Revenue Performance - Revenue increased by 4.5% to HKD 240.6 million for the six months ended June 30, 2024, compared to HKD 230.3 million for the same period in 2023[1] - The group's revenue for the six months ended June 30, 2024, was HKD 240,589,000, an increase of 4.8% compared to HKD 230,280,000 for the same period in 2023[9] - Revenue from property leasing was HKD 164,119,000, up from HKD 157,575,000, representing a growth of 4.9%[9] - Total revenue for the six months ended June 30, 2023, was HKD 230,280,000, with a breakdown of HKD 199,325,000 from property leasing and related services, and HKD 30,955,000 from hotel operations[12] - Total revenue increased by HKD 10.3 million or 4.5% to HKD 240.6 million for the six months ended June 30, 2024, compared to HKD 230.3 million in the same period last year[21] Financial Losses - The basic loss for the period was HKD 162.6 million, compared to a profit of HKD 146.5 million for the same period in 2023[2] - The company reported a net loss attributable to shareholders of HKD 158.2 million for the period, compared to a profit of HKD 123.6 million in the previous year[3] - The group recorded a consolidated loss of HKD 162.6 million for the six months ended June 30, 2024, compared to a profit of HKD 146.5 million in the same period last year[21] - Basic loss per share was HKD 0.55, compared to earnings of HKD 0.43 per share in the previous year[21] Dividends - The company declared an interim dividend of HKD 0.04 per share, down from HKD 0.06 per share in 2023[1] - The interim dividend declared is HKD 0.04 per ordinary share, down from HKD 0.06 per share in 2023[37] Asset and Liability Changes - Total assets decreased to HKD 11.73 billion as of June 30, 2024, from HKD 11.89 billion as of December 31, 2023[4] - Non-current liabilities increased significantly to HKD 2.15 billion, up from HKD 1.32 billion at the end of 2023[5] - Cash and cash equivalents decreased to HKD 96.0 million from HKD 108.4 million at the end of 2023[4] - The company’s total equity decreased to HKD 8.73 billion from HKD 8.91 billion at the end of 2023[5] - The net current liabilities as of June 30, 2024, were HKD 604,241,000, a significant decrease from HKD 1,396,655,000 as of December 31, 2023[9] - The total liabilities due within one year are HKD 323,133 thousand, while liabilities due in the second year are HKD 55,338 thousand[33] Investment Properties - The fair value loss on investment properties was HKD 129.8 million, compared to a gain of HKD 130.6 million in the previous year[2] - The group reported a total loss of HKD 162,567,000 for the period, with a significant loss attributed to investment property fair value changes amounting to HKD 129,824,000[11] - As of June 30, 2024, the valuation of investment properties was HKD 9,492.8 million, a decrease of HKD 128.7 million or 1.3% from HKD 9,621.5 million as of December 31, 2023[21] - The total carrying amount of investment properties and land and buildings was HKD 8,037.6 million as of June 30, 2024, down from HKD 8,102.4 million as of December 31, 2023[31] Capital Expenditures - Capital expenditures for the period totaled HKD 10,572,000, with HKD 8,223,000 spent in Hong Kong and HKD 2,349,000 in North America[11] - Capital expenditures for the six months ended June 30, 2024, amounted to HKD 18,287,000, with HKD 8,962,000 in Hong Kong and HKD 9,325,000 in North America[12] - Capital expenditure for the first half of 2024 was HKD 10.6 million, down from HKD 18.3 million in the same period last year[27] Financial Costs - The group’s financial costs for the period were HKD 77,114,000, reflecting the impact of financing activities on overall performance[11] - Total interest expenses for the period were HKD 77.1 million, an increase of HKD 14.3 million or 22.7% compared to HKD 62.8 million in the previous year[21] - The net financial cost for the six months ended June 30, 2024, was HKD (75,719,000), an increase from HKD (62,284,000) in the same period of 2023[16] Employment and Operations - The group employed a total of 257 full-time employees as of June 30, 2024, with competitive compensation levels and performance-based rewards[34] - The average occupancy rates for the hotels were 75.5% and 91.0%, down from 81.4% and 96.3% respectively in the previous year[25] - The group expects a moderate recovery in the residential leasing market in 2024[25] Financial Review and Compliance - The interim financial data for the six months ending June 30, 2024, has been reviewed by the external auditor without any differing opinions[41] - The group’s management has confirmed that the accounting policies used in preparing the interim financial data are consistent with those applied in the annual report for the year ended December 31, 2023[9] Strategic Plans - The group plans to secure new loan financing to replace loans maturing within one year, indicating a proactive approach to managing financial resources[9] - The group continues to modernize its real estate portfolio and will closely monitor economic developments for future investment plans[36] - There were no significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during the six months ending June 30, 2024[35] - The group has no significant contingent liabilities or guarantees as of June 30, 2024[31] Segment Revenue - The total segment revenue from Hong Kong was HKD 209,746,000, while North America contributed HKD 30,843,000, leading to a total segment revenue of HKD 240,589,000[11]

Financial Performance - The company reported a significant increase in revenue, achieving a total of HKD 1.2 billion for the fiscal year, representing a 15% year-over-year growth[2]. - The company reported a significant increase in revenue, achieving a total of $X million for the fiscal year, representing a Y% growth compared to the previous year[42]. - The company's total revenue for the year increased by HKD 47.2 million or 10.7% to HKD 487.1 million, compared to HKD 439.9 million in 2022[84]. - The hotel and restaurant business revenue rose by HKD 35.4 million or 49.3%, contributing to the overall revenue growth[84]. - The company recorded a consolidated loss of HKD 164.4 million for the year ended December 31, 2023, compared to a consolidated profit of HKD 385.5 million in 2022, resulting in a loss per share of HKD 0.65[63]. - The basic loss for 2023 was HKD 28.3 million, a decline from a profit of HKD 36.5 million in 2022, primarily due to a significant increase in interest expenses[85]. - Total interest expenses for the year were HKD 145.7 million, up HKD 74.5 million or 104.6% from HKD 71.2 million in 2022[85]. Market Expansion and Strategy - The total number of residential units sold increased by 20%, with 150 units sold in the past year, compared to 125 units in the previous year[2]. - The company plans to expand its market presence by launching two new residential projects in the next fiscal year, expected to generate an additional HKD 500 million in revenue[2]. - The company has set a performance guidance of 10% revenue growth for the upcoming fiscal year, driven by new project launches and market expansion[2]. - The company is exploring potential acquisition opportunities to further diversify its portfolio and enhance market competitiveness[2]. - The company is expanding its market presence in D regions, aiming to capture a larger share of the market[42]. - Recent acquisitions are expected to enhance the company's capabilities and drive future growth, with an estimated contribution of $E million to revenue[42]. Operational Efficiency and Investments - The company has invested HKD 100 million in new technology for property management, aiming to enhance operational efficiency and customer satisfaction[2]. - The company is investing in R&D, allocating $F million towards the development of new technologies and products[42]. - The company has implemented cost-saving measures, projected to reduce operational expenses by H% over the next year[42]. Corporate Governance and Compliance - The board is responsible for preparing consolidated financial statements based on the going concern principle, ensuring they reflect the true and fair financial position of the company and group[25]. - The company has maintained a shareholder communication policy to ensure timely access to comprehensive and understandable information for shareholders and investors[37]. - The audit committee confirmed that the risk management and internal control systems are adequate and effective[138]. - The company has implemented measures to enhance the confidentiality of insider information and comply with relevant regulations[139]. - The company is actively monitoring regulatory compliance risks related to mandatory building inspections and safety improvements[138]. Sustainability and ESG Initiatives - The company has implemented new sustainability initiatives, aiming to reduce carbon emissions by 20% over the next five years[2]. - The company has established an ESG team to develop actions in line with new regulatory requirements and to implement sustainability strategies across its properties[128]. - The company is implementing energy-saving, water-saving, recycling, and waste reduction measures to minimize environmental impact[128]. - The board evaluates and manages risks related to environmental, social, and governance (ESG) factors annually, ensuring continuous implementation of policies[185]. - The company identified 23 key sustainability topics impacting its operations, including air emissions, water consumption, and employee development[190]. Stakeholder Engagement - The company engages with a wide range of stakeholders, including employees, tenants, suppliers, investors, and regulatory bodies, to strengthen communication and trust[199]. - Various channels have been established for stakeholders to express their opinions on business operations and sustainability management[200]. - Stakeholder feedback was collected through an online survey to assess the importance of various ESG topics, leading to a prioritization matrix[192]. Financial Position and Equity - Total equity as of December 31, 2023, was HKD 8,912.7 million, down from HKD 9,115.1 million in 2022[64]. - The total equity decreased by HKD 202.4 million to HKD 8,912.7 million, down from HKD 9,115.1 million in 2022[94]. - The debt-to-equity ratio as of December 31, 2023, was 28.9%, compared to 28.2% in 2022[94]. Board and Management - The attendance record for board meetings shows that all executive directors attended 100% of the meetings held during the year[23]. - The board has reviewed the implementation and effectiveness of the diversity policy for board members during the year, concluding it has been properly implemented and is effective[20]. - The board has established an ESG working group to assist in developing and implementing the company's ESG strategies and policies[184].

Financial Performance - Total revenue increased by 10.7% to HKD 487.1 million for the year ended December 31, 2023, compared to HKD 439.9 million in 2022[25]. - The group reported a loss of HKD 164.4 million for the year, including a fair value loss on investment properties of HKD 136.0 million, compared to a profit of HKD 385.5 million in 2022[25]. - Basic loss after excluding property revaluation impacts was HKD 28.3 million, compared to a basic profit of HKD 36.5 million in 2022[25]. - The company reported a loss attributable to shareholders of HKD 185,656,000 for 2023, compared to a profit of HKD 360,115,000 in 2022, indicating a significant decline in profitability[26]. - The company reported a total comprehensive loss of HKD 165,046,000 for the year, compared to a comprehensive income of HKD 383,552,000 in 2022, indicating a substantial downturn[40]. - The company recorded a consolidated loss of HKD 164.4 million in 2023, compared to a profit of HKD 385.5 million in 2022, marking a significant decline[65]. - The basic and diluted loss per share for the year was HKD 0.65, compared to earnings per share of HKD 1.25 in the previous year[26]. Revenue Sources - Core property leasing business saw a slight increase in gross rental income by 2.9% year-on-year[3]. - Revenue from hotel and catering business increased by HKD 35.4 million or 49.3%[3]. - Hotel operations revenue increased to HKD 86.6 million in 2023 from HKD 57.8 million in 2022, representing a growth of 49.8%[50]. - The hotel room revenue and food and beverage revenue for 2023 amounted to HKD 107.1 million, an increase of HKD 35.4 million or 49.3% compared to HKD 71.7 million in 2022[116]. - The office rental income for Montgomery Plaza in 2023 was HKD 70.1 million, a decrease of HKD 3.4 million or 4.6% from 2022[96]. Assets and Liabilities - The total assets as of December 31, 2023, were HKD 11,890,984,000, down from HKD 12,133,849,000 in 2022, showing a decrease of approximately 2%[29]. - The company's non-current assets, including investment properties, decreased to HKD 9,621,524,000 from HKD 9,857,923,000, a decline of about 2.4%[29]. - The net current liabilities increased to HKD 1,396,655,000 in 2023 from HKD 820,403,000 in 2022, indicating a significant rise in short-term financial obligations[31]. - The total liabilities decreased to HKD 2,978.3 million in 2023 from HKD 3,018.7 million in 2022[71]. - The company’s non-current liabilities, including long-term bank loans, decreased to HKD 1,318.0 million in 2023 from HKD 1,904.2 million in 2022[71]. - The total equity attributable to shareholders decreased to HKD 8,912,700,000 from HKD 9,115,120,000, reflecting a decline of approximately 2.2%[29]. - Total equity decreased by HKD 202.4 million to HKD 8,912.7 million, down from HKD 9,115.1 million in 2022[117]. Financial Management - The group aims to maintain sufficient cash and cash equivalents to meet short-term funding needs[10]. - The group will continue to review its property portfolio and manage resources to ensure sufficient internal funding for financial obligations[10]. - The company has refinanced long-term bank loans amounting to HKD 1,018,391,000, extending the maturity to December 2026, which enhances liquidity[31]. - The total interest expense for the year was HKD 145.7 million, an increase of HKD 74.5 million or 104.6% compared to HKD 71.2 million in 2022[112]. - Financial costs increased significantly to HKD 145,743,000 from HKD 71,225,000 in the previous year, representing an increase of approximately 104%[86]. Future Outlook - The economic outlook for Hong Kong is expected to improve with government initiatives to attract international capital and talent[5]. - The company expects a moderate recovery in the leasing market for retail and residential units in 2024, driven by new leases and renewals[69]. - The company anticipates that Hong Kong interest rates may start to decline in the second half of 2024, potentially boosting economic growth[67]. Dividends and Capital Expenditures - Proposed final dividend of HKD 0.06 per share, consistent with the previous year[25]. - Capital expenditures for the year were HKD 36,470,000, up from HKD 46,935,000 in the previous year, reflecting a decrease of approximately 22%[79][81]. - The capital expenditure for the year ended December 31, 2023, was HKD 36.5 million, down from HKD 46.9 million in 2022[98]. Miscellaneous - There were no significant investments or acquisitions of subsidiaries, associates, or joint ventures during the year ended December 31, 2023[123]. - The auditors confirmed that the preliminary performance announcement figures were consistent with the group's consolidated financial statements for the year ended December 31, 2023[129].

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佈之內容概不負責，對其準確性或 完整性亦不發表任何聲明，並明確表示，概不就因本公佈全部或任何部份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。 (於香港註冊成立之有限公司) (股份代號：89) 二零二三年度中期業績公佈 財務摘要 截至二零二三年六月三十日止六個月  收入增加 7.9至港幣 230.3 百萬元（二零二二年：港幣 213.4 百萬元）。  本期溢利港幣 146.5 百萬元（二零二二年：港幣 261.4 百萬元），包括投資物業公允值盈 利（扣除美國遞延稅項後）港幣 152.0 百萬元（二零二二年：港幣 220.0 百萬元）。  撇除物業重估盈利及所有相關影響後，本集團錄得基本虧損港幣 5.5 百萬元，比對去年同期基 本溢利港幣41.4 百萬元。  宣派中期股息每股普通股港幣 6仙。 ...

Risk Management and Internal Control - The audit committee confirmed that the risk management and internal control systems are sufficient and effective as of March 2023[1]. - The group has established a risk management and internal control system aimed at identifying and managing risks associated with achieving business objectives[93]. - The board is responsible for overseeing the risk management and internal control systems to ensure effective communication of core values and operational guidelines throughout the group[95]. - The internal audit function reviewed the adequacy and effectiveness of the group's risk management and internal control systems, focusing on financial, compliance, and operational functions[98]. - The board conducts annual reviews of the effectiveness of the risk management and internal control systems, covering all significant monitoring aspects[113]. - The audit committee assists the board in reviewing the risk management and internal control systems to ensure effective monitoring is in place[114]. - The internal control function evaluates the effectiveness of the risk management and internal control systems annually and provides recommendations based on identified risks[114]. - The group has a structured risk management framework involving the board, audit committee, management, and internal control functions[114]. Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) report covers the fiscal year 2022, with comparative figures from fiscal year 2021[5]. - The board of directors is responsible for overseeing the implementation of the ESG strategy and ensuring compliance with relevant laws and regulations[15]. - The group has established an ESG working group to assist in formulating and implementing ESG strategies and policies[15]. - The report emphasizes the importance of integrating ESG principles into the risk management system for sustainable business practices[14]. - The group has engaged an external consultant for limited assurance on the ESG report[12]. - The board will review the progress of ESG-related goals and indicators at least once a year[16]. - The report adheres to the guidelines set forth by the Hong Kong Stock Exchange for ESG reporting[6]. - The company identified 23 key sustainability topics impacting its operations, focusing on environmental, social, and governance (ESG) issues[20]. - Stakeholder feedback was collected through an online survey to prioritize the importance of selected ESG topics, resulting in a matrix that highlights high-importance themes[22]. - The board has reviewed and validated the importance assessment process, ensuring transparency in the company's ESG performance reporting[24]. - The company emphasizes the significance of stakeholder engagement for long-term development and success, maintaining communication channels with various stakeholders[29]. - The company aims to reduce its emissions by 10% by the fiscal year 2032, using the fiscal year 2022 as a baseline[130]. - The company has recognized the importance of environmental, social, and governance (ESG) trends for long-term sustainability and has established an ESG team to develop compliance strategies[121]. Board Composition and Governance - The board consists of at least three independent non-executive directors, ensuring compliance with independence standards[33]. - Independent non-executive directors must confirm their independence annually and notify the company of any changes affecting their independence[35]. - The board meets at least four times a year, with most directors attending in person or via electronic communication[37]. - The company has established mechanisms to ensure the board receives independent viewpoints and opinions on governance matters[36]. - The board has established multiple committees, including the audit committee, remuneration committee, and nomination committee, to oversee various governance aspects[47]. - The board consists of one female director and eight male directors, with a commitment to gender diversity as a key factor in selecting suitable candidates[58]. - The nomination committee reviewed the board's structure and composition, suggesting re-election of retiring directors and assessing the independence of all independent non-executive directors[52]. - The company’s governance practices include regular communication with stakeholders and adherence to legal and regulatory compliance[47]. - The company’s board diversity policy aims to ensure a balanced representation of skills, knowledge, and experience among its members[53]. - The company has implemented a diversity policy for board members, considering various factors such as gender, age, and professional experience[81]. Financial Performance and Risk - The group generated approximately 83% of its revenue from operations in Hong Kong during the reporting period[10]. - The group faces medium-level financial risks, including interest rate risk and liquidity risk, with measures in place to monitor financial market conditions and maintain sufficient cash and available funds[100]. - The group has implemented prudent liquidity risk management and maintains good relationships with banks to ensure adequate financing[100]. - The audit committee is responsible for reviewing the financial statements and assessing the effectiveness of the company's internal control systems[49]. - The board is committed to preparing financial statements that accurately reflect the company's financial position, adhering to applicable accounting standards and regulations[83]. Sustainability and Environmental Impact - The company aims to continuously improve its environmental performance by adhering to strict environmental regulations and enhancing operational sustainability[41]. - The company is committed to providing quality services in a clean and sustainable manner, focusing on reducing emissions and waste while conserving energy and water resources[41]. - The total greenhouse gas emissions for the fiscal year 2022 amounted to 5,298.1 tons of CO2 equivalent, an increase from 4,248.7 tons in 2021, representing a growth of approximately 24.7%[132]. - The company has emitted 36.9 kg of nitrogen oxides, 0.6 kg of sulfur oxides, and 2.1 kg of particulate matter during the reporting year[130]. - The company has implemented measures to mitigate risks associated with regulatory requirements, including mandatory inspections and safety improvements[122]. - The group has implemented measures to reduce energy consumption, including the installation of energy-efficient lighting and regular monitoring of electricity usage[157]. - The group has set a target to reduce total waste by 10% by the fiscal year 2032, using the fiscal year 2022 as a baseline[150]. - The group has begun to incorporate climate change risks and opportunities into its business strategy, conducting annual corporate risk assessments[181]. Employee Engagement and Workplace Culture - The group has a total of 244 employees, with 102 females and 142 males, and 238 full-time employees compared to 6 part-time employees[190]. - The employee turnover rate for the group is 43%, with male turnover at 39% and female turnover at 47%[196]. - The company adheres to a strict non-discrimination policy, ensuring equal opportunities regardless of age, gender, marital status, and other factors[194]. - The company provides competitive compensation and benefits, including medical coverage and various paid leave options[193]. - The group has implemented safety policies and procedures to ensure a safe working environment, including emergency fire equipment and safety guidelines[200]. - The employee handbook is regularly reviewed and updated to comply with labor laws and regulations, ensuring transparency in employee rights and responsibilities[192]. - The company emphasizes a fair and open recruitment and promotion process, recognizing employee contributions and performance[193].

[Financial Highlights](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) [Financial Highlights](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) For the year ended December 31, 2022, the Group reported an 8.1% revenue increase, but annual profit significantly declined, with underlying profit (excluding property revaluation) down 31.1% due to higher interest expenses Financial Performance Summary | Metric | 2022 | 2021 | Change | | :--- | :--- | :--- | :--- | | Revenue | HKD 439.9 Million | HKD 407.0 Million | +8.1% | | Annual Profit | HKD 385.5 Million | HKD 654.4 Million | -41.1% | | Underlying Profit (Excluding Property Revaluation) | HKD 36.5 Million | HKD 53.0 Million | -31.1% | | Proposed Final Dividend | HKD 6 Cents per Share | HKD 12 Cents per Share | -50.0% | - Annual profit includes fair value gains on investment properties (net of deferred tax) of **HKD 349 Million**, a significant decrease from **HKD 601.4 Million** in 2021[2](index=2&type=chunk)[47](index=47&type=chunk)[49](index=49&type=chunk) [Consolidated Financial Statements](index=2&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Consolidated Statement of Profit or Loss](index=2&type=section&id=%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) In 2022, Group revenue grew to HKD 440 Million, but profit for the year decreased 41.1% to HKD 386 Million due to reduced fair value gains on investment properties and significantly increased finance costs, with basic earnings per share at HKD 1.25 Consolidated Statement of Profit or Loss Summary | Item | 2022 (HKD Thousand) | 2021 (HKD Thousand) | | :--- | :--- | :--- | | Revenue | 439,858 | 407,024 | | Gross Profit | 291,704 | 270,586 | | Fair Value Gains on Investment Properties | 286,179 | 617,126 | | Operating Profit | 402,439 | 719,645 | | Net Finance Costs | (70,187) | (36,204) | | Profit Before Income Tax | 332,252 | 683,441 | | **Profit for the Year** | **385,510** | **654,426** | | Profit Attributable to Equity Holders of the Company | 360,115 | 633,618 | | Earnings Per Share (Basic and Diluted) | HKD 1.25 | HKD 2.20 | [Consolidated Statement of Comprehensive Income](index=3&type=section&id=%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) Total comprehensive income for 2022 significantly decreased to HKD 384 Million from HKD 741 Million in 2021, primarily due to lower annual profit and a shift from positive to negative other comprehensive income, including fair value losses on financial assets Consolidated Statement of Comprehensive Income Summary | Item | 2022 (HKD Thousand) | 2021 (HKD Thousand) | | :--- | :--- | :--- | | Profit for the Year | 385,510 | 654,426 | | Other Comprehensive Income for the Year | (1,958) | 86,963 | | **Total Comprehensive Income for the Year** | **383,552** | **741,389** | [Consolidated Statement of Financial Position](index=4&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of year-end 2022, total assets increased to HKD 12.134 Billion and total equity to HKD 9.115 Billion, though the Group reported net current liabilities of HKD 820.403 Million mainly from short-term bank loans and current portions of long-term loans, yet management believes sufficient financial resources are available for ongoing operations Consolidated Statement of Financial Position - Assets | Asset | Dec 31, 2022 (HKD Thousand) | Dec 31, 2021 (HKD Thousand) | | :--- | :--- | :--- | | Non-current Assets | 11,839,719 | 11,572,995 | | Current Assets | 294,130 | 259,929 | | **Total Assets** | **12,133,849** | **11,832,924** | Consolidated Statement of Financial Position - Equity and Liabilities | Equity and Liabilities | Dec 31, 2022 (HKD Thousand) | Dec 31, 2021 (HKD Thousand) | | :--- | :--- | :--- | | Total Equity | 9,115,120 | 8,809,572 | | Non-current Liabilities | 1,904,196 | 2,305,337 | | Current Liabilities | 1,114,533 | 718,015 | | **Total Equity and Liabilities** | **12,133,849** | **11,832,924** | - The Group's net current liabilities as of December 31, 2022, amounted to **HKD 820,403 Thousand**, primarily comprising short-term bank loans and current portions of long-term bank loans, though directors believe the Group has sufficient financial resources for its operations[7](index=7&type=chunk) [Notes to the Consolidated Financial Statements](index=6&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) [Basis of Preparation and Accounting Policies](index=6&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) These consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and the Hong Kong Companies Ordinance, with the adoption of annual improvements and revised standards effective January 1, 2022, having no significant impact on the Group's results or financial position - Financial statements are prepared on a historical cost basis, except for investment properties and financial assets measured at fair value through other comprehensive income[14](index=14&type=chunk) - The Group adopted annual improvements and revised standards mandatory for fiscal years beginning on or after January 1, 2022, with no significant impact on the Group's results or financial position[15](index=15&type=chunk)[117](index=117&type=chunk) [Revenue and Segment Information](index=7&type=section&id=%E6%94%B6%E5%85%A5%E5%8F%8A%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) Group total revenue increased by 8.1% to HKD 440 Million, primarily driven by significant growth in hotel operations, with the Hong Kong segment contributing the majority of revenue and profit, while the North America segment recorded a loss mainly due to fair value losses on investment properties Revenue by Source | Revenue Source | 2022 (HKD Thousand) | 2021 (HKD Thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Property Leasing | 340,537 | 342,549 | -0.6% | | Property Related Services | 27,588 | 27,918 | -1.2% | | Hotel Operations | 57,819 | 29,783 | +94.1% | | Food and Beverage Operations | 13,914 | 6,774 | +105.4% | | **Total** | **439,858** | **407,024** | **+8.1%** | 2022 Segment Results | Item | Hong Kong (HKD Thousand) | North America (HKD Thousand) | Total (HKD Thousand) | | :--- | :--- | :--- | :--- | | Segment Revenue | 366,394 | 73,464 | 439,858 | | Profit/(Loss) for the Year | 546,708 | (161,198) | 385,510 | - The Group's operating segments are geographically divided into Hong Kong and North America, with the chief operating decision maker (Executive Directors) assessing performance based on segment underlying profit (excluding fair value changes of investment properties)[19](index=19&type=chunk)[32](index=32&type=chunk) [Income Tax, Finance Costs and Earnings Per Share](index=11&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E3%80%81%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC%E5%8F%8A%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) In 2022, the Group recorded an income tax credit of HKD 53.258 Million, mainly from deferred income tax credit in the US, while net finance costs significantly increased by 93.9% to HKD 70.187 Million due to rising interest rates, and basic earnings per share decreased from HKD 2.20 to HKD 1.25 Net Finance Costs | Item | 2022 (HKD Thousand) | 2021 (HKD Thousand) | | :--- | :--- | :--- | | Finance Income | 1,038 | 406 | | Finance Costs | (71,225) | (36,610) | | **Net Finance Costs** | **(70,187)** | **(36,204)** | Income Tax (Credit)/Expense | Item | 2022 (HKD Thousand) | 2021 (HKD Thousand) | | :--- | :--- | :--- | | Current Income Tax | 4,750 | 11,149 | | Deferred Income Tax (Credit)/Expense | (58,008) | 17,866 | | **Total Income Tax (Credit)/Expense** | **(53,258)** | **29,015** | - Basic earnings per share were **HKD 1.25**, calculated based on profit attributable to equity holders of the Company of **HKD 360 Million** and 287.7 million ordinary shares in issue (2021: **HKD 2.20 per share**), with no potential dilutive effect[62](index=62&type=chunk)[41](index=41&type=chunk) [Dividends](index=12&type=section&id=%E8%82%A1%E6%81%AF) The Board proposed a final dividend of HKD 6 Cents per ordinary share, a 50% reduction from HKD 12 Cents last year, bringing the total full-year dividend to HKD 20 Cents per share including the interim dividend of HKD 14 Cents Dividends Declared | Dividend | 2022 | 2021 | | :--- | :--- | :--- | | Interim Dividend (per Share) | HKD 14 Cents | HKD 10 Cents | | Proposed Final Dividend (per Share) | HKD 6 Cents | HKD 12 Cents | | **Full Year Dividend (per Share)** | **HKD 20 Cents** | **HKD 22 Cents** | [Trade and Other Receivables and Payables](index=12&type=section&id=%E6%87%89%E6%94%B6%E5%8F%8A%E6%87%89%E4%BB%98%E8%B3%87%E6%AC%BE) As of year-end 2022, net trade receivables increased to HKD 3.527 Million, with a notable rise in receivables over 90 days, and total trade payables also increased to HKD 13.817 Million Trade Receivables Ageing | Trade Receivables Ageing | 2022 (HKD Thousand) | 2021 (HKD Thousand) | | :--- | :--- | :--- | | 0-30 Days | 1,584 | 1,446 | | 31-60 Days | 147 | 137 | | 61-90 Days | 110 | 131 | | Over 90 Days | 1,686 | 91 | | **Total** | **3,527** | **1,805** | Trade Payables Ageing | Trade Payables Ageing | 2022 (HKD Thousand) | 2021 (HKD Thousand) | | :--- | :--- | :--- | | 0-30 Days | 11,540 | 9,159 | | 31-60 Days | 1,167 | 182 | | 61-90 Days | 379 | 7 | | Over 90 Days | 731 | 332 | | **Total** | **13,817** | **9,680** | [Management Discussion and Analysis](index=14&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) [Chairman's Statement](index=14&type=section&id=%E4%B8%BB%E5%B8%AD%E5%A0%B1%E5%91%8A%E6%9B%B8) The Chairman's Statement highlights a 41.1% decrease in 2022 consolidated profit to HKD 386 Million, mainly due to reduced fair value gains on investment properties, with underlying profit also down 31.1% due to increased interest expenses, anticipating continued pressure from rising interest rates but improved business conditions in 2023 as pandemic effects wane and tourism recovers, while the Group plans to enhance its property portfolio and explore Greater Bay Area investment opportunities - Core property leasing business remained stable, while hotel and food and beverage operations recorded significant revenue growth due to full-year operations of two hotels, driving the Group's total revenue growth of **8.1%**[67](index=67&type=chunk) - Looking ahead, rising interest rates in the US and Europe will significantly increase the Group's interest expenses, negatively impacting profits in the coming years[50](index=50&type=chunk) - The Group's strategy will continue to focus on investing in upgrading and modernizing its existing property portfolio to enhance rental growth potential, and may explore investment opportunities in the Greater Bay Area[71](index=71&type=chunk) [Business Review](index=16&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group's hotel operations showed strong performance in 2022 with a 95.9% revenue increase due to full-year operations of two hotels, while Hong Kong property leasing saw slight growth, and the San Francisco office leasing market remained sluggish with decreased occupancy and a 7.2% reduction in rental income - Hotel business revenue significantly increased by **95.9%** to **HKD 71.7 Million**, with The Figo and The Arca hotels achieving average occupancy rates of **92.4%** and **76.5%**, and average daily room rates of **HKD 806** and **HKD 869** respectively[53](index=53&type=chunk) - In Hong Kong, gross rental income increased by **1.4%** to **HKD 267.1 Million**, primarily from the contribution of new commercial spaces[74](index=74&type=chunk) - In the US, gross rental income from Montgomery Plaza decreased by **7.2%** to **HKD 73.5 Million**, with office occupancy at **70%** by year-end, reflecting a persistent sluggish market[75](index=75&type=chunk) [Liquidity and Financial Resources](index=16&type=section&id=%E6%B5%81%E5%8B%95%E6%80%A7%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) The Group maintains a sound financial position with a gearing ratio (total debt to total equity) of 28.2%, consistent with the prior year, and total bank borrowings slightly increased to HKD 2.574 Billion, possessing sufficient bank credit facilities and relying on operating cash flow and bank borrowings for funding needs Key Financial Metrics | Financial Metric | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Total Bank Borrowings | HKD 2.574 Billion | HKD 2.511 Billion | | Total Equity | HKD 9.115 Billion | HKD 8.810 Billion | | Gearing Ratio | 28.2% | 28.5% | - The Group's borrowings and cash are primarily denominated in HKD and USD, thus posing no significant foreign exchange fluctuation risk[94](index=94&type=chunk) - As of year-end, the Group's long-term bank loans maturing within one year amounted to **HKD 692 Million**, with **HKD 1.223 Billion** maturing in the second year[95](index=95&type=chunk) [Corporate Governance and Other Information](index=19&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) [Corporate Governance](index=19&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) During the reporting period, the company complied with the Corporate Governance Code under the Listing Rules, with the only deviation being the combined roles of Chairman and Chief Executive Officer held by Mr. Ma Ching Wai, which the Board believes provides strong and consistent leadership beneficial to the company and shareholders - The company complied with the code provisions of the Corporate Governance Code, except for the provision where the roles of Chairman and Chief Executive Officer are held by the same individual[87](index=87&type=chunk)[100](index=100&type=chunk) - The Board believes that combining the roles of Chairman and Chief Executive Officer provides strong and consistent leadership for the company, facilitating effective strategic planning and implementation[100](index=100&type=chunk) [Shareholder Information](index=19&type=section&id=%E8%82%A1%E6%9D%B1%E8%B3%87%E6%96%99) The company plans to hold its Annual General Meeting on May 22, 2023, with share transfer registration suspended from May 17 to May 22, 2023, to determine eligibility for attendance - The Annual General Meeting is scheduled for May 22, 2023[88](index=88&type=chunk)[102](index=102&type=chunk) - To ensure shareholders' eligibility to attend the Annual General Meeting, share transfer registration will be suspended from May 17 to May 22, 2023 (both dates inclusive)[104](index=104&type=chunk)

Financial Performance - Total revenue for the six months ended June 30, 2022, was HKD 213,429,000, an increase of 11.2% compared to HKD 191,817,000 for the same period in 2021[13]. - Gross profit for the same period was HKD 132,976,000, slightly up from HKD 131,574,000, indicating a stable gross margin[13]. - Operating profit increased to HKD 257,045,000, up 29% from HKD 199,342,000 in the previous year[13]. - Net profit attributable to shareholders for the period was HKD 236,439,000, compared to HKD 171,740,000 in 2021, reflecting a growth of 37.6%[15]. - Earnings per share (basic and diluted) rose to HKD 0.82, up from HKD 0.60 in the prior year[13]. - The total comprehensive income for the period was HKD 261,839,000, compared to HKD 228,640,000 in 2021, indicating a growth of 14.5%[18]. - The group's consolidated profit for the first half of 2022 was HKD 261.4 million, an increase of HKD 87.1 million or 50% compared to HKD 174.3 million in the same period of 2021[101]. - Basic earnings per share for the first half of 2022 were HKD 0.82, up from HKD 0.60 in 2021[101]. Assets and Liabilities - Total assets as of June 30, 2022, amounted to HKD 12,091,934,000, an increase from HKD 11,832,924,000 at the end of 2021[10]. - Total equity increased to HKD 9,034,976,000 from HKD 8,809,572,000, showing a growth of 2.5%[10]. - The company's total liabilities were HKD 3,056,958,000, with HKD 2,770,468,000 in Hong Kong and HKD 286,490,000 in North America[51]. - The group's current liabilities net value as of June 30, 2022, was HKD 104,219,000, a decrease from HKD 458,086,000 at the end of 2021, indicating improved financial stability[29]. - The group reported a significant reduction in short-term bank loans to HKD 240,000,000 from HKD 480,000,000, reflecting a strategic focus on debt management[29]. - Long-term bank loans secured by properties amounted to HKD 2,352,777,000 as of June 30, 2022, an increase from HKD 2,030,816,000 as of December 31, 2021[74]. - Total bank borrowings increased by HKD 82 million to HKD 2.59 billion as of June 30, 2022, compared to HKD 2.51 billion on December 31, 2021[108]. - The debt-to-equity ratio as of June 30, 2022, was 28.7%, slightly up from 28.5% on December 31, 2021[108]. Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2022, was HKD 95,832,000, an increase of 32% compared to HKD 72,594,000 for the same period in 2021[22]. - The net cash used in investing activities was HKD (35,668,000), a significant improvement from HKD (114,468,000) in the previous year, indicating a reduction in investment outflows[22]. - The net cash generated from financing activities was HKD 24,892,000, down from HKD 53,317,000 in the prior year, reflecting changes in financing strategies[22]. - As of June 30, 2022, cash and cash equivalents increased to HKD 197,180,000, compared to HKD 152,814,000 at the end of the previous year, showing a strong liquidity position[22]. Investment Properties - The company reported a fair value gain on investment properties of HKD 187,181,000, compared to HKD 138,130,000 in the previous year[13]. - The total valuation of investment properties as of June 30, 2022, was HKD 9,748.8 million, an increase of HKD 194.7 million or 2% from HKD 9,554.1 million at the end of 2021[102]. - The fair value of investment properties is determined using a capitalization approach, with no transfers between fair value levels during the period[59]. - The fair value per square foot for residential properties under development is HKD 85,000[65]. - The capitalization rates for completed properties ranged from 1.9% to 4.5% for commercial properties, with a specific rate of 6.0% for North American commercial properties[65]. Operational Highlights - The revenue breakdown includes property leasing (HKD 157,021,000), property-related services (HKD 23,785,000), and hotel operations (HKD 14,066,000) for the first half of 2022[42]. - Basic profit from property leasing and related services in Hong Kong was HKD 39,370,000, while North America reported a loss of HKD 84,834,000, leading to a total profit of HKD 261,418,000[49]. - Gross rental income in Hong Kong for the first half of 2022 was HKD 134.5 million, an increase of HKD 2.9 million or 2.2% compared to the same period last year[107]. - Room and dining revenue from hotels for the first half of 2022 was HKD 28.8 million, significantly up from HKD 7.6 million in 2021 due to full operations of the two hotels[107]. - The average occupancy rates for the two hotels during the first half of 2022 were 88.4% and 70% respectively[107]. Dividends and Shareholder Information - Declared interim dividend of HKD 0.14 per share for the six months ended June 30, 2022, compared to HKD 0.10 per share in 2021, totaling HKD 40,274,000[91]. - The company declared an interim dividend of HKD 0.14 per share, an increase from HKD 0.10 per share in the previous year[114]. - Major shareholder, Jin Can Company, holds 138,998,248 shares, representing 48.32% of total shares[121]. - The company did not repurchase or sell any of its shares during the reporting period[125]. Corporate Governance and Compliance - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange, with the exception of the separation of roles between the Chairman and CEO, which are held by the same individual since June 15, 2017[127]. - The interim results for the six months ending June 30, 2022, have been reviewed by the audit committee and are unaudited, but have been reviewed by independent auditors according to the relevant standards[128]. - The Chairman, Ma Qingwei, confirmed the compliance of all directors with the trading standards during the reporting period[127].

Hotel Development and Services - The new hotel brand "Yage" opened in May 2021, featuring 187 spacious rooms with modern amenities[6] - The hotel includes "Arca Society," a dining space offering a unique blend of Asian and Western cuisine[9] - "Arca Assembly," a multifunctional event space, can accommodate 288 seats and host up to 600 guests, equipped with the latest smart technology[10] - The company aims to enhance customer experience through modern design and high-quality service in its new hotel[6] - Core property leasing business increased by 4.6% compared to the previous year, while hotel room and dining revenue saw a significant increase of HKD 34.8 million, mainly from the opening of the Yage Hotel in May 2021[31] - The hotel room revenue and food and beverage income for 2021 amounted to HKD 36.6 million, a significant increase of HKD 1.8 million compared to 2020, attributed to the full-year operation of the Feige Hotel and the opening of the Yage Hotel in May 2021[38] - The average occupancy rates for Feige Hotel and Yage Hotel in 2021 were 90% and 41.8%, respectively[38] Financial Performance - The group's consolidated profit for the year ended December 31, 2021, was HKD 654.4 million, an increase of HKD 874 million compared to a consolidated loss of HKD 153 million in 2020[31] - Earnings per share for 2021 were HKD 2.20, compared to a loss per share of HKD 0.54 in 2020[31] - The fair value gain of investment properties (after US deferred tax) was HKD 601.4 million in 2021, compared to a fair value loss of HKD 233.9 million in 2020[31] - Basic profit, excluding the impact of fair value changes, was approximately HKD 53 million, a decrease of HKD 27.9 million or 34.5% from HKD 80.9 million in 2020[31] - Total revenue for 2021 increased by HKD 55.3 million or 15.7% to HKD 407 million, compared to HKD 351.7 million in 2020[31] - As of December 31, 2021, the total valuation of investment properties was HKD 9.554 billion, an increase of HKD 897.8 million or 10.4% from HKD 8.653 billion on December 31, 2020[32] - Total equity amounted to HKD 8.809 billion, up from HKD 8.134 billion on December 31, 2020[32] - In 2021, the gross rental income in Hong Kong was HKD 263.4 million, an increase of HKD 13.7 million or 5.5% compared to 2020, primarily due to increased contributions from the Bridgeway project[38] - The total bank borrowings increased by HKD 77.4 million to HKD 2.51 billion in 2021, compared to HKD 2.43 billion in 2020[39] - The total equity increased by HKD 667.6 million to HKD 8.81 billion in 2021, compared to HKD 8.13 billion in 2020[39] - The debt-to-equity ratio was 28.5% in 2021, down from 29.9% in 2020[39] Corporate Governance and Management - The company is committed to sustainable development and enhancing its corporate governance practices[4] - The company has maintained compliance with the Corporate Governance Code as per the Listing Rules, except for a specific provision noted in the annual report[85] - The company’s board of directors includes five executive directors and three independent non-executive directors[60] - The board consists of five executive directors, one non-executive director, and three independent non-executive directors, ensuring compliance with independence requirements[109] - The company has received annual confirmations of independence from all independent non-executive directors, affirming their status as independent individuals[86] - The company has established and maintained directors' liability insurance to provide appropriate protection for its directors[100] - The board proposed a final dividend of HKD 0.12 per ordinary share, unchanged from 2020[33] - The company has a flexible dividend policy, considering various factors such as operational performance and cash flow when determining dividend amounts[97] - The board reviews corporate governance policies and practices annually, ensuring compliance with legal and regulatory requirements[113] - The company encourages continuous professional development for all directors, providing training sessions and materials[117] Risk Management - The company has outlined major risk factors and mitigation measures in its annual report, emphasizing the impact of financial risks on performance[90] - The group faces significant risks including regulatory changes, market risks due to the COVID-19 pandemic, and operational risks related to contractor performance[170] - Financial risks include interest rate risk and liquidity risk, with measures in place to monitor financial market conditions and maintain sufficient cash reserves[172] - The group has implemented training for employees to understand the latest regulatory requirements and continuously monitors regulatory changes[167] - The internal audit function assessed the adequacy and effectiveness of the group's risk management and internal control systems, confirming they are appropriate and effective[166] - The audit committee assists the board in reviewing the effectiveness of risk management and internal control systems[161] Sustainability and ESG Initiatives - The group has identified 23 key sustainability topics that impact its operations and stakeholders[193] - The board is responsible for overseeing the implementation of environmental, social, and governance (ESG) strategies and policies[189] - The group emphasizes the importance of integrating ESG principles into its risk management system[188] - Stakeholder feedback was collected through an online survey to assess the importance of various ESG topics[196] - The group has established an ESG working group to assist in developing and implementing its ESG strategies[189] - The report does not include environmental and social data from the US division[184] - The company aims to enhance transparency and accountability in its ESG reporting practices[200] - Future ESG initiatives will be aligned with stakeholder expectations and regulatory requirements[200] - The group is exploring opportunities for market expansion through sustainable practices[200]

Financial Performance - Total revenue for the six months ended June 30, 2021, was HKD 191,817,000, an increase of 9.3% from HKD 174,563,000 in the same period of 2020[13] - Gross profit for the same period was HKD 131,574,000, compared to HKD 140,776,000 in 2020, reflecting a decrease of 6.5%[13] - Operating profit for the six months was HKD 199,342,000, a significant recovery from an operating loss of HKD 120,602,000 in the previous year[13] - The net profit attributable to shareholders was HKD 171,740,000, compared to a loss of HKD 135,749,000 in the same period last year[13] - Earnings per share for the period was HKD 0.60, compared to a loss per share of HKD 0.47 in 2020[13] - The company reported a total comprehensive income of HKD 228,640,000 for the six months, a significant increase from HKD 17,900,000 in the same period of 2020[18] - The group reported a basic profit of HKD 174,270,000 for the six months ended June 30, 2021, compared to a loss of HKD 133,542,000 in the same period of 2020[48] - Basic earnings per share for the first half of 2021 were HKD 0.60, compared to a loss per share of HKD 0.47 in the same period of 2020[101] Assets and Liabilities - Total assets as of June 30, 2021, amounted to HKD 11,381,304,000, an increase from HKD 11,107,247,000 at the end of 2020[10] - Total equity increased to HKD 8,326,549,000 from HKD 8,133,395,000 at the end of 2020, representing a growth of 2.4%[10] - The group's total liabilities were HKD 3,054,755,000, with current liabilities amounting to HKD 813,479,000 as of June 30, 2021[50] - Long-term bank loans amounted to HKD 2,063,373,000 as of June 30, 2021, with a portion due within one year being HKD 166,732,000[71] - The group's current liabilities net value as of June 30, 2021, was HKD 506,344,000, primarily consisting of short-term bank loans of HKD 479,912,000[29] Cash Flow - For the six months ended June 30, 2021, the net cash generated from operating activities was HKD 72,594,000, a slight decrease from HKD 73,659,000 in the same period of 2020[22] - The net cash used in investing activities amounted to HKD (114,468,000), compared to HKD (149,308,000) in the previous year, indicating a reduction in investment outflows[22] - The net cash generated from financing activities was HKD 53,317,000, a significant decrease from HKD 210,537,000 in the prior year, reflecting changes in financing strategies[22] - As of June 30, 2021, cash and cash equivalents increased to HKD 152,814,000 from HKD 134,888,000 at the beginning of the period[22] Investment and Capital Expenditure - Capital expenditure for the six months ended June 30, 2021, was HKD 88,966,000, compared to HKD 188,204,000 in the same period of 2020[48] - The company continues to focus on expanding its investment properties, with fair value gains contributing positively to the overall financial performance[13] - Total investment property valuation as of June 30, 2021, was HKD 8.99 billion, an increase of HKD 335.1 million or 3.9% from HKD 8.65 billion as of December 31, 2020[102] Dividends and Shareholder Information - The interim dividend declared was HKD 0.10 per ordinary share, consistent with the previous year, totaling HKD 28,767,000 for both periods[90] - Major shareholder Jin Chan Company holds 138,998,248 shares, representing 48.32% of total shares[122] - The company did not repurchase or sell any of its shares during the reporting period[125] Corporate Governance and Management - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange, with the exception of the separation of roles between the Chairman and CEO, which are held by the same individual, Mr. Ma Qingwei[127] - The board believes that having the same person serve as both Chairman and CEO provides stable and consistent leadership, beneficial for strategic planning and execution[127] - The company remains confident in its operations and will continue to adopt a prudent approach amid ongoing uncertainties[106] Risk Management and Financial Stability - There were no changes in risk management policies since the end of last year, indicating stability in financial risk management[32] - The company believes it has sufficient financial resources to meet operational needs and settle liabilities as they fall due, supporting its going concern assumption[29] - The group maintains a strong financial position with sufficient committed bank credit facilities to meet current and future funding needs[109] Employee Information - As of June 30, 2021, the total number of full-time employees was 220, including directors[113]

Hotel Renovation and Customer Experience - The hotel at Hollywood Centre has undergone significant optimization, resulting in a new attractive appearance for guests[7]. - The hotel has been renamed "Feige" following the renovation plan[7]. - The company aims to enhance customer experience with modern design and warm color tones in the hotel[9]. - The hotel "Feige" in Sheung Wan was renovated and reopened in mid-October 2020, but hotel room revenue decreased by 86% to approximately HKD 1.8 million due to a six-month closure for renovations[39]. - The hotel "Yage" is expected to open in the second half of 2021 after obtaining a hotel license, contributing to future revenue growth[39]. - The company aims to expand its target customer base for hotel accommodation services to local residents, increasing occupancy rates[177]. Financial Performance and Revenue - The group's core property leasing business declined by 2.1% compared to the previous year, with total revenue decreasing by 5% to HKD 351.7 million (2019: HKD 370.3 million)[33]. - The group recorded a consolidated loss of HKD 153 million for the year, compared to a profit of HKD 446.4 million in 2019, resulting in a loss per share of HKD 0.54 (2019: earnings of HKD 1.52 per share)[33]. - Excluding property revaluation losses, the basic profit for the year was approximately HKD 80.9 million, down HKD 10.1 million or 11.1% from HKD 91.1 million in 2019[33]. - In 2020, the gross rental income in Hong Kong was HKD 249.7 million, a decrease of HKD 11.6 million or 4.4% compared to 2019, primarily due to rental concessions and reduced renewal rents[39]. - The gross rental income from Montgomery Plaza in the US was HKD 77.6 million in 2020, an increase of HKD 4.5 million or 6.2% compared to 2019, with an office occupancy rate of 89% at year-end[39]. - The total distributable reserves as of December 31, 2020, were HKD 559.823 million, down from HKD 580.860 million in 2019[58]. Corporate Governance and Management - The management team includes experienced directors with a long history in the company, such as the Chairman and CEO, Ma Ching Wai, who has been with the company since 1974[14]. - The company has a diversified board with members holding various positions in other organizations, enhancing its governance structure[13]. - The company maintains a high level of corporate governance practices to protect shareholder interests and enhance group performance[111]. - The board consists of five executive directors, one non-executive director, and three independent non-executive directors, ensuring compliance with listing rules[114]. - All independent non-executive directors have confirmed their independence in accordance with the relevant guidelines[115]. - The company has adopted a standard code of conduct for securities trading by directors, ensuring compliance with listing rules[112]. - The company has implemented a training program for new directors to ensure they understand their responsibilities and the company's operations[123]. Risk Management and Internal Controls - The company emphasizes the importance of maintaining effective risk management and internal control systems, which were evaluated for adequacy and effectiveness[135]. - The company has established a risk management framework that includes the board, audit committee, management, and internal control functions[170]. - The internal audit function has reviewed and assessed the adequacy and effectiveness of the company's risk management and internal control systems during the year[174]. - The board is responsible for overseeing the risk management and internal control systems to ensure effective communication of core values and operational guidelines[170]. - The company is committed to continuous improvement in its risk management processes and internal controls to address operational risks effectively[167]. Shareholder Information and Dividends - The board proposed a final dividend of HKD 0.12 per ordinary share, unchanged from 2019[34]. - The company declared an interim dividend of HKD 0.10 per share and a proposed final dividend of HKD 0.12 per share, maintaining the total dividend at HKD 0.22 per share for 2020[52]. - Shareholders holding at least 5% of voting rights can request the convening of a special general meeting[156]. Financial Position and Equity - As of December 31, 2020, the group's investment properties were revalued at HKD 8.656 billion (2019: HKD 8.6275 billion)[33]. - Total equity amounted to HKD 8.134 billion, a slight decrease from HKD 8.2034 billion in 2019[33]. - The equity decreased by HKD 70 million to HKD 81.334 billion in 2020, compared to HKD 82.034 billion in 2019, resulting in a debt-to-equity ratio of 29.9%[40]. - The total bank borrowings increased by HKD 305 million to HKD 2.433 billion in 2020, compared to HKD 2.128 billion in 2019, with long-term bank loans amounting to HKD 2.026 billion as of December 31, 2020[40]. Audit and Compliance - The audit firm has completed the audit of the annual consolidated financial statements and is willing to be reappointed[109]. - The independent auditor's report confirms that the financial statements reflect the group's financial position accurately as of December 31, 2020[189]. - Key audit matters identified include the valuation of investment properties[196]. - All investment property valuations are conducted by third-party valuers to support management's estimates[200].