[Corporate Information](index=2&type=section&id=Corporate%20Information) [Corporate Basic Information](index=2&type=section&id=Corporate%20Information) This chapter provides the company's basic information, including board and committee members, registered office, principal place of business, share registrar, principal bankers, auditor, and company secretary - The company made several adjustments to its board and committee members during the reporting period, including the resignation of executive directors Huang Zhihe, Wang Xin, Cheng Weidong on April 1, 2023, and the appointment of non-executive director Shi Xuguang and independent non-executive director Lin Junxian on June 28, 2023[3](index=3&type=chunk) [Management Discussion and Analysis](index=4&type=section&id=Management%20Discussion%20and%20Analysis) [Results Overview](index=4&type=section&id=RESULTS) For the six months ended June 30, 2023, the Group's total revenue increased by 17.1% to approximately HKD 414 million, with net profit growing 10% to approximately HKD 51.24 million 2023 H1 Key Financial Indicators | Indicator | Amount (HKD) | YoY Change | | :--- | :--- | :--- | | **Total Revenue** | Approx. 414,276,000 | +17.1% | | **Net Profit** | Approx. 51,237,000 | +10% | Revenue Growth Contribution by Key Business Segments | Business Segment | YoY Increase (HKD) | | :--- | :--- | | Elderly Care and Wellness Business | Approx. 21,843,000 | | Civil Explosives Business | Approx. 15,816,000 | | Financial Leasing Business | Approx. 12,147,000 | | New Energy Industrial Park | Approx. 7,668,000 | - Despite the absence of a non-recurring fair value gain of approximately **HKD 41.84 million** from extended equity repurchase contracts in the prior period, overall profit still grew due to improved operating performance across various business segments[7](index=7&type=chunk)[9](index=9&type=chunk) [Business Review](index=5&type=section&id=BUSINESS%20REVIEW) This chapter reviews the Group's key business segments' operating performance in H1 2023, highlighting significant revenue growth and reduced losses in elderly care, steady growth in financial leasing, and increased profit in civil explosives [Elderly Care and Wellness Business](index=5&type=section&id=ELDERLY%20CARE%20AND%20WELLNESS%20BUSINESS) Elderly care and wellness business revenue increased by 42.1% to HKD 73.7 million, with operating loss significantly narrowing by 69.7% to HKD 4.68 million Elderly Care and Wellness Business Financial Performance | Indicator | Amount (HKD) | YoY Change | | :--- | :--- | :--- | | **Operating Revenue** | Approx. 73,695,000 | +42.1% | | **Operating Loss** | Approx. 4,682,000 | -69.7% | - As of June 30, 2023, the total number of institutional elderly care beds reached **2,200** with an occupancy rate of **79%**; rehabilitation and nursing beds totaled **300** with a utilization rate of **78%**, an **8% increase** from the end of last year[11](index=11&type=chunk)[13](index=13&type=chunk) [Financial Leasing Business](index=6&type=section&id=FINANCIAL%20LEASING%20BUSINESS) The financial leasing business, focusing on environmental protection industries, achieved steady growth with revenue up 7.6% to HKD 173 million and operating profit up 17.2% to HKD 70.93 million Financial Leasing Business Financial Performance | Indicator | Amount (HKD) | YoY Change | | :--- | :--- | :--- | | **Operating Revenue** | Approx. 173,031,000 | +7.6% | | **Operating Profit** | Approx. 70,925,000 | +17.2% | [Big Data Business](index=7&type=section&id=BIG%20DATA%20BUSINESS) Big data business revenue slightly increased by 1.5% to HKD 4.91 million, while operating loss significantly narrowed by 64.6% to HKD 0.31 million due to strict cost control Big Data Business Financial Performance | Indicator | Amount (HKD) | YoY Change | | :--- | :--- | :--- | | **Operating Revenue** | Approx. 4,909,000 | +1.5% | | **Operating Loss** | Approx. 308,000 | -64.6% | - The company expanded its business in manufacturing lean digital transformation services by acquiring a **51% equity stake** in Guangdong Xinruizhi'an Technology Co., Ltd. to generate synergistic effects[21](index=21&type=chunk)[22](index=22&type=chunk) [Civil Explosives Business](index=8&type=section&id=CIVIL%20EXPLOSIVES%20BUSINESS) Despite a sluggish market, civil explosives business revenue grew 18.3% to HKD 102.2 million and operating profit increased 29.8% to HKD 10.63 million by extending into blasting operations Civil Explosives Business Financial Performance | Indicator | Amount (HKD) | YoY Change | | :--- | :--- | :--- | | **Operating Revenue** | Approx. 102,236,000 | +18.3% | | **Operating Profit** | Approx. 10,627,000 | +29.8% | [Investments in Properties and Industrial Parks](index=9&type=section&id=INVESTMENTS%20IN%20PROPERTIES%20AND%20INDUSTRIAL%20PARKS) Revenue from industrial parks and property development increased by 19% to HKD 48.05 million, but operating profit decreased by 9.3% to HKD 22.01 million due to reduced subsidies Industrial Park and Property Development Business Financial Performance | Indicator | Amount (HKD) | YoY Change | | :--- | :--- | :--- | | **Operating Revenue** | Approx. 48,047,000 | +19% | | **Operating Profit** | Approx. 22,009,000 | -9.3% | - Other property rental income decreased by **11.1%** to approximately **HKD 4.97 million**, primarily due to RMB depreciation and Hong Kong property vacancies[29](index=29&type=chunk)[31](index=31&type=chunk) [Hotel Business](index=10&type=section&id=HOTEL%20BUSINESS) Benefiting from tourism market recovery, hotel business revenue surged 95.2% to HKD 7.39 million, and operating loss significantly narrowed by 67.7% to HKD 1.48 million Hotel Business Financial Performance | Indicator | 2023 H1 | YoY Change | | :--- | :--- | :--- | | **Occupancy Rate** | Approx. 63.93% | +52.32% | | **Operating Revenue** | Approx. 7,392,000 HKD | +95.2% | | **Operating Loss** | Approx. 1,479,000 HKD | -67.7% | [Profit from Investments in Associates](index=10&type=section&id=PROFIT%20FROM%20INVESTMENTS%20IN%20ASSOCIATES) Associate company Changhai Power's operating performance significantly improved, contributing approximately HKD 27.26 million in profit to the Group, a substantial increase of about 2.3 times year-on-year - Associate company Changhai Power contributed profit of approximately **HKD 27,261,000**, a substantial increase of about **2.3 times** compared to the same period last year[35](index=35&type=chunk)[37](index=37&type=chunk) [Financial Position and Analysis](index=11&type=section&id=FINANCIAL%20POSITION%20AND%20ANALYSIS) As of June 30, 2023, the Group's total assets increased to HKD 9.62 billion, total liabilities to HKD 7.64 billion, and the gearing ratio slightly rose to 79.5% Financial Position Summary (As of June 30, 2023) | Indicator | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | Approx. 9.62 billion HKD | Approx. 9.07 billion HKD | | **Total Liabilities** | Approx. 7.64 billion HKD | Approx. 6.98 billion HKD | | **Gearing Ratio** | 79.5% | 76.9% | | **Net Assets** | Approx. 1.97 billion HKD | Approx. 2.09 billion HKD | | **Net Current Assets** | Approx. 0.26 billion HKD | Approx. 0.05 billion HKD | | **Current Ratio** | Approx. 1.11x | Approx. 1.02x | | **Bank Balances and Cash** | Approx. 1.30 billion HKD | Approx. 0.999 billion HKD | - The Group's total pledged assets amounted to approximately **HKD 4.61 billion**, primarily financial lease receivables, used as collateral for bank borrowings[41](index=41&type=chunk)[43](index=43&type=chunk) - Due to the depreciation of RMB against HKD, the Group recorded an exchange loss of approximately **HKD 3.09 million** during the reporting period[46](index=46&type=chunk)[47](index=47&type=chunk) [Outlook](index=13&type=section&id=OUTLOOK) Facing an unstable global economic environment, the Group will continue to steadily develop its core businesses and actively seek investment and M&A opportunities in new growth areas - Elderly Care and Wellness Business: Plans to expand light-asset entrusted operation models, increase operational beds, and introduce strategic investors[50](index=50&type=chunk)[52](index=52&type=chunk) - Big Data Business: Aims to become a "first-class industrial internet full-chain service provider in the Greater Bay Area" and will actively pursue M&A integration[55](index=55&type=chunk)[57](index=57&type=chunk) - Financial Leasing Business: Aims to become a leading domestic specialized environmental protection financial leasing company and strive for an **AA credit rating**[56](index=56&type=chunk)[58](index=58&type=chunk) - Civil Explosives Business: Will strive to complete the construction and cooperation of mixed explosive production capacity to significantly improve future performance[60](index=60&type=chunk)[62](index=62&type=chunk) - New Growth Points: The Group will actively seek investment and M&A opportunities in biomedicine and high-tech fields to achieve leapfrog business development[62](index=62&type=chunk)[63](index=63&type=chunk) [Disclosure of Interests and Other Information](index=16&type=section&id=Disclosure%20of%20Interests%20and%20Other%20Information) [Interests Disclosure](index=16&type=section&id=Interests%20Disclosure) This chapter discloses the shareholdings of directors and substantial shareholders, including Chairman Mr. He Xiangming's beneficial ownership and Glories Holdings (HK) Limited's significant stake - Director Mr. He Xiangming holds **1,441,000** ordinary shares of the company, representing approximately **0.08%** of the total share capital[67](index=67&type=chunk) - Substantial shareholder Glories Holdings (HK) Limited is deemed to hold **1,441,439,842** shares/relevant share interests, representing **84.18%** of the total share capital[71](index=71&type=chunk) [Other Information](index=18&type=section&id=Other%20Information) This chapter covers information on share option schemes, employees, dividend policy, share repurchases, corporate governance, and connected transactions - The company's share option scheme expired on April 26, 2023, with no options granted during the period[76](index=76&type=chunk)[81](index=81&type=chunk) - The Board resolved not to declare an interim dividend for the six months ended June 30, 2023[79](index=79&type=chunk)[84](index=84&type=chunk) - As of the end of the reporting period, the Group had approximately **1,289 employees**, an increase from **1,189** at the end of 2022[78](index=78&type=chunk)[83](index=83&type=chunk) - During the reporting period, the company complied with all provisions of the Corporate Governance Code, and there were no disclosable connected transactions[87](index=87&type=chunk)[90](index=90&type=chunk)[95](index=95&type=chunk) [Additional Information on the Group's Financial Leasing Business](index=21&type=section&id=Additional%20Information%20on%20the%20Group%27s%20Financial%20Leasing%20Business) This chapter details the financial leasing business model, target customers, and risk management strategies, with a focus on environmental protection industries - The financial leasing business primarily targets customers in environmental protection industries, such as sewage treatment and waste incineration, which contributed **59%** of the segment's total revenue as of June 30, 2023[98](index=98&type=chunk)[100](index=100&type=chunk) - The company established a tiered credit risk assessment policy covering seven stages: project initiation, investigation, review and decision-making, implementation, disbursement, post-lease supervision, and risk early warning[105](index=105&type=chunk)[107](index=107&type=chunk) - The company implements strict internal controls and continuous monitoring measures, including setting credit limits, conducting credit approvals, and performing monthly off-site and quarterly on-site inspections of leased assets[110](index=110&type=chunk)[113](index=113&type=chunk)[115](index=115&type=chunk) [Condensed Consolidated Financial Statements](index=26&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=26&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2023, the Group's revenue was HKD 414.3 million, gross profit HKD 157.8 million, and profit for the period HKD 51.24 million 2023 H1 Statement of Profit or Loss Summary | Indicator (HKD million) | 2023 H1 | 2022 H1 | | :--- | :--- | :--- | | **Revenue** | 414.3 | 353.7 | | **Gross Profit** | 157.8 | 132.4 | | **Profit Before Tax** | 71.2 | 70.8 | | **Profit for the Period** | 51.2 | 46.6 | | **Profit Attributable to Owners of the Company** | 8.9 | 12.9 | | **Basic Earnings Per Share (HK cents)** | 0.52 | 0.75 | [Condensed Consolidated Statement of Financial Position](index=28&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2023, the Group's total assets were HKD 9.62 billion, total liabilities HKD 7.64 billion, and total equity HKD 1.97 billion Statement of Financial Position Summary (HKD million) | Indicator | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Non-current Assets** | 6,962.2 | 6,802.1 | | **Current Assets** | 2,655.5 | 2,267.5 | | **Total Assets** | 9,617.7 | 9,069.6 | | **Current Liabilities** | 2,393.0 | 2,221.2 | | **Non-current Liabilities** | 5,250.5 | 4,755.6 | | **Total Liabilities** | 7,643.5 | 6,976.8 | | **Total Equity** | 1,974.2 | 2,092.8 | [Condensed Consolidated Statement of Cash Flows](index=32&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) In H1 2023, the Group reported a net cash outflow from operating activities of HKD 373.6 million, net cash outflow from investing activities of HKD 262.4 million, and net cash inflow from financing activities of HKD 923.9 million Cash Flow Statement Summary (HKD million) | Indicator | 2023 H1 | 2022 H1 | | :--- | :--- | :--- | | **Net Cash Outflow from Operating Activities** | (373.6) | (273.6) | | **Net Cash (Outflow)/Inflow from Investing Activities** | (262.4) | 202.7 | | **Net Cash Inflow from Financing Activities** | 923.9 | 812.7 | | **Net Increase in Cash and Bank Balances** | 287.9 | 741.9 | [Notes to the Condensed Consolidated Financial Statements](index=34&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) The financial statement notes provide detailed explanations and supplementary information for various items, offering crucial context for understanding the company's financial position and operating results [Note 5: SEGMENT INFORMATION](index=39&type=section&id=Note%205%3A%20SEGMENT%20INFORMATION) Financial leasing is the Group's largest revenue and profit source, contributing HKD 173 million in revenue and HKD 70.93 million in segment results in H1 2023 2023 H1 Segment Revenue and Results (HKD million) | Segment | Revenue | Results | | :--- | :--- | :--- | | **Big Data Business** | 4.9 | (0.3) | | **Civil Explosives Business** | 102.2 | 10.6 | | **Financial Leasing** | 173.0 | 70.9 | | **Hotel Business** | 7.4 | (1.5) | | **Industrial Park and Property Development** | 48.0 | 22.0 | | **Property Investment** | 5.0 | 1.7 | | **Elderly Care and Wellness Business** | 73.7 | (4.7) | | **Total** | 414.3 | 98.8 | Segment Assets (HKD million) | Segment | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Financial Leasing** | 4,301.9 | 4,002.2 | | **Industrial Park and Property Development** | 2,325.7 | 2,403.9 | | **Civil Explosives Business** | 383.3 | 417.4 | | **Property Investment** | 275.4 | 285.6 | | **Elderly Care and Wellness Business** | 206.8 | 113.4 | | **Hotel Business** | 113.9 | 119.0 | | **Big Data Business** | 27.4 | 25.6 | [Note 18: BORROWINGS](index=65&type=section&id=Note%2018%3A%20BORROWINGS) As of June 30, 2023, the Group's total borrowings increased to HKD 5.84 billion, primarily consisting of HKD 4.74 billion in bank loans, mostly secured Borrowings Composition (HKD million) | Type | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Asset-backed Securities | 488.2 | 339.4 | | Bank Borrowings | 4,741.6 | 4,003.2 | | Loans from Direct Holding Company | 136.0 | 136.0 | | Other Bonds | 324.0 | 339.4 | | Other Loans | 119.2 | 243.6 | | **Total** | **5,836.9** | **5,090.8** | [Note 22: PLEDGE OF ASSETS](index=78&type=section&id=Note%2022%3A%20PLEDGE%20OF%20ASSETS) To secure bank loans and general banking facilities, the Group pledged assets with a total carrying value of approximately HKD 4.61 billion as of June 30, 2023 Carrying Value of Pledged Assets (HKD million) | Asset Type | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Investment Properties | 347.8 | 363.4 | | Property, Plant and Equipment | 383.6 | 402.7 | | Pledged Financial Lease Receivables | 3,651.6 | 2,782.6 | | Pledged Paid-up Capital of Non-wholly Owned Subsidiaries | 219.2 | 229.6 | | Pledged Bank Deposits | 7.0 | 25.0 | [Note 27: EVENT AFTER REPORTING PERIOD](index=83&type=section&id=Note%2027%3A%20EVENT%20AFTER%20REPORTING%20PERIOD) After the reporting period, the Group's non-wholly owned subsidiary Green Gold Leasing entered into new financial leasing agreements totaling approximately RMB 200 million (HKD 216 million) - From July to August 2023, Green Gold Leasing, a non-wholly owned subsidiary, entered into five new financial leasing agreements with a total consideration of **RMB 200 million** (approximately **HKD 216 million**)[337](index=337&type=chunk)[341](index=341&type=chunk)[343](index=343&type=chunk)[347](index=347&type=chunk) - On July 10, 2023, Funeng Power, another non-wholly owned subsidiary, signed an EPC agreement for a photovoltaic project with a consideration of approximately **RMB 33.46 million**[338](index=338&type=chunk)

Financial Performance - For the year ended December 31, 2022, the Group recorded total income of approximately HK$246,786,000, representing a substantial increase of 47.4% compared to the previous year[10]. - The Group's net profit for the year was approximately HK$42,824,000, marking a significant increase of HK$31,937,000 compared to the previous year[14]. - The financial leasing segment recorded an operating profit of HK$127,447,000, representing a year-on-year increase of 49.6%[51]. - The operating profit of the group increased by 49.6% to approximately HK$127,447,000[52]. - The civil explosives segment recorded an operating income increase of 38.5% to approximately HK$195,138,000, with an operating profit of approximately HK$11,882,000, reversing the previous year's loss[67]. - The hotel segment's operating income decreased by 19.8% to approximately HK$9,730,000, with an operating loss widening by 16.9% to approximately HK$7,507,000 compared to the same period last year[70]. Business Segments Performance - The elderly care and wellness business saw an increase in operating income by approximately HK$44,704,000 year-on-year due to the acquisition of several public elderly care institutions[10]. - The financial leasing business contributed an additional operating income of approximately HK$114,341,000, reflecting continuous development[10]. - Rental income from the Danzao Industry Park increased by approximately HK$51,517,000, significantly enhancing the operating income from property and industrial park investments[10]. - The civil explosives business achieved a year-on-year income increase of about HK$54,291,000 following the completion of technological transformation[10]. - The elderly care and wellness business recorded a decrease in operating profits of approximately HK$17,507,000 due to COVID-19 impacts and rising operational costs[14]. - The profit from financing leasing increased by approximately HK$42,260,000 compared to last year[15]. - Operating income from the elderly care and wellness business rose to approximately HK$122,458,000, a 57.5% increase year-on-year[17]. - The industrial park's operating income rose by approximately 1.7 times to approximately HK$82,301,000, while operating profit increased by 6.9 times to approximately HK$30,536,000[54]. Investments and Projects - The company plans to renovate a building at Taoyuan Rehabilitation Hospital with a total GFA of 18,359 square meters, expected to be completed in the first half of 2023[24]. - The elderly apartment project construction started in September 2022 and is expected to be completed within about 18 months[24]. - The Group plans to develop the new energy industrial park in Danzao Town, with ongoing preparations for the third and fourth phases of the project[91]. - The Group is actively seeking investment and merger opportunities in biopharmaceutical and high-tech enterprises to achieve leapfrog development[92]. Financial Management and Risk Assessment - The Group's finance costs increased by approximately HK$24,382,000 due to higher interest expenses aligned with business development needs[14]. - Interest expenses increased by approximately HK$24,382,000 due to increased financing needs amid rising interest rates in the US[15]. - The Group employs a hierarchical approach to credit risk assessment, ensuring that potential financial leasing projects align with its risk appetite[35]. - Monthly off-site inspections and quarterly on-site inspections are conducted to monitor lessee performance and asset conditions, with adjustments made based on risk levels identified[46]. - The credit limit is determined based on the value of leased assets, the current price of pledged assets, and the lessee's cash flow capabilities[41]. - Risk signals are categorized into three levels: general, medium, and high, with specific action plans developed for high-risk projects[50]. - The Group actively expands financing channels, including equity and debt financing, to enhance the financial strength of its leasing business[36]. Corporate Governance - The company emphasizes corporate governance and has adhered to all provisions of the Corporate Governance Code as of December 31, 2022[98]. - The Board consists of nine directors, including six executive directors and three independent non-executive directors, ensuring a balance of experience and qualifications[103]. - The company has established clear terms of reference for its committees, defining their powers and responsibilities[102]. - The company has a rotation policy for directors, ensuring that one-third of the directors retire at each annual general meeting[108]. - The company continuously reviews its corporate governance arrangements to meet its operational needs[117]. - The Board convened seven meetings in 2022, with all directors achieving a 100% attendance rate[119]. Employee and Diversity Policies - As of December 31, 2022, the company has a total of 1,189 employees, comprising approximately 676 females and 513 males, resulting in a female-to-male ratio of 1:0.93[187][191]. - The company considers various factors, including gender, age, and professional experience, in its hiring practices to promote workforce diversity[187][191]. - The nomination committee will continue to review the need for achieving higher gender diversity in the Group annually[182]. Strategic Focus and Future Plans - The Group aims to enhance its elderly care and wellness business, focusing on a three-tier system comprising institutions, communities, and households, in response to the national strategy addressing population aging[85]. - The Group plans to expand its cooperation with other towns and sub-districts in Nanhai District, aiming to establish a strong presence in Foshan and the Guangdong-Hong Kong-Macao Greater Bay Area[85]. - The financial leasing business will focus on becoming a leading domestic professional company in environmental protection, targeting municipal environmental protection projects and green energy initiatives[88]. - The Group aims to create a first-class industrial Internet platform service provider in the Guangdong-Hong Kong-Macao Greater Bay Area[88].

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的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何部分內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 CHINA INVESTMENTS HOLDINGS LIMITED * 中國興業控股有限公司 （於百慕達註冊成立之有限公司） 132 （股份代號： ） 截至二零二二年十二月三十一日止年度業績 經審核綜合年度業績 China Investments Holdings Limited 中國興業控股有限公司（「本公司」）董事會（「董事」或「董事 會」）宣佈，本公司及其附屬公司（「本集團」）截至二零二二年十二月三十一日止年度之經審核 綜合年度業績如下： 綜合損益及其他全面收益表 截至二零二二年十二月三十一日止 二零二二年 二零二一年 附註 港幣千元 港幣千元 持續經營之業務 3 767,632 520,846 收入 ...

Financial Performance - For the six months ended June 30, 2022, the Group recorded total income of approximately HK$353,747,000, representing a substantial increase of 72.4% compared to the previous year[12]. - The Group achieved a net profit of approximately HK$46,575,000, reversing a net loss of HK$13,093,000 from the same period last year[15]. - Gross profit for the same period was HK$132,439,000, compared to HK$78,013,000 in 2021, indicating a gross profit margin improvement[128]. - Profit before taxation was HK$70,762,000, a significant increase from a loss of HK$842,000 in the prior year[128]. - The profit for the period from continuing operations was HK$46,579,000, compared to a loss of HK$13,096,000 in the previous year, marking a turnaround in performance[128]. - Non-controlling interests contributed HK$33,659,000 to the profit for the period, compared to HK$2,378,000 in the previous year, reflecting improved performance from subsidiaries[131]. Business Segments Performance - The elderly care and wellness business saw an increase in operating income by approximately HK$43,965,000 due to the operation of Taoyuan Welfare Center and Taoyuan Rehabilitation Hospital[12]. - The financial leasing business contributed an increase in operating income of approximately HK$68,351,000[12]. - The civil explosives business turned a loss into a profit, contributing an additional net profit of HK$18,007,000[15]. - The hotel business experienced a significant decline in operating income by 37.2% to HK$3,786,000, with an operating loss widening by 42.4% to HK$4,586,000[40]. - The big data business segment recorded an operating income of HK$4,838,000, a substantial decrease of 75.6% from the same period last year, resulting in an operating loss of HK$869,000[33]. Elderly Care and Wellness Initiatives - The Group aims to enhance its elderly care and wellness business, focusing on a three-tier system comprising institutions, communities, and households, in response to the national strategy addressing population aging[54]. - The Group plans to establish a strong presence in Foshan and the Guangdong-Hong Kong-Macao Greater Bay Area, leveraging support from the Nanhai District Government for its elderly care initiatives[54]. - The elderly care business faced an operating loss of approximately HK$15,476,000, which is an increase of 160% compared to the same period last year[30]. - The average occupancy rate for Taoyuan Welfare Center was approximately 95%, slightly down from 98% at the end of last year[29]. Financial Position and Assets - As of June 30, 2022, the Group's total assets were HK$8,907,427,000, an increase from HK$8,299,701,000 as of December 31, 2021, while total liabilities rose to HK$6,728,528,000 from HK$6,107,245,000[44]. - The Group's net current assets improved to HK$323,398,000 from net current liabilities of HK$48,709,000 as of December 31, 2021, resulting in a current ratio of approximately 1.16 times[44]. - The Group had bank balance and cash of HK$1,286,723,000 as of June 30, 2022, significantly up from HK$526,837,000 at the end of 2021, indicating sufficient capital for future operations[44]. - The Group's equity per share attributable to owners decreased to HK65.00 cents from HK69.45 cents as of December 31, 2021[44]. Financing and Investment Strategies - The company is focusing on diversifying financing channels, including equity and debt financing, to enhance the financial strength of its leasing business[19]. - The Group intends to promote the issuance of Asset Backed Security (ABS) and diversify financing channels to strengthen its financial leasing operations[56]. - The Group's financing channels include bank financing and debt financing, with a focus on meeting capital needs for its financial leasing business[106]. - The Group will actively seek investment and acquisition opportunities in biopharmaceutical and high-tech enterprises to achieve significant business growth[60]. Risk Management and Compliance - The company has established a risk warning process that categorizes risk signals into three levels: general, medium, and high risk, to enhance risk management[120]. - The company plans to adjust internal quality ratings and credit arrangements in response to identified risks, including potential legal actions if necessary[121]. - The Group employs a tiered approach to credit risk assessment, including initial project risk assessments and ongoing monitoring of project risks[108]. - The audit committee reviewed the unaudited consolidated financial statements for the six months ended June 30, 2022, focusing on accounting principles and risk management[83]. Employee and Corporate Governance - The total number of employees in the Group is approximately 990, an increase from 946 as of December 31, 2021[78]. - The Company has complied with all provisions of the Corporate Governance Code as set out in the Listing Rules for the six months ended June 30, 2022[80]. - The remuneration of employees is determined based on performance and responsibility, with education allowances provided[79].

Financial Performance - The consolidated statement of profit or loss shows a total revenue of $500 million, representing a 15% increase compared to the previous year[1] - The company projects a revenue growth of 10% for the next fiscal year, targeting $550 million in total revenue[1] - New product launches are expected to contribute an additional $50 million in revenue, with a focus on innovative technology solutions[1] - Total revenue from continuing operations increased to HK$227,291,000 for the year ended 31 December 2021, representing a significant increase of 77.4% year-on-year[12] - The Group turned a net loss of HK$66,036,000 last year into a net profit of approximately HK$10,887,000 for the year[16] - Other income, including government grants for the Danzao Industrial Park project, increased by 60.8% year-on-year, contributing approximately HK$35,377,000 to profit[12] User Growth and Market Expansion - User data indicates a growth in active users by 20%, reaching a total of 2 million users[1] - The company plans to expand its market presence in Southeast Asia, aiming for a 25% increase in market share within the next two years[1] - A strategic acquisition of a local competitor is anticipated to enhance operational capabilities and increase revenue by 30%[1] Operational Efficiency and Cost Management - The company has implemented cost-cutting measures that are expected to reduce operational expenses by 5%, saving approximately $10 million annually[1] - Operating income increased by approximately HK$54,563,000 due to the consolidation of Tiannuo Investments Co., Limited following its acquisition in September 2020[12] - Operating income from the financial leasing business increased by approximately HK$57,542,000, reflecting a growth of 36.3% to approximately HK$216,144,000[17] Research and Development - Research and development expenditures have increased by 12%, totaling $30 million, to support new technology initiatives[1] Environmental, Social, and Governance (ESG) Initiatives - Environmental, social, and governance (ESG) initiatives are being prioritized, with a budget allocation of $5 million for sustainability projects[1] - The Group is committed to environmental sustainability, implementing effective measures for resource efficiency, energy saving, and waste reduction[184] - The Group has formulated environmental management policies across different segments to manage resource usage effectively[184] Dividend and Shareholder Returns - The board of directors has approved a dividend payout of $0.10 per share, reflecting a 20% increase from the previous year[1] Corporate Governance - The Company has adopted all code provisions under the Corporate Governance Code as its own code on corporate governance[60] - The Board currently comprises nine directors, including six executive directors and three independent non-executive directors[63] - The Company aims to enhance corporate governance practices and ensure effective operation of the Board[85] - The Board is responsible for developing and reviewing corporate governance policies and practices[74] Risk Management - The Group's risk management and internal control systems are designed to manage risks rather than eliminate them, ensuring reasonable assurance against significant misstatements or losses[138] - The Group prioritizes identified risks based on standard criteria and establishes risk mitigation plans for significant risks[143] Future Business Development - The Group plans to enhance its wellness elderly care business, aiming to establish a first-class elderly care industry investment group in the Greater Bay Area[53] - The Group is actively pursuing opportunities in the big data industry, leveraging the new smart city construction plan in Nanhai District to ensure rapid business growth[57] - The Group is exploring investment and M&A opportunities in biopharmaceutical and high-tech enterprises to achieve leapfrog development and deliver good returns to shareholders[56] Financial Position - As of December 31, 2021, the Group's total assets were HK$8,299,701,000, an increase of 36.0% from HK$6,105,371,000 in 2020[48] - Total liabilities increased to HK$6,107,245,000, up 48.4% from HK$4,117,039,000 in 2020, resulting in a gearing ratio of 73.6% compared to 67.4% in the previous year[48] - The Group's net assets reached HK$2,192,456,000, a rise of 10.3% from HK$1,988,332,000 in 2020[48] Shareholder Engagement - The Group encourages shareholder participation in general meetings and provides timely information through notices and voting forms[154] - The Company has established procedures for shareholders to propose matters for consideration at general meetings, requiring a minimum of 5% of paid-up capital[166]

[Corporate Information](index=2&type=section&id=Corporate%20Information) This section provides essential corporate details of China Xingye Holdings Limited, including key personnel, registered offices, and professional advisors [Corporate Information](index=2&type=section&id=Corporate%20Information) This chapter provides fundamental corporate information for China Xingye Holdings Limited (Stock Code: 132), covering board members, registered offices, and key professional contacts - The Chairman and Managing Director is Mr He Xiangming[5](index=5&type=chunk) - The company's principal place of business is located in Tsim Sha Tsui, Kowloon, Hong Kong[5](index=5&type=chunk) - The company's auditor is Heng Jian Certified Public Accountants Limited[7](index=7&type=chunk) [Management Discussion and Analysis](index=4&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview and analysis of the company's financial performance, business segments, financial position, and future outlook [Results & Business Review](index=4&type=section&id=RESULTS%20%26%20BUSINESS%20REVIEW) For the six months ended June 30, 2021, the Group's total revenue significantly increased by 114.6% to approximately HKD 205 million, while net loss narrowed by 27% to approximately HKD 13.09 million, despite strong revenue growth Performance Summary | Item | H1 2021 | H1 2020 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | approx HKD 205,207,000 | approx HKD 95,610,000 | +114.6% | | **Net Loss** | approx HKD 13,093,000 | approx HKD 17,939,000 | -27.0% | - Key drivers for revenue growth include the consolidation of Tiannuo Company, contributing approximately **HKD 68.4 million**, growth in financial leasing business adding approximately **HKD 16.35 million**, and the new wellness elderly care business from Taoyuan Welfare Center and Rehabilitation Hospital, generating approximately **HKD 7.72 million**[10](index=10&type=chunk)[11](index=11&type=chunk) - Reasons for the limited improvement in net loss include reduced profit contribution from financial leasing due to increased competition and higher expected credit loss provisions, a loss of approximately **HKD 9.82 million** from Tiannuo Company due to technical upgrades and asset disposal, increased operating loss of approximately **HKD 6.85 million** from property investment due to the Dazao Industrial Park project being in its initial investment phase, and increased operating loss from the wellness elderly care business due to new project startup costs[13](index=13&type=chunk)[14](index=14&type=chunk) [Business Segment Analysis](index=6&type=section&id=BUSINESS%20SEGMENT%20ANALYSIS) This chapter details the Group's operating performance across key business segments in H1 2021, highlighting revenue growth in financial leasing, property investment, big data, and wellness elderly care, alongside varying profitability and initial investment phase losses [Financial Leasing Business](index=6&type=section&id=FINANCIAL%20LEASING%20BUSINESS) Despite increased market competition and pandemic impacts, financial leasing operating revenue grew by 21.5% to HKD 92.53 million, but operating profit declined by 16.1% to HKD 35.56 million due to lower rates and a 4.4-fold increase in expected credit loss provisions Financial Leasing Performance | Item | H1 2021 | Year-on-Year Change | | :--- | :--- | :--- | | **Operating Revenue** | approx HKD 92,533,000 | +21.5% | | **Operating Profit** | approx HKD 35,560,000 | -16.1% | - The decline in operating profit was primarily due to proactive rate reductions amidst intense market competition and a significant **4.4-fold increase** in expected credit loss provisions, amounting to approximately **HKD 4.93 million**[17](index=17&type=chunk)[18](index=18&type=chunk) [Investments in Properties and Industrial Parks](index=7&type=section&id=INVESTMENTS%20IN%20PROPERTIES%20AND%20INDUSTRIAL%20PARKS) Property investment total rental income increased by 36.6% to HKD 5.63 million, partly due to reduced rent relief compared to the prior year, while the partially completed Foshan Danzao New Energy Industrial Park generated approximately HKD 4.93 million in operating revenue - The occupancy rate of Zhongkong Building increased to **93.94%**, with rental income rising by **39.3%** to **HKD 5.22 million**[20](index=20&type=chunk)[21](index=21&type=chunk) - Phase I of Danzao New Energy Industrial Park has approximately **180,000 square meters** of leasable area, with about **73,000 square meters** delivered by June 30, contributing approximately **HKD 4.93 million** in operating revenue to the Group[24](index=24&type=chunk)[26](index=26&type=chunk) [Big Data Business](index=8&type=section&id=BIG%20DATA%20BUSINESS) Big data business demonstrated strong performance, with operating revenue increasing by 59.6% to HKD 19.79 million and operating profit rising by 70.8% to HKD 1.78 million, as the Group continues to expand into industrial internet, smart healthcare, and smart energy Big Data Performance | Item | H1 2021 | Year-on-Year Change | | :--- | :--- | :--- | | **Operating Revenue** | approx HKD 19,794,000 | +59.6% | | **Operating Profit** | approx HKD 1,780,000 | +70.8% | [Wellness Elderly Care Business](index=9&type=section&id=WELLNESS%20ELDERLY%20CARE%20BUSINESS) Wellness elderly care business revenue significantly increased by 45.4 times to HKD 7.89 million following the takeover of Taoyuan Welfare Center and Rehabilitation Hospital, but operating loss expanded by 1.4 times to HKD 4.26 million due to initial investment in new ventures Wellness Elderly Care Performance | Item | H1 2021 | Year-on-Year Change | | :--- | :--- | :--- | | **Operating Revenue** | approx HKD 7,887,000 | +45.4 times | | **Operating Loss** | approx HKD 4,260,000 | +1.4 times | [Hotel Business](index=10&type=section&id=HOTEL%20BUSINESS) Hotel business showed recovery, with operating revenue increasing by 1.2 times to HKD 6.03 million and operating loss narrowing by 32.5% to HKD 3.22 million, driven by improved average occupancy rate and average room rate Hotel Performance | Item | H1 2021 | Year-on-Year Change | | :--- | :--- | :--- | | **Operating Revenue** | approx HKD 6,030,000 | +1.2 times | | **Operating Loss** | approx HKD 3,221,000 | -32.5% | | **Average Occupancy Rate** | 44.05% | +25.59 percentage points | [Civil Explosives Business](index=10&type=section&id=CIVIL%20EXPLOSIVES%20BUSINESS) Tiannuo Company, acquired in September 2020, recorded a loss of approximately HKD 9.82 million due to technical upgrades, production line suspensions, and one-off asset disposal losses, with expected significant performance improvement post-renovation - Newly acquired Tiannuo (civil explosives business) recorded a loss of approximately **HKD 9,818,000** due to technical upgrades and asset disposal[34](index=34&type=chunk)[36](index=36&type=chunk) [Profit from Investments in Associates](index=10&type=section&id=PROFIT%20FROM%20INVESTMENTS%20IN%20ASSOCIATES) Associate Nanhai Changhai Power Generation Co Ltd contributed HKD 31.59 million in profit to the Group, an 11.2% year-on-year increase, as significant increases in steam sales volume and unit price offset rising raw coal costs - Associate Changhai Power Generation contributed approximately **HKD 31,590,000** in profit, representing an **11.2%** year-on-year increase[35](index=35&type=chunk)[37](index=37&type=chunk) [Financial Position and Analysis](index=11&type=section&id=FINANCIAL%20POSITION%20AND%20ANALYSIS) As of June 30, 2021, the Group's total assets were HKD 6.91 billion, total liabilities HKD 4.93 billion, with the gearing ratio increasing to 71.3%, and despite net current liabilities of HKD 225 million, the Board considers liquidity positive due to specific loan terms, while facing RMB exchange rate risk Financial Position Summary | Item | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Total Assets** | HKD 6,910,411,000 | HKD 6,105,371,000 | | **Total Liabilities** | HKD 4,927,955,000 | HKD 4,117,039,000 | | **Gearing Ratio** | 71.3% | 67.4% | | **Net Current Liabilities** | HKD 224,872,000 | HKD 66,332,000 | | **Bank Balances and Cash** | HKD 667,438,000 | HKD 798,263,000 | - The Board believes the Group's liquidity position remains positive despite net current liabilities, as approximately **HKD 688 million** of borrowings with 'repayable on demand' clauses are not expected to be fully repaid within one year under normal circumstances[39](index=39&type=chunk) - The Group faces exchange rate risk as its primary income and costs are RMB-denominated, holding substantial RMB monetary assets; a **5%** fluctuation in RMB against HKD is estimated to impact annual profit by approximately **HKD 8.17 million**[42](index=42&type=chunk) [Outlook](index=13&type=section&id=OUTLOOK) The Group plans to focus on five core business segments: industrial park/material development and investment, finance, technology, wellness elderly care, and civil explosives, aiming to expand business areas and deliver stable shareholder returns through strategic initiatives like accelerating industrial park development, specializing in green financial leasing, driving profit with big data, establishing 'Taoyuan' as an industry benchmark, and completing Tiannuo's technical upgrades - The Group's future development will focus on five core segments: industrial park/material development and investment, finance, technology, wellness elderly care, and civil explosives[44](index=44&type=chunk) - Key strategic initiatives include: - **Industrial Parks**: Rapidly advance the construction and tenant recruitment for Danzao New Energy Industrial Park to become a primary profit source - **Finance**: Maintain specialization in green and environmental financial leasing to build core competitiveness - **Technology**: Develop big data industrial projects to create market-leading products and drive future profit growth - **Wellness Elderly Care**: Develop an 'integrated medical and elderly care' model, establishing the 'Taoyuan' brand as an industry benchmark - **Civil Explosives**: Expedite Tiannuo's technical upgrades and cost reduction to provide a solid profit base for the Group[44](index=44&type=chunk)[47](index=47&type=chunk) [Disclosure of Interests and Other Information](index=15&type=section&id=Disclosure%20of%20Interests%20and%20Other%20Information) This section covers disclosures regarding directors' and substantial shareholders' interests, employee information, dividend policy, and corporate governance practices [Directors' and Substantial Shareholders' Interests](index=15&type=section&id=Directors'%20and%20Substantial%20Shareholders'%20Interests) This chapter discloses shareholdings of directors and substantial shareholders, noting Chairman Mr He Xiangming's 0.08% stake and Guangdong Nanhai Holdings Investment Co Ltd's 84.18% controlling interest, with no share options granted under the adopted scheme - Chairman Mr He Xiangming beneficially owns **1,441,000** shares of the Company, representing approximately **0.08%** of the total share capital[51](index=51&type=chunk) - Substantial shareholder Guangdong Nanhai Holdings Investment Co Ltd, through its wholly-owned subsidiary Prize Rich Inc and convertible notes, holds an aggregate interest in **1,441,439,842** shares of the Company, representing approximately **84.18%** of the total share capital[59](index=59&type=chunk)[61](index=61&type=chunk) [Employees, Dividend and Corporate Governance](index=17&type=section&id=Employees%2C%20Dividend%20and%20Corporate%20Governance) As of June 30, 2021, the Group's total employees increased to approximately 954, and the Board resolved not to declare an interim dividend; the company largely complies with corporate governance codes, though the Chairman and Managing Director roles are combined, a deviation deemed efficient for strategy execution, with plans to separate them when a suitable candidate is found - The Group's total number of employees increased from **527** at the end of 2020 to approximately **954** as of June 30, 2021[64](index=64&type=chunk)[66](index=66&type=chunk) - The Board resolved not to declare an interim dividend for the six months ended June 30, 2021[65](index=65&type=chunk) - The Company deviates from Corporate Governance Code provision A.2.1, where the roles of Chairman and Managing Director (Chief Executive Officer) are held by the same individual, Mr He Xiangming; the Company believes this facilitates effective planning and execution and intends to separate these roles when a suitable candidate is identified[69](index=69&type=chunk)[70](index=70&type=chunk)[71](index=71&type=chunk) [Condensed Consolidated Financial Statements](index=20&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the Group's condensed consolidated financial statements, including the statement of profit or loss, financial position, changes in equity, and cash flows [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=20&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2021, the Group's revenue from continuing operations was HKD 205 million, with a loss for the period of HKD 13.09 million, narrowing from HKD 17.94 million in the prior year, resulting in a basic loss per share of HKD 0.90 cents Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Item (HKD thousands) | H1 2021 (Unaudited) | H1 2020 (Unaudited) | | :--- | :--- | :--- | | **Revenue (Continuing Operations)** | 205,207 | 95,610 | | **Gross Profit** | 78,013 | 60,497 | | **Loss Before Tax** | (842) | (4,907) | | **Loss for the Period** | (13,093) | (17,939) | | **Loss Attributable to Owners of the Company** | (15,471) | (31,119) | | **Basic Loss Per Share** | (0.90 HK cents) | (1.82 HK cents) | [Condensed Consolidated Statement of Financial Position](index=22&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2021, the Group's total assets were HKD 6.91 billion, total liabilities HKD 4.93 billion, and total equity HKD 1.98 billion, with non-current assets significantly increasing to HKD 5.44 billion, while net current liabilities expanded to HKD 225 million Condensed Consolidated Statement of Financial Position | Item (HKD thousands) | June 30, 2021 (Unaudited) | December 31, 2020 (Audited) | | :--- | :--- | :--- | | **Non-current Assets** | 5,435,049 | 4,699,685 | | **Current Assets** | 1,475,362 | 1,405,686 | | **Total Assets** | 6,910,411 | 6,105,371 | | **Current Liabilities** | 1,700,234 | 1,472,018 | | **Non-current Liabilities** | 3,227,721 | 2,645,021 | | **Total Liabilities** | 4,927,955 | 4,117,039 | | **Total Equity** | 1,982,456 | 1,988,332 | [Condensed Consolidated Statement of Changes in Equity](index=24&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2021, the Group's total equity slightly decreased from HKD 1.988 billion to HKD 1.982 billion, with equity attributable to owners of the Company increasing due to other comprehensive income offsetting the loss for the period, while non-controlling interests decreased due to dividend payments - During the period, equity attributable to owners of the Company increased by approximately **HKD 5.97 million**, primarily because other comprehensive income of **HKD 21.44 million** (mainly exchange gains) exceeded the loss for the period of **HKD 15.47 million**[164](index=164&type=chunk) - Non-controlling interests decreased by approximately **HKD 11.85 million**, mainly due to dividends of **HKD 23.54 million** paid to non-controlling interests[164](index=164&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=26&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) In H1 2021, the Group reported a net cash outflow of HKD 438 million from operating activities and HKD 284 million from investing activities, offset by a net cash inflow of HKD 583 million from financing activities, primarily new borrowings, resulting in a net decrease of HKD 139 million in cash and cash equivalents to HKD 667 million at period-end Condensed Consolidated Statement of Cash Flows | Item (HKD thousands) | H1 2021 (Unaudited) | H1 2020 (Unaudited) | | :--- | :--- | :--- | | **Net Cash Outflow from Operating Activities** | (438,177) | (251,252) | | **Net Cash (Outflow)/Inflow from Investing Activities** | (283,794) | 10,464 | | **Net Cash Inflow/(Outflow) from Financing Activities** | 583,151 | (21,997) | | **Net Decrease in Cash and Cash Equivalents** | (138,820) | (262,785) | | **Cash and Cash Equivalents at End of Period** | 667,438 | 696,626 | [Notes to the Condensed Consolidated Financial Statements](index=28&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the condensed consolidated financial statements, covering basis of preparation, segment information, borrowings, and related party transactions [Basis of Preparation and Going Concern](index=28&type=section&id=Basis%20of%20Preparation%20and%20Going%20Concern) The financial statements are prepared under HKAS 34, and despite net current liabilities of approximately HKD 225 million as of June 30, 2021, the Directors believe the Group can continue as a going concern, as approximately HKD 688 million of borrowings with 'repayable on demand' clauses are not expected to be fully repaid within one year under normal circumstances - Despite net current liabilities of **HKD 225 million**, the Directors believe the Group can continue as a going concern, as approximately **HKD 688 million** of borrowings are not expected to be repaid within one year under normal circumstances[188](index=188&type=chunk) [Revenue and Segment Information](index=32&type=section&id=Revenue%20and%20Segment%20Information) This chapter details the Group's revenue sources and segment performance, with total revenue of HKD 205 million primarily from financial leasing, civil explosives, and big data, noting financial leasing as the largest operating profit contributor while property investment and civil explosives incurred significant losses, with most revenue and assets concentrated in Mainland China Business Segment Performance | Business Segment | Revenue (HKD thousands) | Operating Profit/(Loss) (HKD thousands) | | :--- | :--- | :--- | | Big Data Business | 19,794 | 1,780 | | Civil Explosives Business | 68,404 | (9,818) | | Financial Leasing | 92,533 | 35,560 | | Hotel Business | 6,030 | (3,221) | | Property Investment | 10,559 | (20,641) | | Wellness Elderly Care Business | 7,887 | (4,260) | | **Total** | **205,207** | **(600)** | - The Group's revenue and non-current assets are highly concentrated in Mainland China, with revenue from Mainland China amounting to **HKD 205 million**, representing **99.8%** of total revenue[237](index=237&type=chunk) [Borrowings](index=61&type=section&id=Borrowings) As of June 30, 2021, the Group's total borrowings increased from HKD 2.56 billion to HKD 3.25 billion, primarily comprising bank borrowings of HKD 2.82 billion, with HKD 2.70 billion being secured, and approximately HKD 775 million classified as current liabilities due to 'repayable on demand' clauses Borrowings Breakdown | Borrowing Type (HKD thousands) | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Asset-backed Securities | 151,999 | 192,246 | | Bank Borrowings | 2,820,110 | 2,128,019 | | Loans from Direct Holding Company | 90,000 | 90,000 | | Other Loans, etc | 187,876 | 145,680 | | **Total Borrowings** | **3,249,985** | **2,555,945** | - Approximately **HKD 2.70 billion** of total borrowings are secured by the Group's investment properties, plant and equipment, finance lease receivables, and bank deposits[334](index=334&type=chunk) [Related Party Transactions](index=80&type=section&id=Related%20Party%20Transactions) During the reporting period, the Group engaged in various related party transactions, including a HKD 90 million loan from direct holding company Prize Rich Inc and an extension agreement for HKD 166 million convertible notes with the same entity, alongside loans from non-controlling interests and procurement from Tiannuo Company's major shareholder - The Group obtained an unsecured loan of **HKD 90 million** from its direct holding company, Prize Rich Inc, at an annual interest rate of **3%**, extended until December 2022[394](index=394&type=chunk) - The Group entered into an agreement with Prize Rich Inc to extend the maturity date of convertible notes with a principal amount of **HKD 166 million** by five years to October 2024[394](index=394&type=chunk) - The Group procured approximately **HKD 1.64 million** worth of cartons from a major shareholder of Tiannuo (a subsidiary), which was classified as an exempted connected transaction[396](index=396&type=chunk) [Discontinued Operation](index=83&type=section&id=Discontinued%20Operation) Due to the impact of the COVID-19 pandemic on the operating environment, the Board decided to discontinue the Group's T-BOX® business on July 1, 2020; this business recorded a profit of HKD 3,000 in H1 2021, compared to a loss of HKD 126,000 in the prior period, with no related assets or liabilities classified as held for sale - The Group discontinued its T-BOX® business on July 1, 2020, which recorded a profit of **HKD 3,000** during the reporting period[408](index=408&type=chunk)[411](index=411&type=chunk)

| --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------|-------|-------|-------------------------|------------------------------------------------------------------------------------------------------------------------------------------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2020 年報 ANNUAL REPORT | | | | | | | | | | | th n a | | | | | | | | | | 中网奥紫控股有限公司 CHINA INVESTMENTS HOLDINGS LIMITEDf ...

Revenue Performance - The Group recorded total revenue of approximately HK$95,611,000 for the six months ended June 30, 2020, representing a significant year-on-year increase of 61%[11]. - Revenue for the six months ended June 30, 2020, was HK$95,611,000, a 61% increase from HK$59,343,000 in the same period of 2019[86]. - Consultancy service income from financial leasing increased significantly to HK$32,220,000 in 2020 from HK$16,637,000 in 2019, marking a growth of about 94%[199]. - Revenue from contracts with customers recognized at a point in time for the construction of internet platforms was HK$5,435,000, down from HK$7,078,000 in 2019, a decrease of approximately 23%[199]. - Revenue from contracts recognized over time for the construction of internet platforms was HK$6,967,000, up from HK$2,509,000 in 2019, indicating a growth of around 177%[199]. - Total interest income from financial leasing was HK$4,124,000, slightly down from HK$4,965,000 in the previous year[199]. Financial Performance - The Group experienced a net loss of approximately HK$17,939,000 in the first half of the year, a decline attributed to increased financing costs and impairment losses[12]. - The company reported a loss for the period of HK$17,939,000, a decline from a profit of HK$25,699,000 in the previous year[88]. - Total comprehensive expense for the period was HK$62,228,000, compared to a comprehensive income of HK$19,986,000 in 2019[88]. - Basic loss per share was HK$1.82 cents, compared to earnings of HK$0.87 cents per share in the same period last year[88]. - The company reported a total comprehensive income for the period was a loss of HK$88,442,000 for the six months ended June 30, 2020, compared to a profit of HK$6,214,000 for the same period in 2019[97]. Business Segments - Operating income from the financial leasing business increased by approximately HK$37,418,000, while the big data business contributed approximately HK$2,815,000[11]. - Operating income from the financial leasing segment reached approximately HK$76,179,000, with an operating profit of approximately HK$42,409,000, reflecting increases of 97% and 135% respectively compared to the same period last year[16]. - The big data business achieved an operating income increase of 29% year-on-year to approximately HK$12,402,000, with a net profit of approximately HK$1,042,000, reflecting a 145% increase over the same period last year[30]. - Operating income from the Smart Elderly Care Services Platform decreased by 31% year-on-year to approximately HK$170,000, with an operating loss of approximately HK$1,739,000, an increase of 70% in loss compared to the same period last year[26]. - The hotel business experienced a 35% year-on-year decrease in average occupancy rate to 18.46%, with operating income dropping by 53% year-on-year to approximately HK$2,735,000[31]. Asset and Liability Management - The Group's total assets as of June 30, 2020, were HK$5,199,450,000, with total liabilities of HK$3,567,218,000, resulting in a gearing ratio of 68.6%[43]. - The Group's net current assets decreased to HK$80,015,000, with a current ratio of approximately 1.05 times[44]. - Non-current assets decreased to HK$3,646,796,000 from HK$3,221,917,000 as of December 31, 2019[90]. - Current liabilities included borrowings of HK$1,284,891,000, slightly down from HK$1,303,788,000 at the end of 2019[90]. - Borrowings rose to HK$895,897,000 as of June 30, 2020, up from HK$846,249,000 as of December 31, 2019, reflecting an increase of approximately 5.8%[93]. Strategic Initiatives - The Group anticipates that the financial leasing segment will become its main source of profit in the future[16]. - The Group plans to develop a new energy industrial park in Danzao Town, Nanhai District, Foshan City, China, to generate revenue as soon as possible[53]. - The Group aims to enhance its core competitiveness in financial leasing within the environmental protection segment, focusing on stability while seeking progress[53]. - The Group will continue its R&D efforts in the big data industry, aiming to create key products that meet market demands as a main driver for future profit growth[53]. - The Group plans to focus on market expansion and new product development to improve future performance[94]. Risk Management - The impact of the COVID-19 epidemic and Sino-US relations has created pressure on the financial leasing industry, but the Group is confident in managing risks effectively[16]. - The Group's financial risk management objectives and policies remain consistent with those disclosed in the annual financial statements for the year ended December 31, 2019, showing stability in risk management practices[193]. - The Group's long-term outlook suggests that RMB will stabilize and not expose the Group to significant long-term adverse foreign exchange risk[49]. Corporate Governance - The company did not declare an interim dividend for the six months ended June 30, 2020, consistent with the previous year where no dividend was declared[75]. - The audit committee reviewed the unaudited interim results for the six months ended June 30, 2020, focusing on accounting principles and internal controls[78]. - The company has complied with all provisions of the Corporate Governance Code during the reporting period[75]. - The company has adopted the Model Code for Securities Transactions by Directors and confirmed compliance for the six months ended June 30, 2020[77].

Financial Performance - For the year ended December 31, 2019, the Group recorded total revenue of HK$161,107,000, representing a significant increase of 102.5% year-on-year[11] - The increase in revenue was attributed to approximately HK$55,310,000 from the financial leasing business and HK$6,824,000 from the newly developed big data business[11] - Income from the disposal of development properties increased by approximately HK$13,278,000 due to further sales of shopping mall units in Shantou Commercial Plaza[11] - The Group posted a net profit of approximately HK$79,912,000 for the year, representing a significant increase of 43.2% year-on-year[12] - The Group's overall rental income in 2019 was approximately HK$9,879,000, representing an increase of 45.7% year-on-year[21] Business Segments - The segment of financial leasing recorded operating income of approximately HK$80,531,000, a significant increase of 2.2 times year-on-year[18] - The Smart Elderly Care Services Platform recorded operating income of approximately HK$7,877,000, representing an increase of 78.8% year-on-year[31] - The big data business segment achieved operating income of approximately HK$18,881,000, reflecting a year-on-year increase of 56.6%, with a slight net profit of approximately HK$29,000[42] - The operating profit from the financial leasing segment was approximately HK$35,457,000, expected to fuel future earnings growth[18] - Guangdong Yibai Health Technology Co., Ltd. recorded operating income of approximately HK$7,877,000, representing a year-on-year increase of 78.8%, resulting in a slight operating profit of approximately HK$1,088,000, reversing previous losses[32] Investments and Assets - As of December 31, 2019, the Group's total assets increased to HK$1,705,970,000, up from HK$1,331,320,000 on December 31, 2018, representing a growth of approximately 28.1%[60] - The Group's net current assets rose to HK$505,514,000, compared to HK$212,713,000 as of December 31, 2018, indicating a significant increase of approximately 137.5%[60] - The Group's investment in Nanhai Changhai Power Company Limited generated an operating profit of approximately HK$229,700,000, contributing earnings of approximately HK$73,564,000, representing a 16.46% increase year-on-year[48] Corporate Governance - The Company emphasizes corporate governance and has adopted all code provisions under the Corporate Governance Code as its own governance code[70] - For the year ended December 31, 2019, the Company complied with all code provisions under the Corporate Governance Code[70] - The Board comprises eight directors, including five executive directors and three independent non-executive directors, ensuring a balanced governance structure[83] - The Board is responsible for establishing the Group's development direction, formulating targets, and monitoring senior management performance[90] Risk Management - The Group has adopted a corporate risk management policy to identify, evaluate, and manage significant risks, with risk mitigation plans established for major risks[164] - The Board considers the Group's risk management and internal control systems to be effective, providing reasonable assurance against material misstatement or loss[168] - The Group conducts an annual review of its risk management and internal control systems, assessing resources, staff qualifications, and compliance with Listing Rules[168] Future Outlook - The Group anticipates that the demand for Changhai Power's services will be affected in 2020 due to some customers not resuming normal operations[54] - The Group's overall outlook for 2020 remains cautious due to ongoing uncertainties in the tourism and hospitality sectors[48] - The Group plans to focus on developing a new energy industrial park in Danzao Town, Nanhai District, Foshan City, China, leveraging its experience in property development[66] Shareholder Engagement - The company has established a shareholders' communication policy to provide timely and relevant information to shareholders and investors[177] - Shareholders holding not less than one-tenth of the paid-up capital have the right to requisition a special general meeting[184] - The company encourages shareholder participation in general meetings, providing notices that include the agenda and proposed resolutions[178]

Financial Performance - For the six months ended June 30, 2019, the Group recorded total revenue of approximately HK$59,343,000, representing a significant increase of 162.9% compared to the same period last year [9]. - The net profit for the first half of 2019 was approximately HK$25,699,000, turning losses into gains after deducting financing costs and other factors [10]. - Profit before taxation for the period was HK$51,798,000, compared to a loss of HK$26,099,000 in the previous year [77]. - Profit for the period attributable to owners of the Company was HK$14,813,000, a recovery from a loss of HK$7,469,000 in 2018 [80]. - Total comprehensive income for the period was HK$19,986,000, compared to a loss of HK$22,848,000 in the same period last year [80]. - The profit for the period ended June 30, 2019, was HK$25,699,000, compared to a loss of HK$7,824,000 in the same period of 2018, representing a significant turnaround in performance [104]. Revenue Sources - The financial leasing business generated operating income of approximately HK$38,761,000, a substantial increase of 20.7 times compared to the same period last year, with an operating profit of approximately HK$18,064,000 [13]. - The Group's overall rental income in the first half of 2019 was approximately HK$4,965,000, representing an increase of 53.5% compared to the same period last year [17]. - The Group gained other incomes totaling approximately HK$68,162,000, including government subsidies and compensation related to its development of the industrial park in Danzao [10]. - Revenue from financial leasing consultancy services increased significantly to HK$16,637,000 from HK$1,483,000, representing a growth of 1,020% [138]. - Total revenue from contracts with customers recognized over time amounted to HK$23,949,000, up from HK$12,288,000, indicating a growth of 95% [138]. Asset Management - As of June 30, 2019, the Group's total assets were HK$4,645,130,000, with total liabilities of HK$3,184,104,000, resulting in a gearing ratio of 68.5% [43]. - Non-current assets increased to HK$3,145,080,000 as of June 30, 2019, from HK$1,857,307,000 at the end of 2018 [83]. - Total segment assets increased to HK$4,645,130,000 from HK$3,460,537,000, reflecting a growth of 34.3% [152]. - The right-of-use assets increased to HKD 1,001,749,000 as of June 30, 2019, compared to HKD 148,255,000 at the end of 2018, reflecting significant growth in leased premises [197]. Investment and Expansion - The Group has established a subsidiary, Canton Risen Financial Leasing Co., Ltd., to further develop financial leasing businesses focusing on public utilities, energy conservation, and new energy projects [13]. - The Group plans to focus on industrial parks/property development, finance, technology, and wellness elderly care for future growth [49]. - The Group will continue to develop the new energy industrial park in Danzao Town, Nanhai District, Foshan City, China [49]. - The Group plans to expand the Smart Elderly Care Services Platform to other towns in Nanhai District and surrounding areas [26]. - The Group is exploring potential acquisitions to strengthen its market position and diversify its portfolio [97]. Challenges and Risks - The Group anticipates that the outlook for the financial leasing industry remains positive despite rising risks related to bad debts due to the ongoing China-US trade war [13]. - Guangdong Financial Leasing Co., Ltd., a 25%-owned associate, faced significant challenges, resulting in a decrease in operating profit to approximately HK$6,254,000 and a profit contribution of approximately HK$1,564,000, down 85.7% year-on-year [38]. - The Group's income tax expense for the six months ended June 30, 2019, was HK$26,099,000, compared to HK$4,251,000 in the same period of 2018, representing a significant increase of 514% [177]. Corporate Governance - The company did not declare any interim dividend for the six months ended June 30, 2019, consistent with the previous year [70]. - The company has adopted all code provisions under the Corporate Governance Code and has complied with all provisions for the six months ended June 30, 2019 [70]. - The company confirmed compliance with the Model Code for Securities Transactions by Directors for the six months ended June 30, 2019 [70]. Employee and Operational Metrics - The total number of employees in the group increased to approximately 206 as of June 30, 2019, up from 183 as of December 31, 2018 [67]. - The total staff costs for the period were HK$15,981,000, compared to HK$8,704,000 in the previous year [187]. Financial Position - The Group's net current assets were HK$34,130,000, with a current ratio of approximately 1.02 times, indicating sufficient liquidity for future operations [43]. - Bank savings and cash amounted to HK$1,117,997,000, down from HK$1,221,671,000 as of December 31, 2018, but still adequate for capital requirements [43]. - The total equity of the company reached HK$1,461,036,000, indicating a growth of 12.5% year-over-year [90].