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，並明確表示概不會就因 本公佈全部或任何部分內容而產生或因倚賴該等內容而引致之任何損失承 擔任何責任。 China Fortune Holdings Limited 中 國 長 遠 控 股 有 限 公 司 * （於百慕達註冊成立之有限公司，以CFHLimited之名稱於香港進行業務） （股份代號：110） 截至二零二二年十二月三十一日止年度之年報之 補充公佈 茲提述中國長遠控股有限公司（「本公司」）截至二零二二年十二月三十一日 止年度之年報（「二零二二年年報」）。除另有所指外，本公佈所用詞彙與二 零二二年年報所界定者具有相同涵義。 除二零二二年年報「管理層討論與分析」一節所披露的資料外，董事會謹此 根據上市規則附錄16第32(4A)段就本集團於二零二二年十二月三十一日持 有的重大投資提供以下額外資料： 於廣州天平的重大投資的投資成本為人民幣2,000,001元。該投資為長期投 資。廣州天平的收益由自收購日期起至二零二一年十二月三十一日的約 ...

[Company Information](index=3&type=section&id=Company%20Information) This section outlines the company's fundamental information, including board members, committees, registered office, and auditors - This report provides basic company information for China Everbright Holdings Limited (Stock Code: 0110), including board members, committee compositions, registered office, principal bankers, and auditors[4](index=4&type=chunk)[5](index=5&type=chunk) [Management Discussion and Analysis](index=4&type=section&id=Review%20and%20Outlook) This section provides a comprehensive review of the group's financial performance, position, operations, and future outlook [Financial Performance Review](index=4&type=page&id=Financial%20Performance%20Review) Revenue grew 37.7% to **HKD 38.7 million** for H1 2023, with net loss attributable to owners narrowing to **HKD 5.3 million** due to effective cost control Key Financial Indicators for H1 2023 | Indicator | For the Six Months Ended June 30, 2023 (HKD millions) | For the Six Months Ended June 30, 2022 (HKD millions) | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | 38.7 | 28.1 | +37.7% | | Gross Profit | 0.2 | 0.055 | +263.6% | | Gross Margin | 0.5% | 0.2% | +0.3 percentage points | | Administrative Expenses | 8.9 | 13.6 | -34.5% | | Loss Attributable to Owners of the Company | 5.3 | 7.5 | Loss narrowed by 29.3% | | Basic Loss Per Share (HK cents) | 2.90 | 4.06 | Loss narrowed | - The group's revenue structure significantly changed, with Hong Kong market contribution increasing from **18.9%** to **89.7%**, while Shanghai market contribution decreased from **81.1%** to **10.3%**, reflecting supply chain diversification[6](index=6&type=chunk)[7](index=7&type=chunk) - Other income decreased by **HKD 1.5 million** year-on-year, primarily due to reduced database traffic monetization revenue from Beijing Daizhangmen's mobile application business[10](index=10&type=chunk) [Financial Position Review](index=6&type=page&id=Financial%20Position%20Review) As of June 30, 2023, the group's net current liabilities expanded to **HKD 22.8 million**, with increased trade and other receivables and payables, while cash and cash equivalents rose to **HKD 10.0 million** Balance Sheet Key Item Changes | Indicator | June 30, 2023 (HKD millions) | December 31, 2022 (HKD millions) | Change | | :--- | :--- | :--- | :--- | | Trade and Other Receivables | 11.2 | 1.3 | +9.9 | | Cash and Cash Equivalents | 10.0 | 6.2 | +3.8 | | Trade and Other Payables | 37.6 | 21.1 | +16.5 | | Net Current Liabilities | 22.8 | 15.5 | Net liabilities increased | | Current Ratio | 0.49x | 0.37x | Improved | - Other payables and accrued expenses increased by **HKD 7.9 million**, mainly due to approximately **HKD 7.3 million** in share subscription proceeds received at the end of the reporting period, which was completed on July 4, 2023[24](index=24&type=chunk) [Other Operating Information](index=8&type=page&id=Other%20Operating%20Information) During the reporting period, the group had no significant acquisitions, disposals, capital commitments, or contingent liabilities, employed 36 staff, and did not recommend an interim dividend - Post-reporting period, the company completed a share subscription on July 4, 2023, issuing **28,000,000 new shares** at **HKD 0.26 per share**, raising approximately **HKD 7.3 million** in cash[30](index=30&type=chunk) - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2023[32](index=32&type=chunk) [Operations Review](index=9&type=page&id=Operations%20Review) This section reviews the group's market environment and business progress, noting the slowdown in China's mobile phone market despite 5G growth, and the full impairment of the mining business [Market Overview](index=9&type=page&id=Market%20Overview) China, the world's largest mobile phone market, is saturated but experiencing rapid 5G economic development with increasing users and base stations, though trade conflicts and reduced consumer spending are slowing the market - China's 5G development is rapid, with **561 million 5G mobile users** by the end of 2022, accounting for approximately **33.3%** of total mobile users, and is expected to have **26 5G base stations per 10,000 people** by the end of 2025[34](index=34&type=chunk) - Despite 5G opportunities, the overall Chinese mobile phone market is slowing and contracting due to international trade conflicts and economic uncertainties[35](index=35&type=chunk) [Business Review](index=10&type=page&id=Business%20Review) The group's mobile phone business faces intense market competition and US-China trade uncertainties, while the mining business, fully impaired in 2017 due to expired licenses, no longer impacts the group's financials - Mobile Phone Business: Market competition is intensifying, with customer focus shifting to shopping experience and integrated services, favoring large mobile telecom chain stores; the group plans to achieve growth by diversifying trade markets, products, and distribution channels[37](index=37&type=chunk) - Mining Business: The mining license expired years ago and could not be renewed; a full impairment provision of **HKD 174.6 million** for mining rights and **HKD 9.0 million** for related plant and equipment was made in 2017 as a precautionary measure[41](index=41&type=chunk) [Prospects and Outlook](index=11&type=page&id=Prospects%20and%20Outlook) The group anticipates an economic turnaround in China in 2023, leveraging 5G for new opportunities in big data, mobile OS, and mobile internet, while expanding into Hong Kong and ASEAN markets and promoting the "Daizhangmen" eco-bag machine business - The group believes 5G communication network technology will drive strong equipment demand, with China expected to lead the 5G market, and will closely monitor the economic environment to seize opportunities in Hong Kong and ASEAN trade markets[44](index=44&type=chunk) - The group will intensify efforts to promote the "Daizhangmen" business, which acquires offline traffic through free distribution of eco-bags and monetizes database traffic through advertising, a revenue model management believes holds significant commercial value and competitiveness[47](index=47&type=chunk)[48](index=48&type=chunk) - To address future challenges, the group will maintain a sound financial position and lean operations, while closely monitoring new business opportunities to create long-term shareholder value[48](index=48&type=chunk) [Other Information](index=14&type=section&id=Other%20Information) This section covers additional disclosures including directors' and shareholders' interests, share option schemes, and corporate governance practices [Directors' and Shareholders' Interests](index=14&type=page&id=Directors%27%20and%20Shareholders%27%20Interests) This section discloses the shareholdings of directors, chief executives, and substantial shareholders as of June 30, 2023, noting Chairman Mr. Liu Xiaoying's **63.40%** interest and no listed securities transactions during the period Major Shareholder Holdings (as of June 30, 2023) | Shareholder Name | Capacity | Number of Shares Held | Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Liu Xiaoying | Discretionary Trust and Beneficial Owner | 116,345,481 | 63.40% | | Mr. Li Wei | Held by Controlled Entity | 37,660,002 | 20.52% | [Share Option Scheme](index=15&type=page&id=Share%20Option%20Scheme) The company adopted a share option scheme on May 28, 2014, valid until May 28, 2024, with no outstanding share options as of June 30, 2023 - As of June 30, 2023, no share options granted under the share option scheme were outstanding[53](index=53&type=chunk) [Corporate Governance](index=16&type=page&id=Corporate%20Governance) The company complied with the Corporate Governance Code during the reporting period, with two deviations: the Chairman and CEO roles are combined, and the Chairman is not subject to rotation, which the Board deems beneficial for business strategy execution - The company deviated from the Corporate Governance Code: the roles of Chairman and Chief Executive Officer are not separated, both held by Mr. Liu Xiaoying; and Chairman Mr. Liu Xiaoying is not subject to rotation, which the Board believes is beneficial for the group's development at this stage[59](index=59&type=chunk) - The Audit Committee, comprising three independent non-executive directors, has reviewed the group's unaudited interim financial statements for the six months ended June 30, 2023[60](index=60&type=chunk) [Condensed Consolidated Financial Statements](index=18&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the group's condensed consolidated financial statements, including the statement of profit or loss, comprehensive income, financial position, changes in equity, and cash flows [Condensed Consolidated Statement of Profit or Loss](index=18&type=page&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2023, the group recorded revenue of **HKD 38,703 thousand**, a 37.7% year-on-year increase, with loss for the period narrowing to **HKD 7,441 thousand** due to effective cost control Condensed Consolidated Statement of Profit or Loss Summary | Item (HKD thousands) | For the Six Months Ended June 30, 2023 | For the Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Revenue | 38,703 | 28,110 | | Gross Profit | 190 | 55 | | Loss Before Income Tax | (7,441) | (11,167) | | Loss for the Period | (7,441) | (11,167) | | Loss Attributable to Owners of the Company | (5,332) | (7,454) | [Condensed Consolidated Statement of Comprehensive Income](index=19&type=page&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) During the reporting period, total comprehensive expense for the period, including exchange differences, amounted to **HKD 7,477 thousand**, with **HKD 6,442 thousand** attributable to owners of the company Condensed Consolidated Statement of Comprehensive Income Summary | Item (HKD thousands) | For the Six Months Ended June 30, 2023 | For the Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Loss for the Period | (7,441) | (11,167) | | Exchange Differences | (36) | (487) | | Total Comprehensive Expense for the Period | (7,477) | (11,654) | | Total Comprehensive Expense Attributable to Owners of the Company | (6,442) | (9,777) | [Condensed Consolidated Statement of Financial Position](index=20&type=page&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2023, the group's net current liabilities expanded to **HKD 22,837 thousand**, and equity attributable to owners of the company decreased to **HKD 29,246 thousand** from the end of 2022 Condensed Consolidated Statement of Financial Position Summary | Item (HKD thousands) | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Non-current Assets | 6,301 | 6,579 | | Current Assets | 22,007 | 9,168 | | Current Liabilities | 44,844 | 24,631 | | Net Current Liabilities | (22,837) | (15,463) | | Equity Attributable to Owners of the Company | 29,246 | 35,688 | [Condensed Consolidated Statement of Changes in Equity](index=22&type=page&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) As of June 30, 2023, total equity attributable to owners of the company decreased from **HKD 35,688 thousand** at the beginning of the year to **HKD 29,246 thousand**, primarily due to the loss for the period and a reduction in exchange reserves - Equity attributable to owners of the company decreased from **HKD 35,688 thousand** as of January 1, 2023, to **HKD 29,246 thousand** as of June 30, 2023, due to total comprehensive expense for the period of **HKD 6,442 thousand**[71](index=71&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=23&type=page&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) During the reporting period, the group's cash and cash equivalents increased by **HKD 3,909 thousand**, with operating activities shifting from net cash outflow to inflow, and financing activities recording a net cash inflow from funds raised Condensed Consolidated Statement of Cash Flows Summary | Item (HKD thousands) | For the Six Months Ended June 30, 2023 | For the Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Net Cash From/(Used in) Operating Activities | 1,116 | (10,574) | | Net Cash From Investing Activities | 34 | 56 | | Net Cash From/(Used in) Financing Activities | 2,759 | (4,332) | | Net Increase/(Decrease) in Cash and Cash Equivalents | 3,909 | (14,850) | | Cash and Cash Equivalents at End of Period | 9,969 | 15,975 | [Notes to the Condensed Consolidated Interim Financial Statements](index=24&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) This section provides detailed notes to the condensed consolidated interim financial statements, covering basis of preparation, segment information, and key account details [Basis of Preparation and Going Concern Assessment](index=24&type=page&id=Basis%20of%20Preparation%20and%20Going%20Concern%20Assessment) These financial statements are prepared on a going concern basis, despite significant uncertainties regarding the group's losses and net current liabilities, which management addresses through financial support commitments, share subscriptions, and cost control measures - Significant uncertainties exist: As of June 30, 2023, the group recorded a loss attributable to owners of approximately **HKD 5,332 thousand**, and current liabilities exceeded current assets by approximately **HKD 22,837 thousand**, which may cast significant doubt on the group's ability to continue as a going concern[77](index=77&type=chunk) - Management's response plan includes: obtaining a commitment letter from controlling shareholder Mr. Liu Xiaoying to provide sufficient funds; completing a share subscription of approximately **HKD 7.3 million**; seeking other financing; considering further share issuance; and implementing cost control measures[82](index=82&type=chunk) [Segment Information and Revenue](index=26&type=page&id=Segment%20Information%20and%20Revenue) The group has two reportable segments: mobile phone business and mining business, with all revenue of **HKD 38,703 thousand** derived from the mobile phone business, primarily from Hong Kong, while the mining segment recorded a loss but no revenue Segment Revenue and Loss (For the Six Months Ended June 30, 2023) | Segment | Revenue (HKD thousands) | Segment Loss (HKD thousands) | | :--- | :--- | :--- | | Mobile Phone Business | 38,703 | (2,982) | | Mining Business | – | (516) | | **Total** | **38,703** | **(3,498)** | Revenue by Geographical Market | Geographical Market | Revenue (HKD thousands) | | :--- | :--- | | China | 4,008 | | Hong Kong | 34,695 | | **Total** | **38,703** | [Notes to Major Accounts](index=31&type=page&id=Notes%20to%20Major%20Accounts) These notes detail various financial figures, including no income tax expense, a basic loss per share of **HKD 2.90 cents**, net trade receivables of **HKD 9.84 million** (all within 30 days), trade payables of **HKD 9.815 million**, no interim dividend declared, and fair value measurements for financial instruments primarily involving Level 3 non-listed equity and fund investments - Basic loss per share was **HKD 2.90 cents**, calculated based on a loss attributable to owners of the company of **HKD 5,332,000** and a weighted average of **183,555,888** issued shares[109](index=109&type=chunk) - At the end of the reporting period, net trade receivables amounted to **HKD 9.84 million**, all aged within 0 to 30 days; trade payables were **HKD 9.815 million**, primarily aged within 0 to 90 days[112](index=112&type=chunk)[113](index=113&type=chunk) - Total financial assets at fair value through profit or loss amounted to **HKD 2.614 million**, of which **HKD 2.055 million** in unlisted equity and fund investments were classified as Level 3 fair value measurements[121](index=121&type=chunk)

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 會就因本公佈全部或任何部分內容而產生或因倚賴該等內容而引致之 任何損失承擔任何責任。 China Fortune Holdings Limited 中國長遠控股有限公司* （於百慕達註冊成立之有限公司，以CFH Limited之名稱於香港進行業務） （股份代號：110） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 之 中 期 業 績 公 佈 中 期 業 績 中 國 長 遠 控 股 有 限 公 司（「本 公 司」）董 事 會（「董 事 會」）謹 此 提 呈 本 公 司 及 其 附 屬 公 司（統 稱「本 集 團」）截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 之 未 經審核簡明綜合中期業績，連同比較數字載列如下。該等簡明綜合中期 業績未經審核，惟已由本公司審核委員會（「審核委員會」）審閱。 ...

Company Overview - China Fortune Holdings Limited primarily sells and distributes mobile phones and digital products in the People's Republic of China (PRC) since its establishment in 1992[4]. - The Group acquired Zhuhai Reminda Telecom Equipment Company Limited in 2007, expanding its telecommunications equipment business[5]. - The Group's corporate culture emphasizes a blend of Western and Eastern management philosophies, aiming to become one of the largest wireless communication and data product service providers in the region[7]. - The Group has transitioned from being a subsidiary to an associate for Beijing Feiying, reflecting a strategic shift in its business model[6]. - The Group's business structure includes diversified operations in telecommunications, resources, and investments, showcasing its multi-faceted approach to growth[18]. - The Group was first listed on the GEM Board of The Stock Exchange of Hong Kong Limited in 2000 and successfully transferred to the Main Board in 2004, highlighting its growth trajectory[4]. - The Group's strong shareholder background and professional management team support its operational strategies and market positioning[4]. Financial Performance - The Group achieved a record annual sale of 2.1 million sets of mobile phones and a record net profit exceeding HK$60 million[21]. - For the year ended December 31, 2022, the Group's revenue increased by approximately 2% to HK$80.6 million compared to HK$79.2 million in 2021[57][71]. - The Group reported a loss of HK$20.4 million for 2022, compared to a loss of HK$14.3 million in 2021[57][60]. - Revenue from mobile phone trading business was HK$80.6 million in 2022, with contributions from Shanghai and Hong Kong at HK$41.1 million (51.0%) and HK$39.5 million (49.0%) respectively[72]. - Other income increased by HK$1.4 million or 134.1% to approximately HK$2.4 million in 2022, primarily due to HK$1.6 million from database traffic monetisation[81]. - The Group's gross profit margin was 0.4% in 2022, up from 0.2% in 2021, attributed to increased competition and consumer spending pullback[79][80]. - The Group reported a net loss of approximately HK$14.4 million for the year ended 31 December 2022, compared to a net loss of approximately HK$9.9 million in the previous year, representing an increase in losses of 45.5%[101]. - Basic loss per share increased to HK$7.83 cents in the current year from HK$5.65 cents in the previous year, reflecting a deterioration in per-share performance[102]. - Gross profit for the year ended 31 December 2022 was HK$300,000, with a gross margin of 0.4%, compared to a gross profit of HK$100,000 and a margin of 0.2% in the previous year, indicating a slight improvement in profitability despite ongoing challenges[84]. - Administrative expenses rose by HK$5.5 million or 36.0% to approximately HK$20.8 million for the year ended 31 December 2022, mainly driven by increased salaries and promotion expenses related to business development projects[91]. Market Trends and Challenges - The international political and economic environment in 2022 was complicated, but China's economy gradually emerged from the trough due to effective pandemic control policies[50]. - The mobile phone market in China is expected to continue declining due to international trade conflicts and economic uncertainties, although this decline may be partially offset by advancements in 5G and 6G technologies[148]. - The shift in customer focus from mobile phone functionality to shopping experience is expected to benefit large mobile telecommunication chain stores[56]. - The Group's performance was impacted by the COVID-19 pandemic and global economic recession, affecting consumer spending and mobile phone retail market[74][77]. - Economic activities in China continue to be affected by the COVID-19 pandemic, leading to concerns about the mobile phone market and lower average selling prices impacting gross profit[178][180]. Strategic Initiatives - In 2021, the Group entered the eco-friendly bag automatic bag taking machine market and database traffic monetization from mobile applications, indicating diversification in its product offerings[6]. - The Group aims to diversify its business by exploring opportunities in eco-friendly products and database traffic monetisation[63][64]. - The Group plans to strengthen relationships with leading manufacturers and customers to seek further cooperation opportunities in the mobile phone industry[58][61]. - The Group will continue to seek market opportunities and enhance revenue sources to generate satisfactory returns for shareholders in 2023[65][68]. - The Group plans to diversify trading markets, products, and distribution channels in 2023 following successful market expansion in Hong Kong in 2022[182]. - The company intends to diversify its trading markets, products, and distribution channels to continue growth in the mobile phone business[153]. Investments and Acquisitions - A HK$160 million syndicated loan was successfully arranged[37]. - The acquisition of 51% shareholdings of Synergy Pacific was completed[38]. - The Group obtained nationwide distributorship for Samsung mobile phones[23]. - The Group successfully obtained the Fulfillment Distributorship for all Nokia Stores in the PRC[24]. - Fortune Shanghai increased its share capital from US$6 million to US$25 million[33]. - A US$16 million syndicated loan was successfully arranged[32]. - The Group tapped into the used mobile phones and mobile app market in the PRC[30]. Future Outlook - The Group expects a significant turnaround in the Chinese economy in 2023 as COVID-19 restrictions are loosened and economic activities resume[169][172]. - The demand for 5G-related equipment remains robust, with expectations that China will lead the market in 5G volume due to recent developments in the mobile phone supply chain[176][179]. - The Group anticipates that 5G technology will enhance customer experiences across various sectors, including smart homes and retail[177][180]. - The company remains optimistic about the long-term development of the environmental products and services sector in the PRC[192]. - The company plans to continue pursuing new opportunities and strategic cooperation to ensure stable growth and performance in the future[192]. Environmental Initiatives - The "Daizhangmen" business integrates IoT terminals to distribute environmentally friendly bags for free, aiming to monetize database traffic through offline advertising[183]. - In 2020, the PRC Environmental Protection Bureau announced a policy to ban non-degradable plastic bags by the end of 2025, reflecting the government's commitment to plastic pollution control[184]. - Since June 2022, the database traffic monetization business has rebounded and is growing steadily, with plans for national investment promotion in the second half of 2023[190]. - In 2023, the company aims to deepen market integration with various environmental friendly bag brand agents and manufacturers, enhancing competitiveness through a free product revenue model[191]. Financial Position - Cash and cash equivalents decreased significantly to approximately HK$6.2 million as at 31 December 2022 from approximately HK$31.5 million as at 31 December 2021, indicating a liquidity challenge[113]. - Trade and other receivables decreased by HK$6.5 million or 83.7% to approximately HK$1.3 million as at 31 December 2022, primarily due to the settlement of trade receivables[105]. - Trade and other payables decreased by approximately HK$5.3 million or 20.1% to approximately HK$21.1 million as at 31 December 2022, reflecting improved cash management[114]. - The Group's net current liabilities as of December 31, 2022, were approximately HK$15.5 million, compared to net current assets of HK$4.0 million as of December 31, 2021[120][124]. - The current ratio decreased to 0.37 times as of December 31, 2022, from 1.11 times as of December 31, 2021[120][124]. - The total number of employees decreased from 43 as of December 31, 2021, to 38 as of December 31, 2022[130][135]. - The Board did not recommend the payment of any dividend for the year, consistent with the previous year[139].

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 會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。 China Fortune Holdings Limited 中國長遠控股有限公司* （於百慕達註冊成立之有限公司，以CFH Limited之名稱於香港進行業務） （股份代號：110） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 之 全 年 業 績 公 佈 中 國 長 遠 控 股 有 限 公 司（「本 公 司」）董 事 會（「董 事 會」）宣 佈 本 公 司 及 其 附 屬 公 司（統 稱 為「本 集 團」）截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 的 綜 合全年業績，連同比較數字如下： ...

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 會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。 China Fortune Holdings Limited 中國長遠控股有限公司* （於百慕達註冊成立之有限公司，以CFH Limited之名稱於香港進行業務） （股份代號：110） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 之 全 年 業 績 公 佈 中 國 長 遠 控 股 有 限 公 司（「本 公 司」）董 事 會（「董 事 會」）宣 佈 本 公 司 及 其 附 屬 公 司（統 稱 為「本 集 團」）截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 的 綜 合全年業績，連同比較數字如下： ...

Financial Performance - The total revenue for the six months ended June 30, 2022, was HKD 28,100,000, a decrease of approximately HKD 25,600,000 or 47.7% compared to HKD 53,700,000 for the same period in 2021[9]. - Revenue from mobile phone and related accessories trade was HKD 28,100,000, with contributions from Shanghai and Hong Kong being HKD 22,800,000 and HKD 5,300,000, respectively, accounting for 81.1% and 18.9% of total revenue[9]. - The company's revenue for the six months ended June 30, 2022, was HKD 28,110,000, a decrease of 47.8% compared to HKD 53,706,000 for the same period in 2021[82]. - The gross profit for the same period was HKD 55,000, with a gross margin of 0.2%[82]. - The company reported a loss before tax of HKD 11,167,000, compared to a loss of HKD 4,791,000 in the previous year, indicating a significant increase in losses[82]. - The total comprehensive loss for the period was HKD 11,654,000, compared to HKD 5,084,000 in the previous year, representing an increase of 129.1%[83]. - For the six months ended June 30, 2022, the mobile phone segment reported revenue of HKD 28,110,000, a decrease of 47.8% compared to HKD 53,706,000 for the same period in 2021[117]. - The total reported segment loss for the mobile phone and mining segments was HKD 7,376,000, compared to a loss of HKD 1,183,000 in the previous year, indicating a significant increase in losses[103]. Expenses and Losses - The net loss attributable to the owners of the company for the six months ended June 30, 2022, was HKD 7,500,000, compared to a net loss of HKD 3,500,000 for the same period in 2021[19]. - Basic loss per share for the period was HKD 0.0406, compared to HKD 0.0210 for the same period last year[20]. - Administrative expenses increased by 150% to HKD 14,000,000, primarily due to the new mobile application business in China, which incurred approximately HKD 8,400,000 in administrative expenses[15]. - Administrative expenses rose to HKD 14,028,000, up from HKD 5,637,000 in the previous year, reflecting a 148.5% increase[82]. - The company reported a net cash outflow from operating activities of HKD 10,574,000 for the six months ended June 30, 2022, compared to HKD 4,542,000 in the same period last year[92]. Assets and Liabilities - Cash and cash equivalents totaled HKD 16,000,000 as of June 30, 2022, down from HKD 31,500,000 as of December 31, 2021[24]. - As of June 30, 2022, the group's net asset value attributable to shareholders was HKD 44,100,000, down from HKD 53,900,000 as of December 31, 2021, representing a decrease of approximately 18.5%[28]. - The group's current liabilities net amount was approximately HKD 8,000,000 as of June 30, 2022, compared to HKD 4,000,000 as of December 31, 2021, indicating a significant increase in current liabilities[28]. - The current ratio decreased to 0.75 times as of June 30, 2022, from 1.11 times as of December 31, 2021, reflecting a decline in liquidity[28]. - The company reported a total of HKD 3,047,000 in financial assets measured at fair value as of June 30, 2022, compared to HKD 3,294,000 at the end of 2021, indicating a decline of approximately 7%[136]. - The company's total liabilities decreased to HKD 31,979,000 from HKD 36,168,000, a decline of 11.9%[86]. Market Conditions and Outlook - The mobile phone market in China is experiencing a slowdown, with expectations of continued decline in the coming years, although partially offset by the development of 5G and 6G technologies[39]. - The group anticipates continued challenges in the consumer and retail sectors due to the dual impact of the US-China trade war and the COVID-19 pandemic, leading to an uncertain outlook for the coming years[52]. - By the end of 2021, the number of mobile phone users in China reached approximately 1.63 billion, with significant growth in 5G users and network users, indicating substantial market opportunities[55]. Business Developments - The group has recognized a full impairment provision of HKD 174.6 million for mining rights and HKD 9 million for related plants and equipment due to the inability to clarify the status of mining license renewal with the Ministry of Natural Resources[47]. - The group did not make any significant investments or acquisitions during the six months ended June 30, 2022[32][31]. - The company plans to enhance its promotion of the "Bag Master" business, which integrates IoT technology to provide free delivery of eco-friendly bags and aims to monetize offline traffic through advertising partnerships[56]. - The company has installed eco-friendly bag dispensing machines in collaboration with various hospitals, supermarkets, and other venues, aiming to monetize database traffic and related services[58]. - The database monetization business has shown a rebound and steady growth since June 2022, indicating positive market trends[58]. - The company aims to integrate with multiple eco-friendly bag brands and manufacturers, enhancing its competitive edge through a free product revenue model[59]. - The company is optimistic about the development of the eco-friendly products and services sector in China, indicating a positive long-term outlook[59]. Shareholder Information - As of June 30, 2022, the company’s major shareholder, Mr. Liu Xiaoying, holds 63.40% of the issued shares, reflecting significant insider ownership[64]. - The average number of shares issued increased to 183,555,888 as of June 30, 2022, from 167,719,781 shares in the previous year, reflecting an increase of about 9%[122]. - The board of directors did not recommend any interim dividend for the six months ended June 30, 2022, consistent with the previous year[34]. - The board did not declare an interim dividend for the six months ended June 30, 2022, and June 30, 2021[142].

Financial Performance - The company recorded a revenue of HKD 3,125,000 from the sale of 51% equity in its subsidiary Chongqing Yuanjia during the year ended December 31, 2020[7]. - The company successfully settled debts amounting to HKD 8,960,000 through a tripartite settlement agreement in April 2020, resulting in full repayment of the debt[7]. - The financial statements for the year ended December 31, 2021, will include comparative figures from the previous year, allowing for better assessment of performance[8]. Auditor's Opinion - The auditor's report for the year ended December 31, 2021, included a qualified opinion due to insufficient audit evidence regarding loans and debts[6]. - The company aims to eliminate the qualified opinion from its financial statements for the year ending December 31, 2022, provided no other issues arise[10]. - The management and audit committee have acknowledged the reasons behind the auditor's qualified opinion and are working towards addressing the concerns raised[9]. - The company has taken steps to resolve issues related to loans and debts that were highlighted in the previous auditor's report[7]. - The company is committed to providing additional information regarding the auditor's qualified opinion to shareholders and potential investors[5]. Governance and Compliance - The board of directors includes three executive directors and three independent non-executive directors, ensuring a diverse governance structure[12]. - The company is focused on improving its financial reporting and compliance to enhance investor confidence and transparency[10].

Company Overview - China Fortune Holdings Limited primarily sells and distributes mobile phones and digital products in the People's Republic of China (PRC) and was established in 1992[6]. - The Group acquired Zhuhai Reminda Telecom Equipment Company Limited in 2007, marking its entry into the telecommunications equipment market[7]. - The Group's corporate culture emphasizes a blend of Western and Eastern management philosophies, aiming to become one of the largest wireless communication and data product service providers in the region[9]. - The Group transitioned from accounting Beijing Feiying as a subsidiary to an associate in 2020, reflecting a strategic shift in its business focus[8]. - The Group's business structure includes diversified development through investments, mergers, and acquisitions in telecommunications and resource sectors[21]. - The Group was first listed on the GEM Board of the Stock Exchange of Hong Kong Limited on February 16, 2000, and transferred to the Main Board on January 26, 2004[6]. Financial Performance - The Group's financial summary and performance metrics are detailed in the annual report, providing insights into revenue and profit trends[5]. - The Group achieved a record annual sale of 2.1 million sets of mobile phones and a record net profit exceeding HK$60 million[24]. - For the year ended December 31, 2021, the Group's revenue decreased by approximately 2% to HK$79.2 million compared to HK$80.9 million in 2020[60][72]. - The loss for the year amounted to HK$14.3 million, an increase from a loss of HK$4.6 million in 2020[60][63]. - The Group's gross profit for the year ended 31 December 2021 was HK$0.1 million, with a gross profit margin of 0.2%, compared to HK$0.4 million and 0.5% for the year ended 31 December 2020[79]. - Other income increased by HK$0.2 million or 29.0% to approximately HK$1.0 million for the year ended 31 December 2021, driven by database traffic monetization from mobile applications[81]. - The net gain for the year ended 31 December 2021 was HK$0.2 million, a significant decrease from HK$11.0 million in 2020, primarily due to the absence of gains from deemed disposal and disposal of subsidiaries[82]. - The Group reported a loss attributable to owners of approximately HK$9.9 million for the year ended 31 December 2021, compared to a profit of approximately HK$0.2 million in the previous year[100]. - Basic loss per share was HK$5.65 cents in 2021, compared to basic earnings per share of HK$0.23 cents in 2020[101]. Business Developments - In 2021, the Group expanded into eco-friendly bag automatic bag taking machines and database traffic monetization from a mobile application business called Beijing Daizhangmen[8]. - The nationwide distributorship of Samsung mobile phones was newly obtained[26]. - The Fulfillment Distributorship for all Nokia Stores in the PRC was successfully obtained[27]. - The Group aims to support the plastic ban in China and enhance shareholder returns through new business initiatives[65][68]. - The Group plans to strengthen relationships with leading manufacturers and customers to explore further cooperation opportunities[61][64]. - The Group is actively exploring opportunities in eco-friendly bag automatic machines and database traffic monetization to align with environmental policies in China[191][194]. Market Conditions - The outlook for the mobile phone industry in China remains challenging, but there is significant potential for development[61][64]. - The mobile phone market in China is expected to continue declining due to international trade conflicts and the impact of COVID-19, although this decline may be partially offset by 5G and 6G developments[152]. - The company’s mobile phone business faces challenges due to intensified competition and uncertainties from the US-China trade war and COVID-19[154]. - Customers are shifting focus from mobile phone functionality to shopping experience, requiring integrated service platforms in the 5G era[155]. - The ongoing COVID-19 pandemic has led to a pessimistic outlook for the wholesale and retail markets, potentially lowering the Group's gross profit due to customers placing orders at lower average selling prices[190][193]. Legal and Regulatory Issues - The Group has been involved in mining operations since 2010, but faced regulatory challenges with expired mining permits[156]. - An impairment of HK$174.6 million was recognized for the mining rights and HK$9.0 million for related plant and equipment due to the inability to renew the mining operating permit[164]. - The Group obtained an arbitral award of HK$19.8 million against the Chongqing supplier, but enforcement was unsuccessful due to the supplier having no assets[172]. - A judgment of approximately HK$12.7 million was entered against the Guangzhou supplier, but the supplier had no remaining assets for enforcement proceedings[177]. - Management will continue to explore all possible means to recover the prepayments made to suppliers[179]. Future Outlook and Strategies - The Group will closely monitor changes in the economic environment and proactively seize opportunities in Hong Kong and ASEAN trading markets amid increasing global economic uncertainties[185][187]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[199]. - New product launches are expected to contribute an additional HKD 200 million in revenue, with a focus on enhancing user experience[199]. - The company is investing in new technology development, allocating HKD 50 million for R&D initiatives in the upcoming year[199]. - Market expansion plans include entering two new provinces in China, aiming for a 5% market share within the first year[199]. - The company is considering strategic acquisitions to enhance its service offerings, with a budget of HKD 300 million earmarked for potential deals[199]. - A new marketing strategy is being implemented, targeting a 15% increase in brand awareness over the next year[199]. - The company aims to improve operational efficiency, targeting a reduction in costs by 8% through process optimization[199].

Financial Performance - The total revenue for the six months ended June 30, 2021, was HKD 53.7 million, an increase of approximately HKD 32.3 million or 150.8% compared to HKD 21.4 million for the same period in 2020[6]. - Revenue from mobile phone trading contributed HKD 20.2 million, accounting for 94.3% of total revenue, while revenue from promoting mobile applications was HKD 1.2 million, representing 5.7% of total revenue[6]. - Gross profit decreased by 92.6% to approximately HKD 54,000, with a gross profit margin dropping from 3.4% to 0.1%[7]. - The net loss attributable to the owners of the company for the six months ended June 30, 2021, was HKD 3.5 million, compared to a loss of HKD 2.9 million for the same period in 2020[14]. - Basic loss per share for the reporting period was HKD 0.021, compared to HKD 0.0298 for the same period last year[15]. - The company reported a loss before tax of HKD 4,791,000 for the six months ended June 30, 2021, an improvement of 14.6% compared to a loss of HKD 5,615,000 in the prior year[57]. - Total comprehensive loss for the period was HKD 5,084,000, compared to a loss of HKD 2,815,000 in the same period last year, reflecting ongoing financial challenges[58]. Cash Flow and Liquidity - As of June 30, 2021, the total cash and cash equivalents amounted to HKD 37,400,000, an increase from HKD 30,100,000 as of December 31, 2020, with additional capital raised of approximately HKD 15,600,000 from a rights issue[19]. - Cash and cash equivalents increased to HKD 37,384,000 as of June 30, 2021, up from HKD 30,122,000 at the end of 2020, indicating improved liquidity[59]. - The net cash used in operating activities was HKD (4,542,000), compared to HKD (3,952,000) for the same period in 2020, indicating a decline in operational cash flow[63]. - The net cash generated from financing activities increased significantly to HKD 11,684,000 in 2021 from HKD 5,841,000 in 2020, reflecting improved financing conditions[63]. Expenses and Cost Management - Administrative expenses decreased by 33.2% to HKD 5.6 million from HKD 8.4 million in the previous year[11]. - Financing costs decreased to HKD 200,000 from HKD 500,000 in the previous year[12]. - The company reported a decrease in employee costs, totaling HKD 3,292,000 in 2021 compared to HKD 5,105,000 in 2020[79]. Shareholder Information - The board of directors did not recommend any interim dividend for the six months ended June 30, 2021, consistent with the previous year[27]. - The company raised approximately HKD 48,600,000 through a rights issue at a subscription price of HKD 0.53 per share, issuing 91,777,944 shares, completed on February 10, 2021[42]. - As of June 30, 2021, Mr. Liu Xiaoying held 116,345,481 shares, representing 63.40% of the company's issued share capital[45]. - The company has not issued any stock options under the stock option plan since its adoption on May 28, 2014, and no options were granted as of June 30, 2021[47]. Market and Industry Insights - The mobile phone market in China is experiencing a slowdown due to international trade conflicts and the COVID-19 pandemic, with expectations of continued decline in the coming years, although partially offset by 5G development[30]. - By the end of 2020, China had built approximately 1,000,000 5G base stations, with around 160,000,000 users utilizing applications based on 5G networks[29]. - The telecommunications industry in China saw fixed asset investment increase by over 15% year-on-year in 2020, with about one-third of total investment allocated to 5G technology[29]. - China's mobile phone market remains strong, with approximately 1.6 billion mobile phone users, reflecting significant opportunities in mobile applications and commerce[39]. - The company expects strong demand for 5G equipment as the technology matures, with an upward revision of short-term 5G forecasts[40]. Governance and Compliance - The company has established an audit committee in compliance with listing rules, enhancing governance and oversight[54]. - There were no reported violations of the securities trading code by employees during the reporting period, indicating adherence to compliance standards[55]. - The company complied with the corporate governance code, with Mr. Liu Xiaoying serving as both Chairman and CEO, which is a deviation from the code's recommendation[52]. Asset and Liability Management - Trade receivables and other receivables decreased by 68.7% to approximately HKD 1 million from HKD 3.3 million as of December 31, 2020[18]. - Trade payables and other payables decreased by 4.3% from approximately HKD 22,000,000 as of December 31, 2020, to approximately HKD 21,100,000 as of June 30, 2021, primarily due to a reduction in accrued expenses[20]. - The company's total assets less current liabilities stood at HKD 16,591,000, a significant increase from HKD 3,124,000 at the end of 2020, showing better financial health[59]. - The total liabilities for the mobile phone segment were HKD (6,044,000) and for the mining segment were HKD (15,492,000), resulting in total segment liabilities of HKD (21,536,000)[70]. Impairments and Legal Matters - The mining rights were fully impaired at HKD 174.6 million, along with related plant and equipment impairment of HKD 9 million, due to the inability to renew mining licenses[33]. - A total of HKD 33.7 million in prepayments to mobile phone suppliers was recognized as an impairment loss of HKD 24.9 million as of December 31, 2017[35]. - The arbitration ruling resulted in a recovery of HKD 10.2 million from a supplier, with a total claim of HKD 19.8 million against the Chongqing supplier[36]. - The Guangzhou supplier's total outstanding liabilities were approximately HKD 455 million, leading to a court-ordered liquidation[37].