Financial Performance - The company reported a loss attributable to equity holders of HKD 517 million for the year ended December 31, 2021, compared to a loss of HKD 689 million in the previous year, primarily due to non-cash losses and provisions [4]. - The company's revenue from continuing operations for 2021 was HKD 731 million, an increase of HKD 226 million or 44.8% compared to 2020 [42]. - The gross profit for 2021 was HKD 121 million, up 124.1% from HKD 54 million in 2020 [42]. - The total loss for the year was HKD 521 million, a decrease of 25.1% from HKD 696 million in 2020 [42]. - The company did not declare any dividends for the year [42]. - The company's equity attributable to shareholders decreased to HKD 1,621,000,000 in 2021 from HKD 2,138,000,000 at the beginning of the year, a reduction of HKD 517,000,000 [64]. - The capital structure showed a debt-to-equity ratio increase from 44.8% in 2020 to 52.4% in 2021, primarily due to the decrease in equity [64]. - The company reported an unrealized revaluation loss of HKD 287 million related to its 29.19% stake in GBA [44]. - The company has maintained a cautious approach to its financial strategy, focusing on preserving cash reserves amid a challenging environment [141]. Business Segments - The property segment recorded a profit of HKD 6 million in 2021, mainly due to the recovery of the residential property market leading to unrealized fair value gains [7]. - The automotive logistics business performed well, establishing its own car-hailing service center and securing new contracts with several automotive clients in Hong Kong [23]. - Blackbird Group, which operates as an authorized dealer for Ferrari and Maserati in Hong Kong and Macau, successfully launched five new Ferrari models in 2021 [14][16]. - The Ferrari agency business generated revenue of HKD 537 million, a 30.0% increase from HKD 413 million in 2020 [52]. - The antique car trading and logistics business saw a significant revenue increase of 484.6%, reaching HKD 152 million compared to HKD 26 million in 2020 [47]. - The stage sound, lighting, and engineering business recorded revenue of HKD 45 million, a 125.0% increase from HKD 20 million in 2020 [57]. - The Maserati import agency business generated revenue of HKD 17 million, with an operating loss of HKD 6 million due to startup costs [53]. Strategic Plans and Challenges - The company plans to divest its entire 29.19% stake in GBA to better allocate resources and enhance cash flow, with the transaction approved by shareholders on January 17, 2022 [11]. - The company anticipates ongoing challenges in 2022 due to the Omicron variant, rising inflation, interest rate hikes, and geopolitical tensions affecting economic recovery [30]. - The company is focused on cash preservation and cost-saving measures to lay the groundwork for future recovery [30]. - The company plans to introduce the latest Maserati model, the Grecale SUV, in Spring 2022, as part of its brand revitalization strategy in Hong Kong and Macau [20]. Corporate Governance - The board consists of three executive directors and three independent non-executive directors, ensuring a balance of power [87]. - The company emphasizes the importance of good corporate governance to maximize shareholder benefits [86]. - The independent non-executive directors bring extensive experience from various sectors, enhancing corporate governance and oversight [36]. - The company has established three board committees: the Remuneration Committee, Audit Committee, and Nomination Committee, each with defined roles and responsibilities [104]. - The company has maintained a high level of corporate governance, with minor deviations from the code [86]. - The board believes that the continuity of leadership is essential for maintaining stability in the core management team [88]. Risk Management - Major risks identified include the ongoing trade war between China and the U.S., geopolitical risks, inflation and rising interest rates, and significant changes in government policies affecting operations [133]. - The company has implemented measures to mitigate identified risks, which are regularly reviewed by the audit committee and discussed by the board [133]. - The internal audit department conducts semi-annual reviews of the risk management and internal control systems based on risk criteria [130]. - The company employs a conservative approach to manage and coordinate strategic risks, contributing to sustainable development and long-term shareholder returns [130]. Share Options and Capital Structure - The 2021 share option plan was approved on June 23, 2021, allowing for the issuance of up to 87,311,145 shares, representing 10% of the total issued shares [156]. - The total number of share options that can be granted under the GBA 2021 Plan is 18,384,610,000, representing 10% of the total shares issued [171]. - The exercise price for any share option granted under the GBA 2021 plan must not be lower than the highest of the closing price on the grant date or the average closing price over the five trading days preceding the grant date [181]. - The total value of share options granted to directors and senior management exceeding HKD 5,000,000 requires shareholder approval at a general meeting [179]. Community Engagement - The company made charitable donations of approximately HKD 100,000 in 2021 and encourages employees to participate in community service activities [82]. - The company has made charitable donations totaling HKD 100,000 in the year, consistent with the previous year [149].

Financial Performance - The group reported revenue of HKD 282 million for the six months ended June 30, 2021, an increase of 46.1% compared to HKD 193 million in the same period last year, primarily due to the recovery of Ferrari agency operations[5]. - The loss attributable to equity holders of the parent company was HKD 82 million, a reduction of 68.5% from a net loss of HKD 260 million in the first half of last year, indicating an overall improvement in the group's main business performance[5]. - Revenue from continuing operations for the first half of 2021 was HKD 282 million, an increase of HKD 89 million or 46.1% compared to the same period in 2020[25]. - The overall loss for the period was HKD 84 million, a significant reduction from HKD 267 million in the previous year, reflecting improved operational performance[25]. - The total comprehensive loss for the six months was HKD 84 million, compared to HKD 267 million in the same period of 2020[60]. - The group incurred a loss from continuing operations before tax of HKD 84 million, significantly improved from a loss of HKD 265 million in the prior year[55]. - The group reported a pre-tax adjusted loss of HKD 31 million from the sale of antique cars[112]. Revenue Breakdown - The Ferrari agency business contributed HKD 202 million in revenue, accounting for 71.6% of total revenue, with a year-on-year increase of 39.3%[29]. - The antique car trading and logistics business saw a revenue increase of 283.3%, reaching HKD 46 million compared to HKD 12 million in the previous year[29]. - Total revenue from Hong Kong, Macau, and mainland China was HKD 250 million in H1 2021, an increase of 26.9% compared to H1 2020, primarily due to increased Ferrari sales[43]. - Revenue from Ferrari agency business was HKD 202 million, up 39.3% from HKD 145 million in the previous year[83]. - Revenue from antique car trading and logistics business increased to HKD 46 million from HKD 12 million, representing a growth of 283.3%[83]. - Total income from customer contracts was HKD 278 million, with HKD 261 million recognized at a point in time and HKD 17 million recognized over time[86]. Operating Segments - The group has various operating segments, including property development, securities business, and Ferrari agency business, which contribute to its diversified revenue streams[94]. - The group recorded an operating loss of HKD 3 million in the property business, significantly improved from an operating loss of HKD 92 million in the same period last year, with a net fair value gain of HKD 2 million[8]. - The securities business reported an operating loss of less than HKD 1 million, consistent with the previous year's performance, while the group maintained its investment in approximately 5.37 billion shares of GBA, representing about 29.2% of the total issued shares[9]. - The stage sound, lighting, and engineering segment recorded an operating loss of HKD 7 million, improved from a loss of HKD 21 million in the first half of 2020, a reduction of 66.7%[19]. - The film business recorded an operating loss of HKD 2 million in H1 2021, an improvement from a loss of HKD 4 million in H1 2020, due to no films being released during the period[37]. - Other businesses saw a revenue increase of 20.0% to HKD 18 million in H1 2021, with operating losses reduced to HKD 14 million from HKD 41 million in H1 2020[41]. Financial Position - Current assets as of June 30, 2021, were HKD 1,677 million, with a current ratio of 239.2%, reflecting high liquidity[48]. - The total capital debt ratio as of June 30, 2021, was 46.2%, slightly higher than 44.8% on December 31, 2020, indicating a stable financial position during challenging times[45]. - The total borrowings amounted to HKD 1,767 million as of June 30, 2021, compared to HKD 1,734 million on December 31, 2020, with most being long-term loans[46]. - The group’s total assets as of June 30, 2021, were HKD 3,917 million, compared to HKD 3,907 million as of December 31, 2020[98]. - The group’s liabilities as of June 30, 2021, were HKD 1,879 million, compared to HKD 1,916 million as of December 31, 2020[98]. - The total liabilities amounted to HKD 2,354 million, slightly up from HKD 2,330 million, marking an increase of about 1.0%[63]. Shareholder Information - The company declared no interim dividend for the six months ended June 30, 2021, consistent with the same period in 2020[121]. - The company’s total issued shares as of June 30, 2021, were 873,111,452, with a significant percentage of shares held by key executives[158]. - The company’s major shareholder, Mr. Mai, holds a beneficial interest in 446,025,079 shares through controlled entities[161]. - The company’s shareholding structure indicates that after the full conversion of the 2024 convertible bonds, public shareholders would hold 32.89% of the total shares[134]. - The company has approved the issuance of 87,311,145 share options under the 2021 plan, representing 10% of the total issued shares[179]. Corporate Governance - The board emphasizes the importance of good corporate governance to maximize shareholder benefits[192]. - The company did not comply with the corporate governance code regarding the separation of the roles of Chairman and CEO, as both roles are held by Mr. Mai[193]. - The board consists of three executive directors and three independent non-executive directors, ensuring a balance of skills and experience[193]. - The company has adopted a code of conduct for directors' securities trading, which is not less stringent than the standard code[195]. - The audit committee has reviewed the group's interim report, including the unaudited consolidated financial statements for the six months ended June 30, 2021[195].

Financial Performance - The company reported a net loss attributable to equity holders of HKD 689 million for the year ended December 31, 2020, compared to a net loss of HKD 141 million in 2019, primarily due to a significant decrease in revenue and non-cash items [5]. - In 2020, the company's revenue from continuing operations was HKD 505 million, a decrease of HKD 501 million or 49.8% compared to 2019 [37]. - The total loss for the year was HKD 696 million, compared to a loss of HKD 141 million in 2019, reflecting a 393.6% increase in losses [37]. - The operating loss from the property investment and holding segment was HKD 84 million in 2020, down from an operating profit of HKD 32 million in 2019, mainly due to unrealized fair value losses [43]. - The Ferrari agency business recorded revenue of HKD 413 million in 2020, a decline of 32.6% compared to the previous year, resulting in an operating loss of HKD 22 million [44]. - The antique car trading and logistics business generated revenue of HKD 26 million in 2020, a significant decrease of 75% from HKD 104 million in 2019, leading to an operating loss of HKD 9 million [45]. - The stage sound, lighting, and engineering business reported revenue of HKD 20 million in 2020, a decrease of 89.6% from HKD 192 million in 2019, resulting in an operating loss of HKD 49 million [47]. - Revenue from other businesses decreased by 57.3% to HKD 35 million in 2020, with an operating loss of HKD 25 million, a reduction of 52.8% compared to 2019 [48]. - The company’s property development and trading segment did not generate any revenue in 2020 due to reclassification of properties [43]. Dividend Policy - The company did not recommend a final dividend for 2020, maintaining cash reserves to address future challenges, with no interim dividend declared for 2020 [6]. - The group reported a loss for the year ended December 31, 2020, with no final dividend proposed due to the challenging environment, maintaining cash reserves for future difficulties [126]. - The company did not declare any interim dividends in 2020, consistent with 2019 [126]. - The ability to pay dividends is subject to the board's discretion and must consider the group's financial performance and overall financial condition [122]. - The company adopted a dividend policy in January 2019, allowing for the declaration and distribution of dividends to shareholders [121]. Market Conditions - The property market in Hong Kong experienced a decline in prices and transaction volumes due to the COVID-19 pandemic, but the company remains optimistic about a rebound as the situation improves [7]. - The company anticipates growth potential in the Xinjiang region under the "Belt and Road" initiative, despite the challenges faced in 2020 [10]. - The antique car and investment-grade automobile market remains cautiously optimistic for long-term development despite the impact of the COVID-19 pandemic [16]. - The company anticipates a rebound in core business once the COVID-19 pandemic is under control, despite facing unprecedented challenges [26]. Business Operations - The company terminated its joint venture in mainland China in November 2020 due to losses incurred from the pandemic and uncertainties regarding future management and operations [10]. - The company's securities business recorded an overall operating loss of HKD 1 million, with no dividends or income received from its holdings in GBA shares during the year [12]. - Blackbird Group, the company's automotive division, successfully launched three new Ferrari models in 2020, including the F8 Spider and 812 GTS, marking significant milestones in their dealership operations [13][14]. - The logistics business performed well with good operating profit margins, and the company established its own car recall service center [17]. - The company has a diversified property portfolio, including luxury villas and retail properties, which has appreciated significantly over the years [9]. - The company is focused on cash preservation and cost-saving measures to prepare for future recovery opportunities [26]. Corporate Governance - The company has a diversified management team with over 43 years of financial and accounting management experience, focusing on corporate finance and mergers and acquisitions [31]. - The independent directors bring a wealth of experience from various industries, enhancing corporate governance and oversight [33][34]. - The company has maintained a high level of corporate governance to maximize shareholder benefits [76]. - The board consists of six members, including one female and three independent non-executive directors, ensuring sufficient diversity [109]. - The board has established three committees: the remuneration committee, audit committee, and nomination committee, each with clearly defined responsibilities [91]. - The company has established a remuneration committee, which held one meeting in the fiscal year ending December 31, 2020, to review and provide recommendations on the remuneration policies for directors and senior management [92][93]. Risk Management - Major risks identified include the COVID-19 outbreak, the ongoing trade war between China and the U.S., and significant changes in government policies affecting operations [116]. - The company has implemented measures to mitigate identified risks, which may change according to business and external environment [117]. - The board has reviewed the risk management and internal control systems for the fiscal year ending December 31, 2020, and deemed them effective and adequate [116]. Employee Relations - The company has a competitive compensation package for employees, including pension and benefits, and encourages training and development [70]. - The company made charitable donations of approximately HKD 140,000 in 2020 and encourages employees to participate in community service activities [71]. - The company has implemented various measures during the COVID-19 pandemic to ensure a safe working environment for employees, including remote work and flexible hours [70]. Financial Position - The capital debt ratio increased from 38.2% in 2019 to 44.8% in 2020, primarily due to a decrease in bank borrowings and shareholders' equity [52]. - Current ratio improved to 260.6% in 2020 from 224.9% in 2019, indicating higher liquidity [54]. - Cash balance at year-end was HKD 48 million, down HKD 23 million from HKD 71 million in the previous year [54]. - Total borrowings amounted to HKD 1,734 million, with approximately 81.8% being long-term borrowings [52]. Share Options and Equity - The company issued HKD 250.2 million of 2024 convertible bonds, with a coupon rate of 5% per annum, and the conversion price set at HKD 0.72 per share [129]. - The total number of share options granted under the GBA 2011 plan is 16,134,993,990, with 10,914,993,990 shares remaining unexercised as of December 31, 2020 [156]. - The total number of shares held by employees under the GBA plan is 1,320,000,000 shares, with no options exercised during the year [156]. - The company’s total issued shares as of December 31, 2020, is 873,111,452 shares, which is the basis for calculating the percentage of equity held by directors and executives [160].

Financial Performance - The company recorded a net loss attributable to equity holders of HKD 260 million for the first half of 2020, compared to a profit of HKD 3 million in the same period last year[5]. - The company's revenue for the first half of 2020 was HKD 204 million, a decrease of HKD 336 million or 62.2% compared to the same period in 2019[27]. - The group reported a loss of HKD 267 million for the six months ended June 30, 2020, compared to a profit of HKD 5 million in the prior year[59]. - Total revenue for the group decreased by 62.2% to HKD 204 million in the first half of 2020, down from HKD 540 million in the same period of 2019[43]. - Gross profit for the same period was HKD 30 million, down 70% from HKD 100 million year-on-year[57]. - The basic loss per share for the period was HKD 0.297, while the diluted loss per share was HKD 0.207, reflecting a significant decrease from the previous year's earnings[109][110]. Business Segment Performance - The operating loss in the property business amounted to HKD 92 million, down from an operating profit of HKD 53 million in the previous year[9]. - The stage sound, lighting, and engineering business experienced a revenue drop of 85.3%, resulting in an operating loss of HKD 21 million[20]. - The industrial products business has been terminated as of July 24, 2020, due to ongoing losses and lack of new orders[23]. - The Ferrari agency business generated revenue of HKD 145 million in the first half of 2020, a decrease of 54.7% compared to the same period in 2019, resulting in an operating loss of HKD 20 million[36]. - The antique car trading and investment business incurred an operating loss of HKD 12 million in the first half of 2020, down from an operating profit of HKD 14 million in the same period of 2019, with revenue decreasing to HKD 12 million[36]. - Other businesses reported a revenue decline of 53.1% to HKD 15 million, with an operating loss of HKD 41 million, up 32.2% from HKD 31 million in the same period of 2019[42]. Cash and Liquidity - The group’s current ratio as of June 30, 2020, was 188.5%, down from 224.9% at the end of 2019, indicating a decrease in liquidity[50]. - As of June 30, 2020, the group had cash reserves of HKD 115 million, down from HKD 149 million at the end of 2019, with HKD 34 million pledged for bank loans[51]. - Cash flow from operating activities was negative at HKD 30 million for the first half of 2020, an improvement from negative HKD 51 million in the prior year[71]. - Total cash and cash equivalents at the end of the period were HKD 81 million, down from HKD 198 million at the end of June 2019[71]. Investment and Future Outlook - The company is cautiously optimistic about the long-term prospects of the antique car market despite the negative impacts from the pandemic and trade tensions[15]. - The company plans to maintain cash reserves and continue cost-saving measures to prepare for future recovery[25]. - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its product offerings[185]. - The company provided guidance for the next fiscal year, projecting a revenue growth rate of approximately 15%[186]. Corporate Governance - The company emphasizes high levels of corporate governance to align with shareholder interests[167]. - The board believes that good corporate governance maximizes shareholder benefits[170]. - The company has complied with all provisions of the corporate governance code[168]. - The roles of the Chairman and CEO are not separated, which deviates from the corporate governance code A.2.1[171]. Shareholder Information - The total issued shares as of June 30, 2020, is 873,111,452[163]. - Major shareholders include Capital Force with 96,868,792 shares (39.72%), New Capital with 171,357,615 shares (30.79%), and Capital Winner with 177,798,672 shares (20.36%) as of June 30, 2020[163]. - The company has convertible bonds with a total principal amount of HKD 250.2 million, maturing on March 30, 2024, with a conversion price of HKD 0.72 per share[120]. Operational Challenges - The company anticipates that the ongoing economic uncertainty will continue to be influenced by the COVID-19 pandemic and geopolitical challenges[24]. - The company has not experienced any significant impact on its financial position or performance due to the COVID-19 pandemic[79]. - The company has not made any provisions for contingent liabilities related to legal proceedings, as the board believes the chances of a successful defense are reasonably high[130].

Financial Performance - The company recorded a net loss attributable to equity holders of HKD 141 million for the year ended December 31, 2019, compared to a profit of HKD 34 million in 2018, primarily due to non-cash items including an unrealized loss of HKD 92 million from property valuation changes [5]. - The company’s revenue for 2019 was HKD 1,097 million, an increase of 19.4% from HKD 919 million in 2018 [39]. - Gross profit for 2019 was HKD 178 million, reflecting a 19.5% increase compared to HKD 149 million in 2018, maintaining a gross margin of 16.2% [39]. - The company reported a loss attributable to equity holders of HKD 141 million in 2019, compared to a profit of HKD 34 million in 2018 [40]. - Basic loss per share for 2019 was HKD 0.16, compared to earnings of HKD 0.04 per share in 2018 [42]. - The company did not declare any dividends for 2019, as it reported a net loss [42]. - The company did not recommend a final dividend for 2019, maintaining cash reserves to address future challenges, and did not distribute any interim dividend in 2019 [6]. Property Investment and Development - The property investment and holding segment achieved an operating profit of HKD 32 million in 2019, down from HKD 83 million in 2018, impacted by an unrealized fair value loss of HKD 50 million [11]. - The company sold a property for HKD 159 million in July 2019, realizing a gain of HKD 83 million, reflecting its ability to time property transactions effectively [10]. - The property market in Hong Kong experienced a downturn in the second half of 2019, influenced by the US-China trade war and social unrest, with expectations of recovery once the pandemic is controlled [8]. - The property investment segment generated stable rental income of HKD 12,000,000, a decrease of HKD 1,000,000 compared to the same period last year, with operating profit at HKD 32,000,000 [49]. - The property development and trading segment recorded a revenue of HKD 3 million but incurred a loss of HKD 40 million, compared to a profit of HKD 5 million in the previous year [48]. Business Segments Performance - The company’s diversified property investment portfolio includes luxury villas, office buildings, and retail properties, which have appreciated in value over the years [10]. - The Ferrari dealership business experienced significant growth, with revenue soaring 137.6% to HKD 613 million from HKD 258 million in the previous year [39]. - The stage sound, lighting, and engineering business generated revenue of HKD 192 million, accounting for 17.5% of total revenue [45]. - The logistics business showed good performance with a sustainable operating profit margin, and the company is continuing its expansion plans by securing new contracts with key automotive clients in Hong Kong [19]. - The film business completed production on a major film titled "Feng Lin Huo Shan," expected to premiere at an international film festival in 2020, with high box office revenue anticipated [21]. - The antique car trading and investment business sold multiple antique and high-value modern cars, although the market was affected by global economic conditions and US-China trade tensions [19]. Challenges and Responses - The company acknowledges the severe threat and challenges posed by the COVID-19 pandemic to the global economy in 2020 [26]. - The World Health Organization declared COVID-19 a global pandemic on March 11, 2020, leading to increasing concerns about its negative impact on the economy [26]. - The company has implemented multiple measures to respond to the current situation, focusing on cash preservation and enhanced cost control [26]. - The management believes that once COVID-19 is under control, the core business will be able to recover [26]. - Key risks identified include the outbreak of COVID-19, trade tensions between China and the U.S., and significant changes in government policies affecting operations [132]. Corporate Governance - The company maintains a balanced governance structure, with the chairman and CEO roles currently held by the same individual, which the board believes enhances communication and decision execution [81]. - The board consists of three executive directors and three independent non-executive directors, ensuring a balanced and diverse composition [88]. - The company has established three board committees: the Remuneration Committee, the Audit Committee, and the Nomination Committee, each with clearly defined terms of reference [99]. - The audit committee is composed of three independent non-executive directors, ensuring adequate resources to fulfill its responsibilities [108]. - The company emphasizes the independence of non-executive directors, with assessments conducted to ensure their impartiality [111]. Employee and Community Engagement - The company has invested significant resources to provide a safe, healthy, and clean working environment for employees in Hong Kong and China [76]. - The company has a competitive compensation package and encourages employee training and development through external courses and seminars [75]. - The company has made charitable donations of approximately HKD 230,000 in 2019 and encourages employees to participate in community service activities [76]. - The company has established a safety committee to monitor the safety of production facilities and employee living areas [76]. Financial Position and Borrowings - The group's total borrowings amounted to HKD 1,740,000,000, with a capital debt ratio increasing to 38.2% from 35.0% in the previous year [57][58]. - The current ratio as of December 31, 2019, was 224.9%, down from 284.1% in 2018, indicating high liquidity and financial stability [58]. - Cash balance at year-end was HKD 71,000,000, a decrease of HKD 56,000,000 from HKD 127,000,000 in the previous year, primarily due to funding used for operational activities [59]. Share Options and Ownership - The company has established a share option plan to reward eligible participants, including directors and senior management, based on performance and market conditions [105]. - The total number of unexercised options that can be granted under the 2011 Plan is limited to 30% of the total shares issued at any time [168]. - The company has the discretion to impose restrictions on the exercise of options at the time of grant [171]. - As of December 31, 2019, the total number of shares held by the beneficial owner, Mr. Mai, is 25,589,652, with a total of 819,114,731 shares representing approximately 93.81% of the issued shares [182]. - Major shareholders include Capital Force International Limited with 39.72% ownership, New Capital Industrial Limited with 30.79%, and Capital Winner Investments Limited with 20.36% [195].

Financial Performance - The company recorded a net profit attributable to shareholders of HKD 3,000,000 for the first half of 2019[5]. - The net profit attributable to the parent company for the first half of 2019 was HKD 3 million, a decrease of 92.7% from HKD 41 million in the first half of 2018[33]. - The group reported a net profit of HKD 5 million for the six months ended June 30, 2019, down from HKD 41 million in the previous year[62]. - Profit attributable to equity holders of the parent for the six months ended June 30, 2019, was HKD 3 million, down from HKD 41 million in 2018, representing a decrease of approximately 92.68%[124]. - The company reported a pre-tax loss of HKD 9 million for the six months ended June 30, 2019, compared to a profit of HKD 41 million in the same period of 2018[72]. Revenue and Growth - The company's revenue for the first half of 2019 was HKD 540 million, an increase of 47.5% compared to HKD 366 million in the same period of 2018[32]. - Total revenue for the six months ended June 30, 2019, was HKD 540 million, an increase from HKD 366 million in the same period of 2018, representing a growth of 47.4%[94]. - Revenue from Ferrari agency increased significantly to HKD 320 million, up from HKD 120 million, marking a 166.7% increase year-over-year[94]. - The Ferrari agency business contributed total revenue of approximately HKD 320,000,000, significantly up from HKD 120,000,000 in the first half of 2018[20]. - Revenue from Hong Kong, Macau, and mainland China reached HKD 487 million for the six months ended June 30, 2019, compared to HKD 292 million in the same period of 2018, representing a 66.8% increase[112]. Dividends and Shareholder Returns - Due to the challenging operating environment, the board does not recommend a mid-term dividend for 2019, compared to a mid-term dividend of HKD 0.035 per share in 2018[6]. - The company announced no interim dividend for 2019, compared to HKD 0.035 per share in 2018[122]. Property and Investment Performance - The investment property portfolio generated a fair value gain of HKD 46,000,000 for the first half of 2019, down from HKD 102,000,000 in the same period of 2018[13]. - The company sold a property for HKD 158,750,000, with an estimated gain of HKD 79,000,000 expected to be recognized in the second half of 2019[14]. - The property investment and holding segment reported rental income of HKD 6 million, with an operating profit of HKD 51 million, down from HKD 98 million in the same period last year[40]. Operational Challenges - The industrial group experienced a revenue decline of 34.3% to HKD 65 million due to the impact of US-China trade tensions and intense competition[28]. - The sound, lighting, and stage engineering business saw a decline in overall operating profit margin due to rising production costs and unchanged budgets[24]. - The company did not engage in trading other listed shares or securities during the first half of 2019, resulting in an operating loss of less than HKD 1,000,000 from the securities business[16]. Future Outlook and Strategic Plans - The company plans to further sell properties in its investment portfolio when suitable opportunities arise[14]. - The company anticipates strong performance from the Ferrari business, with record new car deliveries expected in 2019[20]. - The company is preparing for more events in the second half of 2019, including the launch of additional new car models from Ferrari[17]. - The company plans to open a new roadside assistance call center in 2019 to support local importers, distributors, and private car owners[21]. - The company aims to leverage its diverse business segments to drive future growth and profitability, particularly through strategic investments and market expansion initiatives[99]. Financial Position and Ratios - The company's capital debt ratio increased to 39.0% as of June 30, 2019, compared to 35.0% at the end of 2018[51]. - The group's cash balance increased to HKD 274 million as of June 30, 2019, compared to HKD 162 million as of December 31, 2018, with HKD 76 million pledged for bank loans[55]. - The group's current ratio was 228.2%, down from 284.1% as of December 31, 2018, indicating a high liquidity position[54]. - The company’s total borrowings amounted to HKD 1,896 million, an increase from HKD 1,598 million at the end of 2018, with most being long-term bank loans[52]. Employee and Management Information - The total number of employees remained stable at 467 as of June 30, 2019[60]. - The company’s management team received a total of HKD 12 million in short-term employee benefits for the six months ending June 30, 2019[161]. Accounting and Compliance - The company adopted HKFRS 16 on January 1, 2019, which replaced HKAS 17 for lease accounting, resulting in a significant change in the recognition and measurement of lease liabilities and right-of-use assets[82]. - The initial application of HKFRS 16 did not require restatement of comparative information for the year ended December 31, 2018[82]. - The company has complied with all corporate governance code provisions except for a minor deviation regarding the separation of roles between the Chairman and CEO[176]. Shareholder Information - The company issued convertible bonds with a principal amount of HKD 250.2 million, maturing on March 30, 2024, with an initial conversion price of HKD 0.90 per share[135]. - The company repurchased a total of 2,270,000 shares at a total cost of HKD 1,701,080 during the six months ended June 30, 2019, with the shares subsequently canceled on April 11, 2019[142].

Financial Performance - The company's revenue for the year ended December 31, 2018, was HKD 919 million, with a profit attributable to equity holders of HKD 34 million[5]. - The total dividend for 2018 was HKD 0.035 per share, down from HKD 0.07 per share in 2017[5]. - The company recorded revenue of HKD 193 million in the sound, lighting, and stage engineering business for 2018, a slight increase from HKD 192 million in 2017[27]. - The industrial group reported revenue of HKD 172 million in 2018, down from HKD 213 million in 2017, primarily due to a shrinking wireless phone market[27]. - The company reported a total revenue of HKD 1.2 billion for the fiscal year ending December 31, 2018, reflecting a year-on-year increase of 15%[86]. - The company’s financial performance and position as of December 31, 2018, are detailed in the financial statements on pages 52 to 165[140]. - Profit before tax was HKD 25 million, with net profit attributable to equity holders of the parent at HKD 34 million, down 81.2% from HKD 181 million in 2017[41][42]. - Basic earnings per share for the year were HKD 0.04, down 81.0% from HKD 0.21 in 2017[41]. - The return on equity for 2018 was 1.1%, a decrease of 4.5% from 5.6% in the previous year[46]. Business Segments - The property investment and holding segment achieved an operating profit of HKD 83 million, primarily due to fair value gains from property revaluation and gross rental income[12]. - The Ferrari agency business contributed approximately HKD 258 million in revenue for 2018, a significant increase from HKD 7 million in 2017[18]. - The antique car trade and investment business sold multiple Ferrari antique cars in 2018, despite a cautious outlook due to global economic slowdown and trade tensions[19]. - The logistics business performed well in 2018, with ongoing expansion plans and new contracts established with key automotive clients in Hong Kong[19]. - The other businesses generated revenue of HKD 78 million but incurred an operating loss of HKD 43 million, mainly due to initial setup costs and operating expenses[55]. Market Conditions - The Hong Kong stock market experienced significant volatility, with the Hang Seng Index dropping to 25,846 points by the end of 2018, a decline of approximately 23% from its peak[13]. - The company plans to seek suitable opportunities to sell some properties in 2019 due to uncertainties in the Hong Kong property market[8]. - Major risks identified include trade friction between China and the U.S., geopolitical risks, and significant changes in government policies affecting operations[133]. Corporate Governance - The company has a strong commitment to corporate governance, with independent non-executive directors actively participating in audit and remuneration committees[34]. - The board of directors held 8 meetings during the fiscal year, ensuring effective governance and oversight[91]. - The company maintains a strong commitment to corporate governance, adhering to all relevant codes and regulations[84]. - The board consists of six members, including one female member and three independent non-executive directors, reflecting sufficient diversity in terms of education, experience, and skills[125]. - The company has complied with the listing rules regarding the appointment of independent non-executive directors, with at least one possessing appropriate professional qualifications or accounting knowledge[96]. Strategic Initiatives - The company plans to continue diversifying its business and exploring new opportunities for growth in the Ferrari agency and logistics sectors[21]. - The company is investing HKD 100 million in research and development for new technologies aimed at enhancing user experience[86]. - A strategic acquisition of a local competitor is anticipated to be finalized by Q3 2019, expected to increase market share by 10%[86]. - The company expects strong performance in the Ferrari business for 2019, with four new car models anticipated to be launched[18]. Financial Position - The bank borrowings increased to HKD 1,492 million in 2018, representing 32.7% of total liabilities, up from 28.6% in 2017[58]. - The total borrowings amounted to HKD 1,598 million, which is a rise from HKD 1,352 million in 2017, reflecting a slight increase in the debt-to-equity ratio from 28.9% to 35.0%[59]. - The current ratio as of December 31, 2018, was 284.1%, down from 355.4% in 2017, indicating a decrease in liquidity[61]. - The cash balance at year-end was HKD 127 million, a decrease of HKD 4 million from HKD 131 million in the previous year, primarily due to dividend payments[61]. Employee and Community Engagement - The total number of employees decreased to 467 in 2018 from 633 in 2017, reflecting a reduction in workforce[67]. - The company made charitable donations of approximately HKD 1,000,000 in 2018 and encourages employee participation in community service[80]. Asset Management - The group held properties, plant, and equipment with a book value of HKD 729,000,000, which accounted for approximately 19% of total assets[189]. - The group reported investment properties with a book value of HKD 1,532,000,000, representing about 29% of total assets as of December 31, 2018[191]. - The group holds antique cars and watches, accounting for approximately 4% and 3% of total assets, respectively[195]. Audit and Compliance - The financial statements for the year ended December 31, 2018, were audited by Ernst & Young, who will be proposed for reappointment at the upcoming annual general meeting[180]. - The audit committee assists the board in overseeing the financial reporting process of the group[197]. - The audit process involved understanding internal controls related to the audit to design appropriate audit procedures[200].