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，並明確表示概不就因本公佈全部或任何部 分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 SILVER GRANT INTERNATIONAL HOLDINGS GROUP LIMITED 銀建國際控股集團有限公司 （於香港註冊成立之有限公司） （股份代號：171） 截至 年 月 日止年度 2022 12 31 年度業績公佈 銀建國際控股集團有限公司（「本公司」或「銀建」，連同其附屬公司，統稱為「本集 團」）董事（「董事」）會（「董事會」）欣然宣佈本集團截至2022年12月31日止年度（「2022 年度」）之綜合業績如下： ...

Financial Performance - Loss attributable to owners of the company for the six months ended June 30, 2022, was HK$146 million, a decrease of 41.8% compared to HK$251 million in the same period of 2021[6]. - Basic loss per share improved to HK(6.35) cents, a 41.7% reduction from HK(10.90) cents in the previous year[6]. - The loss attributable to the owners of the Company decreased to approximately HK$146,349,000 for 2022 from approximately HK$251,333,000 for 2021[34]. - Loss before taxation improved to HK$132,828,000 from HK$343,425,000, indicating a reduction of 61.2%[134]. - The company reported a net loss for the period of HK$125,858,000, down from HK$350,953,000 in the same period of 2021[136]. - The Group's loss before taxation for the six months ended June 30, 2022, was HK$146,349,000, compared to a loss of HK$251,333,000 for the same period in 2021[195]. Assets and Liabilities - Total assets increased by 7.2% to HK$11,653 million as of June 30, 2022, compared to HK$10,867 million in 2021[6]. - Net assets decreased by 23.8% to HK$5,382 million from HK$7,060 million year-on-year[6]. - The company's equity attributable to owners decreased by 22.2% to HK$4,918 million from HK$6,325 million[6]. - The Group's total net assets as of June 30, 2022, were approximately HK$5,381,975,000, with total net current assets of approximately HK$2,158,237,000[92]. - Total current liabilities were HK$2,402,279, reflecting an increase of 1.8% from HK$2,359,152 as of December 31, 2021[142]. - The Group's cash and bank balances were approximately HK$113,469,000 as of June 30, 2022, down from HK$141,205,000 as of December 31, 2021[48]. Revenue and Income - For the six months ended June 30, 2022, total revenue was HK$59,070,000, an increase from HK$43,574,000 in the same period of 2021, representing a growth of 35.5%[165]. - Rental income from the property leasing business increased by approximately 35.25% to approximately HK$58,934,000 for 2022, up from approximately HK$43,574,000 for 2021[29]. - The increase in other income, gains, and losses rose from approximately HK$155,684,000 in 2021 to approximately HK$277,560,000 in 2022, primarily due to increased interest income from loan receivables[38]. - Interest income (excluding bank deposits) rose from approximately HK$153,431,000 in 2021 to approximately HK$244,247,000 in 2022, mainly due to increased interest from loan receivables[38]. Borrowings and Financing - As of June 30, 2022, the Group's total borrowings amounted to approximately HK$5,455,668,000, an increase from HK$5,036,159,000 as of December 31, 2021[44]. - The composition of borrowings includes short-term borrowings of HK$541,024,000, long-term borrowings of HK$3,575,518,000, and convertible bonds of HK$1,339,126,000[45]. - The Group's interest-bearing bank and other borrowings, along with convertible bonds, totaled approximately HK$1,880,150,000 due within the next 12 months, while cash and bank balances were approximately HK$90,077,000[53]. - The Group had outstanding convertible bonds due in July 2022 with an aggregate principal amount of HK$1,150,000,000, bearing interest at 7% per annum[48]. Cost Management - Administrative expenses decreased from approximately HK$93,717,000 in 2021 to approximately HK$46,479,000 in 2022, mainly due to corporate restructuring and absence of certain costs[40]. - The Group plans to accelerate the realization of mature investments and reduce inefficient investments in response to potential economic recession and market volatility[28]. - The management team of Zhong Hai You Qi has focused on effective cost reduction and efficiency enhancement during Period 2022[15]. Shareholder Information - The company maintained 2,304,849,611 ordinary shares issued and fully paid as of June 30, 2022, with a market closing price of HK$0.4 per share[8]. - Mr. Chu held a long position of 681,240,022 shares, representing approximately 29.56% of the issued shares as of June 30, 2022[117]. - The total number of issued shares as of June 30, 2022, was 2,304,849,611 shares, used for calculating the percentage of shareholdings[117]. Corporate Governance - The Company complied with all mandatory provisions of the Corporate Governance Code throughout Period 2022, except for specified deviations[113]. - All Directors confirmed compliance with the required standards for securities transactions during Period 2022[115]. Economic Environment - During Period 2022, the Federal Reserve raised the federal funds rate by a total of 225 basis points, significantly impacting global economic growth and financial markets[14]. - The ongoing cash flow crisis in China's real estate sector has significantly impacted fixed asset investments and local fiscal revenue[14].

Financial Performance - Loss for the year attributable to owners of the company was HK$1,452.6 million, a 357.3% increase compared to HK$317.6 million in 2020[4] - Basic loss per share was HK$0.6302, a 357.3% increase from HK$0.1378 in 2020[4] - The Group recorded a loss attributable to owners of approximately HK$1,452,609,000 for the year 2021, compared to a loss of approximately HK$317,641,000 for 2020, resulting in a basic loss per share of 63.02 HK cents for 2021, up from 13.78 HK cents in 2020[9] - The loss attributable to the owners of the Company increased by approximately 357.3% from approximately HK$317,641,000 in 2020 to approximately HK$1,452,609,000 in 2021[34] - The basic loss per share attributable to ordinary equity holders increased from 13.78 HK cents in 2020 to 63.02 HK cents in 2021[34] Assets and Liabilities - Total assets decreased by 22.6% to HK$11,572.0 million from HK$11,238.9 million in 2020[4] - Equity attributable to owners of the company decreased by 20.3% to HK$5,231.3 million from HK$6,559.8 million in 2020[4] - Pledged bank deposits, cash, and bank balances decreased by 82.2% to HK$141.2 million from HK$793.5 million in 2020[4] - The Group's total loan receivables increased from approximately HK$1,439,301,000 as at December 31, 2020, to approximately HK$2,239,727,000 as at December 31, 2021, attributed to advances of short-term loans[43] - Deposits, prepayments, and other receivables rose from approximately HK$420,467,000 as at December 31, 2020, to approximately HK$714,075,000 as at December 31, 2021, mainly due to increased deposits for acquiring non-performing assets[44] Borrowings and Liquidity - Total borrowings of the Group as of December 31, 2021, amounted to approximately HK$5,036,159,000, an increase of about 58.5% from HK$3,172,884,000 in 2020[61] - Short-term borrowings increased to HK$541,037,000 in 2021 from HK$217,848,000 in 2020, reflecting a rise of approximately 148.5%[61] - Long-term borrowings rose to HK$3,193,628,000 in 2021, up from HK$1,571,112,000 in 2020, marking an increase of about 103.9%[61] - The Group's net borrowings as of December 31, 2021, were approximately HK$4,894,954,000, compared to HK$2,379,364,000 in 2020, indicating an increase of about 105.0%[61] - The Group's liquidity position is closely monitored to ensure adequate liquidity to meet funding requirements at all times[50] Revenue and Income - The Group's rental income for Year 2021 amounted to approximately HK$87,376,000, representing a slight decrease of approximately 1.97% from HK$89,128,000 in Year 2020[37] - Rental income from the Group's property leasing business decreased from approximately HK$89,128,000 in 2020 to approximately HK$87,376,000 in 2021[29] - Other income, gains, and losses increased from approximately HK$285,084,000 in Year 2020 to approximately HK$348,441,000 in Year 2021, mainly due to increased interest income and gains on disposal of financial assets[37] Investment Activities - The Group acquired non-performing asset portfolios with a total principal and accrued interest of approximately RMB1,220 million as of December 31, 2021[16] - The Group has invested RMB505,000,000 (approximately HK$617,359,000) into the NT Trust Scheme, which focuses on property development investments in Zhuozhou and Shenyang, PRC[23] - The Group is setting up an investment fund to invest in urban redevelopment projects in the Greater Bay Area, aiming to create investment returns for shareholders[21] - The Group plans to adjust its investment portfolio by increasing short-term investments to improve liquidity in response to potential economic downturns[26] Corporate Governance - The Company has a strong governance structure with independent non-executive directors contributing to audit and nomination committees[123] - The Group's corporate governance practices comply with the Corporate Governance Code, except for specific provisions regarding the separation of roles of chairman and CEO[146] - The Board consists of four executive Directors and three independent non-executive Directors, ensuring that independent Directors represent no less than one-third of the Board[161] - The Board has established three standing committees: the audit committee, the remuneration committee, and the nomination committee to assist in governance[168] Management and Staff - The Group's overall staff costs amounted to approximately HK$76,641,000 for the year 2021, an increase from HK$66,788,000 in 2020[85] - The Group's employee count decreased to 84 as of December 31, 2021, down from 104 in the previous year[85] - The management team includes professionals with extensive backgrounds in finance, law, and property management, enhancing strategic decision-making capabilities[130][133] Environmental, Social, and Governance (ESG) - The Company emphasizes environmental, social, and governance (ESG) practices in its operations[136] - Energy-saving measures have been implemented in the Group's offices to reduce electricity consumption and greenhouse gas emissions[144] - The Group has adopted policies to promote recycling and the use of eco-friendly stationery, contributing to resource efficiency and waste reduction[144] - The Company engaged external professionals to review its environmental, social, and governance (ESG) policies for 2021 and will publish the ESG report by May 31, 2022[144]

Financial Performance - Loss attributable to owners of the company for the six months ended June 30, 2021, was HK$251 million, representing a 66.23% increase compared to a loss of HK$151 million in the same period of 2020[4] - Basic loss per share for the period was HK(10.90) cents, a 66.16% increase from HK(6.56) cents in 2020[4] - The loss attributable to the owners of the Company increased to approximately HK$251,333,000 for Period 2021 from approximately HK$151,150,000 for Period 2020, representing an increase of about 66.4%[38] - The basic loss per share attributable to ordinary equity holders of the Company was 10.90 HK cents for Period 2021, compared to a basic loss per share of 6.56 HK cents for Period 2020, indicating an increase of approximately 66.4%[40] - Loss before taxation for the period was HK$343,425,000, significantly higher than the loss of HK$177,953,000 recorded in the same period of 2020[185] - The total comprehensive loss for the period amounted to HK$323,933,000, compared to HK$284,813,000 in the prior year, indicating an increase in losses of 13.8%[189] Assets and Liabilities - Net assets decreased by 3.53% to HK$7,060 million from HK$7,318 million year-over-year[4] - Total assets increased by 6.38% to HK$10,867 million compared to HK$10,215 million in the previous year[4] - The Group's total borrowings amounted to approximately HK$3,113,048,000, a decrease from HK$3,172,884,000 as of December 31, 2020[47][48] - The Group's net current assets were approximately HK$2,818,233,000 as of June 30, 2021, down from HK$3,221,138,000 at the end of 2020[52] - The Group's cash and bank balances were approximately HK$143,549,000 as of June 30, 2021, down from HK$793,520,000 at the end of 2020[52] - The carrying value of the NT Trust Scheme increased to approximately HK$ 557,689,000 as of June 30, 2021, compared to HK$ 556,027,000 as of December 31, 2020[24] Financial Ratios - The current ratio decreased to 4.3x from 5.3x, reflecting an 18.87% decline[4] - Gearing ratio increased to 49.22% from 34.6%, marking a 42.25% rise[4] - Adjusted gearing ratio rose to 46.95% from 31.2%, indicating a 50.48% increase[4] - Return on total assets decreased to (2.31%) from (3.0%), a decline of 23%[4] - The gearing ratio was 49.22% as of June 30, 2021, compared to 48.37% on December 31, 2020, indicating a slight increase in leverage[54] - The current ratio decreased to 4.33x as of June 30, 2021, down from 5.21x as of December 31, 2020, reflecting a reduction in liquidity[54] Revenue and Income - Rental income from the property leasing business was approximately HK$ 43,574,000 for 2021, a decrease of approximately HK$ 4,229,000 from HK$ 47,803,000 in 2020[29] - The decline in rental income was attributed to a decrease in occupancy rates due to the COVID-19 pandemic and certain tenants not renewing their leases[29] - Interest income (excluding bank deposits) increased from approximately HK$151,107,000 for Period 2020 to approximately HK$153,431,000 for Period 2021, showing a growth of about 1.5%[40] - Dividend income from listed and unlisted securities was HK$37,692,000, down from HK$41,674,000, reflecting a decline of 9.5% year-over-year[185] - Other income, gains, and losses increased to HK$155,684,000, compared to HK$151,767,000 in the previous year, marking a growth of 2.5%[185] Investments and Strategic Initiatives - The Group expanded its non-performing assets and loans portfolio, acquiring a non-performing loans portfolio valued at approximately RMB560 million[21] - The Group successfully developed an urban redevelopment fund with an initial phase of RMB200 million, targeting projects in the Guangdong-Hong Kong-Macao Greater Bay Area[21] - The Group is actively engaging in various types of non-performing assets investment projects, including debt restructuring and bankruptcy reorganization[21] - The establishment of a sound bankruptcy system is expected to promote the growth of the enterprise bankruptcy reorganization market in China[18] - The Group plans to support technological innovations, green development, and urban redevelopment in line with national policies[36] Corporate Governance and Management - The Company did not declare any interim dividend for the six months ended June 30, 2021, consistent with the previous year[126][128] - The Group's remuneration policies remained unchanged during the reporting period, with competitive packages offered to employees[125] - The Company has adopted codes of conduct regarding securities transactions by Directors that meet or exceed the standards set out in the Model Code[138] - The Company is committed to maintaining high standards of corporate governance in the interests of its shareholders[136] Debt and Financing Activities - The company issued senior notes with a total principal amount of US$19,800,000 (approximately HK$154,440,000) to investors, with net proceeds of about US$19,300,000 (approximately HK$150,540,000) allocated for general working capital[71] - The company entered into a subscription agreement for convertible bonds with a principal amount of up to HK$200,000,000, with a conversion price of HK$2.33 per ordinary share[74] - The issuance of senior notes and convertible bonds represents an opportunity for the company to secure funding for its operations[71] - The company’s financial strategies include leveraging both senior notes and convertible bonds to enhance liquidity and support growth initiatives[71] - The Group plans to dispose of short and medium-term investments to enhance working capital[52]

Financial Performance - The company reported a loss attributable to owners of HK$317.6 million for the year 2020, a significant decrease of 12,804.0% compared to a profit of HK$2.5 million in 2019[4]. - The basic loss per share was HK$0.1378, a decline of 12,627.3% from earnings of HK$0.0011 per share in 2019[4]. - The profit attributable to the owners of the Company turned from approximately HK$2,476,000 in 2019 to a loss of approximately HK$317,641,000 in 2020, primarily due to decreased rental income and increased operating expenses[35]. - Rental income from the property leasing business decreased from approximately HK$107,568,000 in 2019 to approximately HK$89,128,000 in 2020, primarily due to a decline in occupancy rate from 90% to 80% at East Gate Plaza[25]. - The Group recorded a loss of approximately HK$667,000 in the change in fair value of financial assets at fair value through profit or loss for Year 2020, with HK$19,146,000 attributable to the NT Trust Scheme[20]. Assets and Liabilities - Total assets increased by 9.4% to HK$11,238.9 million in 2020 from HK$10,273.3 million in 2019[4]. - Cash and bank balances surged by 273.2% to HK$793.5 million in 2020, up from HK$212.6 million in 2019[4]. - The Group's net current assets were approximately HK$3,221,138,000 as of December 31, 2020, up from HK$2,284,982,000 in 2019[90]. - The total cash and bank balances increased significantly from HK$212,568,000 as of December 31, 2019, to HK$793,520,000 as of December 31, 2020[91]. - The total deposits, prepayments, and other receivables increased from approximately HK$192,987,000 as of December 31, 2019, to approximately HK$420,467,000 as of December 31, 2020[60]. Financial Ratios - The current ratio improved to 5.21x in 2020 from 4.50x in 2019, reflecting a 15.8% increase[4]. - The gearing ratio increased to 48.37% in 2020 from 31.79% in 2019, indicating a rise of 52.2%[4]. - Interest coverage ratio fell to 0.48x in 2020 from 1.10x in 2019, reflecting a 143.6% decrease[4]. - The return on capital employed was reported at -4.84%, a significant decline from 0.04% in the previous year[4]. Impact of COVID-19 - The pandemic led to large-scale production cessation and delayed work resumption, significantly impacting the Group's daily operations[10]. - The Group's principal business activities are primarily located in China, which faced severe challenges due to the pandemic[10]. - The Group implemented new prevention and control guidelines for employees to combat the spread of COVID-19, which included regular health checks and travel history assessments[10]. - The Group adjusted its operating goals and plans in response to the pandemic and the downturn of the global economy to mitigate external unfavorable factors[12]. Strategic Initiatives - The Group plans to expedite the disposal of its non-performing assets while exploring opportunities for individual debt restructuring projects in the current market environment[29]. - The Group intends to launch an asset management fund, contingent on the economic environment and the development of COVID-19[18]. - The Group aims to invest in high-quality assets and participate in growth industries to provide long-term returns to shareholders[33]. - The Group is committed to long-term sustainability and prudent management of its business operations[163]. Corporate Governance - The Company complied with all mandatory provisions of the Corporate Governance Code throughout Year 2020, except for one provision regarding the Chairman's attendance at the annual general meeting[186]. - The Board comprises three executive Directors, two non-executive Directors, and three independent non-executive Directors, ensuring independent oversight[192]. - The independent non-executive Directors represent no less than one-third of the Board members, ensuring a balanced governance structure[193]. - The Board has established three standing committees: audit committee, remuneration committee, and nomination committee to assist in governance[200]. Employee Relations - The Group is committed to providing a healthy and safe workplace for all its employees and complies with all applicable health and safety laws and regulations[176]. - The Group values career development and provides ongoing training to its staff according to the needs of the organization[176]. - The overall staff costs for the group amounted to approximately HK$66,788,000 for the year 2020, an increase from HK$60,992,000 in 2019[111]. - The Group emphasizes the importance of employee quality to maintain a competitive market position and seeks to attract and retain talented individuals[176].

Financial Performance - The company reported a loss attributable to owners of HK$151 million for the six months ended June 30, 2020, compared to a profit of HK$46 million in the same period of 2019, representing a change of (428.3%) [23] - Basic loss per share was (6.56) HK cents, a decrease of 426.4% compared to earnings of 2.01 HK cents per share in 2019 [24] - The profit attributable to the owners of the Company turned from approximately HK$46,319,000 in Period 2019 to a loss of approximately HK$151,150,000 in Period 2020, primarily due to a decrease in rental income and occupancy rates caused by the COVID-19 pandemic [92] - The profit from discontinued operations was approximately HK$78,280,000 in Period 2019, which was not recorded in Period 2020 following the merger completion [104] - The loss in the fair value of financial assets at fair value through profit or loss increased from approximately HK$32,073,000 in Period 2019 to approximately HK$73,434,000 in Period 2020 [98] Asset and Liability Management - Total assets decreased by 10.7% to HK$10,215 million from HK$11,444 million in 2019 [23] - Net assets decreased by 4.1% to HK$7,318 million from HK$7,632 million in 2019 [23] - Bank balances and cash decreased by 53.6% to HK$224 million from HK$483 million in 2019 [23] - The Group's total borrowings and Convertible Bonds amounted to approximately HK$2,227,968,000, an increase from HK$2,105,283,000 as of December 31, 2019 [146] - The Group's net borrowings were approximately HK$2,004,379,000 as of June 30, 2020, compared to HK$1,892,715,000 as of December 31, 2019 [154] Revenue and Income Sources - The Group's property leasing revenue was impacted by a decline in occupancy rates at East Gate Plaza due to COVID-19 preventive measures, leading to decreased rental income [65] - Rental income from the Group's leasing properties decreased from approximately HK$55,604,000 in 2019 to approximately HK$47,803,000 in 2020, with an average occupancy rate of approximately 87% [83] - Other income, gains, and losses increased to approximately HK$151,767,000 in Period 2020 from approximately HK$56,857,000 in Period 2019, mainly due to increased interest income from advances [98] Investment Strategy and Performance - The Group's investment business segment reported a profit of approximately HK$59,298,000 for the first half of 2020, compared to a loss of approximately HK$8,441,000 for the same period in 2019 [70] - The Group's strategy includes focusing on investments in non-performing assets, asset management, financial services, and other financial asset investments [70] - The Group intends to speed up the disposal of its investments in non-performing debt assets in the second half of 2020 while exploring opportunities in restructuring projects [91] - The Group's investment strategy will remain prudent, closely monitoring the performance of its investment portfolio [79] Operational Adjustments and Future Plans - The Group adjusted its property leasing strategy by positioning East Gate Plaza as a "Community Commercial Centre" to increase occupancy rates [65] - The Group plans to launch a financial services and asset management fund in Q4 2020 or early 2021, depending on the economic environment and COVID-19 developments [71] - The Group is actively expanding its investment reserve projects in the Guangdong-Hong Kong-Macao Greater Bay Area and the Beijing-Tianjin-Hebei Region despite market capital constraints caused by the pandemic [64] Financial Ratios and Metrics - The projected P/E ratio is (7.4x), a significant decrease of 119.4% from 38.1x in 2019 [24] - The return on capital employed was (4.7%), down from 1.4% in 2019, indicating a decline of 435.7% [24] - The current ratio improved to 5.3x from 2.3x, an increase of 130.4% [24] - The gearing ratio increased to 34.6% from 29.3%, reflecting an increase of 18.1% [24] - Interest coverage ratio decreased to (0.5x) from 2.7x, a decline of 118.5% [24] Market and Economic Outlook - The domestic economy in China is expected to continue its recovery in the second half of the year, but the rate of recovery is likely to be slow [85] - The Group's liquidity position is closely reviewed to ensure adequate liquidity to meet funding requirements at all times [1] Shareholder and Corporate Governance - The company entered into a placing agreement for convertible bonds with an aggregate principal amount of up to HK$200,000,000, with a conversion price of HK$2.33 per ordinary share [170] - The connected subscribers include individuals and entities that are defined as connected persons under the Listing Rules [192] - The company must comply with all requirements under the Listing Rules and the Takeovers Code issued by the Securities and Futures Commission [198]

Financial Performance - Profit attributable to owners of the company for 2019 was HK$55.8 million, a significant increase of 213.0% compared to a loss of HK$49.4 million in 2018[5] - Basic earnings per share improved to HK$0.0242, reflecting a 213.1% increase from a loss of HK$0.0214 per share in the previous year[6] - The Group recorded a profit of approximately HK$55,813,000 for the year ended 31 December 2019, compared to a loss of approximately HK$49,375,000 in 2018, marking a significant turnaround[14] - Basic earnings per share for 2019 was 2.42 HK cents, an improvement from a loss of 2.14 HK cents per share in 2018[16] - Other income, gains, and losses increased to approximately HK$181,733,000 for Year 2019, up from approximately HK$55,048,000 in Year 2018, mainly due to increased interest income[48] - A gain from the Merger amounted to approximately HK$491,120,000 recorded for Year 2019, which was absent in Year 2018[50] - The performance of the trading of petrochemical products improved from a net loss of approximately HK$301,839,000 for Year 2018 to a net profit of approximately HK$72,528,000 for Year 2019[48] Asset and Liability Management - Total assets decreased by 8.6% to HK$10,368 million from HK$11,345 million in 2018[5] - Bank deposits, bank balances, and cash fell by 75.2% to HK$213 million, down from HK$860 million in 2018[5] - The current ratio improved significantly to 4.4x, up 238.5% from 1.3x in 2018, indicating enhanced liquidity[6] - Gearing ratio decreased to 31.5%, down from 43.3% in 2018, indicating reduced financial leverage[6] - The Group's net borrowings as of December 31, 2019, were approximately HK$1,892,715,000, down from HK$2,064,058,000 in 2018, with a gearing ratio of 32% compared to 43% in 2018[89] - The balance of bank balances and cash decreased to approximately HK$212,568,000 as of December 31, 2019, mainly due to the repayment of certain bank borrowings and increased loan receivables[77] Investment and Strategic Initiatives - Following the merger completed on 15 July 2019, the joint venture ZHYQ JV has a crude oil processing capacity of 6,000,000 tons per year and generated a net profit of approximately HK$108,822,000 from the merger completion to 31 December 2019[20] - The Group's investment business segment incurred a loss of approximately HK$54,232,000 in 2019, a decline from a profit of approximately HK$193,537,000 in 2018 due to strategic slowdowns and disposals[24] - The Group plans to expand its investment business into the financial services sector, with a focus on non-performing assets[24] - The Group aims to identify investment opportunities in non-performing loans that provide high returns, while participating in the restructuring of low-performing enterprises[37] - The Group will closely monitor the non-performing asset market to identify opportunities that meet its target returns[24] Operational Efficiency and Changes - The merger has improved operational efficiency and competitiveness of ZHYQ JV, positioning it as a major production base for petrochemical products in the Yangtze River Delta region[20] - The Group discontinued its trading of petrochemical products and subcontracting services following the merger[15] - The Group's capital expenditures in 2020 are expected to be settled by cash through internal resources, with no plans for material investments or capital assets[91] Employee and Governance - The Group employed a total of 96 employees as of December 31, 2019, an increase from 53 employees in 2018[103] - The total staff costs for the group in 2019 were approximately HK$60,992,000, down from HK$80,060,000 in 2018[103] - The company has not faced significant employee issues or operational disruptions due to labor discipline, maintaining good relationships with staff[108] - The Group is committed to providing a healthy and safe workplace, ensuring compliance with all applicable health and safety laws and regulations[166] - The Group values career development and provides ongoing training to employees according to its needs[165] Corporate Governance - The Company complied with all mandatory provisions of the Corporate Governance Code throughout Year 2019, except for code provision E.1.2[177] - The Board consists of three executive Directors, two non-executive Directors, and three independent non-executive Directors, ensuring independent non-executive Directors represent no less than one-third of the board members[185] - The Board will continue to monitor and review corporate governance practices to ensure compliance[177] - The Company has established three standing board committees: the audit committee, the remuneration committee, and the nomination committee[188] Environmental and Social Responsibility - The Group's commitment to environmental, social, and governance (ESG) principles is reflected in its operational practices[153] - The Group has implemented energy-saving measures in its offices and commercial premises to reduce electricity consumption and greenhouse gas emissions[169] - Policies promoting recycling and the use of eco-friendly stationery have been adopted, resulting in more efficient resource use and waste reduction[170]

Financial Performance - Profit for the period attributable to owners of the Company decreased by 68% to HK$46 million from HK$143 million in the previous year[6] - Basic earnings per share fell to 2.01 HK cents, down 68% from 6.21 HK cents[7] - Profit attributable to the owners of the Company decreased by approximately HK$96.9 million to approximately HK$46.3 million, representing a decrease of 68% compared to HK$143.2 million in 2018[50] - Rental income for the Period amounted to approximately HK$55.6 million, a decrease of approximately 3.8% from HK$57.8 million in 2018, mainly due to decreased occupancy rates[52] - The profit before taxation was a loss of HK$6,027,000, significantly lower than the profit of HK$298,593,000 in the prior period[185] - The loss for the period from continuing operations was HK$15,919,000, compared to a profit of HK$273,181,000 in the previous year[185] - Total comprehensive income for the period was HK$29,055,000, down 43.5% from HK$51,243,000 in 2018[192] Assets and Liabilities - Total assets decreased by 4% to HK$11,444 million compared to HK$11,933 million in 2018[6] - Current liabilities increased to HK$3,811,294,000 from HK$3,741,807,000 at the end of 2018[199] - Net current assets improved significantly to HK$3,722,403,000 compared to HK$691,183,000 in the previous period[199] - As of June 30, 2019, the Group had bank balances and cash of approximately HK$483,258,000, a decrease from HK$497,244,000 as of December 31, 2018[73] Equity and Shareholder Information - Equity attributable to owners of the Company decreased by 6% to HK$6,768 million from HK$7,186 million[6] - The shareholders' fund was approximately HK$6,768.2 million, a decrease of HK$19.4 million or 0.29% compared to December 31, 2018, primarily due to a depreciation of RMB by over 5%[92] - As of 30 June 2019, the total number of issued ordinary shares of the Company was 2,304,849,611 shares[138] - Mr. Chu holds a direct interest of 681,240,022 shares, representing approximately 29.56% of the issued shares of the Company[134] Mergers and Acquisitions - The merger between Zhong Hai You Qi and its subsidiaries was completed on July 15, 2019, with the company owning 51% of the merged entity[20] - The merger is expected to leverage the advantages of both private and state-run enterprises to enhance operational efficiency and competitiveness[20] - The merged entity will serve as a major production base for comprehensive petrochemical products in the Yangtze River Delta region[36] Investments and Financial Strategy - The group has made significant investments in non-performing assets, acquiring a portfolio valued at approximately RMB166.1 million from China Great Wall Asset Management Co. Ltd.[37] - The company plans to expand its financial services sector, focusing on non-performing asset management as a key business area[37] - The Group plans to restructure its financial asset investments business in China in the second half of 2019 to capitalize on regulatory changes[85] - The Group issued convertible bonds totaling HK$1,150 million in July 2019 to raise capital for expanding its share in the non-performing assets market[85] Operational Efficiency and Cost Management - The company aims to enhance its production of high value-added products to improve operating profit margins and ensure stable revenue contributions[20] - The management believes that optimizing production processes and strengthening cost management will enhance profitability in the petroleum refining and chemical business[90] - The company is focusing on optimizing production processes and enhancing cost management to improve operational efficiency in its oil refining business[91] Employee and Corporate Governance - The Group employed 615 employees as of June 30, 2019, an increase from 588 employees on December 31, 2018, with total staff costs from continuing operations approximately HK$24.3 million, compared to HK$21.8 million for the same period in 2018[106] - The Company has complied with all mandatory provisions set out in the Corporate Governance Code throughout the period, except for the absence of the Chairman at the annual general meeting[123] - Continuous training has been provided to employees based on the Company's needs during the period[111] Market Conditions and Future Outlook - The Group expects the global trade situation to deteriorate and crude oil demand to trend downward due to ongoing trade friction between China and the United States[90] - The non-performing loan ratio of commercial banks in China reached 1.81% by the end of the second quarter in 2019, the highest since 2009[85]

Financial Performance - The loss attributable to owners of the Company for 2018 was approximately HK$49.4 million, a significant decline from a profit of HK$260.2 million in 2017, representing a 119% change [5]. - Basic loss per share for 2018 was 2.14 HK cents, compared to earnings of 11.29 HK cents in 2017, marking a 119% decrease [14]. - The Group recorded a loss of approximately HK$49,375,000 for the year 2018, compared to a profit of approximately HK$260,201,000 in 2017, resulting in a basic loss per share of HK$2.14 [17]. - The significant loss was primarily due to the five-month production suspension of its subsidiary, TZ United East, which led to an increase in losses by approximately HK$373,638,000 [17]. - The profit contribution from Zhong Hai You Qi decreased by approximately HK$185,102,000 due to falling international crude oil prices and inventory impairment losses [17]. Assets and Liabilities - Total assets decreased by 5% to HK$11,345 million in 2018 from HK$11,946 million in 2017 [5]. - Equity attributable to owners of the Company fell by 5% to HK$6,749 million in 2018 from HK$7,103 million in 2017 [5]. - Bank deposits, bank balances, and cash decreased by 42% to HK$860 million in 2018 from HK$1,485 million in 2017 [5]. - The Group's total borrowings amounted to approximately HK$2,923,790,000, with short-term borrowings at HK$1,723.5 million (59%) and long-term borrowings at HK$1,200.3 million (41%) [90]. - The total liabilities of the Group were HK$2,923,790,000, down from HK$3,231,120,000 in the previous year [136]. Operational Performance - The significant increase in operating losses of approximately HK$373.6 million was primarily due to the suspension of production at Taizhou United East Petrochemical Company for five months [15]. - The annual production capacity of TZ United East increased significantly from 110,000 tons to 1,600,000 tons after the completion of the Binjiang Project [33]. - TZ United East processed 582,100 tons of raw materials in 2018, a decrease of 50% from 1,160,900 tons in 2017 [38]. - Revenue from raw materials sold dropped by 82% to HK$6.4 million in 2018, down from HK$34.9 million in 2017 [38]. - TZ United East's subcontracting income fell by 46% to HK$385.9 million in 2018, compared to HK$715.2 million in 2017 [38]. Investment and Development - The Group is actively searching for investment and merger and acquisition opportunities to generate significant profits and cash flows [76]. - The Group invested RMB116,000,000 (approximately HK$129,500,000) for an 8.29% equity interest in Beijing TeraSolar, with RMB58,000,000 (approximately HK$64,700,000) paid as partial payment in 2015 [61][65]. - JC International received an investment of RMB100 million (approximately HK$124.6 million) for a 10% equity interest [56]. - The Group has unutilized banking facilities of approximately HK$317,000,000, indicating potential for future financing [91]. Employee and Management - The Group employed 588 employees at the end of the reporting period, an increase from 559 in the previous year [142]. - Total staff costs for the year increased by approximately 9% to around HK$173,982,000, primarily due to a special bonus of HK$25,000,000 paid to three key staff and redundancy costs of approximately HK$6,300,000 [142]. - The Group emphasizes attracting and retaining talented individuals, providing ongoing training, and offering competitive compensation packages [197]. - The company is committed to attracting and retaining talent in a work environment focused on fairness, mutual respect, and integrity [200]. Market Conditions and Future Outlook - The Board anticipates continued uncertainties in 2019 due to the trade war between China and the United States and Brexit, which may further impact global macroeconomic conditions [20]. - The Group expects to benefit from the future development trend of the Chinese economy, as its business activities are primarily conducted in the China market [21]. Environmental and Safety Practices - The Group is committed to providing a healthy and safe workplace, complying with all applicable health and safety laws and regulations [198]. - Energy-saving measures are enforced in the Group's offices to reduce electricity consumption and greenhouse gas emissions [199]. - The Group has adopted policies to promote recycling and the use of eco-friendly stationery, resulting in more efficient resource use and waste reduction [199].