Financial Performance - For the six months ended June 30, 2022, the company recorded a revenue of HKD 72,609,000, an increase of approximately 43.7% compared to HKD 50,516,000 for the same period in 2021[6]. - The unaudited consolidated profit attributable to owners for the same period was approximately HKD 11,464,000, up from HKD 11,039,000 in the previous year, reflecting a growth of about 3.9%[5]. - Operating profit for the six months ended June 30, 2022, was HKD 19,754,000, a decrease of 5.4% from HKD 20,887,000 in the previous year[58]. - Net profit for the period was HKD 11,464,000, representing an increase of 3.9% from HKD 11,039,000 in the same period last year[58]. - The company reported a total comprehensive loss of HKD 6,816,000 for the six months ended June 30, 2022, compared to a loss of HKD 39,265,000 in the previous year[58]. - Basic and diluted earnings per share for the period were HKD 0.43, compared to HKD 0.41 in the same period last year[58]. - The company reported a profit attributable to owners of HKD 11,464,000, compared to HKD 11,039,000 for the same period in 2021, representing an increase of 3.85%[110]. - The basic earnings per share for the six months ended June 30, 2022, was HKD 0.43, up from HKD 0.41 in the same period of 2021, reflecting a growth of 4.88%[110]. Revenue Segments - Interest income from financial lending business for the review period was approximately HKD 70.8 million, an increase of about HKD 23.9 million compared to HKD 46.9 million for the same period in 2021[7]. - The financial lending segment generated revenue of HKD 70,804 thousand, up 50.9% from HKD 46,900 thousand in the previous year[100]. - The property investment and development segment reported revenue of HKD 1,805 thousand, a slight decrease of 2.5% from HKD 1,851 thousand in the same period last year[100]. Property Investment and Development - The company faced challenges in the property investment and development sector, with no sales transactions approved and recorded in the government property sales system during the review period[9]. - Rental income from the property project in Zhongshan decreased by approximately 11% compared to the same period in 2021[9]. - As of June 30, 2022, there were 56 unsold residential units remaining in the Yongsheng Plaza project, with 8 of these units rented out[9]. - The fair value loss on investment properties was approximately HKD 4.0 million during the review period[7]. - The fair value loss from revaluation during the six months ended June 30, 2022, was HKD 12,738,000, a decrease from HKD 50,151,000 for the same period in 2021[118]. - The company’s investment properties under operating leases were valued at HKD 176,290,000 as of June 30, 2022, down from HKD 179,440,000 as of December 31, 2021[141]. Financial Position - Cash and cash equivalents increased to HKD 202,898,000 as of June 30, 2022, up from HKD 180,947,000 at the end of 2021[60]. - Total assets as of June 30, 2022, were HKD 1,337,771,000, slightly up from HKD 1,334,605,000 at the end of 2021[60]. - Total liabilities increased to HKD 221,685,000 as of June 30, 2022, compared to HKD 211,703,000 at the end of 2021[62]. - The company’s total equity decreased to HKD 1,116,086,000 as of June 30, 2022, from HKD 1,122,902,000 at the end of 2021[60]. - The total amount of receivables for loans and interest as of June 30, 2022, was HKD 593,820,000 and HKD 7,645,000, respectively[17]. - The total cash and cash equivalents at the end of the period stood at HKD 202,898,000, down from HKD 219,187,000 at the end of June 2021[68]. Credit Risk Management - The expected credit loss provision for receivables was HKD 35,635,000 as of June 30, 2022, reflecting the company's cautious approach to credit risk management[17]. - The total provision for expected credit losses for loans and interest receivables was HKD 21,286,000 for the six months ended June 30, 2022, compared to HKD 12,020,000 in the same period of 2021, indicating a significant increase of 77.73%[105]. - The company wrote off approximately HKD 11,423,000 in receivables and interest due to factors such as borrower bankruptcy and death during the six months ending June 30, 2022[17]. Corporate Governance - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange Listing Rules during the six months ending June 30, 2022[44]. - The board currently consists of three executive directors and two independent non-executive directors, which is below the minimum requirement of three independent directors[46]. - The audit committee has been reduced from three members to two members following the resignation of an independent non-executive director, which does not meet the requirement of at least three members[46]. - The company is in the process of identifying suitable candidates to fill the vacant positions on the board and will make announcements in due course[47]. - The company has adopted the standard code for securities transactions by directors as per the Listing Rules, and all directors have complied with this code during the six months ending June 30, 2022[48]. Market Conditions and Future Outlook - The COVID-19 pandemic continued to impact Hong Kong in the first half of 2022, but the company expects gradual economic recovery in the second half due to increased vaccination rates and government measures[26]. - The demand for unsecured loans supported by fintech services is growing, and the company plans to expand its market share through its automated mobile app "X Wallet" for personal loans[29]. - The company is actively seeking investment opportunities in the Chinese property market, particularly in Guangdong Province, despite not acquiring any land or properties during the review period due to intense competition[29]. - The company anticipates steady growth in its lending business supported by mobile application technology[29]. Employee and Operational Information - The company employed 51 staff members as of June 30, 2022, with compensation policies based on performance, qualifications, and market statistics[25]. - The group is primarily engaged in property investment and development, as well as financial lending services in Hong Kong[71]. - The group has two reportable segments: property investment and development, and financial lending, focusing on mortgage and personal loans[85][86].

Financial Performance - The company recorded a profit of HKD 21,267,000 for the fiscal year ending December 31, 2021, compared to a profit of HKD 45,959,000 for the nine-month period ending December 31, 2020[12]. - For the year ended December 31, 2021, the company recorded revenue of HKD 112,435,000 and a profit of HKD 21,267,000, compared to revenue of HKD 24,963,000 and profit of HKD 45,959,000 for the nine months ended December 31, 2020[28]. - The company's revenue from financial lending business increased significantly to HKD 106,979,000, up from HKD 19,853,000 in the previous period, indicating a strong growth in this segment[31]. - The total revenue from external customers in Hong Kong was HKD 108,839,000 for the year ended December 31, 2021, compared to HKD 21,248,000 for the previous period[46]. - The company reported a fair value loss of HKD 6.78 million on investment properties during the year[29]. - The company experienced a foreign exchange gain due to the appreciation of the Renminbi by approximately 2% during the year ended December 31, 2021[29]. Rental and Property Income - Rental income from the property "Yongsheng Plaza" increased by approximately 17% compared to the nine-month period ending December 31, 2020, due to only nine months of operation in the previous period[17]. - The group reported rental income of HKD 1,860,000 for the year ended December 31, 2021, compared to HKD 1,395,000 for the nine-month period ended December 31, 2020, representing a year-on-year increase of approximately 33.3%[117]. - The company confirmed the sale of 2 residential units during the fiscal year, compared to 3 units in the nine-month period ending December 31, 2020[17]. - The company has a total of over 440 residential units available for sale in "Yongsheng Plaza," located in a prime area of Zhongshan[16]. - The company's property sales in China generated revenue of HKD 1,765,000, down from HKD 2,422,000 in the previous period, reflecting the challenging market conditions[31]. User Growth and Digital Services - The number of registered users for the "X Wallet" app increased from 43,489 on December 31, 2020, to 62,765 on December 31, 2021[20]. - The existing customer base for "X Wallet" grew from 4,384 to 8,269 during the same period, contributing approximately HKD 54 million in performance for the fiscal year[20]. - The company plans to expand its "X Wallet" loan portfolio and enhance its product offerings to improve customer loan experiences and strengthen its secured loan business[25]. Governance and Corporate Structure - The company’s board of directors includes four executive directors and three independent non-executive directors, ensuring a diverse governance structure[82][84]. - The board consists of three executive directors and three independent non-executive directors, ensuring a balance of power and independence[136]. - The company has a robust governance structure to monitor potential conflicts of interest among directors involved in competitive businesses[105]. - The independent non-executive directors have confirmed their independence according to the listing rules, enhancing corporate governance[84]. - The company has established a governance framework ensuring that each director must rotate at least once every three years, except for the chairman and CEO[135]. Financial Management and Capital Structure - The company reported distributable reserves of HKD 344,982,000 as of December 31, 2021, including retained earnings of HKD 153,172,000 and contributed surplus of HKD 191,810,000[81]. - The company has not declared any interim or final dividends for the fiscal year ending December 31, 2021[13]. - The company’s financial position allows for the distribution of dividends, provided it meets certain solvency criteria as per Bermuda company law[81]. - The total capital utilized was HKD 47,876,000 for the year ended December 31, 2021, compared to HKD 28,855,000 for the nine-month period ended December 31, 2020[49]. - The average capital utilized was HKD 1,298,124,000 for the year ended December 31, 2021, compared to HKD 1,117,482,000 for the nine-month period ended December 31, 2020[49]. Risk Management and Internal Control - The company emphasizes the importance of risk management and internal control, with the board responsible for the effectiveness of these systems[176]. - The internal audit function is conducted by an external professional firm, ensuring independence and thorough evaluation of risk management and internal control systems[187]. - The Audit Committee held 3 meetings during the fiscal year ending December 31, 2021, to review financial statements and internal control effectiveness[154]. - No significant control deficiencies were identified during the internal control review conducted in 2021[188]. Employee and Compensation Policies - The group employed 47 staff members as of December 31, 2021, with compensation policies based on performance and market salary levels[65]. - The total employer contributions to the mandatory provident fund plan for the year ended December 31, 2021, amounted to HKD 583,000, up from HKD 197,000 for the nine-month period ended December 31, 2020, indicating a significant increase of approximately 195.4%[121]. - The company has a remuneration range for senior management, with 1 individual earning between HKD 0 to 1,000,000[161]. - The company aims to attract and retain executives necessary for business development, with compensation reflecting individual performance and responsibilities[157]. Shareholder Engagement and Meetings - The attendance rate for the annual general meeting was 100% for key directors, indicating strong engagement with shareholders[195]. - The company plans to hold its next annual general meeting on June 10, 2022[195]. - Shareholders holding at least 10% of the voting rights can request a special general meeting[199]. - Procedures for nominating candidates for the board at the annual general meeting are available on the company's website[200].

Financial Performance - The company reported a consolidated profit attributable to owners of approximately HKD 11,039,000 for the six months ended June 30, 2021, compared to a loss of HKD 6,021,000 for the same period in 2020[5]. - Revenue for the six-month period was HKD 50,516,000, significantly up from HKD 8,695,000 for the same period in 2020[7]. - The company reported a net loss of HKD 5,908,000 for the six months ended June 30, 2021, compared to a net profit of HKD 11,039,000 for the same period in 2020[42]. - The company reported a significant other comprehensive loss of HKD 50,304,000 for the period, primarily due to revaluation losses on leasehold land and buildings[42]. - The company experienced a total comprehensive loss of HKD 39,265 thousand for the six months ended June 30, 2021, compared to a total comprehensive income of HKD 560 thousand for the same period in 2020[44]. - Total tax expenses for the six months ended June 30, 2021, amounted to HKD 5,908,000, significantly higher than HKD 984,000 for the same period in 2020[76]. Revenue Sources - For the six months ended June 30, 2021, total revenue was HKD 50,516,000, with property development and investment contributing HKD 3,616,000 and financial lending contributing HKD 46,900,000[58]. - Interest income from financial lending operations increased to approximately HKD 46.9 million, up by about HKD 42.4 million compared to HKD 4.5 million for the same period in 2020[8]. - Revenue from property sales in China for the six months ended June 30, 2021, was HKD 1,765, compared to HKD 2,422 for the six months ended September 30, 2020[64]. User Growth and Engagement - The number of registered users for the "X Wallet" mobile application increased from 43,489 in 2020 to 54,090 by June 30, 2021[10]. - The number of existing customers for "X Wallet" rose from 4,384 at the end of 2020 to 6,540 by June 30, 2021, contributing to improved performance in unsecured loans[10]. - The group anticipates growth in its fintech lending business, driven by increasing demand for unsecured loan services through its mobile app "X Wallet" which offers instant approval and 24/7 fund transfers[15]. Acquisitions and Investments - The acquisition of Zero Finance Group was completed on October 30, 2020, for a total consideration of HKD 404,109,000, with part of the payment made in shares and the remainder in cash[17][18]. - The acquisition is expected to create synergies between the group's existing mortgage lending business and Zero Finance's secured and unsecured lending operations[21]. - The acquisition of "X Wallet" is expected to provide potential mortgage loan customers and reduce reliance on agent referrals, thereby lowering loan business costs[22]. - The company is actively seeking investment opportunities in the Chinese property market, particularly in Guangdong Province, despite facing intense competition[16]. Financial Position - Total assets as of June 30, 2021, were HKD 1,330,116 thousand, a decrease of 2.8% from HKD 1,368,929 thousand as of December 31, 2020[43]. - Total equity amounted to HKD 1,121,156 thousand, down from HKD 1,160,421 thousand, reflecting a decline of 3.4%[44]. - The company reported a net cash outflow from operating activities of HKD 38,405 thousand for the six months ended June 30, 2021, compared to a net outflow of HKD 987 thousand for the same period in 2020[45]. - The cash and cash equivalents at the end of the period were HKD 219,187 thousand, an increase from HKD 192,189 thousand as of September 30, 2020[45]. Operational Insights - The group has a strong cash position with no significant capital expenditure commitments, relying on cash generated from operations and reserves[12]. - The group employs 54 staff members, with compensation based on performance, qualifications, and market statistics[14]. - The company has not purchased, sold, or redeemed any of its listed securities during the six months ended June 30, 2021[33]. - The company has complied with the corporate governance code during the reporting period[34]. Market Conditions - The COVID-19 pandemic has impacted the global economy, but with vaccination rollouts, the economy is expected to gradually recover in the second half of the year[15]. - There is a growing demand for convenient and efficient lending services in Hong Kong, and "X Wallet" is well-positioned to meet this demand with its automated services[24]. - The company acknowledges the competitive challenges in the market but remains optimistic about the prospects of "X Wallet" personal loan services[24]. Shareholder Information - As of June 30, 2021, Lee & Leung (B.V.I.) Limited holds 1,252,752,780 shares, representing 46.96% of the company's issued share capital[29]. - Earth Axis Investment Limited holds 710,000,000 shares, accounting for 26.62% of the company's issued share capital[29]. - The company reported a total of 2,667,643,000 weighted average ordinary shares outstanding for the six months ended June 30, 2021, compared to 1,957,643,000 in the same period of 2020, reflecting an increase of 36%[77]. Expenses and Liabilities - Employee benefits expenses increased to HKD 7,008,000 for the six months ended June 30, 2021, compared to HKD 2,431,000 for the same period in 2020, representing a growth of 187%[66]. - Interest expenses for the financial lending segment were HKD 3,940 for the six months ended June 30, 2021, compared to HKD 8 for the same period in the previous year[61]. - The company’s total liabilities were HKD 208,960 thousand, a slight increase from HKD 208,508 thousand[43].

Financial Performance - The company recorded a profit of HKD 45,959,000 for the nine months ending December 31, 2020, compared to a loss of HKD 26,983,000 for the previous fiscal year[10]. - The group recorded revenue of HKD 24,963,000 and profit of HKD 45,959,000 for the nine months ending December 31, 2020, compared to revenue of HKD 14,869,000 and a loss of HKD 26,983,000 for the previous year[46]. - Revenue for the nine months ended December 31, 2020, was HKD 24,963,000, compared to HKD 14,869,000 for the year ended March 31, 2020, representing a growth of 67.5%[48]. - Interest income from financial lending business was HKD 19,853,000 for the nine months ended December 31, 2020, significantly up from HKD 6,829,000 for the year ended March 31, 2020, indicating an increase of 191.5%[48]. - The group recognized an expected credit loss provision of approximately HKD 19 million for receivables as of December 31, 2020, considering the economic environment and the impact of COVID-19[37]. - The group anticipates a steady growth in demand for loan services as the Hong Kong economy is expected to recover, according to the International Monetary Fund[40]. Dividends and Reserves - The company did not declare an interim dividend for the six months ending September 30, 2020, and recommended no final dividend for the nine months ending December 31, 2020[11]. - The company's distributable reserves as of December 31, 2020, amounted to HKD 348,140,000, which includes retained earnings of HKD 156,330,000 and contributed surplus of HKD 191,810,000[97]. - The board has adopted a dividend policy without a predetermined payout ratio, considering factors such as operational performance and future prospects when declaring dividends[191]. Property Sales and Rental Income - The company has completed 4 sale agreements in Zhongshan, with 3 sales approved and recorded in the government property sales system during the nine months ending December 31, 2020[16]. - The company confirmed the sale of 3 residential units during the nine months ending December 31, 2020, down from 5 units in the previous fiscal year[16]. - Rental income from the company's properties decreased by approximately 53% during the nine months ending December 31, 2020, compared to the same period in the previous fiscal year[16]. - Revenue from property sales in China was HKD 2,422,000 for the nine months ended December 31, 2020, down from HKD 4,264,000 for the year ended March 31, 2020, reflecting a decrease of 43.2%[48]. - Rental income was HKD 2,688,000 for the nine months ended December 31, 2020, compared to HKD 3,776,000 for the year ended March 31, 2020, showing a decline of 28.9%[48]. Acquisitions and Mergers - The acquisition of Zero Finance Group was announced on September 23, 2020, with a total consideration of HKD 404,109,000, of which HKD 205,229,444 will be settled through the issuance of 710,000,000 shares at an issue price of approximately HKD 0.289 per share[21]. - The acquisition was completed on October 30, 2020, and Zero Finance Group has since become a wholly-owned subsidiary of the company, with its financial data consolidated into the group’s accounts for the nine months ending December 31, 2020[24]. - The company expects that the merger of its existing mortgage lending business with Zero Finance Group's secured and unsecured lending operations will create synergies and enhance overall lending capabilities[28]. - The independent financial advisor, China Galaxy International Securities, was appointed to provide advice on the acquisition to the independent board committee and shareholders[24]. - The acquisition involved a related party transaction as the sellers are majority shareholders of the company, requiring compliance with the relevant listing rules and independent shareholder approval[138]. Market Conditions and Strategy - The company is facing a competitive property market in Zhongshan, with a significant supply of modern properties and ongoing challenges in sales performance[15]. - The company aims to enhance marketing activities for its properties to improve operational performance[15]. - The company is navigating a challenging regulatory environment in China, with new regulations affecting residential property sales prices and buyer qualifications[16]. - The group is actively seeking investment opportunities in the property market in Guangdong Province, despite not acquiring any land or properties during the review period due to intense competition[39]. - The group expects new housing policies in Hong Kong to further support the development of mortgage loan business[43]. Financial Position and Cash Management - The company had a net cash position as of December 31, 2020, with total cash and bank balances amounting to approximately HKD 256,000,000, representing 61% of total current assets[68]. - The average utilized capital for the nine months ended December 31, 2020, was HKD 1,326,604,000, compared to HKD 1,117,482,000 for the year ended March 31, 2020, indicating an increase of 18.7%[65]. - The consolidated utilized capital return rate for the nine months ended December 31, 2020, was 2.58%, compared to -1.97% for the year ended March 31, 2020[65]. Corporate Governance and Compliance - The company has complied with the corporate governance code during the nine-month period ended December 31, 2020, except as disclosed[156]. - The board of directors consists of three executive directors and three independent non-executive directors, ensuring a balance of power and responsibilities[157]. - The independent non-executive directors have been appointed for a term from January 1, 2021, to December 31, 2022, for a duration of two years[104]. - The company has established a board diversity policy to enhance board efficiency and corporate governance, considering various factors without discrimination[190]. - The company has not engaged in any significant non-compliance with applicable laws and regulations that would materially impact its business and operations during the nine months ended December 31, 2020[76]. Employee and Operational Information - The group employed 60 staff members as of December 31, 2020, with employee benefits including insurance, provident fund plans, and discretionary bonuses[81]. - The total employer contributions to the Mandatory Provident Fund for the nine months ended December 31, 2020, amounted to HKD 197,000, compared to HKD 268,000 for the previous year[142]. - The remuneration range for senior management as of December 31, 2020, included 1 individual earning between 0 to HKD 1,000,000[181]. Risk Management - The company emphasizes the importance of internal control and risk management, with the board responsible for the effectiveness of these systems[197]. - The risk management policy is integral to the company's operations, ensuring reliable financial reporting and compliance with laws and regulations[199]. - The company will implement formal risk assessment reviews and regularly monitor and reassess significant risks faced[200].

Financial Performance - For the six months ended September 30, 2020, the company reported a revenue of HKD 8,695,000, compared to HKD 8,457,000 for the same period in 2019, representing an increase of approximately 2.8%[7] - The company incurred a loss attributable to owners of approximately HKD 6,021,000, a significant improvement from a loss of HKD 21,885,000 in the same period of the previous year, indicating a reduction in losses by about 72.5%[6] - The gross profit for the same period was HKD 6,598 million, compared to HKD 6,160 million in the previous year, indicating an increase of about 7%[47] - The company recorded a loss before tax of HKD 5,037 million, significantly improved from a loss of HKD 20,272 million in the prior year, reflecting a reduction of approximately 75%[47] - The net loss for the period was HKD 6,021 million, compared to a net loss of HKD 21,885 million in the previous year, showing an improvement of around 73%[47] - Basic and diluted loss per share for the period was HKD (0.31), an improvement from HKD (1.12) in the prior year[47] - The company reported a total comprehensive loss of HKD (28,571,000) for the six months ended September 30, 2020, compared to a loss of HKD (21,885,000) for the same period in 2019, indicating a worsening financial performance[53] Revenue and Income Sources - For the six months ended September 30, 2020, total revenue was HKD 8,695 million, with property development and investment contributing HKD 4,226 million and financial lending contributing HKD 4,469 million[68] - The segment performance for property development and investment showed a profit of HKD 12,055 million, while financial lending reported a profit of HKD 3,891 million, leading to a total segment performance of HKD 15,946 million[68] - Revenue from property sales in China for the six months ended September 30, 2020, was HKD 2,422,000, compared to HKD 4,264,000 for the same period in 2019, indicating a decline[82] - Interest income from bank deposits increased to HKD 833,000 for the six months ended September 30, 2020, up from HKD 418,000 in the same period of 2019[83] - The company reported a net unrealized foreign exchange gain of HKD 7,944,000 for the six months ended September 30, 2020, compared to a loss of HKD 11,988,000 in the same period of 2019[83] Investment and Acquisitions - The company has no new products or services planned for launch, but it completed the acquisition of Zero Finance Group in October 2020, which will expand its lending business[15] - The acquisition of Earth Axis Investment Limited's subsidiary, Yaxin Credit Investment Limited, was announced on September 23, 2020, for a total consideration of HKD 404,109,000, with HKD 205,229,444 settled through the issuance of 710,000,000 shares[19] - The company has entered into an agreement to acquire 100% of the issued share capital of Yaxin Credit Investment Limited for an initial consideration of HKD 404,109,000, with part of the payment to be settled in shares[115] - The company plans to issue 710,000,000 new shares at an issue price of HKD 0.289 to settle approximately HKD 205,229,000 of the acquisition cost[115] Risk Management - The company continues to face foreign exchange risks primarily related to the Renminbi, with no financial instruments arranged for hedging purposes[14] - The company plans to enhance its risk management policies in response to the unpredictable impacts of political issues and trade conflicts on the Hong Kong economy[18] - The financial risk factors faced by the company include market risk (foreign exchange risk and cash flow and fair value interest rate risk), credit risk, and liquidity risk[67] Operational Performance - The company continues to focus on property investment and development, as well as providing mortgage loans in Hong Kong, indicating a strategic focus on core business areas[58] - The company is actively seeking investment opportunities in the competitive Guangdong property market, although no acquisitions were made during the review period[17] - The company is cautiously optimistic about generating stable interest income from its lending operations in Hong Kong[12] - The company will continue to monitor the impact of COVID-19 on its financial condition and operational performance, as the situation remains uncertain[18] Corporate Governance - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange regulations during the reporting period[39] - The audit committee has reviewed the accounting principles and practices adopted by the group, ensuring compliance with relevant financial reporting standards[41] - The company has established a standard code for securities trading by directors, ensuring adherence to regulatory requirements[40] Employee and Administrative Expenses - The company employed 37 staff members as of September 30, 2020, with compensation policies based on performance, qualifications, and market statistics[16] - Employee benefit expenses decreased to HKD 2,431,000 for the six months ended September 30, 2020, down 41.5% from HKD 4,127,000 in the same period of 2019[85] - The company paid HKD 2,713,500 to key management personnel during the six months ended September 30, 2020, a decrease from HKD 4,317,665 for the same period last year[110] Property and Investment Valuation - The company’s investment properties were valued at HKD 183,300,000 as of September 30, 2020, an increase from HKD 180,000,000 as of March 31, 2020[112] - The fair value gain from investment properties was HKD 3,300,000 for the six months ended September 30, 2020, compared to a loss of HKD 5,000,000 in the same period of 2019[83] - The revaluation gain for the six months ended September 30, 2020, was HKD 8,047,000, compared to a loss of HKD 9,076,000 for the same period in 2019[97] Liquidity and Cash Flow - The company has sufficient liquidity and does not have significant capital expenditure commitments, aside from the acquisition of Zero Finance Group[14] - The net cash used in operating activities for the six months ended September 30, 2020, was HKD (987,000), a decrease from HKD (36,502,000) for the same period in 2019, indicating improved cash flow management[57] - The cash and cash equivalents at the end of the period were HKD 192,189,000, compared to HKD 219,132,000 at the end of the same period last year, showing a decrease of approximately 12.3%[57]

Financial Performance - The company reported an annual loss of HKD 26,983,000 for the fiscal year ending March 31, 2020, compared to a loss of HKD 19,880,000 in the previous year[11]. - The company recorded revenue of HKD 14,869,000 for the fiscal year, a decrease of 51.4% from HKD 30,594,000 in the previous year[22]. - Revenue from property sales in China was HKD 4,264,000, down 82.7% from HKD 24,673,000 in the previous year[23]. - Rental income decreased to HKD 3,776,000 from HKD 4,199,000, reflecting a decline of 10.0%[23]. - Interest income from financial lending increased significantly to HKD 6,829,000, up 296.5% from HKD 1,722,000[23]. - The annual loss was HKD 26,983,000, compared to a loss of HKD 19,880,000 in the prior year, primarily due to a 6.6% depreciation of the Renminbi and a fair value loss of HKD 7 million on investment properties[22][23]. - The total comprehensive loss for the year amounted to HKD 35,549,000, significantly higher than the previous year's comprehensive loss of HKD 13,081,000, marking an increase of around 171.5%[165]. - The company reported a basic and diluted loss per share of HKD 1.38, compared to HKD 1.02 in the prior year, representing an increase of approximately 35.3%[165]. - The gross profit for the year was HKD 11,663,000, down from HKD 20,737,000, indicating a decrease of about 43.7%[165]. - The company incurred a tax expense of HKD 2,361,000, a decrease from HKD 8,372,000 in the previous year, indicating a reduction of approximately 71.8%[165]. Dividend Policy - The company did not declare an interim dividend for the six months ending September 30, 2019, nor a final dividend for the year ending March 31, 2020[12][13]. - The group did not declare any interim or final dividends for the fiscal year ending March 31, 2020[49][50]. - The company has no predetermined dividend payout ratio, and the board will consider operational performance, financial condition, and future prospects when declaring dividends[119]. Property Sales and Rental Income - The company sold 5 residential units in Zhongshan during the review year, a decrease from 28 units sold in the previous year[16]. - Rental income from the property "Yongsheng Plaza" decreased by approximately 47% compared to the previous year[16]. - As of March 31, 2020, there were 61 unsold residential units remaining, with 16 of those units rented out[16]. - The company generated rental income of HKD 1,872,000 in the current year from existing lease agreements, compared to HKD 1,956,000 in the previous year[81]. - The new lease agreement with Li Yongqiang has a monthly rent of HKD 155,000, down from HKD 163,000 in the previous agreement[80]. Financial Lending Business - The financial lending business, acquired through X8 Finance Limited, has shown satisfactory growth, but the COVID-19 outbreak has created unpredictable impacts on the economy and real estate market in Hong Kong[17]. - The management plans to cautiously conduct financial lending operations in Hong Kong, focusing on first mortgage loans for residential properties[17]. - The company aims to generate stable interest income from its financial lending business[18]. - The company plans to cautiously expand its financial lending business in Hong Kong while enhancing risk management policies[20]. Corporate Governance - The board consists of experienced members with over 20 years in finance and accounting, enhancing corporate governance[64][65][66]. - The company emphasizes the importance of good corporate governance to ensure proper use of funds and effective resource allocation[142]. - The independent non-executive directors have confirmed their independence according to the Hong Kong Stock Exchange Listing Rules[60]. - The board is responsible for reviewing and monitoring compliance with legal and regulatory requirements[100]. - The company is committed to maintaining and enhancing the quality of its corporate governance practices[142]. Risk Management and Internal Controls - The company emphasizes the importance of internal control and risk management, with the board responsible for the effectiveness of these systems[123]. - A formal risk assessment review will be implemented to regularly monitor and reassess significant risks faced by the company[125]. - The company has established a robust risk management policy to address operational and compliance risks[124]. - The internal audit function is conducted by an external professional firm, with a three-year internal audit plan approved by the board[131]. - No significant control deficiencies were identified during the internal control review conducted in 2020[132]. Shareholder Information - Major shareholders include Lee & Leung (B.V.I.) Limited, holding 1,252,752,780 shares, representing 63.99% of the issued share capital[78]. - The largest customer accounted for approximately 13.1% of the group's revenue, while the top five customers contributed about 40.4%[43]. - Shareholders have the right to request the convening of special general meetings and propose business transactions[139]. Audit and Financial Reporting - The financial statements for the year ending March 31, 2020, were audited by PricewaterhouseCoopers, following Deloitte's audit for the previous two years[92]. - Deloitte resigned as the company's auditor effective March 3, 2020, due to a disagreement over audit fees for the fiscal year ending March 31, 2020[120]. - The new auditor, PwC, was appointed effective March 4, 2020, to fill the vacancy left by Deloitte[120]. - The independent auditor confirmed that the consolidated financial statements fairly reflect the group's financial position as of March 31, 2020[144]. Assets and Liabilities - Total assets decreased from HKD 970,484,000 to HKD 933,687,000, a decline of approximately 3.8%[169]. - Non-current assets decreased from HKD 669,493,000 to HKD 623,770,000, a decline of about 6.9%[169]. - Current assets decreased from HKD 264,194,000 to HKD 346,714,000, a decline of approximately 23.7%[169]. - The company’s total liabilities increased, impacting its financial stability, although specific figures were not disclosed in the provided content[165]. - The company’s total liabilities decreased slightly from HKD 26,158,000 to HKD 25,327,000, a decline of about 3.2%[170]. Accounting Standards - The group adopted HKFRS 16 "Leases" effective from April 1, 2019, which resulted in the recognition of lease liabilities amounting to HKD 1,136,000[188]. - The group did not adopt any new or revised standards that would significantly impact the financial statements for the current or future reporting periods[187]. - The group has not early adopted several new accounting standards and interpretations that are not yet mandatory[187].

Financial Performance - The company reported an unaudited consolidated loss attributable to owners of approximately HKD 21,885,000 for the six months ended September 30, 2019, compared to a loss of HKD 19,696,000 for the same period in 2018[7]. - Revenue for the period was HKD 8,457,000, a decrease of 55.4% from HKD 18,955,000 for the same period in 2018[7]. - The loss during the review period was primarily due to a foreign exchange loss from the depreciation of the Renminbi by approximately 6% and a fair value loss of approximately HKD 5,000,000 on an investment property[8]. - The company reported a loss before tax of HKD 20,272 million, compared to a loss of HKD 15,417 million in the previous year, indicating a worsening financial performance[48]. - The net loss for the period was HKD 21,885 million, compared to a net loss of HKD 19,696 million for the same period in 2018[48]. - For the six months ended September 30, 2019, the company reported a total comprehensive loss of HKD 28,571,000, compared to a total comprehensive loss of HKD 16,929,000 for the same period in 2018[53]. - The company's total equity attributable to owners decreased to HKD 915,338,000 as of September 30, 2019, down from HKD 940,061,000 at the end of the previous reporting period[53]. - The basic loss per share for the period was HKD (1.12), compared to HKD (1.01) for the same period last year[48]. - The company reported a net exchange loss of HKD 11,988,000 for the six months ended September 30, 2019, compared to a loss of HKD 19,576,000 in the same period of 2018, indicating some improvement in currency management[115]. Revenue and Sales - The company confirmed the sale of 5 residential units during the review period, a significant decrease from 19 units sold in the same period last year[11]. - Rental income from the property decreased by approximately 53% compared to the same period last year due to a reduction in available units for rent[11]. - Total revenue for the six months ended September 30, 2019, was HKD 8,457,000, down from HKD 18,955,000 in the same period last year, representing a decline of 55.4%[106]. - The company's rental income from property development and investment in China was HKD 6,175,000, down from HKD 18,832,000 in the previous year, reflecting a decline of 67.2%[106]. - The company recognized interest income from financial lending activities of HKD 2,282,000, significantly up from HKD 123,000 in the previous year[106]. Investments and Acquisitions - The company acquired 100% of X8 Finance Limited for HKD 193,443, which has started mortgage lending operations in Hong Kong[14]. - The company is exploring investment opportunities in the Chinese property market, particularly in Guangdong Province, despite not acquiring any land or properties during the review period due to intense competition[21]. - There were no major acquisitions of subsidiaries or associates during the review period[16]. Risk Management and Governance - The company is strengthening its risk management policies in response to unpredictable impacts from recent political issues in Hong Kong and the US-China trade conflict[21]. - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange listing rules during the reporting period[36]. - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal controls[39]. Financial Position - Total assets as of September 30, 2019, were HKD 916,436 million, a slight decrease from HKD 944,564 million as of March 31, 2019[51]. - The company's net assets stood at HKD 915,755 million, down from HKD 944,326 million in the previous period[51]. - The company's cash and cash equivalents decreased by HKD 36,330,000, ending at HKD 219,132,000 as of September 30, 2019, down from HKD 287,016,000 a year earlier[55]. - The company experienced an increase in trade receivables of HKD 34,848,000 during the reporting period, compared to an increase of HKD 15,982,000 in the previous year[55]. - The company incurred a loss of HKD 21,885,000 during the reporting period, which impacted the retained earnings[53]. Future Outlook - The company expresses a cautiously optimistic outlook for the coming year, believing it can enhance competitiveness and create value for shareholders despite potential risks such as oil price fluctuations and political issues in Hong Kong[25]. - The company maintains a cautious approach towards its property investment and development business, as well as its financial lending operations, while seeking various investment opportunities for stable long-term performance[25]. Accounting Policies - The company applied HKFRS 16 for the first time, which resulted in changes to accounting policies regarding leases[60]. - The company recognizes right-of-use assets separately in the consolidated statement of financial position[70]. - The company measures lease liabilities at the present value of unpaid lease payments at the lease commencement date[73]. - The company recognizes refundable lease deposits at fair value and accounts for adjustments as additional lease payments[72]. Compensation and Management - The company employed 39 staff members as of September 30, 2019, with compensation based on performance and market salary levels[20]. - The total compensation for key management personnel during the interim period amounted to HKD 4,317,665, compared to HKD 4,663,500 for the six months ended September 30, 2018[155]. - The majority of the compensation is comprised of short-term benefits payable to the company's directors[155].

Financial Performance - The company recorded an annual loss of HKD 19,880,000 for the fiscal year ending March 31, 2019, compared to a profit of HKD 83,193,000 in the previous year[9]. - The company recorded revenue of HKD 30,594,000 for the fiscal year, a decrease of 10.3% from HKD 34,089,000 in the previous year[25]. - The company reported a net loss of HKD 19,880,000, compared to a profit of HKD 83,193,000 in the previous year, primarily due to non-recurring items and a 6.5% depreciation of the RMB[25]. - Revenue from property sales in China was HKD 24,673,000, down from HKD 29,413,000, reflecting a decline of 16.6%[27]. - Rental income decreased to HKD 4,199,000 from HKD 4,676,000, a decline of 10.2%[27]. - The overall pre-tax loss was HKD 11,508,000, reflecting the challenges faced during the fiscal year[31]. - The company’s return on invested capital was -0.60%, a significant decline from 3.45% in the previous year[41]. - Total revenue for the year ended March 31, 2019, was HKD 30,594,000, a decrease from HKD 34,089,000 in the previous year, representing a decline of approximately 10.3%[191]. - The company reported a loss before tax of HKD (11,508,000) compared to a profit of HKD 91,908,000 in the previous year, indicating a significant downturn[191]. - The net loss for the year was HKD (19,880,000), a stark contrast to the profit of HKD 83,193,000 reported in the prior year[191]. - Basic loss per share was HKD (1.02), a decline from earnings per share of HKD 4.25 in the previous year[191]. Property Sales and Rental Income - The company sold 28 residential units during the review period, a decrease from 44 units sold in the previous fiscal year[17]. - Rental income from the property "Yongsheng Plaza" decreased by approximately 48% year-on-year due to a reduction in available rental units[17]. - As of March 31, 2019, there were 66 unsold residential units remaining, of which 25 units were rented out[17]. - The company has established 34 sale agreements during the review period, with 28 transactions approved and registered in the government property sales system[17]. - The company is actively promoting its properties to improve market performance amid a challenging real estate environment[17]. Financial Position and Assets - As of March 31, 2019, the group held cash and bank balances totaling approximately HKD 262,000,000, representing about 76% of current assets[43]. - The group's capital structure is supported by capital and reserves amounting to HKD 1,500,000,000 as of March 31, 2019[44]. - The total assets as of March 31, 2019, were reported at HKD 100,000,000, reflecting a decrease from HKD 120,000,000 in the previous year[193]. - Total assets decreased from HKD 957,645,000 in 2018 to HKD 944,564,000 in 2019, a decline of approximately 1.1%[196]. - Current assets decreased from HKD 356,815,000 in 2018 to HKD 320,794,000 in 2019, a decline of about 10.1%[196]. - Cash and bank balances decreased from HKD 302,325,000 in 2018 to HKD 262,015,000 in 2019, a decrease of approximately 13.3%[196]. - The company reported a decrease in completed properties held for sale from HKD 73,442,000 in 2018 to HKD 60,523,000 in 2019, a decline of about 17.6%[196]. - The company’s total liabilities decreased from HKD 957,645,000 in 2018 to HKD 944,564,000 in 2019, a decrease of approximately 1.4%[196]. Corporate Governance - The company has adopted all provisions of the corporate governance code as its own governance code[108]. - The board consists of four executive directors, three independent non-executive directors, and one non-executive director[110]. - The attendance rate for board meetings was 75% for the chairman and 100% for the vice chairman and CEO[118]. - The company has established a board diversity policy to enhance governance and efficiency, considering various factors without discrimination[134]. - The independent non-executive directors have confirmed their independence according to the Hong Kong Stock Exchange Listing Rules[69]. - The company has established procedures for shareholders to request special meetings and propose resolutions at general meetings[163]. Risk Management and Internal Controls - The company emphasizes the importance of internal control and risk management, with the board responsible for the effectiveness of these systems[138]. - The company has established a formal risk management policy to address risks associated with its business operations[139]. - A three-year internal audit plan has been approved by the board, with annual reviews of risk management and internal control systems[152]. - No significant control deficiencies were identified in the internal control review conducted in 2019[153]. Future Strategies and Market Outlook - The company aims to explore investment opportunities in the competitive Guangdong property market despite not acquiring any land or properties during the review period[25]. - Future strategies include exploring new market expansions and potential mergers and acquisitions to enhance growth prospects[191]. - The company remains cautiously optimistic about future business performance and aims to enhance competitiveness and shareholder value[25]. Environmental and Social Responsibility - The group has implemented various environmental measures to minimize its impact, focusing on energy efficiency and carbon emission reduction[47]. - A report on environmental, social, and governance matters is expected to be published within three months following the annual report[48].