公司資料 | 2 | | Interim Results | 中期業績 | 4 | | Condensed Consolidated: | 簡明綜合： | | | Statement of Comprehensive Income | 全面收入報表 | 4 | | Statement of Financial Position | 財務狀況表 | 6 | | Statement of Changes in Equity | 權益變動表 | 8 | | Statement of Cash Flows | 現金流量表 | 10 | | Notes to the Interim | | | | Financial Report | 中期財務報告附註 | 11 | | Business Review and Prospects | 業務回顧及前景 | 34 | | Financial Review | 財務回顧 | 39 | | Employee and ...

世紀建業( 集團 )有限公司 • 二零一八年年報 1 Pages 頁次 CONTENTS 目錄 | Corporate Information | 公司資料 | 2 | | --- | --- | --- | | Financial Highlights | 財務摘要 | 4 | | Directors' Report | 董事會報告 | 5 | | Management Discussion and Analysis | 管理層討論及分析 | 24 | | Corporate Governance Report | 企業管治報告 | 31 | | Independent Auditor's Report | 獨立核數師報告 | 45 | | Consolidated Statement of | | | | Comprehensive Income | 綜合全面收入報表 | 51 | | Consolidated Statement of | | | | Financial Position | 綜合財務狀況表 | 53 | | Consolidated Statement of | | | | Chang ...